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To provide additional pension security for spouses and former spouses, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Women's Pension Equity Act of 1996'.

SEC. 2. MODEL SPOUSAL CONSENT FORM AND QUALIFIED DOMESTIC RELATIONS ORDER.

(a) MODEL SPOUSAL CONSENT FORM-

(1) AMENDMENT TO INTERNAL REVENUE CODE- Section 417(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(7) CONSENT FORM- The Secretary shall develop a form not later than January 1, 1997, for the spousal consent required under paragraph (2) which--

(A) is written in a manner calculated to be understood by the average person, and

(B) discloses in plain form whether--

(i) the waiver is irrevocable, and

(ii) the waiver may be revoked by a qualified domestic relations order.'.

(2) AMENDMENT TO ERISA- Section 205(c) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1055(c)) is amended by adding at the end the following new paragraph:

(8) The Secretary of the Treasury shall develop a form not later than January 1, 1997, for the spousal consent required under paragraph (2) which--

(A) is written in a manner calculated to be understood by the average person, and

(B) discloses in plain form whether--

(i) the waiver is irrevocable, and

(ii) the waiver may be revoked by a qualified domestic relations order.'.

(b) MODEL QUALIFIED DOMESTIC RELATIONS ORDER-

(1) AMENDMENT TO ERISA- Section 206(d)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056(d)(3)) is amended by adding at the end the following new subparagraph:

(O) The Secretary shall develop a form not later than January 1, 1997, for a qualified domestic relations order--

(i) which meets all the requirements of subparagraph (B)(i), and

(ii) the provisions of which focus attention on the need to consider the treatment of any lump sum payment, qualified joint and survivor annuity, or qualified preretirement survivor annuity.'.

(2) AMENDMENT TO INTERNAL REVENUE CODE- Section 414(p) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(13) The Secretary of Labor shall develop a form not later than January 1, 1997, for a qualified domestic relations order which--

(A) which meets all the requirements of paragraph (1)(A), and

(B) the provisions of which focus attention on the need to consider the treatment of any lump sum payment, qualified joint and survivor annuity, or qualified preretirement survivor annuity.'.

(c) PUBLICITY- The Secretary of the Treasury and the Secretary of Labor shall include publicity for the model forms required by the amendments made by this section in the pension outreach efforts undertaken by each Secretary.

SEC. 3. EXTENSION OF TIER II RAILROAD RETIREMENT BENEFITS TO SURVIVING FORMER SPOUSES PURSUANT TO DIVORCE AGREEMENTS.

(a) IN GENERAL- Section 5 of the Railroad Retirement Act of 1974 (45 U.S.C. 231d) is amended by adding at the end the following new subsection:

(d) Notwithstanding any other provision of law, the payment of any portion of an annuity computed under section 3(b) to a surviving former spouse in accordance with a court decree of divorce, annulment, or legal separation or the terms of any court-approved property settlement incident to any such court decree shall not be terminated upon the death of the individual who performed the service with respect to which such annuity is so computed unless such termination is otherwise required by the terms of such court decree.'.

(b) EFFECTIVE DATE- The amendment made by this section shall take effect on the date of the enactment of this Act.

SEC. 4. SURVIVOR ANNUITIES FOR WIDOWS, WIDOWERS, AND FORMER SPOUSES OF FEDERAL EMPLOYEES WHO DIE BEFORE ATTAINING AGE FOR DEFERRED ANNUITY UNDER CIVIL SERVICE RETIREMENT SYSTEM.

(a) BENEFITS FOR WIDOW OR WIDOWER- Section 8341(f) of title 5, United States Code, is amended--

(1) in the matter preceding paragraph (1) by--

(A) by inserting `a former employee separated from the service with title to deferred annuity from the Fund dies before having established a valid claim for annuity and is survived by a spouse, or if' before `a Member'; and

(B) by inserting `of such former employee or Member' after `the surviving spouse';

(2) in paragraph (1)--

(A) by inserting `former employee or' before `Member commencing'; and

(B) by inserting `former employee or' before `Member dies'; and

(3) in the undesignated sentence following paragraph (2)--

(A) in the matter preceding subparagraph (A) by inserting `former employee or' before `Member'; and

(B) in subparagraph (B) by inserting `former employee or' before `Member'.

(b) BENEFITS FOR FORMER SPOUSE- Section 8341(h) of title 5, United States Code, is amended--

(1) in paragraph (1) by adding after the first sentence `Subject to paragraphs (2) through (5) of this subsection, a former spouse of a former employee who dies after having separated from the service with title to a deferred annuity under section 8338(a) but before having established a valid claim for annuity is entitled to a survivor annuity under this subsection, if and to the extent expressly provided for in an election under section 8339(j)(3) of this title, or in the terms of any decree of divorce or annulment or any court order or court-approved property settlement agreement incident to such decree.'; and

(2) in paragraph (2)--

(A) in subparagraph (A)(ii) by striking `or annuitant,' and inserting `annuitant, or former employee'; and

(B) in subparagraph (B)(iii) by inserting `former employee or' before `Member'.

(c) PROTECTION OF SURVIVOR BENEFIT RIGHTS- Section 8339(j)(3) of title 5, United States Code, is amended by inserting at the end the following:

The Office shall provide by regulation for the application of this subsection to the widow, widower, or surviving former spouse of a former employee who dies after having separated from the service with title to a deferred annuity under section 8338(a) but before having established a valid claim for annuity.'.

(d) EFFECTIVE DATE- The amendments made by this section shall take effect on the date of the enactment of this Act and shall apply only in the case of a former employee who dies on or after such date.

SEC. 5. COURT ORDERS RELATING TO FEDERAL RETIREMENT BENEFITS FOR FORMER SPOUSES OF FEDERAL EMPLOYEES.

(a) CIVIL SERVICE RETIREMENT SYSTEM-

(1) IN GENERAL- Section 8345(j) of title 5, United States Code, is amended--

(A) by redesignating paragraph (3) as paragraph (4); and

(B) by inserting after paragraph (2) the following new paragraph:

(3) Payment to a person under a court decree, court order, property settlement, or similar process referred to under paragraph (1) shall include payment to a former spouse of the employee, Member, or annuitant.'.

(2) LUMP-SUM BENEFITS- Section 8342 of title 5, United States Code, is amended--

(A) in subsection (c) by striking `Lump-sum benefits' and inserting `Subject to subsection (j), lump-sum benefits'; and

(B) in subsection (j)(1) by striking `the lump-sum credit under subsection (a) of this section' and inserting `any lump-sum credit or lump-sum benefit under this section'.

(b) FEDERAL EMPLOYEES RETIREMENT SYSTEM- Section 8467 of title 5, United States Code, is amended--

(1) by redesignating subsection (c) as subsection (d); and

(2) by inserting after subsection (b) the following new subsection:

(c) Payment to a person under a court decree, court order, property settlement, or similar process referred to under subsection (a) shall include payment to a former spouse of the employee, Member, or annuitant.'.

(c) EFFECTIVE DATE- The amendments made by this section shall take effect on the date of the enactment of this Act.

SEC. 6. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY WAIVER OF RETIRED PAY TO ENHANCE CIVIL SERVICE RETIREMENT ANNUITY.

(a) CIVIL SERVICE RETIREMENT AND DISABILITY SYSTEM- (1) Subsection (c) of section 8332 of title 5, United States Code, is amended by adding at the end the following:

(4) If an employee or Member waives retired pay that is subject to a court order for which there has been effective service on the Secretary concerned for purposes of section 1408 of title 10, the military service on which the retired pay is based may be credited as service for purposes of this subchapter only if, in accordance with regulations prescribed by the Director of the Office of Personnel Management, the employee or Member authorizes the Director to deduct and withhold from the annuity payable to the employee or Member under this subchapter, and to pay to the former spouse covered by the court order, the same amount that would have been deducted and withheld from the employee's or Member's retired pay and paid to that former spouse under such section 1408.'.

(2) Paragraph (1) of such subsection is amended by striking out `Except as provided in paragraph (2)' and inserting `Except as provided in paragraphs (2) and (4)'.

(b) FEDERAL EMPLOYEES' RETIREMENT SYSTEM- (1) Subsection (c) of section 8411 of title 5, United States Code, is amended by adding at the end the following:

(5) If an employee or Member waives retired pay that is subject to a court order for which there has been effective service on the Secretary concerned for purposes of section 1408 of title 10, the military service on which the retired pay is based may be credited as service for purposes of this chapter only if, in accordance with regulations prescribed by the Director of the Office of Personnel Management, the employee or Member authorizes the Director to deduct and withhold from the annuity payable to the employee or Member under this subchapter, and to pay to the former spouse covered by the court order, the same amount that would have been deducted and withheld from the employee's or Member's retired pay and paid to that former spouse under such section 1408.'.

(2) Paragraph (1) of such subsection is amended by striking out `Except as provided in paragraph (2) or (3)' and inserting `Except as provided in paragraphs (2), (3), and (5)'.

(c) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect on January 1, 1997.