10 1 SEC. 204. (a) Subsection (b) of section 8340 of title 5, 2 United States Code, is amended by inserting "1 percent 3 plus" immediately after the word "by". 4 (b) Subsection (c) (2) of such section is amended to 5 read as follows: 6 "(2) For the purpose of computing the annuity of a 7 child under section 8341 (c) of this title that commences on 8 or after the first day of the first month that begins on or after 9 the date of enactment of the Civil Service Retirement 10 Amendments of 1969, the items $900, $1,080, $2,700, and 11 $3,240 appearing in section 8341 (e) of this title shall be 12 increased by the total percent increases allowed and in force 13 under this section on or after such day and, in case of a deceased annuitant, the items 60 percent and 75 percent appearing in section 8341 (e) of this title shall be increased by the total percent allowed and in force to the annuitant under this section on or after such day." 14 15 16 17 SEC. 205. The provisions of subsections (b) (1), (d) (3), and (g) of section 8341 of title 5, United States Code, also shall apply in the case of any widow or widower— (1) of an employee who died, retired, or was otherwise finally separated before July 18, 1966; (2) who shall have remarried on or after such date; and (3) who, immediately before such remarriage, was 1 2 11 receiving annuity from the Civil Service Retirement and Disability Fund; 3 except that no annuity shall be paid by reason of this 4 section for any period prior to the enactment of this sec5 tion. No annuity shall be terminated solely by reason of 6 the enactment of this section. Notwithstanding the prohibition 7 contained in the first sentence of this section on the payment 8 of annuity for any period prior to the enactment of this sec9 tion, in any case in which the Civil Service Commission 10 determines that 11 12 13 14 15 16 17 18 19 (1) the remarriage of any widow or widower described in such sentence was entered into by the widow or widower in good faith and in reliance on erroneous information provided by Government authority prior to that remarriage that the then existing survivor annuity of the widow or widower would not be terminated be cause of the remarriage; and (2) such annuity was terminated by law because of that remarriage; 20 then payment of annuity may be made by reason of this sec21 tion in such case, beginning as of the effective date of the 22 termination because of the remarriage. 23 SEC. 206. (a) The first sentence of subsection (d) of 24 section 8341 of title 5, United States Code, is amended to 25 read as follows: "If an employee or Member dies after com 12 1 pleting at least 18 consecutive months of civilian service, the 2 widow or dependent widower of the employee or Member is 3 entitled to an annuity equal to 55 percent of an annuity com4 puted under section 8339 (a)-(e) and (h) of this title as 5 may apply with respect to the employee or Member, except 6 that in the computation of the annuity under such section, 7 the annuity of the employee or Member shall be at least the 8 smaller of (i) 40 percent of his average pay, or (ii) the sum 9 obtained under such section after increasing his service of the 10 type last performed by the period elapsing between the date 11 of death and the date he would have become 60 years of age." 12 13 (b) Subsection (e) (1) of such section is amended to 14 read as follows: 15 16 "(e) (1) If an employee or Member dies after completing at least 18 consecutive months of civilian service, or an em17 ployee or Member dies after retiring under this subchapter, and is survived by a spouse, each surviving child is entitled to an annuity equal to the smallest of— "(A) 60 percent of the average pay of the employee or Member divided by the number of children; "(B) $900; or "(C) $2,700 divided by the number of children; subject to section 8340 of this title. If the employee or 13 6 Member is not survived by a spouse, each surviving child is entitled to an annuity equal to the smallest of— "(i) 75 percent of the average pay of the employee or Member divided by the number of children; "(ii) $1,080; or "(iii) $3,240 divided by the number of children; 7 subject to section 8340 of this title." 8 SEC. 207. Section 8345 of title 5, United States Code, 9 is amended by adding at the end thereof the following new 10 subsection: 11 "(f) An amount, not to exceed $3,000 each year, which 12 is received by an annuitant or a survivor annuitant under 13 this subchapter and, except for this subsection, which would 14 be included as gross income for purposes of the Federal 15 income tax laws, shall not be included as gross income under 16 such laws." 17 SEC. 208. (a) The amendments made by sections 201, 18 202, 203, and 206 (a) of this Act shall not apply in the 19 cases of persons retired or otherwise separated prior to the 20 date of enactment of this Act, and the rights of such persons 21 and their survivors shall continue in the same manner and 22 to the same extent as if such sections had not been enacted. 23 J (b) The amendments made by section 204 (a) of this 24 Act to section 8340 of title 5, United States Code, shall apply 14 1 only to annuity increases which become effective under such 2 section 8340 after the date of enactment of this Act. 3 (c) (1) The amendment made by section 206 (b) of this 4 Act shall become effective on the first day of the first month 5 which begins on or after the date of enactment of this Act. 6 (2) The annuity of each surviving child receiving an 7 annuity under section 8341 (e) of title 5, United States Code, 8 or comparable provision of a prior law, immediately prior 9 to the effective date of such amendment shall be recomputed, 10 effective on such date, in accordance with such amendment. 11 No increase allowed and in force prior to such date under 12 section 8340 of such title shall be included in the recomputa13 tion of any such annuity, and this paragraph shall not oper14 ate to reduce any annuity. 15 (d) The amendment made by section 207 shall apply 16 with respect to amounts received on or after the first day of 17 the first calendar year beginning on or after the date of en18 actment of this Act. |