S. 4290 — Retirement Annuity Supplement Clarity Act

This section revises court order provisions applicable to Federal Employees Retirement System (FERS) annuities (5 U.S.C. §8467) to require inclusion of annuity supplement payments (i.e., payments to FERS annuitants retiring before age 62 to simulate Social Security benefits) in the computation of court-ordered divisions unless the order expressly excludes them. (Thus, former spouses are entitled to a pro rata share of the supplement absent an express exclusion.) It makes a conforming amendment by striking subsection (c) of 5 U.S.C. §8421. The revisions apply to annuity supplement payments beginning on or after the date of enactment. Additionally, for "covered annuitants" (i.e., those retired before enactment whose annuity was subject to a court order silent on or excluding the supplement, and whose supplement was recomputed by the Office of Personnel Management to include it in the division during June 30, 2016, through enactment), the section (1) requires a one-time payment (without interest) equal to amounts deducted from the annuitant's annuity due to that recomputation, and (2) waives any prior overpayments to the annuitant or former spouse resulting from excluding the supplement.