104 STAT. 322 PUBLIC LAW 101-335—JULY 17, 1990 (c) AMENDMENTS TO SECTION 8435.— (1) DETERMINATION OF MARITAL STATUS. — Section 8435(c)(l) of title 5, United States Code, is amended— (A) by inserting "an annuity contract is purchased to provide for" after "the date on which"; and (B) by striking "commences". (2) DEADLINE FOR RECEIPT OF NOTIFICATION. — Section 8435(d)(2)(B)(ii) of title 5, United States Code, is amended by striking "the annuity commences," and inserting "an ginnuity contract is purchased to provide for the smnuity,". 5 USC 8433 note. (d) EFFECTIVE DATE.—The amendments made by this section shall be effective as of April 1, 1987. SEC. 6. PROVISIONS RELATING TO ACCOUNTS HAVING A FINAL BALANCE OF $3,500 OR LESS. (a) IN GENERAL. — (1) DEFINITION. — Section 8401 of title 5, United States Code, is amended— (A) in paragraph (30), by striking the final "and"; (B) in paragraph (31), by striking "States." and inserting "States; and"; and (C) by adding at the end the following: "(32) the term 'nonforfeitable account balance' means any amounts in an account, established and maintained under subchapter III, which are nonforfeitable (as determined under section 8432(g)). " (2) PAYMENT OF NONFORFEITABLE ACCOUNT BALANCE IN CASE OF NONELECTION.—Section 8433(h) of title 5, United States Code, is amended to read as follows: "(h)(l) Notwithstanding subsection (d), if an employee or Member separates from Government employment before becoming entitled to a deferred annuity under subchapter II, and such employee's or Member's nonforfeitable account balance is $3,500 or less, the Executive Director shall pay the nonforfeitable account balance to the participant in a single payment unless the employee or Member elects, at such time and otherwise in such manner as the Executive Director prescribes, to have the nonforfeitable account balance transferred to an eligible retirement plan as provided in subsection (e). "(2) Notwithstanding subsections (b) and (c), if an employee or Member separates from Government employment under circumstances making such employee or Member eligible to make aa election under either of those subsections, and such employee's or Member's nonforfeitable account balance is $3,500 or less, the Executive Director shall pay the nonforfeitable account balance to the participant in a single payment unless the employee or Member elects, at such time and otherwise in such manner as the Executive Director prescribes, one of the options available under subsection (b) or (c), as applicable. "(3) Unless otherwise elected under this section, and subject to paragraphs (1) and (2), benefits under this subchapter shall be paid as an annuity commencing for an employee. Member, former employee, or former Member on February 1 of the year following the latest of the year in which— "(A) the employee. Member, former employee, or fwmer Member becomes 65 years of age;
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