(1) In general

Subchapter VII of chapter 55 of title 5, United States Code, is amended by adding at the end the following:

5571. Employee death gratuity payments

(a) Definition

(1) In general

Notwithstanding section 5561(2), in this section, the term employee means an individual who has been determined by the Secretary of Labor to be an employee within the meaning of section 8101(1), but not including any individual described under subparagraph (D) of such section.

(2) Exclusive authority

A determination described in paragraph (1) may be made only by the Secretary of Labor.

(b) Gratuity

(1) In general

With respect to the death of an employee, the head of the agency at which the employee was employed shall pay from appropriations made available for salaries and expenses of that agency a death gratuity to the person identified under subsection (c)(2), if the death of the employee—

(A)

results from injuries incurred—

(i)

in connection with such employee’s employment with the Federal Government; or

(ii)

as a result of a criminal act, an act of terrorism, a natural disaster, or any other circumstance as determined by the agency head; and

(B)

is not—

(i)

caused by willful misconduct of the employee, as determined by a review conducted by the applicable office of Inspector General;

(ii)

caused by the intention of the employee to bring about the injury or death of the employee or another; or

(iii)

proximately caused by the intoxication or self-impairment of the employee.

(2) Amount

(A) In general

Except as provided in subparagraph (B), the amount of a death gratuity paid under paragraph (1) with respect to an employee shall be $100,000, as adjusted each March 1 by the amount determined by the Secretary of Labor to represent the percentage change in the Consumer Price Index for All Urban Consumers (all items; United States city average) published for December of the preceding year over that Index published for the December of the year prior to the preceding year, adjusted to the nearest 1/10 of 1 percent.

(B) Local compensation plans

For an employee compensated under a local compensation plan established under section 408 of the Foreign Service Act of 1980 (22 U.S.C. 3968), the amount of a death gratuity paid under paragraph (1) with respect to the employee shall be in an amount determined in rules issued by the Secretary of State.

(c) Recipient of payment

(1) Child defined

In this subsection, the term child means a child of an employee of any age, including—

(A)

an adopted child or a stepchild; and

(B)

a foster child but only if the child lives with the employee in a regular parent-child relationship.

(2) Order of precedence

A death gratuity paid under subsection (b) with respect to an employee shall be paid in the following order of precedence:

(A)

(i)

To the beneficiary designated to receive the gratuity by the employee in a signed and witnessed official Federal Government form that is received by the agency employing the employee before the date of the death of the employee.

(ii)

A designation, change, or cancellation of beneficiary in a will, or another document not described in clause (i), shall have no force or effect for the purposes of that clause.

(B)

If there is no beneficiary described in subparagraph (A), to the surviving spouse of the employee.

(C)

If neither subparagraph (A) nor (B) applies, to any child (or grandchild if the child who is the parent of such grandchild is deceased) such that each such child or grandchild (as the case may be) receives an equal amount of the gratuity.

(D)

If none of subparagraph (A), (B), or (C) applies, to the surviving parents of the employee such that each such surviving parent receives an equal amount of the gratuity.

(E)

If none of subparagraphs (A) through (D) applies, to the duly appointed executor or administrator of the estate of the employee.

(F)

If none of subparagraphs (A) through (E) applies, to the person designated according to the laws of the State in which the insured individual legally resided.

(d) Tax treatment

A payment under this section shall not be includible in the gross income of the recipient for purposes of the Internal Revenue Code of 1986.

(2) Repeal of death gratuity payment authority

Section 651 of the Treasury, Postal Service, and General Government Appropriations Act, 1997 (5 U.S.C. 8133 note) is repealed.

(3) Technical and conforming amendments

(1) FAA

Section 40122(g)(2) of title 49, United States Code, is amended—

(2) Certain TSA employees

Section 111(d)(2) of the Aviation and Transportation Security Act (49 U.S.C. 44935 note) is amended by adding at the end the following:

(C) Death gratuity

Section 5571 of title 5, United States Code, shall apply to any individual appointed under paragraph (1).

(3) VHA employees

Section 7425 of title 38, United States Code, is amended by adding at the end the following:

(d)

Notwithstanding any other provision of this subchapter, the Administration shall provide, with respect to individuals appointed to any position described in section 7421(b) who are employed for compensation by the Administration, the death gratuity under section 5571 of title 5.

(1)

by inserting (1) after (a);

(2)

by striking $800 and inserting $8,800; and

(3)

by adding at the end the following:

(2)

The amount described in paragraph (1) shall be adjusted on March 1 of each year by the percentage amount determined by the Secretary of Labor under section 8146a for that year.

(3)

A payment under this subsection shall not be includible in the gross income of the recipient for purposes of the Internal Revenue Code of 1986.

(1)

in subsection (a)—

(2)

by striking subsection (c) and inserting the following:

(c) Relationship to other benefits

With respect to a death occurring on or after the date of enactment of the Honoring Civil Servants Killed in the Line of Duty Act, any compensation otherwise payable to an individual under this section in connection with any death shall be reduced by any amounts payable to such individual under any other program funded in whole or in part by the United States (excluding any amount payable under section 5569(d)) in connection with such death.;

(3)

in subsection (d), by adding at the end the following:

(7)

If a person covered by this section does not have any eligible survivors, as described in this subsection, and that person has not designated an alternate person to receive a payment under this section, the payment shall be paid to the personal representative of the person’s estate.; and

(4)

by adding at the end the following:

(f) Tax treatment

A payment under this section shall not be includible in the gross income of the recipient for purposes of the Internal Revenue Code of 1986.

(1)

in subsection (a)—

(2)

by amending subsection (b) to read as follows:

(b) Executive agencies

The head of an executive agency shall, pursuant to guidance issued under subsection (c), make a death gratuity payment authorized by this section to the surviving beneficiaries of—

(1)

any employee of that agency who dies as a result of injuries sustained in the performance of duty abroad while subject to the authority of the chief of mission pursuant to section 207; or

(2)

an individual in a special category serving in an uncompensated capacity for that agency abroad in support of a diplomatic mission, as identified in guidance issued under subsection (c), who dies as a result of injuries sustained in the performance of duty abroad.;

(3)

by striking Guidance.— and all that follows through pursuant to section 207. and inserting the following:

(c) Guidance

Not later than 60 days after the date of the enactment of the Consolidated Appropriations Act, 2014, the Secretary shall, in consultation with the heads of other relevant executive agencies, issue guidance with criteria for determining eligibility for, and order of payments to, survivors and beneficiaries of any employee or of an individual in a special category serving in an uncompensated capacity for that agency who dies as a result of injuries sustained in the performance of duty while subject to the authority of the chief of mission pursuant to section 207.;

(4)

by striking subsection (d);

(5)

by redesignating subsection (e) as subsection (f);

(6)

by inserting after subsection (c) the following new subsections:

(d) Eligibility under chapter 81 of title 5, United States Code

A death gratuity payment shall be made under this section only if the death is determined by the Secretary of Labor to have resulted from an injury (excluding a disease proximately caused by the employment) sustained in the performance of duty under section 8102 of title 5, United States Code.

(e) Offset

Any compensation otherwise payable to an individual under this section in connection with any death shall be reduced by any amounts payable to such individual under any other program funded in whole or in part by the United States (excluding any amount payable under section 5569(d)) in connection with such death.;

(7)

in subsection (f), as so redesignated by paragraph (5), by amending paragraph (2) to read as follows:

(2)

the term surviving beneficiaries means the person or persons identified pursuant to the order of precedence established under section 5571(c)(2) of title 5, United States Code.; and

(8)

by adding at the end the following:

(g) Tax treatment

A payment under this section shall not be includible in the gross income of the recipient for purposes of the Internal Revenue Code of 1986.

(1)

in subsection (a), by inserting after $100,000 the following: , as adjusted each March 1 by the amount determined by the Secretary of Labor to represent the percentage change in the Consumer Price Index for All Urban Consumers (all items; United States city average) published for December of the preceding year over that Index published for the December of the year prior to the preceding year, adjusted to the nearest 1/10 of 1 percent; and

(2)

by adding at the end the following:

(e) Tax treatment

A payment under this section shall not be includible in the gross income of the recipient for purposes of the Internal Revenue Code of 1986.

(1)

the term agency means an agency that is authorized or required to make a payment under a covered provision; and

(2)

the term covered provision means—

(1)

there are authorized to be appropriated to the agency such additional sums as may be necessary to make those additional payments; and

(2)

the head of the agency may make such additional payments to the extent additional such additional sums are made available for those purposes.