To amend chapters 83 and 84 of title 5, United States Code, to provide for measures to preserve the value of deferred annuities over the period of the time between separation from Government service and when payments commence, and for other purposes.

Amends Federal civil service law, with respect to computation of deferred annuities under both the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS), to revise the period for which average pay shall be adjusted for cost-of-living increases to make it the period from the date of separation on which title to an annuity is based until the annuity commencement date (currently, the period between commencement of the annuity until the effective date of the adjustment).

Revises the computation of a survivor annuity similarly to reflect commencement of the survivor annuity, in the event that the Federal retiree should die after separation but before commencement of the deferred annuity.

Provides that the survivor of a former employee under CSRS who dies after separating from service but before commencement of such employee's deferred annuity shall be accorded the same treatment as would apply in those circumstances under FERS.