; and (F) by inserting after subsection (g) the following: (h) Conditional election of insurable interest survivor annuity by participants married at the time of retirement (1) Authority to make designation Subject to the rights of former spouses under subsection (b) and section 222, at the time of retirement a married participant found by the Director to be in good health may elect to receive an annuity reduced in accordance with subsection (f)(1)(B) and designate in writing an individual having an insurable interest in the participant to receive an annuity under the system after the participant's death, except that any such election to provide an insurable interest survivor annuity to the participant's spouse shall only be effective if the participant's spouse waives the spousal right to a survivor annuity under this Act. The amount of the annuity shall be equal to 55 percent of the participant's reduced annuity. (2) Reduction in participant's annuity The annuity payable to the participant making such election shall be reduced by 10 percent of an annuity computed under subsection (a) and by an additional 5 percent for each full 5 years the designated individual is younger than the participant. The total reduction under this subparagraph may not exceed 40 percent. (3) Commencement of survivor annuity The annuity payable to the designated individual shall begin on the day after the day that the retired participant dies and terminate on the last day of the month before the designated individual dies. (4) Recomputation of participant's annuity on death of designated individual An annuity that is reduced under this subsection shall, effective the first day of the month following the death of the designated individual, be recomputed and paid as if the annuity had not been so reduced. . (2) Conforming amendments (A) Central Intelligence Agency Retirement Act The Central Intelligence Agency Retirement Act ( 50 U.S.C. 2001 et seq.) is amended— (i) in section 232(b)(1) ( 50 U.S.C. 2052(b)(1) ), by striking 221(h), and