DUAL COMPENSATION ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000500010002-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 252
• Document Creation Date: December 16, 2016
• Document Release Date: April 28, 2005
• Sequence Number: 2
• Publication Date: November 7, 1963
• Content Type: REPORT

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88TH CONGRESS HOUSE OF REPRESENTATIVES REPORT
1st Session No. 890
DUAL COMPENSATION ACT
NOVEMBER 7, 1963.-=-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. MURRAY, from the Committee on Post Office andJCivil Service,
submitted the following
REPORT
[To accompany H.R. 7381]
The Committee on Post Office and Civil Service, to whom was
referred the bill (H.R. 7381) to simplify, modernize, and consolidate
the laws relating to the employment of civilians in more than one
position and the laws concerning the civilian employment of retired
members of the uniformed services, and for other purposes, having
considered the same, report favorably thereon with amendment and
recommend that the bill do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert the part printed
in italic.
The amendment proposed by the committee strikes out all after
the enacting clause and inserts a substitute text which is set forth in
italic type in the bill, as reported. A statement of the purpose and
effect of the amendment is contained in this report under the heading
"Explanation of the Bill, As Reported."
PURPOSES
The general purposes of this legislation are to aid the Federal
Government in obtaining the best qualified people available for hard
to fill civilian positions; to provide reasonably uniform and fair treat-
ment for retired military personnel with respect to their employment
in Federal civilian positions; to provide appropriate safeguards so
that Federal civilian employment of retired military personnel will
not grant such personnel unfair advantage over civilian employees
or unduly hamper career opportunities for civilian employees; and
99-006-63-1
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DUAL COMPENSATION ACT
to consolidate and simplify the present numerous and confusing stat-
utes on dual compensation and dual employment in the confusing,
Government.
STATEMENT
This legislation is the outcome of more than 8 years of intensive
studies and discussion within the executive branch, appropriate coni-
mit.tees of the Congress, and representatives of comp oyee, veterans,
and retired military personnel organizations.
The conflicting and various approaches recommended by the
organizations and by the administration were presented to the house
Post Office and Civil Service Committee daring 7 days of public
hearings. The many diverse views clearly show that it. would be
impossible to follow completely the approach advocated by any one
group.
The committee believes that. the reported bill to represent overall
a fair and workable approach which most nearly meets the needs of
the public interest and the desire and needs of the veterans, military
retirees, and civilian employee organizations.
Administrative recommendation
The bill carries out three of tlie four major policy criteria recom-
mended by the administration as necessary for dual-employment, and
dual-compensation laws. The fourth policy criteria is adopted in
part.
The policy criteria are set forth below.
(1) The policy should be to codify all existing dual compensation
and dual-cniploynnent laws into one law which will be relatively
simple to interpret and administer and which will eliminate the hard-
ships caused individuals as a result of inadvertent, good faith mis-
understandings of the application of the law.
(2) The policy should make it possible for tlie Government to
recruit any retired military person who possesses scarce skills needed
for Government programs.
(3) The policy should protect career civilian employees from advan-
tages enjoyed by retired military personnel solely as a result of military
service such as, for example, the advantage of veterans preference in
reductions in force enjoyed by n-ost military retirees.
(4) The policy should provide for equitable treatment of all retired
military personnel, whether Regular or Reserve, officer or enlisted.
Summary of committee action.
The conunittec action on the dual-compensation and dual-employ-
iment criteria described above may be summarized as set forth below.
(1) The bill will repeal existing statutes on dual compensation and
dual employment as recommended in the first policy criteria and pro-
vide a single statute setting forth clearly the Government's policy on
dual compensation and dual em,pployment.
(2) In connection with policy f o. (3) above, the bill will remove the
unjust advantages enjoyed by retired military personnel over career
civilian personnel in reductions in force. Also, a more realistic method
will be provided for counting military service for annual leave purposes.
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DUAL COMPENSATION ACT 3
No change is made in the veterans preference benefits for retired
military personnel under section 2 of the Veterans Preference Act
of .1944 (5 U.S.C. 851) or in. the.present method of crediting military
service for annuity purposes under the Civil Service Retirement Act
(5 U.S.C. 2251 and following).
Restrictions and controls are included in sections 204 and 205 of the
bill to assure competitive examinations where practicable in connection
with the appointment of a retired member to a civilian office in the
competitive civil service and to require a delay of 180 days after
retirement when such retirees are to be appointed to a civilian office
in the Department of Defense.
(3) The committee has adopted the second policy and part of the
fourth policy by eliminating the statutory restriction on employment
by the Federal Government of retired Regular officers, the only group
of military retirees still subject to the office-holding restrictions of
section 2 of the act of July 31, 1894, as amended (5 U.S.C. 62). Such
officers, however, will have their retired pay reduced; but the status
quo of retired reservists and enlisted men will not be changed and
they will continue to be able to receive full civilian compensation and
full military. retired pay.
The committee also adopted a standard policy on, dual employment
of civilian employees. The bill will limit civilian employees to the
equivalent of one full-time job and part-time civilian employees to a
combination of part-time positions equaling one full-time position.
Safeguards
The committee recognizes that there are those who feel that this
bill represents an excessive and untimely reversal of longstanding
legislative polity; particularly in regard to those provisions which
repeal the existing laws. relating to limitations on dual employment
and dual compensation.
There is no dispute that abuses have crept into Federal multiple-
office holding. However, a review of the legislative history of the
major dual office-holding prohibition of the 1894 act and the dual
compensation prohibition of the 1916 act, each of which was enacted
as a part of an appropriation act, shows that the abuses which gave
rise to the prohibitions were based on a very few cases. Moreover,
the criteria used in those. acts-such as $2,500 in. the 1894 act and
$2,000 in the 1916 act-would result in absolute prohibition under
today's rates of compensation except for the fact that many excep-
tions to the prohibitions have been granted by legislation.
The committee is convinced that this legislation does contain
adequate safeguards to replace the provisions of law which are re-
pealed by section 402 of the bill, as reported. Sections 204 and 205,
relating to the restrictions on appointing retired military personnel,
will assure that the needs and requirements of the Government will be.
the primary.basis for determining the propriety of employing retired
military personnel. Moreover, section 301 will limit employees of
the Government to compensation for one full-time civilian office,
unless an exception is granted by the U.S. Civil Service Commission,
on the basis of the Government employment needs.
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The current situation
There are over 40 different laws and around 200 separate Comp-
troller General decisions relating either to the employment of retired
military ppersonnel in Federal civilian positions or to the employment
of a civilian in two different Federal positions. Only a very few
experts in Government completely understand these laws and decisions
and, unfortunately, they cannot be present at all the places and on
all the occasions where decisions on appointments and other matters
involving these laws must be made.
Three of these forty or more laws are basic and have Government-
wide application.
The act of July 31, 1894, which is commonly referred to as the
dual employment or dual office-holding statute, is the earliest of these
three basic laws. It provides, briefly, that no person may hold two
offices if the salary attached to either is $2,500 or more per annum.
This act applies both to the employment in civilian positions of
retired military officers and to the holding of two different civilian
positions. Retired military personnel of the regular components
are considered to hold office for purposes of this statute. Retired
reservists, on the other hand, are not.
In 1894, when this particular law was passed, $2,500 was a fairly
considerable sum of money. Members of Congress then received
$5,000 a year. Assistant secretaries of Cabinet departments were
generally paid between $3,500 and $4,500 a year. Chief clerks of
departments and chiefs or major divisions, most of whom would
be in the higher grades of the Classification Act today, were paid
$2,500 a year.
A retired major with 30 years of service in 1894 would have been
retired at slightly over $2,500 a year, and, of course, a major in 1894
held a higher relative military rank than a major of today. There
were at that time a, total of only 390 Army and Navy retired officers
of the rank of major or lieutenant commander and above. This was,
therctore, the only group of retired military personnel actually pro-
hibited from holding civilian office by this law when it was passed;
other retired officers could accept Federal civilian positions paying
less than $2,500 a year.
By reason of statutory exemptions enacted since 1894, more than
1,100 retired officers of the rank of major or lieutenant commander
and above an currently employed as civilian employees in the Depart-
ment of Defense,.
Incidentally, the only exceptions to this law when it was passed
were for retired officers who were either elected to public office or
appointed by the President. subject to Senate confirmation.
In 1924, when increased wages and retired pay had the effect of
bringing all officers and some enlisted men under the practical opera-
tion of the $2,500 ceiling, an amendment was passed to exec t all
retired enlisted men (not including warrant officers) and those officers
retired for disability incurred in line of duty.
Those are still the only exceptions spec cally listed in the basic
statute. Numerous other exceptions, however, have arisen from other
statutes and from interpretations of the courts and the Comptroller
General. Out of 40,000 military retirees during fiscal year 1963, less
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DUAL COMPENSATION ACT
than 4,200 were subject to the dual employment prohibition of the
1894 act.
The act of 1916, the second of the basic dual-compensation acts,
applies to the holding of two civilian Government positions. This
law provides that no person may receive two salaries when the com-
bined rate exceeds the sum of $2,000 per annum. Because of this
law's restrictive provisions, many agencies have had to go to Congress
to obtain special statutory exemptions.
The act of 1932, the third of the basic dual-compensation acts,
applies only to regular officers and to certain "temporary" officers
who are, in either case, retired for "noncombat" disability. The act,
as amended in 1956, provides that such officers may not receive retired
pay if it would result in their receiving more than $10,000 per year in
combined retired pay and salary. If the military retired pay alone is
$10,000 or more, the officer may elect either the retired pay or the
salary of the civilian position. If the military pay, is less than $10,000
he may receive the full salary of his civilian position, but his retired
pay is reduced as necessary to bring the combined sum within the
$10,000 limit.
Officers who are retired for disability "incurred in combat with an
enemy of the United States or caused by an instrumentality of war
in time of war" are excepted from this $10,000 limitation. Retired
Reserve officers were considered to be subject to this act until the
Court of Claims, in a series of decisions beginning in 1954, held that
they were exempt by virtue of other legislation.
All three of these acts may have been quite reasonable at the time
they were enacted. Because of changing economic and employment
conditions, however, the dollar limitations set in these laws have long
since become obsolete, in many cases depriving the Government of
the services of highly trained retired military personnel. Numerous
exceptions to these laws have been made on a piecemeal basis in an
attempt to meet this situation, with the result that, at the present
time, the legal hodgepodge is extremely difficult to understand, to say
nothing of the impossibility of applying the laws equitably.
From the standpoint of good administration alone, a single, simpli-
fied dual-compensation law would save much of the time and money
now spent in the executive branch in an attempt to administer and
enforce the existing collection of obsolete, complex, and now unrealistic
statutes.
Administrative difficulties under the present laws impede efficient
Government management. The complexity of the statutes make
economy of administration impossible. Agencies encounter continual
problems in their efforts to make sure that existing restrictions are
observed. The cost involved in attempting to reconcile the various
statutes as applied to specific cases is known to be large, even though
it cannot be accurately estimated for any given period of time.
Numerous decisions of the Comptroller General have been required.
Appointing, payroll, certifying, and disbursing officers must be con-
versant with a large body of highly complicated law.
Injustices to individuals have also occurred. because of misinforma-
tion and erroneous conceptions of what the law requires. Private
bills have been introduced in Congress to relieve cases of unusual
hardship that have resulted from such situations.
At the present time, a situation exists where it may be necessary
because of recent legal decisions, unless legislative relief is obtained,
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G DUAL COMPENSATION ACT
retroactively to subject approximately 500 retired commissioned Army
of the United States officers and an unknown number of retired com-
missioned Air Force officers to the dual compensation restrictions of
section 12 of the Economy Act of 1932. Similarly, under a recent
Comptroller General decision, a number of retired temporary warrant
officers have been found to be serving in Federal civilian positions in
violation of the Dual Office Holding Act of 1894. These problems are
corrected by sections 201 (g) and (h) of the bill.
One of the worst effects of these laws today is the waste of trained
manpower so badly needed in the Federal service. Nearly 40,000
carefully selected, ' highly trained, broadly experienced, loyal, and
dedicated American citizens are not available as a source of skilled
manpower for programs of their Government. In order to keep our
military officer corps at the peak of physical vigor and efficiency,
many are retired at, it relatively early a;e, some after only 20 years of
military service. Many of these retired officers are qualified as
scientists, engineers, administrators, medical officers, and nurses, and
in other skilled occupations where the demand for outstanding people
is great.
LjBecause of the nature of the work performed by civilians in the
military departments, many skills required are not readily available in
the civilian market or from among the civilians already employed.
The technical knowledge and understanding necessary for the per-
formance of this work are frequently found only among those men
who have served the armed services during a career in uniform. In
many instances these skills and understandings have been developed
through training provided at Government expense in the course of
military service. The retired military personnel, consequently,
constitute a useful source of scarce skills for civilian employment.
This country cannot afford to waste this skilled manpower. Suit-
able employment in private industry is precluded for many by the
conflict-of-interest laws, by consideration of age and company retire-
ment provisions, or because of the fact that the individual's experience
is most useful in Government. In other cases, where the individual
is eagerly sought after by private industry, including defense con-
tractors, it, would be much to the practical advantage of the Govern-
ment. to have such persons on the Government side rather than the
industry side, for example, in weapons systems procurement or
contract supervision.
We have obtained some actual examples of recently retired regular
officers who cannot now be employed in the Federal service, unless
some special statutory provision is obtained:
A medical officer who had specialized in research in pathology
retired from the Army as a colonel. The Public health Service is
doing research in the saint area and could have used his background
and skills to great advantage..
A trained meteorologist, a chief warrant officer, was retired at- age
44, several years ago. The Weather Bureau could not employ him.
A mathematician, retired at 48 as a colonel, with Iwo teenage chil-
dren, had to seek employment outside the Government.
A mechanical engineer, retiring at 43 as a colonel, with a background
in engineering research at Wright Air Development Center, had to
seek employment in private aircraft firms.
An aeronautical engineer, retired as a lieutenant colonel at age 42,
with a background in research and development, had to seek employ-
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'DUAL COMPENSATION ACT
ment outside the Government. He had received his master's degree
from the Air Institute of Technology-an Air Force school.
The Congress, the executive branch, and others concerned with the
problems of dual compensation-dual employment have all been seeking
a solution to these problems for a number of years.
James E. Webb, Administrator, National Aeronautics and Space
Administration, during the hearings, cited several cases as typical
problems being experienced by NASA in attempting to fill key position
vacancies by employing retired military personnel competent and
.experienced in the aerospace field.
(1) A colonel recently retired from the U.S. Air Force after 23 years
of military service including program management, commander of
the test wing at Cape Canaveral during the critical Thor-Atlas period,
and test commander at the Special Weapons Center. He was offered
$20,000 as an Assistant Director of NASA's Manned Spacecraft
Center in Houston. However, he declined in favor of a $27,000 posi-
tion with Space Technology Laboratories in which position he would
still be able to draw his $7,000 military retirement. Mr. Walter
Williams, our Deputy Director at Houston, believes the colonel would
have accepted the NASA position if he could have retained all of his
retired pay.
(2) A Navy captain presently on duty at NASA's Manned Space-
craft Center in Houston, as a branch chief, previously served as range
operations officer at Point Mugu, Calif., and in space surveillance at
Dahlgren, Va. His experience is appropriate to work in the develop-
ment of our Apollo tracking network, including coordination with the
Jet Propulsion Laboratory, the Goddard Space Flight Center, and
military tracking systems. He has requested retirement from the
Navy, and has indicated an interest in a position with NASA or any
other Federal research and development agency. However, this cap-
tain will not consider a position unless it would be at the $18,000 to
$20,000 level, in order to compensate in substantial measure for the
loss of retired pay.
(3) An active duty Navy captain, presently on detail at NASA
headquarters as a division director, has had 22 years of military
service. He is considering retirement from the Navy and will be
eligible to receive more than $6,000 retirement pay, which he would
have to waive under the existing laws if employed in NASA as a
civilian at a similar level of responsibility. With his qualifications,
his services would be sought by industry. While he would like to
continue in the NASA program after retirement, he doubts that he
could afford to accept the financial penalty.
Two U.S. Air Force colonels who are currently occupying key
positions at our George C. Marshall Space Flight Center at Huntsville,
Ala., are additional examples in this category.
(4) NASA has, in its employ at the present time, several senior
retired Regular military personnel, one of whom is on the deputy
associate administrator level, which is the .highest level in the agency
of general executives. These officers have served in industry at
much higher combined industry and retired military pay than they
are presently receiving at NASA. Like many civilian personnel in
the higher executive brackets, they are willing to forego, for a while
at least, the attraction of the higher salary of industry in exchange
for the experience and the personal satisfaction of participating first
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DUAL COMPENSATION ACP
hand in the Nation's space program. However, NASA can expect
to lose the services of some of these men after a period of time if they
must continue to forfeit all or most of their retired pay. This financial
penalty in some cases appraaehes one-half to two-thirds of their salary
at NASA.
The first section provides a short title for the proposed law-the
"Dual Compensation Act."
Section 101 defines the special terms used, most of which are based
on the definitions used for the same words by section 101 of title 37,
United States Code. The definition of "civilian office" is intended to
cover employment in any civilian office or position in the Government
of the United States or in the municipal government of the District of
Columbia whether appointive, elective, under a personal service
contract, or otherwise, Such term also covers employment in non-
appropriated fund instrumentalities under the jurisdiction of the
Armed Forces.
TITLE II-EMPLOYMEN '1 OF RETIRED MEMBERS OF UNIFORMED
SERVICES
Reduction in retired or retirement pay
Section 201(a) provides that a retired officer of any Regular com-
ponent of the uniformed services who holds a civilian office shall
receive the full compensation of the civilian office plus the first $2,000
of his retired or retirement pay, plus one-half of the remainder, if any.
The prohibition in section 2 of the act of duly 31, 1894, as amended
(5 L.S.C. 62), against such retired officers holding a civilian office is
repealed by section 402(a)(7) of the bill.
Section 201(a) also provides that. the $2,000 shall be increased byy
appropriate percentages in direct proportion to each increase in sueh
retired or retirement pay under section 1401a(b) of title 10, United
States Code, to reflect changes in the Consumer Price Index. Thus,
if Lite first increase under sued section 1401a(b) amounts to 3 percent,
such a retired officer thereafter will have his retirement or retired pay
reduced to an annual rate equal to the first: $2,000 increased by 3
percent plus ane-half the remainder and the next increase under such
section 1401a(b) would be applied to the new base and any later
increases applied accordingly.
Section 201(b) excepts from reduction in retired pay required by
subsection (a) a retired officer of any Regular component of the
uniformed services whose retirement was based on disability resulting
from a.n injury or disease received in line of duty as a. direct result of
armed conflict or based on disability caused by an instrumentality of
war and incurred in the line of duty during it period of war.
Section 201(c) excepts from the reduction in retired or retirement
pay required by subsection (a) the first 30 days of a temporary,
part-time, or intermittent appointment if serving under one appoint-
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DUAL COMPENSATION ACT 9
ment, or not to exceed a total of 30 days during any fiscal year in
case the employee is serving under more than one appointment.
Section 201(d) provides a definition of "period for which he re-
ceives salary" for purposes of subsections (a) and (c) of section 201.
Section 201(e) authorizes the U.S. Civil Service Commission,
subject to the supervision and control of the President, to prescribe
regulations under which exceptions to subsection (a) may be made
whenever it is determined by appropriate authority that exceptions
are warranted on the basis of special or emergency employment
needs which otherwise cannot readily be met. Authority to provide
a means for exceptions from subsection (a) also is vested in the
President of the Senate with respect to the U.S. Senate, the Speaker
of the House with respect to the U.S. House of Representatives,
and the Architect of the Capitol with respect to the Office of the
Architect of the Capitol. Special authority is granted the Adminis-
trator of the National Aeronautics and Space Administration to
exempt from such subsection (a) any individual in a scientific, engi-
neering, or administrative position appointed pursuant to section
203 (b) (2) (A) of the National Aeronautics and Space Act of 1958, as
amended (42 U.S.C. 2473 (b) (2) (A)), but not more than 30 such
exemptions may exist at any one time.
Section 201(f) provides that a retired officer of any Regular com-
ponent of the uniformed services who was employed in a civilian office
on the day immediately preceding the effective date of the subsection
may elect to remain subject to and continue under any applicable
limitations on or exceptions to the amount of compensation to be
received which were in effect prior to such effective date, or to be
subject to the applicable limitations and exceptions contained in
subsections (a), (b), (c), and (e) of section 201.
It is expected that very few Regular officers will be in a position to
exercise this option because the only Regular officers serving in civilian
positions at the present time are those serving in positions for which
specific statutory exemptions have been granted from the dual office
holding prohibitions of section 2 of the act of July 31, 1894, as amended
(5 U.S.C. 62).
Reserve officers
Section 201 (g) authorizes the retroactive exemption from the $10,000
compensation restriction of section 212 of the act of June 30, 1932,
as amended (5 U.S.C. 59a), for certain retired members who were
serving in the Army or Air Force of the United States without com-
ponent in a temporary grade higher than, or the same as, the Reserve
commission then held who were retired in such grade for physical
disability. The exemption will be retroactive and apply to each such
person for any period following his retirement. The effect of the
provision will be to require retroactive adjustment in retirement or
retired pay and will overcome the recent decision of the Comptroller
General involving these officers (B-136459, May 18, 1961).
Warrant officers
Section 201(h) will exempt a non-Regular member of any of the
Armed Forces who served on. activb duty in a temporary warrant
officer grade and who was retired in that status prior to the effective
date prescribed by section 403 (a) of the bill from the restriction in
section 2 of the act of July 31, 1894; as amended (5 U.S.C. 62), for
IT. Rept. 890, 88-1-2
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any period following his retirement. This provision is designed to
protect the civilian appointments of such retired warrant officers
retroactively to the date of their appointment to civilian positions.
This provision will overcome the holding of the Comptroller General's
decision of April 2, 1963 (B- 141989) that a retired temporary warrant
officer is subject to the dual-office restriction contained in the act of
July 31, 1894, and, therefore could not legally be appointed to a
civilian office.
Redaction-in force benefits
Section 202 of the bill amends section 12 of the Veterans Preference
Act of 1944, its amended (5 U.S.C. 461), to restrict the retention rights
in connect ion with reduction in force of curtain civilian employees who
are retired members of a uniformed service. Section 202 adds a new
subsection (b) to such section 12 which %% ill grant, for reduction-in-
force purposes, an employee who is a retired member of any of the
uniformed services a preferred stal us as a preference employee only
if his retirement was based on disability resulting from injury or
disease received in line of duty as a direct result of armed conflict or
based on disability caused by an instrumentality of war and incurred
in line of duty during at period of war. In addition, such an employee
will be entitled to retain his veterans' preference status for reduction-
in-force purposes if his military service does not include 20 or more
years of full-time active service, or if, immediately prior to the effec-
tive (late prescribed by section 403(a) of tha bill, he was employed in
a civilian office and, on or after such date, he continued to be employed
in such our", without a break in service of more than 30 days.
Section 202 of the bill also adds a new subsection (c) to section
12 of the Veterans Preference Act of 1944. The new subsection (c)
reduces the military service that may be counted by employees for
reduction-in-force purposes when the employee is a retired member
of the uniformed services. The new subsection (c) will authorize the
crediting of military service for reduction-in-force purposes by an
employee who is a retired member of any of the uniformed services
only for the length of time in active service in the Armed Forces during
any war or in any campaign or expedition, or for the total length of
time in active service in the Armed Forces, if the employee is covered
by any one of the descriptions contained in clause (1), (2), or (3) of
the new subsection (b) of section 202 discussed above. The counting
of military service by employees who meet the requirements of the
new subsection (c) is authorized, as heretofore, without regard to
whether he is entitled to veterans' preference.
Crediting military service far annual leave purposes
Section 203 of the bill amends section 203(a) of the Annual and
Sick Leave Act of 1951 to provide a more restrictive method of
crediting active military service of a retired member of any of the
uniformed services for annual leave accrual purposes. Under existing
law all service creditable under section 3 of the Civil Service Retire-
ment Act for purposes of annuity may be counted in determining
annual leave accruals (which are based on 13 days per year up to 3
Years of service, 20 days after 3 years of service up to 15 years, and 26
days per year after 1,5 years of service). It is the current practice to
count all military service for annual leave accrual purposes since all
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DUAL COMPENSATION ACT 11
military service is creditable under the Civil Service Retirement Act
if the retiree waives his military retired pay.
The amendment to the Annual and Sick Leave Act of 1951 made
by section 203 of the bill will permit a retired member of the uniformed
services to count, for annual leave accrual purposes, only military
service performed in the Armed Forces during any war or in any
campaign or expedition for which a campaign badge has been author-
ized or all of his military service if his retirement is based on disability
resulting from injury or disease received in line of duty as a direct
result of armed conflict or based on disability caused by an instru-
mentality of war and incurred in line of duty during a period of war.
The section also contains a savings clause to permit those now em-
ployed to continue counting all their military service.
Civilian employment procedures-Retired military personnel
Sections 204 and 205 establish safeguards which will assure that
consideration of retired military personnel for civil service positions is
accomplished on an equitable competitive basis and that there is
strict compliance in spirit and in procedure with the fundamental
merit system principle of open public competition. These sections
are intended to do away with the so-called buddy system under
which a position is created or held open at a military installation for a
buddy about to retire from the military service. This undesirable
practice has been recognized by officials of the Department of Defense
and procedures to safeguard the merit system were set forth in mem-
orandums issued by Deputy Secretary of Defense Roswell L. Gilpatric
under dates of July 5, 1961, and October 30, 1962.
Section 204 of the bill writes into law the essence of the Gilpatric
policy referred to above.
The provisions of subsection (a) of section 204 are intended to
prohibit most appointments of retired military personnel to civilian
positions in the Department of Defense during a period of 180 days
immediately following their retirement. However, exceptions to the
prohibition are permissible if (1) the proposed appointment is author-
ized by the Secretary concerned or his designee for the purpose and,
if the civilian office is in the competitive civil service, after approved
by the U.S. Civil Service Commission; or (2) higher minimum rates
have been established for the civilian office under section 504 of the
Federal Salary Reform. Act of 1962; or (3) a state of national emergency
exists.
The provisions of subsection (b) of section 204 specify in detail the
information which must accompany a request for the authorization
or a request for the authorization and approval, as the case may be,
required by subsection (a) (1) of section 204.
Section 205 requires that before a retired member of any of the
uniformed services may be appointed to a civilian office in the com-
petitive civil service of any agency in the executive branch there must
be public notice that a vacancy exists and that an assembled examina-
tion, where practicable, open to all persons, is to be given. Also, the
vacancy may be filled only from among those qualified persons who
successfully complete such examination.
The provisions of this section do not apply to appointments to the 30
positions of National Aeronautics and Space Administration referred
to in section 201(e) of the bill.
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12 DUAL COMPENSATION ACT
Report
Section 206 requires the President to transmit to the Congress on or
before January 1, 1966, a comprehensive report, of the operations of the
departments and agencies in the executive branch under title II of
the bill.
It is expected that the report will contain sufficient information to
permit the. appropriate committees of the Congress to review the
utilization of the new dual-employment and dual-compensation system
established by the bill and to review particularly any adverse effects
resulting from the repeal of the dual office holding restrictions of
section 2 of the act of July 31, 1894, as amended (5 U.S.C. 62).
Eraploymcnt in more than one cieitian gfce
The provisions of section 301 of the bill deal solely with the employ-
nient of civilian personnel in more than one civilian office.
Subsection (a) of section 301 will prohibit Government civilian
personnel generally from receiving basic compensation from more than
one civilian office (as defined in section 101(3) of the bill) for more
than an aggregate of 40 hours of work in any calendar week (Sunday
through Saturday). The provisions do not prohibit tin employee
from having it combination of part-tune positions collectively equal
to an aggregate of 40 hours of work in any calendar week.
The prohibition is on the receipt of basic compensation and will
not affect (lie receipt of otherwise properly earned overtime com-
pensation for work in one position in excess of the hours required for
overtone compensation.
Subsection (b) of section 301 authorizes the U.S. Civil Service
Commission, subject to the supervision and control of the President,
to prescribe regulations under which exceptions to subsection (a) of
such section may be made whenever it is determined by appropriate
authority that exceptions are warranted on the ground that. personal
services otherwise cannot be readily obtained.
Subsection (c) of section 301 vests authority to provide a means for
exceptions to subsection (a) of such section in the President of [lie
Senate with respect to the U.S. Senate, the Speaker of the House with
respect to the U.S. House of Representatives, and the Architect of the
Capitol with respect to the Office of the Architect of the Capitol.
Subsection (cl) of section 301 provides that subsection (a) of such
section does not apply to (lie receipt of compensation in unusual
situations which Congress Previously has found deserve special
treatment., or which were the subject of decisions by the Comptroller
General.
Paragraph (1) excepts compensation on a when-actually-employed
basis received from more than one consultant or expert position if such
compensation is not received for the same hours of the same day.
Paragraph (2) excepts compensation consisting of fees paid on other
than a time basis.
Paragraph (3) excepts compensation received by teachers of the
public schools of the District of Columbia for employment in a civilian
office during the summer vacation period.
Paragraph (4) excepts compensation paid by the Tennessee Valley
Authority to enmploees performing certain part-time or intermittent
work in addition to' their normal duties when the Authority deems
it to be in the interest of efficiency and economy.
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DUAL COMPENSATION ACT 13
Paragraph (5) excepts compensation paid by the U.S. Guard to
employees occupying part-time positions of lamplighters.
Paragraph (6) excepts compensation within the purview of pro.
visions of nine laws, each of which are amended by section 401 (i)-(q)
of the bill to provide exceptions from section 301.
Subsection (e) is a savings provision permitting civilian personnel
serving on the effective date of section 301 in more than one position
under properly authorized appointments to continue to serve under
such appointments and to receive the compensation from such offices
:without regard to subsection (a) for the duration of the appointment
.or_ appointments.
Miscellaneous provisions
Subsections (a) through (h) of section 401 of the bill amend. provi-
sions of various laws to eliminate reference to section 212 of the act
of June 30, 1932, as amended (5 U.S.C. 59a), which is repealed by
section 402 (a) (20) of the bill and to insert in lieu thereof reference to
section 201 of the bill, that is, section 201 of the new Dual Compensa-
tion Act. Thus, Regular officers who may be appointed to th,o
civilian offices covered by such laws will have their retired pay reduced
under the provisions of section 201 of the bill, if applicable.
Subsection (a) relates to a member of the Boxing Commission of the
District of Columbia (D.C. Code, sec. 3-1226).
Subsection (b) relates to the Office of Civil Defense in the District
of Columbia (D.C. Code, sec. 6-1202).
Subsection, (c) relates to service as a member of the Peace Corps
National Advisory Council (22 U.S.C. 2512(b)).
Subsection (d) relates to certain consultants, members of advising
boards, and other persons of the Arms Control and Disarmament
Agency (22 U.S.C. 2584).
Subsection (e) relates to retired officers appointed to positions
authorized under the Foreign Assistance Act of 1961 (22 U.S.C.
2386 (b)).
Subsection (f) relates to the Chairman of the Military Liaison
Committee under the Atomic Energy Act of 1954 (42 U.S.C. 2038).
Subsection (g) relates to the Chairman of the Liaison Committee
under the National Aeronautics and Space Act of 1958 (42 U.S.C.
2474 (d)).
Subsection (h) relates to the members of the U.S. Study Commission
on the Savannah, Altamoha, St. Marys, Apalachicola-Chattahoochee,
and Perdido-Escambia River Basins and intervening areas (Public
Law 85-850).
Subsections (i) through (q) of section 401 amend provisions of
various laws to eliminate reference to section 2 of the act of July
31, 1894, as amended (5 U.S.C. 62), and section 6 of the act of May 10,
1916, as amended (5 U.S.C. 58 and 59), relating to dual employment
and dual compensation and to insert reference to section 301 of the
bill, that is, section 301 of the New Dual Compensation Act.
Subsection (i) relates to public school teachers of District of
Columbia employed as teachers of night schools and vacation schools
(D.C. Code, sec. 31-631a).
Subsection (j) relates to certain employees of Library of Congress
(2 U.S.C. 162; 5 U.S.C. 60),
Subsection (k) relates to custodial employees of the District of
Columbia Board of Education when such employees are performing
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14 DUAL COMPENSATION ACT
work in school buildings being used for nonrecreational official pur-
poses by a Federal agency or department. of the District of Colutnbia
government (D.C. Code, see. 31-G31a).
Subsection (1) relates to crews of vessels under the Secretary of
Commerce when assigned duties as instrument observer or recorder
and to Federal employees while observing tides or currents, or tending
seismograph or magnetograpps (33 U.S.C. 873).
Subsection (m) relates to employees conducting meteorological inve3-
tigations in the Arctic region (15 U.S.C. 327).
Subsection (n) relates to Department: of Defense oversea teachers
employed in another position during the school recess period (5 U.S.C.
2358(b)).
Subsection (o) relates to public school teachers of the Canal Zone
who also are employed in night or vacation schools (sec. 102, ch. 7,
title 2, Canal Zone Code).
Subsection (p) relates to Federal employees performing fieldwork of
the Census Bureau in addition to their regular duties (13 U.S.C. 23(b)).
Subsection (q) relates to dual employment of employees in the postal
service (39 U.S.C. 3335).
REPEALS
Section 402 (a) repeals 38 provisions of law relating to dual employ-
ment or dual compensation or which are now obsolete, including the
three major laws on these subjects, namely: (1) Section 2 of the act
of July 31, 1894, as amended (5 U.S.C. 62), relating to the holding of
two offices; (2) section 6 of the act of May 10, 1916 (5 U.S.C. 58),
relating to double salaries; and (3) section 212 of the act of June 30,
1932, as amended (5 U.S.C. 59a), relating to the limitation of $10,000
on the amount of retired pay received for commissioned officer service
when combined with Government civilian salary.
Subsection (b) of section 402 contains provisions repealing all other
law, general or specific, not repealed by subsection (a) and inconsistent
with the provisions of this legislation.
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 Approved For Release 2005/05/18 : CI4LRP0P~~(gj000500k10002-2
DUAL EMPLOYMENT AND D A
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24 DUAL EMPLOYMENT AND DUAL COMIPEISATIO k
('IIANOES IN EXISTING LAW MADE BY TILE BILL, AS
REPORTED
In compliance with subsection 4 of rule XXIX of the Standing Rules
of the Senate, changes in existing law made by the bill, as reported,
are shown as follows (existing law in which no change is proposed is
shown in roman, existing law proposed to be omitted is enclosed in
brackets, and new matter is printed in italic):
SECTION 12 OF THE VETERANS' PREFERENCE ACT OF 1944
(5 U.S.C. 861)
SEc. 12. (a) In any reduction in personnel in any civilian service of
any Federal agency, competing employees shall be released in accord-
ance with Civil Service Commission regulations which shall give
due effect to tenure of employment, military preference (subject to
subsection. (b) of this section), length of service, and efficiency ratings:
Provided, That, subject to subsection (c) of this section, the length of
time. spent in active service in the a-raued forces of the United States
of each such employee shall be credited in computing length of total
service: Provided further, That preference employees whose efficiency
ratings are "good" or better shall be retained an preference to all other
competing employees and that preference employees whose efficiency
ratings are below "good" shall be retained in preference to competing
nonpreference employees who have equal or lower efficiency ratings:
And provided further, That when any or a R of the functions of any
agency are transferred to, or when any agency is replaced by, sonic
other agency, or agencies, all preference employees in the function or
functions transferred or in the agency which is replaced by sonic other
agency shall first. be transferred to the replacing agency, or agencies.
for employment in positions for which they are qualified, before such
agency, or agencies, shall appoint additional employees from any
other source for such positions.
(b) Xotwithstanding any other provision of this Act, an employee who
is a retired member of arty of the uniformed services included unelrr
section 2 of this Act shall be considered a preference employee for the
purposes of subsection (a) of this section only if- -
(1) his retirement was based on disability (A) resulting .from
injury or disease received in line of duty as a direct result of armed
conflict or (B) caused by an instrumentality of war and incurred
in the line of duty during a period of war (as defined in sections 101
and 301 of title 38, United States Code); or
(2) his service does riot include twenty or more years of full-time
active service (regardless of when performed but not including periods
of active duty for training); or
(3) immediately prior to the effective date of this subsection, he
was employed in a civilian office to which this Act applies and, on
and after such date, he continues to be employed in any such, office
without a break in service of more than thirty days.
(c) In computing length of total service, an employee who is a retired
member of any of the uniformed services shall be given credit for -
(1) the length of time in active service in the armed forces during
any uar, or zn any campaign or expedition (for whicA a campaign
badge has been authorized); or
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DUAL EMPLO
(2) if he is included under clause (1), (2), or (3) of subsection
(b) of this section, the total length of time in active service in the
armed forces.
SECTION 203(a) OF' THE ANNUAL AND SICK LEAVE ACT OF
1951 (5 U.S.C. 2062(a))
ANNUAL LEAVE
SEC. 203. (a) Officers and employees to whom this title applies
shall be entitled to annual leave with pay which shall accrue as
follows-
(1) one-half day for each full biweekly pay period in the case
of officers and employees with less than three years of service,
(2) three-fourths day for each full biweekly pay period (except
that the accrual for the last full biweekly pay period in the year
shall be one and one-fourth days) in the case of officers and
employees with three but less than fifteen years of service, and
(3) one day for each full biweekly pay period in the case of
officers and employees with fifteen years or more of service.
Except as, otherwise provided in this subsection, in [In] determining
years of service for the purposes of this subsection, there shall be
included all service creditable under the provisions of section [5]
3 of the Civil Service Retirement Act [of May 29, 1930, as amended.,]
for the purposes of an annuity under such Act and the determination
of the period of service rendered may be made upon the basis of an
affidavit of the employee. Active military service of a retired member
of any of the. uniformed services is not creditable in determining years of
service for the purpose of this subsection unless-
(1) his retirement was based on disabil~.ty (A) resulting from
injury or disease received in line of duty as a direct result of armed
conflict or (B) caused by an instrumentality of war and incurred in
the line of duty during a period of war (as defined in sections 101
and 301 of title 38, United States Code); or
(2) immediately prior to the effective date of this sentence, he was
employed in a civilian office to which this Act applies and, on and
after such date, he continued to be employed in any such office
without a break in service of more than thirty days; or
(3) such service was performed in the armed forces during any
war, or in any campaign or expedition (for which a campaign badge
has been authorized). In the case of an officer or employee who
is not paid on the basis of biweekly pay periods, the leave provided
by this title shall accrue on the same basis as it would accrue
in such officer or employee were paid on the basis of biweekly
pay periods.
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 AppUgyved For ILe q9 j 1> SDI&-. pPg6B0040,38000500010002-2
SECTION 18 OF THE ACT OF DECEMBER 20, 1944, AS ADDED
BY SECTION 2 OF THE ACT OF AUGUST 19, 1950 (64 STAT.
466; D.C. CODE, SEC. 2-1226)
Sec. 18. Notwithstanding the limitation of any other law or regula-
tion to the contrary, any person heretofore or hereafter appointed as
it member of the (.'onunission may receive the compensation author-
ized by this Act to be paid to such member, as well as any retired pay,
retirement compensation, or annuity to which such member may be
entitled on account of previous service rendered to the United States
or District of Columbia governments, subject to section 201 of the
Dual Gurnpensativn Act of 1963.
SECOND PARAGRAPH OF SECTION 2 OF THE ACT OF AUGUST
11, 1950 (64 STAT. 438; D.C. CODE, SEC. 6 -1202)
Not-withstanding the limitation of any law, there may be employed
iii such Office of Civil Defense any person who has been retired from
any of the [Armed Forces] uniformed services of the United States
or any office or position in the Federal or District governments, and
except as hereinafter provided, while so employed in such Office of Civil
Defense any such retired person may receive the compensation
authorized for such employment or the [retired pay,] retirement
compensation or annuity, whichever he may elect, and upon the
termination of its employment. in such Office of Civil Defense,] such
employrnr:nt, he shall be restored to the same status as a retired officer
or employee with the same [retired pay,] retirement compensation [,]
or annuity to which he was entitled before having been employed in
such Office of Civil Defense. While any person who has been retired
from any of the uniformed services of the United States is so employed in
such Office of Civil Defense, he may receive the compensation authorized
for such employment and his retired or retirement pay, subject to section
201 of the Dual Compensation Act of 1963.
SECTION 13(b) OF THE PEACE CORPS ACT (75 STAT. 619;
22 U.S.C. 2512(b))
EXPERTS AND CONSULTANTS
* s
SEC.`. 13. (a)
(b) Service of an individual as a member of the Council authorized
to be established by section 12 of this Act or as an ex ert or consultant
under subsection (a) of this section shall not be considered as service or
employment bringing such individual within the provisions of section
251, 253, or 244 of title 19 of the United States ('ode, or of section 190
of the Revised Statutes :5 IT.S.C. 99), or of any other Federal law im-
posing restrictions, requirements, or penaltiesL in relation to the em-
ployment, of persons. time performance of service, or the payment or
receipt, of compensation in connection with any claim, proceeding, or
matter involving the United States Government, except insofar as
such provisions of law may prohibit any such individualpfrom. receiv-
ing compensation in respect of any particular matter in which such
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 Approved For RelegsSAq~Q
DUAL E ~O / :D9 -~ IW3AqQ R00050 10002-2
individual was directly involved in the performance of such service;
nor shall such service be considered as employment or holding of
office or position bringing such individual within the provisions of
section 13 of the Civil Service Retirement Act, as amended (5 U.S.C.
2263), [section 212 of the Act of June 30, 1932, as amended (5 U.S.C.
59a),] section 872 of the Foreign Service Act of 1946, as amended, or
any other law limiting the reemployment of retired officers or em-
ployees or governing the simultaneous receipt of compensation and
retired pay or annuities, subject of section 201 of the Dual Compensation
Act of 1963.
SECTION 44 OF THE ARMS CONTROL AND DISARMAMENT
ACT (75 STAT. 636; 22 U.S.C. 2584)
CONFLICT OF INTEREST AND DUAL COMPENSATION LAWS
SEC. 44. The members of the General Advisory Committee created
by section 26 of this Act, and the members of the advisory boards, the
consultants, and the individuals of outstanding ability employed
without compensation, all of which are provided In section 41 of this
Act, may serve as such without regard to the provisions of section
281, 283, 284, or 1914 of title 18 of the United States Code, or of sec-
tion 190 of the Revised Statutes (5 U.S.C. 99), or of any other Federal
law imposing restrictions, requirements, or penalties in relation to
the employment of individuals, the performance of services, or the
payment or receipt of compensation in connection with any claim,
proceeding, or matter involving the United States Government, except
insofar as such provisions of law may prohibit any such individual
from receiving compensation from a source other than a nonprofit
educational institution in respect of any particular matter in which
the Agency is directly interested. Nor shall such service be con-
sidered as employment or holding of office or position bringing such
individual within the provisions of section 13 of the Civil Service
Retirement Act (5 U.S.C. 2263), [section 212 of the Act of June 30,
1932, as amended (5 U.S.C. 59a),] or any other Federal law limiting
the reemployment of retired officers or employees or governing the
simultaneous receipt of compensation and retired pay or annuities,
subject to section 201 of the Dual Compensation Act of 1963.
SECTION 626(b) OF PART III OF THE ACT APPROVED
SEPTEMBER 4, 1961 (75 STAT. 451; 22 U.S.C. 2386(b))
SEC. 626. EXPERTS, CONSULTANTS, AND RETIRED OFFICERS.-(a)
(b) Service of an individual as an expert or consultant under sub-
section (a) of this section shall not be considered as service or employ-
ment bringing such individual within the provisions of section 281,
283, or 284 of title 18 of the United States Code, or of section 190 of
the Revised Statutes (5 U.S.C. 99), or of any other Federal law
imposing restrictions, requirements, or penalties in relation to the
employment of persons, the performance of services, or the payment
or receipt of compensation in connection with any claim, proceeding,
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DUAL EMPLOYMENT AND DUAL COMPENSATION
or platter involving the United States Government,, except insofar as
Such provisions of law "Inv prohibit any such individual front receivill`g
coinpensation in respect, of any Palrticular matter ill which such indi-
vidual was directly involved in the perfornianee of such service. Nor
shall such service be considered as enlplovment or holding of office
or position bringing such individual within the Provisions of section
1:3 of the Civil Service Rrtirrnient Act. as amended (5 U.S.C. 2203).
[section 212 of Public Law 72-212, as amended (5 U.S.('. 5911)1]
section S72 of the Foreign Service Act of 1946, as amended, or any
other law limiting the reemployment of retired officers or employees
or governing the sintultaneous receipt of compensation and retired pay
or annuities, subject to section 201 of the Dual Compensation Act of
1963.
SECTION 281OF THE ATOMIC ENERGY ACT OF 1954
168 STAT. 926; 42 L.S.C. 2038)
SEC. 28. APPOINTMENT OF ARMY, NAVY, Olt AIR 1' ORCE OFFICERS.-
Notwithstanding the provisions of any other law, any active officer of
the Army, Navy, or Air Force may serve as Director of the Division
of Military Application without prejudice to his commissioned status
as such offices. Any such officer serving as Director of the Division
of Military Application shall receive in addition to his pay and allow-
ances, including special and incentive pays, an amount equal to the
difference between such pay and allowances, including special and
incentive pays, and the compensation prescribed in section 25. Not.-
witllstanding the provisions of airy other law, any active or retired
officer of the Army, Navy, or Air Force may serve as Chairman of the
Military Liaison Committee without prejudice to his active or retired
status as such officer. [Any such officer servin as Chairman of the
Military Liaison Committee shall receive, in addition to his pay and
allowances, including special and incentive pays, or in addition to his
retired pay-, an amowit equal to the difference between such pay and
allowances, including special curd incentive pays, or between his retired
pay, and the compensation prescribed for the Chairman of the Iilitarv
Liaison Conunittee.] An+1 such active officer serving as Chairman of
the Military Liaison Committee shall receive, in addition to his pay and
allowances, includiny special and incentive pays, an amount equal to the
difference between such pay and allowances, including special and incen-
tive pays, and the compensation fixed for such Chairman. Any such
retired oI cer serving as Chairman of the Military Liaison Committee
shall receive the compensation fixed for such Chairman and his retired
pay, subject to section 201 of the Dual Compensation Act of 1303.
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DUAL EMPLOYMENT AND D A
SECTION 204(d) OF THE NATIONAL AERONAUTICS AND
SPACE ACT OF 1958 (72 STAT. 432; 42 U.S.C. 2474(d))
SEC. 204. (a) *
* * * * * *
(d) Notwithstanding the provisions of any other law, any active or
retired officer of the Army, Navy, or Air Force may serve as Chair-
man of the Liaison Committee without prejudice to his active or re-
tired status as such officer. [The compensation received by any such
officer for his service as Chairman of the Liaison Committee shall be
equal to the amount (if any) by which the compensation fixed by sub-
section (a) (1) for such Chairman exceed This pay and allowances
(including special and incentive pays) as an active officer, or his
retired pay.] Any such active officer serving as Chairman of the
Liaison Committee shall receive, in addition to his pay and allowances,
including special and incentive pays, an amount equal to the difference
between such pay and allowances, including special and incentive pays,
and the compensaton fixed by subsection (a) (1) for such Chairman.
Any such retired officer serving as Chairman of the Liaison Committee
shall receive the compensation fixed by subsection (a) (1) for such Chairman
and his retired pay, subject to section 201 of the Dual Compensation Act
of 1963.
SECTION 3(b) (1) OF THE ACT OF AUGUST 28, 1958 (72 STAT.
1091; PUBLIC LAW 85-850)
SEC. 3. (a) * * *
(b) The Commission shall be composed of eleven members ap-
pointed by the President as follows:
(1) One member, who shall serve as Chairman, and who shall
be a resident from the area comprising the Savannah, Altamaha,
Saint Marys, Apalachicola,-Chattahoochee, and Perdido-Escam-
bia River Basins (and intervening areas) embraced within the
States referred to in the first section of this Act and who shall not,
during the period of his service on the Commission, hold any
other position as an officer or employee of the United States,
except that a retired military officer or a retired Federal civilian
officer or employee may be appointed under this Act without
prejudice to his retired [status, and he shall receive compensa-
tion as authorized herein in addition to his retired pay or annuity,
but the sum of his retired pay or annuity and such compensation
as may be payable hereunder shall not exceed $12,000 in any
one calendar year;] status. A retired Federal civilian officer or
employee appointed under this Act shall receive compensation as
authorized herein in addition to his annuity, but the sum of his
annutt,: and such compensation as may be payable hereunder shall
not exceed $12,000 in any one calendar year. A retired military
officer appointed under this Act shall receive compensation, as
authorized herein and his retired pay, subject to section 201 of the
Dual Compensation Act of .1963;
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SECTION 9 OF THE ACT OF OCTOBER 6, 1917 (40 STAT. 384;
D.C. CODE, SEC. 31-631)
SEC. 9. [That section six of the legislative, executive, and judicial
appropriation Act, approved May tenth, nineteen hundred and sixteen
as amended by the iutval appropriation Act, approved August twenty-
ninth, nineteen hundred and sixteen.] 'section 301 of the Dual Com-
pensation Act of 1963 shall not apply to teachers in the public schools
of the District of Columbia who are also employed as teachers of night
schools and vacation schools.
SECTION 6 OF THE ACT OF MARCH 3, 1925 (43 STAT. 1108),
AS AMENDED BY THE ACT OF JANUARY 27, 1926 (44 STAT.
2; 2 U.S.C. 162; 5 U.S.C. 60)
SEc. 6. Employees of the Library of ('011 CBS, who perform special
functions for tlic performance of which funds have been entrusted to
the board or the librarian, or in Connection with cooperatives under-
takings in which the Library of Congress is engaged, shill not be
subject to the-proviso contained in the Act making tip ropriations for
the legislative, executive, and judicial expenses of the government for
the fiscal year ending.Tune :30, 1918, and for other purposes, approved
March 3, 1017, in Thirty-ninth Statutes at Large, at page 1106; [nor
shall any additional compensation so paid to such employees be con-
strued as it double salnrv under the provisions of section 6 of the Act
making appropriations for tho legislative, executive, and judicial ex-
penses of the Government for the fiscal year ending June 30, 1917 as
amended (Thirt,F-ninth Statutes at Large, page 582)] and section 301
of the Dual f-'ompensation Act of 1963 shall not apply to any additional
compensation so paid to such employees.
ACT OF JULY 1, 1942 (56 STAT. 467; D.C. CODE, SEC. 31-631a)
AN ACT To exempt custodial employees of the District of Columbia Board of
Education from the operation of the provisions of section G of the Legislative,
Executive, and Judicial Appropriation Act approved May 10, 1916
Be it enacted by the Senate and House of Ile rescntatires of the United
States of America in Congress assembled. [That section 6 of the Act
entitled "An Act making appropriations for the legislative, executive,
and judicial expenses of the Government for the fiscal year ending
June 30, 1917", approved May 10, 1916 (39th Stat. 120), and Acts
amendatory thereto,] That section 301 of the Dual Compcnsation .-let
of 1963 shall not apply to the custodial employees who are in the
employ of the Board of Education of the District of Columbia when
such employees are performing work required of them in school
buildings (hiring the time these tuildings are used for nonrecreational
official purposes by any Federal agency or department of the District
of ('olunibia government other than the Board of Education, in
accordance with the rules of the Board of Education governing the
use of school buildings and grounds, including their use for day or
evening schools; and nothing therein contained shall be deemed to
prevent any custodial employee from receiving in addition to his pal,
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DUAL EMPLOYMENT AND DUAL compp PA
salary, or compensation as an employee of the Board of Education
of the District of Columbia any other pay, salary, or compensation
at a rate not in excess of the rate of pay received as an employee of
the Board of Education, for services which may have been rendered
subsequent to May 31, 1941, or which may hereafter be rendered to
any Federal agency or department of the District of Columbia govern-
ment other than the Board of Education, during its use of school
buildings under the jurisdiction of the Board of Education of the
District of Columbia.
1947 (61 `TAT. 400, 74
SECTION 2 OF THE ACT OF JULY U.S.C. 8
33
STAT.
SEC. 2. The Secretary of Commerce is hereby authorized to pay
extra compensation to members of crews of vessels when assigned
duties as instrument observer or recorder, and to employees of other
Federal agencies while observing tides or currents, or tending seismo-
graphs or magnetographs, at such rates as may be specified from time
to time by him and without regard to section 301 of the Dual Compensa-
tion Act of 1963.
15 U.S.C5327 AMENDED (62
SECTION 3 OF THE
286, 74 STAT. 11; 2,
STAT.
3. The Secretary of Commerce is hereby authorized to (a)
appoint employees for the conduct of meteorological investigations in
the Arctic region without regard to the civil service laws and fix their
compensation without regard to the Classification titles Act H and III of
amended (5 U.S.C. 1071 and the following), and
the Federal Employees Pay Act of 1945, as amended (5 U.S.C. 911
and the following), at base rates not to exceed the maximum scheduled
rate for GS-12, and (b) grant extra compensation to employees of
other Government agencies for taking and transmitting meteorological
observations without regard to section 301 of the Dual Compensation
Act of 1963.
SECTION
AND DEFENSE PRACT PRACTICES ACT OVERSEAS
(73
TEACHERS 10(b) PAY THE
STAT. 217; 5 U.S.C. 2358(b))
APPLICABILITY OF CERTAIN EXISTING LAW
SEC. 10. (a) * * *
(b) In the case of any teacher who
(1) is performing services as a teacher at the close of a school
year.
(2) agrees in writing to serve as a teacher for the next school
year, and
(3) is employed in another position in the recess period imme-
diately preceding such next school year, or, during such recess
period, receives quarters, allowances, or additional compensation
referred to in sections 7 and 8 of this Act, or both, as the case
may be,
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4 IYLOY_ME\T AND DUAL COMPENSATION
section (2 of the Act, of July 31, 1894 (5 U.S.C. 62), relative to the
holding of more than one Offee, section 6 of the Act of May 10, 1916
(5 U.S.C. 58 and 59), relative to double salaries, and any other law
relating to the receipt of snore tha.it one salary or the holding of more
than one office] 301 of the Dual Compensation Act of 1963 shall not
apply to such teacher by reason of any such eniployment during a
recess period or any such receipt of quarters, allowances, or additional
compensation, or both, as Lite case may be.
*
SECTION 102 OF CHAPTER 7 OF TITLE 2, CANAL ZONE CODE
(76A STAT. 15)
1022. Exemption of teachers with respect to dual offices and double salaries
[Section 2 of the Legislative, Executive, and Judicial Appropriation
Act, approved July 31, 1894, as amended (28 Stat. 205; 5 U.S.C., see.
62), and section 6 of the Legislative, Executive, and Judicial Appro-
priation An, approved May 10, 1916, as amended (39 Stitt. 120; 5
[T,S.('., sec. 58), do] Section 301 oj tlce Dual Compensation Act of 1963
does not apply to teachers in the public schools of the Canal Zone who
are also employed in night. schools or in vacation schools or programs.
SECTION 23(b) OF TITLE 13, UNITED STATES CODE
23. Additional officers and employees
(at) * * *
(b) In addition to employees of the I)eparttnent of Coiiuuerce.
employees of outer departments and independent offices of the
Government ntay, with the consent of the head of the reSpec tiX e
department or office, he employed and compensated for field work in
connection with the work provided for by law without regard to section
.301 of the T)ttal Compensation Act of 1963.
SUBSECTIONS (a) AND (c) OF SECTION 3335 OF TITLE 39,
UNITED STATES CODE
? 3335. Dual employment and extra duties
(a) The Postmaster General ntav appoint an employee to more
that one position and he shall pay com ensalion at. the rate rovided
by law for each position, without regard to the provisions of sections
5b, 62, 69, and 70 of title 5] sections 63 and 70 of title 5 and section 301
of the Dual Compensation Act (if 1963.
(c) The Postmaster General, with [lie consent. of the Administrator
of General Services, inay appoint custodial employees working under
Cite jurisdiction of the General Services Administration at Federal
buildings occupied in part by the Postal Service to positions in the
Postal Service to perform postal duties in addition to their regular
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DUAL EMPLOYMENT AND DUAL COMPENSATION
duties as custodial employees, and he shall pay compensation to them
at the rate provided by law without regard to [sections 58, 62, 69,
and 70 of title 5] sections 69 and 70 of title 5 and section 301 of the
Dual Compensation Act of 1963.
SECTION, 1763 OF THE REVISED STATUTES (5 U.S.C. 58)
[SEc. 1763. No person who holds an office, the salary or annual
compensation attached to which amounts to the sum of two thousand
five hundred dollars, shall receive compensation for discharging the
duties of any other office, unless expressly authorized by law.]
SECTION 2074 OF THE REVISED STATUTES (25 U.S.C. 50)
[SEC. 2074. No person shall hold more than one office at the same
time under this Title, nor shall any agent, sub-agent, interpreter, or
person employed under this Title, receive his salary while absent from
his agency or employment, without leave of the superintendent, or
Secretary of the Interior; but such absence shall at no time exceed
sixty days.]
ACT OF JULY 27, 1882 (22 STAT. 176)
[AN ACT To authorize the preparation and publication of a classified, analytical,
and descriptive catalogue of all government publications from July fourth,
seventeen hundred and seventy-six, to March fourth, eighteen hundred and
eighty-one.
[Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled, That there be prepared and
published, under the direction of the Joint Committee on Printing, a
classified, analytical, and descriptive catalogue of all publications made
by the authority of the Government of the United States and the pre-
ceding government of the Colonies, and all departments, bureaus, and
offices thereof, from July fourth, seventeen hundred and seventy-six, to
March fourth, eighteen hundred and eighty-one; and upon the request
of the said joint committee, the officers of the Senate and House of
Representatives, and the heads of all the executive departments and of
all the bureaus and offices thereof, shall furnish to said joint commit-
tee all such information and assistance in reference to said publications
as will facilitate or assist in the completion of said work; and the sum
of ten thousand dollars is hereby appropriated for the purposes of this
act which sum may be expended as additional pay or compensation to
any officer or employo of the United States.]
THE SENTENCE IN THE ACT OF FEBRUARY 25, 1885
(23 STAT. 329).
[And hereafter no consul or consul-general shall be entitled to or
allowed any part of any salary appropriated for payment of a secre-
tary or second secretary of legation or an interpreter.]
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SECTION 4395 OF THE REVISED STATUTES AS AMENDED
BY THE ACT OF JANUARY 20, 1888 (25 STAT. 1)
[Si-.'c. 4:395. That there shall be appointed by the President, by and
with the advice and consent of the Senate, a person of scientific and
practical acquaintance with the fish and fisheries to be a Commissioner
of Fish and Fisheries, and he shall receive a salary at the rate of five
thousand dollars a Year, and he shall be removable at. the pleasure of
the President.. Said Commissioner shall not hold any other office or
employment under the authority of the United States or any State.]
JOINT RESOLUTION (NO. 31 OF FEBRUARY 5, 1889
(25 STAT. 1019)
[JOINT RESOLUTION Accepting the invitation of the Imperial German Gov-
ernment to the Government of the United States to become a party to the
International Geodetic Association
[Whereas, the Government of the United States has been invited
by the Imperial German Government to become a party to the Inter-
national Geodetic Association: Therefore,
[Resolved by the Senate and II,)use of dlepre.sentatires o the United
States of America in Congress as.,rmb1td, That the President be, and
he is hereby, requested and authorized to accept said invitation, and
that he is hereby authorized and requested to appoint a delegate, who
shall be an officer of the United States Geodetic and Coast Survey,
to attend the next meeting of said International Geodetic Association,
but no extra salary or additional compensation shall be paid to such
by reason of such attendance.]
SECTION 2 OF THE ACT OF JULY 31, 1894 (28 STAT.!205), AS
AMENDED BY TIIE ACT OF MAY 31, 1924 (43 STAT. 245), BY
SECTION 6 OF THE ACT OF JULY 30, 1937 (50 STAT. 549),
AND BY THE ACT OF JUNE 25, 1938 (52 STAT. 1194), RE-
LATING TO THE HOLDING OF TWO OFFICES (5 U.S.C. 62)
[SEc. 2. That the pay of assistant messengers, firemen, watchmen,
laborers, and charwomen provided for in this Act, unless otherwise
specially stated, shall be as follows: For assistant messengers, firemen,
and watchmen, at the rate of seven hundred and twenty dollars per
annum each; for laborers, at the rate of six hundred and sixty dollars
per annum each, and for charwomen, at the rate of two hundred and
forty dollars per annum each. No person who holds an office the sal-
ary or annual compensation attached to which aniounis to the suns of
two thousand five hundred dollars shall be appointed to or hold any
other office to which compensation is attached unless specially hereto-
fore or hereafter specially authorized thereto by law; but this shall not
apply to retired officers of the Army, Navy, Marine Corps or Coast
Guard whenever they may be elected to public office or whenever the
President shall appoint them to office by and with the advice and
consent of the senate. Retired enlisted men of the Army, Navy,
Marine Corps, or Coast Guard retired for any cause, and retired
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DUAL EMPLOYMENT AND DUAL COMPENSATION
officers of the Army, Navy, Marine Corps, or Coast Guard who have
been retired for injuries received in battle or for injuries or incapacity
incurred in line of duty shall not, within the meaning of this section,
be construed to hold or to have held an office during such retirement.]
THE FIFTH PARAGRAPH OF THE ACT OF FEBRUARY 20, 1895
(28 STAT. 676)
* * * * *
[The compensation of said commissioners shall be fixed by the
Secretary of the Treasury, but the same shall not exceed six dollars
per day and actual traveling expenses: Provided, however, That the
member of'said commissiomappointed'from.the Treasury Department
shall be paid only his actual traveling expenses.].
* * * * * * *
SECTION 7 OF THE ACT OF JUNE 3, 1896 (29 STAT. 235; 5
U.S.C. 63)
[SEC. 7. That section two of the Act making appropriations for
the legislative, executive, and judicial expenses of the Government
for the fiscal year ending June thirtieth, eighteen hundred and ninety-
five, and for other purposes, approved July thirty-first, eighteen
hundred and ninety-four, shall not be so construed as to prevent the
.employment of any retired officer of the Army or Navy to do work
under the direction of the Chief of Engineers of the United States
Army in connection with the improvement of rivers and harbors of
the United States, or the payment by the proper officer of the Treasury
.of any amounts agreed upon as compensation for such employment.]
;SECTION 7 OF THE ACT OF JUNE 28, 1902 (32 STAT. 483)
[SEc. 7. That to enable the President to construct the canal and
works appurtenant thereto as. provided in this Act, there is hereby
created the Isthmian Canal Commission, the same to be composed of
seven members, who shall be nominated and appointed by the Presi-
dent, by and with the advice and consent of the Senate, and who shall
serve until the completion of said. canal unless sooner removed by the
President, and one of whom shall be named as the chairman of said
Commission. Of the seven members of said Commission at least four
of them shall be persons learned and skilled in the science of engineer-
ing, and. of the four at least one shall be an. officer of the United States
Army, and at least one other shall be an officer of the United States
Navy, the said officers. respectively being either upon the active or the
retired list of the Army or of the Navy. Said commissioners shall
each receive such compensation as the President shall prescribe until
the same shall have been otherwise fixed by the Congress. In addi-
tion to the members of said Isthmian Canal Commission, the President
is hereby authori: ed through said Commission to employ in said serv-
ice any of the engineers of the United States Army at his discretion,
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and likewise to employ any engineers in civil life at his discretion, and
any other persons necessary for the proper and expeditious prosecu-
tion of said work. The compensation of all such engineers and other
persons employed under this Act shall be fixed by said Commission
subject to the approval of the President. The official salary of any
officer appointed or employed under this Act shall be deducted from
the amount of salary or compensation provided by or which shall be
fixed under the terms of this Acct, Said Commission shall in all mat-
ters be subject to the direction and control of the President, and shall
make to the President annually and at such other periods as may be
required, either by law or by Clio order of the ,President, full and com-
plete reports of all their actings and doings and of all moneys received
and expended in the construction. of said work and in the performance
of their duties in connection therewith, which said reports shall be by
the President transmitted to Congress. And the said Comnnlission
shall furthermore give to Congress, or either House of Congress, such
information as may at any time be required either by Act of Congress
or by the order of either Ifouse of Congress, The President shall
cause to be provided and assigned for the use of the Commission such
offices as may, with suitable equipment of the same, be necessary
and proper, in his discretion, for the proper discharge of the duties
thereof.]
THE PARAGRAPH OF THE ACT OF MARCH 4, 1909 (35 STAT.
931), RELATING TO THE PAY OF RETIRED ARMY AND
NAVY OFFICERS AND ENLISTED MEN THEN IN THE EM-
PLOY OF THE ISTHMIAN CANAL COMMISSION
[Authority is hereby granted for the payment of salaries and wages
accrued or hereafter earned of retired army and navy officers and
enlisted men now in the employment of the Isthinian Canal Commis-
sion, in addition to their retired pay, where their compensation under
such employment does not exceed two thousancl[five hundred dollars
per annum.]
THE SECOND PARAGRAPH UNDER THE CENTER HEADING
"THE ISTHMIAN CANAL" WITH THE SIDE HEADING
"NATIONAL WATERWAYS COMMISSION:" IN THE ACT
OF AUGUST 5, 1909 (36 STAT. 130)
THY ISTIIMI.%x ('ANAL
[NATIONAL %%ATE1 RAYS Ccmi i `SIO\: Any officer or employee of
the Government heretofore or hereafter employed by the -National
waterways Commission not to exceed three persons at any one time
may receive compensation for suchT'enlpploytnent. from the money
appropriated for said commission, notwithstanding the provisions of
Revised Statutes, sections seventeen hundred and sixty-three, seven-
teen hundred and sixty-four, and seventeen hundred and sixty-five,
and the Act approved July dirty-first, eighteen hundred and ninety-
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DUAL EMPLOYMENT AND DUAL COMPENSATION
four, entitled "An Act making appropriations for the legislative,
executive, and judicial expenses of the Government for the fiscal
year ending June thirtieth, nineteen hundred and five, and for other
purposes," and any other law whatsoever relating to such employ-
ment and compensation; an.d, in addition to the traveling and other
expenses of members of the commission and their employees, the
actual necessary expenses of persons detailed by any department or
bureau of the Government while accompanying said commission on
any inspection trip in the United States or elsewhere may be paid
from the money appropriated for said commission.]
SECTION 12 OF THE ACT OF AUGUST 20, 1912 (37 STAT. 319;
7 U.S.C. 165)
[SEc. 12. That for the purpose of carrying out the provisions of
this Act there shall be appointed by the Secretary of Agriculture from
existing bureaus and offices in the Department of Agriculture, includ-
ing the Bureau of Entomology, the Bureau of Plant Industry, and the
Forest Service, a Federal Horticultural Board consisting of five
members, of whom not more than two shall be appointed from any
one bureau or office, and who shall serve without additional
compensation.]
SECTION 6 OF THE ACT OF MAY 10, 1916 (39 STAT. 120; 5
U.S.C. 58), AS AMENDED BY THE ACT OF AUGUST 29, 1916
(39 STAT. 582; 5 U.S.C. 59)
[SEc. 6. That unless otherwise specially authorized by law, no
money appropriated by this or any other Act shall be available for
payment to any person receiving more than one salary when the
combined amount of said salaries exceeds the sum of $2,000 per
annum, but this shall not apply to retired officers or enlisted men of
the Army, Navy, Marine Corps, or Coast Guard., or to officers and
enlisted men of the Organized Militia and Naval Militia in the several
States, Territories, and the District of Columbia: Provided, That no
such retired officer, officer, or enlisted man shall be denied or deprived
of any of his pay, salary, or compensation as such, or of any other
salary or compensation for services heretofore rendered, by reason
of any decision or construction of said. section six.]
SECTION 8 OF THE ACT OF MARCH 21, 1918 (40 STAT. 455--456)
[SEC. S. That the President may execute any of the powers herein
and heretofore granted him with relation to Federal control through
such agencies as he may determine, and may fix the reasonable
compensation for the performance of services in connection therewith,
and may avail himself of the advice, assistance, and cooperation
of the Interstate Commerce Commission and of the members and
employees thereof, and may also call upon any department, com-
mission, or board of the Government for such services as he may
deem expedient. But no such official or employee of the United
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States shall receive any additional compensation for such service&
except as now permitted by law.]
SECTIONS 3 AND 4 OF THE WAR FINANCE CORPORATION
ACT (40 STAT. 507; 15 U.S.C. 333 AND 334)
[SEC. 3. That the management of the Corporation shall be vested'
in a board of directors, consisting of the Secretary of the Treasury,
who shall be chairman of the board, and four other persons, to be
appointed by the President of the United States, by and with the
advice and consent of the Senate. No director, officer, attorney,
agent, or employee of the Corporation shall in any manner, directly
or indirectly, participate in the determination of any question
affecting his personal interests, or the interests of any corporation,
partnership, or association, in which he is directly or indirectly
interested; and each director shall devote his time, not otherwise
required by the business of the United States, principally to the
business of the Corporation. Before entering upon his duties, each
of the four directors so appointed, and each officer, shall take an
oath faithfully to discharge the duties of his office. Nothing con-
tained in this or any other Act shall be construed to prevent the
a porntment as a director of the Corporation of any officer or em-
ployeo under the United States or of a director of a Federal reserve
bank.
[Of the four directors so appointed, the President of the United
.Mates shall designate two to serve for two years, and two for four
years; and th rea.fter each director so appointed shall serve for four
years. Whenever a vacancy shall occur among the directors so
appointed, the person appointed director to fill any such vacancy
shall hold office for the unexpired Merin of the member whose place
he is selected to fill. Any dector shall be subject to removal by
the President of the United States. Three members of the board
of directors shall constitute a quorum for the transaction of business.
[SEC. 4. That the four directors of the Corporation appointed as
hereinbefore provided shall receive annual salaries payable monthly
of $12,000. Any director receiving from the United States any
salary or compensation for services shall not receive as salary from
the Corporation any amount which, together with any salary or
compensation received from the United States, would make the
total amount paid to him by the United States and by the Corpor-
ation exceed $12,000.]
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DUAL EMPLOYMENT AND DUAL COMPENSATION
THE LAST PARAGRAPH UNDER THE HEADING "DISTRICT
OF COLUMBIA." AND UNDER THE SUBHEADING "PUBLIC
SCHOOLS." CONTAINED IN THE FIRST SECTION OF THE
ACT OF JULY 8, 1918 (40 STAT. 823; D.C. CODE, SEC. 31-631)
DISTRICT OF COLUMBIA
*
PUBLIC SCHOOLS
* * * *
[Section six of the legislative, executive, and judicial appropria-
tion Act, approved May tenth, nineteen hundred and sixteen, as
amended, shall not apply to employees of the community center de-
partment of the public schools of the District of Columbia.]
THE NINTH PARAGRAPH UNDER THE HEADING "DISTRICT
OF COLUMBIA." AND UNDER THE SUBHEADING "PUBLIC'
SCHOOLS." CONTAINED IN THE FIRST SECTION OF THE
THIRD DEFICIENCY ACT, FISCAL YEAR 1920 (41 STAT.
1017; D.C. CODE, SEC. 31-631)
DISTRICT OF COLUMBIA.
PUBLIC SCHOOLS.
* * * * * * *
[Section 6 of the Legislative, Executive, and Judicial Appropria-
tion Act approved May 10, 1916, as amended, shall not apply to em-
ployees of the school garden department of the public schools of the
District of Columbia.]
THE PROVISO CONTAINED IN THE PARAGRAPH",UNDER THE
HEADING "BUREAU OF THE BUDGET" IN THE ACT OF
FEBRUARY 17, 1922 (42 STAT. 373; 5 U.S.C. 64)
BUREAU OF THE BUDGET
Director, $10,000: [Provided, That section 2 of the Act making
appropriations for the legislative, executive, and judicial expenses
of the Government for the fiscal year ending June 30, 1895, and for
other purposes, approved July 31, 1894, shall not be construed as
having application to retired officers of the Army, Navy, Marine Corps,
or Coast Guard who may be appointed to the offices created by section
207 of the Budget and Accounting Act, 1921, approved June 10,
1921, within the meaning of precluding payment to such officers of
the difference in pay prescribed for such offices and their retired pay;]
Assistant Director, $7,500; for all other necessary expenses of the
bureau, including compensation of attorneys and other employees
in the District of Columbia, printing, binding, telegrams, telephone
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service, law books, books of reference, periodicals, stationery, furni-
ture, office equipment, other supplies, travel n expenses, street car
fares, per diem in lieu of subsistence not exceeding $4 for officers and
enlployecs while absent from the scat of government on official duty,
$137,300; in all $154,500.
SECTION 212 OF THE ACT OF JUNE 30, 1932 (47 STAT. 406),
AS AMENDED BY SECTION 3 OF THE ACT OF JULY 15, 1940
(54 STAT. 761)x, BY THE ACT OF FEBRUARY 20, 1954 (68
STAT. 18), BY SECTION 2 OF THE ACT OF AUGUST 4, .1955
(69 STAT. 498), BY SECTION 2201(11) OF THE ACT OF JUNE
17, 1957 (71 STAT. 158), AND BY SECTION 13(d) OF THE
ACT OF SEPTEMBEI{ 2, 1958 (72 STAT. 1264)
[LIMITATIONS ON AMOUNT OF RETIRED PAY
[Sac. 212. (a) After the date of the enactment of this Act, no
person holding a civilian office or position, appointive or elective,
under the United States Government. or the municipal government
of the District of Columbia or under any corporation, the majority
of the stock of which is owned by the United States, shall be entitled,
during the period of such incumbency, to retired pay from the United
States for or on account of services as a commissioned officer in any
of the services mentioned in the Pay Adjustment Act of 1922 [U.S.C.,
title 371, at a rate in excess of an amount which when combined
with the annual rate of compensation from such civilian office or
position, makes the total rate from both sources more than $10,000;
and when the retired pay amounts to or exceeds the rate of $10,000
per annum such person shall be entitled to the Slav of the civilian
office or position or the retired pay, whichever he~ play elect. As
used in this section, the term "retired pay" shall be construed to
include credits for all service that lawfully may enter into the coni-
pu tation thereof.
[(b) This section shall not apply to any person whose retired pay,
plus civilian pay, amounts to less than 810,000: Provided, That this
section shall not apply to any regular or emergency conunissioned
officer retired for disability (1) incurred in combat. with an enemy of
the United States, or (2) caused by all instrumentality of war and
incurred in line of duty during a period of war (as that tern is used
in chapter 11 of title 38, United States Code).]
ACT OF SEPTEMBER 13, 1940 (54 STAT. 885)
[JOINT RESOLUTION To authorize Jesse 11. Jones, Federal Loan Adminis-
trator, to be appointed to, and to perform the duties of, the Office of Secretary
of Commerce
[Resolved by the Senate and 1-louse of Representatives of the United
States of America in Congress assembled, 't'hat notwithstanding any
provision of law to the contrary, Jesse 11. Jones, Federal Loan Admin-
istra.tor, may continue in such office and be appointed to, in the
manner now provided by law, and may exercise the duties of the
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Office of Secretary of Commerce: Provided, That the total compen-
sation to be paid him as Secretary of Commerce and as Federal Loan
Administrator shall be that provided by law for the Secretary of
Commerce.]
ACT OF MARCH 29, 1945 (59 STAT. 38)
[JOINT RESOLUTION Providing for the employment of Government employ-
ees for folding speeches and pamphlets, house of Representatives
[Resolved by the Senate and Ilouse of Representatives of the United
States of America in Congress assembled, That notwithstanding the
provisions of the Act of May 10, 1916, as amended by the Act of
August 29, 1916, the Doorkeeper of the House of Representatives is
hereby authorized during the Seventy-ninth Congress to employ,
whenever necessary, the services of Government employees for fold-
ing speeches and pamphlets at.the prevailing rates provided by law.]
ACT OF AUGUST 10, 1946 (60 STAT. 978), AS AMENDED BY
THE ACT OF OCTOBER 29, 1951 (65 STAT. 662)
[AN ACT To authorize the Veterans' Administration to appoint and employ
retired officers without affecting their retired status, and for other purposes
[Be it enacted by the Senate and Mouse of Representatives of the
United States of America in Congress assembled, That notwithstand-
ing section 2 of the Act of July 31, 1894 (28 Stat. 205), as amended
(5 U.S.C. 62), or section 6 of the Act of May 10, 1916 (39 Stat. 120),
as amended (5 U.S.C. 58, 59), the Administrator of Veterans' Affairs
may appoint to, and employ in, any civilian office or position in the
Veterans' Administration, and pay, any retired commissioned officer,
or retired warrant officer, of the Army, Navy, Marine Corps, Coast
Guard, Coast and Geodetic Survey, and Public Health Service. The
retired status, office, rank, and grade of retired commissioned officers,
or retired warrant officers, so appointed or employed and, except as
provided in section 212 of the Act of June 30, 1932 (47 Stat. 406), as
amended (5 U.S.C. 59a), any emolument, perquisite, right, privilege,
or benefit incident to or arising out of any such status, office, rank, or
grade, shall be in no way affected by reason of such appointment to
or employment in, or by reason of service in, or acceptance or holding
of, any civilian office or position in the Veterans' Administration or
the receipt of the pay thereof.
[SEC. 2. The authority to employ retired commissioned officers or
retired warrant officers contained in section 1 of this Act shall be
effective for a. period of 10 years from the date of enactment.]
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44 DUAL EMPLOYMENT AND DUAL COMPENSATION
THE FIFTH SENTENCE OF SECTION 3 OF THE RECONSTRUC-
TION FINANCE CORPORATION ACT, AS IN EFFECT ON
JUNE 30, 1947 (47 STAT. 6), AND AS CONTINUED BY SEC-
TION 3(a) OF SUCH ACT, AS AMENDED (61 STAT. 203, 62
STAT. 262; 15 U.S.C. 603(a))
SEC. 3. * * *
[Nothing contained in this or in any other Act shall be construed to
prevent the appointment and compensation as an employee of the
corporation of any officer or employee of the United States in any
board, commission, independent establishment, or executive depart-
ment thereof.]
SECTION 2 OF THE ACT OF JULY 11, 1947 (61 STAT. 311; D.C.
CODE, SEC. 4-183)
[SEC. 2. Notwithstanding the limitations of existing law, the said
Commissioners may ,appoint to, and employ in, the position of director
of such band, any retired officer of the I. ailed States Army, Navy,
Marine Corps, or Coast Guard, and such retired officer shall be entitled
to receive, in addition to his retired pay, the compensation authorized
by this Act to be paid to such director, such additional compensation
to be payable from District of Columbia appropriations.]
SECTION 3 OF THE ACT OF APRIL 21, 1948, AS AMENDED
(7 U.S.C. 438)
[SEC. 3. Until December 31, 1949,1 the Secretary of the Army may
detail to the Department of Agriculture such military personnel, in-
cluding officers in the Veterinary Corps of the Medical'Department, as
he may determine with the Secretary of Agriculture to be desirable to
effectuate the purposes of this Act or to safeguard the interest of the
United States. Notwithstanding the limitations contained in existing
law, retired officer personnel of the Department of the Army, if
employed by the Department of Agriculture for the purposes of this
Act only, way receive in addition to their retired pay civilian salary
to the extent that the total from both sources does not exceed the pay
and allowances received by such ersans in the permanent grade last
held by them prior to retirement.
SECTION 9 OF THE ACT OF JUNE 4, 1948 (62 STAT. 342; D.C.
CODE, SEC. 2--1709)
SEC. 9. The Armory Board is authorized to employ and fix the
compensation and terns of it manager and such personnel as may be
necessary in connection with the operation of the armory for the
secondary- purl-ses of thi. Act without regard to the provisions of
the civil-service laws and Classification Act of 1923, as amended [, and
Tha authority of suction 3 was conttuued until December 31, 1919, by Department of Agriculture Apps
priatlon Act, 1950.
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DUAL EMPLOYMENT AND DUAL COMPENSATION 43
without regard to any prohibition against double salaries contained in
any other law]. Under the direction of the Board and with written
authorization signed by the members thereof, said manager may
exercise such of the powers vested in the Board by section 6 of this
Act as the Board shall determine.
SECTION 5(f) OF THE CENTRAL INTELLIGENCE AGENCY
ACT OF 1949, AS AMENDED (65 STAT. 89, 72 STAT. 337;
50 U.S.C. 403f(f))
GENERAL AUTHORITIES
SEC. 5. In the performance of its functions, the Central Intelligence
Agency is authorized to-
* * * * * * *
[(f) (1) Notwithstanding section 2 of the Act of July 31, 1894
'(28 Stat. 205), as amended (5 U.S.C.A. 62), or any other law pro-
hibiting the employment of any retired commissioned or warrant
officer of the armed services, the Agency is hereby authorized to
employ and to pay the compensation of not more that fifteen retired
officers or warrant officers of the armed services while performing
service for the Agency, but while so serving such retired officer or
warrant officer will be entitled to receive only the compensation of
his position with the Agency, or his retired pay, whichever he may
,elect.
[(2) Nothing in this section shall limit or affect the appointment
-of and payment of compensation to retired officers or warrant officers
not presently or hereafter prohibited by law.]
SECTION 103 OF THE AMERICAN-MEXICAN TREATY ACT
OF 1950 (64 STAT. 847)
SEC. 103. There are hereby authorized to be appropriated to the
Department of State for the use of the Commission, out of any money
in the Treasury not otherwise appropriated, such sums as may be
necessary to carry out the provisions of the Treaty of February 3,
1944, and other treaties and conventions between the United States
,of America and the United Mexican States, under which the United
States Section operates, and to discharge the statutory functions and
duties of the United States Section. Such sums shall be available for
construction, operation and maintenance of stream gaging stations,
and their equipment and sites therefor; personal services and rent in
the District of Columbia and elsewhere; services, including those of
-attorneys and appraisers, in accordance with the provisions of Sec-
tion 15 of the Act of August 2., 1946 (5 U.S.C., see. 55a), at rates for
individuals not in excess of $100 per diem and the United States Com-
missioner is hereby authorized, notwithstanding the provisions of any
other Act, to employ as consultants by contract or otherwise without
I Section 5(f) of the Central Intelligence Agency Act was formerly section 6(f) of such Act and was
redesignated as section 6(f) of such Act by section 21(b)(2) of the Government Employees Training Act
(72 Stab. 337; Public Law 86-507).
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DUAL EMPLOYMENT AND DUAL COMPENSATION
regard to the Classification Act of 1949, as amended, and the civil
service laws and regulations, retired personnel of the Armed Forces
of the United States, who shall not be required to revert to an active
status [, and who shall be entitled to receive, as compensation for such
temporary service, the difference between the rates of pay established
therefor and their retired pay during the period or periods of such
temporary employnment]; travel expense, including, in the discretion of
the Commissioner, expenses of attendance at meetings of organiza-
tions concerned with the activities of the Commission which may be
necessary for the efficient discharge of the responsibilities of the Com-
mission; hire, with or without personal services, of work animals, and
animal-drawn and motor-propelled (including passenger) vehicles
and aircraft and equipment.; acquisition by donation, purchase, or
condemnation, of real and personal property, including expenses of
abstracts, certificates of title, and recording fees; purchase of ice and
drinking water; inspection of equipment, supplies and materials by
contract or otherwise; drilling and testing of foundations and dam-
sites, by contract if deemed necess ; payment for official telephone
service in the field in case of ofcia. telephones installed in private
houses when authorized under regulations established by the Commis-
sioner; purchase of firearms and ammunition for guard purposes; and
such other objects and purposes as may be permitted by laws appli-
cable, in whole or in part, to the United States Section: Provided,
That, when appropriations have been made for the commencement or
continuation of construction or operation and maintesiance of any such
project, the United States Commissioner, notwithstanding the provi-
sions of sections 3679, 3732, and 3733 of the Revised Statutes or any
other law, may enter into contracts beyond the amount actually appro-
priated for so much of the work on any such authorized project as
the physical and orderly sequence of construction makes necessary,
such contracts to be subject to and dependent upon future appropria-
tions by Congress.
SECTION 401(a) OF THE FEDERAL CIVIL DEFENSE ACT OF
1950, AS AMENDED (64 STAT. 1254; 50 U.S.C. APP. 2253(a))
ADMINISTRATIVE AUTHORITY
SEc. 401. For the Ipurpose of carrying out his powers and duties
under this Act, the Administrator is authorized to- -
(a) employ civilian personnel for duty in the United States,
including the District of Columbia, or elsewhere, subject to the
civil-service laws, and to fix the compensation of such personnel
in accordance with the Classification Act of 1949, as amended;
[and, notwithstanding the provision, of any other law, except
those imposing restrictions upon dual compensation, employ,
in a civilian capacity, with the approval of the President, not to
exceed twenty-five retired personnel of the armed services on a
full- or part-time basis without loss or reduction of or prejudice
to their retired status;]
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SUBPARAGRAPH (g) OF THE THIRD PARAGRAPH OF THE
ACT OFAUGUST 5, 1953 (67 STAT. 366), AS AMENDED BY
THE ACT OF AUGUST 9, 1955 (69 STAT. 590), AND BY THE
ACT OF AUGUST 28, 1957 (71 STAT. 457)
[(g) Notwithstanding section 2 of the Act, of July 31, 1894, as
amended (5 U.S.C. 62), section 212 of the Act of June 30, 1932, as
amended (5 U.S.C. 59a) or any other Federal law, one retired offi-
cer of the services mentioned in the Career Compensation Act of
1949 may be appointed to any civilian office or position in the Cor-
regidor-Bataan Memorial Commission created by the Act of August 5,
1953, as amended (36 U.S.C. 426), fora period of not to exceed five
.years, and receive retired pay as a retired officer and civilian compen-
sation concurrently. The retired status, office, rank, or grade such
,retired officer may occupy or hold, or any emolument, prerequisite,
right, privilege, or benefit, incident to or arising out of such status,
office, rank or grade, shall be in no way affected by reason of such
appointment to or employment in such Commission.]
SECTION 12 OF THE DISTRICT OF COLUMBIA SALARY ACT OF 1955 (69 STAT. 9; D .C. CODE, SEC. 11541)'
[SEc. 12. Notwithstanding any law or regulation to the contrary,
the Board, on the written recommendation of the Superintendent of
.Schools, may employ not more than fifteen retired members of the
armed services of the United States as teachers of military science
and tactics in the public high schools of the District of Columbia, and
such teachers so employed shall be entitled to compensation in accord-
.ance with the salary schedules in section 1 of this Act, in addition to
their retired pay and allowances.]
SECTION 8 OF THE 'ACT 'OF SEPTEM1 I R 7, 1957 (71 STAT.
028;:367 U.S.C..748)
[SEC. 8. Notwithstanding section of the Act of July 31, 1894
.(28 Stat. 205), as amended (5 U.S.C. 62), or section 6 of the Act of
May 10, 1916 (39 Stat. 120), as amended (5 U.S.C. 58, 59), the
,Chairman of, the. Commission inayy ., appoint to, and, employ ; in, any
civilian office or position ip., the Commission, and pay, any, retired
commissioned officer, or retired warrait _ officer, of, the Army, Navy,
Marine Corps, Coast Guard, Coast; and Geodetic Survey, or-Public
Health Service, . The retired status, o ce, . ra k and grade of , retired
commissioned officers or retired warrant officers, so appointed or
employed and, ,except as.provided, .:n se ction 212 of the Act of June
.30, 1932 (47 Stat. 406), as amended (5 U.S.C. 59a), any emolu-
ment, perquisite, right, privilege, or benefit incident to or arising out
of any such status, office, rank, or grade, shall be in no way affected
by reason of such appointment to or employment in, or by reason of
service in, or acceptance or holding of, any civilian office or position
in the Commission or the receipt of the pay thereof.]
*
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SECTION 203(b)(11) OF THE NATIONAL AERONAUTICS AND
SPACE ACT OF 1958 (72 STAT. 431; 42 U.S.C. 2473(b)(11))
FUNCTIONS OF THE ADMINISTRATION
SEC. 203. (a) * * *
(b) In the performance of its functions the Adininistrirtiou is
authorized-
[(11) to employ retired conunissioned officers of the armed
forces of the United States and compensate them at the rate estab-
lished for the positions occupied by them within the Adminis-
tration, subject only to the limitations in pay set forth in section
212 of the let of June 30, 1932, as amended (5 U.S.C. 59a);]
* * *
SECTION 626(c) OF THE ACT OF SEPTEMBER 4, 1961
(75 STAT. 451; 22 U.S.C. 2386(c))
SEc. 62G. E%PERT.3, CONSULTANTS, AND RETIRED OFFICERS.--(a)
* * *
* *
[(c) Notwithstanding section 2 of the Act of July 31, 1894, as
amended (5 U.S.C. 62), any retired officer of any of the services
mentioned in the Career Compensation Act of 1949. as amended (37
U.S.C. 231 et seq.), may hold any office or appointment under this
Act, but the compensation of any such retired officer shall be subject
to the provisions of section 212 of Public Law 72-212, as amended.].
SECTION 201(d) OF CHAPTER 7 OF TITLE 2, CANAL ZONE
CODE (76A STAT. 21)
f 201. Compensation of persons In military, naval, or Public Health Service who
serve Canal Zone Government or Panama Canal Company
(a)
[(d) In the case of persons retired as members of a regular com-
onent of the armed forces or the Public Health Service of the United
States who are appointed to or employed in positions in the Canal
Zone Government or the Panama Canal Company, the amount of'
their retired pay shall be deducted from the amount of their civilian
salary or compensation. This subsection does not require the deduc-
tion of the retired pay of any warrant officer or enlisted man.]
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DUAL EMPLOYMENT AND DUAL COMPENSATION 47
SECTION 507 OF THE DEPARTMENT OF DEFENSE APPRO-
PRIATION ACT, 1964 (77 STAT. 264; PUBLIC LAW 88-149)
SEC. 507. Appropriations for the Department of Defense for the
current fiscal year shall be available for: (a) donations of not to
exceed $25 to each prisoner upon each release from confinement in
military or contract prison and to each person discharged for fraudu-
lent enlistment; (b) authorized issues of articles to prisoners, appli-
cants for enlistment and persons in military custody; (c) subsistence
of selective service registrants called for induction, applicants for
enlistment, prisoners, civilian employees as authorized by law, and
supernumeraries when necessitated by emergent military circum-
stances; (d) reimbursement for subsistence of enlisted personnel
while sick in hospitals, (e) expenses of prisoners confined in non-
military facilities; (f) military courts, boards, and commissions; (g)
utility services for buildings erected at private cost, as authorized by
law, and buildings on military reservations authorized by regulations
to be used for welfare and recreational purposes; (h) exchange fees,
and losses in the accounts of disbursing officers or agents in accord-
ance with law; (i) expenses of Latin-American cooperation as au-
thorized ' for the Navy by law (10 U.S.C. 7208) ; and (j) expenses of
apprehension and delivery of deserters, prisoners, and members
absent without leave, including payment of rewards of not to exceed.
$25 in any one case [: Provided, That section 212 of the Act of June 30,
1932 (5 U.S.C. 59a), shall not apply to retired military personnel on
duty at the United States Soldiers' Home].
SECTION 4103(b) OF TITLE 38, UNITED STATES CODE
? 4103. Appointments and compensation
(a) * * *
(b) The Chief Medical Director shall be the Chief of the Depart-
ment of Medicine and Surgery and shall be directly responsible to
the Administrator for the operations of the Department. He shall
be a qualified doctor of medicine, appointed by the Administrator.
'[Section 62 of title 5 of the United States Code shall not apply to any
individual appointed Chief Medical Director before January 1, 1964;
however, section 59a of title 5 shall apply, in accordance with its,
terms, to any such individual.] During the period of his service as
such, the Chief Medical Director shall be paid a salary of $21,050 a.
year.
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88TH CONGRESS HOUSE OF REPRESENTATIVES REPORT
1st Session No. 890
DUAL COMPENSATION ACT
NOVEMBER 7, 1968 -Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. MURRAY, from the Committee on Post Office and Civil Service,
submitted the following
REPORT
[To accompany H.R. 7381]
The Committee on Post' Office and Civil Service, to whom was
referred the bill (H.R. 7381) to simplify, modernize, and consolidate
the laws relating to the employment of civilians in more than one
position and the laws concerning the civilian employment of retired
members of the uniformed services, and for other purposes, having
considered the same, report favorably thereon with amendment and
recommend that the bill do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert the part printed
in italic.
The amendment proposed by the committee strikes out all after,
the enacting clause and inserts a substitute text which is set forth in
italic type in the bill, as reported. A statement of the purpose and
effect of the amendment is contained in this report under the heading
"Explanation of the Bill, As Reported."
PURPOSES
The general purposes of this legislation are to aid the Federal
Government in obtaining the best qualified people available for hard
to fill civilian positions; to provide reasonably uniform and fair treat-
ment for retired military personnel with respect to their employment
in Federal civilian positions; to provide appropriate safeguards so
that Federal civilian employment of retired military personnel will
not grant such personnel unfair advantage over civilian employees
or unduly hamper career opportunities for civilian employees; and
99-006-63-1
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to consolidate and simplify the present, numerous and confusin stat-
utes on dual compensation and dual employment in the Federal
Government.
STATEMENT
This legislation is the outcome of more than 8 years of intensive
studies and discussion within the executive branch, appropriate com-
mittees of the Congress, and representatives of employee, veterans,
and retired military personnel organizations.
The conflicting and various approaches recommended by the
organizations and by the administration were presented to the House
Post Office and Civil Service Committee during 7 days of public
hearings. The many diverse views clearly show that it would be
impossible to follow completely the approach advocated by any one
group.
The committee believes that the reported bill to represent overall
a fair and workable approach which most nearly meets the needs of
the public; interest and the desire and needs of the veterans, military
retirees, and civilian employee organizations.
POLICY FOR DUAL EMPLOYMENT AND DUAL COMPENSATION.
dministrative recommendation
The bill carries out three of the four major policy criteria
recom-
}
mended by the administration as necessary for dual-employment and
dual-compensation laws. The fourth policy criteria is adopted in
part.
The policy criteria are set forth below.
(1) The policy should be to codify all existin = dual compensation
and dual-employment laws into one law whichi will be relativel
simple to interpret and administer and which will eliminate the. hard-
slii s caused individuals as a result of inadvertent, good faith niis-
unierstandings of the application of the law.
(2) The policy should make it possible for the Government to
recruit any retired military person who possesses scarce skills needed
for Government prograrns.
(3) The policy should protect career civilian employees from advan-
tages enjoyed by retired military personnel solely as a result of niilit ry
service- such as, for example, the advantage of veterans preference in
reductions in force enjoyed by most military retirees.
(4) The policy should provide for equitable treatment of all retired
military personnel, whether Regular or Reserve, officer or enlisted.
Summary of committee action..
The committee action on the dual-compensation and dual-employ-
ment criteria described above may be summarized as set forth below.
(1) The bill will repeal existing statutes on dual compensation and
dual employment as recommended in the first policy criteria and pro-
vide a single statute setting forth clearly the policy policy on
dual compensation and dual employment.
(2) In connection with policy No. (3) above, the. bill will remove the
personnel over career
unjust advantages enjoyed by retired military
civilian personnel in reductions in force. Also, a more realistic method
will be provided for counting military service for annual leave purposes.
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DUAL. COMPENSATION ACT 3
No change is made in the veterans preference benefits for retired
military personnel under section 2 of the Veterans Preference Act
of 1944 (5 U.S.C. 851) or in the present method of crediting military
1 service for annuity purposes under the Civil Service Retirement Act
(5 U.S.C. 2251 and following).
Restrictions and controls are.included in sections 204 and 205 of the
bill to assure competitive examinations where practicable in connection
with the appointment of a retired member to a civilian office in the
competitive civil service and to require a delay of 180 days after
retirement when such retirees are to be appointed to a civilian office
in the Department of Defense.
(3) The committee has adopted the second policy and part of the
fourth policy by eliminating the statutory restriction on employment
by the Federal Government of retired Regular officers, the only group
of military retirees still subject to the office-holding restrictions of
section 2 of the act of July 31, 1894, as amended (5 U.S.C. 62). Such
officers, however, will have their retired pay reduced; but the status
quo of retired reservists and enlisted men will not be 11 ---ancl
.e ~~7o_~o_receive Full civilian compensation and
the'-w ill con mue to _ ~^
full itary'retired pay
Thecommittee also adopted a standard policy on dual employment
of civilian employees. The bill will limit civilian employees to the
equivalent of one full-time job and part-time civilian employees to a
combination of part-time positions equaling one full-time position.
Safeguards
The committee recognizes that there are those who feel that this
bill represents an excessive and untimely reversal of longstanding
legislative polity; particularly in regard to those provisions which
repeal the existing laws relating to limitations on dual employment
and dual compensation.
There is no dispute that abuses have crept into Federal multiple-
office holding. However, a review of the legislative history of the
major dual office-holding prohibition of the 1894 act and the dual-
compensation prohibition of the 1916 act, each of which was enacted
as a part of an appropriation act, shows that the abuses which gave
rise to the prohibitions were based on a very few cases. Moreover,
the criteria used in those acts' such as $2,500 in the 1894 act and
$2,000 in the 1916 act-would result in absolute prohibition under
today's rates of compensation except for the fact that many excep-
tions to the prohibitions have been granted by legislation.
The committee is convinced that this legislation does contain
adequate safeguards to replace the provisions of law which are re-
pealed by section 402 of the bill, as reported. Sections 204 and 205,
relating to the restrictions on appointing retired military personnel,
will assure that the needs and requirements of the Government will be
the primary basis for determining the propriety of employing retired
military personnel. Moreover, section 301 will limit employees of
the Government to compensation for one full-time civilian office,
unless an exception is granted by the U.S. Civil Service Com.missioni
on the basis of the Government employment needs.
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The current situation
There are over 40 different laws and around 200 separate Comp-
troller General decisions relating either to the employment of retired
military personnel in Federal civilian positions or to the employment
of a civilian in two different Federal positions. Only a very few
experts in Government completely understand these laws and decisions
and, unfortunately, they cannot be present at all the places and on
all the occasions where decisions on appointments and other matters
involving these laws must be made.
Three of these forty or more laws are basic and have Government-
wide application.
The act of July 31, 1894, which is commonly referred to as the
dual employment or dual office-holding statute, is the earliest of these
three basic laws. It provides, briefly, that no person may hold two
-offices if the salary attached to either is $2,500 or more per annum.
This act applies both to the employment in civilian positions of
retired military officers and to the holding of two different civilian
positions. Retired military personnel of the regular components
are considered to hold office for purposes of this statute. Retired
reservists, on the other hand, are not.
In 1894, when this particular law was passed, $2,500 was a fairly
considerable sum of money. Members of Congress then received
$5,000 a year. Assistant secretaries of Cabinet departments were
generally paid between $3,500 and $4,500 a year. Chief clerks of
departments and chiefs of major divisions, most of whom would
be in the higher grades of the Classification Act today, were paid
$2,500 a year.
A retired ma or with 30 years of service in 1894 would have been
retired at slightly over $2,500 a year, and, of course, a major in 1894
held a higher relative military rank than a major of today. There
were at that time a total of only 390 Army and Navy retired officers
of the rank of major or lieutenant commander and above. This was,
theretore, the only group of retired military personnel actually pro-
hibited from holding civilian office by this law when it was passed;
other retired officers could accept Federal civilian positions paying
less than $2,500 a year.
By reason of statutory exemptions enacted since 1894, more than
1,100 retired officers of the rank of ma or or lieutenant commander
and above an currently employed as civilian employees in the Depart-
ment of Defense.
Incidentally, the only exceptions to this law when it was passed
were for retired officers who were either elected to public office or
appointed by the President subject to Senate confirmation.
In 1924, when increased wages and retired pay had the effect of
bringing all officers and some enlisted men under the practical opera-
tion of the $2,500 ceiling, an amendment was passed to except all
retired enlisted men (not including warrant officers) and those officers
retired for disability incurred in line of duty.
These are still the only exceptions specifically listed in the basic
statute. Numerous other exceptions, however, have arisen from other
statutes and from interpretations of the courts and the Comptroller
General. Out of 40,000 military retirees during fiscal year 1963, less
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DUAL COMPENSATION ACT
than 4,200 were subject to the dual employment prohibition of the
1894 act.
The act of 1916, the second of the basic dual-compensation acts,
applies to the holding of two civilian Government positions. This
law provides that no person may receive two salaries when the com-
bined rate exceeds the sum of $2,000 per annum. Because of this
law's restrictive provisions, many agencies have had to go to Congress
to obtain special statutory exemptions.
The act of 1932, the third of the basic dual-compensation acts,
applies only to regular officers and to certain "temporary" officers
who are, in either case, retired for "noncombat" disability. The act,
as amended in 1956, provides that such officers may not receive retired
pay it it would result in their receiving more than $10,000 per year in
combined retired pay and salary. If the military retired pay alone is
$10,000 or more, the officer may elect either the retired pay or the
salary of the civilian position. If the military pay is less than $10,000
he may receive the full salary of his civilian position, but his retired
pay is reduced as necessary to bring the combined sum within the
$10,000 limit.
Officers who are retired for disability "incurred in combat with an
enemy of the United States or caused by an instrumentality of war
in time of war" are excepted from this $10,000 limitation. Retired
Reserve officers were considered to be subject to this act until the
Court of Claims, in a series of decisions beginning in 1954, held that
they were exempt by virtue of other legislation.
All three of these acts may have been quite reasonable at the time
they were enacted. Because of changing economic and employment
conditions, however, the dollar limitations set in these laws have long
since become obsolete, in many cases depriving the Government of
the services of highly trained retired military personnel. Numerous
exceptions to these laws have been made on a piecemeal basis in an
attempt to meet this situation, with the result that, at the present
time, the legal hodgepodge is extremely difficult to understand, to say
nothing of the impossibility of applying the laws equitably.
From the standpoint of good administration alone, a single, simpli-
fied dual-compensation law would save much of the time and money
now spent in the executive branch in an attempt to administer and
enforce the existing collection of obsolete, complex, and now unrealistic
statutes.
Administrative difficulties under the present laws impede efficient
Government management. The complexity of the statutes make
economy of administration impossible. Agencies encounter continual
problems in their efforts to make sure that existing restrictions are
observed. The cost involved in attempting to reconcile the various
statutes as applied to specific cases is known to be large, even though
it cannot be accurately estimated for any given period of time.
Numerous decisions of the Comptroller General have been required.
Appointing, payroll, certifying, and disbursing officers must be con-
versant with a large body of highly complicated law.
Injustices to individuals have also occurred because of misinforma-
tion and erroneous conceptions of what the law requires. Private
bills have been introduced in Congress to relieve cases of unusual
hardship that have resulted from such situations.
At the present time, a situation exists where it may be necessary
because of recent legal decisions, unless legislative relief is obtained,
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ti DUAL CONTEN-sAT24Pk' ACT
retroactively to subject approximately 500 retired commissioned Army
of the United States officers and an unknown number of retired com-
missioned Air Force officers to the dual compensation restrictions of
section 12 of the Economy Act of 1932. Similarly, under a recent
Comptroller General decision, a number of retired temporary warrant
officers have been found to be serving in Federal civilian positions in
violation of the Dual Office Holding Act of 1894. These problems are
corrected by sections 201 (g) and (h) of the bill.
One of the worst. effects of these laws today is the waste of trained
manpower so badly needed in the Federal service. Nearly 40,000
carefully selected, highly trained, broadly experienced, loyal, and
dedicated American citizens are not available as a source of skilled
manpower for programs of their Government. In order to keep our
military officer corps at the peak of physical vigor and efficiency,
many are retired at a relatively early age, some after only 20 years of
military service. Many of these retired officers are qualified as
scientists, engineers, administrators, medical officers, and nurses, and
in other skilled occupations where the demand for outstanding people
is great.
L)Because of the nature of the work performed by civilians in the
military departments, many skills required are not readil available in
the civilian market. or from among the civilians already employed.
The technical knowledge and understanding necessary for the per-
formance of this work are frequently found only among those men
who have served the armed services durin a career in uniform. In
many instances these skills and understandings have been developed
through training provided at Government expense in the course of
military service. The retired military personnel, consequently,
constitute a useful source of scarce skills for civilian employment.
This country cannot afford to waste this skilled manpower. Suit-
able employment in private industry is precluded for many by the
conflict-of-interest laws, by consideration of age and company retire-
ment provisions, or because of the fact that the individual's experience
is most useful in Government. In other cases, where the individual
is eagerly sought after by private industry-, including defense con-
tractors, it would be much to the practical advantage of the. Govern-
ment to have such persons on the Government side rather than the
industry side, for example, in weapons systems procurement or
contract supervision.
We have obtained some actual examples of recently retired regular
officers who cannot now be employed in the Federal service, unless
sonic special statutory provision is obtained:
A medical officer Who had specialised in research in pathology
retired from the Army as a colonel. The Public Health Service is
doing research in the same area and could have used his background
and skills to great advantage.
A trained meteorologist, a chief warrant officer, was retired at age
44, several years ago. The Weather Bureau could not employ hint.
A mathematician, retired at 48 as a colonel, with two teenage chil-
dren, had to seek employment outside the Government.
A mechanical engineer, retiring at 43 as a colonel, with a background
in engineering research at Wright. Air Development Center, had to
seek employment in private aircraft firnms.
An aeronautical engineer, retired as a lieutenant colonel at age 42,
with a background in research and development., had to seek employ-
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'DUAL C0 fl'ENSATION ACT 7!
ment outside the Government. He had received his master's degree
from the Air Institute of Technology-an Air Force school.
The Congress, the executive branch, and others concerned with the
problems of dual compensation-dual employment have all been seeking
a solution to these problems for a number of years.
James E. Webb, Administrator, National Aeronautics and Space
Administration, during the hearings, cited several cases as typical
problems being experienced by NASA in attempting to fill key position
vacancies by employing retired military personnel competent and
experienced in the aerospace field.
(1) A colonel recently retired from the U.S. Air Force after 23 years
of military service including program management, commander of
the test wing at Cape Canaveral during the critical Thor-Atlas period,
and test commander at the Special Weapons Center. He was offered
$20,000 as an Assistant Director of NASA's Manned Spacecraft
Center in Houston. However, he declined in favor of a $27,000 posi-
tion with Space Technology Laboratories in which position he would
still be able to draw his $7,000 military retirement. Mr. Walter
Williams, our Deputy Director at Houston, believes the colonel would
have accepted the NASA position if he could have retained all of his
retired pay.
(2) A Navy captain presently on duty at NASA's Manned Space-
craft Center in Houston, as a branch chief, previously served as range
operations officer at Point Mugu, Calif., and in space surveillance at
Dahlgren, Va. His experience is appropriate to work in the develop-
ment of our Apollo tracking network, including coordination with the
Jet Propulsion Laboratory, the Goddard Space Flight Center, and
military tracking systems. He has requested retirement from the
Navy, and has indicated an interest in a position with NASA or any
other Federal research and development agency. However, this cap-
tain will not consider a position unless it would be at the $18,000 to
$20,000 level, in order to compensate in substantial measure for the
loss of retired pay.
(3) An active duty Navy captain, presently on detail at NASA
headquarters as a division director, has had 22 years of military
service. He is considering retirement from the Navy and will be
eligible to receive more than $6,000 retirement pay, which he would
have to waive under the existing laws if employed in NASA as a
civilian at a similar level of responsibility. With his qualifications,
his services would be sought by industry. While he would like to
continue in the NASA program after retirement, he doubts that he
could afford to accept the financial penalty.
Two U.S. Air Force colonels who are currently occupying key
positions at our George C. Marshall Space Flight Center at Huntsville,
Ala., are additional examples in this category.
(4) NASA has, in its employ at the present time, several senior
retired Regular military personnel, one of whom is on the deputy
associate administrator level, which is the highest level in the agency
of general executives. These officers have served in industry at
much higher combined industry and retired military pay than they
are presently receiving at NASA. Like many civilian personnel in
the higher executive brackets, they are willing to forego, for a while
at least, the attraction of the higher salary of industry in exchange
for the experience and the personal satisfaction of participating first
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9 DUAL COMPENSATION ACT
hand in the Nation's space program. However, NASA can expect
to lose the services of some of these men after a period of time if they
must continue to forfeit all or most of their retired pay. This financial
penalty in some cases approaches one-half to two-thirds of their salary
at NASA.
EXPLANATION OF TIIE BILL AS REPORTED
The first section provides a short title for the proposed law-the
"Dual Compensation Act."
TITLE I-DEFINITIONS
Section 101 defines the special terms used, most of which are based
on the definitions used for the same words by section 101 of title 37,
United States Code. The definition of "civilian office" is intended to
cover employment in any civilian office, or position in the Government
of the United States or in the municipal government of the District of
Columbia whether appointive, elective, under a personal service
contract, or otherwise. Such term also covers employment in non-
appropriated fund instrumentalities under the jurisdiction of the
Armed Forces.
TITLE II-EMPLOFMEN7 OF RETIRED MEMBERS OF UNIFORMED
SERVICES
Reduction zn retired or retirement pay
Section 201(a) provides that a retired officer of any Regular com-
ponent of the uniformed services who holds a civilian office shall
receive the full compensation of the civilian office plus the first $2,000
of his retired or retirement pay, plus one-half of the remainder, if any.
The prohibition in section 2 of the act, of July 31, 1894, as amended
(5 U.S.C. 62), against such retired officers holding a civilian office is
repealed by section 402(a)(7) of the bill.
Section 201(a) also provides that the $2,000 shall be increased b
appropriate percentages in direct proportion to each increase in suc
retired or retirement pav under section 1401a(b) of title 10, United
States Code, to reflect chap es in the Consumer Price Index. Thus,
if the first increase under sue section 1401a(b) amounts to 3 percent,
such a retired officer thereafter will have his retirement or retired pay
reduced to an annual rate equal to the first $2,000 increased by 3
percent plus one-half the remainder and the next increase under such
section 1401a(b) would be applied to the new base and any later
increases applied accordingly.
Section 201(b) excepts from reduction in retired pay required by
subsection (a) a retired officer of any Regular component of the
uniformed services whose retirement was based on disability resulting
from an injury or disease received in line of duty as a direct result of
armed conflict or based on disability caused by an instrumentality of
war and incurred in the line of duty during a period of war.
Section 201(c) excepts from the reduction in retired or retirement
pay required by subsection (a) the first 30 days of a temporary,
part-time, or intermittent appointment if serving under one appoint-
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ment, or not to exceed a total of 30 days during any fiscal Year in
case the employee is serving under more than one appointment.
Section 201(d) provides a definition of "period for which he re-
ceives salary" for purposes of subsections (a) and (c) of section 201.
Section 201(o) authorizes the U.S. Civil Service Commission,
subject to the supervision and control of the President, to prescribe
regulations under which exceptions to subsection (a) may be made
whenever it is determined by appropriate authority that exceptions
are warranted on the basis of special or emergency employment
needs which otherwise cannot readily be met. Authority to provide
a means for exceptions from subsection (a) also is vested in the
President of the Senate with respect to the U.S. Senate, the Speaker
of the House with respect to the U.S. House of Representatives,
and the Architect of the Capitol with respect to the Office of the
Architect of the Capitol. Special authority is granted the Adminis-
trator of the National Aeronautics and Space Administration to
exempt from such subsection (a) any individual in a scientific, engi-
neering, or administrative position appointed pursuant to section
203 (b) (2) (A) of the National Aeronautics and Space Act of 1958, as
amended (42 U.S.C. 2473 (b) (2) (A)), but not more than 30 such
exemptions may exist at any one time.
Section 201 (f) provides that a retired officer of any Regular com-
ponent of the uniformed services who was employed in it civilian office
on the day immediately preceding the effective date of the subsection
may elect to remain subject to and continue under any applicable
limitations on or exceptions to the amount of compensation to be
received which were in effect prior to such effective date, or to be
subject to the applicable limitations and exceptions contained in
subsections (a), (b), (c), and (e) of section 201.
It is expected that very few Regular officers will be in a position to
exercise this option because the only Regular officers serving in civilian
positions at the present time are those serving in positions for which
specific statutory exemptions have been granted from the dual office
holding prohibitions of section 2 of the act of July 31, 1894, as amended
(5 U.S.C. 62).
Reserve officers
Section 201(g) authorizes the retroactive exemption from the $10,000
compensation restriction of section 212 of the act of June 30, 1932,
as amended (5 U.S.C. 59a), for certain retired members who were
serving in the Army or Air Force of the United States without com-
ponent in a temporary grade higher than, or the same as, the Reserve
commission then held who were retired in such grade for physical
disability. The exemption will be retroactive and apply to each such
person for any period following his retirement. The effect of the
provision will be to require retroactive adjustment in retirement or
retired pay and will overcome the recent decision of the Comptroller
General involving these officers (B-136459, May 18, 1961).
Warrant officers
Section 201(h) will exempt a non-Regular member of any of the
Armed Forces who served on active duty in a temporary warrant
officer grade and who was retired in that status prior to the effective
date prescribed by section 403(a) of the bill from the restriction in
section 2 of the act of July 31, 1894; as amended (5 U.S.C. 62), for
'fI. Rept. 890, 88-1-2
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any period following his retirement. This provision is designed to
protect the civilian appointments of such retired warrant officers
retroactively to the date of their appointment to civilian positions.
This provision will overcome the holding of the Comptroller General's
decision of April 2, 1963 (B -1419S9) that it retired temporary warrant
officer is subject to the dual-office restriction contained in the act of
July 31, 1894, and, therefore could not legally be appointed to a
civilian office.
Deduction-in force benefits
Section 202 of the bill amends section 12 of [lie Veterans Preference
Act of 1944, as amended (5 1 `.S.C. 861), to restrict the retention rights
in connection with reduction in force of certain civilian employees who
are retired members of it uniformed service. Section 202 adds a new
subsection (b) to such section 12 which will grant, for reduction-in-
force pur noses, an em ployee who is a retired member of any of the
uniformed services a preferred status as a preference employee only
if his retirement. was based on disability resulting from injury or
disease received in line of duty as a direct result of armed conflict or
based on disability caused by an instrumentality of war and incurred
in line of duty during it period of wur_ In addition, such an employee
will be entitled to retain his veterans' preference status for reduction-
in-force purposes if his military service does not include 20 or more
years of full-time active service, or if, immediately prior to the effec-
tive date prescribed by section 403(a) of the bill lie was employed in
a civilian office and, on or after such date, lie continued to be employed
in such office without a bronk in service of more than 30 days.
Section 202 of thu bill also adds a new subsection (c) to section
12 of the Veterans Preference Act of 1944. The new subsection (c)
reduces the military service that may be counted by employees for
reduction-in-force purposes when the employee is a 'retired member
of the uniformed services. The new subsection (c) will authorize the
crediting of military service for reduction-in-force purposes by an
employee who is a retired member of any of the uniformed services
only for the length of time in active service in the Armed Forces during
any war or in any campaign or expedition, or for the total length of
time in active service in the Armed Forces, if the em loy-ee is covered
by any one of the descriptions contained in clause (1),'(2), or (3) of
the new subsection (b) of section 202 discussed above. The counting
of military service by employees who meet the requirements of the
new subsection (c) is authorized, as heretofore, without regard to
whether he is entitled to veterans' preference.
Crediting military service for annual leave purposes
Section 203 of the bill amends section 203(a) of the Annual and
Sick Leave Act of 1951 to provide a more restrictive method of
crediting active military service of a retired member of any of the
uniformed services for annual leave accrual purposes. I'nder existing
law, all service creditable under section 3 of the Civil Service Retire-
ment Act. for purposes of annuity may be counted in determining
annual leave accruals (which are lased' on 13 days per year up to 7
years of service, 20 days after 3 years of service up to 15 years, and 26
days per year after 15 years of service). It is the current practice to
count all .military service for annual leave accrual purposes since all
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DUAL COMPENSATION ACT
military service is creditable under the Civil Service Retirement Act
if the retiree waives his military retired pay.
The amendment to the Annual and Sick Leave Act of 1951 made
by section 203 of the bill will permit a retired member of the uniformed
services to count, for annual leave accrual purposes, only military
service performed in the Armed Forces during any war or in any
campaign or expedition for which a campaign badge has been author-
ized or all of his military service if his retirement is based on disability
resulting from injury or disease received in line of duty as a direct
result of armed conflict or based on disability caused by an instru-
mentality of war and incurred in line of duty during a period of war.
The section also contains a savings clause to permit those now em-
ployed to continue counting all their military service.
Civilian employment procedures-Retired military personnel
Sections 204 and 205 establish safeguards which will assure that
consideration of retired military personnel for civil service positions is
accomplished on an equitable competitive basis and that there is
strict compliance in spirit and in procedure with the fundamental
merit system principle of open public competition. These sections
are intended to do away with the so-called buddy system under
which a position is created or held open at a military installation for a
buddy about to retire from the.military service. This undesirable
practice has been recognized by officials of the Department of Defense
and procedures to safeguard the merit system were set forth in mem-
orandums issued by Deputy Secretary of Defense Roswell L. Gilpatric
under dates of July 5, 1961, and October 30, 1962.
Section 204 of the bill writes into law the essence of the Gilpatric
policy referred to above.
The provisions of subsection (a) of section 204 are intended to
prohibit most appointments of retired military personnel to civilian
positions in the Department of Defense during a period of 180 days
immediately following their retirement. However, exceptions to the
prohibition are permissible if (1) the proposed appointment is author-
ized by the Secretary concerned or his designee for the purpose and,
if the civilian office is in the competitive civil service, after approved
by the U.S. Civil Service Commission; or (2) higher minimum rates
have been established for the civilian office under section 504 of the
Federal Salary Reform Act of 1962; or (3) a state of national emergency
exists.
The provisions of subsection (b) of section 204 specify in detail the
information which must accompany a request for the authorization
or a request for the authorization and approval, as the case may be,
required by subsection (a) (1) of section 204.
Section 205 requires that before a retired member of any of the
uniformed services may be appointed to a civilian office in the com-
petitive civil service of any agency in the executive branch there must
be public notice that a vacancy exists and that an assembled examina-
tion, where practicable, open to all persons, is to be given. Also, the
vacancy may be filled only from among those qualified persons who
successfully complete such examination.
The provisions of this section do not apply to appointments to the 30
positions of National Aeronautics and Space Administration referred
to in section 201(e) of the bill.
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AL COMPENSATION ACT
Report
Section 206 requires the President to transmit to the Congress on or
before January 1, 1966, a comprehensive report of the operations of the
,departments and agencies in the executive branch under title II of
the bill.
It is expected that the report will contain sufficient information to
permit the appropriate committees of the Congress to review the
utilization of the new dual-employment and dual-compensation system
established by the bill and to review particularly any adverse effects
resulting from the repeal of the dual office holding restrictions of
section 2 of the act of July 31, 1894, its amended (5 U.S.C. 62).
Employment in more than one eirilian. ogee
The provisions of section 301 of the bill deal solely with the employ-
ment of civilian personnel in more than one civilian office.
Subsection (a) of section 301 will prohibit. Government civilian
personnel generally from receiving basic compensation from more than
one civilian office (as defined in section 101(3) of the bill) for more
than an aggregate of 40 hours of work in any calendar week (Sunday
through Saturday). The provisions do not prohibit an employee
from having a combination of part-time positions collectively equal
to an aggregate of 40 hours of work in any calendar week.
The prohibition is on the receipt of basic compensation and will
not affect the receipt of otherwise properly earned overtime coni-
pensation for work in one position in excess of the hours required for
overtime compensation.
Subsection (b) of section 301 authorizes the U.S. Civil Service
Commission, subject to the supervision and control of the President,
to prescribe regulations under which exceptions to subsection (a) of
such section nuay be made whenever it is determined by appropriate
authority that exceptions are warranted on the ground that personal
services otherwise cannot be readily obtained.
Subsection (e) of section 301 vests authority to provide a means for
exceptions to subsection (a) of such section in the President of the
Senate with respect to the U.S. Senate, the Speaker of the House with
respect to the U.S. House of Representatives, and the Architect of the
Capitol with respect to the Office of the Architect of the Capitol.
Subsection (d) of section 301 provides that subsection (a.) of such
section does not apply to the receipt of compensation in unusual
situations which Congress previously has found deserve special
treatment, or which were the subject of decisions by the Comptroller
General.
Paragraph (1) excepts compensation on a when-actually--employed
basis received from more than one consultant or expert position if such
compensation is not received for the same hours of the same day.
Paragraph (2) excepts compensation consisting of fees paid on other
than a time basis.
Paragraph (3) excepts compensation received by teachers of the
public schools of the District of Columbia for employment in a civilian
office during the summer vacation period.
Paragraph (4) excepts compensation paid by the Tennessee Valley
Authority to employees performing certain part-time or intermittent
work in addition to their normal duties when the Authority deems
it to be in the interest of efficiency and economy.
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DUAL COMPENSATION ACT
Paragraph (5) excepts compensation paid by the U.S. Guard to
employees occupying part-time positions of lamplighters.
Paragraph (6) excepts compensation within. the purview of pro-
visions of nine laws, each of which are amended by section 401(i)-(q)
of the bill to provide exceptions from section 301.
Subsection (e) is a savings provision permitting civilian personnel
serving on the effective date of section 301 in more than one position
under properly authorized. appointments to continue to serve under
such appointments and to receive the compensation from such offices
without regard to subsection (a) for the duration of the appointment
or appointments.
Miscellaneous provisions
Subsections (a) through (h) of section 401 of the bill amend. provi-
sions of various laws to eliminate reference to section 212 of the act
of June 30, 1932, as amended (5 U.S.C. 59a), which is repealed by
section 402(a)(20) of the bill and to insert in lieu thereof reference to
section 201 of the bill, that is, section 201 of the new Dual Compensa-
tion Act. Thus, Regular officers who may be appointed to the
civilian offices covered by such laws will have their retired pay reduced
under the provisions of section 201 of the bill, if applicable.
. Subsection (a) relates to a member of the Boxing Commission of the
District of Columbia (D.C. Code, sec. 3-1226).
Subsection (b) relates to the Office of Civil Defense in the District
of Columbia (D.C. Code, sec. 6-1202).
Subsection (c) relates to service as a member of the Peace Corps
National Advisory Council (22 U.S.C. 2512(b)).
Subsection (d) relates to certain consultants, members of advising
boards, and other persons of the Arms Control and Disarmament
Agency (22 U.S.C. 2584).
Subsection (e) relates to retired officers appointed to positions
authorized under the Foreign Assistance Act of 1961 (22 U.S.C.
2386(b)).
Subsection (f) relates to the Chairman of the Military Liaison
Committee under the Atomic Energy Act of 1.954 (42 U.S.C. 2038).
Subsection (g) relates to the Chairman of the Liaison Committee
under the National Aeronautics and Space Act of 1958 (42 U.S.C.
2474(d)).
Subsection (h) relates to the members of the U.S. Study Commission
on the Savannah, Altamoha, St. Marys, Apalachicola-Chattahoochee,
and Perdi.d.o-Escam.bi.a River Basins and intervening areas (Public
Law 85-850).
Subsections (i) through (q) of section 401 amend provisions of
various laws to eliminate reference to section 2 of the act of July
31, 1894, as amended (5 U.S.C. 62), and section 6 of the act of May 10,
1916, as amended (5 U.S.C. 58 and 59), relating to dual employment
and dual compensation and to insert reference to section 301 of the
bill, that is, section 301 of the New Dual Compensation Act.
Subsection (i) relates to public school teachers of District of
Columbia employed as teachers of night schools and vacation schools
(D.C. Code, sec. 31-631a).
Subsection (j) relates to certain employees of Library of Congress
(2 U.S.C. 162; 5 U.S.C. 60),
Subsection (k) relates to custodial employees of the District of
Columbia Board of Education when. such employees are performing
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DUAL COMPENSATION ACT
work in school buildings being, used for nonrccreational official pur-
poses by a Federal agency or c~cpnrt anent of the District of Columbia
government (D.C. Code, sec. 31-G31 a).
Subsection (1) relates to crews of vessels under the Secretary of
Commerce when assigned duties as instrument observer or recorder
and to Federal employees while observing tides or currents, or tending
seismograph or magnetographs (33 U.S.O. 873).
Subsection (in) relates to employees conducting meteorological inves-
tigations in the Arctic region (15 U.S.C. 327).
Subsection (n) relates to Department of Defense oversea teachers
employed in another position during the school recess period (5 U.S.C.
2358(b)).
Subsection (o) relates to public school teachers of the Canal Zone
who also are employed in night or vacation schools (sec. 102, ch. 7,
title 2, Canal Zone Code).
Subsection (p) relates to Federal employees performing fieldwork of
the Census Bureau in addition to their regular duties (13 U.S.C. 23(b)).
Subsection (q) relates to dual employment of employees in the postal
service (39 L.S.C. 3335).
REPEALS
Section 402 (a) repeals 38 provisions of law relating to dual employ-
ment or dual compensation or which are now obsolete, including the
three major laws on these subjects, namely: (1) Section 2 of the act
of July 31, 1894, as amended (5 U.S.C. 62), relating to the holding of
two offices; (2) section G of the act of May 10, 1916 (5 U.S.C. 58),
relating to double salaries; and (3) section 212 of the act of June 30,
1932, as amended (5 U.S.C. 59a), relating to the limitation of $10,000
on the amount of retired pay received for commissioned officer service
when combined with Government civilian salary.
Subsection (b) of section 402 contains provisions repealing all other
law, general or specific, not repealed by subsection (a) and inconsistent
with the provisions of this legislation.
EFFE't'.Tl VE DATES
Section 403 established an effective date as the first day of the
first month which begins litter than the 90th day following the date of
enactment of the bill, except for sections 201(g) and 201(h), which
shall become effective upon enactment.
The latter two sections relate to Reserve officers and warrant
officers.
Section 404 provides that if any provision of this legislation shall be
held invalid, the remaining provisions shall not be affected.
COST
The committee was unable to obtain any specific cost information
on the amount of overpayinents proposed to be waived by subsec-
tions (g) and (h) of section 201 of the bill in the cases of certain Re-
serve officers and warrant officers. Nor is it possible to estimate any
additional cost that might be incurred by removal of the $10,000
dual-compellsatlon limitation of the act of June 30, 1932, in the case of
those few remaining officers who have been exempted specifically
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DUAL COMPENSATION ACT a
from the dual-office restriction of the act of July 31, 1894, but not
from such $10,000 limitation.
The committee believes it to be a fair statement to say that the
payment of the full amount of compensation for an individual who
holds a civilian position does not result in additional cost to the
Government by reason of the fact that the occupant happens to be a
military retiree, whether Reserve or Regular or officer or enlisted
man.
VIEWS OF THE EXECUTIVE BRANCH AND AGENCY
REPORTS
The special message from the U.S. Civil Service Commission dated
June 25,19'63, report dated August 1, 1963, from the National Aero-
nautics and Space Administration, and report dated July 15, 1963,
from the Comptroller General of the United States are as follows:
U.S. CIVIL SERVICE COMMISSION,
Hon. JOHN W. MCCORMAOK,
Washington, D.C., June .25, 1963.
Speaker of the House of Representatives.
DEAR.MR. SPEAKER: The Civil Service Commission is submitting
for the consideration of the Congress a draft of a proposed bill to
simplify, modernize, and consolidate the laws relating to the em-
ployment of civilians in more than one position and the laws con-
cerning the civilian employment of retired members of the uniformed
services, and for other purposes. Also enclosed are a section analysis
of the draft proposed bill and a statement of purpose and justification.
Existing statutes on the civilian employment of retired military
personnel and the dual employment of civilians are generally agreed
to be harmful, obsolete, unfair, confusing, and difficult to administer.
They are harmful, because for example, they deprive the Government
of the services of certain highly trained retired military personnel
whose technical skills, frequently acquired at Government expense,
are in short supply and are needed in Federal agencies. Their ob-
solete nature is indicated by the fact that one law, enacted in 1894,
was intended originally as a limitation on combined pension and
salary but now serves to bar absolutely certain retired military per-
sonnel from almost all Government employment. The statutes are
unfair, confusing, and difficult to administer in that some categories
of retired military personnel may not be employed at all; some may
be employed subject to a $10,000 limitation on receipt of combined
civilian salary and retired pay; and some may be employed in any
agency without any limitation on combined compensation. Further
complicating the picture is the fact that it is often difficult to de-
termine into which category an individual falls, leading to many
Comptroller General decisions. Another factor is that a few agencies
have been granted exceptions to parts of the law and may employ
any person retired from the military service.
The Commission also receives many complaints from employee
organizations and civil service employees concerning the advantages
possessed by retired military personnel in reductions in force. Some
of these complaints are received directly; many are received through
Congressmen on behalf of the people they represent.
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16 DUAL COMPENSATION ACT
The problems in administering the laws on civilian employment of
retired personnel are further reflected in the introduction in the
Congress each year of private bills to relieve employees of debts owed
to the United States and incurred by overpayment of military retired
pay or civilian salary. The overpayments result from understandable
errors in the interpretation of the more than 40 separate provisions of
law and the 200-plus Comptroller General decisions which seek to
interpret this tangle of statutes.
The proposed legislation would accomplish these things: First, it
would help the Government to obtain the best qualified people
available to fill certain of its hard-to-fill civilian positions. AA-e can
no longer afford to exclude from consideration for employment retired
military personnel w lho have the highly technical knowledges and
skills which are in demand. Second, the draft bill would provide
fairer treatment of all categories of retired military personnel. Third,
the proposed legislation would provide reasonable safeguards so that
the ennploynneut of retired military personnel would not unfairly
hamper career opportunities for present civilian personnel. Fourth,
the bill would consolidate and simplify the present numerous and
confusing statutes on dual compensation and dual employment.
The problems involved in the employment of retired military
personnel and the dual employment of civilians in the Federal service
lave been frequently studied over the past several years by congres-
sional committees and individual Members of Congress, the Civil
Service Commission, and other interested Federal agencies. These
studies have been extremely helpful in clarifying the issues involved.
We believe the enclosed proposed draft bill treats these issues in a
manner which is fair to all individuals concerned and best serves the
public interest.
An almost identical proposal wan introduced in the 87th Congress as
H.R. 12721 at the Commission's request but no action was taken
thereon. The current. proposal differs substantively from II.R. 12721
in the following respects:
(1) ll.h. 12721 contained an exemption from the bill's provi-
sions for retired military members ' hcse retirement was based
on disability "incurred in combat with an enemy of the United
States." This exemption has been changed in the current pro-
posal to include those retired members these disability results
"from an injury or disease received in line of duty as a direct
result of armed conflict." This change ww ould extend the exemp-
tion to those disabled in the kind of ccld-\war conflicts in which
Arneriean military personnel are now engaged.
(2) Section 103 of 11.11. 12721 contained amendments to the
Veterans' Preference Act which would restrict the veterans'
preference benefits to which retired military personnel would be
entitled. In the current proposal a provision has been added to
these amendments which .would preserve veterans' preference for
reservists who become eligible for military retirement. at age 60
subsequent to their employment in the Federal service.
(3) The provisions of section 303(c) of II.R. 12721, which
related to deductions under the retired serviceman's family pro-
tection plan, have not been included in the current proposal. It
has been determined that deletion of these provisions will result
in more consistent are atnhent of persons covered by the bill.
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(4) A provision (section 102(g)) has been included in the cur-
rent proposal to grant retroactive legislative relief to a number,
of retired temporary warrant officers who, under a recent, decision
of the Comptroller General, have been found to be employed in,
the Federal service in violation of the restrictions of. the Dual
Office Holding Act of 1894.
The Bureau of the Budget advises that from the standpoint of the,
administration's program there is no objection. to the submission of
this proposed legislation for the consideration of the Congress.
A similar letter is being sent to the President of the Senate.
By direction of the Commission:
JOHN W. MACY, Jr., Chairman.
DUAL COMPENSATION ACT OF 1963
Legislative Proposal To Simplify, Modernize, and Consolidate the
Laws Relating to the Employment of Civilians in More Than One .
Position and the Laws Concerning the Civilian Employment of
Retired Members of the Uniformed Services, and for Other Purposes
1. To authorize the employment of retired military personnel, and
to permit such personnel to receive full civilian pay but to limit
retired pay to the first $2,000 of such retired pay -plus one-half of the
remainder, if any. The President would. be given the authority to
grant exceptions to this limitation on combined compensation if it
is determined such exceptions are to be necessary in order to meet
special or emergency Government employment needs.
2. To authorize a "fresh start" principal with respect to retired'
military personnel who accept Federal civilian employment. With'
the exception of those whose retirement is based on disability as a
result of armed conflict, or caused by an instrumentality of war in
time of war, and of those whose retired pay is based on less than 6
years of continuous full-time active duty, retired military personnel
would not receive veterans' preference nor would their military time
count in computing leave, retirement, or reduction-in-force retention
credits.
3 To continue the policies of exempting certain military personnel
disabled in line of duty from the restrictions on employment of retired
military personnel. Those retiring with less than 6 years of continuous
active duty would also be exempted.
4. To limit civilian employees in the Federal Government to com-
pensation for one full-time position, unless an exception to this
restriction is granted by the Civil Service Commission on the basis
of Government employment needs.
5. To make uniform, simplify, and consolidate in one law all statu-
tory provisions relating to the Federal civilian employment of re-
tired military personnel and the dual employment of Federal civilian
employees. .
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Current situation.
There are a considerable number of statutes elating to the dual
employment and dual compensation of Federal civilian and retired
military personnel. The earliest of these was enacted in 1894; the
most recent, in 1961. These statutes are complicated; some are
overlapping, some are inconsistent, and a number are no longer
realistic in the light of current conditions. Because the basic statutes
arbitrarily restrict employment and are out of date, many special
exceptions have been sought and granted.
The basic intent of the early dual employment and dual compensa-
tion laws was not to prohibit entirely the coal employment of civilian
employees or the hiring of retirea military personnel. The pur-
pose was primarily to limit such employment to a reasonable extent-
reasonable from the points of view of both the Government and the
employee. When the present dollar limits were set many years
ago, they represented a reasonable annual income for one person;
however, because of the differences between today's salary levels
and living costs and those of 60 (or even 20) years ago, the restrictions
now serve as a bar rather than it limitation. Thus the present
effect of the basic statutes differs markedly from tliat originally
in tended.
A second consequence of the rigid limits in the basic laws has been
the enactment, over the years, of legislation to meet one special
situation or another. While many of these statutes are identified as
exceptions to the basic restrictions, they are not necessarily inconsist-
ent with the original purpose of the Congress, which, as mentioned
earlier, was to permit dual employment within reasonable limits.
The cumulative effect of these various acts of Congress, however, is
a body of law that fails to provide a consistent policy for the employ-
ment of Federal civilian personnel in more than one capacity or for
the hiring of retired military personnel.
Employment of retired military personnel
The present restrictions on the employment of retired military
personnel in civilian positions are inconsistent and inequitable and
have no relation to the Government's hiring needs. Various cate-
gories of military retirees are exempted from the prohibitions and
restrictions. All enlisted men, certain commissioned officers, and some
warrant officers retired from military service may now be hired for
Federal civilian jobs without restriction on the receipt of retired pay.
At present, certain Regular officers and warrant officers retired for
age or length of service. are the only retirees who cannot hold Federal
positions if either their retired pay or the salary of the position is
$2,500 a year or more. Disabled Regular officers whose disability
was not incurred in combat or caused by an instrumentality of war in
time of war are limited to a maximum combined rate of $10,000 a
year for Federal civilian salary and military retired pay.
Among the retired officers still subject to restrictions are many who
possess special skills that are particularly valuable to the Government.
Under present law, these skills, often developed at Government ex-
pense, are available and attracted to private industry but not to the
Federal civil service.
The need for revision of the present restrictions is of long standing
and has been widely recognized in both the legislative and executive
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DUAL: COMPENSATION. P
branches. In his last budget message to the Congress, President
Eisenhower included, this statement :
A number of outmoded and inconsistent statutes now regu-
late the employment and' compensation of retired military
personnel in civilian. positions. with the Government. We
should replace this legal maze with a single rational statute
which would eliminate unnecessary dual payments, ade-
quately safeguard the civilian career service, and. permit the
Government to hire members of this group possessing needed
skills under conditions that are fair to the individual.
The Subcommittee on National Policy Machinery of the Senate
Committee on Government, Operations in. its report of February 28,
1961, on organizing for national security stated:
"An enormous Government investment has been poured into the
training and experience of an. outstanding retired military officer. In
the present state of national need, this investment cannot be permitted
to be thrown away. The dual compensation laws should be reviewed
and amended."
Dual employment of civilians
The present restrictions on dual civilian employment also hamper
effective Government manpower utilization.. The Postmaster General
may employ for postal duties, in addition to their regular duties,
custodial employees who are under the jurisdiction of the General
Services Administration at Federal buildings occupied in any part by
the postal service, but he is prohibited from hiring other employees
of other agencies for part-time work during the Christmas rush.
The Agriculture and Interior Departments cannot hire critically
needed and available Federal employees as emergency firefighters.
These are voidable difficulties that should be eliminated'.
Problems in administering present laws
Administrative difficulties under the present laws impede efficient
Government management. The complexity of the statutes make
economy of administration impossible. Agencies encounter continual
problems in their efforts to make sure that existing restrictions are
observed. The cost involved in attempting to reconcile the various
statutes as applied to specific cases is known to be large, even though
it cannot be accurately estimated for any given period of time.
Numerous decisions of the Comptroller General have been required.
Appointing, payroll, certifying, and disbursing officers must be con-
versant with a large body of highly complicated law.
Injustices to individuals have also occurred because of misinforma-
tion and erroneous conceptions of what the law requires. Private
bills have been introduced in Congress to relieve cases of unusual.
hardship that have resulted from such situations.
At the present time, a situation exists where it may be necessary
because of recent legal decisions, unless legislative relief is obtained,
retroactively to subject approximately 500 retired commissioned Army
of the United States officers and an unknown number of retired com-
missioned Air Force officers to the dual compensation restrictions of
section 12 of the Economy Act of 1932. Similarly, under a recent
Comptroller General decision, a number of retired temporary warrant
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DUAL COMPENSATION ACT
officers have been found to be serving the Federal civilian positions in
violation of the Dual Office Holding Act of 1894.
Thus, the current situation is that the dual compensation-dual
employment, laws are inequitable, are difficult to administer, and pre-
vent the Government from obtaining certain well-qualified personnel
for hard-to-fill positions.
Tinploymcr,! of retired military pcrsonnel
The proposed law would repeal the statutory provisions which, in
effect, prohibit certain categories of retired Regular officers from hold-
ing a Federal civilian job. The policy, expressed in several statutes,
of limiting the amount of combined income from military retirement
and civilian pity would be continued but would be modified to estab-
lish consistent treatment for all the various categories of retired mili-
tary personnel. Limitations on combined compensation would be
reasonable in terms of present salary levels and dollar values.
The proposed law would also establish a "fresh start" principle for
retired military personnel employed in Federal civilian jobs. Since
persons retiring from the military service have generally realized
retirement. benefits based on a military career, it seems desirable and
equitable for them to start Federal civilian careers on the same basis
as others who are also entering the civil service for the first time.
Therefore, Lite bill would (a.) require that their prior military service
not be counted in computing length of service for reduction-in-force.
leave, and retirement purposes, and (b) withhold veterans' preference.
The purpose of the Veterans' Preference Act of 1944 was primarily to
provide preference for civil service employment to those veterans who
had interrupted their regular civilian careers to enter military service
during time of war.
The proposed law would continue the principle of treating separately
those retired military personnel whose retirement was based on disa-
bility resulting from an injury or disease received in line of duty its a
direct result of awned conflict, or caused by an instrumentality of war
and incurred in line of duty during a period of war. Such persons
would not. be subject, to the limitations on combined compensation,
would continue to receive veterans' preference, and would continue
to receive credit, for length of military- service in computation of
retention credits for reduction-in-force pity oses. Similar treatment
would be accorded retired militar lacisnnnel who retire with less than
6 years of continuous full-time active duty Such persons are typi-
cally (1) those whose military careers were cut. short because of
physical diability, or (2) those who were in the military service during
-a time of emergency and who continued to participate in the Reserve
program after the%- returned to civilian life.
In view of the fact that there are certain occupations for which it
is difficult to obtain well-qualified personnel, the proposed law would
give the President authority to grant exceptions to the above-men-
tioned limitations on combined compensation. Exceptions could also
be granted to meet emergency situations.
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E'ENSATION 'ACT' 21`
Those retired military personnel who are already employed in the.
Federal service would retain their present rights with regard. to vet-
erans' preference and credit for military service.. - They could elect,
either to remain subject to the present limitations on compensation
or to. come under the provisions of:the proposed law.
The bill would also provide relief to a large number of retired com-
mission-ed. and warrant officers holding temporary appointments in the
Array and Air Force of the United States who are faced with the
possibility of returning to the Government overpayments of military
retired pay or civilian salary required by recent decisions that such
retired members should have been considered subject to the restric-
tions (1) prescribed by section 212 of the Economy Act of 1.932, in
the case of the retired commissioned officers, and (2) prescribed in the
act of July 31, 1894, in the case of the retired warrant officers.
It is recognized that there are some controversial issues involved
in the employment of retired military personnel in Federal civilian,
positions. Some people maintain that a retired military person has
earned his military retirement pay as a result of his military service;
therefore, if he is employed by the Government in. a civilian capacity he
is entitled to both his full military retirement pay and the regular
civilian pay for the'position. Others believe.that no person should
receive retired hay and regular pay from a single employer at the same
time, The proposed bill represents what seems to be a reasonable
middle ground between. these two points of view, by providing that
$2,000 of the retired pay, the approximate average nondisability
retired pay received by enlisted personnel, plus one-half of the re-
rnainder, may be paid along with the regular pay for the civilian
position.
. This restriction on combined compensation would apply to most
retired military personnel, including a number of categories to which
no such restrictions now apply, but not to those whose retirement is
based on disability resulting from armed conflict, or caused by an
instrumentality of 'war in. time of war?, or to those whose retired pay is
based on less than 6 years of continuous full-time active duty.
Some people also maintain that retired military personnel have an.
unfair advantage over other civilian employees in a reduction in force
by reason of veterans' preference eligibility and credit for years of
military service. This advantage had been eliminated by the "fresh
start" principle explained above
Dual employment of civilians
Those portions of the bill which deal with employment of . civilian
employees in more than one position may be less controversial but
are no less important. The proposed law would limit civilian em-
ployees to one full-time job; part-time employees would be limited
to a combination of part-time positions equaling one full-time position.
The Commission would be authorized to grant exceptions to these
restrictions when the Government could not otherwise readily obtain.
the needed services. This authority to grant exceptions would. be
used to -meet situations of the kind which now have to be excepted
by statute. An example is the exception, granted by law, which
permits District of Columbia teachers to accept additional compen-
sation for services rendered in. connection with the operation of night
schools in the public schools of the District of Columbia.
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22 DUAL C(3bit?t?IN i
summary
In summary., the proposed legislation would make an important
source of skilled manpower available to the Government, would
eliminate inequities in the treatment of retired military personnel,
and would provide a single modern statute in place of a collection of
overltipping and outdated laws.
1tiATioN'Ai. FitowAi ices 1AND SpAcE l'a hingt0n D C,Augwst 1, 1963.
Bon. Tom NJU itRAY,
C7tairmar, Committer ou Post 9,,fce and (iei1 Service,
house of 11'rpre.sentatit'es, Washington, D.C.
DEAR MR. CHAIR MAN-: This replies to your request for the views of
the National Aeronautics and Space Administration on the bill , 11.R.
7381, to simplify, modernize, and consolidate the laws relating to the
employment of civilians in more Omit one position and the laws con-
cerning the civilian employmeof Tretired he bill members idei t oil the ui ao med
services, and for other purposes.
submitted to the Congress under date of dune 25, 1963, by the U .S.
Civil Service Comillission.
The Civil Service Commission, in its submission to the Congress,
suinniarized the purpose of the bill as follows:
1. To aulliorizc tie employment of retired military personnel, and reveive fill]
ay b
to l re permit such firstl$2,00 ,0 of sueh retired payiplus of elhalf ofitlle
retirerd {lay to the first riven the authority to
remainder, if any. The President would be
grant exceptions t43 this liillitation oil combined c'ompeilsatlon if it
is determined such exceptions are to be necessary in order to meet
special or emergency Government employment needs.
2. To authorize a fresh-start principle with respect to retired
military personnel who accept Federal civilian employment. With
the exception of those whose retirement is based on disability as a.
result of armed conflict, or caused by an instrumentality of Will, in
time or war, and of those whose retired pay is based on less than 6
year,, of continuous full-time active duty retired military personnel
count in -fore e. retention
ct
would not ng leave, s reti~n1ei-t, or o would
redion-
il commput
credits. personnel
3. To continue the policies of exempting certain military d
disabled ioio et resirictions on
less tilt -tlo611years of coil
military personnel, sinuous active duty- would also be exempted.
4. To limit civilian employees in the Federal Government to less an compensation for by the CivilsS rvicenComn ission otn thteobthi is
restriction granted '
of Government employment needs.
To
provisions irela ng to the,Federal civilian employment ofaretired
T
military personnel and the dual employment of 'ederal civilian
employees.
The National
proposed dl lation should be enacted() to
the opinion
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DUAL COMPENSATION ` ACT L
permit the Government to capitalize on certain skills, competence, and
experience in the area of space science and technology of a sizable
group of military personnel who have completed their service careers,
(2) to correct inequities in the treatment of such personnel, and (3)
to provide a single modern statute in place of a number of existing
obsolete and confusing statutes. In particular, this legislation is
needed to make available to NASA and other Federal agencies those
retired military officers who possess abilities, skills and knowledge
which are in short supply, and. who are needed in civilian Government
positions.
Many of the abilities and skills and much of the knowledge which
are valuable to NASA are possessed only be certain military.: officers
who have been closely associated with missile, rocket, and other space
developments. A sizable number of these officers have been.deta}led
to NASA while on active duty and have held important line positions
in the NASA organization for periods of 2 or more years. However,
since military officers are well aware of the dual-compensation statu-
tory restrictions, they usually accept employment in private industry,
where their services are in demand, when they retire from the military
service. Collectively, this body of men, technically educated and
skilled in aerospace research technology, represents a reservoir of
knowledge and experience which constitutes a national asset of inesti-
mable value. Unless a major segment. of this limited group of special-
ists can be attracted to remain in the Government's space program,
this asset will be dissipated and lost. On the other hand, by removing
the financial penalty now imposed, many of this group will elect to
continue in the space program and their skills and technical knowledge
will not only be kept from dissipating but will be nurtured and
enhanced.
While NASA is exempt from the dual-eiployment restrictions, our
employees are subject to the dual-compensation statutes. Thus,
one of the, main decisions. to be made by a retired military officer who
is considering employment with NASA is whether he is willing to
waive his military retirement pay, and thus accept a substantial
financial penalty as compared to industrial employment, in order to
continue to serve the Government.
Waiver of military retirement pay involves a significantly large
annuity, particularly in the case of the higher level military officers
who could be valuable assets to NASA's management team. The
following cases are offered as examples. They bring into focus the
significance of the loss of military retired pay:
(a) A colonel recently retired from the USAF; 23 years of military
service in program management; 4 to 5 years as commander, test
wing at Cape Canaveral during critical Thor-Atlas period; test com-
mander at the Special Weapons Center. Ile was offered $20,000 as
an Assistant Director at the Manned Spacecraft Center, Houston,
Tex. However, he declined in favor of a $27,000 position with space
technology laboratories, in which position he would still be able to
draw his $7,000 military retirement. Mr. Walter Williams of the
Manned Spacecraft Center feels that the colonel would have accepted
the NASA position if he could have retained all his retired pay.
(b) A. U.S. Navy captain presently on military detail at the
Manned Spacecraft Center as a branch chief (GS-15 position);
served as range operations officer at Point Mugu, Calif.; served in
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24 DUAL COMPENSATION ACT
.space surveillance. Dahlgren, Va., experience appropriate to work in
development of Apollo tracking network, including coordination with
Jet Propulsion Laboratory, Goddard Spare FlightVenter, and military
tracking? sv teens. Ile has requested retirement front the Navy, and
has indicated an interest in at position with, NASA or any other Federal
research and development agency. lloww~ew er, he would not consider
such a position unless it Was at the $IS.000 to $20,000 level, in order
to coittpensatte for t1w loss of retired pay.
(c) A U .S. Navy captain presently on military detail at NASA
headquarters as a division director; 23 years of military service. Ile
is considering retirement from the \avy, and will be eligible for over
$6,000 retired pay, which he would have to waive if employed as ft
civilian in the Federal civil service under present restrictions.
(d) A retired U .S. Navy admiral presently employed in a top level
administrative position in NASA. He is entitled to $15,300 military
retired pay, but was required to waive all except approximately $750.
It should be remembered that the above represent only a few
examples. As staled above, many officers because of their own knowl-
edge of existing statutes regarding dual compensation do not apply
to NASA or other Government agencies for employemnt. it is our
opinion that, this bill would increase the number of officers willing to
accept further Government service in these particular shortage areas
of aerospace technology at key Project and program direction levels.
For the foregoing reasons, the National Aeronautics and Space
Administration favors the enactment of H.R. 7381. The Bureau of
the Budget has advised that there is no objection to the presentation
of this report from the standpoint. of the administration's program.
Thank you for your invitation to appear before the committee at
10 a.ni.,Tuesday, August. 6, 1963. 1 will be most happy to be present
to discuss this legislation with the conuitittee.
Sincerely yours,
JAMES E. WEBB, Administrator.
COMPTROLLER GENERAL OF THE UNITED STATES,
Washington, July 15, 1968.
B -29000.
B--91556.
Ilon. Tom Muiuc v,
Chairman, ('ommnitlec on Post Of cc and (,'it it Sereire,
house of Ilrprescntatith .
Di:Ait :flit. CItAIR\i,Ix: Your letter of June 28, 1963, acknowledged
July 5, requests our report: upon an executive communication from
the Chairman of the Civil Service Commission to the Speaker of the
House of Representatives, submitting a draft of it proposed bill to
simplify, modernize, and consolidate the laws relating to the employ-
ment of civilians in more than one position and the laws concerning
the civilian employment. of retired members of the uniformed services
and for other purposes. On July 2 the Commission's bill was intro-
duced by you as I1.1t. 7381. For convenience our comments will be
addressed to the provisions of II.R. 7381.
H.R. 7381 is substantially the same as ILR. 12721, 87th Congress,
upon which we submitted a report to your committee on December 7,
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1962 (B-29000, B-19556). In that report we recognized that there
is a need for a general revision of the existing statutory restrictions
relating to the employment of retired military personnel in Federal
civilian positions, since existing statutory restrictions are outmoded,
unrealistic, inequitable, and in certain cases operate to impede the
Government's procurement of the highly specialized skills and
experience of certain retired military personnel. Similarly, we
recognized in such report that the present limitation of $2,000 per
annum upon the concurrent receipt of more than one civilian salary
and the $2,500 dual-office limitation are outmoded and unrealistic.
In general, the bill would repeal existing statutory restrictions re-
lating to dual employment and double compensation. The most
important restrictions appear in section 2 of the act of July 31, 1894,
as amended, 5 U.S.C. 62, precluding a person who holds an office the
salary or annual compensation attached to which amounts to the sum
of $2,500 or more from holding any other office to which compensation
is attached; section 212 of the act of June 30, 1932, as amended,
5 U.S.C. 59a, which places a limit of $10,000 per annum upon the
aggregate civilian compensation and retired pay for or on account of
services as a commissioned officer that may be received in any year;
and section 6 of the act of May 10, 1916, as amended, 5 U.S.C. 58,
which provides that no money appropriated by any act shall be avail-
able for payment to any person receiving more than one salary when
the combined amount of said salaries exceeds the sum of $2,000 per
annum. In their stead the bill would provide a single restriction
relating to civilian employment of retired military personnel, and a
single restriction relating to concurrent employment in two or more
civilian positions.
The section designated "12" on line 20, page 2, should. be desig-
nated as "102" and hereafter will be referred to as section "102."
Section 102 of the bill provides, subject to certain enumerated excep-
tions, that a retired member of a uniformed service is entitled to
hold a civilian position and receive the full pay of such position.
In addition, he is entitled to receive the first $2,000 of his retired
pay plus one-half of that portion of his retired pay in excess of $2,000
per annum. In general, section 201 of the bill would allow a civilian
employee to receive compensation from more than one civilian posi-
tion provided the basic number of hours worked in all such positions
does not exceed 40 hours in any calendar week. The Civil Service
Commission is authorized to issue regulations relaxing such restriction
when it determines that needed services cannot otherwise be readily
obtained. In our opinion the bill is a substantial improvement over
existing law
The term "civilian office" as defined in section 101((,,) neither ex-
pressly includes nor excludes positions under armed services post
exchanges and other nonappropriated fund. activities. Ilowever, we
doubt that such positions may be regarded as "in the U.S. Govern-
ment" within the meaning of the definition. In the absence of it
clear expression of legislative intent to the contrary, we would not
construe the bill as applying to employees of such activities.
We note that section 102(a) does not prescribe the procedure to be
followed in applying the "annual rate" limitation on retired pay when
the period to which the limitation applies is less than a year. There-
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fore, in our opinion, the monthly or daily equivalent of the "annual
rate" limitation under the proposed legislation would be determined
in accordance with the usual rules for computing a fractional year's
pay as set forth in the act of Juiic 0, 1906 (34 Stitt. 763, 5 U.S.C. 84),
and as construed by numerous decisions of our office.
Clause (2) of section 102(b) exempts from the restrictions contained
in section 102(a) a retired member whose retired pay is "based on less
than 6 years of continuous full-time active service."
There is no existing law authorizing retirement. based upon less than
6 years of continuous full-time active service, and we have some doubt
concerning the preci3e scope of the exemption. However, in the ab-
sence, of clarification we would interpret clause (2) as exempting from
the restrictions contained in section 102(a) any retired member whose
retired pay is not based upon a continuous period of full-time active
service for as long as 6 years, even though in aggregate such retired
member may have ninny more than 6 years of full-time active service.
If your intent in the matter is otherwise, we suggest that it be clarified
either in the language of the bill itself or in your committee's report.
We assume that it is intended that the language "based on less than
6 years of continuous full-time active service" be accorded the same
meaning in the other places that it appears in the bill-- sections 103
and 104.
We note also that the language appearing in section 102(g) was not
included in H R. 12721, S7th onb ess. 'We understand that such
language is designed to perfect the civilian appointments of the retired
warrant officers to whom it applies retroactively to the date such
appointments were made. This provision would overcome the hold-
ing in our decision of April 12, 1963, B--141989, that a retired tem-
porary warrant officer is subject to the dual-office restriction contained
in the act of duly 31, 1S94, as amended, 5 L.S.C. 62.
The Civil Service Commission is authorized to make exceptions to
the 40-hour-work-per-week limitation contained in sect-ion 201 when-
ever it determines that services cannot otherwise be readily obtained.
So far as employees of the Senate and House of Representatives or of
the individual members thereof are concerned you may wish to vest
the responsibility for granting exceptions to the limitation in section
201 in some authority or authorities in the Senate and the House of
Representatives, respectively, rather than the Civil Service Com-
mission. Also, you may wish to grant similar responsibility to some
authority in the judicial branch insofar as employees of U.S. judges
are concerned.
Certain other matters of a technical nature have been brought
informally to the attention of your committee staff which we under-
stand presently is according consideration to such matters.
Sincerely yours, JOSEPH CAMPBELL,
Comptroller General of the United States.
CHANGES IN EXISTING LAW MADE BY THE BILL,
AS REPORTED
In compliance with clause 3 of rule XIII of the Rules of the House
of Representatives, changes in existing law made by the bill (II.R.
7381), as reported, are shown as follows (existing law proposed to be
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omitted is enclosed in black brackets, new matter is printed in italic,
existing law in which no change is proposed is shown in roman) :
SECTION 12 OF THE VETERANS' PREFERENCE ACT OF 1944
(5 U.S.C. 861)
Snc. 12. (a) In any reduction in personnel in any civilian service of
any Federal agency, competing employees shall be released in accord-
ance with Civil Service Commission regulations which shall give
due effect to tenure of employment, military preference (subject to
subsection (b) of this section), length of service, and efficiency ratings:
Provided, That, subject to subsection (c) of this section, the length of
time spent in active service in the armed forces of the United States
of each such employee shall be credited in computing length of total
service: Provided further, That preference employees whose efficiency
ratings are "good" or better shall be retained in preference to all other
competing employees and that preference employees whose efficiency
ratings are below "good" shall be retained in preference to competing
nonpreference employees who have equal or lower efficiency ratings:
And provided further, That when any or all of the functions of any
agency are transferred to, or when any agency is replaced by, some
other agency, or agencies, all preference employees in the function or
functions transferred or in the agency which is replaced by some other
agency shall first be transferred to the replacing agency, or agencies,
for employment in positions for which they are qualified, before such
agency, or agencies, shall appoint additional employees from any other
source for such positions.
(b) Notwithstanding any other provision of this Act, an employee who
is a retired member of any of the uniformed services included under
section 2 of this Act shall be considered a preference employee for the
purposes of subsection (a) of this section only if-
(1) his retirement was based on disability (A) resulting from
iniury or disease received in line of duty as a direct result O Y armed
conflict or (B) caused by an instrumentality of war and incurred
in the line of duty during a period of war (as defined in sections 101
and 301 of title 38, United States Code); or
(2) his service does not include twenty or more years of full-time
active service (regardless of when performed but not including periods
of active duty for training); or
(3) immediately prior to the effective date of this subsection, he
was employed in a civilian office to which this Act applies and, on
and after such date, he continues to be employed in any such office
without a break in service of more than thirty days.
(c) In computing length of total service, an employee who is a retired
member of any of the uniformed services shall be given credit for-
(t) the length o f time in active service in the armed forces dur-
ing any war, or in any campaign or expedition (for which a campaign
badge has been authorized); or
(2) if he is included under clause (1), (2), or (3) of subsection
(b) of this section, the total length of time in active service in the
armed forces.
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SECTION 203(a) OF THE ANNUAL AND SICK LEAVE ACT OF
1951 (5 U.S.C. 2062(a))
SEC. 203. (a) Officers and employees to whom this title applies
shall be entitled to annual leave with pay which shall accrue as
follows--
(1) one-half day for each full biweekly pay period in the case
of officers and employees with less than three years of service,
(2) thrcc-fourtlis day for each full biweekly pay period (except
that the accrual for the list full biweekly pay- period in the year
shall be one and one-fourth days) in the case of officers and
employees with three but less than fifteen years of service, and
(3) one day for each full biweeldy pay period in the case of
officers and employees with fifteen years or more of service.
Except as otherwise provided in this subsection, in [In] determining
years of service for the purposes of this subsection, there shall be
meluded all service creditable under the provisions of section [5]
3 of the Civil Service Retirement Act [of May 29, 1930, as amended,]
for the purposes of an annuity- under such Act and the determination
of the period of service rendered may be made upon the basis of an
affidavit. of the employee. Aetire military service of _a retired member
of any of the uniformed services is not creditable in determining years of
service.for the purpose of this subsection unless--
(1) his retirement was based on disability (A) resulting from
injury or disease received in line of duty as a direct result of armed
conflict or (B) caused by an instrumentality of war and incurred in
the line of duty during a period of war (as defined in sections 101
and 301 of title 38, United States Code); or
(2) immediately prior to the effective date of this sentence, he was
employed in a civilian office to which this Act applies and, on and
after such date, he continued to be employed in any such office
without a break in service of more than thirty days; or
(3) such service was performed in the armed forces during any
war, or in any campaign or expedition (for which a campaign. badge
has been authorized). In the case of an officer or employee who
is not paid on the basis of biwecldy pay periods, the leave provided
by this title shall accrue on the same basis as it would accrue
if such officer or employee were paid on the basis of biweeldy
pay periods.
SECTION 18 OF THE ACT OF DECEMBER 20, 1944, AS ADDED
BY SECTION 2 OF THE ACT OF AUGUST 19, 1950 (64 STAT.
466; D.C. CODE, SEC. 2-1226)
SEc. 18. Notwithstanding the limitation of any other law or regula-
tion to the contrary-. any person heretofore or hereafter appointed as
a member of the Commission may receive the compensation author-
ized by this Act to be paid to such member, as well as any retired pay,
retirement compensation, or annuity to which such member may be
entitled on account of previous service rendered to the United States
or District of Columbia governments, subject to section 201 of the
Dual Compensation Act of 1963.
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DUAL COMPENSATION ACT
SECOND PARAGRAPH OF SECTION 2 OF THE ACT OF AUGUST
11, 1950 (64 STAT. 438; D.C. CODE, SEC. 6-1202)
Notwithstanding the limitation of any law, there may be employed
in such Office of Civil Defense any person who has been retired from
any of the [Armed Forces] uniformed services of the United States
or any office, or position in the Federal or District governments, and
except as hereinafter provided, while so employed in such Office of Civil
Defense any such retired person may receive the compensation
authorized for such employment or the [retired pay,] retirement
compensation [,] or annuity, whichever he may elect, and upon the
termination of. [his employment in such Office of Civil Defense,] such
employment, he shall be restored to the same status as a retired officer
or employee with the same [retired pay,] retirement compensation [,]
or annuity to which he was entitled before having been employed in
such Office of Civil Defense. While any person who has been retired
from any of the uniformed services of the United States is so employed in
such Office of Civil Defense, he may receive the compensation authorized
for such employment and his retired or retirement pay, subject to section
201 of the Dual Compensation Act of 1963.
SECTION 13(b) OF THE PEACE CORPS ACT (75 STAT. 619;
22 U.S.C. 2512(b))
SEC. 13. (a) * * *
(b) Service of an individual as a member of the Council authorized
to be established by section 12 of this Act or as an expert or consultant
under subsection (a) of this section shall not be considered as service or
employment bringing such individual within the provisions of section
281, 283, or 284 of title 18 of the United States Code, or of section 190
of the Revised Statutes (5 U.S.C. 99), or of any other Federal law im-
posing restrictions, requirements, or penalties in relation to the em-
ployment of persons, the performance of service, or the payment or
receipt of compensation in connection with any claim, proceeding, or
matter involving the United States Government, except insofar as
such provisions of law may prohibit any such individual from. receiv-
ing compensation in. respect of any particular matter in which such,
individual was directly involved in the performance of such service;
nor shall such service be considered as employment, or holding of
office or position bringing such. individual within the provisions of
section 13 of the Civil Service Retirement Act, as amended. (5 U.S.C.
2263), [section. 212 of the Act of June 30, 1932, as amended (5 U.S.C.
59a),] section 872 of the Foreign Service Act of 1946, as amended, or
any other law limiting the reemployment of retired officers or em-
ployees or governing the simultaneous receipt of compensation and
retired pay or annuities, subject to section 201 of the Dual Compensation
Act of 1963.
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DUAL COMPENSATION ACT
SECTION 44 OF THE ARMS CONTROL AND DISARMAMENT
ACT (75 STAT. 636; 22 U.S.C. 2584)
SEC. 44. The members of the General Advisory Committee created
by section 26 of this Act, and the members of the advisory boards, the
consultants, and the individuals of outstanding ability employed
without compensation. all of which are provided in section 41 of this
Act, may serve as such without regard to the provisions of section
281, 28:3, 284, or 1914 of title 18 of the United States Code, or of sec-
tion 190 of the Revised Statutes (5 U.S.C. 99), or of any other Federal
law imposing restrictions, requirements, or penalties in relation to
the employment of individuals, the performance of services, or the
payment or receipt of compensation in connection with any claim,
proceeding, or matter involving the United States Government, except
insofar as such provisions of law may prohibit any such individual
from receiving compensation from it source other than it nonprofit
educational institution in respect of any particular matter in which
the. Agency is directly interested. Nor shall such service be con-
sidered as employment or holding of office or position brin;inv such
individual within the provisions of section 13 of the Civil Service
Retirement Act (5 U.S.C. 2263), [section 212 of the Act of June :30,
1932, as amended (5 U.S.C. 59a),] or any other Federal law limiting
the reemployment of retired officers or employees or governing the.
simultaneous receipt of compensation and retired pay or annuities,
?4ubject to section 201 of the Dual Compensation Act of 1968.
SECTION 626(b) OF PART III OF THE ACT APPROVED
SEPTEMBER 4, 1961 (75 STAT. 451; 22 U.S.C. 2386(b))
SEC. 626. ExrEaTS, CONSULTANTS, AND RETIRED OFFICERS.-(a)
(b) Service of an individual its an expert, or consultant under sub-
section (a) of this section shall not be considered as service or employ-
ment bridging such individual within the provisions of section 281,
283, or 284 of title 18 of the United States Code, or of section 190 of
the Revised Statutes (5 U.S.C. 99), or of any other Federal law
imposing restrictions, rec uirements, or penalties in relation to the
employment of persons, the performance of services, or the payment
or receipt of compensation in connection with any claim, proceeding,
or matter involving the United States Government, except insofar as
such provisions of haw may prohibit any such individual from receiving
compensation in respect of any particular matter in which such indi-
vidual was directly involved in the performance of such service. Nor
shall such service be considered as employment or holding of office
or position bringing such individual within the provisions of section
13 of the Civil Service Retirement Act, as amended (5 U.S.C. 2263),
[section 212 of Public Law 72-212, as amended (5 U.S.C. 59a),]
section 872 of the Foreign Service Act of 1946, as amended, or any
other law limiting the reemployment of retired officers or employees
or governing the simultaneous receipt of compensation and retired pay
or annuities, subject to section 201 of the Dual Compensation Act of
1963.
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SECTION 28 OF THE ATOMIC ENERGY ACT OF 1954.
(68 STAT. 926; 42 U.S.C. 2038)
$Ee. 28. APPOINTMENT OF ARMY, NAVY, OR AIR FORCE OFFICERS.-
Notwithstanding the provisions of any other law, any active officer of
the Army; Navy, or Air Force may serve as Director of the Division
of Military Application without prejudice to his commissioned status
as such officer. Any such officer serving as Director of the Division
of Military Application shall receive in addition to his pay and allow-
ances, including special and incentive pays, an amount equal to the
difference between such pay and allowances, including special and
incentive pays, and the compensation prescribed in section 25. Not-
withstanding the provisions of any other law, any active or retired
officer of the Ariny, Navy, or Air Force may serve as Chairman of the
Military Liaison Committee without prejudice to his active or retired
status as such officer. [Any such officer serving as Chairman of the
Military Liaison Committee shall receive, in addition to his pay and
allowances, including special and incentive pays, or in addition to his
retired, pay,: an amount equal to the difference between such pay and
allowances, including special and incentive pays, or between his retired
pay, and the compensation prescribed for the Chairman of the Military
Liaison Committee.] Any such active officer serving as Chairman of
the. Military Liaison Committee shall receive, in addition to his pay and
allowances,. including special and incentive pays, an amount equal to the
difference between such pay and allowances,. including special and incen-
tive pays, and, the compensation fixed for such Chairman. Any such
retired bfieer serving as Chairman of the Military Liaison Committee
shall receive the compensation fixed for such Chairman and his retired
-pay, subject to section 201 of the Dual Compensation Act of 1963.
.SECTION 204(d) OF THE NATIONAL AERONAUTICS AND
SPACE ACT OF 1958 (72 STAT. 432; 42 U.S.C. 2474(d))
SEC. 204. (a)
(d) Notwithstanding the provisions of any other law, any active or
retired officer of the Army, Navy, or Air Force may serve as Chair-
man of the Liaison Committee without prejudice to his active or re-
tired status as such. officer. [The compensation received by any such
officer for his service as Chairman of the .Liaison. Committee shall be
equal to the amount (if any) by which the compensation fixed by sub-
section (a)(1) for such Chairman exceeds his pay and allowances
(including s . ecial and incentive pays) as an active officer, or his
retired pay. Any such active officer serving as Chairman of the
Liaison Committee shall receive, in addition to his pay and allowances,
including,.special..and incentive pays, an amount equal to the difference
between such pay and allowances, including special and incentive, pays,
and the compensation fixed by subsection (a) (1) for such Chairman.
Any such retired officer serving as Chairman of the Liaison Committee
shall receive the compensation fixed by subsection 7(a) (1) for such Chairman
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and his retired pay, subject to section 201 if the Dual Compensation Act
of 1.?63.
SECTION 3(b)(1) OF THE ACT OF AUGUST 28, 1958 (72 STAT.
1091; PUBLIC LAW 85-850)
SEC. 3. (a,) * * *
(b) The Commission shall be composed of eleven members ap-
pointed by the President as follows:
(1) One. member, who shall serve as Chairman, and who shall
be a resident fruni the area comprising the Savannah Altamaha,
Saint: Marys, Apalachicola-Chattalioochee, and Perdido-Escambia
River Basins (and intervening areas) embraced within the States
referred to in the first. section of this Act and who shall not,
during the period of his service on the Commission, hold any
other position as an officer or employee of the United States,
except that a retired military officer or a retired Federal civilian
officer or employee may be appointed under this Act without
prejudice to his retired [status, and he shall receive compensa-
tion as authorized herein in addition to his retired pay or annuity,
but the sum of his retired pay or annuity and such compensation
as may be payable hereunder shall not exceed $12,000 'in any
one. calendar year;] status. A retired .Federal civilian officer or
employee appointed under this Act shall receive compensation as
authorized herein in addition to his annuity, but the sum of his
annuity and such compensation as may be payable hereunder shall
not exceed $12,000 in any one calendar year. A retired military
ofu:er appointed under this Act shall receive compensation, as
authorized herein and his retired pay, subject to section 201 of the
Dual Compensation. Act of 1.963;
SECTION 9 OF THE ACT OF OCTOBER 6, 1917 (40 STAT. 384;
D.C. CODE, SEC. 31-631)
SEc. 9. ['('hat section six of the legislative, executive, and judicial
appropriation Act, approved allay tenth, nineteen hundred and sixteen,
as amended by. the naval appropriation Act, approved August twenty-
ninth, nineteen hundred and sixteen,] Section 301 of the Dual Com-
pensation Act of 1963 shall not apply to teachers in the public schools
of the District of Columbia who are also employed as teachers of night
schools and vacation schools.
SECTION 6 OF TIIE ACT OF MARCH 3, 1925 (43 STAT. 1108),
AS AMENDED BY TIIE ACT OF JANUARY 27, 1926 (44
STAT. 2; 2 U.S.C. 162; 5 U.S.C. 60)
SEC. 6. Etnplorecs of the Library of Congress who perform special
functions for the porlorniance of IvIlWh funds lia+vc been entrusted to
the board or the librarian, or in connection with cooperative under-
takings in which the Library of Congress is engaged, shall not be
subject to the proviso contained in the Act making appropriations for
the legislative, executive, and judicial expenses of the Governn-ient for
the fiscal year ending June 30, 1018, and for other purposes, approved
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DUAL COMPENSATION ACT
March 11 917, in Thirty-ninth Statutes at Large, at page 1106; [nor
shall any additional compensation so paid to such employees be con-
strued as a double salary under the provisions of section 6 of the Act
making appropriations for the legislative, executive, and judicial ox-
penses of the Government for the fiscal year ending June 30, 1917, as
amended (Thirty-ninth Statutes at Large, page 582)] and section 301
of the Dual Compensation Act of 1963 shall not apply to any additional
compensation so paid to such employees.
ACT OF JULY 1, 1942 (56 STAT. 467; D.C. CODE, SEC. 31-631a)
AN ACT To exempt custodial employees of the District of Columbia Board of
Education from the operation of the provisions of section 6 of the Legislative,
Executive, and Judicial Appropriation Act approved May 10, 1916
Be it enacted by the Senate and House of Representatives of the United
States,of America in Congress assembled, [That section 6 of the Act
entitled "An Act making appropriations for the legislative, executive,
and judicial expenses of the Government for the fiscal year ending
June 30, 1917", approved May 10, 1916 (39th Stat. 120), and Acts
amendatory thereto,] That section 301 of the Dual Compensation Act
of 1963 shall not apply to the custodial employees who are in the
employ of the Board of Education of the District of Columbia when
such employees are performing work required of them in school
buildings during the time these buildings are used for nonrecreational
official purposes by any Federal agency or department of the District
of Columbia government other than the Board of Education, in
accordance with the rules of the Board of Education governing the
use of school buildings and grounds, including their use for day or
evening schools; and nothing therein contained shall be deemed to
prevent any custodial employee from receiving in addition to his pay,
salary, or compensation as an employee of the Board of Education
of the District of Columbia any other pay, salary, or compensation
at a rate not in excess of the rate of pay received as an employee of
the Board of Education, for services which may have been rendered
subsequent to May 31, 1941, or which may hereafter be rendered to
any Federal agency or department of the District of Columbia govern-
ment other than the Board of Education, during its use of school
buildings. under the jurisdiction of the Board of Education of the
District of Columbia.
SECTION 2 OF THE ACT OF JULY 22, 1947 (61 STAT. 400, 74
STAT. 11; 33 U.S.C. 873)
SEC. 2. The Secretary of Commerce is hereby authorized to pay
extra compensation to members of crews of vessels when assigned
duties as instrument observer or recorder, and to employees of other
Federal agencies while observing tides or currents, or tending seismo-
graphs or magnetographs, at such rates as may be specified from time
to time by him and without regard to section 301 of the Dual Compensa-
tion Act of 1963.
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4 DUAL COMPENSATION ACT
SECTION 3 OF THE ACT OF JUNE 2, 1948, AS AMENDED (62'
STAT. 286, 74 STAT. 11; 15 U.S.C. 327)
Sts. 3. The Secretary of Commerce is hereby authorized to (a)
appoint employees for the conduct of meteorological investigations in
the Arctic region without regard to [lie civil service laws and fix their
compensation without regard to the Classification Act of 1949, as
amended (5 1.: ~.C. 1071 and the following), and titles II and III of
the Federal Employees Pay Act of 1945, as amended (5 U.S.C. 911
and the following), at base rates not to exceed the inaxinium scheduled
rate for GS--12, and (b) grant extra compensation to employees of
other Government agencies for taking and transmitting meteorological
observations without regard to section 301 of the Dual Compensafion
Act of 1963.
SECTION 10(b) OF THE DEFENSE DEPARTMENT OVERSEAS
TEACHERS PAY AND PERSONNEL PRACTICES ACT (73
STAT. 217; 5 U.S.C. 2358(b))
5t c. 10. (a)***
(b) In the case of any teacher who---
(1) is performing services as a teacher at the close of a school
year,
(2) agrees in writing to serve as a teacher for the next school
year, and
(3) is employed in another position in the recess period imme-
diately preceding such next school year, or, during such recess
period, receives quarters, allowances, or additional compensation
referred to in sections 7 and 8 of this Act, or both, as the case
may be,
section [2 of the Act of July 31, 1894 (5 U.S.C. 62), relative to the
holding of more than one office, section 6 of the Act of May 10, 1916
(5 U.S.C. 58 and 59), relative to double salaries, and any other law
relating to the receipt of more than one salary or the holding of more
than one office] 301 of the Dual Compensation Act of 1963 shall not
apply to such teacher by reason of any such employment during a
recess period or any suchreceipt of quarters, allowances, or additional
compensation, or both, as the case may be.
SECTION 102 OF CHAPTER 7 OF TITLE 2, CANAL ZONE CODE
(76A STAT. 15)
? 102. Exemption or teachers with respect to dual offices and double salaries
[Section 2 of the Legislative, Executive, and Judicial Appropriation
Act, approved July 31, 1894, as amended (28 Stat. 205; 5 U.S.C., see.
62), and section 6 of the Legislative, Executive, and Judicial Appro-
priation Act, approved May 10, 1916, as amended (39 'Stet. 120; 5
U.S.C., sec. 58), do] Section. 301 of the Dual Compensation Act of 1963
does not. apply to teachers in the. public schools of the Canal Zone who
are also employed in night schools or in vacation schools or programs.
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SECTION 23(b) OF TITLE 13, UNITED STATES CODE
? 23. Additional officers and employees
(a) * * *
(b) In addition to employees of the Department of Commerce,
employees of other departments and independent offices of the Govern-
ment may, with the consent of the head of the respective department,
or office, be employed and compensated for field work in connection
with the work provided for by law without regard to section 801 of the
Dual Compensation Act of 1963.
SUBSECTIONS (a) AND (c) OF SECTION 3335 OF TITLE 39,
UNITED STATES CODE
? 3335. Dual employment and extra duties
(a) The Postmaster General may appoint an employee to more
than one position and he shall pay compensation at the rate provided
by law for each position, without regard to the provisions of [sections
58, 62, 69, and 70 of title 5] sections 69 and 70 of title 5 and section 301 of
the Dual Compensation Act of 1963.
(c) The Postmaster General, with the consent of the Administra-
tor of General Services, may appoint custodial employees working
under the jurisdiction of the General Services Administration at
Federal buildings occupied in part by the Postal Service to positions
in the Postal Service to perform postal duties in addition to their,
regular duties as custodial employees, and he shall pay compensation
to them at the rate provided by law without regard to [sections 58,
62, 69, and 70 of title 5] sections 69 and 70 of title 5 and section 301 of
the Dual Compensation Act of 1963.
SECTION 1763 OF THE REVISED STATUTES (5 U.S.C. 58)
[SEC. 1763. No person who holds an office, the salary or annual
compensation attached to which amounts to the sum of two thousand
five hundred dollars, shall receive compensation for discharging the
duties of any other office, unless expressly authorized by law.]
SECTION 2074 OF THE REVISED STATUTES (25 U.S.C. 50)
[SEC. 2074. No person shall hold more than one office at the same
time under this Title, nor shall any agent, sub-agent, interpreter, or
person employed under this Title, receive his salary while absent from
his agency or employment, without leave of the superintendent, or
Secretary of the Interior; but such absence shall at no time exceed
sixty days.]
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ACT OF JULY 27, 1882 (22 STAT. 176)
[AN ACT To authorize the preparation and publication of a classified, analytical,
and descriptive catalogue of all government publications from July fourth,
seventeen hundred and seventy-six, to March fourth, eighteen hundred and
eighty-one
[Be it enacted by the Senate and Mouse of Representatives of the United
States of America in Con press assembled, That there be prepared and
published, under the direction of the Joint Committee on Printing, a
classified, analytical, and descriptive catalogue of all publications made
by the authority of the Government of the United States and the pre-
ceding government of the Colonies, and all departments, bureaus, and
offices thereof, from July fourth, seventeen hundred and seventy-six, to
March fourth, eighteen hundred and eighty-one; and upon the request
of the said joint committee, the officers of the Senate and House of
Representatives, and the heads of all the executive departments and of
all the bureaus and offices thereof, shall furnish to said joint commit-
tee all such information and assistance in reference to said publications
as will facilitate or assist in the completion of said work; and the sum
of ten thousand dollars is hereby appropriated for the purposes of this
act which sum may be expended as additional pay or compensation to
any officer or employe of the United States.]
TIIE SENTENCE IN THE ACT OF FEBRUARY 25, 1885
(23 STAT. 329)
[And hereafter no consul or consul-general shall be entitled to or
allowed any part. of any salary appropriated for payment. of a secre-
tary or second secretary of legation or an interpreter.]
SECTION 4395 OF THE REVISED STATUTES AS AMENDED
BY THE ACT OF JANUARY 20, 1888 (25 STAT. 1)
Sr:c. 4395. That there shall be appointed by the President, by and
wit. the advice and consent of the Senate, a person of scientific and
practical acquaintance with the fish and fisheries to be a Commissioner
of Fish and Fisheries, and he shall receive a salary at the rate of five
thousand dollars a year, and he shall be removable at the pleasure of
the President. Said Commissioner shall not hold any other office or
employment under the authority of the United States or any State.]
JOINT RESOLUTION [NO. 3] OF FEBRUARY 5, 1889
(25 STAT. 1019)
[JOINT RESOLUTION Accepting the invitation of the Imperial German Gov-
ernment to the Government of the United States to become a party to the
International Geodetic Association
[Whereas, time Government of the United States has been invited
by the Imperial German Government to become a party to Lite Inter-
national Geodetic Association: Therefore,
[Ite.solved by the Senate and House of Representatives of the United
States of America in Congress assembled, That the -President be, and
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he is hereby, requested and authorized to accept said invitation, and
that he is hereby authorized and requested to appoint a delegate, who
shall be an officer of the United States Geodetic and Coast Survey,
to attend the next meeting of said International Geodetic Association,
but no extra salary or additional compensation shall be paid to such
by reason of such attendance.]
SECTION 2 OF THE ACT OF JULY 31, 1894 (28 STAT. 205), AS
AMENDED BY THE ACT OF MAY 31, 1924 (43 STAT. 245), BY
SECTION 6 OF THE ACT OF JULY 30, 1937 (50 STAT. 549),
AND BY THE ACT OF JUNE 25, 1938 (52 STAT. 1194), RE-
LATING TO THE HOLDING OF TWO OFFICES (5 U.S.C. 62)
[Sxc. 2. That the pay of assistant messengers, firemen, watchmen,
laborers, and charwomen provided for in this Act, unless otherwise
s pecially stated, shall be as follows : For assistant messengers, firemen,
and watchmen, at the rate of seven hundred and twenty dollars per
annum each; for laborers, at the rate of six hundred and sixty dollars
per annum each, and for charwomen, at the rate of two hundred and
forty dollars per annum each. No person who holds an office the sal-
ary or annual compensation attached to which amounts to the sum of
two thousand five hundred dollars shall be appointed to or hold any
other office to which compensation is attached unless specially hereto-
fore or hereafter specially authorized thereto by law; but this shall not
apply to retired officers of the Army, Navy, Marine Corps or Coast
Guard whenever they may be elected to public office or whenever the
.President shall appoint them to office by and with the advice and
consent of the Senate. Retired enlisted men of the Army, Navy
Marine Corps, or Coast Guard retired for any cause, and retired
officers of the Army, Navy, Marine Corps, or Coast Guard who have
been retired for injuries received in battle or for injuries or incapacity
incurred in line of duty shall not, within the meaning of this section,
be construed to hold or to have held an office during such retirement.]
THE FIFTH PARAGRAPH OF THE ACT OF FEBRUARY 20, 1895
(28 STAT. 676)
[The compensation of said commissioners shall be fixed by the
Secretary of the Treasury, but the same shall not exceed six dollars
per day and actual traveling expenses: Provided, however, That the
member of said commission appointed from the Treasury Department
shall be paid only his actual traveling expenses.]
SECTION 7 OF THE ACT OF JUNE 3, 1896 (29 STAT. 235; 5
U.S.C. 63)
[SEC. 7. That section two of the Act making appropriations for
the legislative, executive, and judicial expenses of the Government
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for the fiscal year ending June thirtieth, eighteen hundred and ninety-
five, and for other purposes, approved duly thirty-first, eighteen
hundred and ninety-four, shall not be so construed as to prevent the
employment of any retired officer of the Army or Navy to do work
under the direction of the Chief of Engineers of the United States
Army in connection with the improvement of rivers and harbors of
the United States, or the payment by the proper officer of the Treasury
of any amounts agreed upon as compensation for such employment.)
SECTION 7 OF TIIE ACT OF JUNE 28, 1902 (32 STAT. 483)
[Sac. 7. That to enable the President to construct the canal and
works appurtenant thereto as provided in this Act, there is hereby
created the Isthmian Canal Commission, the same to be composed of
seven members, who shall be nominated and appointed by the Presi-
dent, by and with the advice and consent of the Senate, and who shall
serve until the completion of said canal unless sooner removed by the
President, and one of whom shall be named as the chairman of said
Commission. Of the seven members of said Commission at least four
of them shall be persons learned and skilled in the science of engineer-
ing, and of the four at least. one shall be an officer of the United States
Army, and at, least one other shall be an officer of the United States
Navy, the said officers respectively being either upon the active or the
retired list of the Army or of the Navy. Said commissioners shall
each receive such compensation as the President shall prescribe until
the same shall have been otherwise fixed by the Congress. In addi-
tion to the members of said Isthmian Canal Commission, the President
is hereby authorized through said Commission to employ in said serv-
ice any of the engineers of the United States Army at his discretion
and likewise to employ any engineers in civil life., at his discretion, and
any other persons necessary for the proper and expeditious prosecu-
tion of said work. The compensation of kill such engineers and other
persons employed under this Act shall be fixed by said Commission,
subject to the approval of the President. The official salary of any
officer appointed or employed under this Act shall be deducted from
the amount. of salary or compensation provided by or which shall be
fixed under the terrors of this Act. Said Commission shall in all mat-
ters be subject to the direction and control of the President, and shall
make to the President annually and at such other periods as may be
required. either by law or by the order of the President, full and com-
plete reports of all their acting and doings and of all moneys received
and expended in the construction of said work and in the performance
of their duties in connection therewith, which said reports shall be by
the President t-ransutitted to Congress. And the said Commission
shall fturtheritiore give to Congress, or either House of Congress, such
information its may at any time be required either by Act of Congress
or by the order of either House of Congress. The President shall
cause to be provided and assigned for tlie use of the Commission such
offices as may, with the suitable equipment of the siune, be necessary
and proper, in his discretion, for the proper discharge of the duties
thereof.]
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THE PARAGRAPH OF THE ACT OF MARCH 4, 1909 (35 STAT.
931), RELATING TO THE PAY OF RETIRED ARMY AND
NAVY OFFICERS AND ENLISTED MEN THEN IN THE EM-
PLOY OF THE ISTHMIAN CANAL COMMISSION
[Authority is hereby granted for the payment of salaries and wages
accrued or hereafter earned of retired army and navy officers and
enlisted men now in the employment of the Isthmian Canal Commis-
sion, in addition to their retired pay, where their compensation under
such employment does not exceed two thousand five hundred dollars
per annum.]
THE SECOND PARAGRAPH UNDER THE CENTER HEADING
"THE' ISTHMIAN CANAL" WITH THE SIDE HEADING
"NATIONAL WATERWAYS COMMISSION:" IN THE ACT
OF AUGUST 5, 1909 (36 STAT. 130)
[NATIONAL WATERWAYS COMMISSION: Any officer or employee of
the Goyerpment heretofore or hereafter. employed by the National
Waterways Commission not to exceed three persons at any one time
may receive compensation for such employment from the money
appropriated for said commission, notwithstanding the provisions of
Revised Statutes, sections seventeen hundred and sixty-three, seven-
teen hundred and sixty-four, and seventeen hundred and sixty-five,
and the Act approved July thirty-first, eighteen hundred and ninety-
four, entitled "An Act making appropriations for the legislative,
executive, and judicial expenses of'the Government for the fiscal
year ending June thirtieth, nineteen hundred and five, and for other
purposes," and any other law whatsoever relating to such employ-
ment and compensation; and, in addition to the traveling and other
expenses of members of the commission and their employees, the
actual necessary expenses of persons detailed by any department or
bureau of the Government while accompanying said commission on
any inspection trip in the United States or elsewhere may be paid
from the money appropriated for said commission.]
SECTION 12 OF THE ACT OF AUGUST 20, 1912 (37 STAT. 319;
7 U.S.C. 165)
[SEC. 12. That for the purpose of carrying out the provisions of
this Act there shall be appointed by the Secretary of Agriculture from
existing bureaus and offices in the Department of Agriculture, includ-
ing the Bureau of Entomology, the Bureau of Plant Industry, and the
Forest Service, a Federal Horticultural Board consisting of five
members, of whom not more than two shall be appointed from any
one bureau or office, and who shall serve without additional compen-
sation.]
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40 DUAL COMPENSATION ACT
SECTION 6 OF TIIE ACT OF MAY 10, 1916 (39 STAT. 120; 5
U.S.C. 58), AS AMENDED BY TIIE ACT OF AUGUST 29, 1916
(39 STAT. 582; 5 U.S.C. 59)
[SEC. 6. That unless otherwise specially authorized by law, no
money appropriated by this or any other Act shall be available for
payment to any person receiving more than one salary when the
combined amount of said salaries exceeds the sum of $2,000 per
annum, but this shall not apply to retired officers or enlisted men of
the Army, Navy, Marine Corps, or Coast, Guard, or to officers and
enlisted men of the Organized .Militia and Naval Militia in the several
States, Territories, and the District of Columbia: Prof ided, That no
such retired officer, officer, or enlisted man shall be denied or deprived
of any of his pay, salary, or compensation as such, or of any other
salary or compensation for services heretofore rendered, by reason
of any decision or construction of said section six.]
SECTION 8 OF THE ACT OF ZARCII 21, 1918 (40 STAT. 455-456)
[SEC. S. That i-he President, may execute any of the powers herein
and heretofore gr:inl-ed him with relation to Federal control through
such agencies as he may determine, and may fix the reasonable
compensation for the performance of services in connect-ion there-
with, and may avail himsc-lf of the advice, assistance, and coopera-
tion of the Interstate Commerce Commission and of the members
and employees thereof, and may also call upon any department, com-
mis.Gion, or board of the Government for such services as he may
dean expedient. But no such official or employee of the United
States shall receive any additional compensation for such services
except as now permitted by law.]
SECTICNS 3 AND 4 OF THE WAR. FINANCE CORPORATION
ACr (40 STAT. 507; 15 U.S.C. 333 AND 334)
[SFC. 3. That the management of the Corporation shall be vested
in a board of directors, consisting of the Secretary of the Treasury,
who shall be chairman of the b card, and four other persons, to be
appointed by the President of the United States, by and with the
advice and consent of the Senate. No director, officer, attorney,
agent, or employee of the Corporation shall in any manner, directly
or indirectly, participate in the determination of any question
affecting his personal interests, or the interests of any corporation,
partnership, or association, in which he is directly or indirectly
interested; and each director shall devote his timne-, not otherwise
required by the business of the United States, principally to the
business of the Corporation. Before entering upon his duties, each
of the four directors so appointed, and each officer, shall take an
oath faithfully to discharge the duties of his office. Nothing con-
tained in this or any other Act shall be construed to prevent the
appointment as a director of the Corporation of any officer or em-
ployee under the United States or of a director of a Federal reserve
bank.
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[Of the four directors so appointed, the President of the United
States shall designate two to serve for two years, and two for four
years; and thereafter each director so apppointed shall serve for four
years. Whenever a vacancy shall occur among the directors so
appointed, the person appointed director to fill any such vacancy
shall hold office for the unexpired term of the member whose place
he is selected to fill. Any director shall be subject to removal by
the President of the United States. Three members of the board
of directors shall constitute a quorum for the transaction of business.
[SEC. 4. That the four directors of the Corporation appointed as
hereinbefore provided shall receive annual salaries, payable monthly,
of $12,000. Any director receiving from the United States any
salary or compensation for services shall not receive as salary from
the Corporation any amount which, together with any salary or
compensation received from the United States, would make the
total amount paid to him by the United States and by the Corporation
exceed $12,000.]
THE LAST PARAGRAPH UNDER THE HEADING "DISTRICT
OF COLUMBIA." AND UNDER THE SUBHEADING "PUBLIC
SCHOOLS." CONTAINED IN THE FIRST SECTION OF THE
ACT OF JULY 8,,1918 (40 STAT. 823; D.C. CODE, SEC. 31-631)
DISTRICT OF COLUMBIA.
PUBLIC SCHOOLS.
* * * * * * *
[Section six of the legislative, executive, and judicial appropria-
tion Act, approved May tenth, nineteen hundred and sixteen, as
amended, shall not apply to employees of the community center de-
partment of the public schools of the District of Columbia.]
THE NINTH PARAGRAPH UNDER THE HEADING "DISTRICT
OF COLUMBIA." AND UNDER THE SUBHEADING "PUFLIC
SCHOOLS." CONTAINED IN THE FIRST SECTION OF THE
THIRD DEFICIENCY ACT, FISCAL YEAR 1920 (41 STAT.
1017; D.C. CODE, SEC. 31-631)
DISTRICT OF COLUMBIA.
* * * * *
PUBLIC SCHOOLS.
* * * * * * *
[Section 6 of the Legislative, Executive, and Judicial Appropria-
tion Act approved May 10, 1916, as amended, shall not apply to em-
ployees of the school garden department of the public schools of the
District of Columbia.]
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42 DUAL COMPENSATION ACT
THE PROVISO CONTAINED IN THE PARAGRAPH UNDER THE
HEADING "BUREAU OF THE BUDGET" IN THE ACT OF
FEBRUARY 17, 1922 (42 STAT. 373; 5 U.S.C. 64)
Director, $10,000: [Provided, That section 2 of the Act making
appropriations for the legislative, executive, and judicial expenses
of the Government for the fiscal year ending June 30, 1895, and for
other purposes, approved July 31, 1894, shall not be construed as
having application to retired officers of the Army, Navy, Marine Corps,
or Coast Guard who may be appointed to the offices created by section
207 of the Budget and Accounting Act, 1921, approved Juno 10,
1921, within the meaning of precluding payment to such officers of
the difference in pay prescribed for such offices and their retired pay;]
Assistant Director, $7,500; for all other necessary expenses of the
bureau, including compensation of attorneys and other employees
in the District of Columbia, printing, binding-, telegrams, telephone
service, law books, boob of reference, periodicals, stationery, furni-
ture, office equipment, other supplies, traveling expenses, street car
fares, per diem in lieu of subsistence not exceeding $4 for officers and
employees while absent from the seat of government on official duty,
$137,300; in all $154,800.
SECTION 212 OF THE ACT OF JUNE 30, 1932 (47 STAT. 406),
AS AMENDED BY SECTION 3 OF THE ACT OF JULY 15, 1940
(54 STAT. 761), BY TIIE ACT OF FEBRUARY 20, 1954 (68
STAT. 18), BY SECTION 2 OF TILE ACT OF AUGUST 4, 1955
(69 STAT. 498), BY SECTION 2201(11) OF THE ACT OF JUNE
17, 1957 (71 STAT. 158), AND BY SECTION 13(d) OF THE
ACT OF SEPTEMBER 2, 1958 (72 STAT. 1264)
[LIMITATIONS ON AMOUNT OF RETIRED PAY
[SEc. 212. (a) After the date of the enactment of this Act, no
person holding a civilian office or position, appointive or elective,
under the United States Government or the municipal government
of the District of Columbia or under any corporation, the majority
of the stock of which is owned by the United States, shall be entitled,
during the period of such incuniLency, to retired pay from the United
States for or on account of services as a commissioned officer in any
of the services mentioned in the Pay Adjustment Act of 1922 [U.S.C.,
title 37], at a rate in excess of an amount which when combined
with the annual rate of compensation from such civilian office or
position, makes the total rate from both sources more than $10,000;
and when the retired pay amounts to or exceeds the rate of $10,000
per annum such person shall be entitled to the pay of the. civilian
office or position or the retired pay, whichever he may elect. As
used in this section, the term "retired pay" shall be construed to
include credits for all service that la w'fully may enter into the com-
putation thereof.
[(b) This section shall not apply to any person whose retired pay,
plus civilian pay, amounts to less than $10,000: Provided, That this
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DUAL COMPENSATION ACT 0Q0 4
section shall not apply to any regular or emergency commissioned
officer retired for disability (1) incurred in combat with an enemy of
the United States, or (2) caused by an instrumentality of war and
incurred in line of duty during a period of war (as that term is used
in chapter 11 of title 38, United States Code).]
ACT OF SEPTEMBER 13, 1940 (54 STAT. 885)
[JOINT RESOLUTION To authorize Jesse H. Jones, Federal Loan Adminis-
trator, to be appointed to, and to perform the duties of, the Office of Secretary
of Commerce
[Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That notwithstanding any
provision of law to the contrary, Jesse II. Jones, Federal Loan Admin-
istrator, may continue in such office and be appointed to, in the
manner now provided by law, and may exercise the duties of the Office
of Secretary of Commerce: Provided, That the total compensation to
be paid him as Secretary of Commerce and as Federal Loan Admin-
istrator shall be that provided by law for the Secretary of Commerce.]
ACT OF MARCH 29, 1945 (59 STAT. 38)
[JOINT RESOLUTION Providing for the employment of Government employ-
ees for folding speeches and pamphlets, House of Representatives
[Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That notwithstanding the
provisions of the Act of May 10, 1916, as amended by the Act of
August 29, 1916, the Doorkeeper of the House of Representatives is
hereby authorized during the Seventy-ninth Congress to employ,
whenever necessary, the services of Government employees for fold-
ing speeches and pamphlets at the prevailing rates provided by law.]
ACT OF AUGUST 10, 1946 (60 STAT. 978), AS AMENDED BY
THE ACT OF OCTOBER 29, 1951 (65 STAT. 662)
[AN ACT To authorize the Veterans' Administration to appoint and employ
retired officers without affecting their retired status, and for other purposes
[Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That notwithstand-
ing section 2 of the Act of July 31, 1894 (28 Stat. 205), as amended
(5 U.S.C. 62), or section 6 of the Act of May 10, 1916 (39 Stat. 120),
as amended (5 U.S.C. 58, 59), the Administrator of Veterans' Affairs
may appoint to, and employ in, any civilian office or position in the
Veterans' Administration, and pay, any retired commissioned officer,
or retired warrant officer, of the Army, Navy, Marine Corps, Coast
Guard, Coast and Geodetic Survey, and Public Health Service. The
retired status, office, rank, and grade of retired commissioned officers,
or retired warrant officers, so appointed or employed and, except as
provided in section 212 of the Act of June 30, 1932 (47 Stat. 406), as
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DUAL COMTENSATION ACT
amended (5 U.S.C. 59a), any emolutnent, perquisite, right, privilege,
or benefit incident to or arising out of any such status, office, rank, or
grade, shall be in no way affected by reason of such appointment to
or employment in, or by reason of service in, or acceptance or holding
of, any civilian office or position in the Veterans' Administration or
the receipt of the pay thereof.
[St.:c. 2. The authority to employ retired commissioned officers or
retired warrant officers contained in section 1 of this Act shall be
effective for a period of ten years from the date of enactment.]
THE FIFTH SENTENCE OF SECTION 3 OF THE RECONSTRUC-
TION FINANCE CORPORATION ACT, AS IN EFFECT ON
JUNE 30, 1947 (47 STAT. 6), AND AS CONTINUED BY SEC-
TION 3(a) OF SUCH ACT, AS AMENDED (61 STAT. 203, 62
STAT. 262; 15 U.S.C. 603(a))
SEc. 3. * * *
[Nothing contained in this or in any other Act shall be construed to
prevent the appointment and compensation as an employee of the
corporation of any officer or employee of the United States in any
board, commission, independent establishment, or executive depart-
ment thereof.]
SECTION 2 OF THE ACT OF JULY 11, 1947 (61 STAT. 311; D.C.
CODE, SEC. 4-183)
Sic. 2. Notwithstanding the limitations of existing law, the said
Commissioners may appoint to, and employ in, the position of director
of such band, any retired officer of the United States Army, Navy
Marine Corps, or Coast Guard, and such retired officer shall lie entitled
to receive, in addition to his retired pay, the compensation authorized
by this Act to be paid to such director, such additional compensation
to be payable from District of Columbia. appropriations.]
SECTION 3 OF TIIE ACT OF APRIL 21, 1948, AS AMENDED
(7 U.S.C. 438)
[SFc. 3. Until December 31, 1949,1 the Secretary of the Array may
detail to the Department, of Agriculture such military personnel, in-
cluding officers in the Veterinary Corps of the :Medical Department, as
he may determine with the Secretary of Agriculture to be desirable to
effectuate the purposes of this Act or to safeguard the interest of the
United States. Notwithstanding the limitations contained in existing
law, retired officer personnel of the Department of the Army, if
employed by the Department of Agriculture for the purposes of this
Act only, may receive in addition to their retired pay civilian salary
to the extent that the total from both sources does not exceed the pay
and allowances received by such persons in the permanent grade last
held by theta prior to retirement.]
''rho authority of section 3 was continued until December 31, 1949, by Department of Agriculture Appro-
priatton Act, 1950.
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SECTION 9 OF THE ACT OF JUNE 4, 1948 (62 STAT. 342; D.C.
CODE, SEC. 2-1709)
SEC. 9. The Armory Board is authorized to employ and fix the
compensation and term of a manager and such personnel as may be
necessary in connection with the operation of the armory for the
secondary purposes of this Act without regard to the provisions of
.the civil-service laws and Classification Act of 1023, as amended [, and
without regard to any prohibition against double salaries contained in
any other law]. Under the direction of the Board and with written
authorization signed by the members thereof, said manager may
exercise such of the powers vested in the Board by section 6 of this
Act as the Board shall determine.
SECTION 5(f) OF THE CENTRAL INTELLIGENCE AGENCY
ACT OF 1949, AS AMENDED (65 STAT. 89, 72 STAT. 337;
50 U.S.C. 403f(f)) 1
GENERAL AUTHORITIES
SEC. 5. In the performance of its functions, the Central Intelligence
Agency is authorized to-
* * * * * * *
[(f) (1) Notwithstanding section 2 of the Act of July 31, 1894
(28 Stat. 205), as amended (5 U.S.C.A. 62), or any other law pro-
hibiting the employment of any retired commissioned or warrant
officer of the armed services, the Agency is hereby authorized to
employ and to pay the compensation of not more than fifteen retired
officers or warrant officers of the armed services while performing
service for the Agency, but while so serving such retired officer or
warrant officer will be entitled to receive only the compensation of
his position with the Agency, or his retired pay, whichever he may
elect.
[(2) Nothing in this section shall limit or affect the appointment
of and payment of compensation to retired officers or warrant officers
.not presently or hereafter prohibited by law.]
SECTION 103 OF THE AMERICAN-MEXICAN TREATY ACT
OF 1950 (64 STAT. 847)
SEC. 103. There are hereby authorized to be appropriated to the
Department of State for the use of the Commission, out of any money
in the Treasury not otherwise appropriated, such sums as may be
necessary to carry out the provisions of the Treaty of February 3,
1944, and other treaties and conventions between the United States
of America and the United Mexican States, under which the United
States Section operates, and to discharge the statutory functions and
duties of the United States Section. Such sums shall be available for
Section 5(f) of the Central Intelligence Agency Act was formerly section 6(f) of such Act and was
redesignated as section 5(f) of such Act by section 21(b)(2) of the Government Employees Training Act
(72 Stat. 337; Public Law 85-507).
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construction, operation and maintenance of stream gaging stations,
and their equipment, and sites therefor; personal services and rent in
the District of Columbia and elsewhere; services, including those of
attorneys and appraisers, in accordance with the provisions of Sec-
tion 15 of the Act of August 2, 1946 (5 U.S.C., see. 55a), at rates for
individuals not in excess of $100 per diem and the United States Com-
missioner is hereby authorized, notwithstanding the provisions of any
other Act, to employ as consultants by contract or otherwise without
regard to the Classification Act of 1949, as amended, and the civil-
service laws and regulations, retired personnel of the Armed Forces
of the United States, who shall not be required to revert to an active
status [, and who shall be entitled to receive, as compensation for such
temporary service, the difference between the rates of pay established
therefor and their retired pay during the period or periods of such
temporary employment]; travel expense, including, in the discretion of
the Commissioner, expenses of attendance at meetings of organiza-
tions concerned with the activities of the Commission which may be
necessary for the efficient discharge of the responsibilities of the Com-
mission;hire, with or without personal services, of work animals, and
animal-drawn and motor-propelled (including passenger) vehicles
and aircraft and equipment; acquisition by donation, purchase, or
condemnation, of real and personal property, including expenses of
abstracts, certificates of title, and recording fees; purchase of ice and
drinking water; inspection of equipment,, supplies and materials by
contract or otherwise; drilling antesting of foundations and dam
sites, by contract if deemed necessary; payment for official telephone
service in the field in case of official telephones installed in private
houses when authorized under regulations established by the Commis-
sioner; purchase of firearms and ammunition for guard purposes; and
such other objects and purposes as may be permitted by laws appli-
cable, in whole or in part, to the United States Section: Proved,
That, when appropriations have been made for the commencement or
continuation of construction or operation and maintenance of any such
project, the United States Commissioner, notwithstanding the provi-
sions of sections 3679, 3732, and 3733 of the Revised Statutes or any
other law, may enter into contracts beyond the amount actually appro-
priated for so much of the work on any such authorized project as
the physical .and orderly sequence of construction makes necessary,
such contracts to be subject to and dependent upon future appropria-
tions by Congress.
SECTION 401(a) OF TILE FEDERAL CIVIL DEFENSE ACT OF
1950, AS AMENDED (64 STAT. 1254; 50 U.S.C. APP. 2253(a))
SEC. 401. For the ppurpose of carrying out his powers and duties
under this Act, the Administrator is authorized to--
(a) employ civilian personnel for duty in the United States,
including the District of Columbia, or elsewhere, subject to the
civil-service laws, and to fix the compensation of such personnel
in accordance with the Classification Act of 1949, as amended;
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[and, notwithstanding the provisions of any other law, except
those imposing restrictions upon dual compensation, employ,
in a civilian capacity, with the approval of the President, not to
exceed twenty-five retired personnel of the armed services on a
full- or part-time basis without loss or reduction of or prejudice
to their retired status;]
`SUBPARAGRAPH (g) OF THE THIRD PARAGRAPH OF THE
ACT OF AUGUST 5, 1953 (67 STAT. 366), AS AMENDED BY
THE ACT OF AUGUST 9, 1955 (69 STAT. 590), AND BY THE
ACT OF AUGUST 28, 1957 (71 STAT. 457)
[(g) Notwithstanding section 2 of the Act of July 31, 1894, as
amended (5 U.S.C. 62), section 212 of the Act of June 30, 1932, as
amended (5 U.S.C., 59a) or any other Federal law, one retired offi-
cer of the services mentioned in the Career Compensation Act of
1949 may be appointed to any civilian office or position in the Cor-
regidor-BataanMemorial Commission created by the Act of August 5,
1953, as amended (36 U.S.C. 426), for a period of not to exceed five
years, and receive retired pay as a retired officer and civilian compen-
sation concurrently. The retired status, office, rank, or grade such
retired officer may occupy or hold, or any emolument, prerequisite,
right, privilege, or benefit, incident to or arising out of such status,
office, rank or grade, shall be in no way affected by reason of such
appointment to or employment in such Commission.]
SECTION 12 OF THE DISTRICT OF COLUMBIA TEACHERS'
SALARY ACT OF 1955 (69 STAT. 529; D.C. CODE, SEC. 31-1541)
[SEC. 12. Notwithstanding any law or regulation to the contrary,
the Board, on the written recommendation of the Superintendent of
Schools, may employ not more than fifteen retired members of the
armed services of the United States as teachers of military science
and tactics in the public high schools of the District of Columbia, and
such teachers so employed shall be entitled to compensation in accord-
ance with the salary schedules in section 1 of this Act, in addition to
their retired pay and allowances.]
SECTION 8 OF THE ACT OF SEPTEMBER 7, 1957 (71 STAT.
628; 36 U.S.C. 748)
[SEC. S. Notwithstanding section 2, of the Act of July 31, 1894
(28 Stat. 205), as amended (5 U.S.C. 62), or section 6 of the Act of
May 10, 1916 (39 Stat. 120), as amended (5 U.S.C. 58, 59), the
Chairman of the Commission may appoint to, and employ in, any
civilian office or position in the Commission, and pay, any retired
commissioned officer, or retired warrant officer, of the Army, Navy,
Marine Corps, Coast Guard, Coast and Geodetic Survey, or Public
Health Service. The retired status, office, rank, and grade of retired
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commissioned officers or retired warrant officers, so appointed or
employed and, except as provided in section 212 of the Act of Juno
30, 1932 (47 Stat. 406), as amended (5 U.S.C. 59a), any emolu-
ment, perquisite, right, privilege, or benefit incident to or arising out
of any such status, office, rank, or grade, shall be in no way affected
by reason of such appointment to or employnient in, or by reason of
service in, or acceptance or holding of, any civilian office or position
in the Commission or the receipt of the pay thereof.]
SECTION 203(b)(1l) OF THE NATIONAL AERONAUTICS AND
SPACE ACT OF 1958 (72 STAT. 431; 42 U.S.C. 2473(b)(11))
FUNCTIONS OF TIIE ADMINISTRATION
SEc. 203. (a) * * *
(b) In the performance of its functions the Administration is
authorized-
* * * * *
[(11) to employ retired commissioned officers of the armed
forces of the United Staves and compensate them at the rate estab-
lished for the positions occupied by them within the Administra-
tion, subject only to the limitations in pay set forth in section
212 of the Act of June 30, 1932, as amended (5 U.S.C. 59a);]
* * * * * *
SECTION 626(c) OF THE ACT OF SEPTEMBER 4, 1961
(75 STAT. 451; 22 U.S.G. 2386(c))
SEC. 626. EXPERTS, CONSULTANTS, AND RETIRED OFFICERS.--(a)
* * *
[(c) Notwithstanding section 2 of the Act of July 31, 1894, as
amended (5 U.S.C. 62), any retired officer of any of the services
mentioned in the Career Compensation Act of 1949, as amended (37
U.S.C. 231 et. seq.), may hold any office or appointment under this
Act, but (lie compensation of any such retired officer shall he subject
to the provisions of section 212 of Public Law 72-212, as amended.]
SECTION 201(d) OF CHAPTER 7 OF TITLE 2, CANAL ZONE
CODE (76A STAT. 21)
? 201. Compensation of persona in military. naval, or Public Health Service who
serve Canal Zone Government or Panama Canal Company
(a) * **
* * * * * * *
[(d) In the case of persons retired as members of a regular com-
ponent of the armed forces or the Public health Service of the United
States who are appointed to or employed in positions in the Canal
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Zone Government or the Panama Canal Company, the amount of
their retired pay shall be deducted from ? the ? amount of their civilian
salary or compensation. This subsection does not require the deduc-
tion of the retired pay of any warrant officer or enlisted man.]
SECTION 507 OF THE DEPARTMENT OF DEFENSE APPRO-
PRIATION ACT, 1964 (77 STAT. 264; PUBLIC LAW 88-149)
SEC. 507. Appropriations for the Department of Defense for the
current fiscal year shall be available for: (a) donations-of not to
exceed $25 to each prisoner upon each release from confinement in
military or contract prison and to each person discharged for fraudu-
lent enlistment; (b) authorized issues of articles to prisoners, appli-
cants for enlistment and persons in military custody; (c) subsistence
of selective service registrants called for induction, applicants for
enlistment, prisoners, civilian employees as authorized by law, and
supernumeraries when necessitated by emergent military circum-
stances; (d) reimbursement for subsistence of enlisted personnel
while sick in hospitals, (e) expenses of prisoners confined in non-
military facilities; (f) military courts, boards, and commissions; (g)
utility services for buildings erected at private cost, as authorized by
law, and buildings on military reservations authorized by regulations
to be used for welfare and recreational purposes; (h) exchange fees,
and losses in the accounts of disbursing officers or agents in accord-
ance with law; (i) expenses of Latin-American cooperation as au-
thorized for the Navy by law (10 U.S.C. 7208) ; and (j) expenses of
apprehension and delivery of deserters, prisoners, and members
absent without leave, including payment of rewards of not to exceed
$25 in any one case[: Provided, That section 212 of the Act of June 30,
1932 (5 U.S.C. 59a), shall not apply to retired military personnel on
duty at the United States Soldiers' Home].
SECTION 4103(b) OF TITLE 38, UNITED STATES CODE
4103. Appointments and compensation
(A.) ;* * *
(b) The Chief Medical Director shall be the Chief of the Depart-
ment of Medicine and Surgery and shall be directly responsible to
the Administrator for the operations of the Department. He shall
be a qualified doctor of medicine, appointed by the Administrator.
[Section 62 of title 5 of the United States Code shall not apply to any
individual appointed Chief Medical Director before January 1, 1964;
however, section 59a of title 5 shall apply, in accordance with its
terms, to any such individual.] During the period of his service as
s,.ich, the Chief Medical Director shall be paid a salary of $21,050 a
year.
0
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MODERNIZATION OF DUAL-COMPENSATION AND c 0 ('
DUAL-EMPLOYMENT LAWS
HEARING
SUBCOMMITTEE ON CIVIL SERVICE
COMMITTEE ON
POST OFFICE AND CIVIL SERVICE
UNITED STATES SENATE
EIGHTY-EIGHTH CONGRESS
S. 1912 and I.R. 7381
BILLS TO SIMPLIFY, MODERNIZE, AND CONSOLIDATE THE
LAWS RELATING TO THE EMPLOYMENT OF CIVILIANS IN
MORE THAN ONE POSITION AND THE LAWS CONCERNING
THE CIVILIAN EMPLOYMENT OF RETIRED MEMBERS OF
THE UNIFORMED SERVICES, AND FOR OTHER PURPOSES
U.S. GOVERNMENT PRINTING OFFIOE
26-977 WASHINGTON : 1984
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COMMITPEE ON POST OFFICE AND CIVIL SERVICE
OLIN D. JOHNSTON, South Carolina. Chatrnnan
A. S. MIKE MONRONEY, Oklahoma FRANK CARLSON, Kansas
RALPH W. YARBOROT,,GII. Texas HIRAM L. FONG. Hawaii
JENNINGS RANDOLPH, West Virginia J. CALEB BOGGS. Delaware
GALE W. McGEE, Wyoming
DANIEL B. BREWSTER. Maryland
WILLIAM Y. GoLL,soon, Staff DMrcetor and Counsel
RALPH YARBOROUGH, Texas, Chairman
JENNINGS RANDOLPH. West Virginia HIRAM L, FONG, Hawaii
DANI t B. BREWSTER, Maryland J. CALEB BOGGS, Delaware
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CONTENTS
Page
S.1912----------------------------------------------------------- 1
H.R. 7381-------------------------------------------------------- - 8
Civil Service Commission proposed amendments to H.R. 7381 ----------- 30
STATEMENTS
'Bowman, Garrett J., national service director, AM VETS--------------- 93
Brackett, Col. Arthur A., Reserve Officers Association of the United States- 66
Carlton, Col. John T., executive director, Reserve Officers Association of
the United States ------------------------------------------------ 66,67
Denfield, Adm. Louis E. (retired), president, Retired Officers Association_ _ 45
Erickson, John E., national legislative director, Veterans of World War I,
U.S.A.;Inc ------------ ------------ ---------- 64
Griner, John F., president, American Federation of Government Em-
ployees----------------------------------------- --- 51
Henderson, Hon. David N., a Representative in Congress from the State
of North Carolina----------------------------------------------- 91
Huber, Charles L., national director of legislation, Disabled American
Veterans------------------------------------------------------- 95
Keating, Jerome, president, National Association of Letter Carriers ac-
companied by J. Don Kerlin, legislative consultant------------------ 76
Keller, John A., president, Chief Warrant & Warrant Officers Association,
U.S. Coast Guard----------------------------------------------- 104
Macy, Hon. John W., Jr., Chairman, U.S. Civil Service Commission;
accompanied by Hon. Robert E. Hampton, Commissioner; Harold H.
Leich, Chief, Program Planning Division, Bureau of Programs and
Standards; and Frank M. Witham, program planner---------------- 23
McCart, John A., general director, Government Employees' Council of the
AFL-CIO------------------------------------------------------ 72
Means, Robert A., national secretary, Fleet Reserve Association--__--___ 59
Mears, John S., assistant director, National Legislative Commission, the
American Legion------------------------------------------------ 49
Puskar, Charles E., executive secretary-treasurer, National Association of
Postmasters----------------------------------------------------- 93
Rambeau, Col. Jackson V., U.S. Air Force (retired), director of military
relations, Air Force Association------------------------------------ 69
Rein, William M., master sergeant, U.S. Army (retired), legislative repre-
sentative, Association of Regular Army Sergeants-------------------- 64
Stafford, Maj. Thomas L., U.S. Army (retired)________________________ 78
Stover, Francis W., director, National Legislative Service, Veterans of
Foreign Wars of the United States____________________ 56
Webb, James E., Administrator, National Aeronautics and Space Admin-
istration ------------------------------------------------------- 82
Weber, Frank, national president, Warrant Officers Association of the
United States of America ----------------------------------------- 98
Whall, Col. Winston G., U.S. Army, Assistant Director, Compensation
Affairs, Office of the Assistant Secretary of Defense (Manpower) ------ 37
Zink, Dr. Linas A., Assistant Chief Medical Director, Veterans' Adminis-
tration; accompanied by David A. Turner, Assistant General Counsel;
and A. T. Bronauch, Deputy Assistant General Counsel-------------- 42
STATEMENTS OF ORGANIZATIONS
Air Force Association---------------------------------------------- 69
American Federation of Government Employees_______________________ 51
American Legion -------------------------------------------------- AMVETS---------------------------- ---------------------------- 93
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V CONTENTS
STATEMENTS OF ORGANIZATIONS -Continued
Page
Association of Regular Army Sergeants -------------------------------
64
Chief Warrant & Warrant fficers Association, C.S. Coast Guard ------
104
Civil Service Commission -------------------------------------------
23
Department of Defense---------------------------------------------
37
Disabled American Veterans----------------------------------------
95
Fleet Reserve Association-------------------------------------------
59
Government Employees' Council of the AFT-CIO ---------------------
72
National Aeronautics and Space Administration_______________________
82
National Association of Letter Carriers_______________________________
76
National Association of Postmasters---------------------------------
93
Reserve Officers Association of the United States- ----------------------
66
Retired Officers Association-----------------------------------------
45
Veterans' Administration -------------------------------------------
42
Veterans of Foreign Wars of the United States________________________
56
Veterans of World War I, U.S.A. _ Inc-------------------------------- _
,
64
ssociation of t6 lofted States of -----------
Warrant Oflicera Association
98
EXHIBITS
Gilpatrie, Roswell L., Deputy Secretary of Defense:
Memorandum, dated July 5, 1961, entitled "Employment of Retired
Military Personnel --------------------------------------------
34
Memorandum, dated October 30, 1962, entitled "Em loyment of Re-
tired Military Personnel in Nonappropriab"d Fund Positions"_____
35
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MODERNIZATION OF DUAL-COMPENSATION AND
DUAL-EMPLOYMENT LAWS
THURSDAY, DECEMBER 12, 1963
15.S. SENATE,
SUBCOM_llrl rEE ON CIVIL ,SERVICE OF THE
COMMITTEE ON POST OFFICE AND CIVIL SERVICE,
Washington, D.C.
The subcommittee met at 10 :15 a.m., pursuant to ca11, in room 6202,
New Senate Office Building, Senator Ralph Yarborough (chairman
of the subcommittee) presiding.
Present: Senators Yarborough, Randolph, and Boggs.
Present also: William Gulledge, staff director; David Minton, staff
member; and Frank Paschal, minority clerk.
Senator YAR oizouc II. Gentlemen, the Civil Service Subcommittee
will come to order.
These hearings are convened to hear testimony on S. 1912, a bill to
simplify, modernize, and consolidate the laws relating to the em-
ployment of civilians in more than one position and laws concerning
the civilian employment of retired members of the uniformed services.
T believe this was originally the administration bill. There have
been changes and suggested changes.
A bill similar in design, H.R. 73812 has been reported by the Com-
mittee on Post Office and Civil Service in the House of Representa-
tives and is presently pending before the other body, and in all likeli-
hood will be acted upon before hearings might be completed and
committee action completed here.
(The bills referred to follow:)
[S. 1812, 88th Cong., lot less.]
A BILL To simplify, modernize, and consolidate the laws relating to the employment of
civilians in more than one position and the laws concerning the civilian employment of
retired members of the uniformed services, and for other purposes
Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled, That this Act may be cited as the "Dual
Compensation Act of 1963".
(e) Notwithstanding the provisions of subsection (a) of this section, a re-
tired member of a uniformed service holding a civilian office on. the day before
the effective date of this Act may elect either to remain subject only to the limi-
tations on compensation, if any, applicable to him on the day before the effective
date of this Act (or made applicable to him retroactively by subsection (f) of
this section), or to come within the limitations of this section. Such an election
is irrevocable, and must be filed with the department by which the retired pay
is paid no later than ninety days after the effective date of this Act. A retired
member who does not make a positive election will be considered to have elected
to remain subject to the limitations, if any, applicable on the day before the
effective date of this Act. An election to remain subject to the limitations on
compensation in. effect on the day before the effective date of this Act lapses and
may not be renewed with respect to any reappointment or reinstatement made
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2 DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS
after the effective date of this Act and involving a break in service of more than
thirty days.
(f) A member of the uniformed services serving in the Army or Air Force
of the United States without component-under an appointment made under
section 516 of the Officer Personnel Act of 1047-in a temporary grade higher
or the same as the reserve commission he then held and who prior to the effec-
tive date of this Act was retired for physical disability In such temporary grade
shall not be considered to have been subject to the restriction on the concurrent
receipt. of civilian compensation and retired pay contained in section 212 of the
Act of June 30. 1932, as amended (5 U.B.C. 59a), for any period following such
retirement.
(g) A non-Hegular member of an armed force who served on active duty In a
temporary warrant officer grade, and who was retired in that status prior
to the effective date of this Aet, shall not be considered to have been subject
to the restriction of section 2 of the Act of July 31, 1894, as amended (5 U.B.C.
(;2), for any period before the effective date of this Act.
:SF:c. 10:3. (a) Section 2 of the Veterans' ('reference Act of 194-i (5 U.S.C. 851)
is amended by inserting before the first word of the section the symbol "(a),"
and Immediately followhig the words "preference shall be given" a comma and
the phrase "except as provided by subsection (b),"
(b) Section 2 is further amended by adding Lite following subsection:
"(b) A retired member of a uniformed service, as defined in the Dual Com-
pensation Act of 19Jti3, appointed, or reinstated or reemployed after the effective
date of the Dun] Compensation Act of 19u with it break in service of more
than thirty days, shall be given preference only if (1) his retirement was
based on disability resulting from an injury or disease received in line of duty
as a direct result of armed conflict. or caused by an instrumentality of war
and incurred in )tare of ditty during a period of war (as that term is defined
in 38 U.S.C. 101. 301) ; (2) his retired pay was based on less than six years of
continuous full-ulnae active service not Including periods of active duty for train-
ing ; or (3) his retirement was effected under chapter (37, title 10 of the United
States Code subsequent to such appointment, reinstatement, or reemployment."
TITI.E I-DEFINITUINS AND EM1'T.i);'MENT OF IIETIREl) 3Il'AIBERS
nt"' C\IFORMK-I) SERVICES
Sf;c, 101. As ttsed in this Act-
ta) "member" and "unif,,rnted services" have the definitions given them
by section 101 of title 37, United States Code;
th) "a retired member of a uniformed service" means, unless otherwise
specified, a member or former member of it uniformed service who is entitled,
under any provision of law, to retired, retirement, or retainer pay on account
of his service as a mcnibcr of a uniftrma4l service; and
(c) "civllinn office" meant any civilian office or itosition. appointive or
elective, in the United Statics (:overument. the municipal government of the
District of Columbia, or any eorlsiralion which is owned or controlled by
the United States (;overunient, including temporary. part-lime and inter-
mittent. positions.
Sec. 102.(a) Except as )mtvided by subsections (b), (c), and (d) of this
section, a retired member of a uniformed service shall receive the full salary
of any civilian offiec which be holds haft, (luring it period he is receiving salary,
his retired, rethrment, "r retainer pay shall t.' reduced to an annual rate equal
to the first. $2,000 of such pay plus one-half of the remainder, if any.
(h) The reduction in retired, retirement. or retainer tiny required by subsec-
tion (a) of this section shall not apply to a retired member of it uniformed
service 11) whose retirement was based on disability resulting from an injury
or disease received in line of tlady as a direct result of armed conflict, or caused
by an instruinentiallty of war and incurred in line of duty during a period of war
(as that terns Is defined in 38 U.S.C. 101. 301) ; or (2) whose retired pay was
based on less than six years of continuous full-time active service not including
periods of active duty for training.
(c) The reduction In retired, retirement, or retainer pay required by sub-
section (a) of this section shall not apply to employment of a retired member
of a uniformed service on a temporary, part-time, or Intermittent basis for the
first thirty days of such employment fur which lie receives salary: however, this
subsection shall not apply to more than thirty such days in any fiscal year,
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 3
(d) Exceptions to the restrictions in subsection (a) of this section may be
provided under regulations prescribed by the President whenever it is deter-
mined that exceptions are warranted on the basis of special or emergency Gov-
ernment employment needs which cannot otherwise be readily met.
(c) Section 12 of the Veterans' Preference Act of 1944 (5 U.S.C. 861) is
amended by inserting before the first word the symbol "(a)" and by inserting
in the. first proviso of the first paragraph after the word "That" the words,
"except as provided in subsection (b),".
(d) Section 12 is further amended by adding subsection (b) as follows::
" (b) In computing length of total service, a retired member of a uniformed
service appointed, or reinstated or reemployed with a break in service of more
than thirty days, after the effective date ,of the Dual Compensation Act of 1963,
shall be given credit for the length of time spent in active service in the uni-
formed services only if (1) his retirement was based on disability resulting from
an injury or disease received in line of duty as a direct result of armed conflict,
or caused by an instrumentality of war and incurred in line of duty during a
period of war (as that term is defined in 38 U.S.C. 101, 301) ; (2) his retired
pay was based on less than six years of continuous full-time active service not
including periods of active duty for training; or (3) his retirement was effected
under chapter 67, title 10 of the United States Code subsequent to such appoint-
ment, reinstatement, or reemployment."
'SEC. 104. The portion of section 3(b) of the Civil Service Retirement Act, as
amended (5 U.S.C; 2253(b) ), appearing"beforc the phrase, "for purposes of sec-
tion 9 (c) (1) " is amended to read as follows :
"(b) An employee or Member shall be allowed credit for periods of military
service prior to the date of the separation upon which title to annuity is based ;
however, if the employee or Member is awarded retired pay on account of mili-
tary service, his military service shall not be included except as hereinafter
provided. If the retired pay is awarded on account of disability resulting from
an injury or disease received in line of duty as a direct result of armed conflict,
or caused by an instrumentality of war and incurred in line of duty during a
period of war (as that term is defined in sections 101 and 301 of title 38,
United States Code), his military service shall be included. If the retired pay
is awarded under chapter 67, title 10, United States Code (1) his military
service performed before the effective date of the Dual Compensation Act of
1963 shall be included, and (2) if he has a total of less than six yearn of con-
tinuous active duty (regardless of when performed but not including periods of
active duty for training), his military service performed on and after the
effective date of the Dual Compensation Act of 1963 shall be included. Not-
withstanding the foregoing,".
Sue. 105. The last two sentences of section 203(a) of the Annual and Sick
Leave Act of 1951 (5 U.S.C. 2062(a)) are amended to read as follows: "In
determining years of service for the purposes of this subsection, there shall be
included all service creditable under the provisions of section 3 of the Civil
Service Retirement Act for the purposes of an annuity under such Act and
the determination of the period of service rendered may be made upon the basis
of an affidavit of the employee. Active military service of a retired member
of a uniformed service is not creditable in determining years of service for the
purpose of this subsection unless such military service is creditable under sec-
tion 3(b) of the Civil Service Retirement Act toward annuity concurrently
with receipt of retired pay. In the case of an officer or employee who is not
paid on the basis of biweekly pay periods, the leave provided by this title shall
accrue on the same basis as it would accrue if such officer or employee were paid
on the basis of biweekly pay periods."
TITLE II-LIMITATION ON DUAL COMPENSATION FOR MORE THAN
ONE CIVILIAN OFFICE
SEo;. 201. An officer or employee may not receive basic compensation for
more than one civilian office for more than forty hours' work in any one calen-
dar week (Sunday through Saturday), except as authorized under regulations
of the United States Civil Service Commission, when the Commission deter-
mines that services cannot otherwise be readily obtained.
SEC. 202. Section 201 of this title does not apply to
(1) compensation on a when-actually-employed basis received from more
than one consultant or expert position, as long as such dual compensation
is not received for the same hours of the same day ;
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4 DUAL-COMMPENSATION AND DU L-EMPLOYMENT LAWS
(2) compensation by fees paid on other than a time basis :
(3) compensation received by teachers, school officers, and custodial
employees of the Board of Education of the I}isstrfet, of Columbia for serv-
ices rendered in connection with the operation of night or vacation schools in
the public schools of the District of Columbia ;
(4) compensation received by custodial employees of the Board of Edu-
cation of the District of Columbia for the services rendered in school build-
ings to any Federal department or agency, or any department of the gov-
ernment of the District of Cohin-bin other than the Board of Education,
during Its use of school buildings in accordance with the rules of the Board
of Education governing the use of such buildings ;
(5) compensation received by teachers In the public schools of the Dis-
trict of Columbia for employment during the summer vacation period;
(6) extra compensation paid by the Weather Bureau to employees of
other Government agencies for taking and transmitting meteorological
observations :
(7) compensation pnid by the Department of Commerce to Its employees
and the employees of other departments and independent offices of the
Government who are employed, with the consent of the head of the respective
department or office, in fieldwork In connection with the work provided
for in title 13 of the United States Code, as authorized prior to the enact-
ment of this Act by section 23(b) of title 13, United States Code; and com-
pensation paid to enlisted men and officers of the armed services who may
he appointed and compensated for the enumeration of the personnel of the
Armed Forces, as authorized prior to the enactment of this Act by sec-
tion 24(a) of title 13, United States Code;
(8) extra compensation paid by the Coast and Geodetic Survey to em-
ployees of other Federal agencies making oceanographic observations or
tending seismographs ;
(9) compensation paid to employees of the Library of Congress for per-
forming special functions for which funds have been entrusted to the board
or the Librarian or that are in connection with the cooperative undertakings
of the Library ;
(10) compensation received by persons serving In more than one position
on the effective date of this Act under properly authorized appointments,
so long as such appointments continue ;
(11) any teacher employed under the provisions of the Defense Depart-
ment Overseas Teachers Pay and Personnel Practices Act (5 U.S.C. 2351-
2358) who (1) is performing services as a teacher at the close of a school
year, (2) agrees in writing to serve as a teacher for the next school year, and
(3) is employed in another position In the recess period immediately preced-
ing such next school year, or during such recess period, receives quarters.
allowances, or additional compensation referred to in sections 7 and 8 of
such Act, or both, as the case may be ; and
(12) compensation paid by the United States Coast Guard to employees
occupying part-tiiue positions of lamplighters,
TITLE III-EFFECTIVE DATE, AMENDMENTS AND REPEALERS
Sec. 301, The provisions of this Act take effect on January 1, 1964.
SEO. 302. If any part of this Act shall he found to be unconstitutional, the rest
of it shall be considered as in full force and effect.
Sec. 303. The following parts of laws are amended :
(a) Section 18 of the Art of December 20, 1941, as added by the Act of Au-
gust 19, 1950 (2 D.C. Code 1226), relating to members of the District of Columbia
Boxing Commission, is amended by changing the period to a comma and adding
the following: "except as provided in the Dual Compensation Act of 1963 with
respect to retired personnel of the uniformed services."
(b) Section 29 of the Act of August 10, 1950, as amended (5 U.S.C. 30r),
Is amended by inserting in subsection (e), immediately after the words "Any
Reserve or member of the Nalinnal Guard may accept any civilian position
under the United States or the iistrict of Columbia nnd," the following: "ex-
cept as provided in the Dual compensation Act of 1963 with respect to retired
personnel,"; and by changing the period at the end of subsection (d) to a comma
and adding the following: "except as provided in the Dual Compensation Act
of 11163 with respect to retired personnel."
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 5
(c) Section 3 of the Act of June 20, 1874, 18 Stat. 109, as amended (5 U.S.C.
71), is amended to read as follows : "No officer or employee in any branch
of the public service whose compensation and allowances are fixed by law or
regulation shall receive any additional pay, allowances or perquisites directly
or indirectly in any form whatever for the performance of the duties of his
position unless the same is authorized by law, and no such officer or employee
shall receive any compensation, allowances or perquisites for the discharge
of the duties of any position other than one to which he has been appointed
unless expressly authorized by law."
(d) Subsections (a) and (c) of section 3335, title 39, U.S. Code, are amended
by striking out "sections 58, 62, 69, and 70 of title 5" and substituting in lieu
thereof "section 201 of the Dual Compensation Act of 1903."
(e) Section 102 of title II, Canal Zone Code (70A Stat. 15), is amended by
striking out the language which precedes "not apply to teachers in the public
schools of the Canal Zone who are employed. In night schools or in vacation
schools or programs," and inserting in lieu thereof "Section 201 of the Dual
Compensation Act of 1963 does."
(f) Section 13(b) of the Peace Corps Act, approved September 22, 1961 (75
Stat. 019-020), is amended by striking out the phrase "section 212 of the Act
of June 30, 1932, as amended (5 U.S.C. 59a)," and by changing the period at
the end of the section to a comma and adding the following : "except as pro-
vided in the Dual Compensation Act of 1903."
(g) Section 44 of the Arms Control and Disarmament Act, approved Sep-
tember 26, 1961 (75 Stat. 636), is amended by striking out the phrase "section
212 of the Act of June 30, 1932, as amended (5 U.S.C. 59a)," and by changing
the period at the end of the section to a comma and adding the following:
"except as provided in the Dual Compensation Act of 1903."
(h) Section 626(b), second sentence, of the Act of September 4, 1961 (75
Stat. 451; 22 U.S.C. 2386(b)), relating to. certain service under the Act for
International Development of 1.961 and the International Peace and Security
Act of 1961, is amended by striking out the phrase "section 212 of Public Law
72-212, as amended (5 U.S.C. 59a)," and by changing the period at the end
of the sentence to a comma and adding the following: "except as provided in
the Dual Compensation Act of 1963."
Sac. 304. (a) The following laws and parts of laws are repealed :
(1) Section 1763 of the Revised Statutes (5 U.S.C. 58), relating to the re-
ceipt of compensation from more than one office.
(2) Section 1764 of the Revised Statutes (5 U.S.C. 69), relating to additional
compensation for extra services.
(3) Section 1765 of the Revised Statutes (5 U.S.C. 70), relating to additional
compensation for any person whose salary is fixed by law or regulation.
(4) Section 2074 of the Revised Statutes (25 U.S.C. 50), prohibiting the hold-
ing of two offices under title XXVIII of the Revised Statutes.
(5) The Act of July 27, 1882 (22 Stat. 176), authorizing additional compen-
sation for Government employees engaged in cataloging Government publica-
tions by the Joint Committee on Printing.
(6) The following sentence in the Act of February 25, 1885 (23 Stat. 329)
"And hereafter no consul or consul-general shall be entitled to or allowed any
part of any salary appropriated for payment of a secretary or second secretary
of legation or an interpreter."
(7) The Act of January 20, 1888 (25 Stat. 1), providing for the appointment
of a Commissioner of Fish and Fisheries who shall not hold any other office.
(8) Joint Resolution Numbered 3 of February 5, 1889 (25 Stat. 1019), au-
thorizing the President to appoint an officer of the United States Coast and
Geodetic Survey as a delegate to the International Geodetic Association, who
was to serve without extra salary or additional compensation.
(9) Section 2 of the Act of July 31, 1894 (28 Stat. 205), as amended by the
Act of May 31, 1924 (43 Stat. 245), by section 6 of the Act of July 30, 1937 (50
Stat. 549), and by the Act of June 25, 1938 (52 Stat. 1194), relating to the holding
of two offices (5 U.S.C. 62).
(10) That part of the Act of February 20, 1895 (28 Stat. 676), providing for
the compensation of the members of a commission to recommend the location of
the building authorized by the Act.
(11) Section 7 of the Act of June 3, 1896 (29 Stat. 235; 5 U.S.C. 63), relating
to the employment of retired officers of the Army and Navy in connection with
river and harbor improvements.
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6 DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS
(12) That part of section 7 of the Act of June 28. 1902 (32 Stat. 483), pro-
viding for the appointment and compensation of officers of the Army and Navy
to and under the Isthmian Catutl Commissiin.
(1:3) The paragraph of the Act of March 4, 1909 (35 Stat. 931), relating to
the pay of retired Army and Navy officers and enlisted men then in the employ
of the Isthmian Canal Cummiscion_
(14) The paragraph of the Act of August 5, 1909 (36 Stitt. 130), authorizing
the National Waterways Commission to pay not to exceed three officer; or em-
ployees of the Giiverntuent without regard to the Act of July 31, 1894, and
other laws.
(15) Section 12 of the Act of August 20, 1912 (37 Stat. 319), to appoint
members of it Federal Ilorticultural Board front among the employees of the
Department of Agriculture.
(10) Section 6 of the Act of _llny 10, 1910 (39 Stitt. 120: 5 U.S.C. 58), as
amended by the Act of August 29, 1910 139 Stitt. 582; 5 U.S.C. 59), relating to
double salaries.
(17) Section 1) of the Art of October G, 1917 (40 Stat. 381: 31 D.C. Code 031),
relating to the application of section 111 of the Act of May 10, 1916, to teachers
in the public schools of the Distiii't of Columbia who tilso teach in night schools
and Vacation aaehools.
(18) Section h of the Act of -March 21. 1915 (40 Stat. 45,'--436), authorizing the
President to avail him s if of the assistance of Government employees in the
operation of transportation facilities taken over by the President.
(19) Sections 3 and 4 of the Act of April 3, 1918 (40 Still. 507), authorizing
the appointment of Federal employees to membership on the Bmird of Directors
of the War Finance Corporation and providing for their compensa-tion.
(20) The last paragraph under the heading "l)Istrict of Columbia" and under
the subheading "Public Sell sils" contained in the first section of the Act of July
8, 1918 (40 Still. 823; 31 D.C. Code 1131), relating to the application of section 6
of the Act of May In, 1916, to Vill),toyees of the community center department of
the public schools of the liisl rh t of Coluubia.
(21) The ninth paragraph under the heading "District of Columbia" and
under the subheading "Public Schools" contained in the first section of the Third
Deficiency Act, (isc-al year 1920 (41 Stat. 1017; 31 D.C. Code G31), relating to the
application of section tl of the Act of .fitly 10, 1916, to employees of the school
garden depart nienI of the public schools of the District of Columbia.
(22) The proviso contained in the paragraph under the heading "Bureau of
the Budget" In the Act of February 17. 19222 (42 Stilt. 373; 5 U.S.C. G4), relating
to the application of section 2 of the Act of July 31, 18`91, to retired officers of
the Array, Navy. Marine Corp,s, or Coast Guard appointed to certain offices in
the Bureau of the Budget.
(23) That part of sei ion 6 of the Act of -March 3, 1925 (43 Stitt. 1105), as
amended by the Act of January 27. 1920 (41 Stat. 2), relating to the application
of section C. (if flip Act of May 10, 1916. to employees of the Library of Congress
(2 U.S.C. 16_, , U.S.C. 110), which reads; "; nor shall any additional compensa-
tion so laid to such employees be construed as it double salary under the provi-
sion of section 6 of the Act making appropriations for the legislative, executive.
and judicial expenses of the Government for tie fiscal year ending June 30, 1917,
as amended (39 Stitt. 582)."
(24) Subparagraph (g) of the third paragraph in tie Act of August 5. 1953
(07 Stat. 3(;61, as amended by the Ac-t of August 28, 1957 (71 Stat. 457), relating
to the Corregidor?Batartit Memorial Commission.
(25) The fifth sent ni of sec-Lion 3 of the Reconstruction Finance Corporation
Act, as in effect on June 30, 1947 (47 Stitt. 6), and as continued by section 3(a)
of such Art, as amended (61 Stitt. 203, G2 Star. 262; 15 U.S.C. G03 (a) ), relating
to employees of the IReconaztruction Finance Corporation, which reads: "Nothing
contained in This or in any other Act shall be construed t,, prevent the aploint-
tnent and coinliensatiutt its an employee of the Corpciratioa of any officer or
employee of the United States In any board. coninti..lon, independent establish-
ment, or executive department thereof."
(26) Section 212 of the Act of June 30, 1932 (47 Stat. 406). as amended by
section 3 of the Act of July 15. 1940 (51 Stitt. 761). by the Act of February 20,
1954 (08 Stat. 18), by section 2 of the Act of August 4. 1955 (G9 Stat. 498), by
section 2201(11) of the Art of June 17, 1957 171 Stat. 158). and by section 13(d)
of the Act of September 2. 193; (72 Stitt. 1204). relating to the limitation on
the amount of retired pay received for commissioned ofli'-er service when com-
bined with Government civilian salary (5 U.S.C, 599),
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 7
(27) The Act of September 13, 1940 (54 Stat. 885), authorizing Jesse IT.
Jones, Federal Loan Administrator, to exercise the duties of the Office of Secre-
tary of Commerce.
(28) The Act of July 1, 1942 (56 Stat. 467; 31 D.C. Code 631(a)), relating
to the application of section 6 of the Act of May 10, 1916, to custodial employees
of the -Board of Education of the District of Columbia.
(29) The Act of March 29, 1945 (59 Stat. 38-39), authorizing the Doorkeeper
of the House of Representatives during the Seventy-ninth Congress to employ
Government employees for folding speeches and pamphlets.
(30) The Act of August 10, 1946 (60 Stat. 078), as amended by the Act of
October 29, 1951 (65 Stat. 662), relating to the appointment and employment
of certain retired officers in the Veterans' Administration (5 U.S.C. 64a).
(31) Section 12 of the District of Columbia Teachers' Salary Act of 1955,
approved August 5, 1955 (69 Stat.529), relating to retired members of the
armed services employed as teachers of military science and tactics.
(32) Section 626(e) of the Act of September 4, 1.961 (75 Stat. 451; 22 U.S.C.
2386(c) ), relating to retired officers employed under the Act for International
Development of 1961 or the International Peace and Security Act of 1961.
(33) Subsection (d) of section 201, title IT, Canal Zone Code (76A Stat. 21),
relating to retired members of a regular component of the Armed Forces or the
Public Health Service of the United States employed in the Canal Zone Govern-
ment or the Panama Canal Company.
(34) The first proviso under the heading "Department of the Army" and under
the subheading "Military Personnel" contained in title III of the Department of
Defense Appropriation Act, 1958 (71 Stat. 313; Public Law 85-117), relating
to retired military personnel on duty at the United States Soldiers' Home, which
reads: "Provided, That section 212 of the Act of June 30, 1932 (5 U.S.C. 59a),
shall not apply to retired military personnel on duty at the United States Soldiers'
Home:", and provisions to the same effect contained in other appropriation Acts
enacted prior to the date of the enactment of this Act relative to retired military
personnel on duty at the United States Soldiers' Home (5 U.S.C. 59b).
(35) Section 23 (b) of the Act of August 31, 1954 (68 Stat. 1014), as amended
by section 2 of the Act of September 13, 1.960 (74 Stat. 911), and section 24(c) of
the Act of August 31, 1954 (68 Stat. 1015), as amended by'section 3 of the Act of
September 13, 1960 (74 Stat. 911), relating to the collection of census data (13
U.S.C. 23(h) and 24(c)).
(36) Section 10(b) of the Defense Department Overseas Teachers Pay and
Personnel Practices Act (5 U.S.C. 2358(b) ).
(37) Section 203(b) (11) of the National Aeronautics and Space Act of 1958,
as amended (42 U.S.C. 2473(b) (11) ), authorizing the employment of retired
commissioned officers subject only to the limitations in pay set forth in section
59a of title 5, United States Code.
(38) That part of section 4:01 (a) of the Federal Civil Defense Act of 1950, as
amended (50 U.S.C. App. 2253(a) ), which reads: "and, notwithstanding the
provisions of any other law, except those imposing restrictions upon dual com-
pensation, employ, in a civilian capacity, with the approval of the President, not
to exceed twenty-five retired personnel of the armed services on a full- or part-
time basis without loss or reduction of or prejudice to their retired status;".
(39) Section 5(f) of the Central Intelligence Agency Act of 1949, as amended
(50 U.S.C. 403(f) ), authorizing employment of not more than fifteen retired
officers who must elect between civilian salary and retired pay.
(40) Section 2 of the Act of July 11, 1947 (61 Stat. 311), relating to the
position of director of the band in the Metropolitan Police Force of the District
of Columbia.
(41) That part of section 9 of the Act of June 4, 1948 (62 Stat. 342), relating
to personnel of the Armory Board of the District of Columbia, which reads :
", and without regard to any prohibition against double salaries contained in
any other law."
(42) Section 3 of the Act of April 21, 1948 (62 Stat. 197), relating to the
Remount Service in the Department of Agriculture.
(43) That part of the second sentence of section 103 of the' Act of September
13, 1950 (64 Stat. 847), relating to the International Boundary and Water Com-
mission, United States and Mexico, which reads : ", and who shall be entitled to
receive, as compensation for such temporary service, the difference between the
rates of pay established therefor and their retired pay during the period or
periods of such temporary employment."
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. ft -4 member of the uni?ormed " = serving in the Army or Air -Foree of
the :United States witheuf ee rpan~ under aft ftppointmeft made under
see?iee 646 of the Officer Per-Ban nei fret of 1047 in e tempeFftry grade higher
or the sane as the reserve eommissien he then held and who prior ?e the effeetive
date of this 4et was retired for physieal disability in sueh temporary grade shall
he be eonsidered to have been subjeet to the rectrietion on the eoneorrent reeelpt
of civilian eompensation and retired pay eentained in see?ien 24-2 of the 4et of
.lime 39; 4932; as amended {& 4TS: G {9a}; for any period following sueh retire
ment:
{g} -A nenregular member of an awned force who served e r aefive duty in a
temporary warrant oflieer grade and who was refired in that status prior to the
ef?eefive date of this ref; shall net he eons idered he have been eidbjeet to the
restrletion of seefion -2 of the Aef of July 34; 19017 as amended {b 43-8:G: 62}; for
any peeled before the e?feetive date of this Aef:
See 493: {a} Seetion 2 of the Veterans' -Prefc nee Aet of 3-944 {l S, G $i }
is amended by inserting before the friars word of the seetfen the symbol and
irs: a-*ely following the wards "prefe enee shall be gives" ft eeninma end the
phrase ` eept as provided by ^ on kb)-,-"-
?b} Seetion 3 is farther amended by adding the following subseetion:
--Fb} A retired member of a uniformed service; as defined d in the Deal Gom-
pencafien Act of 49937 appointed; or reinstated or reemployed a?ter the effective
date of the Dual Getnpensation Act of 4963 with a break itr service of more than
thirty days, shall be given preference only if {4} his retirement was based on
disability resulting from an injury or disease re=ed in line of duty as a direct
result of armed eenilfet; or caused by an inc rsrineafalify of war and ineurred in
line of ditty during a period of war as that term is defined in 98 41.5 G: 494
{3} his retired pay was based on lees than in years of eo inuous ?ttll-titre active
service not ineluding periods of active duty for training, or {3} his retirement was
effected tinder chapter 6-; title 4,0 of the United States Qede subsequent to suelb
appointment; reinstatement; or reemployment: "-
{e} Section 4-22 o? the Veterans'- 4-he erenee Act of 4944 {6 ll- :G S#?} is amended
by inserting before the fleet ward the symbol "(a) and by inserting in the first
proviso of the first paragraph after the word "That/ the ids; "eneept as
provided in subsection {1
{d} Section 42 is further amended by adding subsection {b} as follows;
14b} 4n computing length of total serviee; a retired member of a uniformed
service appointed; or reinstated or
reemployed with a break in sea: aiee of mere
than thirty days; after the effeetive date of the Dual Compensation Act of 4963;
shall be givers credit for the length of time spent in active servlee in the uniformed
services only if ph his retirement was based on disability resulting from an injury
or disease received in line of ditty as a direct result of armed eon?liet; or caused
by an instrumentality of war and inenreed in line of duty during a period of war
{as that term is defined in 38 U-.9-.Q. 494; 394}; ph his retired pay was based on
less than sin years of sentinneus full-time active service not ineluding periods of
active duty for train in-g- or ph his retirement was effected under chapter 47;
title 49 of the 43:S- Gede subsequent to such appointment; reinstatement or
reemployment'-,
gee- 494: =phe portion of section 3~h} of the Civil Service Retirement abet; as
amended ?g 3263kb )- appearing before the
section 9{c} ? is amended to read as ?ellewss ~' `?er purposes of
"-(-b} An employee or Member shall be allowed credit for periods of military
service prier to the date of the separation upon which title to annuity is based
however, if the employee ors is awarded retired spay on account of mili-
tary serviee; his military service shall not be included encepf as hereinafter
provided.. 4? the retired pay is awardedd on aeeou t of disability teething from
an injury or disease received in line of duty as a direct result of armed eenfliet;
or caused by an instrament&kty of war and inearred in line of duty during a period
of war {-as that term is defned in sections 494 and 394 of title 38; -Un== ted S-totes
Cede); his military ser shall be ineluded. 4? the retired pay is awarded
under chapter 67; title 40; 34nited States Code ph his military ser-viee performed
before the a feetive date of the Baal Qempensatien Act of 4963 shall be included;
and ph if he has a total of less than sin years of eontinuoue active duty {regardless
of when performed but not inehtdi-ng periods of active dirty fee training)- his
military service performed on and after the effeeti-=e date of the Dual G ensa-
tion abet o? 4963 shall be in s. 3~7etwithstanding the ?oregeing; i
S-se- 496: the last two sentences e? section 293{a} of the -Annual and Siek Leave
abet of 4964 4 43-S-.Q 2962 {a4 are amended to read as fellows, !!In determining
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 11
4 LE 141-EI-4''4 GE DATE, AMENDMENTS AND $~EPEAhEP,S
S$e 304 The previsions e? this Act take effect on January 4; 1964.
See- ?802- If any part of this Abe shall be found to be uneees?i# ienel the
rest of it shall be considered as in full force and ef?ee?:
,9-Be-308, The following parts of laws are amendd-
4a} Section 49 of the Act of Deeetrtber 20; 4944; as added by the Ant of August
49; 4-MOT O Gede 4226}; relating to members e? the District of Gel tmbia
4emi g Qemtnissien; is aided by ehanging the period to a eemtata and adding
the ?ellewinge ``e eept as proofded in t e Deal Qempensation Act o? 4963 with
respect to retired personnel of the unifeemed serviees:"
00} Section dl of the Aet of August 40; 4956; as amended 4g I3:S:G- 30r}; is
mended by inserting in snbseetien 4e} h edlately after the wards !!Any Reserve
or men ber of tine 4lational Guard may aeeept any civilian position n-ader the
I3nited Mates or the District of Geli}mbia and;'-- the following- ` `ereept as pros ided
in the Deal Gempensation Art of 4063 with respect to retired personnel;''; and by
changing the period at the end of subsection 4d} to a comma and adding the fellow-
in- "eneept as provided in the Duel Gomjrensation Act of 4963 with respect to
retired personnel:''-'
4e} Section 3 of the Act of dente 30; 484 44S State 409}; as mended fb r~ G
44}; is amended to read as ?ellews- "No officer er employee in any branch of the
pnblie serviee whose eampensatien and allowances are fixed by law or regulation
shall reeeiv-e any additional pay; allewanees: or perquisites direetly or indirectly
in any ?orrrt whatever for the performance of the duties of his position anless the
same is autherised by law; and ne such of#ieer or employee shall reeeive any eom-
pensation allowances or perquisites fee the eliseharge of the de-ties of any position
ether than one to which he has been appointed unless expressly authorised by
law: --
4d} Subsections 4a} and 4e-)? of section 3335; title alt -United States Gede; are
amended by striking cart "seetions 58; 62; 69; and 40 of title 5-- and substi#+16rig
in lieu thereof "seet: en 204 o? the Dual Gotn-pensaGionA Act of 49&3'-':
4e} Section 4-92 of title 14; Ganal zone Gode -E46A Stat- 45}; ie amended by'
striking oat the language which precedes "net apply to teachers in the public
wheals of the Ganal -done who are also employed in night wheals or in vacation
sehoels or programs-' and inserting in lien thereof `-`Seetioa 304 of the Dual
Gempensatiou Abe o? 4963 does"-
{R Seetioa 434b} of the Pease Gerpe Act; approved September 2.3; 4964 47-6
Stat: ?149 0}; is amended by striking out the phrase e eetien 224-2 of the Act of
dune 30; 4932; as amended 44 I3:8-G- 59a}71- and by changing the period at the end
of the seetlen to a comma and adding the follewingr "except as provided in the
Dual Gempensation Act of 4963:'-'
4g} Section 44 of the Arms Genteel and Disarmament Act; approved Septem-
ber 26; 49647 4-45 Stag 636}; is amended by striking out the phrase "seetien 242
of the Act of dune 99; 4932; as amended 4,5 {3 S G 59a};-' and by changing the
period at the end of the section to a eamme and adding the "lowing: -`except as
provided in the Dual Gompensation Act of 4963:"
*4 4 Section 6364b}; second sentence; of the Aet of September 4; 4964 ? M Stat-
454; 433 43:5 G 23864b)}; relating to certain service under the Act for International
Development of 4964 and the International Geaee and Security Act of 4964; is
amended by striking out the phrase "eertion 242 of Public I e 42242; as amended
45 II S: G 59a};" and by ehanging the period at the end of the sentence ton comma
and adding the following- "except as provided in the Dual Gempensakion Act of
4963-.'-'
,S-me- 304. 4a} The following laws and parts o? laws are repealed=
44} Seetion 4463 of the Eesieed Statutes 45 I3:S:G: 58}; relating to the receipt
of eempensation from mere than one odiee:
42} Seetien 4764 of the Revised ;statutes f5 I3-s-G: 69); relating to additional
compensation for extra services:
43} Section 1465 o? the Revised Statutes 45 U- S-: G- 40}; relating to additional
compensation for any person whose salary is fitted by law er regulation.
{4} Section 2074 of the Revised Statutes 425 kits G: 50)- prohibiting the holding
of two ofltees under title VIII of the Revised Statutes-
45} -The Act of duly 24; 4882 422 Stal,- 476}; authorising
tion foe Government employees engaged in cataloging Government publications
by the Joint Gommittee on 42rin't4ng-
46} The following sentence in the Act of Pebrnary 25; 4585 423 Star: 920}-
"--And hereafter- rte eensul or eonsol-general shall be entitled to er allowed any
part of any salary appropriated for payment of a seeretary or second secretary
of legattien or an interpreter.-"
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 13
(25} the fifth sentence of see#4er 3 of the 4teeenstruetien Finanee Gerperatien
Act; as in ef?eet on June 39; 494 47 Stag 64; and as ee iftued by seetiee 3(a}
of streh Act; as amended *4 Sto- 2037,62 Stat: 262; 45 U-9-G- 693 {a}}; relating
to employees of the Ueeenstruetien Finanee Gorperatien; whieb reads "-Nothing
eentained in this or in any other Aet shall be eenotreed to prevent the appeint-
ment and eerepensatien as or employee of the Gerperatiee of any effieer or
employee of the United States in any board; eentmission; independent establish -
meat; or eeeeotive department tlteree?'
{26} Seebon 242 of the Aet of June 39; 4W2 4; Stat. 496}; as amended by
seetien 3 of the Aet of July 45; 1940 {54 Stat. q64}; by the AeM of 4 ebei ry 29;
4954 . 68 Stat. 44}; by seetien 2 of the Aet of August 4; 1966 (69 Sttt- 4il8)by
seetien 2294 {4l- of the Aet of dune 4-7; 4957- 44 Mat. 4-55}; and by seetion 43{d}
of the Aet of September 2; 4958 42 Stat 4264}; relating to the l4mit:ttion on the
amount of retired pay reeeived for eemmissioned o?ileer ser-viee when eembined
.With Government civilian salary 0 U S C: 59a}
{~ The Aet of September 43; 4-940 44 Stag S85}; airthoriaing Jesse I4: Janes;
Federal hone Admin4etrator; to exercise the du-ties of the three of Secretary of
Gemnreree-
{2S} The Act o? July 4; 4942 46 Scat- 467 34 l C. Gede 634(x}}; relating to
the application of section 6 of the Act of Way 49; 4946; to custodial employees of
the -Beard of Fdueatien of the 43i9trlet of Columbia
{29} The Aet of March 29; 4945 {59 S6a6. 38 9j, autherining the 43oorkeeper
of the -Reuse of Representatives doing the Seventy a -Geagress to employ
Government employ-ees for folding speeehes and pa le` :
(39} The Aet of August 40-, 4946 {60 Stxt. 1978}; as amended by the Aet of
October 26; 4924 {66 Stab 662}; relating to the appeintx:-e tt and employment of
certain retired efF~eers in the Meterens'- d inistration {b i3 S G 64a}
{34} Section 42 of the District of Columbia Teaehers- Salary Act of 4-955;
approved August 5; 1955 09 Stab 029}; relating to retired members of the armed
serv4ees employed as teachers of military science and taoties-
.(32} Section 626(e} of the Act of September 4; 196146 Stab 454; 22 U:S-C:
2?W?);, relating to retired officers employed under the Aet for International
Development of 4964 or the International 4'eaee and Security Aet of 4964:
333} Subsection {d} of section 2947 title 44; Gan al Zone Code {76A Stoat-. 24};
relating to retired members of a regular eomponent of the Armed Forces or the
Fublle -Health Service of the United States employed in the Ganel Zone Govern
ment or the Panama Canal Go rrpany:
{34} The first proviso under the beading "GErAaTrm-ET ora m ARmy" and
under the subheading is iNsrr" contained in title -4- of the Depart-
ment of Defence Appropriation Act; 4955 q4 Stat. &t ; Iktblie 4 S5-1-47-}
relating to retired military personnel on duty at the United States Soldiers! Home,
wlhieh reach; Presided; That section 242 of the Aet of June 39; 4-932 {5 IT, 8-. C. 29Ja};
shall net apply to retired military personnel on duty at the United States Soldiers'
-Home!" and previsions to the same effect contained in ether appropriation Aete
enacted prior to the date of the en tat e? this Aet relative to retired military
personnel on duty at the United States Soldiers- -Home {5 U:S C: 59b}:
{35} Seetlen 23(b} of the AAt of August 34; 4954 {68 Stat- 4944, as amended
by section 2 of the Aet of September 43; 1960 {4 Stat: 9444; and section 24{e} of
the Aet of August 34; 4954 {6S Stat. 4945}; as amended by section 3 of the Aet of
September 43; 1960 44 Sta, 9444; relating to the collection of census data {43
U-S-G- 23(4x} and 24ients for the position have not been written in a
manner designed to give advantage to such retired member; and
(4) the position has not been held open pending the retirement of such re-
tired member.
Ssc. 205. Notwithstanding any other provision of law, a retired member of any
of the uniformed services shall not be appointed to any civilian office in the com-
petitive civil service unless (1) the United States Civil Service Commission shall
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 17
have given prior public notice of the fact that a vacancy exists in such office and of
the fact that an assembled examination (including written tests, oral interviews,
and security investigation), where practicable, or a combination of an assembled or
nonassembled examination, where practicable, open to all persons is to be given at
a specific time and place, but not before the thirtieth day after the date such notice is
.first given, and (2) such office is filled only from among those qualified persons who
successfully complete such examination. This section shall not affect the authority
of the Administrator of the National Aeronautics and Space Administration con-
tained in section 201 (e) of this title.
SFc. 206. The President shall transmit to the Congress on or before January 1,
1966, a comprehensive report of the operations under this title of the departments
and agencies in the executive branch.
TITLE III-LIMITATION ON DUAL COMPENSATION FROM MORE
THAN ONE CIVILIAN OFFICE
SFc. 801. (a) Except as provided by subsections (b), (c), (d), and (e) of this
section, civilian personnel shall not be entitled to receive basic compensation from more
than one civilian office for more than an aggregate of forty hours of work in any one
calendar week (Sunday through Saturday).
(b) Except as otherwise provided by subsection (c) of this section, the United States
Civil Service Commission, subject to the supervision and control of the President, is
authorized to prescribe and issue regulations under which exceptions may be made to
the restrictions in subsection (a) of this section whenever it is determined by appropriate
authority that such exceptions are warranted on the ground that personal services
otherwise cannot be readily obtained.
(c) The President of the Senate with respect to the United States Senate, the
Speaker of the House of Representatives with respect to the United States House of
Representatives, and the Architect of the Capitol with respect to the Office of the Architect
of the Capitol each is authorized to provide for a means by which exceptions may be
made to the restrictions in subsection (a) of this section whenever he determines that
such exceptions are warranted on the ground that personal services otherwise cannot be
readily obtained.
(d) Subsection (a) of this section does not apply to- -
(1) compensation on a when-actually-employed basis received from more than
one consultant or expert position if such compensation is not received for the same
hours of the same day;
(2) compensation consisting of fees paid on other than a time basis;
(3) compensation received by teachers of the public schools of the District of
Columbia for employment in a civilian office during the summer vacation period;
(4) compensation paid by the Tennessee Valley Authority to employees per-
forming part-time or intermittent work in addition to their normal duties when
the Authority deems it to be in the interest of efficiency and economy;
(5) compensation paid by the United States Coast Guard to employees occu-
pying part-time positions of lamplighters; and
(8) compensation within the purview of any of the following provisions of law:
(A) section 9 of the Act of October 6, 1917 (40 Stat. 384; D.C. Code, sec.
31-631), relating to teachers in the public schools of the District of Columbia
who also are employed in night schools and vacation schools;
(B) section 6 of the Act of March 3, 1925 (43 Stat. 1108), as amended by
the Act of January 27, 1926 (44 Stat. 2), relating to employeesof the Library
of Congress (2 U.S.C. 162; 5 U.S.C. 60);
(C) the Act of July 1, 1942 (56 Stat. 467; D.C. Code, sec. 31-681a),
relating to custodial employees of the Board of Education of the District of
Columbia; -
(D) section 2 of the Act of July 22, 1947, as amended (61 Stat. 400, 74
Stat. 11; 33 U.S.C. 878), relating to extra compensation paid in connection
with instrument observation or recording, the observation of tides or currents,
or the tending of seismographs or magneto graphs;
(E) section 3 of the Act of June 2, 1948, as amended (62 Stat. 286, 74
Stat. 11; 15 U.S.C. 327), relating to extra compensation paid in connection
with the taking and transmitting of meteorological observations;
(F) section 10(b) of the Defense Department Overseas Teachers Pay and
Personnel Practices Act (73 Stat. 217; 5 U.S.C. 2358(b)), relating to the
compensation of certain teachers employed in another position in recess
periods; -
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(G) section 102 of chapter 7 of title 9, Canal Zone Code (76A Slat. 1-5),
relating to teachers in the public schools of the Canal Zone who also are
employed in night schools or in vacation schools or programs;
(II) section 23(b) of title 13, United States Code, relating to the payment
of compensation to employees for the field work of the Bureau of the Census,
Department of Commerce; or
(1) subsection (a) or (c) of section 33,35 of title 39, United Slates Code,
relating to dual employment and extra duties in the postal field service.
(e) With respect to the compensation of persons serving on the effective date of this
section in more than one position under properly authorized appointments, subsection
(a) of this section shall not apply for the duration of the appointment or appointments
concerned.
TITLE IV -MISCELLANEOUS PROVISIONS
Sr:c. 401. (a) Section 18 of the Act of December 20, 1944, as added by section 2
of the Act of August 19, 1950 (64 Slat, 466; D.C. Code, sec. 2-1226), is amended by
inserting immediately before the period at the end thereof a comma and the following:
"subject to section 201 of the Dual Compensation Act".
(b) The second paragraph of section 2 of the Act of August 11, 1950 (64 Stat.
488; D.C. Code, sec. 6-1202), is amended to read as follows.
"14othwithstanding the limitation of any law, there may be employed in such
Office of Civil Defense any person who has been retired from any of the uniformed
services of the United States or any office or position in the Federal or District govern-
ments, and except as hereinafter provided, while so employed in such Office of Civil
Defense any such retired person may receive the compensation authorized for such
employment or the retirement compensation or annuity, whichever he may elect, and
upon the termination of such employment, he shall be re:;tored to the same status as a re-
tired officer or employee with the same retirement compensation or annuity to which
he was entitled before having been employed in such Office of Civil Defense. While
any person who has been retired from any of the uniformed services of the United
Slates is so employed in such Office of Civil Defense, he may receive the compensation
authorized for such employment and his retired or retirement pay, subject to section
201 of the Dual Compensation Act."
(c) Section 13(b) of the Peace Corps Act (75 Stat. 619; 22 U.S.C. 2512(b)) is
amended-
(1) by slrikanj out "section 212 of the Act of June 30, 1932, as amended
(5 U.S.C. 59a),' ; and
(2) by inserting immediately before the period at the end thereof a comma and
the following: "subject to section 201 of the Dual Compensation Act".
(d) Section 41 of the Arm8 Control and Disarmament Act (75 Stat. 636; 22 U.S.C.
2584) is amended---
(1) by striking out "section 219 of the Act of June 80, 1932, as amended
(5 U.S.C. SS9a),": and
(2) by inserting irnuaediately before the period at the end thereof a comma and
the following: "su ect to stelion 201 of the Dual Compensation .let".
(e) Section 626(b) of part III of the Act entitled "An Act to promote the foreign
policy, security, and general welfare of the United States by assisting peoples of the
world in their efforts toward economic development and internal and external security,
and for other purposes", approved September 4, 1961 (75 Slat. 1,,51; 22 U.S.C.
2886(b)), is amended-
(1) by striking out "section 212 of Public Lam 72-212, as amended (5 U.S.G.
59a),"; and
O by inserting immediately before the period at the end thereof a comma and
the following: "subject to section 201 of the Dual Compensation Act".
(f) Section 28 of the Atomic Energy Act of 1954 (68 Slat. 926; 42 U.S.C. 2038) is
amended by striking out ""Any such officer serving as Chairman of the Military Liaison
Committee shall receive, in addition to his pay and allowances, including special and
incentive pays, or in addition to his retired pay, an amount equal to the difference be-
tween such pay and allowances, including special and incentive pays, or between his
retired pay, and the compensation prescribed for the Chairman of the Military Liaison
Committee." and inserting in lieu thereof the following: "Any such active officer
serving as Chairman of the Military Liaison Cominitler shall receive, in addition to his
pay and allowances, including special and incentive pays, an amount equal to the
difference between such pay and allowances, including special and incentive pays, and
the compensation fixed for such Chairman. Any such retired officer serving as Chair-
man of the Military Liaison Committee shall receive the compensation fixed for such
Chairman and his retired pay, subject to section 201 of the Dual Compensation Act."
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;DUAL-COMPENSATION AND DUAL-EMPLOYME
(g) Section 20/1(d) of the National Aeronautics and Space Act of 1958 (72 Stat.
432; L2 U.S.C. 247/.(d)) is amended by striking out "The compensation received by
any such officer for his service as Chairman of the Liaison Committee shall be equal
to the amount (if any) by which the compensation fixed by subsection (a) (1) for
Chairman exceeds his pay and allowances (including special and incentive pays) as
an active officer, or his retired pay." and inserting in lieu thereof "Any such active
officer serving as Chairman of the Liaison Committee shall receive, in addition to his
pay and allowances, including special and incentive pays, an amount equal to the
difference between such pay and allowances, including special and incentive pays,
and the compensation fixed by subsection (a) (1) for such Chairman. Any such
retired officer serving as Chairman of the Liaison Committee shall receive the com-
pensation fixed by subsection (a) (1) for such Chairman and his retired pay, subject
to section 201 of the Dual Compensation Act."
(h) Section 3(b) (1) of the Act of August 28, 1958 (72 Stat. 1091; Public Law
85-850)1 is amended to read as follows:
"(1) One member, who shall serve as Chairman and who shall be a resident
from the area comprising the Savannah, Altamaha, Saint Marys, Apalachicola-
Chattahoochee, and Perdido-Escambia River Basins (and intervening areas)
embraced within the States referred to in.the first section of this Act and who shall
not, during the period of his service on the Commission, hold any other position
as.an officer or employee of the United States, except that a retired military
officer or a retired Federal civilian officer or employee may be appointed under
this Act without prejudice to his retired status. A retired Federal civilian officer
or employee appointed under this Act shall receive compensation as authorized
herein in addition to his annuity, but the sum of his annuity and such compensa-
tion as may be payable hereunder shall not exceed $12,000?in any one calendar
year. A retired military officer appointed under this Act shall receive compensa-
tion as authorized herein and his retired pay, subject to section 201 of the Dual
Compensation Act;".
(i) Section 9 of the Act of October 6, 1917 (40 Stat. 3811; D, C. Code, see. 31-631),
is amended by striking out "That section six of the legislative, executive, and judicial
appropriation Act, approved May tenth, nineteen hundred and sixteen, as amended
by the naval appropriation Act, approved August twenty-ninth, nineteen hundred
and sixteen," and inserting in lieu thereof "Section 301. of the Dual Compensation
Act".
(j) Section 6 of the Act of March 3, 1925, as amended by the Act of January 27, 1926
(43 Stat. 1108, 44 Stat. 2; 2 U.S.C. 162, 5 U.S.C. 60), is amended by striking out
"nor shall any additional compensation so paid to such employees be construed as a
double salary under the provisions of section 6 of the Act making appropriations for
the legislative, executive, and judicial expenses of the Government for the fiscal year
ending June 30, 1917, as amended (Thirty-ninth Statutes at Large, page 582)." and
inserting in lieu thereof "and section 301 of the Dual Compensation Act shall not
apply to any additional compensation so paid to such employees."
(k) The Act of July 1, 191[2 (56 Stat. 467; D.C. Code, sec. 31-631a), is amended by
striking out "That section 6 of the Act entitled `An Act making appropriations for the
legislative, executive, and judicial expenses of the Government for the fiscal year ending
June 30, 1917,' approved May 10, 1916 (39th Stat. 120), and Acts amendatory
thereto," and inserting in lieu thereof "That section 301 of the Dual Compensation
Act".
(1) Section 2 of the Act of July 22, 1917, as amended (61 Stat. 400, 74 Stat. 11;
33 U.S.C. 873), is amended by inserting immediately before the period at the end
thereof the following: "and without regard to section 301 of the Dual Compensation
Act".
(m) Section 3 of the Act of June 2, 19118, as amended (62 Stat. 286, 74 Stat. 11;
15 U.S.C. 327), is amended by inserting immediately before the period at the end
thereof the following: "without regard to section 301 of the Dual Compensation Act"(n) Section 10(b) of the Defense Department Overseas Teachers Pay and Personnel
Practices Act (73 Slat. 217; 5 U.S.C. 2358(b)) is amended by striking out "section 2
of the Act of July 31, 1891,? (5 U.S.C. 62), relative to the holding of more than one
office, section 6 of the Act of May 10, 1916 (5 U.S.C. 58 and 59), relative to double
salaries, and any other law relating to the receipt of more than one salary or the hold-
ing of more than one office" and inserting in lieu thereof "section 301 of the Dual
Compensation Act".
(o) Section 102 of chapter 7 of title 2, Canal Zone Code (76A Stat. 15), is amended
by striking out. "Section 2 of the Legislative, Executive, and Judicial Appropriation
Act, approved July 31, 1891, as amended (28 Stat. 205; 5 U.S.C., sec. 62), and section
6 of the Legislative, Executive, and Judicial Appropriation Act, approved May 10,
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1918, as amended (39 Slat. 120; 5 U.S.C., sec. 58), do" and inserting in lieu thereof
"Section 301 of the Dual Compensation Act does".
(p) Section 23(b) of title 13, United States Code, is amended by inserting im-
mediately before the period at the end thereof the following: "without regard to section
301 of the Dual Compensation Act".
(q) Subsections (a) and (c) of section 3.3,36 of title 39, United Slates Code, each are
amended by striking out "sections 58, 62, 69, and 70 of title 5" and inserting in lieu
thereof "sections 89 and 70 of title 5 and section 301 of the Dual Compensation Act".
Ssc. 402. (a) The following laws and parts of laws are hereby repealed:
(1) Section 1783 of the Devised Statutes (5 U.S.C. 58), relating to the receipt of
compensation from more than one office.
(2) Section 2074 of the Revised Statutes (25 U.S.C. 50), prohibiting the holding of
more than one office at the same time under title XX VIII of the Revised Statutes.
(3) Section 4395 of the Revised Statutes as amended by the Act of January 20, 1888
(25 Slat. 1), providing for the appointment of a Commissioner of Fish and Fisheries
who shall not hold any other office.
(4) The Act of July 2, 1888 (22 Slat. 176), authorizing additional pay or compensa-
tion for Government employees engaged in cataloging Government publications at the
direction of the Joint Committee on Printing.
(5) The sentence in the Act of February 26, 1885 (23 Slat. 329), which reads as
follows: "And hereafter no consul or consul-general shall be entitled to or allowed any
part of any salary appropriated for payment of a secretary or second secretary of
legation or an interpreter."
(6) Joint Resolution Numbered 3 of February 5, 1889 (25 Slat. 1019), authorizing
the President to appoint an officer of the United States Coast and Geodetic Survey as a
delegate to the International Geodetic Association to serve without extra salary or
additional compensation.
(7) Section 2 of the Act of July 31, 1894 (28 Slat. 205), as amended by the Act of
May 31, 1924 (43 Slat. 245), by section 8 of the Act of July 30, 19.37 (50 Slat. 549),
and by the Act of June 25, 1938 (52 Slat. 1194), relating to the holding of two offices
(5 U.S.C. 62).
(8) The paragraph in the Act of February 20, 1895 (28 Slat. 678), providing for
the compensation of members of a commission established to recommend the location
of a certain building, which reads as follows:
"The compensation of said commissioners shall be feed by the Secretary of the
Treasury, but the same shall not exceed six dollars per day and actual traveling ex-
penses: Provided, however, That the member of said commission appointed from the
Treasury Department shall be paid only his actual traveling exJienses."
(9) Section 7 of the Act of June 3, 1898 (29 Slat. 235; 5 U.S.C. 88), relating to the
employment of retired officers of the Army and Navy in connection with river and
harbor improvements.
(10) Section 7 of the Act of June 28, 1902 (32 Slat. 4,83), relating to the appoint-
ment and compensation of certain officers employed under such Act.
(11) The paragraph of the Act of March 4, 1909 (35 Slat. 981), relating to the pay
of retired Army and Navy officers and enlisted men then in the employ of the Isthmian
Canal Commission, which reads as follows:
"Authority is hereby granted for the pa ment of salaries and wages accrued or
hereafter earned of retired arm and navy officers and enlisted men now in the employ-
ment of the Isthmian Canal Commission, in addition to their retired pay, where their
compensation under such employment does not exceed two thousand five hundred dollars
per annum."
(12) The second paragraph under the center heading "Tits ISTHMIA:v CANAL"
with the side heading "National Waterways Commission;" in the Act of August 5,
1909 (36 Slat. 130), authorizing the National Waterways Commission to pay not
to exceed three officers or employees of the Government without regard to the Act of
July 31, 1894, and other laws.
(13) Section 1' of the Act of August 20, 1912 (37 Slat. 319; 7 U.S.C. 165), re-
lating to the appointment of members of a Federal Horticultural Board from among
employees of the Department of Agriculture.
(1/,) Section 6 of the Act of May 10, 1916 (39 Slat. 120; 5 L.S.C. 58), as amended
by the Act of August 29, 1918 (39 Slat. 682; 5 U.S.C. relating to double salaries.
(16) Section 8 of the Act of March 21, 1918 (40 Slat. 455-456), authorizing the
President to avail himself of the assistance of Government employees in the operation
of transportation facilities taken over by the President.
(16) Sections 3 and 4 of the War Finance Corporation Act (40 Slat. 507; 15 U.S.C.
333, 334), authorizing the appointment of Government employees to membership
on the Board of Directors of the War Finance Corporation and providing for their
compensation.
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(17) The last paragraph under the heading "DISTRICT OF COLUMBIA" and under the
subheading "PUBLIC SCHOOLS" contained in the first section of the Act of July 8, 1918
(40 Slat. 823; D.C. Code,. sec. 31-631), relating to the application of section 6 of the
Act of May 10, 1916, to employees of the community center department of the public
schools of the District of Columbia.
(18) The ninth paragraph under the heading "DISTRICT OF COLUMBIA" and under
the subheading "PUBLIC SCHOOLS" contained in the first section of the Third Deficiency
Act, fiscal year 1920 (41 Slat. 1017; D.C. Code, sec. 31-631), relating to the applica-
tion of section 6 of the Act of May 10, 1916, to employees of the school garden depart-
ment of the public schools of the District of Columbia.
(19) That part of the proviso contained in the paragraph under the heading
"BUREAU OF THE BUDGET" in the Act of February 17, 1922 (42 Slat. 373; 5 U.S.C.
64), relating to the application of section 2 of the Act of July 31, 1894, to retired officers
of the Army, Navy, Marine Corps, or Coast Guard appointed to certain offices in the
Bureau of the Budget, which reads as follows: "Provided, That section 2 of the Act
making appropriations for the legislative, executive, and judicial expenses of the Gov-
ernment for the fiscal year ending June 30, 1895,. and for other purposes, approved
July 31, 1894, shall not be construed as having application to retired officers of the
Army, Navy, Marine Corps, or Coast Guard who may be appointed to the offices
created by section 207 of the Budget and Accounting Act, 1921, approved June 10,
1921, within the meaning of precluding payment to such officers of the difference in
pay prescribed for such offices and their retired pay;".
(20) Section 212 of the Act of June 30, 1932 (47 Slat. 406), as amended by section 3
of the Act of July 15, 1940 (54 Slat. 761), by the Act of February 20, 195.4 (68 Slat,
18), by section 2 of the Act of August 4, 1955 (69 Slat. 498), by section 2201(11) of
the Act of June 17, 1957 (71 Slat. 158), and by section 13(d) of the Act of September 2,
1958 (72 Slat. 1264), relating to the limitation on the amount of retired pay received
for commissioned officer service when combined with Government civilian salary
(5 U.S.C. 59a).
(21) The Act of September 13, 1940 (54 Slat. 885), authorizing Jesse H. Jones,
Federal Loan Administrator, to exercise the duties of the Office of Secretary of
Commerce.
(22) The Act of March 29, 1945 (59 Slat. 38), authorizing the Doorkeeper of the
House of Representatives during the Seventy-ninth Congress to employ Government
employees for folding speeches and pamphlets.
(23) The Act of August 10, 1946 (60 Slat. 978), as amended by the Act of October
29, 1951 (65 Slat. 662), providing authority for the employment of certain retired
officers in the Veterans' Administration (formerly contained in 5 U.S.C. 64a), which
authority has expired.
(24) The fifth sentence of section 3 of the Reconstruction Finance Corporation Act,
as in effect on June 30, 1947 (47 Slat. 6), and as continued by section 3(a) of such
Act, as amended (61 Slat. 203, 62 Slat. 262; 15 U.S.C. 603 (a)), relating to employees
of the Reconstruction Finance Corporation, which reads: "Nothing contained in
this or in any other Act shall be construed to prevent the appointment and compensa-
tion as an employee of the corporation of any officer or employee of the United States
in any board, commission, independent establishment, or executive department
thereof."
(25) Section 2 of the Act of July 11, 1947 (61 Slat. 311; D.C. Code, sec. 4-183),
relating to the position of director of the band in the Metropolitan Police force of the
District of Columbia.
(26) Section 3 of the Act of April 21, 1948, as amended (7 U.S.C. 438), relating
to the Remount Service in the Department of Agriculture.
(27) That part of section 9 of the Act of June 4, 1948 (62 Slat. 342; D.C. Code,
sec. 2-1709), relating to personnel of the Armory Board of the District of Columbia,
which reads: ", and without regard to any prohibition against double salaries con-
tained in any other law".
(28) Section 5(f) of the Central Intelligence Agency Act of 1949, as amended
(65 Slat. 89, 72 Slat. 337; 50 U.S.C. 403f(f)), authorizing employment of not more
than fifteen retired officers who must elect between civilian salary and retired pay.
(29) That part of the second sentence of section 103 of the American-Mexican
Treaty Act of 1950 (64 Slat. 847), relating to the International Boundary and Water
Commission, United States and Mexico, which reads: ", and who shall be entitled
to receive, as compensation for such temporary service, the difference between the rates
of pay established therefor and their retired pay during the period or periods of such
temporary employment".
(30) That part of section 401(a) of the Federal Civil Defense Act of 1950, as
amended (64 Slat. 1254; 50 U.S.C. App. 2253(a)), which reads: "and, notwith-
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standing the provisions of any other law, except those imposing restrictions upon dual
compensation, employ, in a civilian capacity, with the approval of the President, not
to exceed twenty-five retired personnel of the armed services on a full- or part-time
basis without loss or reduction of or prejudice to their retired status;".
(31) Subparagraph (g) of the third paragraph of the Act of August 5, 1953 (67
Slat. 366), as amended by the Act or August 9 1955 (69 Slat. 590), and by the Act
of August 28, 19117 (71 Slut. 457), relating to tAc Corregidor-Bataan Memorial Com-
mission (36 U.S.C. 408(g)),
(82) Section 12 of the District of Columbia Teachers' Salary Act of 1955 (69 Slat.
529; D.C. Code, sec. 81-15;1), authorizing employment of retired members of the
armed services of the United States as teachers of military science and tactics in public
high schools of the District of Columbia.
(38) Section 8 of the Act of September 7, 1957 (71 Slat. 628; 36 U.S.C. 748),
relating to appointment and pay of certain retired officers by the Civil War Centennial
Commission.
(84) Section 203(b)(11) of the National Aeronautics and Space Act of 1958 (72
Slat. 431; 4-+ U..S.C.2473(b)(11)), authorizing the employment of retired commis-
sioned o ers subject only to the limitations in pay set forth in section 212 of the
Act of June 30, 1932, as amended (5 U.S.C. 59a).
(35) Section 626(c) of the Act of September 4, 1961 (75 Slat. 451; 22 U.S.C.
2380(c)), authorizing employment of retired officers under the Act for International
Development of 1.1181 or the International Peace and Security Art of 1961.
(36) Section 201(d) of chapter 7 of title ?, Canal Zone Code (76A Slat. 21), relating
to retired members of a regular component of the Armed Forces or the Public Health
Service of the United States c;nplayed in the Canal Zone Government or the Panama
Canal Company.
(37) The matter contained in section 507 of the Department of Defense Appro-
priation Act, 1964 (77 Stut. 264; Public Law 88-149), relating to retired military
personnel on duty at the United States Soldiers' Home, which reads: ": Provided, That
section 212 of the Art of June 30, 1932 (5 U.S.C. 59a), shall not apply to retired
military personnel on duty at the United States Soldiers' Home", and provisions to
the sane effect contained in other appropriation Acts enacted prior to the effective
date of this section relative to retired military personnel an duty at the United States
Soldiers' Home (5 U.S.C'.
(38) The next to the last sentence of section 4103(b) of title 38, United Slates Code,
relating to the application of certain provisions of law to the Chief Medical Director of
the Department of Medicine and Surgery of the i"cterans' Administration, which
reads: "Section 82 of title 5 of the United Slates Code shall not apply to any individual
appointed Chief Medical Director before January 1, 1964; however, section S9a
of title 5 shall apply, in accordance with its terms, to any such individual.".
(b) All other provisions of law, general or specific, inconsistent with this Act and the
amendments made by this Act, are hereby repealed.
SEC. 403. (a) Except as provided in subsection (b) of this section, this Act shall
become effective on the first day of the first month which begins later than the ninetieth
day following the date of enactment of this Act.
(b) This section and sections 201(g) and 501(h) shall become effective on the date
of enactment of this Act.
SEC. 404. If any provision of this Act shall be held invalid, the remainder of this
Act shall not be affected thereby.
Senator Ysi uivituvclr. I would suggest to the witnesses that their
remarks be directed mainly to II.R. 7381, as pending in the House.
We have a rather lengthy list of witnesses today. As you gentlemen
know, we are operating under considerable difficulties. It is very diffi-
cult. to get more than one Senator in a committee at a time. We appre-
ciate the fact that Senator Boggs is here because I am going to be forced
to leave in 15 minutes to go to another commit tee. Then I will come
back, but we want to hear each witness. Due to the fart there are a
number of witnesses and we desire to hear everyone, we would request
that the witnesses condense and consolidate their statements as much
as possible.
We want the full statements in the record so the committee and staff
can study them.
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS
Gentlemen, the first witness this morning is the Honorable John W.
Macy, Chairman of the TJ.S. Civil Service Commission.
I believe, Chairman Macy, that you have some staff members with
you.
s
Mr. MACY. Yes, Mr. Chairman, I am associated in my testimony this
morning by my colleague, Commissioner Robert Hampton, and Mr.
Harold Leith, and Mr. Frank Witham, of the Bureau of Programs
and Standards.
STATEMENT OF RON. JOHN W. MACY, JR., CHAIRMAN, U.S. CIVIL
SERVICE COMMISSION; ACCOMPANIED BY HON. ROBERT E.
HAMPTON, COMMISSIONER; HAROLD H. LEICH, CHIEF, PROGRAM
PLANNING DIVISION, BUREAU OF PROGRAMS AND STANDARDS;
AND FRANK M. WITHAM, PROGRAM PLANNER
Mr. MACY. Mr. Chairman, in response to your request to consolidate,
summarize to the maximum extent possible, I will not go through the,
entire statement that I have prepared but rather go through and high-
light it and then make myself available to you and to Senator Boggs
for whatever questions you may wish to ask.
This legislation is comprehensive and complex and does call for a,
good deal of explanation in order to provide the information needed
for legislative action..
It is a pleasure to appear before you again this morning.. This time
I am testifying on the Civil Service Commission's views with respect
to S. 1912, introduced by Senator Johnston on July 18 of this year,
and on H.R. 7381, which was favorably reported by the House Post
Office and Civil Service Committee on November 7, 1963, and is now
pending: further action in the House of Representatives.
As originally introduced, H.R. 7381 incorporated the administra-
tion's proposals for revising the so-called dual employment-dual com
pensation laws. These provisions were identical to those contained
in Senator Johnston's bill, S. 1912. After holding extensive hearings
on II.R. 7351, running more than 7 days,,the House committee made
a number of changes in the bill.
Before discussingthese bills, I would like'to.tell you briefly why we
believe that the need to revise the dual-employment and dual-compen-
sation laws is urgent.
Senator YARBOROUGH. I did not mean to limit you because we do
need this preliminary explanation first so that all. of the testimony
would be more understandable to explain what the situation is, what
the weaknesses intended to be corrected are, and the solution offered.
by, these 'bills.
Mr. MACY. Fine, then, Mr. Chairman, I will proceed with the state-
ment and try to move along as rapidly as I can.
THE EFFECTS OF THE CURRENT LAWS
There are now over 50 different laws and around 200 separate
Comptroller General decisions relating either to the employment of
retired military personnel in Federal civilian positions or to the em-
ployment of a civilian in two different Federal positions. Three of
these laws, the acts of 1894, 1916, and 1932, have general application.
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The 1894 act prohibits an}' person who holds one Federal office pay-
ing $2,500 It year or morn from holding any other office in the Fed-
eral service. A. retired member of the .turned Forces is considered
to hold an "office" for the Inv poise of this act. In 1894, very few retired
military officers received $2,500 in retired pay and only 7I few Federal
civilian offices paid $2,500 per year. This prohibition, therefore, may
not have been too severe. Today, however, this law, in effect, bars
any retired military member, not otherwise exempt. from the law*
aw from
holding any Federal job. ,
There are now many exemptions front (his 1894 act., including all
regular and tem ponary ol#ic;crs retired for disability, all retired Re-
serve, officers, and all retired enlisted men. A Regular commissioned
or warrant officer retiring after 20 or more years o?active duty, there-
fore, is barred from Federal employment but it Reserve officer who
similarly retires after 20 years of active duty may be employed. This is
an obvious inequity.
The 1932 act provides that retired comtnissionc(I officers employed
in Federal civilian jobs may not receive any, part of their retired mili-
tary pay which in combinat-ion with their civilian salary would result
in a total annual compensation of more than $10,000. This limitation
does not apply to retired commissioned Reserve officers. to retired en-
listed men and warrant officers, or to any commissioned officer retired
for disability incurred in combat during time of war. Since Regular
and temporary officers retired for reasons other than dimtbility are
already barred from Federal civilian eniploynient, by the 1894 act,
the only retired military personnel actually subject to die $10,000 dual-
compensation ceiling in the 1932 act are Regular and temporary coni-
missioned officers retired for nonconibat incurred physical disability.
hero again, the inequity of the current law is evident.
The 1916 act., which came between the above two acts in point. of
time, ay)] es only to the holding of two civilian Government posi-
tions. . provide. that. no person may receive two Federal salaries
when the combined rate exceeds the sum of $2,000 per annum. Many
agencies have. had to go to Congress to obtain special statutory exemp-
tionsto this li w because of their special situations.
All three of these acts may have been quite reasonable at. the time
iliey were enacted or last amended, Because of changing economic
and employment conditions, hotii-ever, the limitations imposed by these
laws have. long since become unrealistic and obsolete. In many cases,
the Government has been denied the services of highly trained retired
military personnel with scarce skills. Iii addition, so many exceptions
to these laws have been made on a piecemeal basis that. the present
legal hodgepodge is extremely difficult even for skilled personnel
specialists to understand. Last but not least is the impossibility of
applying the laws equitably.
Let me coninient very briefly on each of these Have points:
1. One. of the worst current effects of (lie 1894 and 1932 laws is the
waste of certain trained manpower so badly needed in the Federal
civilian service. III order to keep the military officer corps at the
peak of physical vigor and eflrcieney, loony are ret iced at a relatively
early age, soiree after only 20 years of military service. Maley of these
retired officers are highly qualified as scientists, engineers, medical
officers, nurses, and speciaaists in other fields where well-qualified peo-
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UG7A -COMPENSATION AND DUAL-EMPLOYMENT LAWS 25
ple are in scarce supply. The country simply cannot, afford to waste
this skilled manpower or to make it unavailable to the Federal service.
2. From the standpoint of good administration alone, a single,
.simplified dual-compensation law would save much of the time and
money now spent in the executive branch in an attempt to administer
and enforce the existing collection of obsolete, complex, and unrealis-
tic statutes. Despite the best efforts of those concerned, errors are still
made in the employment or nonemployment of retired military person-
nel, because of the prevalent lack of understanding of the proper ap-
plication of the complex variety of dual-compensation statutes. On
the one hand, a military retiree who is actually eligible for Govern-
ment employment may be advised that he is not eligible, with the result
that both he and the Government may suffer. On the other hand, a
military retiree may be employed in good faith but illegally, and be
caused serious financial hardship when the error is discovered later on.
The record shows that both last year and this year it large number of
retired commissioned and warrant officers who accepted Federal civil-
ian employment have been or are now faced, because of recent legal
interpretations, with the possibility of having to refund overpayments
,of military retired pay or civilian salary. The repayments required in
these cases amount to very considerable sums, in some cases in excess
of $50,000. S. 1912 and H.R. 7381, incidentally, include provisions
which would relieve these retired personnel from the requirement of
reimbursing the Government for those unintentional overpayments.
Many other individual cases have occurred over the years.
3. We do not believe that it is equitable to bar a retired Regular
officer from Federal employment and permit the employment of a
retired Reserve officer who has actually served on active military duty
for-the same length of time. Nor does it seem equitable that a Gov-
ernment contractor may offer a full salary to a retired Regular officer
with skills, such as electronics or aeronautical engineering, needed in
Government, and perhaps acquired at Government expense, but that
a Government agency may not employ him even with a, substantial
reduction in his total compensation. Nor, in general, does it seem
equitable to deny Federal civilian employment to well-qualified re-
tired Regular officers, alone of all U.S. citizens not convicted of fel-
onies, at an age and with family responsibilities which make earning
an income essential in many cases.
Most persons will agree that the existing dual compensation and
duail employment laws are wasteful, confusing, and inequitable and
that they should be reps laced by a single modern statute clearly setting
forth the Governments policy on the employment of retired military
personnel in the Federal service. In considering what the policy
should be, there are two major issues which arise.
The first issue concerns the limitation on retired pay, if any, which
should be applied when a retired military member is employed in the
Federal civilian service. Many informed people believe that military
retired pay is actually deferred active-duty pay and that retired mili-
tary personnel employed as civilians should therefore receive their
full military retired pay as well as their full civilian salaries. There
are many others who believe with equal conviction that retired mili-
tary personnel should receive no military retired pay while employed
by the Government as civilians. Still others believe that there should
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be some ceiling on the combined amount, of military vet. red pay and
civilian salary which such retired miliary personnel could receive.
The second major issue, Mr. Chairman, concerns the possible effect
on civilian career employees of the Government. and on the merit sys-
tem in general of the employment. of retired Regular officers as well as
other retired military personnel. This issue. has become especially
important because of the significant recent increase in the number of
20-year optional retirements resulting from the World War II build-
up of the military forces.
Many of (III.-se retirees arc relatively young, some only 3S years old.
Naturally, they wish to start. a civilian career, and must. do so out. of
economic, nccessit,v in ninny cases. They should be, given the same
opportunity as any other U.5 citizen to be considered for Federal
enmploym ent. As veterans, under current law, they would be entitled,
if employed. to veterans' preference in redactions in force. Their
years of military service, including peacetime service, would also be
credited in computing their seniority on reduction-in-force registers.
Thus, retired military members would acquire, under existing lases,
substantial advantage. as civilian employees over career civilian
employees.
Furthermore. there is the frequently expressed concern that retired
military personnel may receive preference In employment because of
their prior military service or contacts.
In our long study of these problems and issues, :Mr. Chairman, and
they expand is period of nearly 8 year, we came to the conclusion that
four criteria should he met by a 'sound dual compensation statute:
1. It should codify all tide existing dual compensation-dual em-
ployment laws into one understandable law.
2. It. should provide for equitable treatment, of all retired military
personnel concerned, whether regular or Reserve, conimissioned of-
ficer, warrant of eer, or enlisted.
3. It should make it possible for tie Government to recruit well-
qualificd retired military personnel poNsessing scarce skills needed for
Government programs.
4. It. should protect Federal career civilian employees from certain
advantages enjoyed by retired military personnel solely as a result of
prior military service.
The Commissions original proposal, as embodied in S. 1912, fully
meets these four criteria and we, accordinggly, continue to support en-
actment of legislation along the lines of that bill. T shall have the-se
criteria, iii mind in niv following comments on the specific. provisions
of IL.E. 7 381, as amended by the House committee.
M.i.IOR PROVISIONS OF H.H. 7 3NI
First, I should like co say that we believe II.R. 7:381, as amended
by the house committee, would go far to resolve. certain of the prob-
lems I have already toatched upon briefly. There is, however, one pro-
vision in the. bill, as amended, which would cause serious new problems
and which we would, therefore, strongly oppose. I will go into this
further in a few moments.
Eniploynient, of retired member of uniformed sera ices:
Most of my statement. today, 1Ir. Chairman, pertains to title II of
ILR. 7381, as reported by the house commit-tee. It is in this title,
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dealing with the employment of retired military personnel, that the
more. important changes;:wore made.in the. administration's proposal
by the House committee.
DUAL COMPENSATION LII4IrrATION
Subsection 201(a) of H.R. 7381 establishes the general policy that
a retired Regular officer may hold a civilian office and receive the full
civilian pay of the position and the first $2,000 of his retired pay plus
one-half of the remainder, if any. This provision would perpetuate
the inequity of current laws by continuing to treat Regular officers,
including warrant officers, differently from Reserve officers and en-
listed men in this respect. We prefer the administration's proposal,
embodied in S. 1912, as being more equitable. We believe the.limita-
tion should control the amount of dual compensation received without
regard to a person's former status as an officer or an enlisted man, or
as a member of the Regular or Reserve component. In line with this
and in view of the recent military pay increases approved by the
Congress, we believe the'exemption from reduction in military retired
pay should be increased from $2,000 to $2,500.
If retired enlisted men are covered under a dual compensation
formula of "$2,500 plus one-half," it is estimated that about 14 percent
of such retired enlisted men would be subject to a reduction in retired
pay in the event of their employment in the Federal civilian service.
The average reduction in retired pay of. those enlisted men. whose
retired pay exceeded $2;500 would be about 9'.5 percent.
In addition to the foregoing changes, we also suggest that all retired
military personnel with less than 2.0 years active military service
should be exempt from the dual compensation limitation. Such an
exemption would be consistent with exemptions provided from certain
other provisions of the bill, and would exempt from any reduction in
compensation most disability retirees and all "title III" reservists,
who normally serve on active duty only during national emergencies.
Subsection 201(a) also provides that the $2,000 exemption would
be increased in direct proportion to each future increase in retired
pay under section 1401a(b) of title 10, United States Code, to reflect
changes in the Consumer Price Index. This is a provision added to
the bill by the House committee. We believe it is a definite improve-
ment and will prevent the dual compensation formula from becoming
obsolete and requiring additional legislative action several years hence.
Subsections 201(b) through 201 (f) provide for certain exemptions
from the dual compensation limitation and subsections 201(g) and (h)
contain the relief provisions for those temporary commissioned and
warrant officers recently found to be employed in technical. violation
of existing laws. There is only one provision in these several subsec-
tions with which we are not in full accord.
Subsection 201(e) provides authority for the Administrator of the
National Aeronautics and Space Administration to exempt persons in
certain positions from the dual compensation limitations. We have
no doubt that there is adequate justification for making these exemp-
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tions. However, we believe a specific. provision in the law for one
agency is neither needed nor desirable. There is ample authority in
this same subsection for the Commission to authorize justified exemp-
tions in NASA and other a?envies by regulation. The inclusion of this
special provision in the brill might well encourage other agencies to
seek similar statutory exceptions in the future, resulting once again in
the current confusion of laws relating to dual compensation.
FETLit AN8' PREFERENCE
Section 202 of II.IZ. 7381 amends section 12 of the Veterans' Pref-
erence Act to curtail somewhat the advantages over career civilian em-
ployees which retired Career military personnel now have in reductions
in force.
This section modifies the Commission's original proposal that all
veterans' preference benefits be denied to retired military personnel
who had completed a military career, and that they make a "fresh
start" if they wished to begin a civilian career in Government. While
we still preer the original version, we would not object to the change
made by the House committee since it still provides for more equitable
competition between career civilian employees and retired military
personnel in reductions in force, which has been the main problem in
this area.
ANNUAL LEAVE ACCRUAL
Section 203 of 11.P. 7381 amends the Annual and Sick Leave Act to
provide a more restrictive method of crediting active military service
of retired members for annual leave accrual purposes. We have no
objections to the House committee's changes in this provision.
EMPLOYMENT OF RETIRED PERSONNEL IN DEFENSE DEPARTMENT
Section 204, added to ILR. 7381 by the House committee, incor-
porates into law in a, somewhat. expanded form certain existing ad-
ministrative procedures of the Department- of Defense. These pro-
cedures are intended to prevent preferential treatment of retired
military personnel in filling Defense Department positions.
The section outlines sound public policy and we would have no ob-
jection to its enactment, although frankly, we would prefer that the
administrative details not be written into statutes where avoidable.
Section 205 is the one new provision I mentioned earlier as the one
which we would have to oppose most strongly. This section was
added to 11.11. 7381 by the Mouse committee on the day it voted to
report favorably on the bill. Let me take your time to read this
section to you :
SEC. 205. i~j,QtwIthstandLng Bgy othe 1 sion olapv, a retired member of
-
any of the unitoi!'i7r
serv ices not be appo to any civilian office in the
competitive civil service unless (1) the U.S. Civil Service Commission shall
have given prior public notice of the fact that a vacancy exists In such office
and of the fact that an assembled examination (including written tests, oral
Interviews, and security investigations), where practicable, or a combination
of an assembled or nonassembled examination, where practicable, open to all
n
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAW
persons, is to be given at a specific time and place, but not before the 30th
day after the date such notice is first given, and (2) such office is filled only
from among those qualified persons who successfully complete such examination.
This section shall not affect the authority of the Administrator of the National
Aeronautics and Space Administration contained in section 201(e) of this
title.
We do not know why this section was added to the bill nor exact-
ly what it was intended to accomplish. However, our own analysis
leads us to the conclusion that we might well be better off under the
existing dual. compensation laws, as obsolete and inequitable as they
are, than under this bill if enacted with this particular provision.
One of the major purposes of H.R. 7381, as I indicated at the be-
ginning of my statement, is to permit the employment in the Federal
civilian service of well-qualified retired military personnel, subject
to certain acceptable controls and limitations set forth in the bill.
Section 205 of the bill, however, would substantially defeat this basic
purpose because the practical effect of this section might well be to
bar virtually all retired military personnel from employment in the
competitive civil service.
If section 205 were enacted, it appears that under the specific lan-
guage in that section the Commission would be faced with choos-
ing between two basic alternatives :
1. To devise a completely different examining system for the com-
petitive service which, while permitting the employment of retired
military personnel, would be ineffective in recruiting other personnel
needed by Federal agencies, or
2. To maintain the present examining system, and, by so doing,
bar the appointment of retired military personnel as a normal mat-
ter.
Under the present examining system, generally speaking, exam-
inations are now held for general occupations where our, past expe-
rience or manpower forecasting systems indicate the need. Lists of
eligibles resulting from these examinations provide agencies with
qualified persons from whom to draw upon immediately as indi-
vidual vacancies arise. There is, therefore, a minimum lapse of time
between the decision to recruit to fill a vacancy and the appointment
of a qualified individual to the vacancy.
Under section 205 of H.R. 7381, however, examinations could not be
announced for general occupations in advance of individual vacan-
cies. The announcement of an examination could not be made until a
specific vacancy occurred in a particular agency. This would result not
only in critical delays in filling :positions with qualified people, but
could also lead to such a multiplicity of examinations that we would
end in administrative chaos and public ridicule.
If faced with the choice of destroying the flexibility and effective-
ness of the present examining system or, in essence, barring all retired
military personnel from Federal employment as a normal matter, the
Commission would necessarily choose the latter.
Such action would not only deny to the Government the services of
many well-qualified persons in highly skilled, shortage occupations,
but would also be completely unfair to men who have served their
country as military officers or enlisted men; in time of war and in
time of peace.
26-977-64--3
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DUAL-COMPENSATION' AND DUAL-EMPLOyMMNT LAWS
DUAL COMPENSATION FROM MORE THAN ONE CIVILIAN OFFICE
Title III of II.R.. 7.381 relates solely to the employment of civilians
in more than one Federal job. It replaces the 1916 dual compensation
act and related laws. Briefly, it establishes a general
policy that Fed-
eral employees may not receive basic compensation from more than
one Federal position for more than an aggregate of 40 hours of work
in any one week. The Civil Service Commission, subject to the super-
vision and control of the President, is authorized to provide for excep-
tions to this general policy where warranted on the ground that the
personal services needed cannot otherwise be readily obtained. The
authority of the Commission to make such exceptions would not apply
to positions in the Senate, House of Representatives, or the Office of
the Architect of the Capitol. A separate provision relating to excep-
tions for these positions is included in the bill.
The Commission agrees with title III as approved by the House
committee and recommends its enactment.
SUMMARY
Mr. Chairman, in sumtiary, while we continue, in general, to prefer
S. 1912, the Commission's position on II.1. 7381, as reported by the
House committee, is as follows :
1. With the exception of section 205, it represents a forward step in
dealing with the civilian employment of retired military ersonnel;
2. It would be more equitable if the dual compensation limitations
provisions of section 201 were revised as I have proposed ;
3. Section 205 would cause very serious problems and inequities, is
unrealistic, and should be deleted from the bill.
I will leave with you, for your consideration, and study by the com-
mittee, a proposed amendment to II.R. 7381 which would accomplish
the various suggest ions I have made for improvingthe bill.
(The amendments to MR. 7381 is as follows :.)
AMENDMENTS TO H.R. 7381 To MAKE TEE CIIAROES RsCOMMENDEU BY JoIIx W.
MAnY, JR., C11A IN Ax, CIVIL BERN-ICE COMMISSION
Section 201 (a)
Page 25, lines 11 and 12, strike out "officer of any regular component" and
insert In lieu thereof "member of any".
Page 25, lines 10 and 18, strike out "$2,000" and Insert in lieu thereof "$2,500".
Section 201(b)
Page 26, strike out lines 2 to 8, inclusive, and insert in lieu thereof the fol-
lowing : "member of any of the uniformed services---
"(1) whose retirement was based, on dlsabiiity (A) resulting from injury
or disease received in line of duty as a direct result of armed conflict or (B)
caused by an fnstruulentall ty of war and Incurred In line of duty during a
period of war (as defined in sections 101 and 301 of title 38, United States
Code) ; or
"(2) whose service does not Include 20 or more years of full-time active
service (regardless of when performed but not including periods of active
duty for training)."
Section 201(e)
Page 26, line 11, strike out "officer of any regular component" and Insert In
lieu thereof "member of any".
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 31
Section 201(e)
Page 28, lines 2 to 12, inclusive, strike out the sentence beginning '.'The Ad-
ministrator of the National Aeronautics and Space Administration".
Section 201(f )
Page 28, line 14, strike out "officer of any regular component" and insert in lieu
thereof "member of any".
Page 29, lines 7, 13, and 15, strike out "officer" and insert in lieu thereof
"member".
Section 205
Page 34, strike out lines 17 to 25, inclusive.
Page 35, strike out lines 1 to 7, inclusive.
Section 206
Page 35, line 8, strike out "See.. 206" and insert in lieu thereof "See. 205".
Section 101(1)
Page 24, line 15, strike out 'officer',". if and only if all of the above amend-
ments to section 201 are adopted.
Mr. MACY. Thank you, Mr. Chairman, thank you, Senator Boggs,
for affording me the privilege of appearing before you this morning
and offering this statement with respect to this legislation.
Commissioner Hampton, Mr. Leich2 Mr. Witham, and I are available
to you for questioning concerning this testimony or any other related
matters that bear upon the committee's consideration of this very
important legislation.
Thank you, sir.
Senator YARBOROUGII. Senator Boggs?
Senator Booos. Mr. Chairman, I wish to say at the outset that on
this very complex proposal I think Mr. Macy, Chairman of the Civil
Service Commission, has made a very fine presentation. It. is very
helpful, and I appreciate it greatly.
I know some of these questions. that I might have may seem very
simple, but your answers will help to clear up several things in my
mind.
Mr. Macy, on the point of some officers who retired at 20 years frori
the military service, not necessarily, of their own. choosing, would A6
restrictions in this bill make it difficult f qr these, persons to .,obtain
Government employment?
Mr; MACY. dour question relates to thole who are retired after 20
years Of 'service through the selection out process
Senator Booas. That is right
Mr. MACY. No. The propossl' in tliis 'fcgislation would 'make it
possible for those who have retired a, ter 20 years of service to- compete
for civil service positions'tlirou h the nor`rnar examining process, and
to be appointed, if they were within reach, and 'td receive compensa
tion for their civilian position, plus the first $2,000 or as we, have pro-
posed, $2,500, plus one half of the balance; o ,their retired p; ay We
have taken the middle position here between those views that there
should be no retired mi it4ry pay for retired military personnel in
civilian positions and the view that all of: the retired pay shothd' be
given.
It is our belief that because of'the nature of the military career and
the nature of civilian employment it is desirable' iiot to have ,the" total
of both salaries but it is also unfair to deny the drawing of military
retired pay, and we believe that this compromise position preserves
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32 DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS
the equities to a high degree and also does not unfairly treat military
personnel.
Senator Bocas. Your objection to section 205: Did I understand
you to say that you have recommended amending that or did you just
recommend that that be deleted?
Mr.MACY. I recommended that section 205 be deleted in toto. My
views cannot be too strongly expressed on this.
I am unable to fuid in the legislative history any reason for this
particular section. It would in effect require a total overhauling of the
examining procedures of the Civil Service Commission, not only as
they relate to military retired personnel, but to all competitors for
civservice positions.
Al Senator Boccs. Thank ;you, Mr. Chairman. Thank you, Mr. Macy.
Senator YAnno touGln. Mr. Maey , in section 205, I note that you
direct the main attack at that on the basis that it provides that notice
must first be given of an existing vacant before ou can give exami
nations for people who would fill it. This would always necessitate
a time lag whoa there was a vacancy before you could fill it with com-
petent personnel. It seems to me that is a good objection. If the
words "the fact that a, vacancy exists" were linen out of the fifth line
of section 205, would you still have the same objection to that section?
Mr. MACY. I would still have the objection because it seems to me
that what would still be the case is that you would create an obstacle
course of undue and unfair proportions for the military retiree in
competing for Federal positions because the statute without 205 re-
quires that a, military retiree go through the normal civil service proc-
ess in competing for consideration and my belief is that the normal
process assures that the merit system is being properly adhered to.
Senator YAmrronouorr. Well, that. was my next question.
In the present applications for employment are retired military
personnel and purely civilian personnel both treated alike in the quali-
fications required? Do they -both have to go through the examina-
tions?
Mr.MA.CY. Yes, sir. There will be no distinction, and in section
204 and in the so-called Gilpatric memorandum, the Department of
Do &;;o has been assured that there will not be preference for re-
tired military personnel who may compete for positions within the
Department of Defense.
Senator YAxmrtoucn. Both receive equal treatment under the law
under existing statutes insofar as qualifications for the office are con-
corned, disregarding the matter of dual compenssation?
Mr. MACY. That is right, this statute was not intended to change
that.
Senator YARuonouou. Any questions by the staff ?
Mr. MINPoN. Mr. Macy, you said you would have to revise your
examining procedures both in regard to the employment of military
personnel and without regard to the military personnel. Would you
care to clarify that a little bit?
Mr. MACY. Yes, because this assumes that once a vacancy has been
established you would then initiate the announcement, the examining,
the rating, and the certification process.
It also builds in a period of delay for notice. It would be necessary
for the Commission to redesign its system to incorporate this process
for all jobs.
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DUAL-COMPENSATION AND DUAL-EMPLO
Mr. MNTON. Because you would never know whether a military
person
Mr. MACY. No, you would not know whether you were going to get
the general public as well as the military retiree.
Now, my impression is that section 205, as it has been written, as-
sumes that the retiree is to be hired before a selection is even con-
sidered. Well, this is an inappropriate assumption, because the mili-
tary retiree must meet the qualifications standards for competing in
the examination, he must take the examination, whatever its form
may be, assembled or nonassem.bled, he must be rated in competition
with others who are in that examination, he must go through the
certification process for selection. In my opinion this is an adequate
safeguard as administered by the Commission and its board. of exami-
ners today to assure that there is not favoritism in the process with
respect to those who are retirees, and there is further action in the
Department of Defense through the Gilpatric memorandum, and
through section 204 in the bill to see to it that there is no preference
because of the presence of the retiree within the Military Establish-
ment at the time he retires and is considered for civilian employment.
My belief is, as I have expressed in my testimony, that section 205
virtually nullifies one of the basic principles, my principle No. 3, that
we seek in this legislative reform.
Senator YARBOROUGII. Any further questions of the staff ?
Mr. GULLEDGE. Yes.
Senator YARBOP.oUGI1. Mr. Gulledge.
Mr. GULLEDGE. Mr. Cha,itn-.an., I have one question.
Mr. Macy, on page 11 of your prepared statement, pertaining to
section 204, you mention that this section incorporates into law in
somewhat expanded form certain existing administrative procedures
in the Department of Defense. I wonder if we could get that ex-
panded upon for the benefit of the committee. What did you have
in mind about certain existing administrative procedures?
Mr. MACY. Yes, I would be happy to, Mr. Gulledge.
What I am referring to there is what in the popular parlance
has become known as the Gil atric memorandum.
Deputy Secretary of Defense Gilpatric, on July 5, of 1961, in re-
sponse to interest expressed in the Congress and in the executive
branch issued to the Secretaries of the Army, Navy, and the Air
Force, a policy with respect to the employment of retired military
personnel and established certain administrative safeguards in the
form of higher level review with respect to those military retirees
who were seeking employment in the same establishment where they
had served within the service.
I would be pleased, Mr. Chairman, to submit for the record of
this hearing a copy of the Gilpatric memorandum of July 5, 1961,
another memorandum dated October 30, 1.962, also from Deputy Sec-
retary Gilpatric, which covered retired military personnel in non-
appropriated fund positions as well as in those funded by appropria-
tions.
These are the administrative practices which I referred to in the
first paragraph on page 11.
Senator YARBOBOUGII. Do you have a copy there of the. Gilpatric
memorandums?
Mr. MACY. Yes, sir.
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44 DUAL-COMPENSATION AND DUAL-ZMPLOY=NT LAWS
Senator YARBOROUGII. If you have an extra copy I would like to
have that insertetl in the record at tltis point.
(Th(3 memorandum referred to follows:)
Memorandum for the Secretary of the Army. JULY 5. 19(i1.
the Secretary of the Navy.
the Secretary of the Air Force.
Subject; Employment of retired military personnel.
The basic objective in filling civil service positions is to assure the appointment
of fully qualified individuals-generally the best qualified among those under
consideration. In most instances this should be a candidate selected from eligible
career employees, in accordance with inservice placement and promotion
procedures.
There are, however, Instances in which it is desirable and necessary to recruit
from outside the Federal service. In such instances, the objective remains the
same: to appoint the best qualified person available.
One source of outside recruitment is retired military personnel who, within
statutory limitations, have every right to seek and to be considered for civil
service positions on the same basis as other citizens. Furthermore, for some
positions, there will be retired military personnel who possess qualifications
which make them a particularly good recruitment source.
In the Department of Defense, however, we have a special obligation to assure
that consideration of retired military personnel for civil service positions is
extended on an equitable basis and that there is strict compliance in spirit and
in procedure with the fundamental merit system principle of open public com-
petition. Such an approach is essential not only in the interests of the public
and of career civil service employees, but in order to protect retired military
personnel from unwarranted allegations that they obtained their positions
through influence based upon prior military service.
To establish safeguards which will reassure all concerned that selections
for civilian positlons in the Department of Defense are being made on an equi-
table basis it is requested that, to the extent not already Incorporated in your
respective personnel regulations, you include the following instructions and
establish any controls needed to assure that they are compiled with :
1. Full consideration, in accordance with inservice placement and promotion
procedures, will be given to eligible career employees before selecting retired mili-
tary personnel for a civil service position.
2. When selection is from an established civil service register, retired military
personnel will be accorded treatment consistent with the provisions of the Vet-
craa's Preference Act and civil service regulations.
3. Before selecting a retired military person for a clvllnn position, other than
by certification from an established civil service register, recruitment for the
position will be conducted in a way designed to assure that reasonable efforts
are made in obtain applicants from all possible sources and in n manner that will
avoid any suspicion of attempts to unduly limit competition. This requires that
the vacancy be well publicized and recruitment conducted over a period of time
long enough to give all interested candidates an opportunity to apply and that
qualification requirements for a position not be written in a manner designed
to give advantage to a particular individual. This will not be interpreted, how-
ever, to require any special recruitment efforts or delays in selection for shortage
category positions for which advanced lnhiring rates have been approved.
4. Positions will not be held open pending the retirement of a person in the
military service in order to provide that person with a preferential opportunity
to be appointed to the position.
.1. Action to employ a retired military person at an installation at which he
was stationed for duty within the G-Month period immediately preceding the
proposed appointment will require prior approval by the Secretary of the military
department concerned or his designee for the purpose. Requests for such ap-
proval will be accompanied by a statement of the actions taken to comply with
numbered paragraphs 1 to 9, above, and of the procedures followed in determin-
ing that the retired person was the best qualified applicant. Exception to this
requirement for prior clearance may be made for shortage category positions for
which advanced inhiring rates have been approved.
RoswzLr.L. Gurexsia
Deputy Secretary/ of Defense.
Signature authenticated by. HENRY E. LOFDAAL,
Chief, Correspcmdenoe Control Section.
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT
OCTOBER 30,1962.
memorandum for The secretaries of the military departments.
The Administrative Assistant.
The Chief, Defense Atomic Support Agency.
The Director, Defense Communications Agency.
The Director, Defense Intelligence Agency.
The Director, Defense Supply Agency.
The Director, National Security Agency.
Subject: Employment of retired military personnel in nonappropriated fund
positions.
Reference is made to my memorandum of July 5, 1961, subject: Employment of
retired military personnel.
While this memorandum dealt only with the filling of civil service positions,
the basic concepts in the memorandum have equal application to the filling of
positions in the Department of Defense which are not in the competitive civil
service, such as those paid from nonappropriated funds. Positions in Federal
instrumentalities, regardless of the source of the funds, are. public positions and
the Department has an obligation to assure that equal consideration is given to
all citizens seeking employment in such positions.
The objective with regard to these positions must be to obtain the best quali-
fied persons on a completely fair and objective basis. Generally, as with civil
service positions, a well-qualified person can be found among the present em-
ployees of the activity. When positions cannot be filled by inservice placement
and it is necessary to resort to outside recruitment, all persons, including eligible
retired military personnel, have a right to be considered on an equitable basis.
In order to assure that this concept is carried out and to protect retired mili-
tary personnel from unwarranted allegations that they obtained their positions
through influence based upon prior military service, it is requested you include
the requirements listed below in the employment regulations and procedures of
the various nonappropriated fund activities and establish any controls needed to
assure that they are complied with when filling full-time positions :
1. Full consideration, in accordance with inservice placement and promotion
procedures, will be given to qualified current employees of the nonappropriated
fund activity before resorting to outside recruitment, including the selection of
retired military personnel for nonappropriated fund positions.
2. Before selecting a retired military person, recruitment for the position will
be conducted in a way designed to assure that reasonable efforts are made to
obtain applicants from all possible sources and in a manner that will avoid any
suspicion of attempts to limit consideration to a particular individual or class
of individuals.
3. Qualification requirements for a position will not be established in a manner
that will give advantage to a particular individual or exclude from considera-
tion appropriate civilian experience as opposed to military experience. It is
recognized that for some positions retired military personnel or others with
military experience make a particularly good recruitment source as; for example,
applicants for a position as an exchange officer, exchange manager, or club
officer who have served in a similar capacity while in a. military status. This
should not preclude, however, impartial consideration of other applicants who
have civilian retail management or club management experience.
4. Positions will not be hold open pending the retirement of a person in the
military service in order to provide that person with a preferential opportunity
to be employed in the position.
5. Action to employ a retired military person at an installation at which he
was stationed for duty within the 6-month period immediately preceding the
proposed employment will require prior approval by the Secretary of the mili-
tary department concerned or his designees for the purpose. Requests for such
approval will be accompanied by a statement of the actions taken to comply with
numbered paragraphs 1 to 4, above, and of the procedures followed in deter-
mining that the retired person was the best qualified applicant.
A copy of the instructions issued to comply with this memorandum should be
furnished the Assistant Secretary of Defense (Manpower) by December 1, 1962.
RoswELL GILPATmc.
Senator YAkuonouGr3. Any further questions?
Mr. Gur.LEDGE. No further questions, Mr. Chairman.
Senator YARBOROUGH. Chairman Macy, I have a question about
your statement that your authority would not apply to positions in the
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33 DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS
Senate, House of Representatives, or the Office of the Architect of the
Capitol, to except front the provisions in the bill that relates to those,
a.nd I presume you refer to the provisions under limitations on dual
compensation beginning at page 3G of the House bill and relating to
employees of the Senate, of the House, and the Architect of the Capi-
tol, and there are some six classes of exceptions there; and then under
section 6 there are about eight or nine different statutes relating thereto
and referred to.
Does this proposed measure change in any way the existing statute
pertaining to the Senate, the House, and the Office of the Architect of
the Capitol concerning dual compensation ?
Mr. 1TACY. No, I beieve it does not. The reference in my testimony
was to exempt from the regulatory control of the Civil Service Com-
mission the positions pertaining to the legislative branch.
Mr. 'WITIIiM. They would be treated the same as those in the execu-
tive branch, except that the Civil Service Commission would have no
authority to make regulations. These would be done in each House,
but they are subject to the law.
Senator Tl ARiiloROt;Gii. Yes, but I was asking were these statutes
changed any ? Does this bill change any existing statutes ?
Mr. WrriLim. They are now subject to (lie HUG law but there are
certain exceptions that have been made for their benefit. Now, these
same exceptions to the provisions of the bill may be made.
Senator YAwioiiot"Gii. This bill does not change any existing stat-
utes in regard to dual compensation insofar as the legislative em-
ployment is concerned ?
Mr. 11 ITli-1M, It revises the 1916 law. It does not amend any of
the existing laws specifically relating to the legislative branch-just
the general laws that included that branch.
't . _M_icr, It is priinarilc a codification of that.
Senator YAunORnt-011. lti o change?
Nfr. 1f.~Cr. That is right.
Senator Y,%RnoIiin iii. I will give you an example of one tiroblem
in [lie legislative branch. The pay is rifler low Here and this prob-
lem arises largely in t lie summer when normally in the past Congress
would adjourn liy Labor Day, In a normal year in the speedup
process which begins about May, the work accelerates in May, Tune,
.Tuly, and August. Now. we get sonic relief from the extra burden
of reproduetic,n of laws during .Ttine.July. and August. with student
employment, We have :a mail room that hires a good mane students
or young people during the summer on an hourly basis. r,onivtinies
they may have 4 hours. I days' work a week, or 4 or 5 hours a day.
They would like to work ninre: we could employ them for 3 or 4
more hours a day if thiev worked 4 or 5, but I believe existing laws
prohibit that; do they not?
Mr. WrriiA.m. There is a haw that prohibits that, but because of
the pay system over here I understan that the limitation does not
apply to ninn}" of these. This is the 1916 law.
Tinder this bill, if it :tpplied, you would have authority right here
to snake an exception for these partiruhtr eases, so You could continue
the present- practice. The house committee wanted to permit this
to be clone but, not to say how it would be done, bait leave this up to
ilie ITonse and I Tae Senate to do it,
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Senator YARBOROUGH. I believe there is a little more liberality of
operating procedures over in the House than we have here.
Mr. Paschal.
Mr. PASCHAL. Mr. Chairman, on this topic you are speaking of now,
you say those would be exempted. Does that come under the exemp-
tion provided in this bill for the Speaker of the House and the Senate
and the President?
Mr. WITIIAM. You mean in this same part he is talking about or
in the dual compensation?
Mr. PASCHAL. I am talking about the exemptions you were speaking
of in answer to the chairman % question.
Mr. WITHAM... Yes.
Mr. PASCHAL. They would come under that proviso?
Mr. WITHAM. That is right.
Mr. PASCHAL. Thank you.
Senator YARBOROUGII. Any further questions?
Thank you, Chairman Macy, and those gentlemen with you, Coin-
missioner Hampton and the staff members with you.
Thank you very much.
Mr. MACY. Thank you, sir.
Senator YARBOROUGH. I think you have given us a good bird's-eye
view of what the future witnesses are going to testify about.
The next witness is Winston G. Whal1., Assistant Director, Com-
pensation Affairs, Office of the Assistant Secretary of Defense for
Manpower, Department of Defense.
STATEMENT OF COL. WINSTON 0G. WHALL, U.S. ARMY, ASSISTANT
DIRECTOR, COMPENSATION AFFAIRS, OFFICE OF THE ASSISTANT
SECRETARY OF DEFENSE (MANPOWER)
Colonel WHAT L. Thank you, Mr. Chairman.
I appreciate the opportunity to appear before this committee as the
Department of Defense witness on S. 1912, which was submitted by the
Civil Service Commission, and H.R. 7381, the administration's legis-
lative proposal which has been reported favorably by the House Com-
mittee on Post Office and Civil Service in an amended form. We
consider this proposal to be one of the most important pieces of legisla-
tion that has been presented to this Congress and urge favorable
consideration by the Congress.
Because Chairman Macy has discussed with you the purpose and
justification for this legislative proposal, and presented the adminis-
tration's views on H.P. 7382, as amended, I will not attempt to go into
the details of these bills. However, I wish to discuss briefly the major
considerations which have led us to support the purpose and objec-
tives of this legislative proposal.
In the Department, we are not only concerned with the morale and
well-being of the civilian work force, but we also are keenly aware of
our obligation to insure that retiring military personnel, many of
whom are forced to terminate their military career at a time when they
are relatively young and with family responsibilities at their peak,
have an equal opportunity to seek civilian employment on the same
basis as other citizens. We believe that enactment of this legislation
will provide consistent and equitable treatment for all categories of
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t1L-cOISPENSAPION AND DUAL-EMPLOY LENFr LAWS
retired personnel and in addition, will safeguard the career oportuni-
ties of our Federal civilian employees.
The inequities and inconsistences in the existing statutes create a
serious morale problem among our military personnel, both active and
retired, and has been of great concern to us all. It is hard to rational-
ize and more difficult to explain under today's conditions the fact
that certain retired military personnel are barred completely from
Federal civilian employment while others may be employed subject
to certain compensation limitations and others may be employed with-
out any limitation on their total combined income.
This disparity in the treatment of our retired personnel may have
been justified at the time these statutes were enacted. However,
conditions today within the Military Establishment are considerably
different and we see no basis for this distinction.
'f'it-him our Active Armed Forces we have large numbers of Reserve
officers who entered the military service during the World War II
buildup and have remained on active duty to meet the continuing re-
quirements of our Armed Forces since that period. They are now
achieving ret.irenient. eligibility after 20 years of active service and
retire under the same laws that apply to Regular officers. In fact,
the laws that pertain to the voluntary and physical disability retire-
ments of Regular officers, Reserve officers, and enlisted personnel are
the same.
Although there are on1F two basic laws which place Government-
wide restrictions on the civilian employment and total compensation
of retired military personnel, the exceptions by statute and judicial
interpretations, together with the numerous decisions of the. Comp-
troller General, have created a situation which is confusing and com-
plex and most difficult- to administer. Two recent decisions of the
Conipt.rollcx General highlight the confusion surrounding the applica-
lion of these laws to our retired military personnel.
It has long been held that Reserve officers were not subject to the
dual compensation restrictions of the. Economy Act of 1932. How-
ever, on July 9, 1962, the Comptroller General` held that Reserve of-
ficers of the Army or the Air Force who were serving on active duty in
temporaryy grades (to which they were appointed under sec. 515
of tlhe Off'iver Personnel Act of 1947), equal to or higher than their
Reserve grades at the time of retirement for physical disability, may
not be considered as having been retired under laws relating to
Reserve officers so as to exempt them from the dual compensation
restrictions of this acct..
As a matter of equity, there appears to be no logical reason why the
dual compensation restrictions should apply to a Reserve officer who
served on active duty as a temporary officer in a grade equal to or
higher than his Reserve grade and who retired for physical disability,
and such law should not apply to (1) a reserve officer who served on
active duty as a temprary officer in a grade lower than his Reserve
grade and who retired for physical disability, and (2) a Reserve officer
who served on active duty as a temporary officer and retired with 20
or more years of service.
It. has been determined that there are approximately 475 Reserve
officers who are affected by this decision and at the present time nearly
225 have a combined retired pay and civilian income, in excess of
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 39
$10,000. Consequently, since October 1, 1962, the Army and the Air
Force have reduced the retired pay of these officers. The average
monthly amount being withheld is approximately $200, with certain
officers having their retired pay reduced by as much as $350 per
month. The remaining members of this group, although not having
their retired pay reduced at this time, will suffer reductions in their
retired pay when and if their total combined income reaches $10,000.
The Comptroller General has ruled that retroactive collection action
may be postponed until the end of the 1st session of the 88th Con-
gress. If this action becomes necessary, liability to the Government by
some of these officers will be as high as $30,000.
Senator Y umoizOUGIr. We are very rapidly a proaching the end
of the period of grace that was given by the Comptroller General
about this.
Colonel WrrALr,. Yes, sir. We certainly are. About the 3d of
.January appears to be the date.
In addition to placing an undue hardship on the officers concerned,
it has also caused the Federal Government to lose the services of cer-
tain employees, as it has been reported that certain temporary officers
have terminated their Government employment as a result of this finan-
cial hardship. Section 102(f) of S. 1912 and section 201(g) of H.R.
7381, as amended, by the House Committee on Post Office and Civil
Service, would relieve these retired officers from the requirement of
reimbursing the Government from these overpayments.
The other group of officers who have been adversely affected by a
recent Comptroller General decision are retired temporary warrant
officers of the Army and the Air Force. These officers have always
been considered, along with all other Reserve officers, as not being
subject to the 1894 Dual Office Act. It has now been held that certain
temporary warrant officers are subject to the limitations of this act
in the same manner as regular warrant officers.
At the present time the military departments have identified 1,188
temporary warrant officers who are subject to this decision. Of this
number, 872 are currently employed by the Federal Government and
whose employment would have to be terminated as a result of this de-
cision unless relief legislation is enacted. A review of the cases iden-
tified indicates that some of these temporary warrant officers have been
employed since 1956 and 1957 with overpayments totaling as much as
$56,000.
With the understanding that future, as well as past, salary payments
to these temporary warrant officers are not legal under the present
law and will be subject to collection if legislative relief is not enacted,
the Department has continued the employment of these officers until
the end of the current session of Congress. If legislation making the
1894 act inapplicable to these warrant officers is not enacted during the
1st session of the 88th Congress, these temporary warrant officers, like
the Reserve officers referred to earlier, will have to reimburse the Gov-
ernment for these unintentional overpayments.
Senator YAnnormuaTi. Colonel Whall, a member of the staff wants
to ask a question.
Mr. MINTON. Have some of these officers and warrant officers already
started paying back this overpayment? Have they been having it
deducted from their retirement pay ?
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40 DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS
('olonel IV]IALL. No, sir. There have been no payments of the over-
payments. 117hat has happened in the Reserve officers, that their
nay was being reduced tote $10,000 level beginning on October 1,
u the overpayments prior to October 1, 1962, have not been collected,
nor have the overpayments to the temporary warrants as of this time,
but this holding is from their current pay and current retired pay.
;Sir. MIr TOX. Thank you, sir.
Colonel WILT. ,. Section 102(g) of S. 1912 and section 201(h) of
II.R. 7881, as amended by the, House Committee on Post Office and
Civil Service, would remove these retired temporary warrant officers
from the limitation of the 1894 Dual Office Act and would relieve
them from the overpayments.
Enactment of this legislation would make available to the Depart-
ment of Defense an important source of skilled manpower. During
each of the last 4 years roughly 10 percent of the personnel who have
retired from active duty were Regular officers who could not be em-
ployed by the Federal Government because of the Dual Office Act of
1R94t. If current laws remain in effect and Regular officers continue to
be barred froth seeking Federal employment, we estimate that in each
year through fiscal year 1970 approximately 4,000 to 6,000 regular
officers, or about 8 to 12 percent. of the total number of annual retire-
ments from active duty will be precluded from competing for Federal
civilian employment. While this number is not great, it. represents a
group of highly mnot ivated. well-trained individuals whose back-
ground, knowledge, and experience can be effectively utilized within
the Department.
'We have need for physicists, electronic engineers, marine engineers,
bacteriologists, communications specialists, intelligence specialists, in-
dustrial hygienists, and operations analysts, to name a few, and have
had difficult y in securing civilian employees with these qualifications.
As of December ;1. 1962, there were spread throughout. 108 Depart-
ment of the Army activities 1.015 vacancies in grades GS-5 and above
in these categories and represented roughly 4 percent of the 24,000
civilian employees in this group.
As of July 1. 1963. the Department of the Navy reported 1,144
vacancies and the Department of the Air Force reported 470 vacan-
cies in grades GS-5 and above in the scientific, engineering, and
operations analyst categories. Many of these retired regular officers,
having worked in various programs and projects requiring these skills
and knowledge while on active duty. would he well qualified for these
positions.
We recently made a survey within the Department to determine the
n nnher of Regular officers with scientific and professional degrees.
such as engineering. medicine, the biological, physical, and social
sciences. business, and la< who are scheduled to retire from the Armed
Forces during the next 10 years and who would not he eligible to com-
pete for Government positions if time current dual employment laws
renhain in effect.
we estimate that. at the present time, there are approximately
1.q.000 officers in this category who will be retiring from the AArgued
Forces dturina the next 10 years. .'ts these officers possess scarce skills
which are in great demand in the civilian economy. I am sure we all
a_Tree that it would he to the advantage of the Government to
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 41
have these individuals eligible to compete for and accept Federal
employment.
In summary, I would like to state that the Department of Defense
believes that the enactment of S. 1912, the administration's dual com-
pensation legislative proposal, which was submitted by the Civil
Service Commission, would achieve the objectives for which it was
designed; namely, to (1) place into one law all existing dual com-
pensation and dual employment laws and thus overcome the many
administrative problems and hardships which have been brought upon
our people as a result of the many confusing and conflicting statutes
and decisions; (2) provide equitable treatment of all military person-
nel, regardless of whether they are Regular or Reserve, officer or
enlisted; (3) make available to the Department another source of
highly trained manpower whose skills and knowledge are in great
demand; and (4) remove many of the inequities affecting our career
civilian employees.
We also consider that H.R. 7381, as amended by the House Com-
mittee on Post Office and Civil Service, would represent an important
step forward in achieving the above objectives, and we also believe
that the amendments proposed by Chairman Macy would. greatly
improve this legislative proposal.
We realize that with the increased number of retirements from
active duty, and if this proposal is enacted into law, additional num-
bers of retired military personnel will seek civilian employment within
the Department of Defense. As in the past, we will continue to take
the necessary action to protect the career civilian employee when
filling civil service positions to insure that retired military personnel
do not receive an advantage as a result of their prior military service.
Furthermore, we realize that we have a special obligation to assure
that consideration of retired military personnel for civil service posi-
tions is extended on an equitable basis and that there is strict com-
pliance in spirit and in procedure with the fundamental merit system
principle of open public competition.
We accept this responsibility, not only in the public interest, but
we also desire to protect retired military personnel from unwarranted
allegations that they obtained their positions through influence based
upon prior military service.
Thank you for permitting me to appear before you this morning.
I will be pleased to answer questions the committee may have con-
cerning this legislative proposal and its application within the. Depart-
ment of Defense.
Senator YARBOROUGH. Thank you, Colonel Whall.
Senator Boggs?
Senator Boaas. No questions.
Senator YARBORouGH. Any questions from the staff ?
The staff has certain questions, Colonel Whall, that it has requested
the committee to ask.
One is what is the logic of the 2,000-plus 50 percent of the remainder
formula for Regular officers?
Colonel WHALL. Sir, the figure of $2,000, at the time it was selected,
it was selected primarily because it was approximately the average
yearly retired pay of an enlisted man, however, with the recent pay
raise, and as Chairman Macy has mentioned, raised it to'$2,300, which-
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44 DUAL-COMPENSATION AND DUAL-E TLOY N'T LAWS
would be the average. -Now the one-half of the remainder was chosen
as a reasonable compromise mtween the view that the retired military
man has earned and should be able to retain the entire amount of
his retired pay and, of course, those on the other side who say that
he should have none while he is working in a civilian job.
Of course, the position where lie would receive all his retired pay
did not recognize the policy which Congress has expressed over a
hundred years, that there should be some limitation on the retired
pay. This was a compromise position, a middle ground, so to speak.
Senator Y_u monorcn. What is the average retired pay of the
Reserve officer?
Colonel WIIALL. I believe, sir, that the 1964 budget figure that the
average retired pay of a reserve: officer. of all reserve officers, is about
$4,000 a year. pay
would be the amount they would be entitled to.
Senator YAanonoron. Then, certain retired officers take the position
that the formula of $4,1100 plus .50 percent for regulars would be fairer
than the $2,000 plus 50 percent. Do you have any comment on that?
Colonel IIALL. "Vcll, sir, the proposal of $2,500, we consider equi-
table for all personnel who are retired-officers, enlisted, Reserves and
Regulars, and as you know, the version as amended by the House
applied the restrictions only to the Regular. If this was maintained
then the position or the question there, it would be more equitable
on that basis.
Senator YAIIBOROUGII. If it applied to one group onl .
Colonel WriALL. If it applied to one group only, brit our position,
we maintain it should be equitable across the board.
Senator Y AItaonororr. Are there any other questions by the staff or
members?
Thank you, Mr. Whal 1.
The next witness is Dr. Linus Zink, Assistant Chief Medical Director
of the Veterans' Administration,
STATEMENT OF DR. LINAS A. ZINK, ASSISTANT CHIEF MEDICAL
DIRECTOR, VETERANS' ADMINISTRATION; ACCOMPANIED BY
DAVID A. TURNER, ASSISTANT GENERAL COUNSEL; AND A. T.
BRONAUCH, DEPUTY ASSISTANT GENERAL COUNSEL
Dr. ZINK. Mr. Chairman and members of the subcommittee, we in
the Veterans' Administration appreciate the opportunity you have ex-
tended to us to appear here today and to present our views with respect
to this legislation which, if enacted, would be most help ful to our
Department of Medicine and Surgery in administering the program
of hospital and medical care for disabled and war veterans.
Since I understand that Chairman Macy of the U.S. Civil Service
Commission either has discussed, or will discuss, with you the details
and impact of this legislation with respect to the Government as a
whole, I will confine my remarks to our area of principal interest-
the recruitment of physicians, dentists, and nurses.
You are familiar with the keen competition for medical personnel.
Many of you, and certainly the chairman because of his other capacity
as chairman of the Veterans' Affairs Subcommittee of the Committee
on Labor and Public Welfare are also familiar with the difficulty
we have in securing qualified physicians, dentists, and nurses to main-
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tain the enviable high standards we have achieved in our veterans'
program. Even though some splendidly qualified physicians, den-
tists, and nurses become available through retirement from the Armed
Forces, the provisions of section 62-of title 5, United States Code, the
so-called Dual Office Act, enacted in 1894, prevents us from availing
ourselves of their services.
Today we are endeavoring to recruit a physician who is qualified
in the new and rare specialty of hyperbarics-the use of high atmos-
pheric pressure for treatment purposes. We have located an eminently
qualified individual who would be willing to come with us, but be-
cause of the restriction upon appointing a retired Regular officer we
are unable to, avail ourselves of his services. This is not an isolated
situation. We have had qualified radiologists and pathologists ac-
tually apply to us, but whom we are unable to employ because of the
1.894 law.
Existing restrictions, on the civilian employment of retired military
personnel are generally agreed to be wasteful, unfair, obsolete, and
difficult to administer. They are wasteful because they deprive the
Government of the services of certain highly. trained, technically
skilled, retired military. personnel, whose technical competence and
professional skills, frequently acquired at Government expense, are
in scarce categories and in great demand in Federal agencies.
Enactment of this legislation would provide a reservoir for recruit-
ment of highly skilled and experienced personnel in those scarce cate-
gories of medicine, dentistry, nursing, and other scientific and para-
medical specialities which are unavailable to the Department.
Frequently, the technical knowledge and understanding necessary
for the performance of this work are frequently found only among
those men who have served the Armed Forces during a career in uni-
form. In many instances, these scarce categories of skills and under-
standing have been perfected and developed through training provided
at Government expense in the course of military service. Again, the
training possessed by certain of these military officers is virtually
unobtainable from any other source and would often be desirable in
many positions in the Department.
The retired military personnel, consequently, constitutes a useful
source of these scarce categories for civilian employment. This coun-
try cannot afford to waste this skilled manpower, especially in those
areas of endeavor that are peculiar only to the medical profession
of the Federal Government. Using the example that I have previously
mentioned, the new field of radioisotopes, in which the Federal Gov-
ernment has been a leader, is illustrative of the skill that has been per-
fected in the Federal service.
Thus, it would be expected that this legislation would provide some
relief in the continued employment of these professionally skilled
personnel for these shortage category positions. Again, where these
individuals are eagerly sought after by the private medical com-
munity, it would be much to the advantage of the Government and its
many research establishments to have such persons on the Government
payroll rather than in private industry.
Removal of the existing restrictions in these statutes would permit
the Department of Medicine and Surgery to offer these retired of-
ficers continuity of Federal employment while permitting them to
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44 DUAL-COMPENSATION' AND DUAL-EMPLOYMENT LAWS
retain the greater portion of their retirement annuity. As has been
previously stated, many of these officers are retiring at a very young
age and have many productive =ears of service to contribute to the
welfare of the Government, and medicine in general. This legisla-
tion would permit the continued employment of retired officers with-
out unduly jeopardizing the position or employment benefits and re-
tention rights of its civilian employees.
In terms of absolute numbers, the retired physicians, dentists, nurses,
and other specialists who would be employed in the Veterans' Adrnin-
istration if legislation such as here proposed becomes law would rep-
resent a minute fraction of overall Veterans' Administration employ-
ment. However, I can state that they would be persons whose skill
and experience would he invaluable.
I have directed my remarks almost entirely to the desirability of
repealing section 62 of title 5 which, in practical effect, is an absolute
bar against the employment of retired regular officers. I am mindful,
of course, that the bill also liberalizes the dual compensation law
(5 U.S.C. 59a). Without going into these provisions extensively, let
me say that to us the formula proposed seems fair and reasonable.
Tt. likewise would be most beneficial in extending the range of our
recruitment opportunities.
Thank you again, Mr. Chairman, for giving us this opportunity to
express our views and, in closing, let me state that the Veterans' Ad-
ministration strongly urges favorable consideration of this legislation.
Senator YARItoRQrit;ii. Thank you, Dr. Zink.
Any questions, Senator Boggs ?
Senator Boccs. I would like to ask you to refer to page 5 of your
statement, the first paragraph where you state:
This legislation would permit the continued employment of retired officers
without unduly jeopardizing the position or employment benefits and retention
rights of eivllian employees.
Now, "unduly jeopardizing." Can you give me an example of how
it would jeopardize it but not unduly ? .
Dr. Zi x x. That is a good question, Senator Boggs.
Actually, I think this is an overstatement of saying unduly jeopard-
izing because what we are concerned with here are scarce categories
that we cannot recruit up to the numbers required anyway, so they
would not be jeopardizing, in my opinion, at. all, the opportunities of
civilians because invariably we have unfilled vacancies in this type of
skill that we are looking for.
Senator BOOas. Thank you.
Senator YAiuioitouoia. f think that doctors, dentists, and nurses who
have served in the Armed Forces and have retired have certain mental
aptitudes for serving in the Veterans' Administration and in working
and moving from one large hospital or city or post to another. I
know you do shift your doctors from hospitals to hospitals after cei?-
tain tours of duty?
Dr. ZINX. Yes; we do not have specified tours of duty such as the
military has, but we do move them around. This is one of the values
of bringing in military people, well trained, aware of the same regu-
lations, in many instances similarity is a tremendous advantage.
Senator. YAitisonouoii. Thank you, Dr. Zink.
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The next witness is Admiral Denfeld, U.S. Navy, retired, of the Re-
tired Officers Association.
I understand you are accompanied also by Admiral Houser, the leg-
islative counsel, U.S. Navy, retired, of the Retired Officers Associa-
tion.
STATEMENT OF ADM. LOUIS E. DENFELD (RETIRED), PRESIDENT
OF THE RETIRED OFFICERS ASSOCIATION
Admiral DENFELD. Mr. Chairman, and members of the committee,
I am Adm. Louis E. Denfeld, U.S. Navy, retired, president of the
Retired Officers Association, with headquarters in this city.
The association consists of over 58,000 members, representing re-
tired officers of all of the seven uniformed services, including both
Regulars and Reserves, in all the 50 States. The association is grate-
ful for the opportunity to present its views and recommendations on
the bills S. 1912, and II.R. 7381 as reported by the House Committee
on Post Office and Civil Service.
The Subcommittee on National Policy Machinery, of the Senate
Committee on Government Operations, of which the chairman was
Senator Jackson of Washington, recently addressed itself to the spe-
cific matter of the need for legislation in the areas covered by the pend-
ing bill.
The report of this subcommittee is found in committee print, 87th
Congress, 1st session, entitled "Study Submitted to the Committee on
Government Operations, U.S. Senate, by its Subcommittee on National
Policy Machinery (pursuant to S. Res. 20, 87th Cong.).11 It is
desired to invite the committee's attention to the following which is
contained in pages 5 and 6 of this report, and is headed "The Dual
Compensation Statutes."
The so-called dual compensation statutes offer another illustration of a body
of law adopted for one objective in the past but serving today to hamper the
Government in recruiting top national security talent.
In broad, the law now says that retired Regular officers can serve the Govern-
ment as full-time civilian officials only in Senate confirmation posts, or if they
are retired for physical disability. Further, this limited group of retired officers
who are allowed to accept civilian jobs must in most instances waive their retire-
ment pay, waive their civilian pay, or else accept a limitation of $10,000 on their
combined annual income.
The laws not only discriminate against retired officers; they discriminate be-
tween them. They fall far more heavily upon retired Regular officers than upon
retired Reserve officers.
Mr. Roger Jones, the former Chairman of the Civil Service Commission, put
it this way to the subcommittee :
"Why * * * should we deny ourselves of their services and deny them another
career * when they still have 20 years of useful life ahead of them? I
think it makes no sense at all."
The dual compensation laws should be reviewed and amended * * *.
The above outlines the problem before this distinguished committee.
Stated in the plainest of terms, it is clear that under present laws, many
retired officers of the military services are entirely barred from being
employed by the Federal Government in civilian positions, while others
are drastically restricted in accepting such positions.
Congressman Robert L. F. Sikes, of Florida, on April 9 of last year,
summed up-in a cogent and succinct manner-the need for the enact-
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inent of the type of legislation this committee is considering, when
he said :
Retired officers have been trapped in a sprawling jungle of restrictive meas-
ures. Federal Government employment is denied to many highly qualified people
who could fill critical jobs. Many others are required to sacrifice part of their
retired pay and nil retired officers who venture into Government service are
exposed to an incredible morass of conflicting statutes, Court of Claims rulings
and Comptroller General decisions.
This situation has a twofold detrimental effect. It renders impos-
sible employment of competent and available retired officers, highly
trained and experienced in important fields of Government activity,
at a time when their service would he greatly beneficial in the defense
efforts. It also deprives these officers of the opportunity of eniploy-
nient by their Government in civilian positions to which other citizens
of the United States are eligible.
Let: us look first at the Dual Employment Act of 1894 (act of July
31, 1894; U.S.C. 1940 ed., title 5, sec. 62). Under that act, a retired
Regular officer whose retired pay is $2,500 per year or more, who was
retired for reasons other than physical disability, may not be employed
by the Federal Government, except in an office to which he has been
elected or one to which he has been appointed and confirmed by the
Senate. All other types of Federal civilian employment are barred
to him.
This is because such a retired officer, in a technical sense, unlike other
Federal retirees, continuesto hold office in a military service subsequent
to his retirement from active duty. The mere fact of "holding an
office." brings him under the prohibition contained in the Dual Em-
ployment. Act. In other words, the retired officer, not on active duty,
is subject to this prohibit ion because of his status in retirement which
is peculiar to hisgroup.
The Dual Compensation Act of 1932 is another bar to the utilization
of this reservoir of this talent. and experience. Under this law, as
amended, a retired officer eligible for Federal civilian employment,
whose retired pay and the pay of the civilian position are both less
than $10,000 per year, is limited to the receipt of $10,000 per year.
IIowever, if either the retired pay or the pay of the civilian position
is greater than $10,000 per rear, the individual can elect to receive one
pay or the other during the period of his employment. An officer
retired for physical disability as the result of combat wounds or the
explosion of ati instrumental 'if y of war, may receive both his retired
pay and the pay of the civilian office during his employment.
There is one provision in the bill. H.R. 7381, as re ported by the House
Committee on Post Office and Civil Service, to which it is desired to
invite the committee's particular attention, namely, section 201. This
section provides, with certain exceptions, that a retired Regular officer
who holds a civilian office shall receive the compensation of such office,
but only the first $2,000 of his retirement pay, plus one-half of the
remainder, if any, There is no similar restriction as to retired Reserve
officers. Section 201 also provides that the $2,000 shall be increased
by appropriate percentages in direct proportion to each increase in
such retired pay under section 1401a (b) of title 10, United States Code,
to reflect changes in the Consumer Price Index.
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DUAL-COMPENSATION AND DUAL-E P
It is respectfully submitted that the legislative history in connec-
tion with military pay and retirement clearly supports the proposition
that Congress recognizes the fact that retired pay is earned ray.
A statement by Mr. Charles R. Hook, who was Chairman of an
Advisory Commiotee on Service Pay, would appear to be pertinent to
the matter now being discussed. The statement in question was made
in 1955 when Congress was considering the bill which became the
Career Incentive Act of that year. In discussing the items that enter
into military pay, Mr. Hook stated that
Total compensation should be recognized as including all elements, basic pay
and allowances, special pays, reimbursements, and deferred compensation such as
severance, retirement and survivor benefits. Each is an essential of a balanced
and interrelated program and should be judged in relation to the whole. [Italic
supplied.]
The logical conclusion to be drawn from the above is that the active
duty part of the pay of a member of the uniformed services is set at
a figure which takes into consideration the retired pay rights he is
accruing, which he will not enjoy until he retires. In other words, he
receives less active duty pay than he actually earns upon the assump-
tion that the difference is in the nature of a deferred payment which
he will receive after his retirement from active service.
Congressman Sikes analyzed the effect of the enactment of the pend-
ing bill. in its present form, by stating that--
It, demolishes the time-honored concept that military retired pay is earned for
services rendered.
The study submitted by the Subcommittee on National Policy Ma-
chinery, previously referred to, had this to say with respect to the dual
compensation laws
These statutes purport to keep a retired officer from drawing two Government
salaries. But actually, the two Government checks involved are very different.
One is a salary check. The other is for retirement benefits earned over a 20- or
30-year career in the Armed Forces.
Military retired.pay being earned pay-as the above demonstrates-
the association submitsthat it is only equitable that. a Regular military
retiree, like a Reserve retiree, should receive the full, amount of. his re-
tired pay 'concurrently with the salary of any Federal civilian position
he may occupy.
Accordingly, it is recommended that the bill, H.R. 7381, be so
amended. We are prepared to submit for the committee's considera-
tion, language which it is believed will 'accomplish this purpose.
This proposal, if 'adopted, would establish consistent treatment
among 'all retired officers, Regular and Reserve, which the adminis-
tration's bill, as introduced H.R. 7381) would have accomplished.
The purpose of the administration's bill was to create for the future
the same opportunities for employment and compensation to all re-
tired officers who receive retired pay, without distinction, with a saving
clause which would give to those already employed by the Government
the right (1) to continue with their present opportunities for employ-
ment and compensation or (2) to place themselves under the new pro-
visions, if they so elected.
Section 205 of the bill, H.R. 7381, as reported, introduces new re-
quirements for competitive examination before employment. The
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original purpose of the legislation was not to modify procedures for
qualifying for einploynient, but to remove restrictions against the
employment of retired officers, Regular and Reserve alike, with similar
opportunities or restrictions winch, in the wisdom of Congress, it
nip ht be considered desirable to retain. The introduction of new pro-
cedures, making more difficult the employment of retired officers,
would appear to defeat the original purpose of the legislation as pro-
posed by the administration. The association, therefore, recommends
that section 205 be deleted from the bill.
Aside from the very urgent reasons for appropriate legislation in
this field, which have been recited, there is the consideration that the
laws are now so complicated as to confuse even lawyers in the Federal
Government whose duty is to administer them. This situation has re-
sulted in the employment of retired officers by agencies of the Govern-
ment as the result of the Honest belief of bot]i the individual and the
agene that the employment was not prohibited by law. In these cases,
upon later discovery of violation, it has been found necessary for the
Government to recover the receipt of moneys paid as salaries through
a checkage of the officers retired pay with great. hardship to them and
their families.
A considerable number of temporary warrant officers of the Army
and Air Force, are presently faced with the necessity of repaying to the
Government varying sums of money which they, conscientiously, be-
lieved they had earned in accordance with existing laws. This resulted
from a ruling of the Comptroller General in which it was held that
such officers, who had theretofore not been considered subject to the
prohibitions of the Dual Office Act of 180-1, were employed by the Gov-
ernment in violation of that act. To withhold their retired pay, now,
in order to effect recoupment, of the amount received as salary from
their civilian employment would create tremendous hardship to them
and their families and would constitute an unfortunate injustice.
A similar sttuation was created by another Comptroller General
decision which held that certain Reserve officers who were retired for
disability while serving in a temporary Army of the United States
commission, higher than or equivalent to their Reserve rank, are sub-
ject to the dual compensation restrictions of the Economy Act of 1932.
In both of these situations implementation of the decision retro-
actively is being withheld pending consideration of this (or similar)
proposed legislation. We believe this distinguished committee will
want to grant this relief based upon the principles of equity, fair play,
and goon conscience.
The Retired Officers Association strongly recommends enactment of
the bill ILR. 7381 as reported, amended as previously suggested.
Thank you, Mr. Chairman.
Senator Y ARBOROtcii. Thank you.
Admiral I)eufeld, your organization includes both Reserve and
Regular retired officers?
Admiral l)ENFEI,an. That is right.
Senator Y.Smionoucir. find of the different armed services?
Admiral DI;NFEI.I>. Yes; that is right.
Senator Z AiuiouOCCII. Any questions, Senator Boggs?
Senator Poce.s. No quest ions.
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DUAL-COMPENSATION AND DUAL-EMPLOY
Senator YARnoRouGII. Thank you, Admiral Denfeld, for your state-
ment.
Admiral DENFELD. Thank you very much.
Senator YARBOROUGI3. The next witness is Mr. John Mears, assistant
director of legislative committee of the American Legion.
Mr. Mears, you may proceed.
STATEMENT OF JOHN S. MEARS, ASSISTANT DIRECTOR, NATIONAL
LEGISLATIVE COMMISSION, THE AMERICAN LEGION
Mr. MEARS. Mr. Chairman, members of the subcommittee, I appre-
ciate your courtesy in affording me this opportunity to present the
views of the American Legion on the proposed Dual Compensation
Act of 1963. I know your time is limited, Mr. Chairman, so I shall
be brief.
I believe I can best set forth our views by summarizing the testi-
mony the American Legion gave before the House Post Office and
Civil Service Committee last July. I will include comments on the
provisions of the House bill as it was recently reported. The legisla-
tion in the House, H.R. 7381, was identical to S. 1912, when originally
introduced.
The dual office-dual compensation laws are extremely complicated
and should be simplified. We believe that any retirement pay restric-
tions, which may be retained, should be applied uniformly to both
retired Regular and Reserve officers. In. fact, the American Legion
would endorse legislation to completely eliminate all such restrictions.
The legislation reported in the House would eliminate the dual
office prohibition with respect to retired Regular officers, but would
retain dual compensation limitations. Under present law, as a result
of a series of decisions of the U.S. Court of Claims, there are prac-
tically no restrictions upon retired Reserve officers with respect to
either dual office or dual compensation. The House proposal would
not alter this situation. Hence, a basic discrimination between retired
Regular and Reserve officers is maintained. The American Legion
can perceive no valid reason why such discrimination should be re-
tained, especially when retired Regular officers undoubtedly constitute
a small fraction of the overall group with which we are concerned.
I would like to now direct your attention to the provisions of the
legislation which would drastically alter the Veterans' Preference Act
of 1944. I am sure you are all aware that the American Legion is
unalterably opposed to any weakening of veterans' preference benefits.
However, in connection with retired career officers, the American
Legion voluntarily offered a compromise solution to the proposal con-
tained in the legislation as originally introduced in the House and
presently contained in S. 1912; i.e., the proposal to limit veterans' pref-
erence to those whose retirement is based on less than 6 years' service.
The American Legion's proposal was to retain veterans' preference
status for all eligible retired personnel, but in cases of reductions-in-
force to limit the number of years counted for retention points to the
number of years spent in wartime service or other periods for which
eligibility is granted. This compromise would permit retention of
the traditional policy of granting veterans' preference to wartime
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50 DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS
veterans yet not endangering unduly the relative positions of career
civil service employees.
The reported version of the House bill, in our opinion, complicates
the entire problem further. It proposes to grant veterans' preference
to all retired members with less than 20 years' active service and permit
them to count all years of service for reduction-in-force purposes.
However, those retired members with more than 20 years' active serv-
ice would be permitted to count onl ? wartime service, and, in addition,
would -be placed in the nonveteran classification.
Explaining furthher, a retired person with 10 years' service would
retain his veterans' status and be permitted to count his total length
of service, while a. person with 20 years' service or more would arbi-
trarily be declared a nonveteran and then, in the nonveteran group,
be permitted to count only his wartime service. This arbitrary for-
inula serves no purpose but to add further discrimination and compli-
cation.
Officers can retire with a combination of active and inactive duty.
Undoubtedly, inequities would arise under the proposed formula since
it is geared to active service only. For example, a retired officer with
19 years' active service combinedl with additional inactive duty would
benefit tremendously as opposed to a retired officer with 20 or more
years' active service.
There is no valid reason to arbitrarily deprive a man of his veterans'
preference status simply because he remained in the service for a cer-
tain length of time.
I urge you to dive sincere consideration to the A~aiericln Let ion's
proposal to permit the retention of veterans' preference status y all
retirersonnel who are, eligible, but limit the number of years which
may bd pee counted for reduction-in-force purposes to those served during
a period of war.
That concludes my prepared statement.
Under the proposed certification of the House, a man who happened
to have just over 20 years' active service would only be granted his
wartime service for reduction-in-force service, but in a nonactive
status. Whereas a man with less than 20 years would count all of the
years' service regardless of whether wartime or peacetime and we feel
this further complicates the situation and it unduly discriminates
against the war veteran who happens to spend a, little over 20 years'
active service and the one who spends a little under 20 years' active
service because it is geared to active duty service and officers can retire
with a combination of both.
Senator YARISCOROUGII. Thank You, Mr. Mears, for your statement.
Any questions, Senator Boggs?
Senator Boocs.',To questions.
Senator YARBonouaiI, I am going to ask the staff to make a study
of this discrimination in the House bill. It is very well set out in
Mr. Afears'stateemnt that distinction is made in the house bill between
an officer or person who is retired with20 years' service and one with
less than 20 years' service.
Thank you.
I1ir. Griner, president of the American Federation of Government
Employees, will be called next.
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DUAL-COMPENSATION AND DUAL-EMPLO
STATEMENT OF JOHN F. GRINER, PRESIDENT, AMERICAN
FEDERATION OF GOVERNMENT EMPLOYEES
Mr. GEINER. Mr. Chairman, members of the committee, I do have
a prepared statement that I will submit for the record. I would like
to comment on a few items in particular with respect to this statement.
To begin with we believe that the inequity that exists and still
would exist should H.R. 738 be passed as it is now written, between
retired Regular military ,and the Reserve, should be eliminated. We
think they should be all treated alike.
Then again we are highly in favor of having the Gilpatric memo-
randum written into law and have it administered outside of the
Department of Defense.
I would like to read into the record two letters.which are not con-
tained in my statement that I believe will explain the reasons why we
would like to have this Gilpatric memorandum made into law.
One of these letters was dated February 14, 1963, and was ad-
dressed to Maj. Fred W. Carnish, U.S. Air Force, 21550 Evelyn Ave-
nue, Torrence, Calif.:
FEBRUARY 14, 1963.
Maj. FRED W. KARNISCII,
U.S. Air Force,
Torrance, Calif.
. DEAR FRED : Thank you for your letter telling me the date of your retirement.
I certainly would like to have you here. The current situation is about as
follows :
As a result of our reorganization and readjustment of personnel, we lost
about 31 spaces including 12 high-grade spaces in the directorate. I have just
declared eight people excess to our requirements, however, there are four va-
cancies in the 0-8 to 0-9 level in the propellants division and you would be
most valuable as a supply requirements officer. Please let me know if you
would be interested in this position.
I expect that our propellants division will continue to grow and assume
greater importance and there should be opportunities for future advancement
in the not too distant future. As a matter of fact, our new propellants account-
ing and supply procedures have just been approved by Headquarters, U.S.
Air Force, and Headquarters, Air Force Logistics Command, and this will
require 14 additional people to implement. Air Force Logistics Command has
made a commitment that they will provide additional manpower spaces in
the number of eight for the comptroller and six for the propellants division.
Exactly what grade is yet to be determined.
On the negative side, a manpower hiring freeze has just been imposed in
anticipation of manpower reduction for this fiscal year. I am not too concerned
about this since there are certain exceptions being made to this policy. I am
forwarding ours in the next day or so with the anticipation that they will
grant us this exception in the propellants field.
Incidently, some inhiring action is now being done at the Naval Supply
Depot, Mechanicsburg, Pa. The positions being filled are for the Defense
Supply Agency. Would you desire that I forward a copy of your SF-57 to
that agency so that you can be considered for any vacancies that may exist?
I will keep you informed of any further developments and please keep me
posted as to how you stand.
Sincerely,
CARIMTON G. SNEAD,
Colonel, U.S. Air Force, Director of Air Force Aerospace Fuels.
Gentlemen, this is typical of what is known as the buddy system.
This letter came to my office, we do not know how we got it, or where
it came from. But it was an audistat copy of the original and so
there is no question about the authenticity of it.
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fl_ AND DUAL-EMPLOYMENT LAWS
It just so happened that we were able to prove this case, but there
are thousands of cases that we cannot prove.
We have found in the past, and I have a telegram here from Fort
Campbell, Ky., dated .tune 9, 190, that demonstrates what goes on
within the military. It says:
(Telegram dated June 9, 1[383, from Fort Campbell, Sy.]
February 18, 1901, SF-52 went forward from personnel requesting establish-
n,ent of position GS-11 currently held by military. Position advertised July
T. 1901. Three qualified applicants applied, none selected. Job frozen until
October 30, 1901, pending retirement of Maj. Donald O. Ridgeway who currently
held position as military and was accepted as civilian without time limitation
usually imposed.
Approximately January 7, 1962, position of disbursement officer, GS--9 adver-
tised. No civilian appliants accepted. Joh frozen S weeks pending retirement
of CWC John McKinstery who currently held job as military. November 1,
1902, superintendent for laundry, GS-10 advertised. Four applicants with 12
years qualifying experience not accepted. Position tilled by retiring Maj. John
Wood, who currently held position as military supervisor.
February 28. 1903, Nina Gray Talavarn, GS_, James A. Johnson, W-4, and
Walter A. Cob, W--1, received notice that their position was being abolished and
that professional people might be hired. On April T, 1903, position abolished
was filled by active duty military personnel; rank, private first class and
private. Pertinent facts concerning these happenings are available to be pre-
sented before a subcommittee at any time.
In the first case in this telegram it. is a little unusual in that a mil-
itary- position was converted to a civilian position. But it shows you
the manipulation that goeson in these cases.
f am not blaming the headquarters of the Army, the Air Force, or
the Navy, because all they see is what is presented to them from the
lower levels. Oftentimes these positions become vacant, they go
through the motions of the Gilpatric memorandum, they suave ap-
proval of a military who has just retired before the civilian knows
that the, position is going to be vacant.
We believe that if the Gilpatric inemorandami was made into law,
and the administration of that particular ,iece of legislation was
placed in the hands of an agent outside of the Defense Department,
where we could question some of the appointments, that we would
get better results than we are getting at the present tithe.
f would like to call Your attention to another item in my state-
ment. As you know, the limitation is placed on ITT. 7.'381 that if a
retired militarl, personnel elects to accept a civilian position he may-
retain $2,000 of his pension and one-half of the balance of it. In
our opinion the limitation on the amount of retired pay would mean
little in the case of a retired officer. It. is our understanding that a
ref iced officer, with 20 years of service, receives an annuity averaging
about $375 a month, it 'his rank is that of mayor or above. It has also
been our experience that officers are not seeking civil service positions
below the grade 11 and 12, It is only reasonable to assume that, it
retired officer who desired to enter the Federal civil service would
not let a small reduction of his retired lay' stand in his way, if he was
to add it to his full salan- of his civil service position. Now, your enlisted maxi`s average retired pay is about $17.5 a month,
and, of course, the limitation would not atte4 him. We point this
out for the mere fact that insofar as we are concerned, and so far as
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our principal problem is concerned, the limitation on pay would
not allieviate that problem.
Of course, I do not have to tell you, again that our principal problem
is the retired military taking over a civilian position, usually in the
higher grades where the civilians who have made a career of such
service and have sat around for years waiting for those higher grades
to come open, then when they do come open have a military move in
and take it over and therefore preclude them the rights of promotion
which they should normally expect.
I think, Mr. Chairman, with that illustration from this statement,
together with that letter and that telegram for the record, and I want
to express the appreciation of this organization for the opportunity
of presenting our ideas to this committee.
Senator YARBOROUGI3. Thank you, Mr. Griner.
Senator Boggs?
Senator BocGs. I want to thank Mr. Griner, too, Mr. Chairman.
I just want to ask one question. Is it your intention to imply that
connivance goes on only by military personnel, sir?
Mr. GmNER. No, sir.
Senator BOGGS. Thank you.
Mr. GRINER. Maybe we had a misunderstanding of the purpose of
section 205, and after Mr. Macy's explanation here this morning, I
rather think we did have a misunderstanding of it. But we under-
stood that section 205 would extend the provisions of the Gilpatric
memorandum beyond the Defense Department to all agencies of the
Government. We are not against nor do we oppose retired military
from taking civilian positions if they are in true competition with
the civilian. We would like for the record to show that.
We would also like for the record to show that under no conditions
would we favor taking away from any employee who is now working
for the Federal Government any rights that he may have had at the
time that he began such service. And, of course, H.P. 7381 makes a
provision that they would retain such rights.
Senator BOGGS. Thank you.
Senator YARBOROUGII. Any further questions?
Mr. GuLLEDGE. No questions.
Senator YARBOROUGII. Thank you. The entire statement will
be printed in the record.
(The statement is as follows:)
PREPARED STATEMENT OF JOAN F. GRINER, PRESIDENT OF THE AMERICAN
FEDERATION OF GOVERNMENT EMPLOYEES
It is the belief of the American Federation of Government Employees that
there is a positive need for certain basic changes in the existing laws governing
the employment of retired military persons in civilian positions in the Federal
civil service.
The need is for a single, simplified dual-compensation law which will codify
all existing dual-compensation and dual-employment laws into one law which
will permit greater ease in interpretation and administration. The result
should be a uniform policy throughout the Government service to protect career
civilian employees from the employment of persons who have undue advantage
because of their military service, and yet permitting, within well-defined limits,
the employment of retired military persons who possess skills or experience
useful to the Government.
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54 DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS
The current statutory situation is far from satisfactory. The existence of 44
different legislative enactments dealing with dual compensation and dual employ-
ment Is not conducive to equitable treatment of civilian or military personnel,
nor has it resulted in an orderly or controlled procedure relating to the employ-
ment of military retirees. This bill still does not correct the discrimination
between the Regular and Reserve officers. Both should be covered by this bill.
Various changes have been proposed, and these have largely been formulated
Into II.R. 7381 presently before the House of Representatives. When this bill
was the subject of hearings by a House committee, the AFGE Indicated the need
for certain safeguards. One such proposal by the AFGE was designed to put an
end to the so-called buddy system whereby a civilian position may be held open
pending the retirement of a military person so as to select that individual for
preferential appointment to the vacancy.
The AFGE proposed a new subsection Incorporating the sense of the memoran-
dum issued by Roswell L. Gllpatric, Deputy Secretary of Defense, to the Secre-
taries of the Departments of the irony, Navy, and Air Force, on July 5, 1901. The
restrictive measures embodied in the Gilpatrie memorandum have been included
In II.R. 7381 as reported to the IIouse. They are contained in section 204 which
specifically stipulates that a retired member of any of the Armed Forces may be
appointed to a civilian position in or under the Department of Defense within
6 months following his retirement only if (1) the proposed appointment is-author-
ized by the Secretary and, if in the competitive civil service, approved by the
Civil Service Commission: (2) the position is in a shortage category; or (3) a
state of national emergency exists.
The request for such an appointment must also be accompanied by a state-
ment which indicates that actions have been taken to assure full consideration of
eligible career employees, to publicize the vacancy to give interested candidates
an opportunity to apply, to write qualification requirements so as not to give
advantage to the retiree, and to show that the position was not held open pending
the retirement of a particular military person.
The AFGE also proposed the extension of similar safeguards to the entire
Federal civil service and the requirement that prior approval of the Civil Service
Commission he needed. Such extension of the policy restricting appointment
to a civilian position In the Defense Department to other agencies is embodied
in section 205 of this bill.
It was also our belief that exemptions to the limitation of the amount of the
retired pay which may be retained by a retiree while holding a civilian position
should be reported to Congress. This proposal was broadened to require in
section 200 of II.R. 7381 the transmittal to Congress by the President of a
report outlining operations under title II, which deals with employment of
retired military persons in Federal civilian positions. The report is due on or
before January 1, 1966. We still believe exemptions should be reported to
Congress annually.
The reduction of retired pay was applied to enlisted as well as to all commis-
sioned personnel, as the bill was first written. As reported to the House, the
limitation was not applied to enlisted personnel or to Reserve officers. If there
is to be such a restriction, the sane provision should be applied to Reserve com-
missioned officers. They now have the advantage in that no restriction is ap-
plied now on the amount of retired pay they may receive in addition to the salary
of the civilian position nor is there such a restriction presently in the bill under
consideration.
The bill II.R. 7381 would repeal section 212 of the act of June 30, 1932, as
amended, which limits to $10,000 the amount of retired pay which a commis-
sioned Regular officer may receive when combined with Government civilian
salary. In its place is the formula reducing retired pay to $2.000 plus one-half
the remainder, if any.
It Is my opinion that the limitation on the amount of retired pay would mean
little In the case of a retired officer. It is our understanding that a retired offi-
cer, after 20 years of service, receives an annuity averaging about $375 a month,
if his rank is that of major or above. It has also been our experience that offi-
cers are not seeking civil service positions below grade 11 or 12. It Is only rea-
sonable to assume that a retired officer who desired to enter the Federal civil
service would not let a small reduction of his retired pay stand in his way. If he
was to add to it the full salary of his civil service position.
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Di7AL-COMPENSATION AND DUAL-EMPLOYMENT L
Exemptions would be predicated largely on disability in combat, employment
during a 30-day period, or need of the individual on the basis of special or emerg-
ency circumstances.
The act of July 31, 1894, commonly known as the dual-employment or dual-
office-holding statute, bars commissioned or warrant officers of the Regular uni-
formed services from civilian employment if their retired pay or the civilian
salary to be received is $2,500 or more per annum. Enlisted personnel and re-
tired Reserve officers are exempt from this restriction. H.R. 7381 would exempt
retired Regular officers, the only group now subject to the act of 1894.
The bill would modify veteran preferency so as to lessen the advantage of the
military retiree over the civilian employee whose military credit would be of
shorter duration. This provision satisfies what we believe should be the para-
mount objective of this legislation, and that is to lessen the unfair advantage of
the nondisabled retiree over civilian employees. Much of this advantage appears
to be removed by section 202 of the bill which provides full veteran preference if
retirement was based on disability in armed conflict, service was less than 20
years of full-time active service, or the individual was already in the civilian
service on the effective date of this provision. Similar requirements are included
for counting military service for civilian leave purposes.
It is gratifying to note that the bill would not deprive retirees already in civil-
ian jobs of credit for their military service, either for reduction-in-force or leave
purposes. We are emphatically opposed to depriving any employee, whether he
is a civilian or a military retiree, of any benefit he presently enjoys.
The scope of the dual-compensation, dual-employment legislation, as it relates
to retired military personnel, is manifested in the number of military retirees
who could be involved.
Of the 385,000 on the retired roll, according to the 'Department of Defense,
about 15 percent are 65 years of age or older. They are not considered as seeking
employment. It is estimated that 70 percent of the remaining 85 percent who are
employable are actively employed, for the most part in full-time positions. Of
the remaining 30 percent, or roughly 100,000, it is believed that fewer than 50,000
could be considered prospectively employable if there were significant relaxation
of the dual-compensation, dual-employment laws.
Currently, the rate of retirement is from 50,000 to 55,000 a year. Of this num-
ber, about 5,000 are Regular officers retiring for reasons other than disability.
The remainder consist of enlisted and Reserve officer personnel, who would not
be covered by this legislation.
The number of retired military persons hired in 1 year is between 1,500 and
2,000. On December 31 last, the total number of retirees in the Departments
of the Army, Navy, and Air Force was 24,278. This number comprised 4,532
commissioned officers, 1,884 warrant officers, and 17,862 enlisted personnel. The
24,278 military persons employed were 2.2 percent of all the military on the
retired roll.
About one-third. of the military employed were in classification act positions,
distributed as follows : Grades GS-1 to 4, 2,454; GS-5 through GS-10, 4,802;
and GS-11 and above, 2,248.
The American Federation of Government Employees is concerned with the
outcome of this legislation for the welfare of its members and the protection of
the civil service system. It is our opinion that the current laws are an obstacle
in the way of satisfactory operation of the promotion policy of any agency in
which military retirees may be employed under existing conditions.
It would be somewhat untenable for an employee organization supporting
freedom of access to the Federal civil service to seek the exclusion of all retired
military personnel. What we seek is to eliminate the unfair advantage which the
nondisabled military retiree now has over civilian employees.
R.R. 7381 as reported to the House removes much of the existing inequities
from present law. Where exemptions are provided, little unfairness will result
if they are granted with care. Much will depend on the administration of this
bill if enacted in its present form.
I wish to express my thanks, Mr. Chairman, and members of this committee,
for this opportunity to present the views of the AFGE on the changes which
should be made in the dual-compensation, dual.-employment statutes.
Senator YAxnoRonGU. The next witness is Mr. Francis W. Stover,
director of legislative service, Veterans of Foreign Wars.
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STATEMENT OF FRANCIS W. STOVER, DIRECTOR, NATIONAL LEGIS-
LATIVE SERVICE, VETERANS OF FOREIGN WARS OF THE UNITED
STATES
NIr. STovvi;tt. Nlr. Chairman, members of the subcommittee, my Hanle
is Francis W. Stover, national legislative director of the Veterans of
Foreign Wars.
Tlituik You vet much for t his oJ>portutiity to present the views of
the VFW with respect to this legislation dealing with the emliloy-
mont of retired nwink-rs of the Ariiletl Forces in the Federal civil
service.
`I'he national position of the Veterans of Foreign Wars concern-
ing veterans' preference provisions of the two bills before you was
thoroughly considered by the delegates to our last national convent ion
which was held in Seattle, Wash., August 25--30, 1963. It is in VF 1'
Resolution No. 240 entitled ":Maintain Veterans" Preference in Dual
Compensation Law," and reads as follows :
Whereas retired military personnel are limited to jobs in the Federal service
under the dual compensation laws; and
Whereas there are approximately 40 separate and distinct laws controlling
dual compensation; and,
Whereas numerous comptroller General's decisions are Issued each year on
positions held by retirees; and
Whereas many veterans under the dual compensation laws must reimburse
the Government for salary received during their period of employment; and
Whereas our Federal Government is short of applicants with special skills
in which many retired personnel qualify; and
Whereas these retired personnel are trained under Government expense ;
and
Whereas the Sidi Congress has before It legislation to codify dual compensa-
tion and dual position laws: and
Whereas the bill as introduced excludes military retires without disability
from veterans' preference and other civil service benefits in Federal civil serv-
ice employment; and
Whereas full civil service benefits might jeopardize present Federal civil serv-
ice employees of which over 50 prrsent are veterans ; and
Whereas a majority of these retirees have served during a period of war or
hostilities in which a campaign badge or medal is authorized; and
Whereas denial to any group of the Veterans' Preference Act is a step to
either weaken or eliminate the Veterans' Preference Act : and
Whereas the VFW has strongly opposed any weakening or elimination of
the Veterans' Preference Act: Now, therefore be it
Resolved by the t;.fth National Convention of the Fctcrens of Foreign Wars
of the United States, That legislation to revise the dual compensation laws
shall include veterans' prefer(-nee for all military retirees for time spent on
active duty during periods of war, campaigns, or expeditions for which a cam-
paign badge or medal Is authorized.
'l'lie final committee draft of 1I,1"t. 7-',81, as reported to the House of
lielirtsentatives and now pending before that, body, incorporates the
recommendation of this resolution; namely, that veterans' preference
for all military retirees for time spent on active duty during periods
of war, campaigns, or expeditions shotllt1 be counted for veterans'
preference purposes for any military retiree employed in flit' Federal
civil sec ice. he VFf4' is supporting this provision in 1I.11. 1381
and is urging its passage by [.he Mouse before this session of the 88th
Congress adjourns.
Respecting S. 1912, it is therefore strongly recommended that should
your subcommittee and the full committee choose to report this bill
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that it be amended along the lines of H.P. 7381 concerning the sec-
tions pertaining to veterans' preference for any military retiree who
should enter into the Federal civil service.
One of the most cherished rights of veterans is the preference
granted by the Veterans Preference Act of 1944, as amended. Who
is eligible for veterans' preference? It includes all honorably sepa-
rated ex-service men and women who have served on active duty in
any branch of the Armed Forces of the United States in wartime, or
in peacetime campaigns or expeditions for which a campaign badge
or service medal has been authorized. Veterans' preference is also
extended to persons who have served in either wartime or peacetime
and have a service-connected disability or are receiving compensation,
disability retirement benefits, or pension under the laws administered
by the Veterans' Administration or the Defense Department. Addi-
tionally, certain wives, widows, and mothers are also included.
The Veterans' Preference Act has 20 sections, with the most im-
portant being section 12. This is the section which involves retention
of personnel when a reduction in force in the Government becomes a
necessity. Under this section, four factors are used in determining
the order of separating competing employees.
These are tenure of employment, veterans' preference, length of
service, and efficiency ratings. In computing length of service, by
the way, the time spent in active military service is credited as part
of the total Federal service. Preference employees are retained un-
der the provisions of section 12, in preference to all other competing
employees with the same or lesser efficiency rating.
Please note then that section 12 first of all places a veterans' prefer-
ence employee in a higher category than nonpreference employees,
providing a superior status with a competing employee in a reduction
in force action. Secondly, section 12 also bestows upon a veterans'
preference employee the right to count the time spent in active mili-
tary service in computing the length of service. For this purpose, this
advantage provides more points in determining the order in which
a reduction in force will be effected. For veterans with long service,
this provision looms as extremely important.
The first law granting preference in reduction in force in the Fed-
eral service was in 1876. Down through the years there have been
innumerable instances, both legislative and executive, where vet-
rans' preference has been provided to veterans and military retirees
who have served our Nation during war periods. The Veterans Pre-
ference Act of 1944 finally consolidated and brought together all of
the laws and Executive orders into one law. Generally, it did not
grant more veterans' preference, but the Congress simply ratified all
of the administrative orders and executive pronouncements which un-
til this was done did not have the full force and effect of law. This
veterans' program has been'' a .highly successful one. The cost of ad-
ministering it has been negligible.
The Veterans of Foreign Wars has no official position concerning
other sections of the bill, except we endorse the provisions of the bill
which would provide relief to. some retirees in the Federal civil serv-
ice from the effects of a recent Comptroller General's decision which
has held them to be in violation of the present dual employment,
dual compensation statutes. These cases, by the way, are a further
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reason why these laws should be made uniform and more under-
standable for all concerned.
There is another reason the VFW strongly objects to the elimination
of veterans' preference with respect. to military retirees who work for
the Federal Government in a civilian capacity. To do this would be
ignoring the fact that most of these retirees are -veterans of wartime
service who participated in the eat battles and engagements of
World War II and the Korean conflie.t, and some with additional cam-
paign or expeditionary service for which a medal was authorized.
'T'his type of service has been recognized for veterans' preference
purposes for almost 100 years---since the end of the Civil War. It
is a part of our body of laws and social fabric and the VFW strongly
recommends that it be continued in this dual compensation act which
you are now considering.
The VFW, however, is also cognizant of the fact that the Congress
in 1944 probably did not have in mind the situation with which we
are confronted today. Few would have predicted a cold war, which
is beginning to appear to be ermanent, Even fewer would have pre-
dicted the Korean conflict. The underlying purpose of veterans' pre-
ference is to provide the former servicemen some kind of assistance
in being readjusted to civilian life.
Additionally, it gives him assurance that the sacrifice he has made
will not be forgotten if and when a reduction in force should be nec-
essary. It is a kind of badge of honor.
In conclusion, the VFW recommends S. 1912 be amended to cor-
respond to the version of II.R. 7381 reported to the House as follows :
Add to section 12 of the Veterans' Preference Act for reduction-
in-force purposes to permit an employee who is receiving military
retired pay to (1) credit all of his military service if he is retired for
disability incurred in armed conflict or caused by an instrumentality
of war during a period of war; (2) count or credit only military
service performed during any war or in any campaign or expedition
for which a campaign badge had been authorized; and (3) count all
service if the, employee does not have 20 or more years of active
military services.
The VFW shares the concern of many that FI.R. 7381 does not
provide full veterans' preference for military retirees with 20 or
more Years active military service. Our position was not lightly
arrived at, and reflects deep concern on the part of the delegates
to our last national convention when they recommended that time
spent on active duty during wartime should be counted only for
reduced-in-force purposes for retired career personnel who should
become Federal civil service employees. We realize this is a depar-
ture from our previous "all or nothing" concept there should be no
laws enacted to diminish veterans' preference rights as they now exist.
II.R. 7381 does not grant full reduction-in-force rights for military
retirees with 20 years or more active duty service. The VFW does
not like this provision. We would rather have fall rights for these
veterans. 11"orld War II has been over almost 20 years and I am
sure our resolution includes the concern of many of our members
who are Federal civil employees who have inquired if their veteran
status would be impaired should the dual compensation statutes be
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DUAL-COMPENSATION AND DUAL-EMPLOYMEN
repealed. H.R. 7381 has incorporated our views and I just want
the record to show some of our reasons for arriving at what I like
to call "a statesmanlike position."
This, then in the opinion of the VFW is a compromise, of course,
and we are not completely happy with it. We realize one has to
make some kind of a compromise along the way. We cannot count
all of the military service, for these veterans. The veteran prefer-
ence provisions in H.R. 7381 were recommended by the VFW and
it is strongly urged they be retained in that bill, or if you report
S. 1912, that they be incorporated in that bill.
That, Mr. Chairman, is the VFW's recommendation, and I just
heard the bell ring, and so I'll wind up my remarks by saying thank
you very much for this opportunity to be here this morning.
Senator YAxsonouGTI. Thank you, Mr. Stover. That is a very
cogent statement about your position and also some very beneficial
and statistical information that will be of help to us and the staff
in considering this legislation or the effect of the legislation.
Senator Boggs, any questions?
Senator BoGGS. No questions.
Senator YARBORGUGH. Thank you.
Gentlemen, the time has come at which the hearing was to have
been recessed. There are a number of witnesses still to be heard.
I will hear one more and then recess.
The next witness is Mr. R. A. Means, chairman and national secre-
tary of the permanent legislative service committee of the Fleet Re-
serve Association.
STATEMENT OF ROBERT A. MEANS, NATIONAL SECRETARY, FLEET
RESERVE ASSOCIATION
Mr. MEANS. I am Robert A. Means; national secretary of the Fleet
Reserve Association. The Fleet Reserve Association is made up of
more than 53,000 career enlisted personnel of the Navy and Marine
Corps, including active and retired men plus those in a retainer status.
We, welcome the opportunity to appear before this committee. and ex-
press the views of the members of our association, the voice of career
enlisted personnel of the U.S. Navy and Marine Corps.
Since the House has not yet passed H.R. 7381, which was approved
by its Civil Service Committee we understand these hearings are on
S. 1912, the Senate version of t m bill originally submitted by the ad-
ministration. However, our comments today will be concerned with
H.R. 7381 in its present form, which we are sure this committee is
familiar with and will have to pass on eventually. We opposed
S..1912. We consider II.R. 7381 a great improvement over the pro-
posal of the administration and many of its provisions are acceptable
in their present form. We do feel, nevertheless, that, thebill requires
amending to avoid harmful and unjustified effect on the retired enlisted
main.. We certainly agree that the present statutes on dual compensa-
tion and dual employment, with hundreds of Comptroller General
decisions, are archaic and take the wisdom of Solomon to interpret.
It is imperative that the Congress repeal the present statutes and enact
legislation more in keeping with modern times.
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Iii the house committee report. on the, bill (Rept. 890) it is pointed
out, among other purposes, that this legislation is:
To provide reasonably uniform and fair treatment for retired military per-
sonnel with respect to their employment in Federal civilian positions and to pro-
vide appropriate safeguards so that Federal civilian employment of retired mili-
tary personnel will not grant such personnel unfair advantage over civilian em-
ployees or unduly hamper career opportunities for civilian employees.
This is a commendable goal. But it will be violated in spirit if
discriminatory- provisions are adopted which place the career enlisted
man at a disc vantage in obtaining a position with civil service Simply
because he has already served his country. Let us not enact legisla-
tion which wil penalize a career enlisted man by virtue of the fact
that lie chose the honorable profession of the military and has earned
a meager retirement. Gentlemen, the career enlisted men retiring to-
day are highly trained and fully qualified personnel that the U.S.
Government must retain in positions where their services can be uti-
lized. America in many instances has spent-many thousands of dollars
training these career enlisted personnel and their service in Govern-
ment is to the best interest. of the public: it's a. return on the people's
investment..
The Fleet Reserve Association has always taken the position that
retired pay is earned pay. Thus, it is difficult for us to understand
why anyone should have to surrender at portion of that earned pay in
order to obtain other type of employment with the Government.
Section 201 (a) of the bill would set. a. limit of $2,000 plus 50 percent
of the remainder of the retired pay of Regular officers taking civil
service jobs. While this is an improvement under the present hope-
lessly outdated law, it will still fall short. of one of the chief purposes
of the bill as stated in House Report. 800: that of "obtaining the best
qualified people available for Bard-to-fill civilian positions." The
`bast qualified" officers are likely to command the best salaries outside
Government and Government is not, going to compete successfully for
their services if it begins by limiting their pay. It is apparent that
one of the adverse effects of dual compensation laws has been to stifle
initiative and any incentive to advance. The military retiree, accept-
ing a position which places him at the maximum limitation has little
reason to strive for advancement when the additional compensation is
denied him.
If the committee feels some-such dollar limitation is vital, we would
at least hope the dollar amount would be raised to a more realistic
figure. The $2,000 figure, the source of which has never been ade-
quately explained by the executive department, was set before the re-
cent military pay- bill. Some. increase in line with that bill and some
provision for upward adjustments whenever there are future military
pay raises --would seem to be more realistic than the present wording
of the bill.
We would remind the subcommittee that the principal reason for
the bill was to allow the employment of retired officers whose service
could be valuable to the Government- and to clarify confusing laws.
We would remind the subcommittee also that, the principal resistance
to the bill, and similar bills like it over the years, has come from civil
service employee groups which feared officers getting unfair advantage
in taking over professional or administrator jobs in civil service. The
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objections raised were not because of enlisted men and there has been
no great complaint because of enlisted men working for civil service.
The number so working is comparatively small in relation to total
civil service strength. Their performance has been excellent. Many
are civil service union members themselves.
With that in mind, I would now like to discuss four sections of the
bill which gratuitiously place restrictions on enlisted men in serving
more, or entering civil service.
Section 202 would limit veterans preference in reduction-in-force
purposes in the future to wartime or campaign service. While our
members would naturally prefer to maintain the status quo, we accept
this change as a realistic restriction. We would hope, however, that
the subcommittee will study the matter closely to avoid new inequities
and assure itself the section is workable before passed. The cold war
might entail situations that throw the demilitarized zone in Korea,
where today they are getting shot at, into a category of no veterans
preference due to no specific campaign bar being authorized. On the
other hand men who serve in this country for a year during war receive
preference for that service.
Section 203 limits sick and annual leave credit, and
Senator YAneOROUGII. That bell indicates a vote on the Senate floor
that will force us to recess.
Gentlemen, the hearing will recess until 2 o'clock. We have other
commitments, and I am hopeful that either Senator Boggs or I would
be here, and you may complete your statement at that time, Mr. Means.
The hearing is recessed until 2 o'clock this afternoon. All of the
witnesses who were not heard this morning are requested to come back
this afternoon.
(Whereupon, at 12 noon, the subcommittee recessed until 2 p?.m., the
same day.)
(The committee reconvened at 2 p.m., Senator Ralph W. Yar-
borough presiding.)
Senator YAlmonouGIr. The subcommittee will come to order, and
Mr. Means, you may continue with your statement.
Mr. MEANS. Thank you kindly, sir.
I will start right in where I left off, Mr. Chairman.
Section 203 limits sick and annual leave credit and, while a loss of
presently enjoyed benefits to the career enlisted man, is considered a
reasonable provision.
The next two sections are by no means reasonable, or justified.
Section 204 is most restrictive and will do much to eliminate the
possibility of a career enlisted man gaining employment in civil serv-
ice. On one hand the contention is set forth that present laws are a
waste of manpower badly needed in the Federal service and that care-
fully selected, highly trained, broadly experienced, loyal, and dedi-
cated American citizens are not aavilable as a source of skilled man-
power. And then, to open up this manpower source so that the career
Regular officer might become available, we are going to close the door
on another source of highly trained manpower=the retired career en-
listed man.
To place a 6-month limitation on employment would virtually force
the enlisted man to seek employment elsewhere. An enlisted man
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cannot live--for even G months-on his retired pay. The average
enlisted retired pay is $1 i 5 a month. The retiring man is usually at a
point of heavy family ex penses, with older children in high school or
college. At his advancedage he wants to find a job and keep it. He
doesn't want to move into a temporary position until his waiting period
is up.
This section would penalize him senselessly, though it was designed
to prevent abuses by officers, not enlisted men.
We frequently hear scare stories about the so-called buddy system,
about one serviceman setting aside a civilian job for another. We
suggest this subcommittee investigate and see if you can find specific
examples of that. We think you'll have great difficulty. Remember
that a retired enlisted man, like any other civil servant, must meet
the qualifications for his job just like any other employee. If some-
body is allowed to put an unqualified military man in a civil service
job it means a civilian personnel director is not doing his job. The
Gilpatric memorandum adequately curtailed possible muses here. If
the subcommittee wishes to put the Gilpatric memorandum into law,
limiting employment, at last duty station for G months following re-
tirenlent we would not stringently object.. The extension of this,
through the Defense Department, is unfair and unnecessary. The sec-
tion, incidentally, is carelessly drafted. Notice that it applies to the
Army, Navy., and Air Force but not to the Coast Guard. For some
reason, Navv Wien are assumed to have buddies throughout the Army
and Air Force but Coast Guard men aren't. I 'e urge this section be
eliminated from the bill.
If it is considered necessary to prevent abuses at the top adminis-
trative levels, we ask that enlisted men be exempt f roni it.
Section 205 appears to us to be undesirable from the standpoint of
the civil service personnel administrator as much as from the in-
dividual. It is unworkable and confusing and a pears to be a hastily
drafted attempt to throw new barriers in the pat i of military retirees
seeking civil service employment. It is not clear how extensive the
public notice has to be or why a 30-day wait is involved. It would un-
doubtedly cause serious delays in filling important jobs. Suppose,
for example-, an exam is announced, application taken, and in the
meantime a fully qualified civilian with civil service status shows u)
and wants the job? Does he needlessly go through new exams? Its
the exam called off, with a. lot of wasted effort on the part. of the
Govermnent and unfair treatment to the military retirees and civilians
alike who I ha ve applied ?
The section is completely unnecessary since retired men applying
for civil service jobs have to meet the same qualifications as other
applicants anyway. They must be fully qualified to do the job. If
a Wetter qualified civilian applies we would expect hiiii to be hired.
If the military man is better qualified it is to the advantage of all
taxpayers to hire him.
We strongly urge this provision be eliminated. It makes the bill
unacceptable. The way to revise archaic and confusing laws is not
with new chaos.
The FIR is encouraged to seek a saving clause that exempts pres-
ently employed retirees from the provisions of the bill. From the
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS
detrimental effects of recent military personnel actions, we are aware
of the harm to morale that comes from changing horses in midstream.
In summary : The Fleet Reserve Association believes that new legis-
lation is a must. We do not believe to forbid the career enlisted man
employment with. civil service for 180 days after his retirement is in
the best interest of the public-but to the contrary is quite detrimental
to the. public interest.
I want to thank you for allowing me to present the views of the
career enlisted veterans. It has been a privilege for me to appear be-
fore this committee, especially so, as I know you will give our sug-
gestions careful consideration.
This morning one of the gentlemen who testified made a statement
that only 14 percent of the career enlisted men would be involved if a
monetary ceiling was placed upon them. We would like to point out
that this 14 percent would be those who are best qualified; in other
words, those in the E-7, E-8, and E-9 grades.
We also noted this morning in testimony that Mr. Griner pointed
out where officers could possibly influence new jobs, but we were happy
to note. lie did not point it out insofar as enlisted personnel.
Thank you, Mr. Chairman, and Senator Boggs.
Senator YARBOROTTOrr. Thank you, Mr. Means. The point you make
in discussing section 202, you point out that the men in the demili-
tarized zone in Korea getting shot at today, put in the category of
nonveterans preference, because there is no specific campaign bar,
and in that connection you point out that many men served in this
country during World War II who would receive preference for the
service and ask that that inequity be studied. I direct the staff to
assemble data on that before the subcommittee passes on it.
I have often pointed out the same matter in support of S. 5 now
pending on the floor of the Senate. Out of millions of men in service
during World War II, there were millions who never went overseas,
but in this cold war period there are many men exposed to dangers
of combat daily and others to great exposure in deserts or arctic wastes
where the men are stationed and available for surprise attacks.
Any questions?
Senator BOGGS. No questions.
Senator YAnBonouGIr. Does the staff have any questions?
Mr. GTILLEDGE. No questions.
Mr. MEANS. Gentlemen, I was requested to ask the chairman to
submit a statement by John E. Erickson, national legislative director
of the Veterans of World War I, into the record. I was asked to
deliver it to yon and I will submit it.
Senator YARBOROUGH. If there are no objections, the statement by
the representatives of the Veterans of World War I will be incor-
porated in the record and become a part of the record.
Mr. MRANS. During the recess, sir, I also received a call from Mr.
Rein of the Association of Regular Army Sergeants, and he requested
that I respectfully request of the chairman that his statement be made
a part of the record. He has already submitted that.
Senator YARBOxoUGH. Yes, the. statement by William M. Rein, na-
tional executive secretary of the Association of Regular Army Ser-
geants, will be printed in full in the record.
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64 DL-AL-C01iPENsATIO\ AND DUAL-EMPLOYMENT LAWS
(The statements follow:)
STATEMENT OF JOHN E. l:RIcKSON, NATIONAL LEGISLATIVE Dia cToa, VETERANS
OF WORLD WAR 1, U.S.A., lac.
The Veterans of World War I welcome the opportunity to submit a statement
to this distinguished committee.
Shim the Civil Service Committee of the House has approved of I1.R. T3S1
which is yet to be pissed by the House, we fuel that this bill is a considerable
iniprovcinent over R. 1912 lit its provisions regarding the matter of dual compen-
sation and dual employment. and we think that the pri'sent status with so many
Comptroller General positions are archaic and takes the wisdom of several
Philadelphia lawyers to interpret.
We do not believe that legislation should be enacted which will penalize a
career enlisted man because he chose an honorable profession In the service
of his country, and we are of the opinion that a career enlisted man upon re-
tiring from the service of his country has earned and Is fully entitled to the
retirement pay which he has earned over the years of service, and that upon
his retirement, he has become a civilian and should have the same treatment
as civilians have in regard to entering Government civil service.
We are unalterably opposed to the Government's setting a limitation on the
Income of the retired career serviceman since this violates both In fact and in
spirit, the promise of opportunities to young men of this country to enter the
career military service and it discriminates in fact and in principle against the
man who has served his country bonorablzy as against the ordinary civilian
who may have Income from many sources, and Yet is not questioned in regard
to this income when accepted for Government civil service employment.
We fail to understand nor has it ever been adequately explained how the execu-
tive department arrives at the $2,.000 figure under section 201 (a) of the bill
which would set a limit of $2,000 plus 50 percent of the remainder of the retired
officers taking civil service jobs. Certainly this thing serves to stifle initiative
and any incentive to advance in civil service on the part of those who have
served their country. Rather, it would serve as a deterrent of highly qualified
military retirees making themselves available for future Government service.
To place a 6-month limitation on employment of retired career enlisted men
will force them to seek employment elsewhere. It is certainly well known to
anyone that the enlisted retirement pay of $175 per month for retired enlisted
personnel makes It virtually imposslble for them to even exist on this amount,
particularly with family expenses. children in school, and possibly doctor and
medical services as well.
That the military retiree must meet the same qualifications and take the
same civil service examinations as anyone else certainly is a guarantee against
incompetent military retirees getting any preference over anyone elm.
The Veterans of World War I believe that new legislation should be enacted.
We do not believe to forbid career enlisted men employment from civil service
for 180 days after retirement is in the best interest of the public, and we think
it highly unfair and inadvisable as far as the military retiree is concerned. We
believe this dignified committee should certainly take into consideration the
fact that men who had served their country over a period of time in the honor-
able profession of defending this Nation are the highest type of loyal and
patriotic Americans and that no restrictive provisions of laws should be enacted
which would place them at a disadvantage in seeking Government employment
under civil service following retirement.
Therefore, we advise this committee that we are opposed to S. 1913 as being too
restrictive and too unfair and It singles out a certain type of citizen and places
them at unfair disadvantage against another type of citizen who has -very little,
If any service with the Armed Forces.
We appreciate the opportunity to present the views of the Veterans of World
War I of the U.S.A., Inc., and we are sure our suggestions will receive your
careful consideration.
STATEMENT OF WILLIAM M. REVS, MASTER SERGEANT, U.S. ARMY, RETIRED,
LEGISLATIVE REI'RESEITATIYE. AssucIATION OF REOVI.AR ARMY SERGEANTS
Mr. Chairman and members of the subcommittee. I am M. Sgt. William M. Rein,
U.S. Army, retired, national legislative representative of the Association of Reg-
ular Army Sergeants, an organization of career Army men, active and retired.
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS
Of the Association Of
The views I am expressing today are this opportunity viity to testify on H.R. 7381.egu-
lar Army Sergeants. We app
In testifying on the administration proposal on the dual-compensation and
dual-employment laws before the House Civil Service Committee, I said, "The
dual-employment and dual-compensation laws are conflicting and confusing, and
ARAS supports the supposition that they should be overhauled. We. submit,
however, that the way to clarify confusing laws is not to extend them to groups
who have never been subject to them in the past, groups for whom no justifica-
tion has been advanced that would warrant inclusion under the dual-compensa-
tion laws."
We think H.R. 7381 as passed by the House is a vast improvement over the
original administration proposal, which we opposed in total. The administration
bill would have brought enlisted men under the income, limitation of the dual-
compensation laws for the first time. and we were pleased that the House elimi-
nated that provision from the, bill. We still believe that dual-job and dual-pay
laws should be overhauled and the present bill has done much to recommend it.
We still feel that some perfecting work is required., however.
It should be kept in mind that retired enlisted men make up only a very small
percentage of the civil service corps. Their service has been outstanding and
there is no record of them abusing the privileges gained because of their earlier
service in a military capacity. While they do have veterans preference rights
they do not have any advantage over noncareer veterans in civil service though
they generally have many more years of service.
The new section 205 of the bill, added by the House Civil Service Committee
at the last minute is we believe, unworkable and unnecessary and appears to be
a punitive attempt to deny employment to military men. Military retirees have
to be qualified for their jobs the same as any other civil service employee and
it is clearly unnecessary to go through this procedure which would involve
unacceptable delays before filling any job.
We recommend section 205 be eliminated from the bill.
The bill limits veterans preference for reduction-in-force purposes in the
future 'to wartime service. While this takes away some advantages the retired
enlisted man has now, we feel it is reasonable to legislate that men should not
get veterans preference for peacetime service. We feel, however, that the
committee should clarify what veterans preference is available for peacetime
service for those who do not earn military retirement. Is it fair to deny pref-
erence to one employee and give it to another, merely because of the difference
in the length of their service?
The same question is equally pertinent in relation to the section of the bill
that would deny sick and annual leave credit for peacetime service. Is it going
to apply equally for all, or just to the man who served his country long enough
to earn retirement?
In our testimony before the. House, we said, in relation to giving retired
officers an unfair advantage in supervisory jobs, "Setting a minimum time period
during which a retired man could not work in the office or section where he last
served on active duty would, we feel., go a long way toward preventing possible
abuses in this area."
Unfortunately, in putting in a 6-month ban on being hired in the. bill, the
]Mouse made it all servieewide and made it applicable to enlisted men as well
as officers. We would remind the committee that the problem involved was
the problem of officers taking over top supervisory positions that they had control
over while still in uniform. There was no problem with enlisted men. The
percentage of enlisted men in civil service is so small one could not.reasonably
say they are denying civilians career opportunities and certainly. they are not
denying anyone promotion opportunities, since the enlisted men, generally, are
in the lower grades. This looks like another unnecessary, punitive attempt to
discourage enlisted men from seeking civil service employment. If the section
is applied to enlisted men, making it applicable to his last office or even last
base assignment is sufficient. Also, we don't see why this should apply to
members of, the Army, Navy, and Air Force but not to members of the Coast
Guard. As now drafted, the bill exempts a retired Coast Guardsman from the
6-month provision.
ARAS strongly believes the dual-employment .and dual-compensation laws
need overhauling and the bill, while not perfect, is an improvement over con-
fusing present laws. ARAS will be available to help the committee further in
any way that it can.
Thank you for this opportunity to present this statement.
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DUAL-COMPENSATION AND DUAL-EMPLOYNIENT LAWS
Senator 'Z:'nrammjoir. Col. John (`arlton, executive director, Re-
serve Officers Association of tlie I`nited States.
STATEMENT OF COL. JOHN T. CARLTON, EXECUTIVE DIRECTOR,
RESERVE OFFICERS ASSOCIATION OF THE UNITED STATES
Colonel CAru ro:,. Thank you, Mr. Chttirmari, I appreciate very much
the opportunit to come before this committee.
Let me emphasize, as you realize, Mr. Chairman, that the ROA is
the only association of officers of all the military services, all the uni-
formed services, both Regular, Reserve, Active, and retired. We are
the only association.
Now, rather than making a presentat ion invself. I would like to call
on ('oh. ~1 rt hug Brackett. Ile is [lie officer on our national headquarters
staff who has been assigned to follow this bill through dad= by day,
hour by hour, both in the house, and Senate hearings.
Colonel Brackett, I would like. to Hint out., has only a couple of
years ago croup eteat 2 years actve uliaty, most of i;fiieh was in per-
somael legislation and we Consider him one of the outstanding experts,
both active duta? and those retired, on this subject, and so if the corp-
niittee would indulge Colonel Brackett very briefly, lie will summarize
our statement.
Senortor Y_irirtoraor-aau, ('olonel Brackett, we will be glad toliear from
you and we know your past experience in this field will help us in this
summary. I know from the conmi unicat ions I receive from your. Croup
you gentlemen are really well informed on Reserve matters, on military
and Reserve pay and retired pay.
Thank you.
STATEMENT OF COL. ARTHUR A. BRACKETT, RESERVE OFFICERS
ASSOCIATION OF THE UNITED STATES
Colonel BitACcxi-n-r. Thank you, Mr. Chairman, I will summarize
very quickly. We know you are aware of the urgency of this bill be-
cause of the two relief provisions to save the several hundred retired
warrant officers and Reserve officers retired for disability by the ad-
verse Comptroller General's decision and we are grateful to you for
scheduling these hearings at this time.
We believe that II.lR. 7381, reported by the house Post Office and
Civil Service Committee is a good bill, a good bill that will satisfy the
greatest number of interestec;groups. We believe this except for one
particular section, that is o05, of that bill. We agree with the testi-
mony of the, Civil Service Commission witnesses that the inclusion of
this particular section in the bill will completely wipe out the good of
the rest of the bill. Therefore, we feel it is imperative that it be
removed from any bill that this committee might report.
We also are opposed to the inclusion of section 204, the so-called
Gilpatric amendment, for virtually the same reasons as the Civil
Service Commission, that it is not required and that current construe-
tions are working.
Our statement, which eve respectfully submit for the record, covers
these points in more detail.
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 67
May I summarize or conclude then by saying that we. respectfully
recommend your committee consider favorable action on H.R. 7381
as reported by the House Post Office and Civil Service Committee,
minus the provisions contained in sections 204 and 205. It is espe-
cially important that section 205 be eliminated as it would nullify the
effectiveness of an otherwise effective bill.
Thank you, Mr. Chairman.
Senator YARBOROUGII. Thank you. Colonel Carlton, your state-
ment will be printed in full in the record.
(The statement follows:)
D R, RESERVE OFFICERS'
STATEMENT OF COL. J offOCIA CAR ON, ExEcuTivE
UNITED STATES
Mr. chairman and members of the committee, we are grateful for the oppor-
tunity to present our views to you during these hearings on S. 1912 and allied
bills designed to simplify, modernize, and consolidate laws relating to dual
employment and dual compensation.
I am Col. John T. Carlton, executive director of this association.
Since it is not often our privilege to appear before you, I would like to take
a few brief lines to tell you about our organization.
The Reserve Officers' Association was established in 1922 under the auspices
and encouragement of Gen. John J. Pershing in order to keep alive in the com-
munities throughout our country the principle that our security depends on, a
strong Defense Establishment. We have continued to adhere to and advance
these principles since our inception, and in 1950 were chartered by the Congress
to support a military policy for the United States that will provide adequate na-
tional security and to promote the development and execution thereof.
Ours is the only association that represents officers of all services, both active
and retired. Our membership consists of virtually all the leaders of our Reserve
elements in all of the Armed Forces who are also, of course, civilian leaders
In their communities.
Before commenting on the bill under consideration by this committee, I would
like to emphasize that our mandate in connection with this problem is clear,
simple, and explicit. It is Resolution No. 7, adopted by our national council
on March 1, 1963.
I would like to quote the pertinent portions of this resolution which reads
as follows:
"Whereas the entire concept embodied in these laws is outmoded, outdated,
unfair both to retirees and to the Government which has continuing need of
the experienced and competent services of the retired, military personnel ; and
. "Whereas it is unjust and inequitable that retired military personnel should
be either precluded from Federal employment or required to forgo any portion
of their retired military pay by reason of such employment; and
"Whereas it is a fundamental principle embodied in official statements of the
Department of Defense, in congressional enactments, and in court decisions that
retired military pay is in fact deferred compensation for services previously
rendered : Now therefore be it
"Resolved, That the Reserve Officers association. of . the: United States recom-
mends the complete abolition of existing restrictions on the Federal employment
of retired military personnel as embodied in 'dual compensation' and 'dual em-
ployment' sta.tutes,"
. Our association has taken.this stand because of two simple principles. The
first is the obvious and great benefit to our Government to be able to hire the
best qualified individual without restriction to fill its vacant positions. The
second principle is that of equity. Since retired pay has long been held to. be
"earned pay," a retired military man should be entitled to this pay wherever
his pursuits may carry him after retirement. This pay is as much his as if he,
had earned it in business life. TO do otherwise would only penalize a man for
his military service.
Of course, we strongly support the provisions contained in sections 102 (f) and
(g) of S. 1912 (sees. 201 (g) and (h) of H.R. 7381, Union Calendar No. 368)
that will overcome the adverse decisions of the Comptroller General in relation
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68 DIIAL-COMPENSATIO: AND DUAL-EMPLOYMENT LAWS
to Reserve officers retired for physical disability and to temporary warrant
officers. These two provisions, alone, make this bill one of great urgency.
We testified to this effect and on other matters before the House Post office
and Civil Service Committee on II.R. 7381 which, as introduced in the House,
was identical to S. 1912.
While the purpose as stated in S. 1912 Is a worthy one, neither this bill nor
H.R. 7381, as introduced, would accomplish those purposes. It is evident that
the House committee came to the same conclusion, because after exhaustive
hearings and study that committee completely rewrote a major portion of the
bill.
We believe the House committee did a remarkable job in reconstructing the bill
to provide farsighted legislation that will stand the test of time. Considering
the vast complications and intense feelings involved, we believe-with two ex-
ceptions which we note below---that II.R. 7381 (Union Calendar No. 368) rep-
resents a far better solution than contained in S. 1912 and we would recommend
It favorable consideration by your committee.
There are two sections of the bill, as reported by the House committee which
we find objectionable. First and foremost is the provision contained in section
205 thereof. Its provisions, which would require a new examination each time
there was an applicant who is a retired member of the military, seem innocuous
at first look but a deeper analysis reveals it would establish an administrative
nightmare. As witnesses for the Civil Service Commission have pointed out,
either the appointment process for civil service positions would completely
founder, or, In order to avoid this condition, virtually all retired military per-
sonnel would be barred from consideration for any position in the Government
service.
It is our understanding that this section was adopted by the House commit-
tee in the last few moments of their deliberations on the bill at which time there
was little or no opportunity to study the effects of this amendment.
We strongly believe, then, that it is Imperative that this provision be elim-
inatedfrom any bill reported by Your committee.
The second portion of the House bill which troubles us is that contained in
section 2t3f. This provision is not contained In S. 1912 nor was it Included in
H.R. 7381 as originally introduced,
This section is an attempt to include in law and broaden in scope the pro-
visions of the so-called Gilpatric memorandum, a memorandum to the service Sec-
retaries from the Deputy Secretary of Defense of July 5, 190,1. The purpose of
this memorandum was to guard against certain instances, resulting from a few
Isolated complaints, in which it had been purported that retiring military per-
sonnel bad used their prior military relationships to gain unfair advantage in
securing a civil service position. The gist of the memorandum required that cer-
tain procedures be established to provide a clear indication of competition in
those cases where a retired military individual is hired on the same installation
from which he was retired within 6 months after the date of his retirement.
The House committee was written the provisions of this memorandum into their
bill and has made it further restrictive by making them apply to any ease of a
retired person's application for employment in any position in the Department
of Defense.
We think that this provision is too restrictive in that it will make it most
difficult for the Defense Department to attract highly skilled individuals if they
must wait 6 months to be employed. We believe, also, that the few Instances of
alleged influence have been blown up all out of proportion. The Gilpatric memo-
randum is working now, according to Civil Service Commission testimony, and the
need for putting Into rigid statute a successful and flexible administrative regula-
tion seems dubious. We deny the allegation of widespread abusive use of
influence and feel these allegations unjustifiably impugn the character of our
military personnel. We thus recommend that no provisions resembling section
204 of H.R. 7381 (Union Calendar 368) be included in the bill your committee
reports.
In conclusion. then, we respectfully recommend your committee consider
favorable action on H.R. 7381 as reported by the House Post Office and Civil
Service Committee minus the provisions contained In sections 204 and 205. It
Is especially important that section 205 be eliminated as it would nullify the
effectiveness of an otherwise excellent bill.
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT
Senator YARBOROUGH. Thank you gentlemen for a very fine statement.
Senator Boggs.
Senator BOGGS. No questions.
Senator YARBOROUGII. Any questions by the members of the staff?
Colonel CARLTON. Thank you very much.
Senator YARBOROUGH. We will go off the record.
(Discussion off the record.)
Senator YARBOROUGH. On the record.
The next witness is Col. Jackson Rambeau, retired, director of mili-
tary relations of the Air Force Association.
STATEMENT OF COL. JACKSON V. RAMBEAU, U.S. AIR FORCE
(RETIRED), DIRECTOR OF MILITARY RELATIONS, AIR FORCE
ASSOCIATION
Colonel RAMBEAU. Thank you, Mr. Chairman. I am going to try to
outdo everybody else on saving time. I will just take the last page
of my statement, in the summary.
We think the House did an excellent job of working this thing over,
considering the diverse testimony that they got on the bill. We come
up today supporting basically the bill that came out of that full
committee in the House but still recommending three changes. We
think the Regular is still being discriminated against and we think
the Senate ought to do something about this.
Two, we think that you should eliminate or at least restrict the ap-
plication of section 204 to something less than DOD-wide.
The reason I say that, this is a million of the two and a half million
civil service jobs in this country. It seems ridiculous to think that
a Navy enlisted man retiring in San Diego, that would go to San
Antonio to get, a job as a mechanic could get it through undue influence.
And the third point, we completely agree with the Chairman of the
Civil Service Con'imission, Mr. Macy, in his strong objection to section
205.
If I might,, I would like to submit my full statement for the record.
Senator YARBOROUGH. Your entire statement, Colonel, will be
printed in the record.
Senator YARBOROUGH. Senator Boggs.
Senator BoGGs. No questions.
Senator YARBOROUGH. Any questions of the staff ?
I have been through your statement, Colonel, while you were talking,
but I give you credit for being the first witness who condensed it so
that I could not read it all before you finished.
Colonel RAMBEAU. There are some poetic lines in there, Senator.
Senator YARBOROUGH. You have some good statistics and material
that I am reading, but I notice it starts off with that first line with your
78,000 members, and it seems to me you were kind of bragging a. little
compared with the Fleet Reserve Association and the others who
start off with 53,000 or 58,000.
Colonel RAMBEAU. Well, we are still growing.
Senator YARBOROUGH. Congratulations on the work you have done
in building your membership.
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70 DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS
Any uestions?
Thank you.
Colonel RAfrtEAu. Thank you, sir.
(Tho prepared statement is as follows:)
STATEMENT OF COL, JACKSON V. ItAMnEArF, U.S. Ara FORCE (Ii rIRao), DuiEeTos
OF MILITARY RELATIONS, AIR FORCE AssOCIATIO-N
dir. Chairman and members of the subcommittee, the 78,000 members of the
Air Force Association include officers and airmen, Regular and Reserve, civil
servants, veterans and nonveterans, active duty personnel and inactive duty
reservists, retirees, members of labor unions and management. Thereby, we
feel we represent every side of this problem, and there are many.
We support the announced Intention of the proposed hills to simplify, modern-
ize, and consolidate the so-called dual employment and dual compensation laws.
Our members have worked diligently for the last 2 years to get Congress to
clear up the chaos and confusion created by a morass of antiquated dual com-
pensation laws and tortuous decisions an the subject by the Comptroller
General.
We remind the committee that military service is the only occupational field
from which large numbers of people in their forties are retired and forced into
a mandatory second career. The cost to the taxpayer of training military
replacements to make up the high loss rate is fantastic. In the Air Force alone
It runs Into billions of dollars yearly, and ties up 17 percent of all uniformed
personnel. The experience of the other services Is similar. We plead in behalf
of the taxpayer that the Government make a reasonable effort to recoup some
of this vast investment In training.
We congratulate you on taking expeditious action on this bill in order to save
the hundreds of ALS officers and warrant officers from the recent weird decisions
of the Comptroller General, which so adversely affected them.
I am sure the 572 retired warrant officers due to be fired from their civil
service Jobs on January 3, If relief is not provided, are most appreciative to you
for this consideration.
We would like to cooperate In this business of expediting action by making a
very short statement today rather than a complete sectional analysis of the
House bill.
We believe the House committee did a masterful job of bill drafting after
extensive and thorough hearings from many divergent groups. We applaud
their decision to leave enlisted personnel and Reserve officers out of the obnoxious
pay formula. While there are some sections in the house hill we think are
discriminatory and unworkable, It is with few exceptions a much fairer hill to
all concerned than the bill sponsored by the administration. That bill was
flown under the false colors of trying to get critical skilled military retirees into
civil service to rill the needs of the Government. After close examination Nye
could not find a single section of that bill which would have achieved this stated
purpose. The bill spoke of equity of treatment for all retirees. but it proposed
to accomplish this by impo3ing stiff penalties on 95 1s rcent of the retired group
not now being restricted by present laws to give!' percent of the group a very Ilni-
fted amount of relief.
We ask you to keep in mind the composition of Lite retired element these bills
deal with-195 percent enlisted men, 10 percent career Reserve officers, and 5 per-
cent Regular officers. It was fuzzy thinking which assumed that merely be-
cause you were for equity of treatment you necessarily were for something good.
It is believed that the Air Force Association has a longer record than any
organization in supporting elimination of dual compensation restrictions on
Regular officers. We urge you to end this discrimination against these officers
and recommend that the Senate right this wrong by not putting the other 95
percent in a leaky boat.
Despite what you may have heard from other sources, the services, and par-
ticularly the Air Force, have bent over backward to carry out the provisions of
the Gilpatric memorandum. In fact, they have bent so far backward that it has
worked to the decided disadvantage of the Government and military retirees.
Extremely small numbers have been hired since its issuance. However, since
we also want to provide adequate career safeguards for dedicated civil service
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 71
employees against the use of undue influence, we are willing to go along with
its present provisions being written into law.
We are opposed, however, to the broadening of the policy for a "cooling off"
period of 6 months on a DOD-wide basis. Can the members of the committee
seriously visualize a qualified Navy enlisted man retiring at San Diego being
able to get a civil service mechanic's job at the Air Force depot in San Antonio
by the use of pressure or undue influence? Or, for that matter, it seems equally
difficult to believe that the Navy would hire an Air Force or Army colonel at a
Navy installation through the use of "buddy system" influence.
This section (204) was put. in the bill in its present form as the result of a
great smokescreen of undocumented charges with. regard to cross-service employ-
ment and amounts to a covert, effort to eliminate competition. We believe those
supporting this section as written should be asked for documentation to justify
their positions, since this section of the bill may defeat its very purposes. How
many retirees with families can wait 6 months to look for a job?
We, as a matter of principle, resent the implications inherent in the Gilpatric
memorandum, but we assume that we are going to be forced to live with it.
To restrict the hiring of military retirees for 6 months anywhere in DOD, as
now contained. in the House bill, can only have the purpose behind of it of. elimi-
nating competition and forcing military retirees to look elsewhere. Based on
the critical skills some of the people possess, this, can only work to the further
disadvantage of the Government.
We offer two alternatives for commitee consideration, both of which will
improve the Government's competitive position in hiring hard-to-get people :
(1) Write into law the Gilpatric memorandum as it was published. Restrict,
if you must, retirees from taking jobs at bases, of retirement for 6 months.
(.2) Or if it must be, broaden the 6 months' restriction to the service from
which retired to include the base and agency from which retired. For example,
this would cover personnel retiring from the base of another service, or retiring
from a joint Defense agency.
But, Mr. Chairman, our main objection is to section 2O. of the House, bill.
Unlike the math- other provisions of the bill which were hammered out of an
anvil-with the words "The Art of the Possible" stamped on its sides-this
section was added in the last minutes of committee action without full considera-
tion of what it would do to the bill.
As I mentioned earlier, the Air Force Association has among its members
thousands of civil servants, and we are as proud of them as we are of the mili-
tary for the part they play in national defense. In order to evaluate the impact
section 205 would have on the bill we went to a senior group of experts working
full time as civil service personnel officers. Here is what their' evaluation said :
Section 205 of II.R. 7381 would prevent the employment of retired military
personnel under Federal civil service. It would seriously compromise the Gov-
ernment's ability to obtain well-qualified workers, from whatever source. And
it would undermine public confidence in the entire Federal civil service system,
which must fill some 300,000 jobs annually.
Section 205 would prevent the announcement of examinations in advance of
civil service vacancies. This would snake necessary a monstrous number of
examinations-even for single vacancies. The resulting delays in filling jobs
would become critical, and the resulting administrative mess would become
ludicrous. With retired military people in the act, section 205 would threaten
the entire civil service examining system. We cannot permit the entire system
to fall by the wayside. Under section 205, we would have to reject all retired
military personnel from Federal employment. This would be a. tragedy. But
we would have no choice. The retired military man would have to be sacrificed.
In summary, we know that a law everyone supports 100 percent is rare indeed,
but as a practical matter we must ask the committee to reject the adtminisra-
tion's bill and adopt the House bill with these changes as a minimum :
(1) Eliminate the pay formula discrimination against Regular officers.
(2) Eliminate or at least restrict the application of section 204 to something
less than DOD-wide.
(3) Completely eliminate section 205.
Senator YARBOROUGII. The next witness is John A. McCart, ,gen-
eral director of the Government Employes' Council of the AFL-CIO.
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72 DUAL-COMPENSAITION AND DUAL-ESiPLOTMENT LAWS
STATEMENT OF JOHN A. McCART, GENERAL DIRECTOR, GOVERN-
MENT EMPLOYES' COUNCIL OF THE AFL-CIO
MIr.11IcCART. MIr. Chairman, Senator.
Mr. Chairman, in view of the time limitations tuider which the, sub-
committee is workin I would be happy to have my statement incor-
porated in the record and to proceed with an extemporaneous sum-
mn Senator YARnonouGIH. The statement will be printed in full in the
record at the conclusion of your oral presentation.
Af r.:tlcCart, plc isoj nx;eed.
1?Ir. '~NIcCART. IIr. C-liairtnan, t.lie 25 tuiioiis a ciated with our wun-
cil, like so many other witnesses before, a jpproved the intended pur-
pose of the 2 bills pending before the subcommittee. I think it is
significant. to note tltat, almost without exec pt.ion the witnesses have
endorsed the principles of the legislation. it is on a few of the me-
chanics that we encounter problems.
I think it is well to devote just a moment to look at the background
of the legislation. It has become traditional in our country to exer-
cise some control over the entry of retired military personnel into the
Federal civilian service. One of the primary urposes, obviously, is
to maintain the civilian characteristics of the Federal civil service.
Fortunately, this theory is subscribed to not only by the major seg-
ment of the civilian work force but by the military personnel as well.
I think it speaks well for the legislat ion that there is that general con-
currence with the philosophy of it.
With that backgroundt, Mr. (lieirnmim. I would like to address my-
self to several features of the pending bills. I would like to deal first
with the restriction on dual couipcnsation involved in S. 1912 and
I1.hi. 7381.
If.R. 738l carries a military retired pay mniniintmn of $2,( 100 plus the
entire civilian compensation plus 50 percent of the remainder of the
military pay. We favor this feature of the bill because it is related
basically to time, average retired pay of enlisted personnel, and in that
connection we note in the house bill that the restriction on dual com-
pensation applies only to Regular contill is&uoiled officer.., who are re-
tired. AVe feel that this particular control should be applied equally
to all retire-d military personnel-Reserve, enlisted, end Regular.
With respect to the status of enlisted personnel in civilian jobs, as 1
recollect it, there were approximately 11,000 occupying civilian posi-
tions in the defense agencies about at year ago, and I think in terms of
numbers we must. remember this and in terins of lixiang* the appropri-
ato restriction on the rest of military and civilian pay.
On retirement and lea ye. the bill approved try the Ilouse committee
relates these benefits to those provided ummnler the Civil Service Retire-
ment Act.. We feel that the provision of the house bill in this con-
nection is appropriate and desirable, so that. the civilian retirement
system will be preserved and the individuals who compete fairly for
civilian jobs from the military= service will be assured of appropriate
retirement consideration a and also leave consideration.
Now, one feature of the house bill permits the Civil Service- ('om-
mission. by regulation, to make exceptions to the dual compensatian
coat roll. YBoth the house aril Senate versions refer to supervision by
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 73
the President, in this regard., but we simply want to note, Mr. Chair-
man that it is essential in our view that the President be retained in
this legislation as the focal point of these exceptions so that they will
be used frugally in the first instance, and secondly, there will be
appropriate publicity of special exceptions that are made that could
possibly be made in individual cases.
With respect to the 'Gilpatric amendment, we heartily endorse the
inclusion of this feature of the House bill.
As you know, the Gilpatric amendment was prompted largely by
continued complaints from civilian employees about the broad prac-
tice of having military personnel, who have retired, enter civilian
service without the usual safeguards of competition. We feel very
strongly that military personnel who retire should be given equal
opportunities for jobs with others; by the same token, we are equally
convinced that they should have been given no preferential treatment,
particularly those who are careerists and who earlier completed a
career in the military service.
The 'Gilpatric amendment has worked to an extent, it has not accom-
plished all it was designed to accomplish.
At the present time it applies only within each service. Under the
language provided in the House bill, the Gilpatric amendment would
be applicable to all of the three services. We feel rather strongly that
it is desirable to include the gist of the Gilpatric amendment as a mat-
ter of legislative action so that while the Congress is dealing with this
very complex problem of a consolidation of dual compensation and
dual employment laws that this will also be made a part of legislative
policy.
Mr. Chairman, with the observations we have offered and the
amendments we have suggested to the pending legislation, we feel sure
that the committee will be making a very sound contribution to the
stabilization of this problem in the future.
As you know, it has been a very vexing one for those of us who rep-
resent civilian employees. We are anxious to make sure that retired
military personnel do have an opportunity to achieve Federal employ-
ment under the same conditions that are granted to other people, but
by the same token we want to make certain that we preserve the com-
petitive, impartial nature of the civil service system.
We heartily recommend thelegislation to your favorable action and
we particularly want to stress the features of the bills that we have
pointed out earlier in our testimony.
Thank you, Mr. Chairman.
Senator YAR.BOROUGII. Thank you, Mr. McCart.
Any questions?
Senator BoGGs. No questions.
Senator YAuBoxonGii. Any questions of the staff?
Thank you very much.
(The complete statement of Mr. McCart is as follows:)
STATEMENT OF JOHN A. MCCART, OPERATIONS DIRECTOR, GOVERNMENT EMPLOYES'
COUNCIL, AFL-CIO
Mr. Chairman and members of the committee, the Government Employes'
Council, which speaks in behalf of 25 unions representing a significant cross
section of Federal classified, postal, and wage board employees welcomes the
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74 DUAL-COMPENSATION AND DUAL-ENTLOYMENT LAWS
opportunity to offer its comments on the Important legislation, which Is the
subject of this hearing.
In one respect, the proposals are unusual. They have elicited almost unanimous
acreement that steps must be taken to consolidate and overhaul the large number
of confusing statutes which now govern the entry of retired military personnel
into the Federal civil service system.
lint the accomplishment of this objective Is no easy task. As previous testi-
mony indicates, agreement on the need for revision of the present laws stops
short of complete- endorsement of all the provisions of the bills.
Nevertheless, experience with the plethora of laws we now have on dual com-
pensation and dual employment dictates that the complexities involved in modi-
fying the current legislative policies must not prevent action. Aside from the
obvious need to consolidate the huge number of legislative enactments on this
subject over the years, equity to both retired military personnel and civilian ca-
reer employees requires any early solution.
As the dates of the various dual compensation statutes reveal, control in this
field has become traditional In our country. Some maintain Its roots are found
in English civil law. In any case. it is a generally accepted concept in our Na-
tion that great care must be exercised in employing military personnel in civilian
capacities in the, Federal Government. One apparent reason is to Insure the
maintenance of the Federal Government as a civilian institution. There has
been little quarrel with this philosophy. Fortunately, career military officials
have subscribed to this political principle also.
IVith this background. we can review the pending legislation with greater un-
derstanding. Any difference of opinion over the proposal? is likely to come nn
the issue of how to achieve the necessary mocliflea tlons and their extent, rather
than over the nerd for consolidation and modernization of the laws now in effect.
In our view, there should be two fundamental objectives in moving the pendiai,g
recommendations rn dual compensation and dual employment through the legis-
lative process. 'rbe first Is to preserve the civilian nature of the Federal merit
system so that Individuals who enter civil service as a primary career may be
assured a reasonable- opportunity to advance In that career in accordance with
their abilities. The secoeul basic purpose should he to permit competition for
Federal civilian jobs by career military personnel who retire in keeping with the
need for maintaining civil service as a civilian career system.
Even if these bills under consideration had no either advantage. they would
place in one comprehensive statute the IK,Ih-ies governing the admission of re-
tired military nien and women tutu the ranks of civii service employment. They
would merge the numerous piecemeal la++s enacted at various. intervals to meet
special circumstances.
But the legislation accomplishes much more than that. It supplies a system
of pay and employment conditions for all retired military employees who seek
civilian positions.
S. 1912 permits retired military personnel in all categories who are employed
in civilian jobs to retain the first $2,000 of retired pay, plus 50 percent of the
remainder and their entire civilian compensation. The reduction in retired pay
does not apply in cases of disability or to temporary appointments.
Asimilar restriction on retired military pay Is found in II.R. 73141 also. IIo.v-
ever. the control extends in the IIouse bill only to retired Regular commissioned
officers. It is not applicable to retired reservists or enlisted personnel.
Recalling the basic purposes of the legislation, time Council believes it important
to insure equal consideration for all those who retire from military service and
desire to enter civilian Federal employment. The control on military and
civilian pay should include enlisted and Reserve retirees.
We believe the $2,000 figure is desirable. It represents the average retired
pay of enlisted personnel. hence, it is realistic In terms of the actual military
compensation available to those who enter civilian occupations.
Both the louse and Senate measures permit exceptions to the dual compensa-
tion restrictions to meet "special or emergency employment needs, which cannot
otherwise be readily met." S. 1912 authorizes such statutory deviations under
regulations Issued by the President. The House bill allows the exception by
Civil Service Commission regulations, subject to the supervision and control of
the President.
We believe the words "special-Government employment needs which cannot
otherwise be readily met" is broad and subject to various Interpretations. Con-
ceivably, "special" situations could be applied to one Individual, and could be
misconstrued by the employing agency.
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The Council recommends, therefore, that section 102(d) be deleted, and the
following language be substituted:
"(d) The President may through appropriate regulation provide exemptions
from the restrictions in subsection (a) of this section to meet unusual employ-
ment needs."
Placing this authority directly in the hands of the President should help to
underscore its importance and the necessity for its frugal use. Moreover, the
publicity attending Presidential regulations will emphasize the basic controls
in the legislation.
With respect to civilian retirement, the House bill does not modify present law,
which prohibits credit of military service by a military retiree, except where
a disability exists or the individual was retired as a reservist or the military
retiree waives the military pension.
S. 1912 differs only to the extent that it permits civilian retirement credit
where an individual has less than 6 years of active service.
Section 3(b) of the present Civil Service Retirement Act seems to contain
more adequate safeguards of the civilian pension system, but allows the military
retiree to credit all civilian employment if he elects to forgo the military pen-
sion. Consequently, we favor acceptance of the House version.
Annual leave entitlement under both the House and Senate versions is based on
creditable service under the civil service retirement law. Under H.R. 7381, the
military retiree could count for leave purposes only service in a war or campaign,
and could credit all years in the Armed Forces, if disabled. The House provi-
sion is more desirable in the opinion of the Council. This position is based on
the fact that peacetime service would be excluded for annual leave in most
instances.
Of particular significance is incorporation into H.R. 7381 of the basic provi-
sions of the Gilpatric memorandum. No similar proposal is found in S. 1912.
Mr. Gilpatric's communication represented the first definitive statement in
many years designed to clarify the policy of the Defense Department on condi-
tions governing employment of retired military personnel in civilian jobs in
the respective services. It recognized the dual need for positive action to
assure the right of career civilians to advance on merit, and at the same time to
assure career military personnel of consideration to which they are entitled
in competing for civilian jobs.
The memorandum was a large step in the direction of meeting the per-
sistent complaints of civilians workers. It did not result in the complete elimina-
tion of all such complaints. But the communication was an honest effort to
develop effective guidelines for those responsible for appointments to civilian
jobs in the military agencies.
It is doubtful that any law or policy will remove every vestige of personal
preference in hiring practices, But Mr. Gilpatric's statement made it clear
that favoritism could not be justified or tolerated.
For these reasons, we urge strongly that the committee accept this feature
of the House bill. H.R. 7381 requires a report to Congress by January 1966.
S. 1912 contains no comparable feature.
There is general agreement that the subject of the pending legislation is
involved and perplexing. All concerned are anxious to see that the interested
parties are treated fairly and that the Federal Government's best interests
are served. In dealing with a subject of this scope it is difficult to anticipate the
precise effect of a new law on all the individuals who will be affected.
Presentation of a report to Congress on the actual operation of the new
statute in practice will permit the House and Senate to review the matter to
determine whether further remedial steps are needed. This is essential particu-
larly during the first several years the consolidated statute is in effect.
The council recommends, therefore, that the committee preserve this section
as it appears in the House bill.
With the amendments we have offered, the Council is convinced the pending
bills are highly desirable legislation. The effects should be to preserve Federal
service as a means for career civilian employees to make a maximum contribu-
tion to the operations of the Federal Government. At the same time, it will
meet the administrative management needs of Federal officials charged with man-
power responsibilities, and will extend to retired military personnel a fair op-
portunity to compete for civilian positions. Finally, it will remove much of the
uncertainty and confusion surrounding the dual compensation and dual em-
ployment statutes now in effect.
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76 DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS
With these revisions, we urge the committee to process this legislation toward
enactment at an early date.
To you and your colleagues on the committee we offer sincere appreciation
for arranging this series of hearings on it challenging issue.
Senator Yutnororonn. The newt witness will be Mr. Jerome Keat-
ing, president of the -National Association of Metter Carriers.
Mr. Keating, we are glad to hear from you.
STATEMENT OF JEROME BEATING, PRESIDENT, NATIONAL ASSO-
CIATION OF LETTER CARRIERS, ACCOMPANIED BY DON KERLIN,
LEGISLATIVE CONSULTANT
Mr. KEATING. Senator, I am happy to have with inc. on this occasion
.T. Don Kerlin, whom you all know very well, who is our legislative
consultant..
You have had a good deal of testimony on this bill today. Gen-
cra.lly we are in favor with the purposes of this bill which is to pro-
vide a little bit more orderly procedure, in the area of dual com-
pensation.
We. support. pretty much the staitenaent that was made here by John
McCart. There is one tdiing, however, that I want to call to your at-
tention that I think should be considered by the committee although
I do not think it neceamrily affects this legislation. It is the fact
that we do not have in the Government tuliform consideration for re-
tired people.
Persons that retire under the Civil Service Retirement Act do not.
have the same rights and privileges as do persons who retire from
the military services.
Under S. 1012 it is proposed that a retired military person who is
reemployed could retain $2,000 plus 50 percent. of the remainder of
his retired illy and retain the full amount of compensation that he
would receive from the Government.
This is not applicable to temporary employees or to retired reserv-
ists or enlisted personnel. Under the Civil Service Retirement Act
if a retiree is employed he. is paid only the difference between his
annuity and the normal salary of the position.
I know that there is a lot of bilk about the Civil Service Retire-
ment Act. not being fully funded. It, is the only program that we try
to have fully funed in Government; other programs are not on a
funded basis. We do believe there should be a little bit moreequality
of consideration when you consider the retirees in both categories.
It is true that. there are more retired military personnel seeking po-
sitions than retired civil service employees who seek Government
employment. But in employing the military we are very strongly
in favor of this provision that. when they are employed they should,
as far as possible, be selected on a fully competitive basis. For the
ordinary jobs we think that the competitive features of civil service
retirement should be retained and we think that the rights of the civil-
ian employees should be thoroughly protected.
We are in favor of the veterans preference; in fact, the majority
of the members of our organization are veterans and they have some
form of veterans preference. Many have disability and most of them
have at. least 5-percent preference. We are in favor of protecting
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veterans preference, we want to see the veterans given every con-
sideration and we support that provision very strongly.
But we believe that the competitive feature should be retained and
that when and if exceptions are made they should be by specific order
of the President.
Outside of that I would like to file and will file a more detailed
statement. But those are some features of this legislation that I
thought should have been discussed here this afternoon.
Senator YARBORGUGII. We will be glad, Mr. Keating, to receive your
full statement, on your behalf and behalf of the organization you
represent. I know you were on the witness list to testify fairly early
this morning but you could not make it this morning. It was fortu-
nate for us that we had this hearing this afternoon so you would have
an opportunity to appear.
Mr. KEATING. I got tied up at the last minute, Senator; I am sorry
I was not here.
(Subsequently Mr. Keating supplied the following supplemental
statement : )
STATEMENT OF JEROME J. KEATING, PRESIDENT, NATIONAL ASSOCIATION OF LETTER
CARRIERS
I would like to compliment this committee and the Civil Service Commission
for their efforts to correct the existing dual employment, dual compensation
problem. This problem has many angles, all which have been thoroughly dis-
cussed during these hearings. It is our belief that the current bill with some
amendments will go a long way to create a more harmonious situation. We
suggest the following three amendments :
First. It is suggested that section 102(d) be amended to read as follows:
"Exceptions to the restrictions in subsection (a) of this section may be author-
ized by the President whenever it is determined to be warranted on the basis
of emergency or unusual Government employment needs which cannot otherwise
be readily met."
Section 102(d) in its present form would permit exemptions under regula-
tions prescribed by the President. We assume this to mean that the President
would issue regulations under which departments and agencies could grant
exemptions. We do not think such a delegation would be wise or in keeping
with the seriousness of the situation. Under the language we propose, only
the President could authorize exemptions to the provisions of the bill.
Second. The National Association of Letter Carriers believes strongly in the
principle of merit promotion and appointment enunciated in the Gilpatric
directive. To this end the Gilpatric directive sets forth conditions precedent
to the employment of retired military personnel in civilian positions. Neces-
sarily, the conditions applied only to employment in the Department of De-
fense. It is suggested that the conditions set forth in the Gilpatric memoran-
dum be embodied in the bill and extended to the entire Federal service.
Third. It is recommended that the bill be amended to require an annual
report from the executive branch to the Congress on the administration of the
act. We think Congress and the public should know how the measure is being
administered and how it is working out, at least for the first few years after
its adoption. Such a report. would make this possible.
Thank you very much for the opportunity of appearing and presenting the
views of the National Association of Letter Carriers on this important measure.
Senator YARBOROUGFI. Senator Boggs.
Senator BoGGS. No questions.
Senator YARBOROUGH. Any questions of the staff ?
We will hold this open for a certain number of days for those state-
ments.
Thank you.
Mr. KEATING. Thank you.
26-977-64--6
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Senator YARnonormr. Senator Boggs, will you take over? I have
another enganement starting at 2:30 and I am a little bit late. I will
be grateful i'you will ~x nduet. the rest of the hearings.
Senator Boccs. I will be glad to, 111r. Chairman.
.Major Stafford, we are glad to have you.
.Major Stafford, are you appearing on your own behalf or are you
representing an organization ?
STATEMENT OF MAJ. THOMAS L. STAFFORD, U.S. ARMY (RETIRED)
Major ST.FYwinD}. No, sir, I come before you today, Mr. Chairman,
:is a private citizen, representing no group or agency and under no
encouragenient from anyone.
Senator Boccs. We are glad to have you with us, sir.
Major S'rArionn. Since this bill is directed toward people in my
category I thought the committee might be interested in hearing
testimony concerning some of the problems a military man faces upon
retirement, particularly if he desires to continue in the service of his
country.
In order that you may better evaluate my testimony I would like
to touch briefly on my military service.
I was drafted out of college in 1943 at the age of 19; after com-
pleting basic training I applied for OCS but was told I was too young
to lead troops in the Quartermaster Corps. I volunteered for over-
seas duty and arrived in England in time to participate in the action
on Omaha Beach on June 6, 19.1-1. l participated in five campaigns,
receiving five battlefield promotions including a battlefield commis-
sion, all in the same infantry rifle platoon. After the war, in 1048, I
applied for a regular Army commission but I was denied it because of
poor eyesight. I decided to stay on in the Army, believing back in
those days that a reservist who served honorably and officially could
complete 30 years service. I served 4 years in Germany during the
Russian buildup, the cold war, and in the Berlin area.
Since 1954 I served three tours in the Pacific. During the last 5
years I was decorated twice for work in financial management. Dur-
ing that period I received letters of commendation and appreciation
for my work in budgeting and cash control.
I think anyone would admit that few people below the rank of
colonel are fortunate enough to get two peacetime decorations.
In the fall of 1961 I v. as informed as a reservist I was due for man-
datory retirement upon completion of 20 years duty in the summer
of 1963. Upon my return to the States in 1962 I wrote several letters
to the Department of the Army requesting permission to continue on
active duty but none of these requests received favorable consideration.
On June 1, 1963, I was retired from active duty. Believing that my
experience and background, particularly in financial management,
would be of value to the Government I decided to seek employment as
a civi 1 service employee.
having received no orientation or counseling on obtaining a job
after retirement by any Government agency, approximately a week
before I retired I contacted the Civil Service Commission for advice
in gaining employment. After discussing my background with a
gentleman there in the Commission I was advised to seek eligibility
under the famed "announcement." Since my military assignments
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 79
during the last 5 years' service had placed me in supervisory capacity
over GS-13's, 12's and on down the line, I was informed I should have
no difficulty in qualifying at the GS-13 level. I applied to the Com-
mission on May 23 and went out to look for a job. Everywhere I
went I was told there was no use discussing a position until after I had
established eligibility.
I continued to contact various agencies in order to line up a job
when this did arrive. I was always told the same thing, come back
after you get your eligibility. I stayed at home and didn't leave the
city. I was afraid this might come through and I might miss an
opportunity.
Finally, on Aumust 25, 3 months later, I received notice that I had
been rated at the CTS-13 level.
I continued to seek a job at this level but without success.
By September 15, I finally made up my mind there were no jobs
available at the GS-13 level. I did line up a job at the GS-12 level
and was told by the civilian that interviewed me that he had inter-
viewed over 60 applicants for this job and he considered me the best
qualified. I told him I would take the job.
Several weeks later, I think it was about the 4th or 5th of Octo-
ber, this civilian called me and informed me I could not be hired for
the GS-12 position because I was on a GS-13 register. It was for the
identical type work I had been doing, that I had had people below me
I was supervising, I was fully qualified for the job.
I then called the Civil Service Commission and was told this was
correct,. I then. asked how I could get on a lower register that would
make me eligible for this lower rated job. I was told this particular
area-financial management-was closed but as a veteran, provided
it had not been more than 120 days since I retired, I could get on..
Since my grace, period was up on October 1, I find I cannot apply for
any financial management level at any grade lower or higher than
GS-13 and unless I want to go back and take that famed announcement
again and try to get on at the 14 or 15 level, but I was told before
having retired as a major I would ordinarily be classified as a 13.
I continued to contact various Government agencies on the aver-
age of seven per week since June, and I still have found no work.
I went out to NASA 2 months ago and took their exams, passed their
exams, qualified at the GS--13 grade level, but have been informed
there is a freeze now on employment at NASA. I have been told by
numerous agencies that they do not hire from this field register for
grades 13 or above. They only promote from within or oa a lateral
level. You have to have status or have a level of 13 or above.
Not to be facetious, I have been told by some who were wearing
knee pants when I was on Omaha Beach that I don't have status, even
though I have served this Government for 20 years.
I have been told by others that I lacked a college education even
though I have been decorated for doing a job that others who were col-
lege graduates and whom I have relieved were not able to accom-
plish.
Mr. Macy stressed equal opportunity between the military and ci-
vilians. I don't believe it exists.
For example, the only way a retiree can find out where a job might
exist is to keep in constant contact with the various civilian personnel
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80 DUAL-CO3IPE TSATION AND DUAL-EMPLOYMENT LAWS
officers or learn about it from the grapevine. Even if it civilian who is
in the financial management area, a civil service employee who is in
the financial management area is not aware of it, job opening that he
might be interested in, he has a career branch to take. care of him
and refer him, if he is within range that is, if the job does become
available. The military retiree. does not have this contact. A retiree
cannot get on this referral list. unless lie is a pointed to a civil service
poition. 1 retiree in my category, if lie finds it position for which he
qualifies, must gro through the followinprocedure. First. I must lo-
cate this job; then I must convince the-people that I am the man for
the job; then they must go back to the. Department of the Army,
Comptroller career field, request that my name be put on this referral
list, one shot only, sent back to the, agency, then if I still stack up
against the 10 civil service employees that are on there, I have no
qualm of that, if I still stack up, then they have to go back to the
Civil Service Conunission and ask that I .. certificated back, even
though the Civil Service Commission has already given me an eligi-
bility ra tin g at t lie GS-13 level.
This takes considerable time, and you walk into an operating official
who is hard pressed, has to get it job done-I have been in this position
myself before- if it is a matter of taking a military man who is better
qualified but you have to wait 45 or 60 days to get him, why, not take
lesser qualified men, why waste his time, when you might wind up at
the end of this process of not getting the retiree at all because he might
be bumped out by somebody else, or might not even be referred back
by the Civil Service Commission. They will only refer three people
back.
A retiree in order to qualify for an eligibility, rating, no matter what
lie did before in the service, must take an examination administered by
the Civil Service Commission. I have no argument whatsoever with
their requirement except that the military man, I believe, is generally
rated lower than the responsibility level he functioned on while in
service.
I would like to give you an example of this inequality. Suppose in
my last assignment where I was a budget officer, I had a branch chief
down below inc. lie was a GS-12. Today the Civil Service Commission
has given me it rating of 13. 1 had to take an examination for this
rating. There is it job open at the 13 level somewhere. This civilian
employee that worked under me as one of my branch chiefs lower down
the lac. der, he. wants to take a crack at this 13 job, too. We both Qo in
together, we have to get on the same referral list.; if I am selected Iliave
to go back to the. Commission, like I mentioned before, for cert ification.
If the civilian is selected lie gets the job, point blank, no waiting time
whatsoever. So I leave it to you, Senator, if you were. in the position
of a person who was trying to hire somebody who would you take?
I have run into many instances in civilian personnel offices where I
was told that there were no jobs available only to learn later that there
had been jobs available at the EIS-13 level when I came in and applied
for them in this particular career field..
I would like to touch lightly on this Gilpatric amendment because
it has been mentioned here several times before and I would like to
bring it. to your attention of how tremendous an effective club this
thing has become.
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The Gilpatric directive, I think everyone realizes, was directed
toward prohibiting a man from seeking employment at the installa-
tion from which he retired from. Normally we in the service-Navy,
Marines, Army, or anywhere else--consider an installation as a base.
For example, Fort Bragg or the Norfolk Naval Base, or something
of this nature.
This I have no argument with. I had no argument with it at the
time although I thought it was a stab in the back and a slight, an un-
fair quarantine, but at any rate I went ahead and complied with it.
I did not try to seek employment in the installation I retired from
which was MDW. I was told some persons in the Department of the
Army interpret installation to apply to every Army installation within
the commuting distance of Washington.
Now, this requires the civilian personnel offices to, if a man comes in,
a military retiree, it requires them to go in with a very detailed, a very
lengthy, and a very soul-searching resume on this individual. Well,
to quote the CPC, the civilian personnel circular 13 dated August 15,
1963: It states in leading off : "In applying the term `installation,' a
broad interpretation would be given in any borderline case."
The people in DA took it upon themselves to make it apply to the
whole area here. It goes on to state that full consideration in ac-
cordance with inservice placements, promotion procedures will be
given to eligible career employees before selecting retired military
personnel for civil service positions.
It goes on to state that in this resume they must include a descrip-
tion of the recruitment efforts -undertaken to locate qualified appli-
cants relating them to applicable requirements as appropriate. They
must also include a statement of the qualification requirements which
were established including information or special qualifications re-
quired or considered in the selection process.
It goes on to state that where it military retiree is selected over
qualified inservice applicants, furnish a comparative analysis of each
applicant. It goes on and on and on, finally winds up stating that
approval of the request extends over to a review of the steps required
to insure compliance with the purposes of the memorandum and with
all the employment requirements.
All this is a big-brother game.
Senator BOGGS. We have that Gilpatrie memorandum in the record.
Major STAFFORD. I would like to touch lightly on withholding pay.
The gentleman who just preceded inc made some statement, I don't
recall exactly how lie puts it, but I would like to point out that I as a
military retiree, if I went to work for the Government at a GS-13
level, if I was called back to active duty, my civilian pay would go
out the window, and rightfully so, my retired pay would go out the
window, rightfully so. I would go back to the pay I retired from
as a major. I don't see what his argument amounted to.
I do not not want to bore you with any more details, sir, but I
would like to say this in closing, after 61/2 months of fruitlessly seek-
ing a job, I have come to the conclusion I am a second-class citizen.
I have almost completely exhausted my life's savings; I realize if
I do not find work before the 15th of January, I am going to be
forced :to sell my house; that is, if I want. to continue to get on with the
Government.
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82 DUAL-CONTEN'SATION AND DUAL- EMPLOYMENT LAWS
Again I do not want to be facetious, but I must say there is not going
to be any Christmas ill my house, sir, but I wish you a Merry
Christmas.
Senator I3iiocs. Major, T want to thank you for your statenlellt; I
appreciate it and I assure you the committee appreciates it very mach.
Mayor ST:1FFt>xl,. Thank you, sir.
Senator fuccs. Thank you.
There have been a nuinber of statements submitted for inclusion
in this lleari ngr record. All will be printed.
The Chair will announce than the record tvill be kept Open until
next _Mondav. Decenilter 16, for further statements.
The hearing is adjourned.
(Whereupon, at :") p.m.. the hearing was closed.)
(Subsequently the National Aeronautics and Space Administration
submitted the following communication and exhibits:)
NATIONAL. AERONArTICS AND SPACE .LO\TINISTRATIOS,
11FTCE OF THE ADMINISTRATOR.
Washington, D.C., January 31, 196.1.
Hon. RAT.PII W. YARBOROUGH.
Chairman, Subcammittcc on civil Ser-vlec, Cornrnittcc on Post Office and Civil
Service, U.S. Senate, T3'ashington, D.C.
DEAR MR. CHAIRMAN : Reference is made to the bearings conrllleled by th? Snh-
committee on Civil Service of the Senate Committee on Post Office and Civil
Service on December 12, 1963. on dual compensation. S. 1912. and Including con-
sideration of the form of the dual compensation hill, II.R. 7381, as it now appears
on the calendar of the House of Representatives.
The National Aeronautics and Space Administration favors the proposed legis-
lation in order (1) to permit the Government to capitalize on certain skills,
competence, and experience in the areas of aerospace science and technology
possessed by a sizable group of military personnel who have completed their
active duty careers and (2) to correct certain Inequities In the present statutes
pertaining to the employment of these personnel by the Government.
Many of the abilities and skills and much of the knowledge valuable to NASA
are possessed by certain military personnel who have been closely associated
with missile and military space programs and aeronautics. Collectively. this
body of men. educated and skilled In aerospace science and technology, repre-
sents a reservoir of knowledge and experience which constitutes a national asset
of inestimable value. Unless a substantial portion of this group of specialists
can be attracted to remain In the Government, this asset will not be available
directly to the Government's space program.
As of December 1, I95t. '27)I active duty military officers were detailed to
NASA from the pseoartment of Defense for a 2- to 1-year tour of duty. Attached
is a list of those officers.
The officers are primarily engineers, physieaf scientists, and administrative
specialists whose backgrounds are directly pertinent to NASA's work. Of tile
254 officers. 4:3 are of senior rank. and arc lxrforming key technical or manage-
ment assignments. The senior grade officers in particular represent tine tylx, of
personnel NASA desires to (employ because of their ,lx4.ialIzed echlcat-son and
experience. The number of personnel so employed would be probably fewer
than 50 in it fiscal year: however, each selection would represent the utilization
of the very specialized talent and would sirnailicantly benefit Lite national space
program.
The NASA has under it:; baste :vet, authority to employ retired military per-
sonnel without regard to the Isuat Office Act of 1St4. A similar exempt 1011 would
be provided on a Government-wide basis by S. 1912 and H.R. 7341 as carried on
the calendar in the House. In view of the fact that the dual ollice restriction
does not now apply to the ensplov"lent of retired military personnel by the
NASA, this report addresses itself only to the dual eompenstttion restrictions
applicable to such employment under section 212 of Cite Economy Act of 1932.
The preferential treatment aeenrded mast retired Reserve officers as coinpared
to most retired Re;,uulars under tie current dual compensation law is felt within
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 83
NASA. To permit one to accept his retirement pay and not the other is unfair.
There appears to be no. valid reason for this distinction.
It is understood that Mr. J. Macy, Chairman of the Civil Service Commission,
recommended at the hearing on December 12, .1963, that the amount of retire-
ment pay to be retained by retired officers in Government positions be raised from
the first $2,000 of such pay plus one-half of the remainder, as presently stated in
section 102(a) of S. 1912, to the first .$2,500 of such pay plus one-half of the
remainder. The National Aeronautics and Space Administration endorses this
recommendation.
NASA needs technical personnel highly trained and experienced in the space
sciences and engineering. Retired officers meeting these criteria would be quali-
fied to fill vacancies in NASA carrying salaries well above the level at which
retirement pay is forfeited under the existing dual compensation law. Under
these circumstances, NASA as a rule cannot successfully compete with. industry
for the services of these technically competent and experienced people.
The following cases are cited as typical of the problems being faced by NASA
in attempting to fill key positions by employing retired military personnel com-
petent and experienced in the aerospace field :
(1) A few months ago, a colonel retired from the U.S. Air Force after 23 years
of military service including program management, commander of the test wing
at Cape Kennedy during the critical Thor-Atlas period, and test commander at
? the Special Weapons Center. He was offered $20,()00 as an Assistant Director of
NASA's Manned Spacecraft Center in Houston. Ile declined in favor of a
$27,000 position with Space Technology Laboratories in which position he would
still be able to draw his $7,000 military retirement pay. Dr. Walter Williams,
who was then our Deputy Director at Houston and is now here at headquarters,
believes the colonel would have accepted the NASA position if lie could have
retained his retirement pay.
(2) Recently a Navy captain, who was on duty at NASA's Manned Spacecraft
Center in Houston as a branch chief, and who had served previously as range
operations officer at Poilit Mugu, Calif., and in space surveillance at Dahlgren,
Va., retired from the Navy. His experience was appropriate to work in the
development of our Apollo tracking network, including coordination with the Jet
Propulsion Laboratory, the Goddard Space Flight Center, and military tracking
systems. Prior to retirement, lie indicated an interest in a position with NASA.
However, he accepted a position with private industry hecause NASA was
unable to give him a position at the $18,000 to $20,000 level, which would have
compensated in some measure for the loss of his retirement pay.
(3) A recently retired Navy captain, whose final year of active duty was
served on detail at NASA headquarters as a division director, has accepted a
most important NASA position as Director of Manned Space Flight Field Center
Development, in anticipation of relief from the limitations imposed by the
present dual. compensation law. Were it not for the present law, he would be
eligible to, receive more than $6,000 retirement pay. With his qualifications,
his services have been and continue to be sought by industry at a high level
salary. While he would like to continue in the NASA program, he feels that
he cannot afford to accept the financial penalty indefinitely.
(4) Similarly, a senior Army colonel who has been serving as program mana-
ger for the Saturn I/IB programs at the George C. Marshall Space Flight Cen-
ter, Huntsville, Ala., has retired and has accepted civilian employment with
NASA in anticipation of passage of this legislation.
(5) A Navy captain with over 30 years of service and extensive management
experience in rocket testing and aerospace sciences is currently manager of the
NASA Mississippi test operations, Gainesville, Miss. He faces statutory retire-
ment in 1964. He doubts whether he can. accept the penalty of forfeiting over
$9,500 retirement pay for civilian employment with NASA, although he has ex-
pressed a strong desire to remain with the NASA program.
(6) A U.S. Air Force colonel who is currently occupying a key position. at
our George C. Marshall Space Flight Center at Huntsville, Ala., is an additional
example of a highly qualified officer who would like to continue in the NASA
program if the financial penalty is removed.
(7) NASA has in its employ at the present time several senior retired
Regular military personnel. One is on the Deputy Associate Administrator
level, which is the highest level of general executives within the agency. These
officers have served in industry at much higher combined industry and military
retirement pay than they are presently receiving at NASA. Like many civilian
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$4 DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS
personnel in the higher executive brackets, they are willing to forego, for a
while at least, the attraction of the higher salary of industry in exchange for
the experience and the personal satisfactioon of participating firsthand in the
Nation's space program. However, NASA can expert to lose the services of some
of these men after it period of time, If they must continue to forfeit all or most
of their retirement pas. This financial penalty in sums' cases approaches one-
half to two-thirds of their salaries at NASA.
Much of the specialized knowledge and managerial experience which are re-
quired by NASA are possessed only by military personnel who have been
closely associated for an extended period with missile and military space pro-
grams. There to an urgent need within NASA to draw on this source of
experienced talent to fill some of the higher bracket executive positions which
NASA has been unable to fill from other sources. In fact, NASA has recently
addressed requests to the L.S. Air Force for the temporary assignment to
NASA of two active duty officers at the brigadier general/colonel level to fill
managerial positions In the manned space flight program. It is expected that
It will be necessary' In the near future to request three more active duty officers
of these ranks, experienced In program management-
At the time that the hearings on II.R. 738i were being held, letters from the
three NASA Center Directors most heavily Involved in the manner space flight
program, expressing their strong Interest In the provisions of the legislation
as a means of assisting them in meeting their key personnel problems were
made a part of the official record. Copies of these letters are attached.
In the light of all of the foregoing discussion, the National Aeronautics and
Space Administration recommends that S.1Dl2be enacted.
The Bureau of the Budget has advised that there is no objection from the
standpoint of the adnilnislratton's program, to the presentation of the report
for the consideration of the committee.
Sincerely yours,
Other junior grade military detailecs occupying positions within- NASA
Army ranks or equivalents
2d lieu- 1st lieu-
tenant tenant
Captain
Major ! Totals
IIeadquuarters
------------------------?` ------ --:
2
S 7
----
Ames Research Center--------------------- 6 y
------?---
---?-?----. 13
------------------ 1 1
Flight Research Center
2
--?-?---- 4
-
Goddard Spam Flight Center-------------1 10 4
------------
15
1
lot propulsion laboratory -------------?---- 13 7
- 20
----------
Iangley Rewords Center-----------------1 28 3
------------
1 82
Launch Operations Center ----------------------------- ?-----------
- 11
38
17
Macdiail space Flight Center-------------
'
2
Wallops Station ---------------------------;
------------- s
Manned Spacecraft Center
la
13 36
--
Lewis Research Center ............ -------- 171
23
1
t 42
Total-------------------------------- 94
68
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DUAL-COMPENSATION AND DUAL-EMPLOYMENT LAWS 60
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 Approved For Release 2005/05/18 : CIA-RDP66B00403R000500010002-2
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