CHANGES IN EXISTING LAW

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP71B00364R000500220010-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 20
• Document Creation Date: December 9, 2016
• Document Release Date: August 21, 2000
• Sequence Number: 10
• Content Type: LIST

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CHANGES IN EXISTING LAW
In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, there is
herewith printed in parallel columns the text of provisions of existing law which would be repealed or
amended by the various provisions of the bill as reported. -
Central Intelligence Agency Act
of 1949, as amended, 50 U. S. C.
403 a through j. )
Sec. 3. (a) In the performance of its functions
the Central Intelligence Agency is authorized to
exercise the authorities contained in sections 2(c)(1),
(2), (3), (4), (5), (6), (10), (12), (15), (17), and
sections 3, 4, 5, 6, and 10 of the Armed Services
Procurement Act of 1947 (Public Law 413, Eightieth
Congress, second session).
(b) In the exercise of the authorities granted in
subsection (a) of this section, the term "Agency
head" shall mean the Director, the Deputy Director,
or the Executive of the Agency.
Sec. 101. This title may be cited as the
"Central Intelligence Agency Act Amendments
of 1967".
Sec. 102. The Central Intelligence Agency
Act of 1949, 63 Stat. 208, as amended (50.;
U. S. C. 403 a through j), is further amended
as follows:
(a) Section 3 of the Act (50 U. S. C. 403c)
is amended by striking subsections (a) and (b)
and substituting the following:
"(a) In the performance of its functions,
the Agency is authorized to exercist the authori-
ties contained in sections 2301; 2302(2) and (3);
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EXISTING LAW
(d) The power of the Agency head to make the
determinations or decisions specified in paragraphs
(12) and (15) of section 2(c) and section 5(a) of the
Armed Services Procurement Act of 1947 shall not
be delegable. Each determination or decision
required by paragraphs (12) and (15) of section 2(c),
by section 4 or by section 5(a) of the Armed Services
Procurement Act of 1947, shall be based upon
written findings made by the official making such
determinations, which findings shall be final and
shall be available within the Agency for a period
of at least six years following the date of the
determination.
Sec. 4. Under such regulations as the Director
may prescribe, the Agency, with respect to its
officers and employees assigned to duty stations
outside the several States of the United States of
America, excluding Alaska and Hawaii, but
including the District of Columbia, shall--
2303(b) and (c); 2304 (a) (1), (2), (3), (4),
(5), (6), (10), (12), (15), and (17); 2305;
2306; 2307; and 2312 of title 10, United
States Code. "
"(b) In the exercise of the authorities
granted in subsection (a) of this section,; the
term 'Agency head' shall mean the Director,
the Deputy Director, or the Executive Director."
(b) Subsection 3(d) of the Act (50 U.S. C.
403c) is amended by deleting the words
"section 2(c) and section 5(a) of the Armed
Services Procurement Act of 1947" from the
first sentence and substituting therefor,
"section 2304(a) and section 2307 of title
10, United States Code. " Section 3(d) is
further amended by deleting the words "section
2(c), by section 4 or by section 5(a) of the
Armed Services Procurement Act of 1947"
from the second sentence and substituting there-
for, "section 2304(a), by section 2306 or by
section 2307 of title 10, United States Code.".
Sec. 103. Section 4 of the Central
Intelligence Agency Act (50 U. S. C. 403e) is
amended by inserting the word and comma
"abroad," after the word "assigned" in the
first sentence, and by striking the last word of
the sentence, "shall!", and inserting in lieu
thereof the word "may".
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EXISTING LAW THE BILL AS REPORTED
Sec. 104. Section 4 of the Central
Intelligence Agency Act (50 U. S. C. 403e) is
amended by adding the following new paragraph:
"(1)(G) pay the travel expenses of officers
and employees of the Agency and members of
their families, while serving at posts specifically
designated by the Director for purposes of this
paragraph, for rest and recuperation to other
locations abroad having different environmental
conditions than those at the post at which such
officers and employees are serving, provided
that such travel expenses shall be limited to the
cost for each officer or employee and members
of his family of one round trip during any
continuous two-year tour unbroken by home
leave and two round trips during any continuous
three-year tour unbroken by home leave;".
Sec. 105. Section 4 of the Central Intelli-
gence Agency Act (50 U. S. C. 403e) is amended
by adding the following new paragraph:
"(1)(H) pay the travel expenses of members
of the family accompanying, preceding, or following
an officer or employee if, while he is enroute to
his post of assignment, he is ordered temporarily
for orientation and training or is given other
temporary duty. r'
Sec. 106. Section 4(3)(A) of the Central
Intelligence Agency Act (50 U. S. C. 403e) is
amended to read as follows:
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Sec. 4. (3)(A) order to any of the several States
of the United States of America (including the District
of Columbia, the Commonwealth of Puerto Rico, and
any territory or possession of the United States) on
leave of absence each officer or employee of the
Agency who was a resident of the United States (as
described above) at time of employment, upon comple-
tion of two years' continuous service abroad, or as
soon as possible thereafter."
Sec. 4 (5)(A) in the event of illness or injury
requiring the hospitalization of an officer or full-
time employee of the Agency, not the result of
vicious habits, intemperance, or misconduct on
his part, incurred while on assignment abroad,
in a locality where there does not exist a suitable
THE BILL AS REPORTED
"(3)(A) order to any of the several
States of the United States of America (including
the District of Columbia, the Commonwealth of
Puerto Rico, and any territory or possession
of the United States) on leave of absence
authorized in section 203(f) of the Annual and
Sick Leave Act of 1951, as amended, each officer
or employee of the Agency who was a resident
of the United States (as described above) at the
time of employment, upon completion of three
years' continuous service abroad or as soon as
possible thereafter, or may so order after
completion of eighteen months' such service
without regard to the limitation contained in
section 203(f) of the Annual and Sick Leave Act
of 1951, as amended.)'.
Sec. 107. Section 4(5) of the Central
Intelligence Agency Act (50 U. S. C. 403e) is
amended by striking subsections (A) and (C) and
inserting in lieu thereof the following new
paragraphs (A) and (C):
"(A) in the event an officer or employee
of the Agency, or one of his dependents, requires
medical care, for illness or injury not the
result of vicious habits, intemperance, or
misconduct, while on assignment abroad in a
locality where there is no qualified person or
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hospital or clinic, pay the travel expenses of such
officer or employee by whatever means he shall
deem appropriate and without regard to the
Standardized Government Travel Regulations and
section 10 of the Act of March 3, 1933 (47 Stat. 1516;
5 U. S. C. 73b), to the nearest locality where a
suitable hospital or clinic exists and on his recovery
pay for the travel expenses of his return to his post
of duty. If the officer or employee is too ill to
travel unattended, the Director may also pay the
travel expenses of an attendant;
Sec. 4 (5)(C) in the event of illness or injury
requiring hospitalization of an officer or full-time
employee of the Agency, not the result of vicious
habits, intemperance, or misconduct on his part,
incurred in the line of duty while such person is
assigned abroad, pay for the cost of the treatment
of such illness or injury at a suitable hospital or
clinic;
facility to provide such care, pay the travel
expenses of such officer, employee, or
dependent by whatever means deemed appropriate
by the Agency, including the furnishing of trans-
portation, and without regard to the Standardized
Government Travel Regulations and section 10 of
the Act of March 3, 1933, as amended (60 Stat
808; 5 U.S. C. 73b), to the nearest locality where
suitable medical care can be obtained and on his
recovery pay for the travel expenses of his return
to his post of duty. If any such person is too ill
to travel unattended, or in the case of a dependent
too young to travel alone, the Agency may also
pay the round-trip travel expenses of an attendant
or attendants;"
"(C)(i) in the event of illness or injury
requiring hospitalization or similar treatment
incurred by an officer or employee of the Agency
while on assignment abroad, not the result of
vicious habits, intemperance, or misconduct on
his part, pay for the cost of treatment of such
illness or injury;
"(ii) in the event a dependent of an officer
or employee of the Agency who is assigned
abroad, incurs an illness or injury while such
dependent is located abroad, which requires
hospitalization or similar treatment, and which
is not the result of vicious habits, intemperance,
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EXISTING LAW THE BILL AS REPORTED
or misconduct on his part, pay for that portion
of the cost of treatment of each such illness or
injury that exceeds $ 35 up to a maximum limita-
tion of one hundred and twenty days of treatment
for each such illness or injury, except that such
maximum limitation shall not apply whenever the
Agency, on the basis of professional medical
advice, shall determine that such illness or
injury clearly is caused by the fact that such
dependent is or has been located abroad;".
Sec. 108. Section 4 of the Central Intelli-
gence Agency Act (50 U. S. C. 403e) is amended
by adding the following new paragraph:
11(8) provide appropriate orientation and
language training to members of family of
officers and employees of the Agency in anticipa-
tion of the assignment abroad of such officers
and employees, or while abroad. ".
National Security Act of 1947,
as amended, (50 U. S. C. 405)
Sec. 303(a). The Director of the Office of Civil Sec. 109. Section 5 of the Central Intelligence
and Defense Mobilization, the Director of Central Agency Act (50 U. S. C. 403f) is amended by adding
Intelligence, and the National Security Council, the following new paragraph:
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acting through its Executive Secretary, are
authorized to appoint such advisory committees
and to employ, consistent with other provisions
of this Act, such part-time advisory personnel as
they may deem necessary in carrying out their
respective functions and the functions of agencies
under their control. Persons holding other offices
or positions under the United States for which they
receive compensation, while serving as members
of such committees, shall receive no additional
compensation for such service. Other members
of such committees and other part-time advisory
personnel so employed may serve without compen-
sation or may receive compensation at a rate not to
exceed $50 for each day of service, as determined
by the appointing authority.
Central Intelligence Agency Act of
1949, as amended, (50 U. S. C. 403
a through j. )
"(f) Appoint advisory committees and
employ, notwithstanding any other provisions of
law, part-time advisory personnel necessary to
carry out the functions of the Agency. Persons
holding other offices or positions under the
United States for which they receive compensa-
tion, while serving as members of such
committees, shall receive no additional compensa-
tion for such service. Other members of such
committees and part-time advisory personnel
so employed may serve without compensation or
may receive compensation at rates determined
by the Director, not to exceed $100 per day for
the assignment or position. ".
Sec. 110. Section 5 of the Central Intelli-
gence Agency Act (50 U. S. C. 403f) is amended
by adding the following new paragraph:
"(g) Upon the termination of the assign-
ment of an employee appointed from another
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EXISTING LAW THE BILL AS REPORTED
Government agency without a break in service
for duty with the Agency for a specific period
of time agreed upon by both agencies, such
person will be entitled to reemployment in
such other Government agency in the position
occupied at the time of assignment, or in a
position of comparable salary, or, at the
volition of the other Government agency, to a
positionof higher salary. Upon reemployment,
the employee shall receive the within-grade
salary advancements and other salary adjust-
ments he would have been entitled to receive had
he remained in the position in which he was
employed prior to assignment to the Agency. ".
Sec. 111. Section 5 of the Central Intelli-
gence Agency Act (50 U. S. C. 403f) is amended
by adding the following new paragraph:
"(h) Settle and pay, whenever the Director
determines that payment will further the purposes
of this Act, without regard to any other provisions
of law and under such regulations as the Director
may prescribe, in an amount not exceeding
$10, 000, any claim against the United States for
loss of or damage to real or personal property
(including loss of occupancy or use thereof),
belonging to, or for personal injury or death of,
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Central Intelligence Agency Retire-
ment Act of 1964 for Certain
Employees, (50 U. S. C. 403 note.)
THE BILL AS REPORTED
any person not a citizen or resident of the
United States, where such claim arises
abroad out of the act or omission of any
Agency employee or out of the act or omission
of any person acting on behalf of the Agency
but only if such claim is presented in writing
to the Agency activity involved within one year
after it accrues. ".
Sec. 201. This title may be cited as the
"Central Intelligence Agency Retirement Act
Amendments of 1966. "
Sec. 202. The Central Intelligence Agency
Retirement Act of 1964 for Certain Employees,
(78 Stat. 1043; 50 U. S. C. 403 note) is amended
by striking subsection 204(b)(3) and inserting
the following in lieu thereof:
(3) "Child", for the purposes of section 221 "(3) 'Child', for the purposes of sections
and 232 of this Act, means an unmarried child, 221 and 232 of this Act, means an unmarried
including (i) an adopted child, and (ii) a step- child, including (i) an adopted child, and (ii) a
child or recognized natural child who received more stepchild or recognized natural child who lived
than one-half of his support from and lived with with the participant in a regular parent-child
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EXISTING LAW
the participant in a regular parent-child
relationship, under the age of eighteen years,
or such unmarried child regardless of age who
because of physical or mental disability
incurred before age eighteen is incapable. of
self-support or such unmarried child between
eighteen and twenty-one years of age who is a
student regularly pursuing a full-time course
of study or training in residence in a high
school, trade school, technical or vocational
institute, junior college, college, university,
or comparable recognized educational institution.
A child whose twenty-first birthday occurs
prior to July 1 or after August 31 of any
calendar year, and while he is regularly
pursuing such a course of study or training, shall
be deemed for the purposes of this paragraph
and section 221(e) of this Act to have attained the
age of twenty-one on the first day of July
following such birthday. A child who is a student
shall not be deemed to have ceased to be a
student during any interim between school years
if the interim does not exceed four months and
if he shows to the satisfaction of the Director
that he has a bona fide intention of continuing to
pursue a course of study or training in the same
or different school during the school semester (or
other period into which the school year is divided)
immediately following the interim.
THE BILL AS REPORTED
relationship, under the age of eighteen years,
or such unmarried child regardless of age who
because of physical or mental disability incurred
before age eighteen is incapable of self-support,
or such unmarried child between eighteen and
twenty-two years of age who is a student regularly
pursuing a full-time course of study or training in
residence in a high school, trade school, technical
or vocational institute, junior college, college,
university, or comparable recognized educational
institution. A child whose twenty-second birthday
occurs prior to July 1 or after August 31 of any
calendar year, and while he is regularly pursuing
such a course of study or training, shall be
deemed for the purposes of this paragraph and
section 221(e) of this Act to have attained the age
of twenty-two on the first day of July following
such birthday. A child who is a student shall
not be deemed to have ceased to be a student
during any interim between school years if the
interim does not exceed five months and if he
shows to the satisfaction of the Director that he
has a bona fide intention of continuing to pursue
a course of study or training in the same or
different school during the school semester (or
other period into which the school year is divided)
immediately following the interim. The term
'child', for purposes of section 241, shall include
an adopted child and a natural child, but shall not
include a stepchild. ".
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Sec. 221(b) At the time of retirement, any married
participant may elect to receive a reduced annuity and
to provide for an annuity payable to his wife or her
husband, commencing on the date following such
participant's death and terminating upon the death or
remarriage of such surviving wife or husband. The
annuity payable to the surviving wife or husband after
such participant's death shall be 55 per centum of the
amount of the participant's annuity computed as
prescribed in paragraph (a) of this section, up to the
full amount of such annuity specified by him as the base
for the survivor benefits. The annuity of the partici-
pant making such election shall be reduced by 2 1/2
per centum of any amount up to $3, 600 he specified as
the base for the.survivor benefit plus 10 per centum of
any amount over $3, 600 so specified.
Sec. 203. Section 221(b) of the Central
Intelligence Agency Retirement Act (50 U. S. C.
403 note) is amended by deleting the words
"or remarriage" from the first sentence, and
section 232(b) is amended by deleting the words
"or remarriage" from the second sentence.
Sec. 232. (b) If a participant, who has at least
five years of service credit toward retirement under
the system, excluding military or naval service that
is credited in accordance with the provisions of
section 251 or 252 (a)(2), dies before separation or
retirement from the Agency and is survived by a widow
or dependent widower, as defined in section 204, such
widow or dependent widower shall be entitled to an
annuity equal to 55 per centum of the annuity computed
in accordance with the provisions of section 221(a). The
annuity of such widow or dependent widower shall
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EXISTING LAW
commence on the date following death of the
participant and shall terminate upon death or
remarriage of the widow or dependent widower,
or upon the dependent widower's becoming
capable of self-support.
Sec. 221. (e) The annuity payable to a child
under paragraph (c) or (d) of this section shall
begin an the day after the participant dies, and
such annuity or any right thereto shall terminate
on the last day of the month before (1) his attaining
age eighteen unless incapable of self-support,
(2) his becoming capable of self-support after age
eighteen, (3) his marriage, or (4) his death, except
that the annuity of a child who is a student as
described in section 204(b)(3) of this Act shall
terminate on the last day of the month before (1)
his marriage, (2) his death, (3) his ceasing to be
such a student, or (4) his attaining age twenty-one.
THE BILL AS REPORTED
Sec. 204. Section 221(e) of the Central
Intelligence Agency Retirement Act (50 U. S. C.
403 note) is amended to read as follows:
"(e) The commencing date of an annuity
payable to a child under paragraph (c) or (d) of
this section, or (c) or (d) of section 232, shall be
deemed t
b
o
e the day after the annuitant or
participant dies, with payment beginning on that
day or beginning or resuming on the first day of
the month in which the child later becomes or
again becomes a student as described in section
204(b)(3), provided the lump-sum credit, if paid,
is returned to the fund. Such annuity shall
terminate on the last day of the month before (1)
the child's attaining age eighteen unless he is
then a student as described or incapable of self-
support, (2) his becoming capable of self-support
after attaining age eighteen unless he is then
.,such a student, (3) his attaining age twenty-two
if he is then such a student and not incapable of
self-support, (4) his ceasing to be such a student
after attaining age eighteen unles h '
s
e i s then
incapable of self-support, (5) his marriage, or (6)
his death, whichever first occurs. ".
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EXISTING LAW THE BILL AS REPORTED
Sec. 221. (f) Any unmarried participant retiring Sec. 205. Section 221 of the Central
under the provisions of this Act and found by the Intelligence Agency Retirement Act (50 U. S. C.
Director to be in good health may at the time of 403 note) is amended by deleting the last two
retirement elect a reduced annuity, in lieu of the sentences of subsection (f), and adding the
annuity as hereinbefore provided, and designate in following new paragraphs (g) and (h):
writing a person having an insurable interest (as
that term is used in section 9(h) of the Civil Service
Retirement Act (5 U. S. C. 2259(h))) in the participant
to receive an annuity after the participant's death.
The annuity payable to the participant making such
election shall be reduced by 10 per centum of an
annuity computed as provided in paragraph (a) of
this section, and by 5 per centum of an annuity so
computed for each full five years. the person
designated is younger than the participant, but such
total reduction shall not exceed 40 per centum. The
annuity of a survivor designated under this paragraph
shall be 55 per centum of the reduced annuity com-
puted as prescribed above. The annuity payable to a
beneficiary under the provisions of this paragraph
shall begin on the first day of the next month after
the participant dies. Upon the death of the surviving
beneficiary all payments shall cease and no further
annuity payments authorized under this paragraph
shall be due or payable.
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"(g) Except as otherwise provided, the
annuity of a participant shall commence on the
day after separation from the service, or on
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the`day after salary ceases. and the participant
meets the service and the age or disability
requirements for title thereto. The annuity
of a participant under section 234 shall commence
on the day after the occurrence of the event on
which payment thereof is based. An annuity
otherwise payable from the fund allowed on or
after date of enactment of this provision shall
commence on the day after the occurrence of
the event on which payment thereof is based.
"(h) An annuity payable from the fund on
or after date of enactment of this provision shall
terminate (1) in the case of a retired participant,
on the day death or any other terminating event
occurs, or (2) in the case of a survivor, on the
last day of the month before death or any other
terminating event occurs. ".
Sec. 206. Section 252 of the Central
Intelligence Agency Retirement Act (50 U. S. C.
403 note) is amended by deleting subsection (c)(1);
renumbering subsections (c)(2) and (c)(3) to
read (c)(3) and (c)(4); and inserting the following
new subsections (c)(1) and (c)(2):
Sec. 252. (c)(1) If an officer or employee "(c)(1) If an officer or employee under some
under some other Government retirement other Government retirement system becomes a
system becomes a participant in the system participant in the system by direct transfer, the
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by direct transfer, such officer or employee's
total contributions and deposits, including
interest accrued thereon, except voluntary con-
tributions, shall be transferred to the fund
effective as of the date such officer or employee
becomes a participant in the system. Each such
officer or employee shall be deemed to consent
to the transfer of such funds and such transfer
shall be a complete discharge and acquittance of
all claims and demands against the other Govern-
ment retirement fund on account of service
rendered prior to becoming a participant in the
system.
Government's contributions under such retire-
ment system on behalf of the officer or
employee shall be transferred to the fund and
such officer or employee's total contributions
and deposits, including interest accrued thereon,
except voluntary contributions, shall be
transferred to his credit in the fund effective
as of the date such officer or employee becomes
a participant in the system. Each such officer
or employee shall be deemed to consent to the
transfer of such funds and such transfer shall be
a complete discharge and acquittance of all
claims and demands against the other Govern-
ment retirement fund on account of service
rendered prior to becoming a participant in the
system.
"(c)(2) If a participant in the system
becomes an employee under another Govern-
ment retirement system by direct transfer to
employment covered by such system, the Govern-
ment's contributions to the fund on his behalf
may be transferred to the fund of the other
system and his total contributions and deposits,
including interest accrued thereon, except
voluntary contributions, may be transferred to his
credit in the fund of such other retirement system
at the request of the officer or employee effective
as of the day he becomes eligible to participate in-
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THE BILL AS REPORTED
such other retirement system. Each such
officer or employee in requesting such transfer
shall be deemed to consent to the transfer of
such funds and such transfer shall be a complete
discharge and acquittance of all claims and
demands against the fund on account of service
rendered prior to his becoming eligible for
participation in such other system.".
Sec. 207. Section 273 of the Central
Intelligence Agency Retirement Act (50 U. S. C.
403 note) is amended by deleting subsection (a);
renumbering subsection (b) to read (c); and
inserting the following new subsections (a) and
(b):
Sec. 273. (a) Notwithstanding any other provision
of law, any annuitant who has retired under this Act
and who is reemployed in the Federal Government
service in any appointive position either on a part-
time or full-time basis shall be entitled to receive
his annuity payable under this Act, but there shall
be deducted from his salary a sum equal to the
annuity allocable to the period of actual employment.
"(a) Notwithstanding any other provision
of law, any annuitant who has retired under this
Act and who is reemployed in the Federal
Government service in any appointive position
either on a part-time or full-time basis shall
be entitled to receive the salary of the position
in which he is serving plus so much of his
annuity payable under this Act which when
combined with such salary does not exceed
during any calendar year the basic salary such
officer or employee was entitled to receive on
the date of his retirement from the Agency.
Any such reemployed officer or employee who
receives salary during any calendar year in
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excess of the maximum amount which he may
be entitled to receive under this paragraph
shall be entitled to such salary in lieu of
benefits hereunder.
"(b) When any such annuitant is reemployed,
he shall notify the Director of Central Intelligence
of such reemployment and shall provide all
pertinent information relating thereto. ".
Sec. 208. Section 291 of the Central
Intelligence Agency Retirement Act (50 U. S. C.
403 note) is amended to read as follows:
Sec. 291. (a) On the basis of determinations
made by the Civil Service Commission pursuant
to section 18 of the Civil Service Retirement Act,
as amended, pertaining to per centum change in
the price index, the following adjustments shall
be made:
(1) Effective April 1, 1966, if the change in
the price index from 1964 to 1965 shall have
equaled a rise of at least 3 per centum, each
annuity payable from the fund which has a
commencing date earlier than January 2, 1965,
shall be increased by the per centum rise in the
price index adjusted to the nearest one-tenth of
1 per centum.
"Sec. 291. (a) On the basis of determina-
tions made by the Director pertaining to per
centum change in the price index, the following
adjustments shall be made:
"(1) Effective the first day of the third
month which begins after the date of enactment
of this amendment each annuity payable from
the fund which has a commencing date not
later than such effective date shall be increased
by (a) the per centum rise in the price index,
adjusted to the nearest one-tenth of 1 per centum,
determined by the Director on the basis of the
annual average price index for calendar year
1962 and the price index for the month latest
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(2) Effective April 1 of any year other than
1966 after the price index change shall have
equaled a rise of at least 3 per centum, each
annuity payable from the fund which has a
commencing date earlier than January 2 of the
preceding year shall be increased by the per
centum rise in the price index adjusted to the
nearest one-tenth of 1 per centum.
(b) Eligibility for an annuity increase under
this section shall be governed by the commencing
date of each annuity payable from the fund as of
the effective date of an increase, except as
follows:
(1) Effective from the date of the first
increase under this section, an annuity payable
from the fund to an annuitant's survivor (other
than a child entitled under section 221(c)), which
annuity commenced the day after the annuitant's
death, shall be increased as provided in sub-
section (a)(1) or (a)(2) if the commencing date of
annuity to the annuitant was earlier than January
2 of the year preceding the first increase.
(2) Effective from its commencing date, an
annuity payable from the fund to an annuitant's
survivor (other than a child entitled under section
221(c)), which annuity commences the day after
published on date of enactment of this amend-
ment, plus (b) 1 and 1/2 per centum. The
month used in determining the increase based
on the per centum rise in the price index under
this subsection shall be the base month for
determining the per centum change in the price
index until the next succeeding increase occurs.
"(2) Each month after the first increase
under this section, the Director shall determine
the per centum change in the price index.
Effective the first day of the third month which
begins after the price index shall have equaled
a rise of at least 3 per centum for three consecu-
tive months over the price index for the base
month, each annuity payable from the fund which
has a commencing date not later than such
effective date shall be increased by the per
centum rise in the price index (caluculated on
the highest level of the price index during the
three consecutive months) adjusted to the
nearest one-tenth of 1 per centum.
"(b) Eligibility for an annuity increase
under this section shall be governed by the
commencing date of each annuity payable from
the fund as of the effective date of an increase,
except as follows:
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the annuitant's death and after the effective date of
the first increase under this section, shall be =
increased by the total per centum increase the
annuitant was receiving under this section at death.
(3) For purposes of computing an annuity which
commences after the effective date of the first
increase under this section to a child under section
221(c), the items $600, $720, $1, 800, and $2,160
appearing in section 221(c) shall be increased by
the total per centum increase allowed and in force
under this section and, in case of a deceased
annuitant, the items 40 per centum and 50 per
centum appearing in section 221(c) shall be
increased by the total per centum increase allowed
and in force under this section to the annuitant at
death. Effective from the date of the first increase
under this section, the provisions of this paragraph
shall apply as if such first increase were in effect
with respect to computation of a child's annuity
under section 221(c) which commenced between
January 2 of the year preceding the first increase
and the effective date of the first increase.
(c) No increase in annuity provided by this -.-
section shall be computed on any additional annuity
purchased at retirement by voluntary contributions.
. (d) The monthly installment of annuity after
adjustment under this section shall be fixed at the
nearest dollar.
"(1) Effective from its commencing date,
an annuity payable from the fund to an annuitant's
survivor (other than a child entitled under
section 221(c)), which annuity commences the
day after annuitant's death and after the
effective date of the first increase under this
section, shall be increased by the total per
centum increase the annuitant was receiving
under this section at death.
"(2) For purposes of computing an annuity
which commences after the effective date of the
first increase under this section to a child under
section 221(c), the items $600, $720, $1, 800, and
$2,160 appearing in section 221(c) shall be
increased by the total per centum increase
allowed and in force under this section for
employee annuities, and, in the case of a
deceased annuitant, the items 40 per centum and
50 per centum appearing in section 221(c) shall
be increased by the total per centum increase
allowed and in force under this section to the
annuitant at death.
"(c) The term 'price index' shall mean
the Consumer Price Index (all items--United
States city average) published monthly by the
Bureau of Labor Statistics. The term 'base
month' shall mean the month for which the price
index showed a per centum rise forming the
basis for a cost-of-living annuity increase.
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EXISTING LAW THE BILL AS REPORTED
-20-
Federal Employees Pay Act of 1945,
as amended, (5 U. S. C. 902(b))
"(d) No increase in annuity provided
by this section shall be computed on any
additional annuity purchase at retirement by
voluntary contributions.
" (e) The monthly installment of annuity
after adjustment under this section shall be
fixed at the nearest dollar, except that such
installment shall after adjustment reflect an
increase of at least one dollar. ".
Sec. 301. Section 102(b) of the Federal
Employees Pay Act of 1945, as amended (5 U. S. C.
902(b)), relating to exemption from coverage
under the Act, is amended by striking out "and"
immediately preceding "7" therein and by
inserting before the period at the end thereof
"; and (8) officers and employees of the Central
Intelligence Agency. ".
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