FEDERAL RETIREMENT REFORM ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000200060001-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: June 14, 2010
• Sequence Number: 1
• Publication Date: November 7, 1985
• Content Type: OPEN SOURCE

Approved For Release 2010/06/14: CIA-RDP89-00066R000200060001-6
November 7, 1985
CONGRESSIONAL RECORD - SENATE S 15013
ma, Mr. Jenkins, Mr. Gephardt, Mr. Russo,
Mr. Duncan, Mr. Archer, Mr. Vander Jagt,
Mr. Crane, and Mr. Frenzel.
From the Committee on Appropriations:
Mr. Whitten, Mr. Boland. Mr. Natcher, Mr.
Smith of Iowa, Mr. Pursell, and Mr. Loef-
fler:
From the Committee on Rules: Mr.
Pepper, Mr. Moakley, Mr. Derrick, Mr. Bell-
enson, Mr. Frost, Mr. Latta, and Mr. Lott.
From the Committee on Government Op-
erations: Mr. Brooks, Mr. Fuqua, Mr.
Waxman. Mr. Synar, Mr. Horton, and Mr.
Kindness.
From the Committee on the Budget: Mr.
Gray of Pennsylvania, Mr. Downey of New
York. Mr. Miller of California, Mr. Leath of
Texas, Mr. Kemp, and Mr. Gradison.
Appointed as additional conferees: Mr.
Foley, Mr. Ford of Michigan. Mr. Obey, Mr.
Aspin. Mr. Mineta. Ms. Oakar, Mr. Panetta,
Mr. Fazio, Mr. Michel, Mr. Dickinson, Mr.
Cheney, Mr. Lewis of California, Mrs.
Martin of Illinois, and Mr. Mack.
Mr. STEVENS. Mr. President, this
has been cleared with the distin-
guished leader on the Democratic side
of the aisle. I move that the Senate
insist on its amendments and agree to
the conference requested by the House
and that the Chair be authorized to
appoint conferees on the part of the
Senate.
The motion was agreed to and the
Presiding Officer (Mr. WALLOP) ap-
pointed Mr. PACKWOOD, Mr. DoME ncr,
Mr. ROTH, Mr. DANFORTH, Mr. ARM-
STRONG, Mr. GRAMM, Mr. RuDMAN, Mr.
LONG, Mr. BENTSEN, Mr. CHILES, Mr.
LEVIN, Mr. BoREN, and Mr. HOLLINGS
conferees on the part of the Senate.
FEDERAL RETIREMENT REFORM
ACT
AMENDMENT NO. 976
(Purpose: To amend the Central Intelli-
gence Agency Retirement Act of 1964 for
Certain Employees to establish a new re-
tirement and disability plan for certain
employees of the Central Intelligence
Agency)
Mr. EAGLETON. Mr. President, I
have an amendment I send to the desk
and ask for Its immediate consider-
ation.
The PRESIDING OFFICER. The
amendment will be stated.
The assistant legislative clerk read
as follows:
The Senator from Missouri [Mr. EAGLE-
TON), for himself and Mr. STEVENS, proposes
an amendment numbered 978.
Immediately following title III, insert the
following:
TITLE IV-CENTRAL INTELLIGENCE AGENCY
RETIREMENT
REFERENCES
SEC. 401. The Central Intelligence Agency
Retirement Act of 1964 for Certain Employ-
ees (78 Stat. 1043; 50 U.S.C. 403 note) is
amended-
(1) in section 111. by striking out "When"
and inserting in lieu thereof "Except as oth-
erwise provided in section 302 of this Act,
when";
(2) by striking out "this Act" each place it
appears in title II except in sections 201 and
264, and Inserting in lieu thereof "this
title": and
(3) by inserting "under this title" after
"Payable from the Fund" each place it ap-
pears in title II.
CONTRIBUTIONS TO THE CENTRAL INTELLIGENCE
AGENCY RETIREMENT AND DISABILITY SYSTEM
SEC. 402. Section 211 of the Central Intel-
ligence Agency Retirement Act of 1964 for
Certain Employees (78 Stat. 1045; 50 U.S.C.
403 note) is amended-
(1) by inserting "Except as provided in
subsection (d)," before "7 percent" in the
first sentence of subsection (a): and
(2) by adding at the end thereof the fol-
lowing new subsection (d):
"(d)(1) In the case of a participant who
was a participant subject to this Act before
January 1, 1984, and whose service-
-(A) is employment for the purposes of
title II of the Social Security Act and chap-
ter 21 of the Internal Revenue Code of 1954,
and
"(B) is not creditable service for any pur-
pose under title III of this Act or chapter 84
of title 5, United States Code.
there shall be deducted and withheld from
the basic pay of the participant under this
subsection during any pay period only the
amount computed pursuant to paragraph
(2).
"(2) The amount deducted and withheld
from the basic pay of a participant during
any pay period pursuant to paragraph (1)
shall be the excess of-
"(A) the amount determined by multiply-
ing the percent applicable to tike participant
under subsection (a) by the basic pay pay-
able to the participant for such pay period,
over
"(B) the amount of the taxes deducted
and withheld from such basic pay under sec-
tion 3101(a) of the Internal Revenue Code
of 1954 for such pay period.".
O)FSET OF ANNUITY BY THE AMOUNT Or SOCIAL
SECURITY BENEFITS
SEC. 403. Section 221 of the Central Intel-
ligence Agency Retirement Act of 1964 for
Certain Employees (78 Stat. 1045; 50 U.S.C.
403 note) is amended by adding at the end
thereof the following new subsection:
"(pXl) Effective on the first day of the
month in which an annuitant, including a
survivor, becomes 62 years of age, the annu-
ity computed under the other subsections of
this section and payable to the annuitant
shall be reduced (but not below zero) by the
amount determined by multiplying the
amount of the old-age and survivors Insur-
ance benefits which the annuitant Is enti-
tled to receive under section 202 of the
Social Security Act for the such month, If
any, by a fraction-
"(A) the numerator of which Is the total
of the wages (within the meaning of section
209 of the Social Security Act) for service
which is referred to in paragraph (2) of this
subsection for years before the calendar
year in which such month occurs, and
"(B) the denominator of which is the total
of all wages (within the meaning of section
209 of the Social Security Act) and all self-
employment Income (within the meaning of
section 211(b) of the Social Security Act)-
"(I) of such annuitant, or
"(ii) in the case of a survivor, of the par-
ticipant on whose service the annuity is
based,
credited for years after 1936 and before the
calendar year in which such month occurs.
"(2) The service referred to in paragraph
(1XA) of this subsection is service which is
covered by amounts deducted and withheld
as provided in section 211(d), is service de-
scribed in subparagraphs (C) through (G) of
section 210(a)(5) of the Social Security Act,
and is taken into account for the purpose of
computing the annuity to which paragraph
(1) of this subsection applies.".
TREATMENT OF CERTAIN RECALL SERVICE
SEC. 404. Section 271 of the Central Intel-
ligence Agency Retirement Act of 1964 for
Certain Employees (78 Stat. 1052: 50 U.S.C.
403 note) is amended by adding at the end
thereof the following new subsection:
"(c) Subsection (b) shall not apply to an
annuitant who becomes subject to title III
of this Act by reason of recall service.".
CONFORMITY BETWEEN THE FErERAL RETIRE-
MENT SYSTEM AND THE CENTRAL INTF'_LI-
GENCE AGENCY PENSION SYSTEM
SEC. 405. Section 292 of the Central intel-
ligency Agency Retirement Act of 1344 for
Certain Employees (50 U.S.C. 403 note) is
amended by adding at the end thereof the
following new subsection:
"(c) The President shall maintain, nn'ler
the same conditions and in the same
manner as provided in subsections (a) and
(b). existing conformity between the Feder-
al Retirement System provided in chapt^r
84 of title 5. United States Code. and the
Central Intelligence Agency Pension System
provided in title Ill of this Act.".
CENTRAL INTELLIGENCE AGENCY PENSION
SYSTEM
SEC. 406. The Central Intelligence Agency
Retirement Act of 1964 for Certain Employ-
ees (78 Stat. 1043: 50 U.S.C. 403 note) is
amended by adding at the end thereof the
following-
"TITLE 111-CENTRAL INTELLIGENCE AGENCY
PENSION SYSTEM
"ESTABLISHMENT
SEC. 301. (a) There is hereby established a
Central Intelligence Agency Pension
System.
"(bXl) Except as otherwise specifically
provided In this title or any other provision
of law, all participants in the Central Intel-
ligence Agency Pension System shall be sub-
ject to the provisions of chapter 81 of title
5. United States Code, and shall be treated
in all respects as persons whose participa-
tion in the Federal Retirement System pro-
vided in that chapter Is required by section
8402 of such title.
"(2) Participants in the Central Intelli-
gence Agency Pension System may not
make an- election authorized by section
8418(c) of title 5. United States Code, and
shall not be entitled to any benefits under
chapter 84 of such title which result from
such an election.
"DEFINITIONS
"SEC. 303. As used in this title, unless oth-
erwise specified-
"(1) the term 'annuity' means the annuity
which is described in subchapter II of chap-
ter 84 of title 5, United States Code, and is
payable to a Pension System participant:
"(2) the term 'dynamic assumptions' has
the same meaning as provided in section
8401(9) of title 5, United States Code;
"(3) the term 'Fund' means the Central
Intelligence Agency Retirement and Disabil-
ity Fund maintained by the Director pursu-
ant to section 202;
"(4) the term 'normal cost' means the
entry-age normal cost of the provisions of
the System which relate to the Fund, com-
puted by the' Director in accordance with
generally accepted actuarial practice and
standards (using dynamic assumptions) and
expressed as a level percentage of aggregate
basic pay, and shall be used to value the
cost of the System for all purposes for
which the cost of the System is required to
be determined;
'(5) the term'Pension System participant'
means a person who participates in the Cen-
tral Intelligence Agency Pension System:
"(6) the term 'supplemental liability"
means the estimated excess of-
"(A) the actuarial present value of all
future benefits payable from the Fund
under this title, over
"(B) the sum of-
"(I) the actuarial present value of the
future contributions to be made on behalf
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S 15044 CONGRESSIONAL RECORD - SENATE
of participants pursuant to section "(2) The sums referred to in paragraph November 7, 19
305(b)(2)(A) of this Act and (1) telllgence Agency Pension System whk
"(ii) th
"
e balance in the Fund attributable a
(A) amounts which are determined by ment under chapter 84 ofrtitle 5, ma*
to the System on the date the supplemental the Director to be necessary to defray the States Code, the Director of such Office 4
liability is determined or to contributions normal cost of the benefits, other than dis- an administrator of benefits (as defined in
made under section 204(b) or 205 of the ability benefits, payable under this title to section 8441(1) of such title), would be a,
Federal n Te po aryrAdj stor Actl~of Contribu.
tio
97 Pe"Bl) System articipants; transferred to
Stat. 1106; 5 U.S.C. 8331 note); and the Fund b the Secretar of the Treasur pealabie to the blzrit Systems Protcri~
"(7) the term 'System' means the Central to amortize over 30 years the supplemental Board, to such Office, or to the Direct ;r
y y such Office.
Intelligence Agency Pe:,:aon System, liability of the System which is attributable
"TRANSITION PROVISIONS
PENSION SY~rE`d PARTICIPANTS to Pension System participants. as comput- "SEC. 309. The Director shall issue r. - ;uls
"Sec. 303. (a) Except for persons ezcludd ed at the end of each fiscal year beginning tions providing for the transition from the
by subsection) ), all officers and employees after September 30, 1987;^ and
of the ection' aof iice se service veer (C) the sums which are transferred by Di ab lity tSystem etogthe Central1,Intarli.
December nc , any n is employment for the the o Secretary r funds of the Treasury to the Fund
December r title 1. 1 II 983. the Sploy Security Act pose, Agency Pension System. For 1,s 4j2., appropriated to the epart- ment of Defense for the purpose of pays g and 8473 of title 5. United sections
and chapter 21 of the Internal Revenue the costs incurred during any year which lating to the Civil Service Retirement and
Code.re-
tiripants.
Code of 1954 shall be Pension System par- relate to the creditable military service of Disability System and contribution, depos
(b) Participants in the Centel Intelli? Pension System participa ns
pence Agency nts nrr ent and l Inthty (c) At least every 5 years, the Secretary disability pay computations, under credit. and
of the Treasury shall prepare periodic valshall be deemed t emed to refer under such system
System who were participants in such ations of the Central Intelligence Agency sthe hall nto rg like manner nt
system on or before December 31, 1933, and Pension System and shall advise the Direc- and Central Intelligence Agency Retirement
de-
who have not had a break in services in tor of (1) the normal cost of the System, and Disability System and contributions. excess of 1 year since that date, are not without regard to the cost of disability pay- posits. pay computations, service credit, and
disability
made Pension System participants by this ments, (2) the supplemental liability of the retirement thereunder.
section, without regard to whether they are System, and (3) the amounts necessary to fi-
subject to title 11 of the Social Security Act. nance the costs of the System "REFERENCES IN OTHER LAWS
"SPECIAL RULES RELATING TO THE ENTITLEMENT "THRIFT "SEC. the. ederanRe made t ystempin . "SEC. 306. OF SECTION 203 5MPLOFEZS To ANNUITY (a) T SAVINGS PLAN lion in the Federal Retirement System in
"SEC. 304. (a) Any Pension System partici- lion with the Executive Director of the Pd- sections 8113(c), 8475, 8704(5)(2), and
pant who is described in s203 and re- eral Retirement Thrift Investment Board, tion 2 e) of title 5, United States Code, sec-
tires voluntarily or mandatorily section cti under sec- may- and s section on 312 (b the Social the Octl
tion 102(c) of the National Security Act of "(1) maintain exclusive records relating to Revenue and a of 1954 shall f the Internal
1947 (61 Stat. 498: 50 U.S.C. 403(c)) or sec- Pension System participants' elections, con- refer oCode of
e Intelli-
on In the shant ral aemd lotion 233 or 235 of this Act under conditions tributions, and accounts under the Thrift gence cion System.".
authorizing an immediate annuity for par- Savings Plan provided Bnc
ticipants in the Central Intelligence Agency chapter 84 of title 5, United Sts es Code; tions accordingly.e succeeding title and seo-
Retirement and Disability System shall be and
entitled to an immediate annuity computed "(2) provide for, investments under the 1rp EAGths' m d President, the
under subsections (a)(2) ' (a)(3), and (c) of Thrift Savings Plan to be made and ac- purpose this amendment is t revise
section
section 5413 of title 5, United States Code. counted for by such Executive Director in the current CIA Retirement and Dis-
annuity shall not be subject to reduc- aggregate amounts for the Central Intelli- ability System to provide retirement
Lion under section 8414 of such title. gence Agency Pension System.
"(b) A Pension System participant who Is "(b) The Director may make the necessary that system provisions to the personnel covered by
entitled to an immediate annuity under sub- allocations of earnings, loss fi hired after embe, who were
section (a) shall be entitled to receive an an- ~? and charges
m bent hred aftDeober ro, 1983,
to individual. accounts of Pension System
nuity supplement while under 62 years of participants under the Thrift Savings Plan, Senator comparable n the provides
age. The annuity supplement shall be based -(c) The Executive Director of the Feder- Senator L orris amendment provides
on the total creditable service of the partici- al Retirement Thrift Investment Board may to new Foreign Service personnel
pant and shall be computed and increased in not exercise authority under subchapter III hired after that same date.
accordance with section 8413(b) of title 5, or VIII of chapter 84 of title 5, United I point out that when it was estab-
United States Code. States Code, in the case of the Central In. lished In 1964, the CIA system was
"(c)(1) Any Pension System participant telligence Agency Pension System to the patterned after the Foreign Service 203
retired extent
that
the
exerc underbthe lcond tions specified in sections provided In subsections Directora) andi(b).authority System. Furthermore, the proposed
233 and 235(a) and shall be retired under D are pr provisions are the l aw enforce- a
the conditions specified in section 235(b). "Sac. 307. The Director, instead of the me providing for Federal law
Each Pension System participant so retired Office of Personnel Management, may meet officers.'
shall receive benefits under this title. tract with an administrator of benefits (as NO. 979
"(2) For the purpose of this subsection- defined in section 8441(1) of title S. United (Purpose; ToAImprove the administration of
"(A) the term 'participant', as used in the States Code), for the purpose of administra- retirement benefits for officers and em-
sections referred to In paragraph (1), means tion of benefits under subchapter V of chap- ployees of the Central Intelligence
a Pension stem participant described in ter 84 of such title with respect to Pension Agency)
(io the term 'system', as used in section System participants
233, means the Central Inteluse Agency GENERA!' AND ADMINISTRATIVE PROVISIONS Mr. DURe an am ER. Mr. Presi-
n
nce System. "SEC. 308. (a) The Director shall adminis- dent. I have an Bits imm nt a the
"(d) Any Pension System participant de- ter the Central Intelligence Agency Pension desk and I ask for Its immediate con-
scribed in section 203 who is separated System except for matters (other than mat sideratlon
under the conditions specified In section ters to which section 306 of this Act applies) The PRESIDING OFFICER. Is this
2
34(a) shall be entitled to a deferred annu- relating to the Thrift Savings Plan provided an amendment to the amendment?
itY
it ac us under section 8 12Difecitl d5teUnited In subchapters III and VIII of chapter 84 Mr. DURENBERGER. This is an
Code. title 5. United States Code, and matters
that the separation was based in whole or In (other than matters to which section 307 of amendment to the amendment by the
part on disloyalty to the United States. this Act applies) relating to disability here- Senator from Missouri.
S?' 305. (a) All payments under sub-
chapters II, IV, and VII of chapter 84,of
title 5, United States Code, based on the
service shall be paid by the Director from
the Fund.
' (b)ll) All sums required to finance the
payments referred to in subsection (a) shall
be credited to the Fund.
fits under subchapter V of such chapter. The PRESIDING OFFICER. Is all
The Director sh
ll
a
, with respect to the Cen. time yielded back on the first amend-
tral Intelligence Agency Pension System, meet?
perform the functions and exercise the au- Mr. STEVENS. All time is yielded
thority vested in the Office of Personnel back.
Management or the Director of such Office
by such chapter 84, and may Issue regula- Mr. EAGLETON. We yield back our
tions for such purposes, time.
"(b) Section 201(c) shall apply to determi? The PRESIDING OFFICER. The
nations of the Director under the Central In. clerk will report.
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 S 15046
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CONGRESSIONAL RECORD - SENATE November 7, 1985
nature of this work is very exacting,
dangerous, and difficult. In short, it is
unlike any other work in government.
Mr. President, there is a great need
for a strong and effective human intel-
ligence service In today's international
environment. My service on the Select
Committee 'on Intelligence has made
me well aware of how much we depend
on the fine men and women of our in-
telligence community. Their responsi-
bilities are unique and their contribu-
tion is unparalleled. It is my determi-
nation that they, in turn, will be able
to depend on us. I urge that the
Senate support me in this effort and
adopt this amendment.
Mr. HOLLINGS. Mr. President, I
rise In support of the amendment of
the chairman of the Intelligence Com-
mittee.
The men and women who serve in
the Central Intelligence Agency are
some of the finest we have in public
service. They are first class in terms of
experience, expertise, and special
skills. Their responsibilities are diffi-
cult, unique, and often life-threaten-
ing. And, their successes are never
publicly acknowledged. They are truly
the front line of a "silent war" against
terrorism, subversion, and attacks
upon the United States and its allies.
The amendment before the Senate
does two important things: it allows
the CIA to administer its retirement
system in order to provide adequate
security of the names, addresses, and
occupations of its employees; and it in-
structs the Director of Central Intelli-
gence to review the existing CIA Re-
tirement and Disability System and
recommend any necessary expansions
and modifications.
Mr. President, our overseas intelli-
gence officers face hazards unknown
to the Foreign Service or law enforce-
ment personnel. They and their fami-
lies must lead their lives undercover,
never revealing their true mission to
friends or acquaintances. If their cover
is ever revealed their very safety and
lives are at risk. At this moment there
is a memorial at Langley for over 70
intelligence officers who have given
their lives in service to this country.
More names will be added as a result
of the Embassy bombing in Beirut and
other recent acts of terrorism. And, fi-
nally, most of these officers work two
,lobs-their cover employment and
their agency duties.
In short, the work of an intelligence
officer is very exacting,- difficult, and
dangerous. It is unlike any other work
in government. Yet the Government
cannot offer top salaries to this talent-
ed and highly skilled group of profes-
sionals. Instead, we have to largely
rely on their sense of duty, loyalty,
and idealism.
But we can do one think-we can
prevent their pension from deteriorat-
ing in the future, as the pending legis-
lation allows. That is what Senator
DURENBERGER and I intended to do
today. But we see which way the cur-
rent is running here and in the inter-
est of comity will revisit that issue in
the future. But our message is clear-
we intend to work on this issue next
year. We intend to do our best to
assure this cadre of professionals that
we understand and appreciate their
contribution.
Mr. President, this amendment rests
on the merits and should be passed. It
does not violate the spirit of this legis-
lation and it does not violate the spirit
of reform. I have been involved In civil
service pension reform for years and
will match my record against any in
this Chamber. I led the fight to elimi-
nate the "1 percent kicker" in 1976. I
led the fight to end the "look back"
provision in 1980. I led the fight to end
the "dual COLA's" in ?1981. I know
what good reform is and I also know
the political price we often have to
pay back home to get it enacted.
But let me tell you that the band-
wagon for reform in this legislation
should not run over good solid public
policy. Our intelligence officers de-
serve support now and in the future. I
urge my colleagues to enact this
amendment.
Mr. DURENBERGER. I believe that
this amendment has been cleared with
both the Senator from Missouri, the
proponent of the amendment it seeks
to amend, and our leader from Alaska.
The PRESIDING OFFICER. Do the
Senators yield back their time,
Mr. STEVENS. Mr. President, I have
no objection to the amendment to the
amendment or to the basic amend-
ment and urge their adoption. I yield
back the remainder of our time.
The PRESIDING OFFICER. All
time being yielded back, the question
is on the amendment of the Senator
from Minnesota.
The amendment (No. 979) was
agreed to.
The PRESIDING OFFICER. The
question is on agreeing to the amend-
ment of the Senator from Missouri, as
amended.
The amendment (No. 978) was
agreed to.
Mr. DURENBERGER. Mr. Presi-
dent, I move to reconsider the vote by
which the amendments were agreed
to.
Mr. STEVENS. I move to lay that
motion on the table.
The motion to lay on the table -was
agreed to.
AMENDMENT NO. 980
(Purpose: To amend the Foreign Service Act
of 1980 to reform the Foreign Service Re-
tirement and Disability System)
Mr. STEVENS. Mr. President, I send
to the desk an amendment on behalf
of the distinguished Senator from In-
diana [Mr. LUGAR] and ask for its im-
mediate consideration. -
The PRESIDING OFFICER. The
clerk will report.
The assistant legislative clerk read
as follows:
The Senator from Alaska [Mr. STEVENS],
for Mr. LUGAR, proposes an amendment
numbered 980.
Mr. STEVENS. Mr. President, I ask
unanimous consent that further read-
ing of the amendment be dispensed
with.
The PRESIDING OFFICER. With-
out objection, it is so ordered.
The amendment is as follows:
Immediately following title III, insert the
following:
TITLE IV-FOREIGN SERVICE
RETIREMENT
REDESIGNATION OF CERTAIN PROVISIONS OF THE
FOREIGN SERVICE ACT OF 1980
SEC. 401. (a) Chapter 8 of title I of the
Foreign Service Act of 1980 (94 Stat. 2102:
22 U.S.C. 4041 et seq.) is amended-
(1) by striking out the caption of such
chapter and inserting in lieu thereof the fol-
lowing:
"CHAPTER 8-FOREIGN SERVICE
RETIREMENT AND DISABILITY
"SUBCHAPTER I-FOREIGN SERVICE
RETIREMENT AND DISABILITY SYSTEM"
(2) by striking out "this chapter" each
place it appears and inserting in lieu thereof
"this subchapter"; and
(3) by inserting "under this subchapter"
after "payable from the Fund" each place it
appears.
(b)(1) Section 808(d) of such Act (94 Stat.
2110; 22 U.S.C. 4048(d)) is amended-
(A) by striking out "such subchapter"
each place it appears in the second and
third sentences and inserting in lieu thereof
"subchapter I of such chapter 81"; and
(B) by striking out "Act" each place it ap-
pears and inserting in lieu thereof "sub-
chapter".
(2) Section 808(e) of such Act (94 Stat.
2111; 22 U.S.C. 4048(e)) is amended by strik-
ing out "Act' each place it appears and in-
serting in lieu thereof "subchapter".
(c) Section 809(a) (94 Stat. 2111; 22 U.S.C.
.4049(a)) is amended by striking out "Act"
and inserting in lieu thereof "subchapter".
CONTRIBUTIONS TO THE FOREIGN SERVICE
RETIREMENT AND DISABILITY SYSTEM
SEC. 402. Section 805 of the Foreign Serv-
ice Act of 1980 (94 Stat. 2104: 22 U.S.C.
4045) is amended-
(1) by inserting "Except as provided in
subsection (g)." before "7 percent" in the
first sentence of subsection (a); and
(2) by adding at the end thereof the fol-
lowing new subsection (g):
"(gXl) In the case of an employee or
member of the Service who was a partici-
pant subject to this subchapter before Janu-
ary 1, 1984, and whose service-
"(A) is employment for the purposes of
title II of the Social Security Act and chap-
ter 21 of the Internal Revenue Code of 1954.
and
"(B) is not creditable service for any pur-
pose under subchapter II of this chapter or
chapter 84 of title 5, United States Code,
there shall be deducted and withheld from
the basic pay of the employee or member of
the Service under this subsection during
any pay period only the amount computed
pursuant to paragraph (2).
"(2) The amount deducted and withheld
from the basic pay of an employee or
member of the Service during any pay
period pursuant to paragraph (1) shall be
the excess of-
"(A) the amount determined by multiply-
ing the percent applicable to the employee
or member of the Service under subsection
(a) by the basic pay payable to the employ-
ee or member of the Service for such pay
period, over -
Approved For Release 2010/06/14: CIA-RDP89-00066R000200060001-6