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THIS ACT MAY BE CITED AS THE FEDERAL EMPLOYEES' RETIREMENT SYSTEM ACT OF 1986.

Document Type: 
CREST
Collection: 
General CIA Records
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP89-00066R000400090002-0
Release Decision: 
RIFPUB
Original Classification: 
K
Document Page Count: 
291
Document Creation Date: 
December 22, 2016
Document Release Date: 
December 28, 2010
Sequence Number: 
2
Case Number: 
Publication Date: 
May 15, 1986
Content Type: 
REGULATION
File: 
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PDF icon CIA-RDP89-00066R000400090002-0.pdf10.03 MB
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Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 PEA4 .CT l (: I'la yi L9ca AJ61,'7it,~ w,,/(L r M' nor `cl;IJuca~ [DISCUSSION DRAFT] May 15, 1986/ 8 p.m. 1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 2 (a) SHORT TITLE.--This Act may be cited as the Federal 3 Employees' Retirement System Act of 1986". 4 (b) TABLE OF CONTENTS.--The table of contents is as 5 follows: Sec. 1. Short title; table of contents. Sec. 2. Purposes. TITLE I--FEDERAL EMPLOYEES RETIREMENT SYSTEM Sec. 101. Establishment. Sec. 201. Treatment under Civil Service Retirement System of certain individuals excluded from Federal Employees Retirement System. Sec. 202. Non-applicability of Civil Service Retirement, System to individuals under Federal Employees Retirement System. Sec. 203. Pay for the Executive Director of the Federal Retirement Thrift Investment Board. Sec. 204. Alternative forms of annuities. Sec. 205. Retirement counseling. Sec. 206. Participation by certain employees and Members only in the Thrift Savings Plan. Sec. 207. Miscellaneous amendments. TITLE III--OTHER PROVISIONS RELATING TO THE FEDERAL EMPLOYEES RETIREMENT SYSTEM AND THE CIVIL SERVICE RETIREMENT SYSTEM Sec. 301. Elections. Sec. 302. Effect of an election under section 301 to become subject to the Federal Employees] Retirement System. If - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Sec. 303. Provisions relating to an election to become subject to chapter 83 subject to certain offsets relating to Social Security. Sec. 304. Amendments relating to Social Security. Sec. 305. Extension of Federal Employees Retirement Contribution Temporary Adjustment Act of 1983; refund of excess contributions. Sec. 306. Applicability to the United States Postal Service. Sec. 307. Use of normal-cost percentage Sec. 308. Retirement study. Sec. 309. Repeal of automatic transfer provision. Sec. 310. Disclosure of return information. Sec. 311. Initial appointments to the Federal Retirement Thrift Investment Board. Sec. 312. Plan for delayed contributions to the Thrift Savings Fund. TITLE IV--FOREIGN SERVICE RETIREMENT Sec. 401. Short title; references to Foreign Service Act of 1980. Sec. 402. Redesignation of certain provisions of the Foreign Service Act of 1980. Sec. 403. Definition of court. Sec. 404. Creditable service for purposes of subchapters I and II. Sec. 405. Contributions to the Foreign Service Retirement and Disability System. Sec. 406. Offset of annuity by the amount of social security Sec. 407. benefits. 18-month period to elect survivor annuity. Sec. 408. Alternate forms of annuities. Sec. 409. Treatment of certain recall service. Sec. 410. Reemployment.' Sec. 411. Comparability between the Federal Employees Sec. 412. Retirement System and the Foreign Service Pension System. Moderation of remarriage penalty. Sec. 413. Lump-sum payments. Sec. 414. Exclusion of participants in Foreign Service Sec. 415. Pension System from Foreign Service Retirement and Disability System. Foreign Service Pension System. Sec. 416. Table of contents. Sec. 417. Effective date. TITLE V--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND RELATED MATTERS 11 - .. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Sec. 501. References. Sec. 502. Contributions to the Central Intelligence Agency Retirement and Disability System. Sec. 503. Offset of annuity by the amount of social security benefits. Sec. 504. Thrift savings fund participation by participants in the Central Intelligence Agency Retirement and Disability System. Sec. 505. Alternative forms of annuities. Sec. 506. Participation in the Federal Employees Retirement System. Sec. 507. Special retirement accrual for other intelligence personnel. TITLE VI--MISCELLANEOUS PROVISIONS Sec. 601. Annuities for survivors of Tax Court and District of Columbia judges. TITLE VII--AUTHORIZATION OF APPROPRIATIONS; EFFECTIVE DATES Sec. 701. Authorization of appropriations for certain expenses of the Federal Retirement Thrift Investment Management System. Sec. 702. Effective dates. 1 SEC. 2. PURPOSES. 2 The purposes of this Act are-- 3 (1) to establish a Federal employees retirement plan 4 which is coordinated with title II of the Social Security 'S Act; 6 (2) to ensure a fully funded and financially sound 7 retirement benefits plan for Federal employees; 8 (3) to enhance portability of retirement assets 9 earned as an employee of the Federal Government; 10 (4) to provide options for Federal employees with 11 respect to retirement planning; 12 (5) to assist in building a quality career work force Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 4 1 in the Federal Government; 2 (6) to encourage Federal employees to increase 3 personal savings for retirement; and 4 (7) to extend financial protection from disability to 5 additional Federal employees and to increase such 6 protection for eligible Federal employees. TITLE I--FEDERAL EMPLOYEES RETIREMENT SYSTEM 8 SEC. 101. ESTABLISHMENT. 9 (a) IN GENERAL.--Title 5, United States Code, is amended 10 by inserting after chapter 83 the following new chapter: 11 - CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM Sec. 8401. Definitions. 8402. Federal Employees' Retirement System; exclusions. 8403. Relationship to the Social Security Act. 8410. Eligibility for annuity. 8411. Creditable service. 8412. Immediate retirement. 8413. Deferred retirement. 8414. Early retirement. 8415. Computation of basic annuity. 8416. Survivor reduction for a current spouse. 8417. Survivor reduction for a former spouse. 8418. Survivor elections; deposit; offsets. 8419. Survivor reductions; computation. 8420. Insurable interest reductions. 8420a. Alternative forms of annuities. 8421. Annuity supplement. 8421a. Reductions on account of earnings from work performed while entitled to an annuity supplement. 8422. Deductions from pay; contributions for military service. 8423. Government contributions. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 8424. Lump-sum benefits; designation of beneficiary; order of precedence. 8425. Mandatory separation. SUBCHAPTER III--THRIFT SAVINGS PLAN 843l. Definition. ..8432. Contributions. 8433. Benefits and election of benefits. 8434. Annuities: methods of payment; election; purchase. 1%8435. Protections for spouses and former spouses. 8436. Administrative provisions. 8437. Thrift Savings Fund. %%8438. Investment of Thrift Savings Fund. ?8439. Accounting and information. 8440. Tax treatment of the Thrift Savings Fund. SUBCHAPTER IV--SURVIVOR ANNUITIES 8441. Definitions. ?8442. Rights of a widow or widower. ?8443. Rights of a child. 8444. Rights of a named individual with an insurable interest. 8445. Rights of a former spouse. I ~ SUBCHAPTER V--DISABILITY BENEFITS 8451. Disability retirement. ?8452. Computation of disability annuity. 8453. Application. 8454. Medical examination. 8455. Recovery; restoration of earning capacity. 8456. Relationship to workers compensation. 8457. Military reserve technicians. ?8461. Authority of the Office of Personnel Management. 8462. Cost-of-living adjustments. 8463. Rate of benefits. ~~8464. Commencement and termination of annuities of employees and Members. 8465. Waiver, allotment, and assignment of benefits. 8466. Application for benefits. 8467. Court orders. ?8468. Annuities and pay on reemployment. 8469. Withholding of State income taxes. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ~1 8470. Exemption from legal process; recovery of payments. SUBCHAPTER VII--FEDERAL RETIREMENT THRIFT INVESTMENT MANAGEMENT SYSTEM 8471. Definitions. 8472. Federal Retirement Thrift Investment Board. 8473. Employee Thrift Advisory Council. 8474. Executive Director. 8475. Investment policies. ~~8476. Administrative provisions. 8477. Fiduciary responsibilities; liability and penalties. 8478. Bonding. 8479. Exculpatory provisions; insurance. 'SUBCHAPTER I--GENERAL PROVISIONS 2 58401. Definitions 3 For the purpose of this chapter-- 4 (1) the term account means an account established 5 and maintained under section 8439(a) of this title; 6 (2) the term annuitant means a former employee or 7 Member who, on the basis of that individuals service, 8 meets all requirements for title to an annuity under 9 subchapter II or V of this chapter and files claim 10 therefor; 11 (3) the term average pay means the largest annual 12 rate resulting from averaging an employees or Member s 13 rates of basic pay in effect over any 3 consecutive years 14 of service or, in the case of an annuity under this 15 chapter based on service of less than 3 years, over the 16 total service, with each rate weighted by the period it 17 was in effect; if - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 %(4) except as provided in subchapter III of this 2 chapter, the term 'basic pay' has the meaning given such 3 term by section 8331(3); 4 (5) the term Board means the Federal Retirement 5 Thrift Investment Board established by section 8472(a) of 6 this title; 7 (6) the term 'Civil Service Retirement and 8 Disability Fund or Fund means the Civil Service 9 Retirement and Disability Fund under section 8348; 10 .1 (7) the term 'court' means any court of any State, 11 the District of Columbia, the Commonwealth of Puerto 12 Rico, Guam, the Northern Mariana Islands, or the Virgin 13 Islands, and any Indian court; 14 (8) the term Director means the Director of the 15 Office of Personnel Management; 16 .. (9) the term 'dynamic assumptions' means economic 17 assumptions that are used in determining actuarial costs 18 and liabilities of a retirement system and in 19 anticipating the effects of long-term future-- (A) investment yields; 21 (B) increases in rates of basic pay; and (C) rates of price inflation; 23 % . % 1 (10) the term earnings, when used with respect to 24 the Thrift Savings Fund, means the amount of the gain 25 realized or yield received from the investment of sums in 11 - . _ Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ApprovedFor Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 such Fund; 2 (11) the term 'employee' means-- % I (A) an individual referred to in subparagraph 4 (A), (E), (F), (H), (I), or (J) of section 8331(1) of 5 this title; and 6 (B) a Congressional employee as defined in 7 section 2107 of this title, including a temporary 8 Congressional employee and an employee of the 9 Congressional Budget office; 10 any of whose civilian service after December 31, 1983, is 11 employment for the purposes of title II of the Social 12 Security Act and chapter 21 of the Internal Revenue Code 13 of 1954, except that such term does not include- (i) any individual referred to in-- 15 (I) clause (i), (v), (vi), or (ix) of 16 paragraph (1) of section 8331; 17 (II) clause (ii) of such paragraph (other than an employee of the United States Park Police, or the United States Secret Service, any of whose civilian service after December 31, 1983, is such employment); or I . (III) the undesignated material after the 23 last clause of such paragraph; or 24 - (ii) any individual excluded under section 25 8402(c) of this title; I - - - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (12) the term former spouse means a former spouse 2 of an individual-- 3 ? (A) if such individual performed at least 18 4 months of civilian service creditable under section 5 8411 as an employee or Member; and . '(B) if the former spouse was married to such 7 individual for at least 9 months; 8 (13) the term 'Executive Director' means the. 9 Executive Director appointed under section 8474(a); 10 11 (14) the term %firefighter' means-- 11 (A) an employee, the duties of whose position-- 12 ''(i) are primarily to perform work directly connected with the control and extinguishment of fires; and - (ii) are sufficiently rigorous that employment opportunities are required to be limited to young and physically vigorous individuals, as determined by the Director considering the recommendations of the employing agency; and 21 1%(B) an employee who is transferred directly to 22 a supervisory or administrative position after 23 performing duties described in subparagraph (A) for 24 at least 10 years; 25 (15) the term Government means the Federal if - - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 Government and Gallaudet College; 3 such term by section 8331(24); 11 (17) the term 'law enforcement officer' means-- (16) the term 'Indian court' has the meaning given (A) an employee, the duties of whose position-- (i) are primarily-- (I) the investigation, apprehension, or detention of individuals suspected or convicted of offenses against the criminal laws of the United States; or . I (II) the protection of officials of the United States against threats to personal safety; and 11 (ii) are sufficiently rigorous that employment opportunities are required to be limited to young and physically vigorous individuals, as determined by the Director considering the recommendations of the employing agency; %(B) an employee who is transferred directly to a supervisory or administrative position after performing duties described in subparagraph (A) for at least 10 years; and (C) an employee-- 25 ''(i) of the Bureau of Prisons or Federal Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 Prison Industries, Incorporated; Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I '(ii) of the Public Health Service assigned to the field service of the Bureau of Prisons or of the Federal Prison Industries, Incorporated; or 6 (iii) in the field service at Army or Navy 7 disciplinary barracks or at any other confinement 8 and rehabilitation facility operated by any of 9 the armed forces; 10 whose duties in connection with individuals in 11 detention suspected or convicted of offenses against 12 the criminal laws of the United States or of the 13 District of Columbia or offenses against the punitive 14 articles of the Uniform Code of Military Justice 15 (chapter 47 of title 10) require frequent direct 16 contact with these individuals in their detention and 17 are sufficiently rigorous that employment 18 opportunities are required to be limited to young and 19 physically vigorous individuals, as determined by the 20 head of the employing agency; 21 %% (18) the term 'loss', when used with respect to the 22 Thrift Savings Fund, means the amount of the loss 23 resulting from the investment of sums in such Fund; 24 - (19) the term 'lump-sum credit' means the 25 unrefunded amount consisting of-- n - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I % (A) retirement deductions made from the basic pay of an employee or Member under section 8422(a) of this title (or under section 204 of the Federal Employees Retirement Contribution Temporary Adjustment Act of 1983); (B) amounts deposited by an employee or Member under section 8422(e); and (C) interest on the deductions and deposits which, for any calendar year, shall be equal to the overall average yield to the Fund during the preceding fiscal year from all obligations purchased by the Secretary of the Treasury during such fiscal year under section 8348(c), (d), and (e), as determined by the Secretary; 15 but does not include interest-- 16 ''(i) if the service covered thereby aggregates 1 17 year or less; or 18 (ii) for a fractional part of a month in the 19 total service; 20 - (20) the term 'Member' has the same meaning as 21 provided in section 2106, except that such term does not 22 include an individual who irrevocably elects, by written 23 notice to the official by whom such individual is paid, 24 not to participate in the Federal Employees' Retirement 25 System; If - . Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 (21) the term net earnings means the excess of 2 earnings over losses; 3 %% (22) the term 'net losses' means the excess of 4 losses over earnings; 6 entry-age normal cost of the provisions of the System 7 which relate to the Fund, computed by the Office in 8 accordance with generally accepted actuarial practice and 9 standards (using dynamic assumptions) and expressed as a 10 level percentage of aggregate basic pay; 11 '(24) the term 'Office' means the Office of (23) the term normal-cost percentage' means the 12 Personnel Management; (25) the term price index has the same meaning as 14 provided in section 8331(15); 15 (26) the term service means service which is 16 creditable under section 8411; 17 - (27) the term 'supplemental liability' means the 18 estimated excess of-- 19 (A) the actuarial present value of all future 20 benefits payable from the Fund under this chapter 21 based on the service of current or former employees 22 or Members, over (B) the sum of-- I . (i) the actuarial present value of 25 deductions to be withheld from the future basic Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 14 pay of employees and Members currently subject to this chapter pursuant to section 8422; %% (ii) the actuarial present value of the future contributions to be made pursuant to section 8423(a) with respect to employees and Members currently subject to this chapter; (iii) the Fund balance as of the date the supplemental liability is determined, to the extent that such balance is attributable-- (I) to the System, or (II) to contributions made under the Federal Employees' Retirement Contribution Temporary Adjustment Act by or on behalf of an individual who became subject to the System; and (iv) any other appropriate amount, as determined by the Office in accordance with generally accepted actuarial practices and principles; (28) the term 'survivorI means an individual 21 entitled to an annuity under subchapter IV of this 22 chapter; 23 (29) the term 'System' means the Federal Employees' 24 Retirement System described in section 8402(a); 25 11 (30) the term 'military reserve technician' means a Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 15 1 member of one of the reserve components of the armed 2 forces specified in section 261(a) of title 10 who-- (A) is assigned to a civilian position as a 4 technician in the administration and training of such 5 reserve components or in the maintenance and repair 6 of supplies issued to such reserve components; and 7 (B) as a condition of employment in such 8 position, is required to be a member of one of such 9 reserve components serving in a specified military 10 grade; and 11 - (31) the term 'military service means honorable 12 active service-- 13'(A) in the armed forces; 14 (B) in the commissioned corps of the Public 15 Health Service after June 30, 1960; or ~I (C) in the commissioned corps of the National 17 Oceanic and Atmospheric Administration, or a 18 predecessor entity in function, after June 30, 1961; 19 but does not include service in the National Guard except 20 when ordered to active duty in the service of the United 21 States. 22 S8402. Federal Employees Retirement System; exclusions %% (a) The provisions of this chapter comprise the Federal 24 Employees' Retirement System. 25 (b) The provisions of this chapter shall not apply with n - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 respect to-- 3 type described in subparagraph (C), (D), (E), or (F) of 4 section 210(a)(5) of the Social Security Act continuously 5 since December 31, 1983 (determined in accordance with 6 the provisions of section 210(a)(5)(B) of the Social 7 Security Act, relating to continuity of employment); or 8 1. (2)(A) any employee or Member who has separated 9 from the service after-- 11 chapter 83 of this title, or subchapter I of chapter 12 8 of the Foreign Service Act of 1980; and 13 ' 11 (ii) having completed at least 5 years of Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 - (1) any individual who has performed service of a I % (i) having been subject to subchapter III of 14 civilian service creditable under subchapter III of 15 chapter 83 of this title, or at least 5 years of 16 civilian service creditable under subchapter I of the 17 Foreign Service Act of 1980 (determined without 18 regard to any deposit or redeposit requirement under 19 either such subchapter, or any requirement that the 20 individual become subject to either such subchapter 21 after performing the service involved); or (B) any employee having at least 5 years of 23 civilian service performed before January 1, 1987, 24 creditable under subchapter III of chapter 83 of this 25 title (determined without regard to any deposit or If -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 17 1 redeposit requirement under such subchapter, any 2 requirement that the individual become subject to such 3 subchapter after performing the service involved, or any 4 requirement that the individual give notice in writing to 5 the official by whom such individual is paid of such 6 individuals desire to become subject to such 7 subchapter); 8 except to the extent provided for under title III of the 9 Federal Employees Retirement System Act of 1986 pursuant to 10 an election under such title to become subject to this 11 chapter. 12 11(c)(1) The Office may exclude from the operation of 13 this chapter an employee or group of employees in or under an 14 Executive agency, the United States Postal Service, or the 15 Postal Rate Commission, whose employment is temporary or 16 intermittent, except an employee whose employment is 17 part-time career employment (as defined in section 3401(2). 18 (2) The Architect of the Capitol may exclude from the 19 operation of this chapter an employee under the Office of the 20 Architect of the Capitol whose employment is temporary or of 21 uncertain duration. 22 '(3) The Librarian of Congress may exclude from the 23 operation of this chapter an employee under the Library of 24 Congress whose employment is temporary or of uncertain 25 duration. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 (4) The Director or Acting Director of the Botanic 2 Garden may exclude from the operation of this chapter an 3 employee under the Botanic Garden whose employment is 4 temporary or of uncertain duration. 5 '~S8403. Relationship to the Social Security Act 6 Except as otherwise provided in this chapter, the 7 benefits payable under the System are in addition to the 8 benefits payable under the Social Security Act. 9 SUBCHAPTER II--BASIC ANNUITY 10 "S8410. Eligibility for annuity - Notwithstanding any other provision of this chapter, an 12 employee or Member must complete at least 5 years of civilian 13 service creditable under section 8411 in order to be eligible 14 for an annuity under this subchapter. 15 ~'58411. Creditable service I . (a)(1) The total service of an employee or Member is 17 the full years and twelfth parts thereof, excluding from the 18 aggregate the fractional part of a month, if any. 19 (2) Credit may not be allowed for a period of 20 separation from the service in excess of 3 calendar days. I I (b) For the purpose of this chapter, creditable service 22 of an employee or Member includes-- (1) employment as an employee, and any service as a 24 Member (including the period from the date of the 25 beginning of the term for which elected or appointed to Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 19 1 the date of taking office as a Member), after December 2 31, 1986; .1 (2) service with respect to which deductions and 4 withholdings under section 204(a)(1) of the Federal 5 Employees' Retirement Contribution Temporary Adjustment 6 Act of 1983 have been made; 7 (3) except as provided in subsection (f), any 8 civilian service (performed before January 1, 1989, other 9 than any service under paragraph (1) or (2)) which, but 10 for the amendments made by subsections (a)(4) and (b) of 11 section 202 of the Federal Employees' Retirement System 12 Act of 1986, would be creditable under subchapter III of 13 chapter 83 of this title (determined without regard to 14 any deposit or redeposit requirement under such 15 subchapter, any requirement that the individual become 16 subject to such subchapter after performing the service 17 involved, or any requirement that the individual give 18 notice in writing to the official by whom such individual 19 is paid of such individuals desire to become subject to 20 such subchapter);, and 21 ? (4) a period of service (other than any service 22 under any of the preceding provisions of this subsection 23 and other than any military service) that was creditable 24 under the Foreign Service Pension System described in 25 subchapter II of chapter 8 of the Foreign Service Act of if - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 20 1 1980, if the employee or Member waives credit for such 2 service under the Foreign Service Pension System and 3 makes a payment to the Fund equal to the amount that 4 would have been deducted from pay under section 8422(a) 5 had the employee been subject to this chapter during such 6 period of service (together with interest on such amount 7 computed under paragraphs (2) and (3) of section 8 8334(e)). 9 (c)(1) Except as provided in paragraph (2) or (3), an 10 employee or Member shall be allowed credit for-- (A) each period of military service performed 12 before January 1, 1957; and 13 (B) each period of military service performed after 14 December 31, 1956, and before the separation on which 15 title to annuity is based, if a deposit (including 16 interest, if any) is made with respect to such period in 17 accordance with section 8422(e). 18 I.(2) If an employee or Member is awarded retired pay 19 based on any period of military service, the service of the 20 employee or Member may not include credit for such period of 21 military service unless the retired pay is awarded-- (A) based on a service-connected disability-- 23 ''(i) incurred in combat with an enemy of the 24 United States; or 25 -(ii) caused by an instrumentality of war and Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 21 1 incurred in line of duty during a period of war as 2 defined by section 301 of title 38; or 3 (B) under chapter 67 of title 10. 4 ~1 (3) An employee or Member who has made a deposit under 5 section 8334(j) (or a similar prior provision of law) with 6 respect to a period of military service, and who has not 7 taken a refund of such deposit-- ~1 8 (A) shall be allowed credit for such service 9 without regard to the deposit requirement under paragraph 10 (1)(B); and 11 (B) shall be entitled, upon filing appropriate 12 application therefor with the Office, to a refund equal 13 to the difference between-- 14 ''(i) the amount deposited with respect to such 15 period under such section 8334(j) (or prior 16 provision), excluding interest; and 17 (ii) the amount which would otherwise have been 18 required with respect to such period under paragraph 19 (1)(B). '(d) Credit under this chapter shall be allowed for 21 leaves of absence without pay granted an employee while 22 performing military service, or while receiving benefits 23 under subchapter I of chapter 81. An employee or former 24 employee who returns to duty after a period of separation is 25 deemed, for the purpose of this subsection, to have been on Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 22 1 leave of absence without pay for that part of the period in 2 which that individual was receiving benefits under subchapter 3 I of chapter 81. Credit may not be allowed for so much of 4 other leaves of absence without pay as exceeds 6 months in 5 the aggregate in a calendar year. 6 ~1 (e) Credit shall be allowed for periods of approved 7 leave without pay granted an employee to serve as a full-time 8 officer or employee of an organization composed primarily of 9 employees (as defined by section 8331(1) or 8401(11)), 10 subject to the employee arranging to pay; through the 11 employees employing agency, within 60 days after 12 commencement of such leave without pay, amounts equal to the 13 retirement deductions and agency contributions which would be 14 applicable under sections 8422(a) and 8423(a), respectively, 15 if the employee were in pay status. If the election and all 16 payments provided by this subsection are not made, the 17 employee may not receive credit for the periods of leave 18 without pay, notwithstanding the third sentence of subsection 19 (d). (f)(1) An employee or Member who has received a refund 21 of retirement deductions under subchapter III of chapter 83 22 with respect to any service described in subsection (b)(3) 23 may not be allowed credit for such service under this chapter 24 unless such employee or Member deposits an amount equal to 25 1.3 percent of basic pay for such service, with interest. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 '% (2) An employee or Member may not be allowed credit 2 under this chapter for any service described in subsection 3 (b)(3) for which retirement deductions under subchapter III 4 of chapter 83 have not been made, unless such employee or 5 Member deposits an amount equal to 1.3 percent of basic pay 6 for such service, with interest. I % (3) Interest under paragraph (1) or (2) shall be 8 computed in accordance with paragraphs (2) and (3) of section 9 8334(e) and regulations prescribed by the Office. (4) For the purpose of survivor annuities, deposits 11 authorized by the preceding provisions of this subsection may 12 also be made by a survivor of an employee or Member. 58412. Immediate retirement 14 .1(a) An employee or Member who is separated from the 15 service after attaining the applicable minimum retirement age 16 under subsection (h) and completing 30 years of service is 17 entitled to an annuity. 1-8 (b) An employee or Member who is separated from the 19 service after becoming 60 years of age and completing 20 20 years of service is entitled to an annuity. 21 (c) An employee or Member who is separated from the 22 service after becoming 62 years of age and completing 5 years 23 of service is entitled to an annuity. . I (d) An employee who is separated from the service, 25 except by removal for cause on charges of misconduct or -if - - -- - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 delinquency-- 2 (1) after completing 25 years of service as a law 3 enforcement officer or firefighter, or any combination of 4 such service totaling at least 25 years, or 5 (2) after becoming 50 years of age and completing 20 6 years of service as a law enforcement officer or 7 firefighter, or any combination of such service totaling 8 at least 20 years, 9 is entitled to an annuity. 10 ~% (e) An employee who is separated from the service, 11 except by removal for cause on charges of misconduct or 12 delinquency-- 13 (1) after completing 25 years of service as an air 14 traffic controller, or 15 (2) after becoming 50 years of age and completing 16 20 years of service as an air traffic controller, 17 is entitled to an annuity. 18 1.(f) A Member who is separated from the service, except 19 by resignation or expulsion- -I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (1) after completing 25 years of service, or 21 (2) after becoming 50 years of age and completing 22 20 year's of service, 23 is entitled to an annuity. 24 .,(g) An employee or Member who is separated.from the 25 service after attaining the applicable minimum retirement age if - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 25 1 under subsection (h) and completing 10 years of service is 2 entitled to an annuity. This subsection shall not apply to an 3 employee or Member who is entitled to an annuity under any 4 other provision of this section. ~I (h)(1) The applicable minimum retirement age under this 6 subsection is-- 7 (A) for an individual whose date of birth is before 8 January 1, 1948, 55 years of age; 9 (B) for an individual whose date of birth is after 10 December 31, 1947, and before January 1, 1953, 55 years 11 of age plus the number of months in the age increase 12 factor determined under paragraph (2)(A); 13 (C) for an individual whose date of birth is after 14 December 31, 1952, and before January 1, 1965, 56 years 15 of age; 16 (D) for an individual whose date of birth is after 17 December 31, 1964, and before January 1, 1970, 56 years 18 of age plus the number of months in the age increase 19 factor determined under paragraph (2)(B); and 20 I%(E) for an individual whose date of birth is after 21 December 31, 1969, 57 years of age. 22 11(2)(A) For an individual whose date of birth occurs 23 during the 5-year period consisting of calendar years 1948 24 through 1952, the age increase factor shall be equal to two- 25 twelfths times the number of months in the period beginning If - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 26 1 with January 1948 and ending with December of the year in 2 which the date of birth occurs. I I (B) For an individual whose date of birth occurs during 4 the 5-year period consisting of calendar years 1965 through 5 1969, the age increase factor shall be equal to two-twelfths 6 times the number of months in the period beginning with 7 January 1965 and ending with December of the year in.which 8 the date of birth occurs. 9 *'S8413. Deferred retirement ~I (a) An employee or Member who is separated from the 11 service, or transferred to a position in which the employee 12 or Member does not continue subject to this chapter, after 13 completing 5-years, of service is entitled to an annuity 14 beginning at the age of 62 years. 15 (b)(1) An employee or Member who is separated from the 16 service, or transferred to a position in which the employee 17 or Member does not continue subject to this chapter, after 18 completing 10 years of service is entitled to an annuity 19 beginning on the date designated by the employee or Member in 20 a written election under this subsection. The date designated 21 under this subsection may not precede the date on which the 22 employee or Member attains the applicable minimum retirement 23 age under section 8412(h) and must precede the date on which 24 the employee or Member becomes 62 years of age. I . (2) The election of an annuity under this subsection Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 - 1 shall not be effective unless-- I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 %(A) it is made at such time and in such manner as 3 the Office shall by regulation prescribe; and I . (B) the employee or Member will not otherwise be 5 eligible to receive an annuity within 31 days after 6 filing the election. 7 1 1 (3) The election of an annuity under this subsection 8 extinguishes the right of the employee or Member to receive 9 any other annuity based on the service on which the annuity 10 under this subsection is based. 11 , ~S8414. Early retirement 12 (a)(1) A member of the Senior Executive Service who is 13 removed from the Senior Executive Service for less than fully 14 successful executive performance (as determined under 15 subchapter II of chapter 43 of this title) after completing 16 25 years of service, or after becoming 50 years of age and 17 completing 20 years of service, is entitled to an annuity. 18 I~(2) A member of the Defense Intelligence Senior 19 Executive Service or the Senior Cryptologic Executive Service 20 who is removed from such service for less than fully 21 successful executive performance after completing 25 years of 22 service, or after becoming 50 years of age and completing 20 23 years of service, is entitled to an annuity. 24 ''(b)(1) Except as provided in paragraphs (2) and (3), an 25 employee who-- II -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 28 1 (A) is separated from the service involuntarily, 2 except by removal for cause on charges of misconduct or 3 delinquency; or 1.(B) while serving in a geographic area designated 5 by the Director, is separated from the service 6 voluntarily during a period in which (as determined by 7 the Director)-- 8 '(i) the agency in which the employee is serving 9 is undergoing a major reorganization, a major 10 reduction in force, or a major transfer of function; 11 and 12 1. (ii) a significant percentage of the total 13 number of employees serving in such agency will be 14 separated or subject to an immediate reduction in the 15 rate of basic pay (without regard to subchapter VI of 16 chapter 53 of this title or comparable provisions); 17 after completing 25 years of service, or after becoming 50 1'8 years of age and completing 20 years of service, is entitled 19 to an annuity. (2) An employee under paragraph (1) who is separated as 21 described in subparagraph (A) of such paragraph is not 22 entitled to an annuity under this subsection if the employee 23 has declined a reasonable offer of another position in the 24 employee's agency for which the employee is qualified, and 25 the offered position is not lower than 2 grades (or pay Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 29 1 levels) below the employees grade (or pay level) and is 2 within the employees commuting area. 3 .1(3) Paragraph (1) shall not apply to an employee 4 entitled to an annuity under subsection (d) or (e) of section 5 8412. I % (c) A military reserve technician who is separated from 7 technician service, after becoming 50 years of age and 8 completing 25 years of service, by reason of ceasing to 9 satisfy the condition described in section 8401(30)(B) is 10 entitled to an annuity. 11 S8415. Computation of basic annuity (a) Except as otherwise provided in this section, the 13 annuity of an employee retiring under this subchapter is 1 14 percent of that individual's average pay multiplied by such 15 individuals- total service. 16 (b) The annuity of a Member, or former Member with 17 title to a Member annuity, retiring under this subchapter is 18 computed under subsection (a), except that if the individual 19 has had at least 5 years of service as a Member or 20 Congressional employee, or any combination thereof, so much 21 of the annuity as is computed with respect to either such 22 type of service (or a combination thereof), not exceeding a 23 total of 20 years, shall be computed by multiplying 1 7/10 24 percent of the individuals average pay by the years of such 25 service. if - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I % (c) The annuity of a Congressional employee, or former 2 Congressional employee, retiring under this subchapter is 3 computed under subsection (a), except that if the individual 4 has had at least 5 years of service as a Congressional 5 employee or Member, or any combination thereof, so much of 6 the annuity as is computed with respect to either such type 7 of service (or a combination thereof), not exceeding a total 8 of 20 years, shall be computed by multiplying 1 7/10 percent 9 of the individuals average pay by the years of such service. % I (d) The annuity of an employee retiring under 11 subsection (d) or (e) of section 8412 or under subsection (a) 12 or (b) of section'8425 is-- 1~ (1) 1 7/10 percent of that individual's average pay 14 multiplied by so much of such individuals total service 15 as does not exceed 20 years; plus 16 (2) 1 percent of that individuals average pay 17 multiplied by so much of such individuals total service 18 as exceeds 20 years. (e)(1) In computing an annuity under this subchapter 20 for an employee whose service includes service performed on a 21 part-time basis-- 22 '(A) the average pay of the employee, to the extent 23 that it includes pay for service performed in any 24 position on a part-time basis, shall be determined by 25 using the annual rate of basic pay that would be payable If -_ Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 for full-time service in the position; and I . (B) the benefit so computed shall then be 3 multiplied by a fraction equal to the ratio which the 4 employees actual service, as determined by prorating the 5 employees total service to reflect the service that was 6 performed on a part-time basis, bears to the total 7 service that would be creditable for the employee if all 8 of the service had been performed on a full-time basis. 1.(2) For the purpose of this subsection, employment on a 10 part-time basis shall not be considered to include employment 11 on a temporary or intermittent basis. (f)(1) The annuity of an employee or Member retiring 13 under section 8412(g) or 8413(b) is computed in accordance 14 with applicable provisions of this section, except that the 15 annuity shall be reduced by five-twelfths of 1 percent for 16 each full month by which the commencement date of the annuity 17 precedes the sixty-second anniversary of the birth of the 18 employee or Member. 19 - (2)(A) Paragraph (1) does not apply in the case of an 20 employee or Member retiring under section 8413(b) if the 21 employee or Member would satisfy the age and service 22 requirements for title to an annuity under section 8412(a), 23 (b), (d)(2), (e)(2), or (f)(2), determined as if the employee 24 or Member had, as of the date of separation, attained the age 25 specified in subparagraph (B). Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ''(B) A determination under subparagraph (A) shall be 2 based on how old the employee or Member will be as of the 3 date on which the annuity under section 8413(b) is to 4 commence. 5 (g)(1) In applying subsection (a) with respect to an 6 employee or Member under paragraph (2), the percentage 7 applied under such subsection shall be 1.1 percent, rather 8 than 1 percent. 9 (2) This subsection applies in the case of an employee 10 or Member who-- (A) retirees entitled to an annuity under section 12 8412; and 13 (B) at the time of the separation on which 14 entitlement to the annuity is based, is at least 62 years 15 of age and has completed at least 20 years of service. 16 ~*S8416. Survivor reduction for a current spouse ''(a)(1) If an employee or Member is married at the time 18 of retiring under this chapter, the reduction described in 19 section 8419(a) shall be made unless the employee or Member 20 and the spouse jointly waive, by written election, any right 21 which the spouse may have to a survivor annuity under section 22 8442 based on the service of such employee or Member. A 23 waiver under this paragraph shall be filed with the Office 24 under procedures prescribed by the Office. . 1 (2) Notwithstanding paragraph (1), an employee or Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 FERS 33 1 Member who is married at the time of retiring under this 2 chapter may waive the annuity for a surviving spouse without 3 the spouses consent if the employee or Member establishes to 4 the satisfaction of the office (in accordance with 5 regulations prescribed by the Office)-- 6 (A) that the spouses whereabouts cannot be 7 determined; or '~(B) that, due to exceptional circumstances, 9 requiring the employee or Member to seek the spouse s 10 consent would otherwise be inappropriate. 11 - (3) Except as provided in subsection (d), a waiver made 12 under this subsection shall be irrevocable. (b)(1) Upon remarriage, a retired employee or Member 14 who was married at the time of retirement (including an 15 employee or Member whose annuity was not reduced to provide a 16 survivor annuity for the employees or Members spouse or 17 former spouse as of the time of retirement) may irrevocably 18 elect during such marriage, in a signed writing received by 19 the Office within 2 years after such remarriage or, if later, 20 within 2 years after the death or remarriage of any former 21 spouse of such employee or Member who was entitled to a 22 survivor annuity under section 8445 (or of the last such 23 surviving former spouse, if there was more than one), a 24 reduction in the employee's or Member's annuity under section 25 8419(a) for the purpose of providing an annuity for such Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 employees or Member's spouse in the event such spouse 2 survives the employee or Member. I ~ (2) The election and reduction shall be effective the 4 first day of the second month after the election is received 5 by the Office, but not less than 9 months after the date of 6 the remarriage. 7 (3) An election to provide a survivor annuity to an 8 individual under this subsection-- 9 '(A) shall prospectively void any election made by 10 the employee or Member under section 8420 with respect to 11 such individual; or 12 %'(B) shall, if an election was made by the employee 13 or Member under section 8420 with respect to a different 14 individual, prospectively void such election if 15 appropriate written application is made by such employee 16 or Member at the time of making the election under this 17 subsection. 18 (4) Any election under this subsection made by an 19 employee or Member on behalf of an individual after the 20 retirement of such employee or Member shall not be effective 21 if-- (A) the employee or Member was married to such 23 individual at the time of retirement; and %(B) annuity rights of such individual based on the 25 service of such employee or Member were then waived under Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 subsection (a). 2 (c)(1) An employee or Member who is unmarried at the 3 time of retiring under this chapter and who later marries may 4 irrevocably elect, in a signed writing received by the Office 5 within 2 years after such employee or Member marries or, if 6 later, within 2 years after the death or remarriage of any 7 former spouse of such employee or Member who was entitled to 8 a survivor annuity under section 8445 (or of the last such 9 surviving former spouse, if there was more than one), a 10 reduction in the current annuity of the retired employee or 11 Member, in accordance with section 8419(a). 12 '1 (2) The election and reduction shall take effect the 13 first day of the first month beginning 9 months after the 14 date of marriage. Any such election to provide a survivor 15 annuity for an individual-- '~(A) shall prospectively void any election made by 17 the employee or Member under section 8420 with respect to 18 such individual; or 19 ~1(B) shall, if an election was made by the employee 20 or member under section 8420 with respect to a different 21 individual, prospectively void such election if 22 appropriate written application is made by such employee 23 or Member at the time of making the election under this 24 subsection. 25 '(d)(1) An employee or Member-- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 36 1 (A) who is married on the date of retiring under 2 this chapter, and .. (B) with respect to whose spouse a waiver under 4 subsection (a) has been made, 5 may, during the 18-month period beginning on such date, elect 6 to have a reduction made under section 8419 in order to 7 provide a survivor annuity under section 8442 for such 8 spouse. I % (2)(A) An election under this subsection shall not be 10 effective unless the amount described in subparagraph (B) is 11 deposited into the Fund before the expiration of the 18-month 12 period referred to in paragraph (1). ?1 (B) The amount to be deposited under this subparagraph 14 is equal to the sum of-- 15 (i) the difference (for the period between the date 16 on which the annuity of the former employee or Member 17 commences and the date on which reductions pursuant to 18 the election under this subsection commence) between the 19 amount paid to the former employee or Member from the 20 Fund under this chapter and the amount which would have 21 been paid if such election had been made at the time of 22 retirement; and 23 %1(ii) the costs associated with providing for the 24 election under this subsection. 25 The amount to be deposited under clause (i) shall include Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 interest, computed at the rate of 6 percent a year. 2 I % (3) An annuity which is reduced pursuant to an election 3 by a former employee or Member under this subsection shall be 4 reduced by the same percentage as was in effect under section 5 8419 as of the date of the employees or Members retirement. 6 1~ (4) Rights and obligations under this chapter resulting 7 from an election under this subsection shall be the same as 8 the rights and obligations which would have resulted had the 9 election been made at the time of retirement. i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (5) The Office shall inform each employee and Member 11 who is eligible to make an election under this subsection of 12 the right to make such election and the procedures and 13 deadlines applicable in making any such election. 14 "S8417. Survivor reduction for a former spouse ~I (a) If an employee or Member has a former spouse who is 16 entitled to a survivor annuity as provided in section 8445, 17 the reduction described in section 8419(a) shall be made. 18 (b)(1) An employee or Member who has a former spouse 19 may elect, under procedures prescribed by the Office, a 20 reduction in the annuity of the employee or Member under 21 section 8419(a) in order to provide a survivor annuity for 22 such former spouse under section 8445. I ~ (2) An election under this subsection shall be made at 24 the time of retirement or, if the marriage is dissolved after 25 the date of retirement, within 2 years after the date on - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 38 1 which the marriage of the former spouse to the employee or 2 Member is so dissolved. 3 (3) An election under this subsection-- 4 (A) shall not be effective to the extent that it-- 5 ''(i) conflicts with-- (I) any court order or decree referred to 7 in section 8445(a) which was issued before the 8 date of such election; or (II) any agreement referred to in such 10 section 8445(a) which was entered into before 11 such date; or 12 %% (ii) would cause the total of survivor 13 annuities payable under sections 8442 and 8445, 14 respectively, based on the service of the employee or 15 Member to exceed the amount which would be payable to 16 a widow or widower of such employee or Member under 17 such section 8442 (determined without regard to any 18 reduction to provide for an annuity under such 19 section 8445); and %(B) shall not be effective, in the case of an 21 employee or Member who is then married, unless it is made 22 with the spouses written consent. 23 The Office shall by regulation provide that subparagraph (B) 24 may be waived for either of the reasons set forth in section 25 8416(a)(2). -i, - - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 ""S8418. Survivor elections; deposit; offsets ''(a)(1) An individual who makes an election under 3 subsection (b) or (c) of section 8416 or section 8417(b) 4 which is required to be made within 2 years after the date of 5 a prescribed event shall deposit into the Fund, before the 6 expiration of the 2-year period involved, an amount 7 determined by the Office (as nearly as may be 8 administratively feasible) to reflect the amount by which the 9 annuity of such individual would have been reduced if the 10 election had been in effect since the date of retirement (or, 11 if later, and in the case of an election under such section 12 8416(b), since the date the previous reduction in the annuity 13 of such individual was terminated under paragraph (1) or (2) 14 of section 8419(b)), plus interest. '(2) Interest under paragraph (1) shall be computed at 16 the rate of 6 percent a year. I % (b) If the electing individual does not make the 18 deposit required under subsection (a), the Office shall 19 collect such amount by offset against such individual's 20 annuity, up to a maximum of 25 percent of the net annuity 21 otherwise payable, and the individual is deemed to consent to 22 such offset. 23 I%(c) Subsections (a) and (b) shall not apply if-- (1) the employee or Member makes an election under 25 section 8416(b) or (c) after having made an election 11 - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 under section 8420; and ~1 (2) the election under such section 8420 becomes 3 void under subsection (b)(3) or (c)(2) of such section 4 8416. 5 (d) The Office shall prescribe regulations under which 6 the survivor of an employee or member may make a deposit 7 under this section. 8 ~'S8419. Survivor reductions; computation 9 '% (a)(1) Except as provided in paragraph (2), the annuity 10 of an annuitant computed under section 8415, or under section 11 8452 (including subsection (a)(2) of such section, if 12 applicable), shall be reduced by 10 percent if a survivor 13 annuity,.or a combination of survivor annuities, under 14 section 8442 or 8445 (or both) are to be provided for. 15 I~(2)(A) If no survivor annuity under section 8442 is to 16 be provided for, but one or more survivor annuities under 17 section 8445 involving a total of less than the entirety of 18 the amount referred to in subsection (b)(2) of such section 19 are to be provided for, the annuity of the annuitant involved 20 (as computed under section 8415, or under section 8452 21 (including subsection (a)(2) of such section, if 22 applicable)), shall be reduced by an appropriate percentage 23 determined under subparagraph (B). 24 .1(B) The Office shall prescribe regulations. under which 25 an appropriate reduction under this paragraph, not to exceed Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 41 1 a total of 10 percent, shall be made. 2 ''(b)(1) Any reduction in an annuity for the purpose of 3 providing a survivor annuity for the current spouse of a 4 retired employee or Member shall be terminated for each full 5 month-- 6 ~(A) after the death of the spouse; or 7 (B) after the dissolution of the spouses marriage 8 to the employee or Member, except that an appropriate 9 reduction shall be made thereafter if the spouse is 10 entitled, as a former spouse, to a survivor annuity under 11 section 8445. 12 (2) Any reduction in an annuity for the purpose of 13 providing a survivor annuity for a former spouse of a retired 14 employee or Member shall be terminated for each full month 15 after the former spouse remarries before reaching age 55 or 16 dies. This reduction shall be replaced by appropriate 17 reductions under subsection (a) if the retired employee or 18 Member has one or more of the following: 19 ~(A) another former spouse who is entitled to a 20 survivor annuity under section 8445; 21 11(B) a current spouse to whom the employee or Member 22 was married at the time of retirement and with respect to 23 whom a survivor annuity was not waived under section 24 8416(a) (or, if waived, with respect to whom an election 25 under section 8416(d) has been made); or - - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 - i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 %% (C) a current spouse whom the employee or Member 2 married after retirement and with respect to whom an 3 election has been made under subsection (b) or (c) of 4 section 8416. 5 ~'S8420. Insurable interest reductions I I (a)(1) At the time of retiring under section 8412, 7 8413, or 8414, an employee or member who is found to be in 8 good health by the Office may elect to have such employee's 9 or Members annuity (as computed under section 8415) reduced 10 under paragraph (2) in order to provide an annuity under 11 section 8444 for an individual having an insurable interest 12 in the employee or Member. Such individual shall be 13 designated by the employee or Member in writing. I ~ (2) The annuity of the employee or Member making the 15 election is reduced by 10 percent, and by 5 percent for each 16 full 5 years the individual named is younger than the 17 retiring employee or Member, except that the total reduction 18 may not exceed 40 percent. 19 1%(3) An annuity which is reduced under this subsection 20 shall, effective the first day of the month following the 21 death of the individual named under this subsection, be 22 recomputed and paid as if the annuity had not been so 23 reduced. . I (b)(1) In the case of a married employee or. Member, an 25 election under this section on behalf of the spouse may be if - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 43 1 made only if any right of such spouse to a survivor annuity 2 based on the service of such employee or Member is waived in 3 accordance with section 8416(a). 4 - (2) Paragraph (1) does not apply in the case of an 5 employee or Member if such employee or Member has a former 6 spouse who would become entitled to an annuity under section 7 8445 as a survivor of such employee or Member. 8 "S8420a. Alternative forms of annuities 9 %%(a) The Office shall prescribe regulations under which 10 an employee or Member may, at the time of retiring under this 11 subchapter, elect annuity benefits under this section instead 12 of any other benefits under this subchapter, and any benefits 13 under subchapter IV of this chapter, based on the service of 14 the employee or Member. 15 I' (b) Subject to subsection (c), the Office shall by 16 regulation provide for such alternative forms of annuities as 17 the Office considers appropriate, except that among the 18 alternatives offered shall be-- ~I (1) an alternative which provides for-- 1.(A) payment of the lump-sum credit (excluding 21 interest) to the employee or Member; and 22 (B) payment of an annuity to the employee or 23 Member for life; and 24 (2) in the case of an employee or Member who is 25 married at the time of retirement, an alternative which Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 provides for-- 2 %% (A) payment of the lump-sum credit (excluding 3 interest) to the employee or Member; and 4 - (B) payment of an annuity to the employee or 5 Member for life, with a survivor annuity payable for 6 the life of a surviving spouse. 7 (c) Each alternative provided for under subsection (b) 8 shall, to the extent practicable, be designed such that the 9 present value of the benefits provided under such alternative 10 (including any lump-sum credit) is actuarially equivalent to 11 the sum of-- 12 (1) the present value of the annuity which would 13 otherwise be provided under this subchapter, as computed 14 under section 8415; and 15 (2.) the present value of the annuity supplement 16 which would otherwise be provided (if any) under section 17 8421. 18 I~(d) An employee or Member who, at the time of retiring 19 under this subchapter-- 20 1.(1) is married, shall be ineligible to make an 21 election under this section unless a waiver is made under 22 section 8416(a); or (2) has a former spouse, shall be ineligible to 24 make an election under this section if the former spouse 25 is entitled to benefits under section 8445 or 8467 (based Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 45 1 on the service of the employee or Member) under the terms 2 of a decree of divorce or annulment, or a court order or 3 court-approved property settlement incident to any such 4 decree, with respect to which the Office has been duly 5 notified. 6 (e) An employee or Member who is married at the time of 7 retiring under this subchapter and who makes an election 8 under this section may, during the 18-month period beginning 9 on the date of retirement, make the election provided for 10 under section 8416(d), subject to the deposit requirement 11 thereunder. 12 *~58421. Annuity supplement 13 I~(a)(1) Subject to paragraph (3), an individual shall, 14 if and while entitled to an annuity under subsection (a), 15 (b), (d), or (e) of section 8412, or under section 8414(c), 16 also be entitled to an annuity supplement under this section. 17 (2) Subject to paragraph (3), an individual shall, if 18 and while entitled to an annuity under section 8412(f), or 19 under subsection (a) or (b) of section 8414, also be entitled 20 to an annuity supplement under this section if such 21 individual is at least the applicable minimum retirement age 22 under section 8412(h). 23 (3)(A) An individual whose entitlement to an annuity 24 under section 8412 or 8414 does not commence before age 62 is 25 not entitled to an annuity supplement under this section. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 46 1 (B) An individual entitled to an annuity supplement 2 under this section ceases to be so entitled after the last 3 day of the month preceding the first month for which such 4 individual would, on proper application, be entitled to old- 5 age insurance benefits under title II of the Social Security 6 Act, but not later than the last day of the month in which 7 such individual attains age 62. 8 ''(b)(1) The amount of the annuity supplement of an 9 annuitant under this section for any month shall be equal to 10 the product of-- (A) an amount determined under paragraph (2), 12 multiplied by 13 (B) a fraction, as described in paragraph (3). %(2) The amount under this paragraph for an annuitant is 15 an amount equal to the old-age insurance benefit which would 16 be payable to such annuitant under title II of the Social 17 Security Act (without regard to sections 203, 215(a)(7), and 18 215(d)(5) of such Act) upon attaining age 62 and filing 19 application therefor, determined as if the annuitant had 20 attained such age and filed application therefor, and were a 21 fully insured individual (as defined in section 214(a) of 22 such Act), on January 1 of the year in which such annuitant's 23 entitlement to any payment under this section commences, 24 except that the reduction of such old-age insurance benefit 25 under section 202(q) of such Act shall be the maximum - - - - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 47 1 applicable for an individual born in the same year as the 2 annuitant. In computing the primary insurance amount under 3 section.215 of such Act for purposes of this paragraph, the 4 number of elapsed years (referred to in section 5 215(b)(2)(B)(iii) of such Act and used to compute the number .6 of benefit computation years) shall not include years 7 beginning with the year in which such annuitant s entitlement 8 to any payment under this section commences, and-- 9 (A) only basic pay for service performed (if any) 10 shall be taken into account in computing the total wages 11 and self-employment income of the annuitant for a benefit 12 computation year; 13 (B) for a benefit computation year which commences 14 after the date of the separation with respect to which 15 entitlement to the annuitants annuity under this 16 subchapter is based and before the date as of which such 17 annuitant is treated, under the preceding sentence, to 18 have attained age 62, the total wages and self-employment 19 income of such annuitant for such year shall be deemed to 20 be zero; and .1(C).for a benefit computation year after age 21 22 which precedes the separation referred to in subparagraph 23 (B), and during which the individual did not perform a 24 full year of service, the total wages and self-employment 25 income of such annuitant for such year shall be deemed to Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 have been an amount equal to the product of-- (i) the average total wages of all workers for 3 that year, multiplied by 4 (ii) a fraction-- I I (I) the numerator of which is the total 6 basic pay of the individual for service performed 7 in the first year thereafter in which such 8 individual performed a full year of service; and 9 11 (11) the denominator of which is the 10 average total wages of all workers for the year 11 referred to in subclause (I). ~1 (3) The fraction under this paragraph for any annuitant 13 is a fraction-- 14 - (A) the numerator of which is the annuitants total 15 years of'service (rounding a fraction to the nearest 16 whole number, with 1/2 being rounded to the next higher 17 number), not to exceed the number under subparagraph (B); 18 and 19 (B) the denominator of which is 40. 20 (4) For the purpose of this subsection-- 21 (A) the term 'benefit computation year has the 22 meaning provided in section 215(b)(2)(B)(i) of the Social 23 Security Act; 24 (B) the term 'average total wages of all workers', r 25 for a year, means the average of the total wages, as Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 49 1 defined and computed under section 215(b)(3)(A)(ii)(I) of 2 the Social Security Act for such year; and 3 %%(C) the term service' does not include military 4 service. 1%(c) An amount under this section shall, for purposes of 6 section.8467, be treated in the same way as an amount 7 computed under section 8415. 8 ''S8421a. Reductions on account of earnings from work 9 performed while entitled to an annuity supplement 10 (a) The amount of the annuity supplement to which an 11 individual is entitled under section 8421 for any month 12 (determined without regard to subsection (c) of such section) 13 shall be reduced by the amount of any excess earnings of such 14 individual which are required to be charged to such 15 supplement for such month, as determined under subsection 16 (b). I I (b) The amount of an individual -s excess earnings shall 18 be charged to months as follows: 19 ''(1)(A) There shall be charged to each month of a 20 year under subsection (a) an amount equal to the 21 individuals excess earnings (as determined under 22 paragraph (2) with respect to such year), divided by the 23 number of the individuals supplement entitlement months 24 for such year (as determined under paragraph (3)). 25 (B) Notwithstanding subparagraph (A), the amount Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 50 1 charged to a month under subsection (a) may not exceed 2 the amount of the annuity supplement to which the 3 individual is entitled under section 8421 for such month 4 (determined without regard to subsection (c) of such 5 section). 6 (2) The excess earnings based on which reductions under subsection (a) shall be made with respect to an 8 individual in a year-- 9 (A) shall be equal to 50 percent of so much of 10 such individuals earnings for the immediately 11 preceding year as exceeds the applicable exempt _ 12 amount for such preceding year; but 13 (B) may not exceed the total amount of the 14 annuity supplement payments to which such individual 15 was entitled for such preceding year under section 16 8421 (determined without regard to subsection (c) of 17 such section, and without regard to this section). 18 (3)(A) Subject to subparagraph (B), the number of 19 an individual s supplement entitlement months for a year 20 shall be 12. 21 (B) The number determined under subparagraph (A) 22 shall be reduced so as not to include any month after 23 which such individual ceases to be entitled to an annuity 24 supplement by reason of section 8421(a)(3)(B), relating r 25 to cessation of entitlement upon attaining age 62. 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 (4)(A) For purposes of this section, and except as 2 provided in subparagraph (B), the 'earnings and the 3 'applicable exempt amount of an individual shall be 4 determined in a manner consistent with applicable provisions of section .203 of the Social Security Act. (B) For purposes of this section-- ''(i) in determining the excess earnings of any individual, only earnings attributable to periods 9 during which such individual was entitled to an 10 annuity supplement under section 8421 shall be 11 considered; and ~(ii) any earnings attributable to a period 13 before attaining the applicable retirement age under 14 section 8412(h) shall not be considered in 15 determining the excess earnings of an individual who 16 retires under section 8412(d) or (e), or section 17 8414(c). 18 (c) If, after an individual ceases to be entitled to an 19 annuity supplement under section 8421 by reason of subsection 20 (a)(3)(B) of such section, any portion of the individual s 21 excess earnings remains outstanding, an amount not to exceed 22 25 percent of the amount otherwise payable to such individual 23 under this chapter for each month shall be deducted from such 24 monthly payment until the full amount of that outstanding 25 portion has been accounted for. To the extent practicable, Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 52 1 reductions under this subsection shall be made by a level 2 percentage. 3 ~1 (d) The Office shall prescribe regulations under which 4 this section shall be applied in the case of a reemployed 5 annuitant. 6 "S8422. Deductions from pay; contributions for military 7 service I . (a)(1) The employing agency shall deduct and withhold 9 from basic pay of each employee and Member a percentage of 10 basic pay determined in accordance with paragraph (2). . 1 (2) The applicable percentage under this subsection for 12 any pay period shall be-- I ~ (A) in the case of an employee (other than a law 14 enforcement officer, firefighter, or air traffic 15 controller) a percentage equal to-- ''(i) 7 percent, minus I ~(ii) the percentage then in effect under 18 section 3101(a) of the Internal Revenue Code of 1954 19 (relating to rate of tax for old-age, survivors, and 20 disability insurance); and '(B) in the case of a Member, law enforcement 22 officer, firefighter, air traffic controller, or 23 Congressional employee, a percentage equal to-- 24 ''(i) 7 1/2 percent, minus ~I (ii) the same percentage as would apply in the - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 53 1 case of an employee under subparagraph (A)(ii). 2 (b) Each employee or Member is deemed to consent and 3 agree to the deductions under subsection (a). Notwithstanding 4 any law or regulation affecting the pay of an employee or 5 Member, payment less such deductions is a full and complete 6 discharge and acquittance of all claims and demands for 7 regular services during the period covered by the payment, 8 except the right to any benefits under this subchapter, or 9 under subchapter IV or V of this chapter, based on the 10 service of the employee or Member. (c) The amounts deducted and withheld under this 12 section shall be deposited in the Treasury of the United 13 States to the credit of the Fund under such procedures as the 14 Comptroller General of the United States may prescribe. 15 I%(d) Under such regulations as the Office may prescribe, 16 amounts deducted under subsection (a) shall be entered on 17 individual retirement records. 18 ' (e)(1) Each employee or Member who has performed 19 military service before the date of the separation on which 20 the entitlement to any annuity under this subchapter, or 21 subchapter V of this chapter, is based may pay, in accordance 22 with such regulations as the Office shall issue, to the 23 agency by which the employee is employed, or, in the case of 24 a Member or a Congressional employee, to the Secretary of the 25 Senate or the Clerk of the House of Representatives, as Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 54 1 appropriate, an amount equal to 3 percent of the amount of 2 the basic pay paid under section 204 of title 37 to the 3 employee or Member for each period of military service after 4 December 1956. The amount of such payments shall be based on 5 such evidence of basic pay for military service as the 6 employee or Member may provide, or if the Office determines 7 sufficient evidence has not been so provided to adequately 8 determine basic pay for military service, such payment shall 9 be based on estimates of such basic pay provided to the 10 Office under paragraph (4). 11 I%(2) Any deposit made under paragraph (1) more than two 12 years after the later of-- 13 (A) January 1, 1987; or 14 TS(B) the date on which the employee or Member making 15 the deposit first becomes an employee or Member, 16 shall include interest on such amount computed and compounded 17 annually beginning on the date of the expiration of the two- 18 year period. The interest rate that is applicable in 19 computing interest in any year under this paragraph shall be 20 equal to the interest rate that is applicable for such year 21 under section 8334(e). 22 .'(3) Any payment received by an agency, the Secretary of 23 the Senate, or the Clerk of the House of Representatives 24 under this subsection shall be immediately remitted to the 25 Office for deposit in the Treasury of the United States to if - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 the credit of the Fund. I ~ (4) The Secretary of Defense, the Secretary of 3 Transportation, the Secretary of Commerce, or the Secretary 4 of Health and Human Services, as appropriate, shall furnish 5 such information to the Office as the Office may determine to 6 be necessary for the administration of this subsection. 7 '~S8423. Government contributions 8 (a)(1) Each employing agency having any employees or 9 Members subject to section 8422(a) shall contribute to the 10 Fund an amount equal to the sum of-- (A) the product of-- 12 ''(i) the normal-cost percentage, as determined 13 for employees (other than employees covered by 14 subparagraph (B)), multiplied by 15 (ii) the aggregate amount of basic pay payable 16 by the agency, for the period involved, to employees 17 (under clause (i)) who are within such agency; and (B) the product of-- I I (i) the normal-cost percentage, as determined 20 for Members, Congressional employees, law enforcement 21 officers, firefighters, air traffic controllers, 22 military reserve technicians, and employees under 23 sections 302 and 303 of the Central Intelligence 24 Agency Retirement Act of 1964 for Certain Employees, 25 multiplied by Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 56 1 (ii) the aggregate amount of basic pay payable 2 by the agency, for the period involved, to employees 3 and Members (under clause (i)) who are within such 4 agency. 1 1 (2) In determining any normal-cost percentage to be 6 applied under this subsection, amounts provided for under 7 section 8422 shall be taken into account. (3) Contributions under this subsection shall be paid-- 9 (A) in the case of law enforcement officers, 10 firefighters, air traffic controllers, military reserve 11 technicians, and other employees, from the appropriation 12 or fund used to pay such law enforcement officers, 13 firefighters, air traffic controllers, military reserve 14 technicians, or other employees, respectively; I ~ (B) in the case of elected officials, from an 16 appropriation or fund available for payment of other 17 salaries of the same office or establishment; and ' (C) in the case of employees of the legislative 19 branch paid by the Clerk of the House of Representatives, 20 from the contingent fund of the House. 21 ~1(4) A contribution to the Fund under this subsection 22 shall be deposited under such procedures as the Comptroller 23 General of the United States may prescribe. 24 (b)(1) The Office shall compute-- 25 ~% (A) the amount of the supplemental liability of the Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 57 1 Fund with respect to individuals other than those to whom 2 subparagraph (B) relates, and 3 (B) the amount of the supplemental liability of the 4 Fund with respect to current or former employees of the 5 United States Postal Service (and the Postal Rate 6 Commission) and their survivors; 7 as of the close of each fiscal year beginning after September 8 30, 1987. (2) The amount of any supplemental liability computed 10 under paragraph (1)(A) or (1)(B) shall be amortized in 30 11 equal annual installments, with interest computed at the rate 12 used in the most recent valuation of the System. 13 I ~(3) At the end of each fiscal year, the Office shall 14 notify-- 15 - (A) the Secretary of the Treasury of the amount of 16 the installment computed under this subsection for such 17 year with respect to individuals under paragraph (1)(A); 18 and 19 (B) the Postmaster General of the United States of 20 the amount of the installment computed under this 21 subsection for such year with respect to individuals 22 under paragraph (1)(B). 23 ~1(4)(A) Before closing the accounts for a fiscal year, 24 the Secretary of the Treasury shall credit to the Fund, as a 25 Government contribution, out of any money in the Treasury of Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 FERS 58 1 the United States not otherwise appropriated, the amount 2 under paragraph (3)(A) for such year. (B) Upon receiving notification under paragraph (3)(B), 4 the United States Postal Service shall pay the amount 5 specified in such notification to the Fund.. ~1 (5) For the purpose of carrying out paragraph (1) with 7 respect to any fiscal year, the Office may-- 8 '~(A) require the Board of Actuaries of the Civil 9 Service Retirement System to make actuarial 10 determinations and valuations, make recommendations, and 11 maintain records in the same manner as provided in 12 section 8347(f); and 13 (B) use the latest actuarial determinations and 14 valuations made by such Board of Actuaries. 15 ~1(c) Under regulations prescribed by the Office, the 16 head of an agency may request reconsideration of any amount 17 determined to be payable with respect to such agency under 18 subsection (a) or (b). Any such request shall be referred to 19 the Board of Actuaries of the Civil Service Retirement 20 System. The Board of Actuaries shall review the computations 21 of the Office and may make any adjustment with respect to any 22 such amount which the Board determines appropriate. A 23 determination by the Board of Actuaries under this subsection 24 shall be final. 25 '~S8424. Lump-sum benefits; designation of beneficiary; order Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 of precedence (a) Subject to subsection (b), an employee or Member - (1)(A) is separated from the service for at least 5 31 consecutive days; or 6 - (B) is transferred to a position in which the 7 individual is not subject to this chapter and remains in 8 such a position for at least 31 consecutive days; 11 (2) files an application with the Office for 10 payment of the lump-sum credit; . '(3) is not reemployed in a position in which the 12 individual is subject to this chapter at the time of 13 filing the application; and 1.(4) will not become eligible to receive an annuity 15 within 31 days after filing the application; 16 is entitled to be paid the lump-sum credit. Except as 17 provided in section 8420a, payment of the lump-sum credit to 18 an employee or Member voids all annuity rights under this 19 subchapter, and subchapters IV and V of this chapter, based 20 on the service on which the lump-sum credit is based. 21 ''(b)(1) Payment of the lump-sum credit under subsection 22 (a) -- I I (A) may be made only if any current spouse and any 24 former spouse of the employee or Member are notified of 25 the application by the employee or Member; and Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I '(B) in any case in which there is a former spouse, 2 shall be subject to the terms of a court decree of 3 divorce, annulment, or legal separation issued with 4 respect to such former spouse if-- I I (i) the decree expressly relates to any portion 6 of the lump-sum credit involved; and - (ii) payment of the lump-sum credit would 8 affect any right or interest of the former spouse 9 with respect to a survivor annuity under section 10 8445, or to any portion of an annuity under section 11 8467. 12 (2)(A) Notification of a spouse or former spouse under 13 this subsection shall be made in accordance with such 14 requirements as the Office shall by regulation prescribe. 15 '(B) Under the regulations, the Office may provide that 16 paragraph (1)(A) may be waived with respect to a spouse or 17 former spouse if the employee or Member establishes to the 18 satisfaction of the Office that the whereabouts of such 19 spouse or former spouse cannot be determined. (3) The Office shall prescribe regulations under which 21 this subsection shall be applied in any case in which the 22 Office receives two or more orders or decrees referred to in 23 paragraph (1)(B)(i). 24 %1(c) Under regulations prescribed by the Office, an 25 employee or Member, or a former employee or Member, may Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 designate one or more beneficiaries under this section. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 - (d) Lump-sum benefits authorized by subsections (e) 3 through (g) shall be paid to the individual or individuals 4 surviving the employee or Member and alive at the date title 5 to the payment arises in the following order of precedence, 6 and the payment bars recovery by any other individual: 7 First, to the beneficiary or beneficiaries 8 designated by the employee or Member in a signed and 9 witnessed writing received in the Office before the death 10 of such employee or Member. For this purpose, a 11 designation, change, or cancellation of beneficiary in a 12 will or other document not so executed and filed has no 13 force or effect. 14 Second, if there is no designated beneficiary, to 15 the widow or widower of the employee or Member. 16 11 Third, if none of the above, to the child or 17 children of the employee or Member and descendants of 18 deceased children by representation. . I Fourth, if none of the above, to the parents of the 20 employee or Member or the survivor of them. . I Fifth, if none of the above, to the duly appointed 22 executor or administrator of the estate of the employee 23 or Member. Sixth, if none of the above, to such other next of 25 kin of the employee or Member as the Office determines to 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 62 1 be entitled under the laws of the domicile of.the 2 employee or Member at the date of death of the employee 3 or Member. 4 For the purpose of this subsection, 'child' includes a 5 natural child and an adopted child, but does not include a 6 stepchild. 7 1 1 (e) If an employee or member, or former employee or 8 Member, dies-- I I (1) without a survivor, or 1 1 (2) with a survivor or survivors and the right of 11 all survivors under subchapter IV terminates before a 12 claim for survivor annuity under such subchapter is 13 filed, 14 the lump-sum credit shall be paid. 15 (f) If all annuity rights under this chapter (other 16 than under subchapter III of this chapter) based on the 17 service of a deceased employee or Member terminate before the 18 total annuity paid equals the lump-sum credit, the difference 19 shall be paid. 20 ? (g) If an annuitant dies, annuity accrued and unpaid 21 shall be paid. 22 (h) Annuity accrued and unpaid on the termination, 23 except by death, of the annuity of an annuitant or survivor 24 shall be paid to that individual. Annuity accrued and unpaid 25 on the death of a survivor shall be paid in the following Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 63 1 order of precedence, and the payment bars recovery by any 2 other person: I ~ First, to the duly appointed executor or 4 administrator of the estate of the survivor. - Second, if there is no executor or administrator, 6 payment may be made, after 30 days from the date of death 7 of the survivor, to such next of kin of the survivor as 8 the office determines to be entitled under the laws of 9 the domicile of the survivor at the date of death. 10 '~S8425. Mandatory separation 11 (a) An air traffic controller who is otherwise eligible 12 for immediate retirement under section 8412(e) shall be 13 separated from the service on the last day of the month in 14 which that air traffic controller becomes 56 years of age or 15 completes 20 years of service if then over that age. The 16 Secretary, under such regulations as the Secretary may 17 prescribe, may exempt a controller having exceptional skills 18 and experience as a controller from the automatic separation 19 provisions of this subsection until that controller becomes 20 61 years of age. The Secretary shall notify the controller in 21 writing of the date of separation at least 60 days before 22 that date. Action to separate the controller is not 23 effective, without the consent of the controller, until the 24 last day of the month in which the 60-day notice expires. 25 ~% (b) A law enforcement officer or firefighter who is Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 64 1 otherwise eligible for immediate retirement under section 2 8412(d) shall be separated from the service on the last day 3 of the month in which that law enforcement officer or 4 firefighter becomes 55 years of age or completes 20 years of 5 service if then over that age. If the head of the agency 6 judges that the public interest so requires, that agency head 7 may exempt such an employee from automatic separation under 8 this subsection until that employee becomes 60 years of age. 9 The employing office shall notify the employee in writing of 10 the date of separation at least 60 days before that date. 11 Action to separate the employee is not effective, without the 12 consent of the employee, until the last day of the month in 13 which the 60-day notice expires. 14 (c) The President, by Executive order, may exempt an 15 employee from automatic separation under this section if the 16 President determines the public interest so requires. 17 SUBCHAPTER III--THRIFT SAVINGS PLAN 18 ? S 8431. Definition 19 ~1Notwithstanding section 8401 of this title, for the 20 purpose of this subchapter, the term basic pay, when used 21 with respect to an employee or Member, means the basic pay of 22 the employee or Member-established pursuant to law, without 23 regard to any provision of law (except sections 5308 and 24 5382(b) of this title) limiting the rate of pay actually 25 payable in any pay period (including any provision of law ii Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 restricting the use of appropriated funds). 2 ~~S 8432. Contributions 3 1 1 (a) An employee or member may contribute to the Thrift 4 Savings Fund in any pay period, pursuant to an election under 5 subsection (b)(1), an amount not to exceed 10 percent of such 6 individuals basic pay for such period. Contributions made 7 under this subsection during any 6-month period for which an 8 election period is provided under subsection (b)(1) shall be 9 made each pay period during such 6-month period pursuant to a 10 program of regular contributions provided in regulations 11 prescribed by the Executive Director. 12 ''(b)(1)(A) The Executive Director shall prescribe 13 regulations under which employees and Members shall be 14 afforded a reasonable period every 6 months to elect to make 15 contributions under subsection (a), to modify the amount to 16 be contributed under such subsection, or to terminate such 17 contributions. An election to make such contributions shall 18 remain in effect until modified or terminated. - (B) The amount to be contributed pursuant to an 20 election under subparagraph (A) shall be the percentage of 21 basic pay or amount designated by the employee or Member. 22 - (2) Under the regulations-- 23 (A) an employee or Member who has not previously 24 been eligible to make an election under this subsection 25 shall not become so eligible until the second period Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 66 1 (described in paragraph (1)) beginning after the date of 2 commencing service as an employee or Member; 3 %, (B) an employee or Member whose appointment or 4 election to a position or office in the Federal 5 Government follows a previous period of service during 6 which that individual met the requirements of 7 subparagraph (A) shall be eligible to make an election 8 under this subsection notwithstanding any period of 9 separation; 10 (C) an employee or Member who elects under 11 subparagraph (D) to terminate contributions shall not 12 again become eligible to make an election under this 13 subsection until the second period (described in 14 paragraph (1)) commencing after the election to 15 terminate; and 16 (D) an election to terminate may be made under this 17 subparagraph at any time other than during a period 18 afforded under paragraph (1). 19 I.(3) Notwithstanding paragraph (2)(A), an employee or 20 Member who elects to become subject to this chapter under 21 section 301 of the Federal Employees' Retirement System Act 22 of 1986 may make the first election for the purpose of 23 subsection (a) during the period prescribed for such purpose 24 by the Executive Director. The period prescribed by the 25 Executive Director shall commence on the date on which the If - - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 67 1 employee or Member makes the election to become subject to 2 this chapter. 3 '(c)(1) At the end of the pay period that includes the 4 first date on which an employee or Member may make 5 contributions under subsection (a) (without regard to whether 6 the employee or Member has elected to make such contributions 7 during such pay period), and at the end of each succeeding 8 pay period, the employing agency shall contribute to the 9 Thrift Savings Fund for the benefit of such employee or 10 Member the amount equal to 1 percent of the basic pay of such 11 employee or Member for such pay period. 12 I~(2)(A) In addition to contributions made under 13 paragraph (1), the employing agency of an employee or Member 14 who contributes to the Thrift Savings Fund under subsection 15 (a) for any pay period shall make a contribution to the 16 Thrift Savings Fund for the benefit of such employee or 17 Member. The employing agencys contribution shall be made at 18 the end of such pay period. 19 11 (B) The amount contributed under subparagraph (A) by an 20 employing agency with respect to a contribution of an 21 employee or Member during any pay period shall be the amount 22 equal to the sum of-- (i) such portion of the total amount of the 24 employee's or Member's contribution as does not exceed 3 25 percent of such employees or Members basic pay for such Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 FERS 1 period; and 2 (ii) one-half of such portion of the amount of the 3 employees or Members contribution as exceeds 3 percent, 4 but does not exceed 5 percent, of such employees or 5 Members basic pay for such pay period. I I (3)(A) There shall be contributed to the Thrift Savings 7 Fund on behalf of each employee or Member described in 8 subparagraph (B) the amount determined under subparagraph 9 (C). 10 (B) An employee or Member referred to in subparagraph 11 (A) is an employee or Member who-- 12 (i) is an employee or Member on January 1, 1987; 13 (ii) has creditable service described in section 14 8411(b)(2) of this title; and 15 (iii) has not received a refund of the amount of 16 the retirement deductions made with respect to such 17 service under section 204 of the Federal Employees' 18 Retirement Contribution Temporary Adjustment Act of 1983. 19 11 (C) The amount referred to in subparagraph (A) in the 20 case of an employee or Member is equal to the sum of-- 21 (i) 1 percent of the total basic pay paid to such 22 employee or Member for service described in section 23 8411(b)(2) of this title; and (ii) interest on such amount computed with respect 25 to such service in the manner provided in paragraphs (2) Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 and (3) of section 8334(e) of this title. 2 (D) The Secretary of the Treasury shall credit to the 3 Thrift Savings Fund, out of any sums in the Treasury not 4 otherwise appropriated, the amounts determined by the 5 Director to be necessary to carry out this paragraph. 6 1 1 (d) Notwithstanding any other provision of this 7 section, no contribution may be made under this section for 8 any year to the extent that such contribution, when added to 9 prior contributions for such year, exceeds any limitation 10 under section 415 of the Internal Revenue Code of 1954. 11 ~I(e) The sums required to be contributed to the Thrift 12 Savings Fund by an employing agency under subsection (c) for 13 the benefit of an employee or Member shall be paid from the 14 appropriation or fund available to such agency for payment of 15 salaries of the employees or Members office or 16 establishment. When an employee or Member in the legislative 17 branch is paid by the Clerk of the House of Representatives, 18 the Clerk may pay from the contingent fund of the House of 19 Representatives the contribution that otherwise would be 20 contributed from the appropriation or fund used to pay the 21 employee or Member. i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (f) Amounts contributed by an employee or Member under 23 subsection (a) and amounts contributed with respect to such 24 employee or Member under subsection (c) shall be'deposited in 25 the Thrift Savings Fund to the credit of that employee's or 11 -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 70 1 Members account in accordance with such procedures as the 2 Comptroller General of the United States may prescribe in 3 regulations. 4 ''(g)(1) Except as provided in paragraphs (2) and (3), 5 all contributions made under this section shall be fully 6 nonforfeitable when made. 7 '(2) Contributions made for the benefit of an employee 8 under subsection (c)(1) and all earnings attributable to such 9 contributions shall be forfeited if the employee separates 10 from Government employment before completing-- (A) 2 years of civilian service in the case of an 12 employee who, at the time of separation, is serving in-- - (i) a position in the Senior Executive Service 14 as a noncareer appointee (as defined in section 15 3132(a)(7) of this title); 16 - (ii) a position listed in section 5312, 5313, 17 5314, 5315, or 5316 of this title or a position 18 placed in level IV or V of the Executive Schedule 19 under section 5317 of this title; or ''(iii) a position in the Executive branch which 21 is excepted from the competitive service by the 22 Office by reason of the confidential and 23 policy-determining character of the position; or 24 (B) 3 years of civilian service in the-case of an 25 employee who is not serving in a position described in if - - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 subparagraph (A) at the time of separation. I ~ (3) Contributions made for the benefit of a member 3 under subsection (c)(1) and all earnings attributable to such 4 contributions shall be forfeited if the Member separates from 5 Government employment before completing 2 years of civilian 6 service. 7 ~(h) No transfers or contributions may be made to the Thrift Savings Fund except as provided in this section 8351 of this title. chapter or 10 ? S 8433. Benefits and election of benefits 11 (a) An employee or Member who separates from Government 12 employment is entitled to the amount of the balance in the .13 employee s or Members account (except for the portion of 14 such amount forfeited under section 8432(g) of this title, if 15 any) as provided in this section. I ~ (b) Subject to section 8435 of this title, any employee 17 or Member who separates from Government employment entitled 18 to an immediate annuity under subchapter II of this chapter, 19 any employee or Member who separates from Government 20 employment entitled to benefits under subchapter I of chapter 21 81 of this title, and any employee or Member who is entitled 22 to receive disability benefits under subchapter V of this 23 chapter is entitled and may elect-- (1) to receive an immediate annuity from the Thrift 25 Savings Fund; Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ~1 (2) to defer the commencement of the payment of an 2 annuity from the Thrift Savings Fund until such date as 3 the employee or Member specifies, but not later than 4 April 1 of the year following the year in which the 5 employee or Member becomes 70 1/2 years of age; 6 1%(3) to withdraw the amount of the balance in the 7 employee's or Member's account in the Thrift Savings Fund 8 in one or more substantially equal payments to be made 9 not less frequently than annually and to commence before 10 April 1 of the year following the year in which the 11 employee or Member becomes 70 1/2 years of age; or (4) to transfer the amount of the balance in the 13 employee's or Members account to an eligible retirement 14 plan as provided in subsection (e). I ~ (c) Subject to section 8435 of this title, any employee 16 or Member who separates from Government employment entitled 17 to a deferred annuity under subchapter II of this chapter is 18 entitled and may elect-- I ~ (1) to receive an immediate annuity from the Thrift 20 Savings Fund; (2) to defer the commencement of the payment of an 22 annuity from the Thrift Savings Fund until such date as 23 the employee or Member specifies, but not later. than 24 April 1 of the year following the year in which the 25 employee or-member becomes 70 1/2 years of age; Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (3) to withdraw the amount of the balance in the 2 employees or Member's account in the Thrift Savings Fund 3 in one or more substantially equal payments to be made 4 not less frequently than annually and to commence during 5 any period which (A) commences on or after the date on 6 which payment of the employees or Members annuity under 7 subchapter II of this chapter commences, and (B) ends not 8 later than April 1 of the year following the year in 9 which the employee or Member becomes 70 1/2 years of age; 11 1.(4) to transfer the amount of the balance in the 12 employee's or Member's' account to an eligible retirement 13 plan as provided in subsection (e). 14 I~(d) Subject to section 8435 of this title, any employee 15 or Member who separates from Government employment before 16 becoming entitled to a deferred annuity under subchapter II 17 of this chapter shall transfer the amount of the balance in 18 the employees or Members account to an eligible retirement 19 plan as provided in subsection (e). 20 '1(e)(1) The Executive Director shall make each transfer 21 elected under subsection (b)(4) or (c)(4) or required under 22 subsection (d) directly to an eligible retirement plan or 23 plans (as defined in section 402(a)(5)(E) of the Internal 24 Revenue Code of 1954) identified by the employee, Member, 25 former employee, or former Member for whom the transfer is 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 '~(2) A transfer may not be made for an employee, Member, 3 former employee, or former. Member under paragraph (1) until 4 the Executive Director receives from that individual the 5 information required by the Executive Director specifically 6 to identify the eligible retirement plan or plans to which 7 the transfer is to be made. 8 ''(f)(1) Subject to paragraph (3)(A) and subsections (a) 9 and (d) of section 8435 of this title, an employee or Member 10 may change an election previously made under this subchapter. 11 (2) Subject to paragraph (3)(B) and section 8435(d) of 12 this title, a former employee or Member who has made an 13 election pursuant to subsection (b)(2) or (c)(2) may modify 14 the date specified in such election or in a previous 15 modification under this paragraph. 16 11(3)(A) A former employee or Member may not change an 17 election under this section on or after the date on which a 18 payment is made in accordance with such election or, in the 19 case of an election to receive an annuity, the date on which 20 an annuity elected by the former employee or Member 21 commences. 22 (B) A modification of a date may not be made under 23 paragraph (2) on or after such date and may not specify a 24 date for the commencement of an annuity earlier than 1 month 25 after the date on which the modification is submitted to the Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 Executive Director. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I I (g) If an employee or member (or former employee or 3 Member) dies without having made an election under this 4 section or after having elected an annuity under this section 5 but before making an election under section 8434 of this 6 title, an amount equal to the value of that individual's 7 account (as of death) shall, subject to any decree, order, or 8 agreement referred to in section 8435(d)(2) of this title be 9 paid in a manner consistent with section 8424(d) of this 10 title. 11 " (h) Unless otherwise elected under this section, 12 benefits under this subchapter shall be paid as an annuity 13 commencing for an employee, Member, former employee, or 14 former Member February 1 of the year following the latest of 15 the year in which-- 16 I.(1) the employee, Member, former employee, or 17 former Member becomes 65 years of age; 18 .1(2) occurs the tenth anniversary of the year in 19 which the employee, Member, former employee, or former 20 Member became subject to this subchapter; or 21 (3) employee, Member, former employee, or former 22 Member separates from Government employment. (i)(1) At any time after December 31, 1987, and before 24 separation, an employee or Member may apply to the Board for 25 permission to borrow from the employees or member's account Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 76 1 an amount not exceeding the value of that portion of such 2 account which is attributable to contributions made by the 3 employee or Member under section 8432(a) of this title. 4 I . (2) An application under this subsection may be 5 approved only for-- 6 (A) the purchase of a primary residence; I ~ (B) educational expenses; 8 (C) medical expenses; or (D) financial hardship. 10 (3) Loans under this subsection shall be subject to 11 such conditions as the Board may prescribe consistent with 12 section 408(b)(1) of the Employee Retirement Income Security 13 Act of '1974 (29 U.S.C. 1108(b)(1)). The conditions shall be 14 included in regulations issued by the Executive Director. 15 I.(4) A'loan may not be made under this subsection to the 16 extent that the loan would be treated as a taxable 17 distribution under section 72(p) of the Internal Revenue Code 18 of 1954. 1.(5) A loan may not be made under this subsection if the 20 requirements of section 8435(f) of this title are not 21 satisfied. 22 ~~S 8434. Annuities: methods of payment; election; purchase (a)(1) The Board shall prescribe methods of payment of 24 annuities under this subchapter. 25 11(2) The methods of payment prescribed under paragraph Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 -1 ApprovedFor Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 (1) shall include, but not be limited to-- 2 (A) a method which provides for the payment of a 3 monthly annuity only to an annuitant during the life of 4 the annuitant; 5 (B) a method which provides for the payment of a 6 monthly annuity to an annuitant for the joint lives of 7 the annuitant and the spouse of the annuitant and an 8 appropriate monthly annuity to the one of them who 9 survives the other of them for the life of the survivor; 10 "(C) a method described in subparagraph (A) which 11 provides annual increases in the amount of the annuity 12 payable; 13 (D) a method described in subparagraph (B) which 14 provides annual increases in the amount of the annuity 15 payable; and 16 - (E) a method providing for the payment of a monthly 17 annuity- (i) to the annuitant for the joint lives of the 19 annuitant and an individual who is designated by the 20 annuitant under regulations prescribed by the 21 Executive Director and (I) is a former spouse of the 22 annuitant, or (II) has an insurable interest in the 23 annuitant; and 24 (ii) to the one of them who survives the other 25 of them for the life of the survivor. 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 78 1 (b) Subject to section 8435(c) of this title, under 2 such regulations as the Executive Director shall prescribe, 3 an employee, Member, former employee, or former Member who 4 elects under section 8433 of this title to receive an annuity 5 under this subchapter shall elect, on or before the date on 6 which the annuity commences, one of the methods of payment 7 prescribed under subsection (a). 8 I I (c) Notwithstanding an elimination of a method of 9 payment by the Board-- 10 '% (1) an employee, Member, former employee, or former 11 Member who is entitled under section 8412 of this title 12 to an immediate annuity not reduced under section 8415(f) 13 of this title may elect the eliminated method if the 14 elimination of such method became effective less than 5 15 years before the date on which the annuity commences; and 16 (2) any other employee, Member, former employee, or 17 former Member may elect such method of payment for 18 amounts contributed by or on behalf of the employee, 19 Member, former employee, or former Member under section 20 8432 of this title before such effective date and for 21 earnings attributable to such amounts. 22 11(d)(1) At the time an annuity is to commence under this 23 subchapter, the Executive Director shall expend the balance 24 in the annuitant s account to purchase an annuity contract 25 from any entity which, in the normal course of its business, Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 sells and provides annuities. (2) The Executive Director shall assure, by contract 3 entered into with each entity from which an annuity contract 4 is purchased under paragraph (1), that the annuity shall be 5 provided in accordance with the provisions of this subchapter 6 and subchapter VII of this chapter. '' (3) An annuity contract purchased under paragraph (1) 8 shall include such terms and conditions as the Executive 9 Director requires for the protection of the annuitant. '' (4) The Executive Director shall require, from each 11 entity from which an annuity contract is purchased under 12 paragraph (1), a bond or proof of financial responsibility 13 sufficient to protect the annuitant. 14 S 8435. Protections for spouses and former spouses '' (a)(1)(A) A married employee or Member (or former 16 employee or Member) may make an election under subsection 17 (b)(3), (b)(4), (c)(3), or (c)(4) of section 8433 of this 18 title or change an election previously made under subsection 19 (b)(1), (b)(2), (c)(1), or (c)(2) of such section only if the 20 employee or Member (or former employee or Member) satisfies 21 the requirements of subparagraph (B). 22 '' (B) An employee or Member (or former employee or 23 Member) may make an election or change referred to in 24 subparagraph (A) if the employee or Member and the employee's 25 or Members spouse (or the former employee or Member and the - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 80 1 former employee's or Member's spouse) jointly waive, by 2 written election, any right which the spouse may have to a 3 survivor annuity with respect to such employee or Member (or 4 former employee or Member) under section 8434 of this title 5 or subsection (c). ? (2) Paragraph (1) shall not apply to an election or 7 change of election by an employee or Member (or former 8 employee or Member) who establishes to the satisfaction of 9 the Executive Director (at the time of the election or change 10 and in accordance with regulations prescribed by the 11 Executive Director)-- 12 (A) that the spouses whereabouts cannot be 13 determined; or - (B) that, due to exceptional circumstances, 15 requiring the spouses waiver would otherwise be 16 inappropriate. ''(b)(1) Except as provided in paragraph (2), a transfer 18 may be made by an employee or Member (or former employee or 19 Member) under section 8433(d) of this title only after the 20 Executive Director notifies any current spouse and each 21 former spouse of the employee or Member (or former employee 22 or Member), if any, that the transfer is to be made. %% (2) Paragraph (1) may be waived with respect to a 24 spouse or former spouse if the employee or Member (or former 25 employee or Member) establishes to the satisfaction of the If . -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 81 1 Executive Director that the whereabouts of such spouse or 2 former spouse cannot be determined. (c)(1) Notwithstanding any election under subsection 4 (b) of section 8434 of this title, the method described in 5 subsection (a)(2)(B) of such section (or, if more than one 6 form of such method is available, the form which the Board 7 determines to be the one which provides for a surviving 8 spouse a survivor annuity most closely approximating the 9 annuity of a surviving spouse under section 8442 of this 10 title) shall be deemed the applicable method under such 11 subsection (b) in the case of an employee, Member, former 12 employee, or former Member who is married on the date on 13 which the employee s, member s, former employee s, or former 14 Member's annuity commences under this subchapter. 15 %% (2) Paragraph (1) shall not apply-- 16 (A) in the case of an employee or Member retiring 17 under section 8412, 8413, 8414, or 8451 of this title 19 ''(i) a joint waiver of such method is made, in 20 writing, by the employee or Member and the spouse; or - (ii) the employee or Member waives such method, 22 in writing, after establishing to the satisfaction of 23 the Executive Director that circumstances described 24 in subsection (a)(2)(A) or (a)(2)(B) make the 25 requirement of a joint waiver inappropriate; or 11 -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I % (B) in the case of an employee or Member not 2 covered by subparagraph (A), if the employee or Member 3 waives such method after-- 4 - (i) having provided notification to the spouse 5 of intent to waive; or 6 (ii) establishing to the satisfaction of the 7 Executive Director that the whereabouts of such 8 spouse cannot be determined. ~I (d)(1) An election, change of election, or modification 10 of the commencement date of a deferred annuity shall not be 11 effective under this subchapter and a transfer may not be 12 made under section 8433(d) of this title to the extent that 13 the election, change, modification, or transfer conflicts 14 with any court decree, order, or agreement described in 15 paragraph (2). 16 (2) A court decree, order, or agreement referred to in 17 paragraph (1) is, with respect to an employee or Member (or 18 former employee or Member), a court decree of divorce, 19 annulment, or legal separation issued in the case of such 20 employee or Member (or former employee or Member) and any 21 former spouse of the employee or Member (or former employee 22 or Member) or any court order or court-approved property 23 settlement agreement incident to such decree if-- 24 1%(A) the decree, order, or agreement expressly 25 relates to any portion of the balance in the employee s - 1 - - - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 83 1 or Members (or former employee's'or Member's) account; 2 and 'I (B) notice of the decree, order, or agreement was 4 received by the Executive Director before-- 1'(i) the date on which payment is made, or I . (ii) in the case of an annuity, the date on 7 which the annuity commences, 8 in accordance with the election, change, modification, or 9 contribution referred to in paragraph (1). I . (3) The Executive Director shall prescribe regulations 11 under which this subsection shall be applied in any case in 12 which the Executive Director receives two or more decrees, 13 orders, or agreements referred to in paragraph (1). 14 ' (e)(1) Subject to paragraphs (2) through (7), a former 15 spouse of a deceased employee or Member (or a deceased former 16 employee or Member) who died after performing 18 or more 17 months of service and a former spouse of a deceased former 18 employee or Member who died entitled to an immediate or 19 deferred annuity under subchapter II of this chapter is 20 entitled to a survivor annuity under this subsection if and 21 to the extent that-- I I (A) an election under section 8434(a)(2)(E) of this 23 title, or (B) any court decree, order, or agreement 25 (described in subsection (d)(2), without regard to if - - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 84 1 subparagraph (B) of such subsection) which relates to 2 such deceased individual and such former spouse, 3 expressly provides for such survivor annuity. 4 - (2) Paragraph (1) shall apply only to payments made by 5 the Executive Director after the date on which the Executive 6 Director receives written notice of the decree, order, or 7 agreement, and such additional information and documentation 8 as the Executive Director may require. 1 1 (3) The amount of the survivor annuity payable from the 10 Thrift Savings Fund to a former spouse of a deceased 11 employee, Member, former employee, or former Member under 12 this section may not exceed the excess, if any, of-- 13 (A) the amount of the survivor annuity determined 14 for a surviving spouse of the deceased employee, Member, 15 former employee, or former member under the method 16 described in subsection (c)(1), over 17 .1(B) the total amount of all other survivor 18 annuities payable under this subchapter to other former 19 spouses of such deceased employee, Member, former 20 employee, or former member based on the order of 21 precedence provided in paragraph (4). 1%(4) If more than one former spouse of a deceased 23 employee, Member, former employee, or former Member is 24 entitled to a survivor annuity pursuant to this subsection, 25 the amount of each such survivor annuity shall be limited 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 85 1 appropriately to carry out paragraph (3) in the order of 2 precedence established for the entitlements by the 3 chronological order of the dates on which elections are 4 properly made pursuant to section 8434(a)(2)(E) of this title 5 and the dates on which the court decrees, orders, or 6 agreements applicable to the entitlement were issued, as the 7 case may be. I % (5) Subsections (c) and (d) of section 8445 of this 9 title shall apply to an entitlement of a former spouse to a 10 survivor annuity under this subsection. (6) For the purposes of this section, a court decree, 12 order, or agreement or an election referred to in subsection 13 (a) of this section shall not be effective, in the case of a 14 former spouse, to the extent that the election is 15 inconsistent with any joint waiver previously executed with 16 respect to such former spouse under subsection (a)(2) or 17 (c)(2). 1.(7) Any payment under this subsection to any individual 19 bars recovery by any other individual. 20 1.(f)(1)(A) A loan may be made to a married employee or 21 Member under section 8433(i) of this title only if the 22 employee's or Member's spouse consents to such loan in 23 writing. 24 11(B) A consent under subparagraph (A) shall'be 25 irrevocable with respect to the loan to which the consent Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 relates. 2 ? (C) Subparagraph (A) shall not apply to a loan to an 3 employee or Member who establishes to the satisfaction of the 4 Executive Director (at the time the employee or Member 5 applies for such loan and in accordance with regulations 6 prescribed by the Executive Director)-- 7 (i) that the spouses whereabouts cannot be 8 determined; or 9 1 1 (ii) that, due to exceptional circumstances, 10 requiring the employee or Member to seek the spouse's 11 consent would otherwise be inappropriate. 12 (2) An application for a loan under section 8433(i) of 13 this title shall not be approved if approval would have the 14 result described in subsection (d)(1). Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (g) Waivers and notifications required by this section 16 and waivers of the requirements for such waivers and 17 notifications (as authorized by this section) may be made 18 only in accordance with procedures prescribed by the 19 Executive Director. I . (h) The protections provided by this section are in 21 addition to the protections provided by section 8467 of this 23 --S 8436. Administrative provisions 24 (a) The Executive Director shall make or provide for 25 payments and transfers in accordance with an election of an 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 87 1 employee or Member under section 8433 or 8434(b) of this 2 title or, if applicable, in accordance with section 8435 of 3 this title. 4 I ~ (b) Any election, change of election, or modification 5 of a deferred annuity commencement date made under this 6 subchapter shall be in writing and shall be filed with the 7 Executive Director in accordance with regulations prescribed 8 by the Executive Director. 9 --S 8437. Thrift Savings Fund 10 (a) There is established in the Treasury of the United 11 States a Thrift Savings Fund. 12 (b) The Thrift Savings Fund consists of the sum of all 13 amounts contributed under section 8432 of this title and all 14 amounts deposited under section 8479(b) of this title, 15 increased by the total net earnings from investments of sums 16 in the Thrift Savings Fund or reduced by the total net losses 17 from investments of the Thrift Savings Fund, and reduced by 18 the total amount of payments made from the Thrift Savings 19 Fund (including payments for administrative expenses). I I (c) The sums in the Thrift Savings Fund are 21 appropriated and shall remain available without fiscal year 22 limitation-- 23 I%(1) to invest under section 8438 of this title; 24 (2) to pay benefits or purchase annuity contracts 25 under this subchapter; Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 (3) to pay the administrative expenses of the 2 Federal Retirement Thrift Investment Management System 3 prescribed in subchapter VII of this chapter; 4 (4) to make distributions for the purposes of 5 section 8440(b) of this title; 6 - (5) to make loans to employees and Members as 7 authorized under section 8433(i) of this title; and 8 11 (6) to purchase insurance as provided in section 9 8479(b)(2) of this title. (d) Administrative expenses incurred to carry out this 11 subchapter and subchapter VII of this chapter shall be paid 12 first out of any sums in the Thrift Savings Fund forfeited 13 under-section 8432(g) of this title and then out of net 14 earnings in such Fund attributable to sums contributed to 15 such Fund under section 8432(c) of this title. (e)(1) Subject to paragraphs (2) and (3), sums in the 17 Thrift Savings Fund credited to the account of an employee, 18 Member, former employee, or former Member may not be used 19 for, or diverted to, purposes other than for the exclusive 20 benefit of the employee, Member, former employee, or former 21 Member or his beneficiaries under this subchapter. 22 (2) Except as provided in paragraph (3), sums in the 23 Thrift Savings Fund may not be assigned or alienated and are 24 not subject to execution, levy, attachment, garnishment, or 25 other legal process. For the purposes of this paragraph, a Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 89 1 loan made from such Fund to an employee or Member shall not 2 be considered to be an assignment or alienation. 3 . 1 (3) Moneys due or payable from the Thrift Savings Fund 4 to any individual and, in the case of an individual who is an 5 employee or Member (or former employee or Member), the 6 balance in the account of the employee or Member (or former 7 employee or Member) shall be subject to legal process for the 8 enforcement of the individuals legal obligations to provide 9 child support or make alimony payments as provided in section 10 459 of the Social Security Act (42 U.S.C. 659). ~I (f) The sums in the Thrift Savings Fund shall not be 12 appropriated for any purpose other than the purposes 13 specified in this section and may not be used for any other 14 purpose. 15 (g) All sums contributed to the Thrift Savings Fund by 16 an employee or Member or by an employing agency for the 17 benefit of such employee or Member and all net earnings in 18 such Fund attributable to investment of such sums are held in 19 such Fund in trust for such employee or Member. 20 ~'S 8438. Investment of Thrift Savings Fund 21 " (a) For the purposes of this section-- 22 1.(1) the term 'Common Stock Index Investment Fund' 23 means the Common Stock Index Investment Fund established 24 under subsection (b)(1)(C); 25 (2) the term equity capital means common and Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 90 1 preferred stock, surplus, undivided profits, contingency 2 reserves, and other capital reserves; 3 1%(3) the term 'Fixed Income Investment Fund' means 4 the Fixed Income Investment Fund established under 5 subsection (b)(1)(B); 6 (4) the term Government Securities Investment 7 Fund' means the Government Securities Investment Fund 8 established under subsection (b)(1)(A); 9 " (5) the term net worth means capital, paid-in and 10 contributed surplus, unassigned surplus, contingency 11 reserves, group contingency reserves, and special 13 (6) the term 'plan' means an employee benefit plan, 14 as defined in section 3(3) of the Employee Retirement 15 Income Security Act of 1974 (29 U.S.C. 1002(3)); 16 - (7) the term 'qualified professional asset manager 18 (A) a bank, as defined in section 202(a)(2) of 19 the Investment Advisers Act of 1940 (15 U.S.C. 20 80b-2(a)(2)) which-- 21 ''(i) has the power to manage, acquire, or 22 dispose of assets of a plan; and - (ii) has, as of the last day of its latest fiscal year ending before the date of a 25 determination for the purpose of this clause, Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 equity capital in excess of $1,000,000; '(B) a savings and loan association, the accounts of which are insured by the Federal Savings and Loan Insurance Corporation, which-- I I (i) has applied for and been granted trust 6 powers to manage, acquire, or dispose of assets of a plan by a State or Government authority having supervision over savings and loan associations; and (ii) has, as of the last day of its latest fiscal year ending before the date of a determination for the purpose of this clause, equity capital or net worth in excess of $1,000,000; (C) an insurance company which- (i) is qualified under the laws of more 17 than one State to manage, acquire, or dispose of any assets of a plan; (ii) has, as of the last day of its latest fiscal year ending before the date of a determination for the purpose of this clause, net worth in excess of $1,000,000; and (iii) is subject to supervision and examination by a State authority having supervision over insurance companies; or - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (D) an investment adviser registered under 2 section 203 of the Investment Advisers Act of 1940 3 (15 U.S.C. 80b-3) if the investment adviser has, on 4 the last day of its latest fiscal year ending before 5 the date of a determination for the purpose of this 6 subparagraph, total client assets under its 7 management and control in excess of $50,000,000, 8 and-- I I (i) the investment adviser has, on such day, shareholders or partners equity in excess of $750,000; or (ii) payment of all of the investment adviser's liabilities, including any liabilities which may arise by reason of a breach or violation of a duty described in section 8477 of this title, is unconditionally guaranteed by-- (I) a person (as defined in section 8471(4) of this title) who directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the investment adviser and who has, on the last day of the persons latest fiscal year ending before the date of a determination for the purpose of this clause, shareholders or Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 93 partner's equity in an amount which, when added to the amount of the shareholders or partner's equity of the investment adviser on such day, exceeds $750,000; I I (II) a qualified professional asset 6 manager described in subparagraph (A), (B), 7 or (C); or II (III) a broker or dealer registered 9 under section 15 of the Securities Exchange 10 Act of 1934 (15 U.S.C. 780) that has, on the 11 last day of the brokers or dealers latest 12 fiscal year ending before the date of a 13 determination for the purpose of this clause, 14 net worth in excess of $750,000; and 15 ? (8) the term 'shareholder's or partner's equity', 16 as used in paragraph (7)(D) with respect to an investment 17 adviser or a person (as defined in section 8471(4) of 18 this title) who is affiliated with the investment adviser 19 in a manner described in clause (ii)(I) of such paragraph 20 (7)(D), means the equity shown in the most recent balance 21 sheet prepared for such investment adviser or affiliated 22 person, in accordance with generally accepted accounting 23 principles, within 2 years before the date on which the 24 investment advisers status as a qualified professional 25 asset manager is determined for the purposes of this Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 section. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ~I (b)(1) The Board shall establish-- 'I (A) a Government Securities Investment Fund under 4 which sums in the Thrift Savings Fund are invested in 5 securities of the United States Government issued as 6 provided in subsection (f); 7 11 (B) a Fixed Income Investment Fund under which sums 8 in the Thrift Savings Fund are invested in-- 9 ''(i) insurance contracts; 1%(ii) certificates of deposits; or - (iii) other instruments or obligations selected 12 by qualified professional asset managers, 13 which return the amount invested and pay interest, at a 14 specified rate or rates, on that amount during a 15 specified period of time; and (C) a Common Stock Index Investment Fund as 17 provided in paragraph (2). 18 (2)(A) The Board shall select an index which is a 19 commonly recognized index comprised of common stock the 20 aggregate market value of which is a reasonably complete 21 representation of the United States equity markets. I I (B) The Common Stock Index Investment Fund shall be 23 invested in a portfolio designed to replicate the performance 24 of the index selected under subparagraph (A). The portfolio 25 shall be designed such that, to the extent practicable, the I - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 percentage of the Common Stock Index Investment Fund that is 2 invested in each stock is the same as the percentage 3 determined by dividing the aggregate market value of all 4 shares of that stock by the aggregate market value of all 5 shares of all stocks included in such index. 6 ''(c)(1) Subject to subsection (e), the Executive 7 Director shall invest the sums available in the Thrift 8 Savings Fund for investment as provided in elections made 9 under subsection (d). (2) If an election has not been made with respect to 11 any sums in the Thrift Savings Fund available for investment, 12 the Executive Director shall invest such sums in the 13 Government Securities Investment Fund. 14 ''(d)(1) At least twice each year, an employee or Member 15 (or former employee or Member) may elect the investment funds 16 referred'to in subsection (b) into which the sums in the 17 Thrift Savings Fund credited to such individuals account and 18 not subject to subsection (e) are to be invested or 19 reinvested. 20 (2) An election may be made under paragraph (1) only in 21 accordance with regulations prescribed by the Executive 22 Director and within such period as the Executive Director 23 shall provide in such regulations. 24 ''(e)(1)(A) During each year specified under column 1 of 25 table I set out in subparagraph (D), the Executive Director Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 96 1 shall invest, with respect to each employee, Member, former 2 employee, and former Member not less than the percentage 3 determined under subparagraph (B) of the amount described in 4 subparagraph (C) in the Government Securities Investment 5 Fund. 'I (B) For the purposes of subparagraph (A), the minimum 7 percentage applicable to investments during a year specified 8 under column 1 of table I is the percentage which corresponds 9 to such year under column 2 of table I. 10 (C) The amount to be invested as provided in 11 subparagraph (A) in any year specified under column 1 of 12 table I is the total amount contributed to the Thrift Savings 13 Fund by an employee, Member, former employee, or former 14 Member under section 8432(a) of this title and available for 15 investment during such year. (D) Table I is as follows: Table I Column 1 Year: Minimum percentage: 1987 ....................... 100 1988 ....................... 80 1989 ....................... 60 1990 ....................... 40 1991 ....................... 20. 17 .1(2)(A) During each year specified under column 1 of 18 table II set out in subparagraph (D), the Executive Director 19 shall invest, with respect to each employee, Member, former Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 97 1 employee, and former Member not less than the percentage 2 determined under subparagraph (B) of the amount described in 3 subparagraph (C) in the Government Securities Investment 4 Fund. 5 (B) For the purposes of subparagraph (A), the minimum 6 percentage applicable to investments during a year specified 7 under column 1 of table II is the percentage which 8 corresponds to such year under column 2 of table II. (C) The amount to be invested as provided in 10 subparagraph (A) in any year specified under column 1 of 11 table II is the total amount contributed to the Thrift 12 Savings Fund for the benefit of an employee, Member, former 13 employee, or former Member under section 8432(c) of this 14 title and available for investment during such year. (D) Table II is as follows: Column 1 Year: Minimum percentage: 1987-1992 .................. 100 1993 ....................... 80 1994 ....................... 60 1995 ....................... 40 1996 ....................... 20. 16 " (3)(A) Before 1992, the sums invested in the Government 17 Securities Investment Fund as required by paragraph.(1) and 18 the earnings attributable to the investment of such sums may 19 not be reinvested in any investment fund other than the Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 Government Securities Investment Fund. %.(B) Before 1997, the sums invested in the Government 3 Securities Investment Fund as required by paragraph (2) and 4 the earnings attributable to the investment of such sums may 5 not be reinvested in any investment fund other than the 6 Government Securities Investment Fund. 7 '(f)(1) The Secretary of the Treasury is authorized to 8 issue special interest-bearing obligations of the United 9 States for purchase by the Thrift Savings Fund for the 10 Government Securities Investment Fund. 11 (2)(A) Obligations issued for the purpose of this 12 subsection shall have maturities fixed with due regard to the 13 needs of such Fund as determined by the Executive Director, 14 and shall bear interest at a rate equal to the average market 15 yield (computed by the Secretary of the Treasury on the basis 16 of market quotations as of the end of the calendar month next 17 preceding the date of issue of-such obligations) on all 18 marketable interest-bearing obligations of the United States 19 then forming a part of the public debt which are not due or 20 callable earlier than 4 years after the end of such calendar 21 month. 22 (B) Any average market yield computed under 23 subparagraph (A) which is not a multiple of one-eighth of 1 24 percent, shall be rounded to the nearest multiple of 25 one-eighth of 1 percent. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ''(g) The Board, other Government agencies, the Executive 2 Director, an employee, a Member, a former employee, and a 3 former Member may not exercise voting rights associated with 4 the ownership of securities by the Thrift Savings Fund. 5 ''S 8439. Accounting and information I I (a)(1) The Executive Director shall establish and 7 maintain an account for each individual for whom 8 contributions are made under section 8432(c)(1) of this title 9 or who makes contributions to the Thrift Savings Fund under 10 section 8351 of this title. 11 '(2) The balance in an individual's account at any time 12 is the excess of-- (A) the sum of-- 14 (i) all contributions made to the Thrift 15 Savings Fund by the individual under section 8432(a) 16 or 8351 of this title; 17 '(ii) all contributions made to such Fund for 18 the benefit of the individual under section 8432(c) 19 of this title; and I I (iii) the total amount of the allocations made 21 to and reductions made in the account pursuant to 22 paragraph (3), over 23 I~(B) the amounts paid out of the Thrift Savings Fund 24 with respect to such individual under this subchapter. I . (3) Pursuant to regulations prescribed by the Executive 11 . . -.. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 Director, the Executive Director shall allocate to each 2 account an amount equal to a pro rata share of the net 3 earnings and net losses from each investment of sums in the 4 Thrift Savings Fund attributable to sums credited to such 5 account, reduced by an appropriate share of the 6 administrative expenses paid out of the net earnings under 7 section 8437(d) of this title, as determined by the Executive 8 Director. . I (b)(1) For the purposes of this subsection, the term 10 'qualified public accountant shall have the same meaning as 11 provided in section 103(a)(3)(D) of the Employee Retirement 12 Income Security Act of 1974 (29 U.S.C. 1023(a)(3)(D)). 13 I.(2) The Executive Director shall annually engage, on 14 behalf of all individuals for whom an account is maintained, 15 an independent qualified public accountant, who shall conduct 16 an examination of all accounts and other books and records 17 maintained in the administration of this subchapter and 18 subchapter VII as the public accountant considers necessary 19 to enable the public accountant to make the determination 20 required by paragraph (3). The examination shall be conducted 21 in accordance with generally accepted auditing standards and 22 shall involve such tests of the accounts, books, and records 23 as the public accountant considers necessary. 24 11(3) The public accountant conducting an examination 25 under paragraph (2) shall determine whether the accounts, Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 101 1 books, and records referred to in such paragraph have been 2 maintained in conformity with generally accepted accounting 3 principles applied on a basis consistent with the manner in 4 which such principles were applied during the examination 5 conducted under such paragraph during the preceding year. The 6 public accountant shall transmit to the Board and the 7 Comptroller General of the United States a report on his 8 examination, including his determination under this 9 paragraph. 10 (4) In making a determination under paragraph (3), a 11 public accountant may rely on the correctness of any 12 actuarial matter certified by an enrolled actuary if the 13 public accountant states his reliance in the report 14 transmitted to the Board under such paragraph. 15 ''(c)(lj The Board shall prescribe regulations under 16 which each individual for whom an account is maintained shall 17 be furnished with-- ~% (A) a periodic statement relating to the 19 individual's account; and 20 (B) a summary description of the investment options 21 under section 8438 of this title covering and an 22 evaluation of each such option the 5-year period 23 preceding the date as of which such evaluation is made. ~1 (2) Information under this subsection shall be provided 25 at least 30 calendar days before the beginning of each Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 102 1 election period under section 8432(b)(1)(A) of this title, 2 and in a manner designed to facilitate informed 3 decisionmaking with respect to elections under sections 8432 4 and 8438 of this title. 5 1 1 (d) Each employee, Member, former employee, or former 6 Member who elects to invest in the Common Stock Index 7 Investment Fund or the Fixed Income Investment Fund described 8 in paragraphs (1) and (3), respectively, of section 8438(a) 9 of this title shall sign an acknowledgement prescribed by the 10 Executive Director which states that the employee, Member, 11 former employee, or former Member understands that an 12 investment in either such Fund is made at the employee s, 13 Member s, former employee s, or former Members risk, that 14 the employee, Member, former employee, or former Member is 15 not protected by the Government against loss on such 16 investment, and that a return on such investment is not 17 guaranteed by the Government. 18 "S 8440. Tax treatment of the Thrift Savings Fund 19 (a) For purposes of the Internal Revenue Code of 1954-- 20 - (1) the Thrift Savings Fund shall be treated as a 21 trust described in section 401(a) of such Code which is 22 exempt from taxation under section 501(a) of such Code; ~1 (2) any contribution to, or distribution from, the 24 Thrift Savings Fund shall be treated in the same manner 25 as contributions to or distributions from such,a trust; --- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 and 2 (3) subject to the provisions of subsection (c) and 3 any dollar limitation on the application of section 4 402(a)(8) of such Code, contributions to the Thrift 5 Savings Fund shall not be treated as distributed or made 6 available to an employee or Member nor as a contribution 7 made to the Fund by an employee or Member merely because 8 the employee or Member has, under the provisions of this 9 subchapter and section 8351 of this title, an election 10 whether the contribution will be made to the Thrift 11 Savings Fund or received by the employee or Member in 12 cash. 13 ''(b)(1) Subsection (a)(3) shall not apply to the Thrift 14 Savings Fund unless the Fund meets any antidiscrimination 15 requirement (other than any requirement relating to coverage) 16 applicable to arrangements described in section 401(k) of the 17 Internal Revenue Code of 1954 and to matching contributions. 18 (2)(A) This subchapter shall not be treated as failing 19 to meet the requirements of paragraph (1) for any year if the 20 amount of the excess matching contributions and excess 21 employee contributions for such year (and any income 22 attributable to such contributions) is distributed before the 23 close of the following year. Such contributions (and income) 24 may be distributed without regard to any other provision of 25 law. 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (B) For purposes of subparagraph (A), the term excess 2 matching contributions' means, with respect to any year, the 4 ''(i) the aggregate amount of contributions under 5 section 8432(c) of this title actually made on behalf of 6 highly compensated employees (as defined for purposes of 7 section 401(k) of the Internal Revenue Code of 1954) for 8 such year, over 9 - (ii) the maximum amount of such contributions 10 permitted under the limitations of paragraph (1) 11 (determined by reducing contributions made on behalf of 12 highly compensated employees in order of the matching 13 contribution percentages beginning with the highest of 14 such percentages). 15 11(C) For purposes of subparagraph (A), the amount of 16 excess employee contributions shall be determined under the 17 principles of subparagraph (B). %(D) Any distribution of the excess matching 19 contributions or excess employee contributions for any year 20 shall be made to highly compensated employees on the basis of 21 the respective portions of such amounts attributable to each 22 of such employees. 23 - (E) No early distribution tax, if any, under the 24 Internal Revenue Code of 1954 shall be imposed on any amount 25 required to be distributed under subparagraph (A).. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I I (d) Subsection (a) shall not be construed to provide 2 that any amount of the employees or Members pay which is 3 contributed to the Thrift Savings Fund shall not be included 4 in the term 'wages' for the purposes of section 209 of the 5 Social Security Act or section 3121(a) of the Internal 6 Revenue Code of 1954. 7 ''SUBCHAPTER IV--SURVIVOR ANNUITIES 8 '~S8441. Definitions 9 1 1 For the purpose of this subchapter-- 10 11 (1) the term 'widow' means the surviving wife of an 11 employee, Member, or annuitant, or of a former employee 12 or Member, who-- 13 (A) was married to him for at least 9 months 14 immediately before his death; or 15 11 (B) is the mother of issue by that marriage; 16 - (2) the term 'widower' means the surviving husband 17 of an employee, Member, or annuitant, or of a former 18 employee or Member, who-- 19 (A) was married to her for at least 9 months 20 immediately before her death; or 21 ., (B) is the father of issue by that marriage; 22 (3) the term 'dependent', in the case of any child, 23 means that the employee, Member, or annuitant involved 24 was, at the time of death of the employee, Member, or 25 annuitant either living with or contributing to the Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 106 1 support of such child, as determined in accordance with 2 such regulations as the Office shall prescribe; and (4) the term childmeans-- (A) an unmarried dependent child under 18 years of age, including (i) an adopted child, (ii) a stepchild but only if the stepchild lived with the 7 employee, Member, or annuitant in a regular 8 parent-child relationship, (iii) a recognized natural 9 child, and (iv) a child who lived with and for whom a 10 petition of adoption was filed by an employee, 11 Member, or annuitant and who is adopted by the widow 12 or widower of the employee, Member, or annuitant 13 after the death of such employee, Member, or 14 annuitant; 15 (B) such unmarried dependent child regardless 16 of age who is incapable of self-support because of 17 mental or physical disability incurred before age 18; 18 or 19 " (C) such unmarried dependent child between 18 20 and 22 years of age who is a student regularly 21 pursuing a full-time course of study or training in 22? residence in a high school, trade school, technical 23 or vocational institute, junior college, college, 24 university, or comparable recognized educational 25 institution. - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 107 1 For the purpose of this paragraph and section 8443, a 2 child whose 22nd birthday occurs before July 1 or after 3 August 31 of a calendar year, and while regularly 4 pursuing such a course of study or training, is deemed to 5 have become 22 years of age on the first day of July 6 after that birthday. A child who is a student is deemed 7 not to have ceased to be a student during an interim 8 between school years if the interim is not more than 5 9 months and if such child shows to the satisfaction of the 10 Office that such child has a bona fide intention of 11 continuing to pursue a course of study or training in the 12 same or different school during the school semester (or 13 other period into which the school year is divided) 14 immediately after the interim. 15 58442. Rights of a widow or widower 16 (a)(1) Except as provided in subsection (g), if an 17 annuitant dies and is survived by a widow or widower, the 18 widow or widower is entitled to an annuity equal to 50 19 percent of an annuity computed under section 8415 with 20 respect to the annuitant, unless-- 21 (A) the right to an annuity was waived under 22 section 8416(a) (and no election was subsequently made 23 under section 8416(d) nullifying the waiver); or (B) in the case of a marriage after retirement, the 25 annuitant did not file an election under section 8416 (b) 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 or (c), as the case may be. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (2) A spouse acquired after retirement is entitled to 3 an annuity under this subsection (as provided in paragraph 4 (1)) only upon electing this annuity instead of any other 5 survivor benefit to which such spouse may be entitled under 6 this subchapter or section 8424 or under another retirement 7 'system for Government employees. (b)(1) If an employee or Member dies after completing 9 at least 18 months of civilian service creditable under 10 section 8411 and is survived by a widow or widower, the widow 11 or widower is entitled to-- 12 (A) an amount equal to the sum of-- 13 '(i) 50 percent of the final annual rate of 14 basic pay (or of the average pay, if higher) of the 15 employee or Member; and 16 - (ii) $15,000 as adjusted under section 17 8462(e)); and ~I (B) if the employee or Member completed at least 10 19 years of service, an annuity equal to 50 percent of an 20 annuity computed under section 8415 with respect to the 21 employee or Member. 22 (2) The Office shall prescribe regulations under which 23 the total amount payable to a widow or widower under 24 paragraph (1)(A) may, at the election of the widow or 25 widower, be paid-- -III - - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 (A) in a lump sum; or Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ' (B) on a monthly basis-- 3 ''(i) over a period of 3 years beginning on the 4 day after the employees or Members death; or (ii) over any other period established under 6 the regulations. 7 Any method of payment provided for under subparagraph (B) 8 shall be designed such that the present value of the benefits 9 provided under such method is actuarially equivalent to the 10 present value of a lump-sum payment under subparagraph (A). 11 (3) An amount payable under paragraph (1)(A) shall not 12 be considered to be part of an annuity for purposes of this 13 chapter. (c)(1) If a former employee or Member dies after having 15 separated from the service with title to a deferred annuity 16 under section 8413 but before having established a valid 17 claim for an annuity, and is survived by a widow or widower 18 to whom married on the date of separation, the widow or 19 widower may elect to receive-- % I (A) an annuity under paragraph (2); or 21 (B) the lump-sum credit, if the widow or widower is 22 the individual who would be entitled to the lump-sum 23 credit and if such widow or widower files application 24 therefor with the Office. 25 "(2)(A)(i) Subject to clause (ii) and subparagraph Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 110 1 (B)(ii), the annuity of the widow or widower is equal to 50 2 percent of an annuity computed under section 8415 for the 3 former employee or Member. 4 ''(ii)(I) In computing an amount under section 8415 for a 5 former employee or Member (described in subclause (II)) in 6 order to compute the annuity for a widow or widower under 7 this subsection, the computation under section 8415 shall be 8 made as if the former employee or Member had attained the 9 applicable minimum retirement age under section 8412(h). . I (II) This clause applies with respect to a former 11 employee or Member who dies before having attained the 12 applicable minimum retirement age under section 8412(h). 13 ''(B)(i) Notwithstanding the first sentence of subsection 14 (d)(1), the annuity of the widow or widower of a former 15 employee or Member under subparagraph (A)(ii) commences-- 16 , (I) on the day after the date on which the former 17 employee or Member would have attained age 62; or I ~ (II) if the widow or widower so designates in the 19 election, as of the day after the death of the former 20 employee or Member. 21 (ii) The present value of the annuity of a widow or 22 widower who chooses the earlier commencement date under 23 clause (i)(II) shall be actuarially equivalent to the present 24 value of an annuity computed for the widow or widower, 25 determined as if the commencement date under clause (i)(I) Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 were applicable. 2 - (3)(A) Paragraphs (1) and (2) shall apply only in the 3 case of an employee or Member who completes at least 10 years 4 of service. ?1 (B) Nothing in this subsection shall be considered to 6 affect the provisions of this chapter relating to a lump-sum 7 credit in the case of the widow or widower of a former 8 employee or Member who dies after completing less than 10 9 years of service. I % (d)(1) The annuity of a widow or widower under this 11 section commences on the day after the death of the 12 individual on whose service such annuity is based. This 13 annuity and the right thereto terminate on the last day of 14 the month before the widow or widower-- 15 11(A) dies; or 16 (B) remarries before becoming 55 years of age. 1 1 (2) In the case of a widow or widower whose annuity 18 under this section is terminated because of remarriage before 19 becoming 55 years of age, the annuity shall be restored at 20 the same rate commencing on the day the remarriage is 21 dissolved by death, divorce, or annulment, if-- 22 11(A) the widow or widower elects to receive this 23 annuity instead of any other survivor benefit to which 24 such widow or widower may be entitled (under this 25 subchapter or section 8424 or under another retirement Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 112 1 system for Government employees) by reason of the 2 remarriage; and 3 (B) any lump sum paid on termination of the annuity 4 is returned to the Fund. 5 (e) The requirement in paragraphs (1)(A) and (2)(A) of 6 section 8441 that the widow or widower of an annuitant, 7 employee, or Member, or of a former employee or Member, have 8 been married to such individual for at least 9 months 9 immediately before the death of the individual in order to 10 qualify as the widow or widower of such individual shall be 11 deemed satisfied in any case in which the individual dies 12 within the applicable 9-month period, if-- 13 (1) the death of the individual was accidental; or ~1 (2) the surviving spouse of the individual had been 15 previously married to such individual and subsequently 16 divorced, and the aggregate time married is at least 9 17 months. I I (f)(1) Subject to paragraph (4), a survivor who is 19 entitled to an annuity under subsection (a) shall also be 20 entitled to a supplementary annuity under this subsection. ~'(2) A supplementary annuity under this subsection shall 22 be equal to the lesser of-- 23 (A) the amount by which the survivors assumed CSRS 24 annuity exceeds the annuity payable to such survivor 25 under subsection (a); or Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 %(B) the amount determined under paragraph (3). ~% (3)(A) Except as provided in subparagraph (B), the 3 amount under this paragraph for a survivor is the amount of 4 widows or widowers insurance benefits which would be 5 payable to such survivor under title II of the Social 6 Security Act (without regard to sections 202(e)(7), 7 202(f)(2), and 203 of such Act) based on the wages and 8 self-employment income of the deceased annuitant, and 9 determined-- 10 ''(i) as of the date on which the annuitant died; and 11 1.(ii) as if the survivor had attained age 60 and 12 made application for those benefits under subsection (e) 13 or (f) of section 202 of such Act, as the case maybe. 14 '(B) Any computation or determination under this 15 paragraph shall be made in accordance with the applicable 16 provisions of the Social Security Act, except that in 17 computing any primary insurance amount under section 215 of 18 such Act for purposes of determining an amount under this 19 subsection, subparagraphs (A) and (C) of section 8421(b)(2) 20 shall apply. 21 (4) A supplementary annuity under this subsection-- 22 (A) shall be payable to a survivor only for 23 calendar months ending before the calendar month in which 24 such survivor first satisfies the minimum age requirement 25 under section 202(e)(1)(B)(i) or 202(f)(1)(B)(i) of the Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 Social Security Act, as the case may be; 2 .1(B) shall not be payable to a survivor who would 3 not be entitled to benefits under subsection (e) or (f) 4 of section 202 of the Social Security Act based on the 5 wages and self-employment income of the deceased 6 annuitant (determined, as of the date of the annuitant's 7 death, as if the survivor had attained age 60 and made 8 appropriate application for benefits, but without regard 9 to any restriction under either such subsection relating 10 to remarriage); and 11 (C) shall not be payable to a survivor for any 12 calendar month in which such survivor is entitled (or 13 would, on proper application, be entitled) to benefits 14 under section 202(g) of the Social Security Act (relating 15 to mothers and fathers insurance benefits), or under 16 section 202(e) or (f) of such Act by reason of having 17 become disabled, based on the wages and self-employment 18 income of the deceased annuitant. 19 11(5) For the purpose of this subsection, the term 20 'assumed CSRS annuity', as used in the case of a survivor, 21 means the amount of the annuity to which such survivor would 22 be entitled under subchapter III of chapter 83 of this title 23 based on the service of the deceased annuitant, determined-- 24 (A) as of the day after the date of the annuitant's 25 death; Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I . (B) as if the survivor had made appropriate 2 application therefor; and 3 (C) as if the service of the deceased annuitant 4 were creditable under such subchapter. 5 , 1 (6) An amount payable under this subsection shall be 6 adjusted under section 8462 and shall otherwise be treated 7 under this chapter in the same way as an amount payable under 8 subsection (a). 9 ''(g)(1) If the widow or widower of an annuitant under 10 section 8452 (hereinafter in this subsection referred to as a 11 ''disability annuitant") is determined under subsection (a) 12 to be entitled to an annuity based on the service of such 13 disability annuitant, the annuity of the widow or widower 14 shall be equal to 50 percent of the amount determined under 15 paragraph (2), rather than of the amount referred to in 16 subsection (a). 17 .1(2)(A) Except as provided in subparagraph (B), the 18 amount on which the annuity of the widow or widower of a 19 disability annuitant is based shall be the amount of the 20 annuity to which such disability annuitant was entitled, as 21 computed under section 8452 (including appropriate reduction 22 under subsection (a)(2) of such section and any adjustments 23 under section 8462 allowed under section 8452)), as of the 24 day before the date of the disability annuitants death. 25 ''(B)(i) In the case of a widow or widower entitled to an Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 116 1 annuity based on the service of a disability annuitant who 2 dies before age 62, the amount under clause (ii) shall apply 3 instead of the amount which would otherwise apply under 4 subparagraph (A). 5 '' (ii)(I) Subject to subclause (II), the amount of the 6 annuity to which the disability annuitant was entitled as of 7 the day before the date of death shall be considered to be 8 the amount which would be computed with respect to such 9 disability annuitant under section 8452(b) if the disability 10 annuitant had attained age 62 on the day before date of 11 death. 12 ''(II) For purposes of any such computation under section 13 8452(b)(2) pursuant to this clause, creditable service shall 14 (in addition to the service which would otherwise be used 15 under. subparagraph (B)(i) of such section) include the period 16 of time between date of death and the date of the sixty- 17 second anniversary of the birth of the annuitant, and average ?18 pay shall be adjusted in accordance with subparagraph (B)(ii) 19 of such section only through date of death. 20 '' (h) The following rules shall apply notwithstanding any 21 other provision of this section: '. (1) The annuity payable under this section to a 23 widow or widower may not exceed the difference between-- 24 '.(A) the amount of the annuity which would 25 otherwise be payable to such widow or widower under Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 117 1 this section; and 2 (B) the amount of the annuity payable to any 3 former spouse of the deceased employee, Member, or 4 annuitant, or former employee or Member, based on an 5 election made under section 8417(b) or a court order 6 previously issued or agreement previously entered 7 into as described in section 8445(a). 8 (2) The amount payable under subsection (b)(1)(A) 9 to a widow or widower may not exceed the difference 10 between-- 11 ? (A) the amount which would otherwise be payable 12 to such widow or widower under such subsection; and 13 (B) the portion of such amount payable to any 14 former spouse of the deceased employee, Member, or 15 annuitant, or former employee or Member, based on a 16 court order previously issued or agreement previously 17 entered into. 18 I~(3) A lump-sum credit under subsection (c)(2) shall 19 be subject to the same terms and conditions as apply with 20 respect to a lump-sum credit under section 8424(b). 21 "S8443. Rights of a child 22 (a)(1) If an employee or Member dies after completing 23 at least 18 months of civilian service which is creditable 24 under section 8411, or an annuitant dies, each surviving 25 child is, for any month, entitled to an annuity equal to-- _ Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ~I (A) the amount by which the applicable amount under 2 paragraph (2) for such month exceeds the applicable 3 amount under paragraph (3) for such month, divided by 4 (B) the number of children entitled to a payment 5 under this section for such month. (2) The applicable amount under this paragraph for any 7 month is the total amount to which the surviving child or 8 children (as the case may be) of the annuitant, employee, or 9 Member would be entitled for such month under subchapter III 10 of chapter 83 based on the service of such annuitant, 11 employee, or Member, if the service of such annuitant, 12 employee, or Member were creditable under such subchapter. 1.(3) The applicable amount under this paragraph for any 14 month is the total amount of child's insurance benefits which 15 are payable (or would, on proper application, be payable) 16 under title II of the Social Security Act for such month 17 based on the wages and self-employment income of such 18 annuitant, employee, or Member. ~I (b) The annuity of a child under this subchapter-- 20 (1) commences on the day after the annuitant, 21 employee, or Member dies; 22 1'(2) commences or resumes on the first day of the 23 month in which the child later becomes or again. becomes a 24 student as described by section 8441(4), if any lump sum 25 paid is returned to the Fund; or Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 (3) commences or resumes on the first day of the 2 month in which the child later becomes or again becomes 3 incapable of self-support because of a mental or physical 4 disability incurred before age 18 (or a later recurrence 5 of such disability), if any lump sum paid is returned to 6 the Fund. 7 This annuity and the right thereto terminate on the last day 8 of the month before the child-- 9 (A) becomes 18 years of age unless then a student 10 as described or incapable of self-support; 11 (B) becomes capable of self-support after becoming 12 18 years of age unless then such a student; I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (C) becomes 22 years of age if then such a student 14 and capable of self-support; ~I (D) ceases to be such a student after becoming 18 16 years of age unless then incapable of self-support; or 17 '~(E) dies or marries; 18 whichever occurs first. On the death of the surviving wife or 19 husband, or former wife or husband, or termination of the 20 annuity of a child, the annuity of any other child or 21 children shall be recomputed and paid as though the wife or 22 husband, former wife or husband, or child had not survived 23 the annuitant, employee, or Member. 24 --S8444. Rights of a named individual with an insurable 25 interest Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 I ~ The annuity of a survivor named under section 8420(a) 2 is 55 percent of the reduced annuity of the retired employee 3 or Member determined under paragraph (2) of such section 4 8420(a). The annuity of the survivor commences on the day 5 after the retired employee or.Member dies. This annuity and 6 the right thereto terminate on the last day of the month 7 before the survivor dies. 8 ~~S8445. Rights of a former spouse 9 1 1 (a) Subject to subsections (b) through (e), a former 10 spouse of a deceased employee, Member, or annuitant (or of a 11 former employee or Member who dies after having separated 12 from the service with title to a deferred annuity under 13 section 8413 but before having. established a valid claim for 14 annuity) is entitled to an annuity under this section, if and 15 to the extent expressly provided for in an election under 16 section 8417(b), or in the terms of any decree of divorce or 17 annulment or any court order or court-approved property 18 settlement agreement incident to such decree. 19 ''(b)(1) The annuity payable to a former spouse under 20 this section may not exceed the difference between-- (A) the amount applicable in the case of such 22 former spouse, as determined under paragraph (2); and (B) the amount of any annuity payable under this 24 section to any other former spouse of the employee, 25 Member, or annuitant, or former employee or Member, based Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 121 1 on an election previously made under section 8417(b), or 2 a court order previously issued or agreement previously 3 entered into as described in subsection (a). 4 1.(2) The applicable amount, for purposes of paragraph 5 (1)(A) in the case of a former spouse, is the amount of the 6 annuity which would be payable under the provisions of 7 section 8442 (including subsection (f) of such section, but 8 without regard to subsection (h) of such section) if such 9 former spouse were a widow or widower entitled to an annuity 10 under such provisions based on the service of the deceased 11 employee, Member, or annuitant, or former employee or Member. 12 (c) The commencement and termination of an annuity 13 payable under this section shall be governed by the terms of 14 the applicable order, decree, agreement, or election, as the 15 case-may be, except that any such annuity-- I I (1) shall not commence before-- 17 (A) the day after the employee, Member, or ?18 annuitant, or former employee or Member, dies; or 19 1.(B) the first day of the second month beginning 20 after the date on which the Office receives written 21 notice of the order, decree, agreement, or election, 22 as the case may be, together with such additional 23 information or documentation as the Office may 24 prescribe; 25 whichever is later; and Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 122 1 (2) shall terminate no later than the last day of 2 the month before the former spouse remarries before 3 becoming 55 years of age or dies. 4 I . (d) For purposes of this chapter, a modification in a 5 decree, order, agreement, or election referred to in 6 subsection (a) shall not be effective-- I I (1) if such modification is made after the 8 retirement or death of the employee, Member, or 9 annuitant, or former employee or Member, concerned; and 1 1 (2) to the extent that such modification involves 11 an annuity under this section. 12 (e) For purposes of this chapter, a decree, order, 13 agreement, or election referred to in subsection (a) shall 14 not be effective, in the case of a former spouse, to the 15 extent that'it is inconsistent with any joint waiver 16 previously executed with respect to such former spouse under 17 section 8416(a). 18 ''(f)(1) Any amount under section 8442(b)(1)(A) which 19 would otherwise be payable to a widow or widower based on the 20 service of another individual shall be paid (in whole or in 21 part) by the Office to a former spouse of such individual if 22 and to the extent expressly provided for in the terms of a 23 court decree of divorce, annulment, or legal separation, or 24 the terms of a court order or court-approved property 25 settlement incident to any decree of divorce, annulment, or 11 - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 .1 1 legal separation. 2 - (2) Paragraph (1) shall apply only to payments made by 3 the Office after the date of receipt in the Office of written 4 notice of such decree, order, or agreement, and such 5 additional information and documentation as the Office may 6 prescribe. 7 (g) Any payment under this section to a person bars 8 recovery by any other person. 9 SUBCHAPTER V--DISABILITY BENEFITS 10 '~S8451. Disability retirement 11 (a)(1)(A) An employee who completes at least 18 months 12 of civilian service creditable under section 8411 and has 13 become disabled shall be retired on the employee's own 14 application or on application by the employee's agency. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I ~ (B) For purposes of this subsection, an employee shall 16 be considered disabled only if the employee is found by the 17 Office to be unable, because of disease or injury, to render 18 useful and efficient service in the employees position. 19 (2)(A) Notwithstanding paragraph (1), an employee shall 20 not be eligible for disability retirement under this section 21 if the employee has declined a reasonable offer of 22 reassignment to a ,vacant position in the employees agency 23 for which the employee is qualified if the position-- 24 ''(i) is at the same grade (or pay level) as the 25 employees most recent grade (or pay level) or higher; 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 1.(ii) is within the employees commuting area; and 2 '.(iii) is one in which the employee would be able to 3 render useful and efficient service. 4 - (B) An employee who is applying for disability 5 retirement under this subchapter shall be considered for 6 reassignment by the employees agency to a vacant position 7 described in subparagraph (A) in accordance with such 8 procedures as the Office shall by regulation prescribe. 9 - (C) An employee is entitled to appeal to the Merit 10 Systems Protection Board under section 7701 any determination 11 that the employee is not unable, because of disease or 12 injury, to render useful and efficient service in a position 13 to which the employee has declined reassignment under this 14 section. -- I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (D) For purposes of subparagraph (A), an employee of 16 the United States Postal Service shall not be considered 17 qualified for a position if such position is in a different 18 craft or if reassignment to such position would be 19 inconsistent with the terms of a collective-bargaining 20 agreement covering the employee. (b) A Member who completes at least 18 months of 22 service as a Member and is found by the Office to be disabled 23 for useful and efficient service as a Member because of 24 disease or injury shall be retired on the Members own 25 application. 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I I (c) An employee or member retiring under this section 2 is entitled to an annuity computed under section 8452. 3 58452. Computation of disability annuity 4 ''(a)(1)(A) Except as provided in paragraph (2), or 5 subsection (b), (c), or (d), the annuity of an annuitant 6 under this subchapter-- ''(i) for the period beginning on the date on which 8 such annuity commences, or is restored (as described in 9 section 8455(b)(2) or (3)), and ending at the end of the 10 twelfth month beginning on or after such date, shall be 11 equal to 60 percent of the annuitant's average pay; and 12 1.(ii) after the end of the period referred to in 13 clause (i), shall be equal to 40 percent of the 14 annuitants average pay. - (B) An annuity computed under this paragraph shall not, 16 for purposes of any adjustment under section 8462 (including 17 any adjustment under subsection (c)(1) of such section), be 18 considered to have commenced until after such annuity ceases 19 to be determined under subparagraph (A)(i). I % (2)(A) For any month in which an annuitant is entitled 21 both to an annuity under this subchapter as computed under 22 paragraph (1) and to a disability insurance benefit under 23 section 223 of the Social Security Act, the annuitant's 24 annuity for such month (as so computed) shall-- 1.(i) if such month occurs during a period referred 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 126 1 to in paragraph,(1)(A)(i), be reduced by 100 percent of 2 the annuitants assumed disability insurance benefit for 3 such month; or 4 (ii) if such month occurs other than during a 5 period referred to in paragraph (1)(A)(i), be reduced by 6 60 percent of the annuitants assumed disability 7 insurance benefit for such month; 8 except that an annuity may not be reduced below zero by 9 reason of this paragraph. (B)(i) For purposes of this paragraph, the assumed 11 disability insurance benefit of an annuitant for any month 12 shall be equal to-- (I) the amount of the disability insurance benefit 14 to which the annuitant would have been entitled under 15 section 223 of the Social Security Act for the month in 16 which the annuity under this subchapter commenced, or was 17 restored, determined as if such annuitant had then 118 satisfied all requirements for entitlement to a benefit 19 under such section, adjusted by % I (II) all adjustments made under section 8462(b) 21 between the date on which the annuity commenced, or was 22 restored, and the start of the month involved (without 23 regard to whether the annuitants annuity was affected by 24 any of those adjustments). 25 For purposes of computing the assumed disability insurance Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I -- l Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 127 1 benefit, the month in which the annuitant's disability began 2 (as determined under section 216(i)(2)(C) of the Social 3 Security Act) shall be the month in which the annuity 4 commenced or, if earlier (and if a determination was actually 5 made) the month determined under such section. ~1 6 (ii) For purposes of applying section 224 of the Social 7 Security Act"to the assumed disability insurance benefit used 8 to compute the reduction under this paragraph, the amount of 9 the annuity under this subchapter which is considered shall 10 be the amount of the annuity as determined before the 11 application of this paragraph. (b)(1) Except as provided in subsection (d), if an 13 annuitant is entitled to an annuity under this subchapter as 14 of the day before the date of the sixty-second anniversary of 15 the annuitan-t's birth (hereinafter in this section referred 16 to as the annuitant's 'redetermination date'), such annuity 17 shall be redetermined under paragraph (3) or (4), as 18 applicable. Effective as of the annuitants redetermination 19 date, the annuity (as so redetermined) shall be in lieu of 20 any annuity to which such annuitant would otherwise be 21 entitled under this subchapter. I ~ (2)(A) In order to carry out paragraphs (3) and (4), 23 the Office shall compute an annuity for the annuitant under .1 (B) In performing a computation under this paragraph-- 11 _ -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (i) creditable service of the annuitant shall be 2 increased by including the period (or periods), if any, 3 before the annuitants redetermination date during which 4 the annuitant was entitled to an annuity under this 5 subchapter; and - (ii) the average pay which would otherwise be used 7 shall be adjusted to reflect all adjustments made under 8 section 8462(b) with respect to any period (or periods) 9 referred to in clause (i) (without regard to whether the 10 annuitant's annuity was affected by any of those 11 adjustments). 12 %% (3) If, as of the day before the annuitant's 13 redetermination date, the annuitants annuity is subject to 14 reduction under subsection (a)(2), the annuitant's 15 redetermined annuity shall be the lesser of-- 16 (A) the amount determined with respect to such 17 annuitant under paragraph (2); or ''(B) subject to the following sentence, the amount 19 (converted so as to be expressed as an annual amount) 20 which would otherwise be payable under this subchapter 21 for the month in which occurs the day before the 22 annuitants redetermination date, as computed under 23 subsection (a) (based on the assumption that the 24 annuitant was entitled to an annuity under this 25 subchapter, and to a disability insurance benefit under Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 129 1 section 223 of the Social Security Act, for the entirety 2 of such month). 3 If the annuitants redetermination date occurs during the 4 period described in subsection (a)(1)(A), the amount used 5 under subparagraph (B) may not exceed the amount (converted 6 so as to be expressed as an annual amount) which would 7 otherwise be payable under this subchapter for the first 8 month after such period, as computed under subsection (a) 9 based on the assumption that the annuitant was entitled to an 10 annuity under this subchapter, and to a disability insurance 11 benefit under section 223 of the Social Security Act, for the 12 entirety of such month. 13 ? (4) If, as of the day before the annuitant's 14 redetermination date, the annuitant's annuity is not subject 15 to reduction under subsection (a)(2), the annuitant's 16 redetermined annuity shall be the lesser of-- ? (A) the amount determined with respect to such 18 annuitant under paragraph (2); or 1.(B) the amount which would be used for such 20 annuitant under subparagraph (B) of paragraph (3) (as 21 determined subject to the second sentence of such 22 paragraph), if such paragraph applied to such annuitant. 23 - (c) Except as provided in subsection (d), the annuity 24 of an annuitant under this subchapter shall be computed under 25 section 8415-- 11 . .. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I I (1) such annuity commences, or is restored, 2 beginning on or after the redetermination date of the 3 annuitant; or 4 " (2) as of the day on which such annuity commences, 5 or is restored, the annuitant satisfies the age and 6 service requirements for entitlement to an annuity under 7 section 8412 (other than subsection (g) of such section). I ~ (d) The annuity to which an annuitant is entitled under 9 this section shall not be less than the amount of an annuity 10 computed under section 8415 (excluding subsection (f) of such 11 section). 12 ~?8453. Application .. A claim may be allowed under this subchapter only if 14 application is filed with the Office before the employee or 15 Member is separated from the service or within 1 year 16 thereafter. This time limitation may be waived by the Office 17 for an employee or Member who, at the date of separation from 18 service or within 1 year thereafter, is mentally incompetent 19 if the application is filed with the Office within 1 year 20 from the date of restoration of the employee or Member to 21 competency or the appointment of a fiduciary, whichever is 22 earlier. 23 58454. Medical examination %, An annuitant receiving a disability retirement annuity 25 from the Fund shall be examined under the direction of the 11 -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 Office-- 2 (1) at the end of 1 year from the date of the 3 disability retirement; and 4 ~% (2) annually thereafter until becoming 60 years of 5 age; 6 unless the disability is permanent in character. If the 7 annuitant fails to submit to examination as required by this 8 section, payment of the annuity shall be suspended until 9 continuance of the disability is satisfactorily established. 10 . *58455. Recovery; restoration of earning capacity Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I . (a)(1) If an annuitant receiving a disability 12 retirement annuity from the Fund recovers from the disability 13 before becoming 60 years of age, payment of the annuity 14 terminates on reemployment by the Government or 1 year after 15 the date on which the office determines that the annuitant 16 has recovered, whichever is earlier. ~ 1 17 (2) If an annuitant receiving a disability annuity from 1.8 the Fund, before becoming 60 years of age, is restored to an 19 earning capacity fairly comparable to the current rate of pay 20 of the position occupied at the time of retirement, payment 21 of the annuity terminates 180 days after the end of the 22 calendar year in which earning capacity is so restored. 23 Earning capacity is deemed restored if in any calendar year 24 the income of the annuitant from wages or self-employment or 25 both equals at least 80 percent of the current rate of pay of 11 - - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 the position occupied immediately before retirement. I I (b)(1) If an annuitant whose annuity is terminated 3 under subsection (a) is not reemployed in a position in which 4 that individual is subject to this chapter, such individual 5 is deemed, except for service credit, to have been 6 involuntarily separated from the service for the purpose of 7 subchapter I.I of this chapter as of the date of termination 8 of the disability annuity, and after that termination is 9 entitled to annuity under the applicable provisions of such 10 subchapter. - (2) If an annuitant whose annuity is terminated under 12 subsection (a)(2)-- - (A) is not reemployed in a position subject to this 14 chapter; and ? (B) has not recovered from the disability for which 16 that individual was retired; 17 the annuity of such individual shall be restored at the 18 applicable rate under section 8452 effective the first of the 19 year following any calendar year in which such individual's 20 income from wages or self-employment or both is less than 80 21 percent of the current rate of pay of the position occupied 22 immediately before retirement. I % (3) If an annuitant whose annuity is terminated because 24 of a medical finding that the individual has recovered from 25 disability is not reemployed in a position in which such Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 133 1 individual is subject to this chapter, the annuity of such 2 individual shall be restored at the applicable rate under 3 section 8452 effective from the date on which the office 4 determines that there has been a recurrence of the 5 disability. 6 (4) Paragraphs (2) and (3) shall not apply in the case 7 of an annuitant receiving an annuity from the Fund under 8 subchapter II of this chapter. 9 ~'S8456. Relationship to workers' compensation 11(a)(1) An individual is not entitled to receive an 11 annuity under this subchapter and compensation for injury to 12 or disability of the individual under subchapter I of chapter 13 81 covering the same period of time. 14 "(2) Paragraph (1) does not bar the right of a claimant 15 to the greater benefit conferred by either subchapter 16 referred to in such paragraph for any part of the period 17 referred to in such paragraph. 18 .1 (3) Paragraph (1) and the provisions of subchapter I of 19 chapter 81 do not deny an individual an annuity which the 20 individual is entitled to receive under this chapter on 21 account of service performed by the individual and do not 22 deny any concurrent benefit to the individual under 23 subchapter I of chapter 81 on account of the death of another 24 individual. 25 (b)(1) Subject to paragraph (2), an individual's 11 -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 134 1 receipt of a lump-sum payment for compensation under section 2 8135 shall not affect the individuals entitlement to an 3 annuity under this subchapter. 4 1.(2) If an annuity is payable under this subchapter by 5 reason of the same disability for which a lump-sum payment of 6 compensation referred to in paragraph (1) has been made, so 7 much of the compensation as has been paid for a period 8 extended beyond the date payment of the annuity commences, as 9 determined by the Department of Labor, shall be refunded to 10 that Department for credit to the Employees' Compensation 11 Fund. Before the individual may receive the disability 12 annuity, the individual shall-- % (A) refund to the Department of Labor the amount 14 representing the commuted compensation payments for the 15 extended period; or 16 - (B) authorize the deduction of the amount from the 17 annuity. 18 Deductions from the annuity may be made from accrued or 19 accruing payments. The amounts deducted and withheld from the 20 annuity shall be transmitted to the Department of Labor for 21 reimbursement to the Employees' Compensation Fund. When the 22 Department of Labor finds that the financial circumstances of 23 an individual entitled to an annuity under this subchapter 24 warrant deferred refunding under this paragraph, deductions 25 from the annuity may be prorated against and paid from 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 135 1 accruing payments in such manner as the Department determines 2 appropriate. 3 ~'S8457. Military reserve technicians 4 (a)(1) Except as provided in paragraph (2) or (3), an 5 individual shall be retired under this subchapter if the 6 individual-- .1 (A) is separated from employment as a military 8 reserve technician by reason of a disability that 9 disqualifies the individual from membership in a reserve 10 component of the Armed Forces specified in section 261(a) 11 of title 10 or from holding the military grade required 12 for such employment; 13 (B) is not considered to be disabled under section 14 8451(a)(1)(B); 15 11 (C) is not appointed to a position in the 16 Government.(whether under subsection (c) or otherwise); 17 and %(D) has not declined an offer of an appointment to 19 a position in the Government under subsection (c). '(2) Payment of any annuity for an individual pursuant 21 to this section terminates-- - (A) on the date the individual is appointed to a 23 position in the Government (whether pursuant to 24 subsection (c) or otherwise); - (B) on the date the individual declines an offer of .11 - - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 136 1 appointment to a position iri the Government under 2 subsection (c); or %% (C) as provided under section 8455(a). %% (3) An individual eligible to retire under section 5 8414(c) shall not be eligible to retire under this section. - (b) Any individual applying for or receiving any 7 annuity pursuant to this section shall, in accordance with 8 regulations prescribed by the Office, be considered by any 9 agency of the Government before any vacant position in the 10 agency is filled if-- %(1) the position is located within the commuting 12 area of the individuals former position; %~ (2) the individual is qualified to serve in such 14 position, as determined by the head of the agency; and (3) the position is at the same grade or equivalent 16 level as the position from which the individual was 17 separated. 18 SUBCHAPTER VI--GENERAL AND ADMINISTRATIVE PROVISIONS 19 "S8461. Authority of the Office of Personnel Management .. (a) The Office shall pay all benefits that are payable 21 under subchapter II, IV, V, or VI of this chapter from the 23 (b) The Office shall administer all provisions of this 24 chapter not specifically required to be administered by the 25 Board, the Executive Director, the Secretary of Labor, or any 11, - -- - _. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 other officer or agency. 2 (c) The Office shall adjudicate all claims under the 3 provisions of this chapter administered by the Office. 4 .1(d) The Office shall determine questions of disability 5 and dependency arising under the provisions of this chapter 6 administered by the Office. Except to the extent provided 7 under subsection (e), the decisions of the Office concerning 8 these matters are final and conclusive and are not subject to 9 review. The Office may direct at any time such medical or 10 other examinations as it considers necessary to determine the 11 facts concerning disability or dependency of an individual 12 receiving or applying for annuity under the provisions of 13 this chapter administered by the Office. The Office may 14 suspend or deny annuity for failure to submit to examination. ' ' 15 (e)(1). Subject to paragraph (2), an administrative 16 action or order affecting the rights or interests of an 17 individual or of the United States under the provisions-of 18 this chapter administered by the Office may be appealed to 19 the Merit Systems Protection Board under procedures 20 prescribed by the Board. 21 .. (2) In the case of any individual found by the Office 22 to be disabled in whole or in part on the basis of the 23 individual's mental condition, and that finding was made 24 pursuant to an application by an agency for purposes of 25 disability retirement under section 8451, the procedures 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 138 1 under section 7701 shall apply and the decision of the Board 2 shall be subject to judicial review under section 7703. 3 (f) The Office shall fix the fees for examinations made 4 under subchapter V of this chapter by physicians or surgeons 5 who are not medical officers of the United States. The fees and reasonable traveling and other expenses incurred in 7 connection with the examinations are paid from appropriations 8 for the cost of administering the provisions of this chapter 9 administered by the Office. 11 (g) The Office may prescribe regulations to carry out 11 the provisions of this chapter administered by the Office. 12 (h)(1) Each-Government agency shall furnish the 13 Director with such information as the Director determines 14 necessary in order to administer this chapter. 15 1.(2) The Director, in consultation with the officials 16 from whom such information is requested, shall establish (by 17 regulation or otherwise) such safeguards as are necessary to 18 ensure that information made available under this subsection 19 is used only for the purpose authorized. 11(i) In making a determination of 'actuarial 21 equivalence' under this chapter, the economic assumptions 22 used shall be the same as the economic assumptions most 23 recently used by the Office (before the determination of 24 actuarial equivalence involved) in determining the normal- 25 cost percentage of the System. 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ~I (j)(1) Notwithstanding any other provision of this 2 chapter, the Director of Central Intelligence shall, in a . 3 manner consistent with the administration of this chapter by 4 the office, and to the extent considered appropriate by the 5 Director of Central Intelligence-- (A) determine entitlement to benefits under this .7 chapter based on the service of employees of the Central 8 Intelligence Agency; 9 - (B) maintain records relating to the service of 10 such employees; 11 '(C) compute benefits under this chapter based on 12 the service of such employees; 13 (D) collect deposits to the Fund made by such 14 employees, their spouses, and their former spouses; %~(E) authorize and direct disbursements from the 16 Fund to the extent based on service of such employees; 17 and 18 ? (F) perform such other functions under this.chapter 19 (other than under subchapters III and VII of this 20 chapter) with respect to employees of the Central 21 Intelligence Agency as the Director of Central 22 Intelligence, in consultation with the Director of the 23 Office of Personnel Management, determines to be 24 appropriate. 25 (2) The Director of the Office of Personnel Management 11 - - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 140 1 shall furnish such information and, on a reimbursable basis, 2 such services to the Director of Central Intelligence as the 3 Director of Central Intelligence requests to carry out 4 paragraph (1). (k)(1) The Director of Central Intelligence, in consult'ation with the Executive Director of the Federal 7 Retirement Thrift Investment Board, may-- 8 " (A) maintain exclusive records relating to 9 elections, contributions, and accounts under the Thrift 10 Savings Plan provided in subchapter III of this chapter 11 in the case of employees of the Central Intelligence 12 Agency; 13 (B) provide that contributions by, or on behalf of, 1.4 such employees to the Thrift Savings Plan be accounted 15 for by such Executive Director in aggregate amounts; 16 .1 (C) make the necessary disbursements from, and the 17 necessary allocations of earnings, losses, and charges 18 to, individual accounts of such employees under the 19 Thrift Savings Plan; and 10 (D) perform such other functions under subchapters 21 III and VII of this chapter with respect to employees of 22 the Central Intelligence Agency as the Director of 23 . Central Intelligence, in consultation with the Executive 24 Director of the Federal Retirement Thrift Investment 25 Board, determines to be appropriate. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I .(2) The Executive Director of the Federal Retirement 2 Thrift Investment Board may not exercise authority under this 3 chapter in the case of employees of the Central Intelligence 4 Agency to the extent that the Director of Central 5 Intelligence exercises authority provided in paragraph (1). 6 (3) The Executive Director of the Federal Retirement 7 Thrift Investment Board shall furnish such information and, 8 on a reimbursable basis, such services to the Director of 9 Central Intelligence as the Director of Central Intelligence 10 determines necessary to carry out this subsection. 11 (1) Subsection (h)(1), and sections 8439(b) and 12 8474(c)(4), shall be applied with respect to information 13 relating to employees of the Central Intelligence Agency in a 14 manner that protects intelligence sources, methods, and 15 activities. ..(m)(1) The Director of Central Intelligence, in 17 consultation with the Director of the Office of Personnel 18 Management and the Executive Director of the Federal 19 Retirement Thrift Investment Board, shall by regulation 20 prescribe appropriate procedures to carry out subsections 21 (j), (k), and (1). 22 (2) The regulations shall provide procedures for the 23 Director of the Office of Personnel Management to inspect and 24 audit disbursements from the Fund, and from the Thrift, 25 Savings Fund, under this chapter. 11 1 - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 _ JL_ Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 (3) The Director of Central Intelligence shall submit 2 the regulations prescribed under paragraph (1) to the Select 3 Committee on Intelligence of the Senate and the Permanent 4 Select Committee on Intelligence of the ~:;ouse of 5 Representatives before the regulations t-ke effect.''. 6 '4S8462. Cost-of-living adjustments ? (a) For the purpose of this section-- ? 8 (1) the term 'base quarter', as used with respect 9 to a year, means the calendar quarter ending on September 10 30 of such year; ? (2) the price index for a base quarter is the 12 arithmetical mean of such index for the 3 months 13 comprising such quarter; and 14 (3) the term percent change in the price index', 15 as used.with respect to a year, means the percentage 16 derived by-- (A) reducing-- ~(i) the price index for the base quarter of such year, by - (ii) the price index for the base quarter of the preceding year in which an adjustment under this subsection was made; '(B) dividing the difference under subparagraph (A) by the price index referred to in subparagraph (A)(ii); and if -- - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 % (C) multiplying the quotient under subparagraph 2 (B) by 100. 3 (b)(1) Except as provided in subsection (c), effective 4 December 1 of any year in which an adjustment under this 5 subsection is to be made, as determined under paragraph (2), 6 each annuity payable from the Fund under this chapter (other .7 than an annuity under section 8443) having a commencing date 8 not later than such December 1 shall be adjusted as follows: 9 (A) If the percent change in the price index for 10 the year does not exceed 3 percent, each annuity subject 11 to adjustment under this subsection shall be increased by 12 the lesser of-- 13 ''(i) the percent change in the price index 14 (rounded to the nearest one-tenth of 1 percent); or 15 (ii) 2 percent. 16 (B) If the percent change in the price index for 17 the year exceeds 3 percent, each annuity subject to 18 adjustment under this subsection shall be increased by 19 the excess of-- 20 ''(i) the percent change in the price index 21 (rounded to the nearest one-tenth of 1 percent), over percent. 23 (2) An adjustment under this subsection shall be made 24 in a year only if the price index for the base quarter of 25 such year exceeds the price index for the base quarter of the A - _ __ Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 144 1 preceding year in which an adjustment under this subsection 2 was made. 3 (3) An annuity under this chapter shall not be subject 4 to adjustment under section 8340. - (c.) Eligibility for an annuity increase under this 6 section is governed by the commencing date of each annuity 7 payable from the Fund as of the effective date of an 8 increase, except as follows: ..(1) The first increase (if any) made under 10 subsection (b) to an annuity which is payable from the 11 Fund to an annuitant or survivor (other than a child 12 under section 8443) whose annuity has not been increased 13 under this subsection or subsection (b) shall be equal to 14 the product (adjusted to the nearest one-tenth of 1 15 percent) of-- 25 (A) one-twelfth of the applicable percent change computed under subsection (b), multiplied by (B) the number of months (not to exceed 12 months, counting any portion of a month as a month)-- (i) for which the annuity was payable from the Fund before the effective date of the increase; or (ii) in the case of a survivor of a deceased annuitant whose annuity has-not been so increased, since the annuity was first payable to Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 the deceased annuitant. I % (2) Effective from its commencing date, an annuity 3 payable from the Fund to an annuitant's survivor (other 4 than a widow or widower whose annuity is computed under 5 section 8442(g) or a child under section 8443) shall be 6 increased by the total percentage by which the deceased 7 annuitant's annuity had been increased under this section 8 during the period beginning on the date the deceased 9 annuitants annuity commenced and ending on the date of 10 the deceased annuitants death. 1.(3)(A) An adjustment under subsection (b) for any 12 year shall not be effective with respect to the annuity 13 of an annuitant who is under 62 years of age as of the 14 date on which such adjustment would otherwise first take 15 effect. 16 - (B)(i) Except as provided in clause (ii), this 17 paragraph applies with respect to an annuitant under 18 section 8412, 8413, or 8414. 19 (ii) This paragraph does not apply with respect to 20 an annuitant under subsection (d) or (e) of section 8412 21 or (in the case of an annuitant separated from service as 22 a military reserve technician as a result of disability) 23 under section 8414(c). %% (4) The first increase (if any) made under "25 subsection (b) to an annuity which is payable from the Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 146 1 Fund to a widow or widower whose annuity is computed 2 under section 8442(g) shall be equal to the product 3 (adjusted to the nearest one-tenth of 1 percent) of-- (A) one-twelfth of the applicable percent change computed under subsection (b), multiplied by I % (B) the number of months (not to exceed 12 7 month, counting any portion of a month as a month) (i) the effective date of the adjustment last made under this section in the annuity of the annuitant on whose service on the widow's or widowers annuity is based; or 11 (ii) if the annuity of the annuitant (referred to in clause (i)) has not been increased under this section, the commencement date of such annuitants annuity (determined subject to section 8452(a)(1)(B)). ~% (d) The monthly installment of an annuity after 19 adjustment under this section shall be rounded to the next 20 lowest dollar. However, the monthly installment shall, after 21 adjustment, reflect an increase of at least $1. 1.(e) The $15,000 amount referred to in section 23 8442(b)(1)(A)(ii) shall be increased at the same time that, 24 and by the same percent as the percentage by which, annuities 25 under subchapter III of chapter 83 are increased. . __ Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 , 'S8463. Rate of benefits Each annuity payable from the Fund is stated as an 3 annual amount, one-twelfth of which, rounded to the next 4 lower dollar, constitutes the monthly rate payable on the 5 first business day of the first month beginning after the 6 month for which it has accrued. 7 S8464. Commencement and termination of annuities of 8 employees and Members (a)(1) Except as otherwise provided in this chapter-- '(A) an annuity payable from the Fund commences on 11 the first day of the month after-- I % (i) separation from the service, in the case of 13. an employee or Member retiring under section 8412, or 14 subsection (a) or (b)(1)(B) of section 8414; or 15 11 (ii) pay ceases, and the applicable age and 16 service requirements are met, in the case of an 17 employee or Member retiring under sectior. 8413; 18 (B) an annuity payable from the Fund commences on 19 the day after separation from the service in the case of 20 an employee retiring under subsection (b)(1)(A) or (c) of 21 section 8414; and '(C) an annuity payable from the Fund commences on 23 the day after separation from the service or the. day 24 after pay ceases and the requirements for title to an 25 annuity are met in the case of an employee or_Member Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 retiring under section 8451. 2 (2) Notwithstanding paragraph (1)(A)(i), an annuity 3 payable-from the Fund commences on the day after separation 4 from the service in the case of an employee or Member- -I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 %,(A) who retires under section 8412; and 6 (B) whose separation occurs upon the expiration of 7 a term, (or other period) for which the individual was 8 appointed or elected. ~1 9 (b) Except as.otherwise provided in this chapter, the 10 annuity of an annuitant under subchapter II or V of this 11 chapter terminates on the date death or other terminating 12 event occurs. 13 .-S8465. Waiver, allotment, and assignment of benefits %(a) An individual entitled to an annuity payable from 15 the Fund may decline to accept all or any part of the amount .:S of the annuity by a waiver signed and filed with the Office. 17 The waiver may be revoked in writing at any time. Payment of 18 the annuity waived may not be made for the period during 19 which the waiver is in effect. %%(b) An individual entitled to an annuity payable from 21 the Fund may make allotments or assignments of amounts from 22 the annuity for such purposes as the Office considers 23 appropriate. 24 "S8466. Application for benefits 25 (a) No payment of benefits based on the service of an 11 _ Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 149 1 employee or Member shall,be made from the Fund unless an 2 application for payment of the benefits is received by the 3 Office before the one hundred and fifteenth anniversary of 4 the birth of the employee or Member. (b) Notwithstanding subsection (a), after the death of 6 an employee, Member, or annuitant, or former employee or 7 Member, a benefit based on the service of such employee, 8 Member, or annuitant, or former employee or Member, shall not 9 be paid under subchapter II or IV of this chapter unless an 10. application therefor is received by the Office within 30 11 years after the death or other event which establishes the 12 entitlement to the benefit. (c) Payment due a minor, or an individual mentally 14 incompetent or under other legal disability, may be made to 15 the person who is constituted guardian or other fiduciary by 16 the law of the State of residence of the claimant or is 17 otherwise legally vested with the care of the claimant or his 18 estate. If a guardian or other fiduciary of the individual 19 under legal disability has not been appointed under the law 20 of the State of residence of the claimant, payment may be 21 made to any person who, in the judgment of the Office, is 22 responsible for the care of the claimant, and the payment 23 bars recovery by any other person. 24 58467. Court orders r25 (a) Payments under this chapter which would otherwise 11 - . __ Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 150 1 be made to an employee, Member,?or annuitant (including an 2 employee, member, or annuitant as defined under section 8331) 3 based on the service of that individual shall be paid (in 4 whole or in part) by the Office or the Executive Director (as 5 the case may be), to another person if and to the extent that 6 the terms of any court decree of divorce, annulment, or legal 7 separation, or the terms. of any court order or court-approved 8 property settlement agreement incident to any court decree of 9 divorce, annulment, or legal separation expressly provide. 10 Any payment under this subsection to a person bars recovery 11 by any other person. 12 II(b) Subsection (a) shall apply only to payments made by 13 the Office or the Executive Director under this chapter after 14 the date on which the Office or the Executive Director (as 15 the case may be) receives written notice of such decree, 16 order, or agreement, and such additional information and 17 documentation as the Office or the Executive Director may 18 require. 19 '?8468. Annuities and pay on reemployment 20 ~1(a) If an annuitant becomes employed in an appointive 21 or elective position in the Government, payment of any 22 annuity under subchapter II or V of this chapter to the 23 annuitant terminates effective on the date of the employment. 24 The annuitants service on and after the date the annuitant 25 becomes so employed is covered by this chapter unless such Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 151 1 service is performed as a justice or judge of the United 2 States (as defined by section 451 of title 28) or as an 3 employee subject to another retirement system for Government 4 employees. Upon termination of the employment, the rights of 5 the annuitant under subchapter II or V of this chapter (as 6 the case may be) shall be redetermined. If the annuitant dies 7 while still so employed, a survivor annuity payable with 8 respect to the deceased annuitant shall be redetermined as if 9 the employment had otherwise terminated on the date of death. 10 II(b) The amount of an annuity resulting from a 11 redetermination of rights under this chapter pursuant to _ 12 subsection (a) shall not be less than the amount of the 13 terminated annuity plus any increases which (but for the 14 reemployment) would have been payable under section 8462 15 after the termination of the annuity and before the 16 commencement of the redetermined annuity. I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (c) The redetermined annuity commences on the first day 18 of the month after termination of employment. 19 --S8469. Withholding of State income taxes 20 (a) The Office shall, in accordance with this section, 21 enter into an agreement with any State within 120 days of a 22 request for agreement from the proper State official. The 23 agreement shall provide that the Office shall withhold State 24 income tax in the case of the monthly annuity of any 25 annuitant who voluntarily requests, in writing, such 11 - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 152 1 withholding. The amounts withheld during any calendar quarter 2 shall be held in the Fund and disbursed to the States during 3 the month following that calendar quarter. (b) An annuitant may have in effect at any time only 5 one request for withholding under this section, and an annuitant may not have more than two such requests in effect 7 during any one calendar year. (c) Subject to subsection (b), an annuitant may change 9 the State designated by that annuitant for purposes of having 10 withholdings made, and may request that the withholdings be 11 remitted in accordance with such change. An annuitant also 12 may revoke any request of that annuitant for withholding. Any 13 change in the State designated or revocation is effective on 14 the first day of the month after the month in which the 15 request or the revocation is processed by the Office, but in 16 no event later than on the first day of the second month 17 beginning after the day on which such request or revocation 18 is received by the office. 19 ''(d) This section does not give the consent of the 20 United States to the application of a statute which imposes 21 more burdensome requirements on the United States than on 22 employers generally, or which subjects the United States or 23 any annuitant to a penalty or liability because of this 24 section. The Office may not accept pay from a State for 25 services performed in withholding State income taxes from Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 153 1 annuities. Any amount erroneously withheld from an annuity 2 and paid to a State by the Office shall be repaid by the 3 State in accordance with regulations issued by the Office. 4 (e) For the purpose of this section-- 5 (1) the term State means a State, the District of 6 Columbia, or any territory or possession of the United 7 States; and 8 '(2) the term 'annuitant' includes a survivor who is 9 receiving an annuity from the Fund. 10 58470. Exemption from legal process; recovery of payments 11 (a) An amount payable under subchapter II, IV, or V-of 12 this chapter is not assignable, either in law or equity, 13 except under the provisions of section 8465 or 8467, or 14 subject to execution, levy, attachment, garnishment or other 15 legal process, except as otherwise may be provided by Federal 16 laws. 17 - (b) Recovery of payments under subchapter II, IV, or V 18 of this chapter may not be made from an individual when, in 19 the judgment of the Office, the individual is without fault 20 and recovery would be against equity and good conscience. 21 Withholding or recovery of money paid under subchapter II, 22 IV, or V of this chapter on account of a certification or 23 payment made by a former employee of the United States in the 24 discharge of his official duties may be made only if.the head 25 of the agency on behalf of which the certification or payment Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 154 1 was made certifies to the office that the certification or 2 payment involved fraud on the part of the former employee. 3 11 SUBCHAPTER VII--FEDERAL RETIREMENT THRIFT INVESTMENT 4 MANAGEMENT SYSTEM 5 ~_S 8471. Definitions 9 Thrift Savings Fund under subchapter III of this chapter; 10 '(2) the term 'Council' means the Employee Thrift 11 Advisory Council established under section 8473 of this 12 title; 8 (other than a participant) entitled to payment from the 13 (3) the term 'participant' means an individual for 14 whom an account has been established under section 8439 15 of this title; 16 (4) the term person means an individual, 17 partnership, joint venture, corporation, mutual company, 18 joint-stock company, trust, estate, unincorporated 19 organization, association, or labor organization; and 20 - (5) the term 'Thrift Savings Fund' means the Thrift 21 Savings Fund established under section 8437 of this 22 title. 23 8472. Federal Retirement Thrift Investment Board For the purposes of this subchapter-- '(1) the term beneficiary means an individual 11 (a) There is established in the Executive branch of the 25 Government a Federal Retirement Thrift Investment Board. 11 - - - _. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 (b) The Board shall be composed of-- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ~(1) 3 members appointed by the President, of whom 1 3 shall be designated by the President as Chairman; and (2) 2 members appointed by the President, of whom-- 5 (A) 1 shall be appointed by the President after 6 taking into consideration the recommendation made by 7 the Speaker of the House of Representatives in 8 consultation with the minority leader of the House of 9 Representatives; and 10 (B) 1 shall be appointed by the President after 11 taking into consideration the recommendation made-by 12 the majority leader of the Senate in consultation 13 with the minority leader of the Senate. 14 (c) Appointments under subsection (a) shall be made by 15 and with the advice and consent of the Senate. I I (d) Members of the Board shall have substantial 17 experience, training, and expertise in the management of 18 financial investments and pension benefit plans. 19 ''(e)(1) A member of the Board shall be appointed for a 20 term of 4 years, except that of the members first appointed-- 21 (A) the Chairman shall be appointed for a term of 4 22 years; ~I (B) the members appointed under subsection (b)(2) 24 shall be appointed for terms of 3 years; and. 25 (C) the remaining members shall be appointed for Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 terms of 2 years. 2 (2)(A) A vacancy on the Board shall be filled in the 3 manner in which the original appointment was made and shall 4 be subject to any conditions which applied with respect to 5 the original appointment. %($) An individual chosen to fill a vacancy shall be 7 appointed for the unexpired term of the member replaced. .% (3) The term of any member shall not expire before the 9 date on which the member.s successor takes office. 10 " (f) The Board shall-- (1) establish policies for-- 'I (A) the investment and management of the Thrift 13 Savings Fund; and (B) the administration of subchapter III of 15 this-chapter; - (2) review the performance of investments made for 17 the Thrift Savings Fund; and 18 (3) review and.approve the budget of the Board. 19 (g)(1) The Board may-- 20 (A) adopt, alter, and use a seal; (B) except as provided in paragraph (2), direct the 22 Executive Director to take such action as the Board 23 considers appropriate to carry out the provisions of this 24 subchapter and subchapter III of this chapter and the 25 policies of the Board; Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I % (C) upon the concurring votes of four members, 2 remove the Executive Director from office for good cause 3 shown; and 4 ~% (D) take such other actions as may be necessary to 5 carry out the functions of the Board. 6 (2) Except in the case of investments required by 7 section 8438 of this title to be invested in securities of 8 the Government, the Board may not direct the Executive 9 Director to invest or to cause to be invested any sums in the 10 Thrift Savings Fund in a specific asset or to dispose of or 11 cause to be disposed of any specific asset of such Fund. - "(h) The members of the Board shall discharge their 13 responsibilities solely in the interest of participants and 14 beneficiaries under this subchapter and subchapter III of 15 this chapter. 16 ~~? 8473. Employee Thrift Advisory Council 17 (a) The Board shall establish an Employee Thrift 18 Advisory Council. The Council shall be composed of 14 members 19 appointed by the Chairman of the Board in accordance with 20 subsection (b). 21 I~(b) The Chairman shall appoint 14 members of the 22 Council, of whom-- (1) 4 shall be appointed to represent the. 24 respective labor organizations representing (as exclusive 25 representatives) the first, second, third, ar)d fourth Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 158 1 largest numbers of individuals subject to chapter 71 of 2 this title; 3 (2) 2 shall be appointed to represent the 4 respective labor organizations which have been accorded 5 exclusive recognition under section 1203(a) of title 39 6 representing the largest and second largest numbers of 7 individuals employed by the United States Postal Service; (3) 1 shall be appointed to represent the labor 9 organization which has been accorded exclusive 10 recognition under section 1203(a) of title 39 11 representing the largest number of individuals employed 12 by the United States Postal Service as rural letter 13 carriers; I ~ (4) 2 shall be appointed to represent the 15 respective managerial organizations (other than an 16 organization described in paragraph (5)) which consult 17 with the United States Postal Service under section 18 1004(b) of title 39 and which represent the largest and 19 second largest numbers of individuals employed by the 20 United States Postal Service as managerial personnel; (5) .1 shall be appointed to represent the 22 supervisors' organization as defined in section 1004(h) 23 of title 39; 24 (6) 1 shall be appointed to represent employee 25 organizations having as a purpose promoting the interests 11 .. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 of women in Government service; Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 .% (7) 1 shall be appointed to represent the 3 organization representing the largest number of 4 individuals receiving annuities under this chapter or 5 chapter 83 of this title; 6 (8) 1 shall be appointed to represent the 7 organization representing the largest number of 8 individuals subject to the Performance Management and 9 Recognition System under chapter 54 of this title; and (9) 1 shall be appointed to represent the 11 organization representing the largest number of members 12 of the Senior Executive Service. 13 11(c)(1) The Chairman of the Board shall designate 1 14 member of the Council to serve as head of the Council. 15 (2) A member of the Council shall be appointed for a 16 term of 4 years. 17 - (3)(A) A vacancy in the Council shall be filled in the 18- manner in which the original appointment was made and'shall 19 be subject to any conditions which applied with respect to 20 the original appointment. I ~ (B) An individual chosen to fill a vacancy shall be 22 appointed for the unexpired term of the member replaced. (C) The term of any member shall not expire before the 24 date on which the member's successor takes office. 25 (d) The Council shall act by resolution of a,majority 11. . _.... - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 of the members. 2 (e) The Council shall-- 3 ''(1) advise the Board and the Executive Director on 4 matters relating to-- (A) investment policies for the Thrift Savings .6 Fund; and ? (B) the administration of this subchapter and 8 subchapter III of this chapter; and ~1 (2) perform such other duties as the Board may 10 direct with respect to investment funds established in 11 accordance with subchapter III of this chapter. 12 ~1(f) Section 14(a)(2) of the Federal Advisory Committee 13 Act shall not apply to the Council. 14 8474. Executive Director 15 .(a)(1) The Board shall appoint, without regard to the 16 provisions of law governing appointments in the competitive 17 service, an Executive Director by action agreed to by a 18 majority of the members of the Board. (2) The Executive Director shall have substantial 20 experience, training, and expertise in the management of 21 financial investments and pension benefit plans. (b) The Executive Director shall-- I ~ (1) carry out the policies established by the 24 Board; I I 25 (2) invest and manage the Thrift Savings,Fund in Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 161 1 accordance with the investment policies and other 2 policies established by the Board; 3 (3) purchase annuity contracts and provide for the 4 payment of other benefits under subchapter III of this 5 chapter; I % (4) administer the provisions of this subchapter 7 and subchapter III of this chapter; (5) prescribe such regulations (other than 9 regulations relating to fiduciary responsibilities) as 10 may be necessary for the administration of this 11 subchapter 'and subchapter III of this chapter; and. 12 .1 (6) meet from time to time with the Council upon 13 request of the Council. ~I (c) The Executive Director may-- I . (1) prescribe such regulations as may be necessary 16 to carry out the responsibilities of the Executive 17 Director under this section, other than regulations- 18 relating to fiduciary responsibilities; 19 (2) appoint such personnel as may be necessary to 20 carry out the provisions of this subchapter and 21 subchapter III of this chapter; (3) subject to approval by the Board, procure the 23 services of experts and consultants under section 3109 of 24 this title; 25 (4) secure directly from an Executive agency, the A . - -- - . -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 IL Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 162 1 United States Postal Service, or the Postal Rate 2 Commission any information necessary to carry out the 3 provisions of this subchapter or subchapter III of this 4 chapter and policies of the Board; (5) make such payments out of sums in the Thrift .6 Savings Fund as the Executive Director determines are 7 necessary to carry out the provisions of this subchapter 8 and subchapter III of this chapter and the policies of 9 the Board; 10 (6) pay the compensation, per diem, and travel 11 expenses of individuals appointed under paragraphs (2), 12 (3), and (7) of this subsection from the Thrift Savings 13 Fund; 14 (7) accept and use the services of individuals 15 employed intermittently in the Government service and 16 reimburse such individuals for travel expenses, as 17 authorized by section 5703 of this title, including per 18 diem as authorized by section 5702 of this title; 19 (8) except as otherwise expressly prohibited by law 20 or the policies of the Board, delegate any of the 21 Executive Directors functions to such employees under 22 the Board as the Executive Director may designate and 23 authorize such successive redelegations of such functions 24 to such employees under the Board as the Executive 25 Director may consider to be necessary or appropriate; and ' -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (9) take such other actions as are appropriate to 2 carry out the functions of the Executive Director. 3 8475. Investment policies The Board shall develop investment policies under 5 section 8472(f)(1) of this title which provide for-- 6 (1) prudent investments suitable for accumulating 7 funds for payment of retirement income; and 8 (2) low administrative costs. 9 ~'S 8476. Administrative provisions 10 (a) The Board shall meet-- (1) not less than once during each month; and I % (2) at additional times at the call of the 13 Chairman. 14 (b)(1) Except as provided in sections 8472(g)(1)(C) and 15 8474(a)(1) of this title, the Board shall perform the 16 functions and exercise the powers of the Board on a majority 17 vote of a quorum of the Board. 18 (2) A vacancy on the Board shall not impair the. 19 authority of a quorum of the Board to perform the functions 20 and exercise the powers of the Board. I % (c) Three members of the Board shall constitute a 22 quorum for the transaction of business. 23 '.(d)(1) Each member of the Board who is not an officer 24 or employee of the Federal Government shall be compensated at 25 the daily rate of basic pay for grade GS-18 of the General 11 -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 164 1 Schedule for each day during which such member is engaged in 2 performing a function of the Board. % 1 (2) A member of the Board or the Council shall be paid 4 travel, per diem, and other necessary expenses under 5 subchapter I of chapter 57 of this title while traveling away 6 from such members home or regular place of business in the 7 performance of the duties of the Board or the Council, as the 8 case may be. - (3) Payments authorized under this subsection shall be 10 paid from the Thrift Savings Fund. (e) The accrued annual leave of any employee who is a 12 member of the Board or the Council shall not be charged for 13 *any time used in performing services for the Board or the 14 Council. 15 ~'? 8477. Fiduciary responsibilities; liability and penalties .1 (a) For the purposes of this section-- 17 1.(1) the term 'account' is not limited by the 18 definition provided in section 8401(1); ~1 (2) the term 'adequate consideration' means-- - (A) in the case of a security for which there 21 is a generally recognized market-- 22 '(i) the price of the security prevailing on a national securities exchange which is registered under section 6 of the Securities Exchange Act of 1934; or . - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 10 16 17 18 19 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 165 (ii) if the security is not traded on such a national securities exchange, a price not less favorable to the Thrift Savings Fund than the offering price for the security as established by the current bid and asked prices quoted by persons independent of the issuer and of any party in interest; and (B) in the case of an asset other than a security for which there is a generally recognized market, the fair market value of the asset as determined in good faith by a fiduciary or fiduciaries in accordance with regulations-prescribed by the Secretary of Labor; (3) the term 'fiduciaryI means-- (A) a member of the Board; (B) the Executive Director; '(C) any person who has or exercises discretionary authority or discretionary control over the management or disposition of the assets of the Thrift Savings Fund; and (D) any person who, with respect to the Thrift 22 Savings Fund, is described in section 3(21)(A) of the 23 Employee Retirement Income Security Act of 1974 (29 24 U.S.C. 1002(21)(A)); and 25 ~(4) the term party in interest includes-- 11 - - ---Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 ? (A) any fiduciary; 3 with respect to the actions of such person as a 4 fiduciary; 5 (C) any participant; 7 and, with respect to the actions of the Executive 8 Director as a fiduciary any person providing services 9 to the Executive Director; Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I '(B) any counsel to a person who is a fiduciary, ~I (D) any person providing services to the Board (E) a labor organization, the members of which 11 are participants; (F) a spouse, sibling, ancestor, lineal 14 r 25 (i) the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of such corporation; .. (ii) the capital interest or profits interest of such partnership; or 1% (iii) the beneficial interest of such trust descendant, or spouse of a lineal descendant of a person described in subparagraph (A), (B), or (D); ~~(G) a corporation, partnership, or trust or estate of which, or in which, at least 50 percent Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 167 1 is owned directly or indirectly, or held by a person 2 described in subparagraph (A), (B), (D), or (E); ? (H) an official (including a director) of, or 4 an individual employed by, a person described in 5 subparagraph (A), (B), (D), (E), or (G), or an 6 individual having powers or responsibilities similar .7 to those of such an official; 8 (I) a holder (directly or indirectly) of at 9 least 10 percent of the shares in a person described 10 in any subparagraph referred to in subparagraph (H); 11 and (J) a person who, directly or indirectly, is at 13 least a 10 percent partner or joint venturer 14 (measured in capital or profits) in a person 15 described in any subparagraph referred to in 16 subparagraph (H). ''(b)(1) To the extent not inconsistent with the 18 provisions of this chapter and the policies prescribed by the 19 Board, afiduciary shall discharge his responsibilities with 20 respect to the Thrift Savings Fund or applicable portion 21 thereof solely in the interest of the participants and 22 beneficiaries and-- ~(A) for the exclusive purpose of-- (i) providing benefits to participants and r 25 their beneficiaries; and Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 168 1 (ii) defraying reasonable expenses of 2 administering the Thrift Savings Fund or applicable 3 portions thereof; (B) with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent individual acting in a like capacity and familiar with 7 such matters would use in the conduct of an enterprise of 8 a like character and with like objectives; and 9 (C) to the extent permitted by section 8438 of this 10 title, by diversifying the investments of the Thrift 11 Savings Fund or applicable portions thereof so as to 12 minimize the risk of large losses, unless under the 13 circumstances it is clearly prudent not to do so. 14 (2) No fiduciary may maintain the indicia of ownership 15 of any assets of the Thrift Savings Fund outside the 16 jurisdiction of the district courts of the United States. - (c)(1) A fiduciary shall not permit the Thrift Savings 18 Fund to engage in any of the following transactions, except 19 in exchange for adequate consideration: '(A) A transfer of any assets of the Thrift Savings 21 Fund to any person the fiduciary knows or should know to 22 be a party in interest or the use of such assets by any 23 such person. %~ (B) An acquisition of any property from or sale of 25 any property to the Thrift Savings Fund by any person the Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 fiduciary knows or should know to be a party in interest. .. (C) A transfer or exchange of services between the 3 Thrift Savings Fund and any person the fiduciary knows or 4 should know to be a party in interest. - (2) Notwithstanding paragraph (1), a fiduciary with 6 respect to the Thrift Savings Fund shall not-- 7 (A) deal with any assets of the Thrift Savings Fund 8 in his own interest or for his own account; - (B) act, in an individual capacity or any other 10 capacity, in any transaction involving the Thrift Savings 11 Fund on behalf of a party, or representing a party, whose 12 interests are adverse to the interests of the Thrift 13 Savings Fund or the interests of its participants or 14 beneficiaries; or I I (C) receive any consideration for his own personal 16 account from any party dealing with sums credited to the 17 Thrift Savings Fund in connection with a transaction 18 involving assets of the Thrift Savings Fund. '(3)(A) The Secretary of Labor may, in accordance with 20 procedures which the Secretary shall by regulation prescribe, 21 grant a conditional or unconditional exemption of any 22 fiduciary or transaction, or class of fiduciaries or 23 transactions, from all or part of the restrictions imposed by 24 paragraph (2). 25 (B) An exemption granted under this paragraph shall not Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 170 1 relieve a fiduciary from any other applicable provision of 2 this chapter. I ~ (C) The Secretary of Labor may not grant an exemption 4 under this paragraph unless he finds that such exemption is-- .- (ii) in the interests of the Thrift Savings Fund .'(i) administratively feasible; 7 and of its participants and beneficiaries; and 8 - (iii) protective of the rights of participants and 9 beneficiaries of such Fund. 10 .I(D) An exemption under this paragraph may not be 11 granted unless-- (i) notice of the proposed exemption is published 13 in the Federal Register; - (ii) interested persons are given an opportunity to 15 present views; and 16 (iii) the Secretary of Labor affords an opportunity 17 for a hearing and makes a determination on the record 18 with respect to the respective requirements of clauses under this subchapter or subchapter as a participant or beneficiary; (2) receiving any reasonable compensation 25 authorized by this subchapter for services rendered, or (i), (ii), and (iii) of (d) This section does subparagraph (C). ' not prohibit any fiduciary from-- benefit which the fiduciary is - (1) receiving entitled to receive III of this chapter Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 IL Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 for reimbursement of expenses properly and actually 2 incurred, in the performance of the fiduciary's duties 3 under this chapter; or 4 (3) serving as a fiduciary in addition to being an 5 officer, employee, agent, or other representative of a 6 party in interest. 7 ''(e)(1)(A) Any fiduciary that breaches the 8 responsibilities, duties, and obligations set out in 9 subsection (b) or violates subsection (c) shall be personally 10 liable to the Thrift Savings Fund for any losses to such Fund 11 resulting from each such breach or violation and to restore 12 to such Fund any profits made by the fiduciary through use of 13 assets of such Fund by the fiduciary, and shall be subject to 14 such other equitable or remedial relief as a court considers 15 appropriate.?A fiduciary may be removed for a breach referred 16 to in the preceding sentence. 17 I~(B) The Secretary of Labor may assess a civil penalty 18 against a party in interest with respect to each transaction 19 which is engaged in by the party in interest and is 20 prohibited by subsection (c). The amount of such penalty 21 shall be equal to 5 percent of the amount involved in each 22 such transaction (as defined in section 4975(f)(4) of the 23 Internal Revenue Code of 1954) for each year or part thereof 24 during which the prohibited transaction continues, except 25 that, if the transaction is not corrected (in such manner as 11 - - - - - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 172 1 the Secretary of Labor shall prescribe by regulation 2 consistent with section 4975(f)(5) of such Code) within 90 3 days after the date the Secretary of Labor transmits notice 4 to the party in interest (or such longer period as the 5 Secretary of Labor may permit), such penalty may be in an 6 amount not more than 100 percent of the amount involved. (C) A fiduciary shall not be liable under subparagraph 8 (A) with respect to a breach of fiduciary duty under 9 subsection (b) committed before becoming a fiduciary or after 10 ceasing to be a fiduciary. 11 (D) A fiduciary shall be jointly and severally liable 12 under subparagraph (A) for a breach of fiduciary duty under 13 subsection (b) by another fiduciary if-- 14 ''(i) the fiduciary participates knowingly in, or 15 knowingly undertakes to conceal, an act or omission of 16 such other fiduciary, knowing such act or omission is 17 such a breach; .18 - (ii) by the fiduciarys failure to comply with 19 subsection (b) in the administration of the fiduciary Is 20 specific responsibilities which give rise to the 21 fiduciary.status, the fiduciary has enabled such other 22 fiduciary to commit such a breach; or 23 (.iii) the fiduciary has knowledge of a breach by 24 such other fiduciary, unless the fiduciary makes 25 reasonable efforts under the circumstances to remedy the if - -.. -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 breach. 3 regulations, procedures for allocating fiduciary 4 responsibilities among fiduciaries, including investment 5 managers. Any fiduciary who, pursuant to such procedures, 6 allocates to a person or persons any fiduciary responsibility 7 shall not be liable for an act or omission of such person or 8 persons unless-- 10 respect to the allocation, with respect to the 11 implementation of the procedures prescribed by the Board, 12 or in continuing such allocation; or 13 - (ii) such fiduciary would otherwise be liable in 14 accordance with subparagraph (D). Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ~% (E) The Secretary of Labor shall prescribe, in ~1 (2) A civil action may be brought in the district ''(i) such fiduciary violated subsection (b) with 16 courts of the United States-- (A) by the Secretary of Labor-- I I (i) to determine and enforce a liability under paragraph (1)(A); - (ii) to collect any civil penalty under paragraph (1)(B); or (iii) to enjoin any act or practice which violates subsection (g)(2) or (h) of section 8472 of this title; ~I (B) by the Secretary of Labor, any participant, Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 beneficiary, or fiduciary-- 8 benefits due to him or her under the provisions of 9 subchapter III of this chapter, to enforce his or her 10 rights under such provisions, or to clarify his or her 11 rights to future benefits under such provisions. 3 violates any provision of subsection (b) or (c); or 4 11 (ii) to obtain any other appropriate equitable 5 relief to redress a violation of any such provision; 7 1.(C) by any participant or beneficiary to recover Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 - (i) to enjoin any act or practice which .1 (3) An action may not be commenced under paragraph (2) 13 with respect to a fiduciary's breach of any responsibility, 14 duty, or obligation under subsection (b) or a violation of 15 subsection (c) after the earlier of-- 11 (A) 6 years after (i) the date of the last action 17 which constituted a part of the breach or violation, or 18 (ii) in the case of an omission, the latest date on which 19 the fiduciary could.have cured the breach dr violation; 20 or I ~ (B) 3 years after the earliest date on which the 22 plaintiff had actual knowledge of the breach or 23 violation, except that, in the case of fraud or 24 concealment, such action may be commenced not later than 25 6 years after the date of discovery of such breach or 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 violation. 2 - (4)(A) The district courts of the United States shall 3 have exclusive jurisdiction of civil actions under this 4 subsection. 5 (B) An action under this subsection may be brought in 6 the District Court of the United States for the District of 7 Columbia or a district court of the United States in the 8 district where the breach alleged in the complaint or 9 petition filed in the action took place or in the district 10 where a defendant resides or may be found. Process may be 11 served in any other district where a defendant resides.or_may 12 be found. 13 I~(5)(A) A copy of the complaint or petition filed in any 14 action brought under this subsection (other than by the 15 Secretary of Labor) shall be served on the Executive 16 Director, the Secretary of Labor, and the Secretary of the 17 Treasury by certified mail. 18 (B) Any officer referred to in subparagraph (A).of this 19 paragraph shall have the right in his discretion to intervene 20 in any action. If the Secretary of Labor brings an action 21 under paragraph (2) of this subsection on behalf*of a 22 participant or beneficiary, he shall notify the Executive 23 Director and the Secretary of the Treasury. I . (f) The Secretary of Labor may prescribe regulations to 25 carry out this section. - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 176 1 (g)(1) The Secretary of-Labor shall establish a program 2 to carry out audits to determine the level of compliance with 3 the requirements of this section relating to fiduciary 4 responsibilities and prohibited activities of fiduciaries. 5 (2) An audit under this subsection may be conducted by 6 the Secretary of Labor, by contract with a qualified 7 non-governmental organization, or in cooperation with the 8 Comptroller General of the United States, as the Secretary 9 considers appropriate. 10 ~~S 8478. Bonding (a)(1) Except as provided in paragraph (2), each 12 fiduciary (other than a member of the Employee Thrift 13 Advisory Council with respect to his duties as a member) and 14 each person who handles funds or property of the Thrift 15 Savings Fund-shall be bonded as provided in this section. 16 (2)(A) Bond shall not be required of a fiduciary (or of 17 any officer or employee cf such fiduciary) if such 19 - (i) is a corporation organized and doing business 20 under the laws of the United States or of any State; 18 fiduciary-- - (ii) is authorized under such laws to exercise 22 trust powers or to conduct an insurance business; 23 (iii) is subject to supervision or examination by 24 Federal or State authority; and 'I (iv) has at all times a combined capital and 11.. - . _- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 177 1 surplus in excess of such minimum amount (not less than 2 $1,000,000) as the Secretary of Labor prescribes in 3 regulations. 4 (B) If-- 5 (i) a bank or other financial institution would, 6 but for this subparagraph, not be required to be bonded .7 under this section by reason of the application of the 8 exception provided in subparagraph (A), 9 '(ii) the bank or financial institution is 10 authorized to exercise trust powers, and 11 .(iii) the deposits of the bank or financial 12 institution are not insured by the Federal Deposit 13 Insurance Corporation or the Federal Savings and Loan. 14 Insurance Corporation, 15 such exception shall apply to such bank or financial 16 institution only if the bank or institution meets bonding 17 requirements under State law which the Secretary of Labor 18 determines are at least equivalent to those imposed on banks 19 by Federal law. 20 ''(b)(1) The Secretary of Labor shall prescribe the 21 amount of a bond under this section at the beginning of each 22 fiscal year. Except as otherwise provided in this paragraph, 23 such amount shall not be less than 10 percent of the amount 24 of funds handled. In no case shall such bond be less than 25 $1,000 nor more than $500,000, except that the Secretary of 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 178 1 Labor, after due notice and opportunity for hearing to all 2 interested parties, and other consideration of the record, 3 may prescribe an amount in excess of $500,000. 4 (2) For the purpose of prescribing the amount of a bond 5 under paragraph (1), the amount of funds handled shall be 6 determined by reference to'the amount of the funds handled by 7 the person, group, or class to be covered by such bond or by 8 their predecessor or predecessors, if any, during the 9 preceding fiscal year, or to the amount of funds to be 10 handled during the current fiscal year by such person, group, 11 or class, estimated as provided in regulations prescribed by 12 the Secretary of Labor. 13 - .. 1(c) A bond required by subsection (a)-- 14 (1) shall include such terms and conditions as the 15 Secretary of Labor considers necessary to protect the 16 Thrift Savings Fund against loss by reason of acts of 17 fraud or dishonesty on the part of the bonded person 18 directly or through connivance with others; 19 (2) shall have as surety thereon a corporate surety 20 company which is an acceptable surety on Federal bonds 21 under authority granted by the Secretary of the Treasury 22 pursuant to sections 6 through 13 of title 6; and 23 '(3) shall be in a form or of a type approved by the 24 Secretary of Labor, including individual bonds or 25 schedule or blanket forms of bonds which cover a group or Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 2 ''(d)(1) It shall be unlawful for any person to whom 3 subsection (a) applies, to receive, handle, disburse, or 4 otherwise exercise custody or control of any of the funds or 5 other property of the Thrift Savings Fund without being 6 bonded as required by this section. .7 ? (2) It shall be unlawful for any fiduciary, or any 8 other person having authority to direct the performance of 9 functions described in paragraph (1), to permit any such 10 function to be performed by any person to whom subsection (a) 11 applies unless such person has met the requirements of such 12 subsection. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ''(e) Notwithstanding any other provision.of law, any 14 person who is required to be bonded as provided in subsection 15 (a) shall be exempt from any other provision of law which 16 would, but for this subsection, require such person to be 17 bonded for the handling of the funds or other property of the 18 Thrift Savings Fund. 19 (f) The Secretary of Labor shall prescribe such 20 regulations as may be necessary to carry out the provisions 21 of this section,.including exempting a person or,class of 22 persons from the requirements of this section. 23 8479. Exculpatory provisions; insurance - (a) Any provision in an agreement or instrument which r 25 purports to relieve a fiduciary from responsibility or Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 180 1 liability for any responsibilityy obligation, or duty under 2 this subchapter shall be void. 3 (b)(1) The Executive Director may require employing '' 4 agencies to contribute an amount not to exceed 1 percent of 5 the amount such agencies are required to contribute in accordance with section 8432(c) of this title to the Thrift 7 Savings Fund. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (2) The sums credited to the Thrift Savings Fund under 9 paragraph (1) shall be available and may be used at the 10 discretion of the Executive Director to purchase insurance to 11 cover potential liability of persons who serve in a fiduciary 12 capacity with respect to the Thrift Savings Fund, without 13 regard to whether a policy of insurance permits recourse by 14 the insurer against the fiduciary in the case of a breach of a fiduciary obligation. . 16 (b) CONFORMING AMENDMENT.--The table of chapters at the 17 beginning of part III of title 5, United States Code, is 18 amended by inserting after the item relating to chapter 83 19 the following new item: 84. Federal Employees' Retirement System ........................ 8401. 20 TITLE II--OTHER AMENDMENTS TO TITLE 5 OF THE UNITED STATES 21 CODE 22 SEC. 201. TREATMENT UNDER CIVIL SERVICE RETIREMENT SYSTEM OF 23 CERTAIN INDIVIDUALS EXCLUDED FROM FEDERAL A - - . -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 181 1 EMPLOYEES' RETIREMENT SYSTEM. 2 (a) DEDUCTIONS, CONTRIBUTIONS, AND DEPOSITS.--(1) Section 3 8334 of title 5, United States Code, is amended by adding at 4 the end thereof the following: '%(k)(1) Effective with respect to pay periods beginning 6 after December 31, 1986, in administering this section in the ?7 case of an individual described in section 8402(b)(2) of this 8 title-- 9 (A) the amount to be deducted and withheld by the 10 employing agency shall be determined in accordance with 11 paragraph (2) of this subsection instead of the first 12 sentence of subsection (a)(1) of this section;.and 13 (B) the amount of the contribution under the second 14 sentence of subsection (a)(1) of this section shall be 15 the amount which would have been contributed under such 16 sentence if this subsection had not been enacted. 17 11(2)(A) With respect to Federal wages of an employee or 18 Member (or that portion thereof) not exceeding the 19 contribution and benefit base during the calendar year 20 involved, the appropriate amount to be deducted and withheld 21 under this subsection is the amount by which-- 22 ''(i) the total deduction for those wages (or for 23 that portion) exceeds; 24 (ii) the OASDI contribution with respect to those 25 wages (or that portion). Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 . Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 182 1 (B) With respect to any portion of Federal wages of an 2 employee or Member which exceed the contribution and benefit 3 base during the calendar year involved, the appropriate 4 amount to be deducted and withheld under this subsection is 5 an amount equal to the total deduction for that portion. (C) For purposes of this paragraph-- ''(i) the term 'Federal wages' means basic pay for service as an employee or Member, as the case may be; .. (ii) the term 'contribution and benefit base' means 10 the contribution and benefit base in effect with respect 11 to the period involved, as determined under section 230 12 of the Social Security Act; 13 (iii) the term 'total deduction', as used with 14 respect to any Federal wages (or portion thereof),. means 15 an amount equal to the amount of those wages (or of that 16 portion), multiplied by the percentage which (but for 17 this subsection) would apply under the first sentence of 18 subsection (a)(1) with respect to the individual 19 involved; and 20 - (iv) the term 'OASDI contribution', with respect to 21 any income, means the amount of tax which may be imposed 22 under section 3101(a) of the Internal Revenue Code of 23 1954 with respect to such income (determined without 24 regard to any income which is not a part of Federal 25 wages). Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 (3) The amount of a deposit under subsection (c) of 2 this section for any service with respect to which paragraph 3 (1) of this subsection applies shall be equal to an amount 4 determined based on the preceding provisions of this 5 subsection, and shall include interest. . 6 (2) Such section 8334 is further amended-- 7 (A) in paragraphs (1) and (2) of subsection (e), by 8 striking out "or (j)" and inserting in lieu thereof 9 (j), or (k)..? Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (B) in subsection (f), by inserting "or (k)" after 11 subsection (a)"; and 12 (C) in subsection (h), by striking out '~and (j)" 13 and inserting in lieu thereof (j), and (k). 14 (b) OFFSET IN BENEFITS.--(l) Subchapter III of chapter 83 15 of title 5, United States Code, is amended by adding at the 16 end thereof the following: 17 '~S8349. Offset relating to certain benefits under the Social 18 Security Act 19 (a)(1) Notwithstanding any other provision of this 20 subchapter, if an individual under section 8402(b)(2) is 21 entitled, or would on proper application be entitled, to old- 22 age insurance benefits under title II of the Social Security 23 Act, the annuity otherwise payable to such individual shall 24 be reduced under this subsection. e 25 1%(2) A reduction under this subsection commences 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 184 1 beginning with the first month for which the individual 2 both-- 3 (A) is entitled to an annuity under this 4 subchapter; and I I (B) is entitled, or would on proper application be entitled, to old-age insurance benefits under title II of the Social Security Act. (3)(A)(i) Subject to clause (ii) and subparagraphs (B) 9 and (C), the amount of a reduction under this subsection 10 shall be equal to the difference between-- 11 - (I) the old-age insurance benefit which would be 12 payable to the individual for the month referred to in 13 paragraph (2); and 14 (II) the old-age insurance benefit which would be 15 so payable, excluding all wages derived from Federal 16 service of the individual, and assuming the individual 17 were fully insured (as defined by section 214(a) of the 18 Social Security Act). 19 (ii) For purposes of this subsection, the amount of a 20 benefit referred to in subclause (I) or (II) of clause (i) 21 shall be determined without regard to subsections (b) through 22 (1) of section 203 of the Social Security Act, and without 23 regard to the requirement that an application for such 24 benefit be filed. I ~ (B) A reduction under this subsection-- 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (I) the old-age insurance benefit to which the 4 individual is entitled (or would on proper 5 application be entitled) for the month referred to in 6 paragraph (2), determined without regard to subsections (b) through (1) of section 203 of the 8 Social Security Act; and I % (II) a fraction, as determined under section 10 8421(b)(3) with respect to the individual, except 11 that the reference to 'service' in subparagraph (A) 12 of such section shall be considered to mean Federal 13 service, and the reference to benefit computation 14 years used to compute the old-age insurance benefit 15 referred to in subsection (b)(2) in subparagraph (B) 16 of such section shall be considered to mean benefit 17 computation years used to compute the old-age 18 insurance benefit referred to in subclause (I); and 19 (ii) may not cause the annuity payment for an 20 individual to be reduced below zero. (C) An amount computed under subclause (I)-or (II) of 21 22 subparagraph (A)(i), or under subparagraph (B)(i)(I), for 23 purposes of determining the amount of a reduction under this 24 subsection shall be adjusted under section 8340 of this 25 title. . I (i) may not exceed an amount equal to the product Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 ? (4) A reduction under this subsection applies with '' 2 respect to the annuity otherwise payable to such individual 3 under this subchapter (other than under section 8337) for the 4 month involved-- (A) based on service of such individual; and '''(B) without regard to section 8345(j), if otherwise 7 applicable. (5) The operation of the preceding paragraphs of this 9 subsection shall not be considered for purposes of applying 10 the provisions of the second sentence of section 11 215(a)(7)(B)(i) or the provisions of section 215(d)(5)(ii) of 12 the Social Security Act in determining any amount under 13 subclause (I) or (II) of paragraph (3)(A)(i) or paragraph 1.4 (3)(B)(i)(I) for purposes of this subsection. 15 ''(b)(l)?Not'withstanding any other provision of this 16 subchapter-- ? (A) a disability annuity to which an individual 18 described in section 8402(b)(2) is entitled under this 19 subchapter, and (B) a survivor annuity to which a person is 21 entitled under this subchapter based on the service of an 22 individual described in section 8402(b)(2), 23 shall be subject to reduction under this subsection if that 24 individual or person is also entitled (or would on proper 25 application also be entitled) to any similar benefits under Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 187 1 title II of the Social Security Act based on the wages and 2 self-employment income of such individual described in 3 section 8402(b)(2). 1 1 4 (2)(A) Subject to subparagraph (B),'reductions under 5 this subsection shall be made in a manner consistent with the 6 manner in which reductions under subsection (a) are computed .7 and otherwise made. - (B) Reductions under this subsection shall be 9 discontinued if, or for so long as, entitlement to the 10 similar benefits under title II of the Social Security Act 11 (as referred to in paragraph (1)) is terminated (or, in the 12 case of an individual who has not made proper application 13 therefor, would be terminated). (3) For the purpose of applying section 224 of the 15 Social Security Act to the disability insurance benefit used 16 to compute the reduction under this subsection, the amount of 17 the CSRS annuity considered shall be the amount of the CSRS 18 annuity before application of this section. 1 1 (4) The Office shall prescribe regulations to carry out 20 this subsection. 21 (c) For the purpose of this section, the term 'Federal 22 service' means service which is employment for the purposes 23 of title II of the Social Security Act and chapter 21 of the 24 Internal Revenue Code of 1954 by reason of the amendments 25 made by section 101 of the Social Security Amendments of 1 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 1983. . 2 (2) The analysis for chapter 83 of title 5, United States 3 Code, is amended by adding at the end thereof the following 4 new item: 8349. Offset relating,to certain benefits under the Social Security Act. . 5 (c) CREDITABILITY OF INTERIM SERVICE.--Section 8334(c) of 6 title 5, United States Code, is amended by adding at the end 7 thereof the following: Notwithstanding the preceding 8 provisions of this subsection and any provision of section 9 206(b)(3) of the Federal Employees Retirement Contribution 10 Temporary Adjustment Act of 1983, the percentage of basic pay 11 required under this subsection in the case of an individual 12 described in section 8402(b)(2) shall, with respect to any 13 covered service (as defined by section 203(a)(3) of such Act) 14 performed by such individual after December 31, 1983, and 15 before January 1, 1987, be equal to 1.3 percent.. 16 SEC. 202. NON-APPLICABILITY OF CIVIL SERVICE RETIREMENT 17 SYSTEM TO INDIVIDUALS UNDER FEDERAL EMPLOYEES 18 RETIREMENT SYSTEM. 19 (a) EMPLOYEES.--Section 8331(1) of title 5, United States 20 Code, is amended-- 21 (1) by amending clause (ii) to read as follows: 22 (ii) an employee subject to another retirement 23 system for Government employees (other than an employee 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 189 1 described in clause (x);''; 2 (2) by striking "or" at the end of clause (viii); 3 (3) by striking the period at the end of clause (ix) 4 and inserting in lieu thereof or and 5 (4) by adding after clause (ix) the following: 6 (x) an employee subject to the Federal Employees' 7 Retirement System.. 8 (b) MEMBERS OF CONGRESS.--Section 8331(2) of title 5, 9 United States Code, is amended by striking the semicolon and 10 inserting in lieu thereof but does not include any such 11 Member of Congress who is subject to the Federal Employees' 12 Retirement System or who makes an election under section 13 8401(20) of this title not to be subject to such System;". 14 SEC. 203. PAY FOR THE EXECUTIVE DIRECTOR OF THE FEDERAL 15 RETIREMENT THRIFT INVESTMENT BOARD. 16 Section 5314 of title 5, United States Code, is amended 17 by adding at the end thereof the following: 18 Executive Director, Federal Retirement Thrift 19 Investment Board.. 20 SEC. 204. ALTERNATIVE FORMS OF ANNUITIES. 21 (a) IN GENERAL.--Title 5, United States Code, is amended 22 by inserting after section 8343 the following: 23 ''S8343a. Alternative forms of annuities 24 (a) The Office of Personnel Management shall prescribe 25 regulations under which an employee or Member may, at the Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 190 1 time of retiring under this subchapter (other than under 2 section 8337 of this title), elect annuity benefits under 3 this section instead of any other benefits under this 4 subchapter (including any benefits under section 8341 of this 5 title) based on the service of the employee or Member. ~1 6 (b) Subject to subsection (c), the Office shall by 7 regulation provide for such alternative forms of annuities as 8 the Office considers appropriate, except that among the 9 alternatives offered shall be-- I ~ (1) an alternative which provides for-- .1 (A) payment of the lump-sum credit to the - 12 employee or Member; and 13 (B) payment of an annuity to the employee or 14 Member for life; and '(2) in the case of an employee or Member who is 16 married at the time of retirement, an alternative which 17 provides for-- 18 '(A) payment of the lump-sum credit to the 19 employee or Member; and - (B) payment of an annuity to the employee or 21 Member for life, with a survivor annuity payable for 22 the life of a surviving spouse. (c) Each alternative provided for under subsection (b) 24 shall, to the extent practicable, be designed such that the 25 present value of the benefits provided under such alternative 11 - - . Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 191 1 (including any lump-sum credit) is actuarially equivalent to 2 the present value of the annuity which would otherwise be 3 provided the employee or member under this subchapter, as 4 computed under subsections (a)-(i) and (n) of section 8339 of 5 this title. (d) An employee or Member who, at the time of retiring -der this subchapter-- (1) is married, shall be ineligible to make an 9 election under this section unless a waiver is made under 10 section 8339(j)(1) of this title; or 11 (2) has a former spouse, shall be ineligible to 12 make an election under this section if the former spouse 13 is entitled to benefits under section 8341(h) or 8345(j) 14 of this title (based on the service of the employee or 15 Member) under the terms of a decree of divorce or lo' annulment, or a court order or court-approved property 17 settlement incident to any such decree, with respect to 18 which the Office has been duly notified. 19 - (e) An employee or Member who is married.at the time of 20 retiring under this subchapter and who makes an election 21 under this section may, during the 18-month period beginning 22 on the date of retirement, make the election provided for 23 under section 8339(o) of this title, subject to the deposit 24 requirement thereunder. . 25 (b) CONFORMING AMENDMENTS.--(l) The analysis for chapter 1 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 192 1 83 of title 5, United States Code, is amended by inserting 2 after the item relating to section 8343 the following: '1 8343a. Alternative forms of annuities.". 3 (2) The second sentence of section 8342(a) of title 5, 4 United States Code, is amended by striking '~The- and 5 inserting in lieu thereof Except as provided in section -6 8343a of this title, the. 7 SEC. 205. RETIREMENT COUNSELING. 8 (a) IN GENERAL.--Subchapter III of chapter 83 of title 5, 9 United States Code, as'amended by section 201(b), is further 10 amended by adding at the end thereof the following: 11 *~S8350. Retirement counseling I ~ (a) For the purposes of this section, the term 13 'retirement counselor', when used with respect to an agency, 14 means an employee of the agency who is designated by the head 15 of the agency to furnish information on benefits under this 16 subchapter and chapter 84 of this title and counseling 17 services relating to such benefits to other employees of the 18 agency. 19 ~(b) The Director of the Office of Personnel Management 21 (1) establish a training program for all retirement 22 counselors of agencies of the Federal Government; and 11 (2) designate and publicize a telephone number at 24 the Office which annuitants under this subchapter or 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 193 1 chapter 84 of this title may call to obtain answers to 2 questions relating to retirement benefits under this 3 subchapter or such chapter and which. is to be used 4 exclusively for such purpose. 5 (c)(1) The training program established under subsection (b)(1) of this section shall provide for 7 ccrnprehensive training in the provisions and administration 8 of this subchapter and chapter 84 of this title, shall be 9 designed to promote fully informed retirement decisions by 10 employees and Members under this subchapter and individuals 11 subject to chapter 84 of this title, and shall be revised as 12 necessary to assure that the information furnished to 13 'retirement counselors of agencies under the program is 14 current. 15 (2) The Director shall conduct a training session under 16 the training program at least once every 3 months. 17 `1(3) Once each year, each retirement counselor of an 18 agency shall successfully complete a training session 19 conducted under the training program. 20 I~(c) The Director shall assign the responsibility of 21 receiving and responding to calls made to the telephone 22 number designated under subsection (b)(2) of this section to 23 a sufficient number of employees who are knowledgeable about 24 the provisions and administration of this subchapter and 25 chapter 84 of this title to assure that prompt and effective 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 assistance is furnished to annuitants.". (b) CHAPTER ANALYSIS.--The chapter analysis at the 3 beginning of such chapter is amended by inserting after the 4 item relating to section.8349 the following: 11 8350. Retirement counseling. 5 SEC. 206. PARTICIPATION BY CERTAIN EMPLOYEES AND MEMBERS ONLY 6 IN THE THRIFT SAVINGS PLAN. 7 (a)(1) Subchapter III of chapter 83 of title 5, United 8 States Code (as amended by sections 201(b) and 205(a) of this 9 Act), is amended by adding at the end thereof the following 10 new section: - 11 ..?8351. Participation in-the Thrift Savings Plan 12 11 (a)(1) An employee or Member may elect to contribute to 13 the Thrift Savings Fund established by section 8437 of this 14 title. 1 1 (2) An election may be made under paragraph (1) only 16 during a period provided under section 8432(b) for 17 individuals who are subject to chapter 84 of this title. (b)(1) Except as otherwise provided in this subsection, 19 the provisions of subchapters III and VII of chapter 84 of 20 this title shall apply with respect to employees and Members 21 making contributions to the Thrift Savings Fund under 22 subsection (a) of this section. 24 Savings Fund in any pay period any amount not exceeding 5 I '(2) An employee or Member may contribute to the. Thrift 11 - - - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 195 1 percent of the amount of the "employee's or Members basic pay 2 for such period. 3 I ~ (3) No contributions may be made by an employing agency 4 for the benefit of an employee or Member under section 5 8432(c) of this title. 6 (4) Section 8433(b) of this title applies to any 7 employee or Member who elects to make contributions to the 8 Thrift Savings Fund under subsection (a) of this section and 9 separates. from Government employment entitled to an immediate 10 annuity under this subchapter (including a disability 11 retirement annuity under section 8337 of this title) or 12 separates from Government employment entitled to benefits 13 under subchapter I of'chapter 81 of this title. 14 (5) Section 8433(c) of this title applies to any 15 employee or Member who elects to make contributions to the 16 Thrift Savings Fund under subsection (a) of this section and 17 separates entitled to a deferred annuity under this 18 subchapter. 19 I.(6) Section 8433(d) of this title applies to any 20 employee or Member who elects to make contributions to the 21 Thrift Savings Fund under subsection (a) of this section and 22 separates from the service before becoming entitled to an 23 immediate or deferred annuity under this subchapter. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1%(7)(A) The provisions of section 8435 of this title 25 that require a waiver or consent by the spouse of an employee Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 196 1 or Member (or former employee or'Member) shall not apply with 2 respect to sums in the Thrift Savings Fund contributed by the 3 employee or Member (or former employee or Member) and 4 earnings in the fund attributable to such sums. ~I (B) An election, change of election, or modification 6 (relating to the commencement date of a deferred annuity) 7 authorized by subchapter III of chapter 84 of this title 8 shall be effective in the case of a married employee or 9 Member, and a loan may be approved under section 8433(i) of 10. this title in such case, only after the Executive Director 11 notifies the employees or Members spouse that the election, 12 change of election, or modification has been made or that the 13 Executive Director has received an application for such loan, 14 as the case may be. 15 11(C) Subparagraph (B) may be waived with respect to a 16 spouse or former spouse if the employee or Member establishes 17 to the satisfaction of the Executive Director of the Federal 18 Retirement Thrift Investment Board that the whereabouts of 19 such spouse or former spouse cannot be determined. (8) Sums contributed under this section and earnings 21 attributable to such sums may be invested and reinvested only 22 in the Government Securities Investment Fund established 23 under section 8438(b)(1)(A) of this title. (c) The Executive Director of the Federal Retirement 25 Thrift Investment Board may prescribe regulations to carry 11 . Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 -iI I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 out this section. . 2 (2) The analysis for chapter 83 of such title is amended 3 by adding at the end thereof the following: 11 8351. Participation in the Thrift Savings Plan.". 4 (b) An election may first be made by an employee of the 5 Federal-Government or a Member of Congress under section 8351 6 of title 5, United States Code (as added by subsection 7 (a)(1)), during the first period referred to in subsection 8 (a)(2) of such section which commences on or after July 1, 9 1987. 10 SEC. 207. MISCELLANEOUS AMENDMENTS. 11 (a) AMENDMENT TO SECTION 2105.--Section 2105(c)(2) of 12 title 5, United States Code, is amended by striking out 13 "chapter 81" and inserting in lieu thereof "chapter 81, 14 chapter 84,. 15 (b) AMENDMENT TO SECTION 2109.--Section 2109(1) of title 16 5, United States Code, is amended to read as follows: 17 '(1) air traffic controller' or controller means 18 a civilian employee of the Department of Transportation 19 or the Department of Defense who, in an air traffic 20 control facility or flight service station facility-- (A) is actively engaged-- 1'(i) in the separation and control of air 23 traffic; or I % (ii) in providing preflight, inflight, or 1 l - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 198 airport advisory service to aircraft operators; or ''(B) is the immediate supervisor of any employee described in subparagraph (A); and". 5 (c) AMENDMENT TO SECTION 6301.--Section 6301(2)(B) of 6 title 5, United States Code, is amended to read as follows: - (B) an individual first employed by the 8 government of the District of Columbia before October 9 1, 1987; . 10 (d) AMENDMENT TO SECTION 6303.--The second sentence of 11 section 6303(a) of title 5, United States Code, is amended by 12 striking out "title.'.' and inserting in'lieu thereof "title 13 and all service creditable under section 8411 of this title 14 for the purpose of chapter 84 of this title.. 15 (e) AMENDMENT TO SECTION 8116.--Section 8116 of title 5, 16 United States Code, is amended by adding at the end thereof 17 the following: 18 (d) Notwithstanding the other provisions of this 19 section, an individual receiving benefits for disability or 20 death under this subchapter who is also receiving benefits 21 under subchapter III of chapter 84 of this title or benefits 22 under title II of the Social Security Act shall be entitled 23 to all such benefits, except that-- 24 (1) benefits received under section 223 of the 25 Social Security Act (on account of disability) shall be Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 199 1 subject to reduction on account of benefits paid under 2 this subchapter pursuant to the provisions of section 224 3 of the Social Security Act; and (2) in the case of benefits received on account of 5 age or death under title II of the Social Security Act, compensation payable under this subchapter based on the Federal service of an employee shall be reduced by the 8 amount of any such social security benefits payable that 9 are attributable to Federal service of that employee 10 covered by chapter 84 of this title. However, eligibility 11 for or receipt of benefits under chapter 84 of this 12 title, or benefits under title II of the Social Security 13 Act by virtue of service covered by chapter 84 of this 14 title, does not affect the right of the employee to 15 compensation for scheduled disabilities specified by 16 section 8107(c) of this title. . 17 (f) AMENDMENTS TO SECTION 8331.--Section 8331(1) of title 18 5, United States Code, as amended by section 202(a), is 19 further amended-- 20 (1) by amending subparagraph (G) to read as follows: 21 - (G) an individual first employed by the 22 government of the District of Columbia before October 23 1, 1987;; and 24 (2) by striking out or at the end of clause (ix), 25 by striking out the period at the end of clause (x) and 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 inserting in lieu thereof ?; or'', and by adding after 2 clause (x) the following: (xi) an employee under the Botanic Garden 4 excluded by the Director or Acting Director of the 5 Botanic Garden under section 8347(1) of this 6 title. . 7 (g) AMENDMENTS TO SECTION 8332.--(l) Section 8332(b) of 8 title 5, United States Code, is amended-- and " at the end of paragraph (12), 9 (A) by striking "and" 10 striking the period at the end of the first paragraph 11 (13) and inserting a semicolon, redesignating the second 12 paragraph (13) as paragraph (14), and striking the period 13 at the end of such paragraph (14) (as so redesignated) 14 and inserting and 15 (B) by inserting after paragraph (14) (as so 16 redesignated by subparagraph (A)) the following: 17 I%(15) subject to section 8334(c) and 8339(i) of this 18 title, service performed on or after January 3, 1969, and 19 before January 4, 1973, as the Washington Representative 20 for Guam or the Washington Representative for the Virgin 21 Islands, only if the individual serves as a Member for a 22 period of at least five years after January 2, 1973.''; 23 (C) in the second sentence after paragraph (15) (as 24 added by subparagraph (B)), by striking "(13)" and " 25 inserting ''(14)''; and 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 201 1 (D) by adding at the end' thereof the following: -For 2 the purpose of this subchapter, service of the type 3 described in paragraph (15) of this subsection shall be 4 considered Member service.''. 5 (2) The last sentence of section 8332(f) of title 5, 6 United States Code, is amended by striking "(13)" and 7 inserting "(14)". 8 (3) The last sentence of section 8332(k)(1) of title 5, 9 United States Code,,is amended by striking ~'second11 and 10 inserting "third". 11 (h) AMENDMENTS TO SECTION 8342.--Section 8342(a) of title 12 5, United States Code, is amended-- 13 (1) in paragraphs (1)(B) and (3), by inserting '', or 14 chapter 84 of this title,'' after "subchapter"; and 15 (2) by adding at the end the following: In applying 16 this subsection with respect to an employee or Member who 17 becomes subject to chapter 84 of this title, entitlement 18 to payment of the lump-sum credit shall be determined 19 without regard to paragraph (1) or (3) if,?and to the 20 extent that, such lump-sum credit relates to service of a 21 type described in clauses (i) through (iii) of section 22 302(a)(1)(C) of the Federal Employees' Retirement System 23 Act of 1986.~. 24 (i) AMENDMENT TO SECTION 8347.--Section 8347 of title 5, 25 United States Code, is amended by adding at the end thereof Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 the following: 2 ''(n)(1) Notwithstanding any other provision of this 3 subchapter, the Director of Central Intelligence shall, in a 4 manner consistent with the administration of this subchapter 5 by by the Office, and to the extent considered appropriate by 6 the Director of Central Intelligence-- 11 (A) determine entitlement to benefits under this 8 subchapter based on the service of employees of the 9 Central Intelligence Agency; 10 (B) maintain records relating to the service of 11 such employees; I . (C) compute benefits under this subchapter based on 13 the service of such employees; (D) collect deposits to the Fund made by such 15 employees, their spouses, and their former spouses; 18 and 19 ~.I(E) authorize and direct disbursements from the 17 Fund to the extent based on service of such employees; - (F) perform such other functions under this 20 subchapter as the Director of Central Intelligence, in 21 consultation with the Director of the Office-of Personnel 22 Management, determines to be appropriate. i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I ~ (2) The Director of the Office of Personnel Management 24 shall furnish such information and, on a reimbursable basis, 25 such services to the Director of Central Intelligence as the 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 203 1 Director of Central Intelligence requests to carry out 2 paragraph (1) of this subsection. i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 3 (3)(A) The Director of Central Intelligence, in 4 consultation with the Director of the Office of Personnel 5 Management, shall by regulation prescribe appropriate procedures to carry out this subsection. (B) The regulations shall provide procedures for the 8 Director of the Office of Personnel Management to inspect and 9 audit disbursements from the Civil Service Retirement and 10 Disability Fund under this subchapter. (C) The Director of Central Intelligence shall submit 12 the regulations prescribed under subparagraph (A) to the 13 Select Committee on Intelligence of the Senate and the 14 Permanent Select Committee on Intelligence of the House of 15 Representatives before the regulations take effect. 16 .'(4)(A) Section 201(c) of the Central Intelligence 17 Agency Retirement Act of 1964 for Certain Employees shall 18 apply in the administration of this subchapter to the extent 19 that the provisions of this subchapter are administered under 20 this subsection. 21 ~(B) Notwithstanding subparagraph (A) of this paragraph, 22 section 8347(d) of this title shall apply with respect to 23 employees of the Central Intelligence Agency who are subject 24 to the Civil Service Retirement System.'. 25 (j) AMENDMENTS TO SECTION 8348.--Section 8348(a) of title 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 204 1 5, United States Code, is amended-- 2 (1) in paragraph (1)(A), by striking out subchapter; and inserting in lieu thereof 4 ''subchapter or by the provisions of chapter 84 of this 5 title which relate to benefits payable out of the 6 Fund; ; '7 (2) in paragraph (1)(B)-- 8 (A) by inserting -or 8462" after ''8340"; and 9 (B) by striking out -title, and" and inserting 10 in lieu thereof title or subchapters II and IV of 11 chapter 84 of this title, and and 12 (3) in paragraph (2), by striking out %'chapter" and 13 inserting in lieu thereof chapter, chapter 84 of this 14 title, . 15 (k) AMENDMENTS TO CHAPTER 87.--Chapter 87 of title 5, 16 United States Code, is amended-- 17 (1) by amending section 8701(a)(6) to read as 18 follows: - (6) an individual first employed by the government 20 of the District of Columbia before October 1, 1987;''; 21 (2) in section 8706, by striking out subsection (c) 22 and redesignating subsections (d), (e), and (f) as 23 subsections (c), (d), and (e), respectively; 24 (3) by striking out subsection (c)(1) of section 25 8714a and inserting in lieu thereof the following: 11 . . Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ~. (c)(1) Except as otherwise provided in this subsection, 2 the optional insurance on an employee stops on his separation 3 from service or 12 months after discontinuance of his pay, 4 whichever is earlier, subject to a provision for temporary 5 extension of life insurance coverage and for conversion to an 6 individual policy of life insurance under conditions approved 7 by the Office.; 8 (4) by striking out the first sentence of section 9 8714b(c)(1) and,inserting in lieu thereof the following: Except as otherwise provided in this subsection, the 11 additional optional insurance elected by an employee 12 pursuant to this section shall stop on separation from 13 service or 12 months after discontinuance of his pay, 1.4 whichever is earlier, subject to a provision for 15 temporary extension of life insurance coverage and for 16 conversion to an individual policy of life insurance 17 under conditions approved by the office.; and 18 (5) by striking out subsection (c)(1) of section 19 8714c and inserting in lieu thereof the following: (c)(1) Except as otherwise provided in this subsection, 21 the optional life insurance on family members shall stop at 22 the earler of the employees death, the employees separation 23 from the service, or 12 months after discontinuance of pay, 24 subject to a provision for temporary extension of life 25 insurance coverage and for conversion to individual policies 11 - - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 206 1 of life insurance under conditions approved by the Office.''. 2 (1) AMENDMENTS TO SECTION 8901.--Section 8901 of title 5, 3 United States Code, is amended-- 4 (1) by amending paragraph (1)(E) to read as follows: 5 '(E) an individual first employed by the 6 government of the District of Columbia before October 7 1, 1987;; 8 (2) by amending paragraph (3)(A) to read as follows: - (A) an employee who retires-- (i) on an immediate annuity under subchapter III of chapter 83 of this title, or another retirement system for employees of the Government, after 5 or more years of service; 14 (ii) under section 8412 or 8414 of this 15 title; or - (iii) for disability under subchapter III 17 of chapter 83 of this title, chapter 84 of this 18 title, or another retirement system for employees 19 of the Government;"; 20 (3) in paragraph (4), by inserting "or chapter 84'' 21 after 83 22 (4) in paragraph (10)(C)(i), by inserting or 8467 23 after -8345(j)", by inserting "or 8445" after 24 11 8341(h)", and by striking out -System)," and. 25 inserting in lieu thereof "System or the Federal 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ,thereof System or the Federal Employees Retirement Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Employees' Retirement System),''; and (5) in paragraph (10)(C)(ii)-- (A) by striking out or 8345(j) and inserting in lieu thereof 8345(j), 8445, or 8467 and by striking out "System)'' and inserting in lieu System)and (B) by inserting ''or 8417(b)" after ..8339(j)(3)'-. 10 (m) AMENDMENTS TO SECTION 8905.--Section 8905(c)(1) of 11 title 5, United States Code, is amended-- 12 (1) in subparagraph (B), by inserting "or 8417(b)" 13 after -8339(j)(3)"; and 14 (2) in the second sentence, by striking out "or 15 8345(j)'.' and inserting in lieu thereof -8345(j), 8445, 16 or 8467~~. 17 (n) AMENDMENT TO SECTION 5102.--Section 5102(c)(14)?of 18 title 5, United States Code, is amended by inserting "(other 19 than employees of the Federal Retirement Thrift Investment 20 Management System appointed under section 8474(c)(2) of this 21 title)" after ''United States". 22 TITLE III--OTHER PROVISIONS RELATING TO THE FEDERAL 23 EMPLOYEES RETIREMENT SYSTEM AND THE CIVIL SERVICE RETIREMENT 24 SYSTEM 25 SEC. 301. ELECTIONS. 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 208 1 (a) ELECTIONS FOR INDIVIDUALS SUBJECT TO THE CIVIL 2 SERVICE RETIREMENT SYSTEM.--(1)(A) Any individual (other than 3 an individual under subsection (b)) who, as of June 30, 1987, 4 is employed by the Federal Government, and who is then 5 subject to subchapter III of chapter 83 of title 5, United 6 States Code, may elect to become subject to chapter 84 of 7 such title. 8 (B) An election under this paragraph may not be made 9 before July 1, 1987, or after December 31, 1987. 10 (2)(A) Any individual who, after June 30, 1987, becomes 11 reemployed by the Federal Government, and who is then subject 12 to subchapter III of chapter 83 of title 5, United'States 13 Code; may elect to become subject to chapter 84 of such 14 title. 15 (B) An election under this paragraph shall not be 16 effective unless it is made during the six-month period 17 beginning on the date on which reemployment commences. 18 (b) ELECTIONS FOR CERTAIN INDIVIDUALS SERVING 19 CONTINUOUSLY SINCE DECEMBER 31, 1983.--The following rules 20 shall apply in the case of any individual described in 21 section 8402(b)(1) of title 5, United States Code: 22 (1) If, as of December 31, 1986, the individual is 23 subject to subchapter III of chapter 83 of title 5, 24 United States Code, but is not subject to section 204 of 25 the Federal Employees Retirement Contribution Temporary Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 209 1 Adjustment Act of 1983, the individual shall remain so 2 subject to such subchapter unless the individual elects, 3 after June 30, 1987, and before January 1, 1988-- 4 (A) to become subject to such subchapter under 5 the same terms and conditions as apply in the case of 6. -an individual described in section 8402(b)(2) of such 7 title who is subject to such subchapter; or 8 (B) to become subject to chapter 84 of such 9 title. 10 An individual eligible to make an election under this 11 paragraph may make the election described in subparagraph 12 (A) or (B), but not both. 13 (2) If, as of December 31, 1986, the individual is 14 subject to subchapter III of chapter 83 of title 5, 15 United States Code, and is also subject to section 204 of 16 the Federal Employees Retirement Contribution Temporary 17 Adjustment Act of 1983, the individual-- 18 (A) shall, as of January 1, 1987, become subject 19 to such subchapter under the same terms and 20 conditions as apply in the case.of an individual 21 described in section 8402(b)(2) of such title who is 22 subject to such subchapter; and 23 (B) may (during the six-month period described in 24 subsection (a)(1)(B)) elect to become subject to 25 chapter 84 of such title. 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 210 1 (3)(A)(i) If, as of December 31, 1986, the individual 2 is not subject to subchapter III of chapter 83 of title 3 5, United States Code, the individual may, during the six- 4 month period described in subsection (a)(1)(B), and if 5 such individual has not since become subject to such 6 subchapter pursuant to notification under section 8331(2) 7 of such title, elect to become subject to chapter 84 of 8 such title. 9 (ii) An individual who makes an election under this 10 subparagraph ceases to be eligible to become subject to 11 subchapter III of chapter 83 of title 5, United States 12 Code, pursuant to notification under section 8331(2) of 13 such title. 14 (B) Except as provided in subparagraph (A)(ii), 15 nothing in this paragraph shall preclude an individual 16 from becoming subject to subchapter III of chapter 83 of 17 title 5, United States Code, pursuant to notification 18 under section 8331(2) of such title. However, an- 19 individual who becomes subject to such subchapter 20 pursuant to notification under such section 8331(2) after 21 December 31, 1986-, shall become subject to such 22 subchapter under the same terms and conditions as apply 23 in the case of an individual described in section 24 8402(b)(2) of such title who is subject to such 25 subchapter. 11 - __ - __ Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (c) EFFECTIVE DATE; IRREVOCABILITY.--An election made 2 under this section-- 3 Al) shall take effect beginning with the first pay 4 period beginning after the date of the election; and (2) shall be irrevocable. (d)' CONDITION FOR MAKING AN ELECTION; EXTENSION To 7 SATISFY CONDITION.--(1) An election under this section to 8 become subject to chapter 84 of title 5, United States Code, 9 shall not be considered effective in the case of an 10 individual having one or more former spouses, unless the 11 election is made with the written consent of such former 12 spouse (or each such former spouse, if there is more than 13 one). 14 (2)(A) This subsection applies with respect to a former 15 spouse who (based on the service of the individual involved) 16 is entitled to benefits under section 8341(h) or 8345(j) of 17 title 5, United States Code, under the terms of a decree of 18 divorce or annulment, or a court order or court-approved 19 property settlement incident to any such decree, with respect 20 to which the Office of Personnel Management has been duly 21 notified. 22 (B) This subsection does not apply with respect to a 23 former spouse who has ceased to be so entitled as a result of 24 remarrying before age 55. 25 (3) The requirement under paragraph (l)'shall be 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 considered satisfied with respect to a former spouse if the 2 individual seeking to make the election establishes to the 3 satisfaction of the Office (in accordance with regulations 4 prescribed by the office)-- 5 (A) that the former spouses whereabouts cannot be 6 determined; or (B) that, due to exceptional circumstances, requiring the individual to seek the former spouses consent would otherwise be inappropriate. 10 (4)(A) The Office shall, upon application of an 11 individual, grant an extension for such individual to make an 12 election referred to in paragraph (1) if such individual-- 13 (i) files application for extension before the end of 14 the period during which such individual would otherwise 15 be eligible to make such election; and 16 (ii) demonstrates to the satisfaction of the Office 17 that the extension is needed to secure the modification 18 of a decree of divorce or annulment (or a court order or 19 court-approved property settlement incident to any such 20 decree) in order to satisfy the consent requirement under 21 paragraph (1). 22 (B) An extension under this paragraph shall be for 6 23 months or for such longer period as the Office considers 24 appropriate. 25 (e) EXCLUSIONS.--This section does not apply to an Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 213 1 individual under section 8331(1)(G) of title 5, United States 2 Code. 3 SEC. 302. EFFECT OF AN ELECTION UNDER SECTION 301 TO BECOME SUBJECT TO THE FEDERAL EMPLOYEES RETIREMENT 5 SYSTEM. 6 (a)'GENERAL AND SPECIAL RULES.--All provisions of chapter 7 84 of title 5, United States Code (including those relating 8 to disability benefits, survivor benefits, and any reductions 9 to provide for survivor benefits) shall apply with respect to 10 any individual who becomes subject to such chapter pursuant 11 to an election under section 301, except if, or to the extent 12 that, such provisions are inconsistent with the following: 13 (1)(A) Any civilian service which is performed before 14 the effective date of the election under section 301 15 shall not be creditable under chapter 84 of title 5, 16 United States Code, except as otherwise provided in this 17 subsection. 18 (B) Any service described in subparagraph (A) which 19 is covered service within the meaning of section 20 203(a)(3) of the Federal Employees' Retirement 21 Contribution Temporary Adjustment Act of 1983 (97 Stat. 22 1107; 5 U.S.C. 8331 note) (hereinafter in this section 23 referred to as covered service) shall be creditable 24 under chapter 84 of title 5, United States Code, if-- 25 (i) with respect to any such service performed -11 - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 10 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 214 before January 1, 1987, 1.3 percent of basic pay for such service was withheld in accordance with such Act or, if either such withholding was not made or was made, but the amount so withheld was subsequently refunded, 1.3 percent of basic pay for such period is deposited to the credit of the Civil Service Retirement and Disability Fund (hereinafter in this section referred to as the "Fund"), with interest (computed under section 8334(e) of such title); and (ii) with respect to any such service performed after December 31, 1986, and before the effective- date of the election, an amount equal to the percentage of basic pay for such service which would be required to be withheld under section 8422(a) of title 5, United States Code, has been contributed to the Fund by the individual involved, whether by withholdings from pay or, if either no withholding was made or was made, but the amount withheld was subsequently refunded, the aforementioned percentage of basic pay for such period is deposited to the credit of the Fund, with interest (computed under section 8334(e) of such title). (C) Any service described in subparagraph (A)-- (i) which is not covered service; (ii) which constitutes service of a type - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 described in section 8411(b)(3) of title 5, United 2 States Code (determined without regard to whether 3 such service was performed before, on, or after 4 January 1, 1989, and without regard to the provisions 5 of section 8411(f) of such title); and 6 (iii) which, in the aggregate, is equal to less 7 than 5 years; 8 shall be creditable under chapter 84 of such title, 9 subject to section 8411(f) of such title. 10 (D) Any service described in subparagraph (A)-- 11 (i) which is not covered service; 12 (ii) which constitutes service of a type 13 described in section 8411(b)(3) of title 5, United 14 States Code (determined without regard to whether 15 such service was performed before, on, or after 16 January 1, 1989, and without regard to the provisions 17 of section 8411(f) of such title); and 18 (iii) which,.-in the aggregate, is equal to 5 19 years or more; 20 shall be creditable for purposes of-- 21 (I) section 8410 of such title, relating to the 22 minimum period of civilian service required to be 23 eligible for an annuity; 24 (II) any provision of section 8412 (other than 25 subsection (d) or (e) thereof), 8413, 8414, 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 216 1 8442(b)(1)(B), or 8451 of such title .which relates to 2 a minimum period of service for entitlement to an 3 annuity; 4 (III) the provisions of paragraphs (4) and (6); 5 (IV) any provision of section 8412(d) of such 6 title which relates to a minimum period of service 7 for entitlement to an annuity, but only if and to the 8 extent that the service described in subparagraph (A) 9 was as a law enforcement officer or firefighter; and 10. (V) any provision of section 8412(e) of such 11 title which relates to a minimum period of service 12 for entitlement to an annuity, but only if and to the 13 extent that the service described in subparagraph (A) 14 was as an air traffic controller. 15 (2)(A) Except as provided in subparagraph (B), the 16 creditability under chapter 84 of title 5, United States 17 Code, of any military service which is performed before 1.8 the effective date of the election under section 301 19 shall be determined in accordance with applicable 20 provisions of such chapter. 21 (B) If the electing individual has performed service 22 described in clauses (i) through (iii) of paragraph 23 (1)(D), service described in subparagraph (A) which, but 24 for the provisions of subsection (b), would be creditable 25 under subchapter III of chapter 83 of title 5, United I - - - - __ Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 217 1 States Code, as in effect-on December 31, 1986, shall be 2 creditable for purposes of-- 3 _ (i) any provision of section 8412 (other than 4 subsection (d) or (e) thereof), 8413, or 8414 of such 5 title which relates to a minimum period of service 6 for entitlement to an annuity; and 7 (ii) the provisions of paragraph (4). 8 (3)(A)(i) If the electing individual becomes entitled 9 to an annuity under subchapter II of chapter 84 of title 10 5, United States Code, or dies leaving a survivor or 11 survivors entitled to benefits under subchapter IV of 12 such chapter, the annuity for such individual shall be 13 equal to the sum of the individuals accrued benefits 14 under the Civil Service Retirement System (as determined 15 under paragraph (4)) and the individuals accrued 16 benefits under the Federal Employees' Retirement System 17 (as determined under paragraph (5)). 18 (ii) An annuity computed under this subparagraph 19 shall be deemed to be the individuals annuity computed 20 under section 8415 of title 5, United States Code. 21 (B) If the electing individual becomes entitled to an 22 annuity under subchapter V of chapter 84 of title 5, 23 United States Code, and if it becomes necessary to 24 compute an annuity under section 8415 of such title with 25 respect to such individual as a result of such Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 218 1 individual's having become so entitled, the methodology 2 set forth in subparagraph (A) shall be used in computing 3 any such annuity under section 8415. 4 (4) Except as provided in paragraph (12)(B), accrued 5 benefits under this paragraph shall be computed in 6 accordance with applicable provisions of subchapter III 7 of chapter 83 of title 5, United States Code (but without 8 regard to subsection (j) or (k), or the second sentence 9 of subsection (e), of section 8339 of such title) using 10 only any civilian service under paragraph (1)(D), and any 11 military service under paragraph (2)(B), which would be 12 creditable for purposes of computing an annuity under 13 such subchapter. 14 (5) Accrued benefits under this paragraph shall'be 15 computed under section 8415 of title 5, United States 16 Code, using-- 17 (A) total service creditable under chapter 84 of 18 such title which is performed on or after the- 19 effective date of the election under section 301; and 20 (B) with respect to service performed before such 21 effective date-- 22 (i) creditable civilian service (as 23 determined under applicable provisions of this 24 subsection) other than any service described in 25 paragraph (1)(D); and Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 219 1 (ii) creditable military service (as 2 determined under applicable provisions of this 3 subsection) other than any service described in 4 paragraph (2)(B). 5 (6)(A) For purposes of any computation under 6 paragraph (4) or (5), the average pay to be used shall be 7 the largest annual rate resulting from averaging the 8 individuals rates of basic pay in effect over any 3 9 consecutive years of creditable service or, in the case 10 of an annuity based on service of less than 3 years, over 11 the total period of service so creditable, with each rate 12 weighted by the period it was in effect. 13 (B) For purposes of subparagraph (A), service shall 14 be considered creditable if it would be considered 15 creditable for purposes of determining average pay under 16 chapter 83 or 84 of title 5, United States Code. 17 (7) The cost-of-living adjustments for the annuity of 18 the electing individual shall be made as follows: 19 (A) The portion of the annuity attributable to 20 paragraph (4) shall be adjusted-at the time and in 21 the amount provided for under section 8340 of title 22 5, United States Code. 23 (B) The portion of the annuity attributable to 24 paragraph (5) shall be adjusted at the time and in 25 the amount provided for under section 8462 of title 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 220 1 5, United States Code. 2 (8) For purposes of any computation under paragraph 3 (4) in the case of an individual who retires under 4 section 8412 or 8414 of title 5, United States Code, or 5 who dies leaving a survivor or survivors entitled to 6 benefits under subchapter IV of such chapter, sick leave 7 creditable under section 8339(m) of such title shall be 8 equal to the number of days of unused sick leave to the 9 individual's credit as of the date of retirement or as of 10 the effective date of the individual's election under 11 section 301, whichever is less. 12 (9) In computing the annuity under paragraph (3) for 13 an individual retiring under section 8412(g) or 8413(b) 14 of title 5, United States Code, the reduction under 15 section 8415(f) of such title shall apply with respect to 16 the sum computed under such paragraph. 17 (10) An annuity supplement under section 8421 of 18 title 5, United States Code, shall be computed using the 19 same service as is used for the computation under 20 paragraph (5). 21 (11) Effective from its commencing date,' an annuity 22 payable to an annuitants survivor (other than a child 23 under section 8443 of title 5, United States Code) shall 24 be increased by the total percent by which the deceased 25 annuitant's annuity was increased under paragraph (7). Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 221 1 (12)(A) If the electing'individual is subject to 2 section 8344 of title 5, United States Code, at the time 3 of making the election, payment of annuity benefits 4 otherwise payable to such individual under subchapter III 5 of chapter 83 of such title (and any related deductions 6 froth pay) shall terminate as of the effective date of the 7 election. 8 (B) Accrued benefits under paragraph (4) for an 9 individual described in subparagraph (A) shall be 10 computed-- 11 (i) in accordance with applicable provisions of 12 subchapter III of chapter 83 of title 5, United 13 States Code (but without regard to subsection (j) or 14 (k), or the second sentence of subsection (e), of 15 section 8339 of such title) using only any civilian 16 service under paragraph.(l)(D), and any military 17 service under paragraph (2)(B), which would be 18 creditable for purposes of computing an annuity under 19 such subchapter; and 20 (ii) as if the individuals reemployment 21 terminated on the effective date of the election. 22 (b) CHAPTER 83 GENERALLY INAPPLICABLE.--(1) Except as 23 provided in subsection (a) or paragraph (2), subchapter III 24 of chapter 83 of title 5, United States Code, shall not apply 25 with respect to any individual who becomes subject to chapter 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 222 1 84 of title 5, United States Code, pursuant to an election 2 under section 301. 3 .(2) Nothing in paragraph (1), or in subchapter III of 4 chapter 83 of title 5, United States Code, shall preclude-- 5 (A) the making of a deposit under such subchapter 6 with respect to any civilian service under subsection 7 (a)(1)(D) or military service under subsection (a)(2)(B) 8 either by the electing individual or, for purposes of 9 survivor annuities, by a survivor of such individual. 10 (B) Nothing in paragraph (1) shall preclude the' 11 payment of any lump-sum credit in accordance with'seation 12 8342 of title 5, United States Code. 13 (c) REFUNDS RELATING TO CERTAIN CIVILIAN SERVICE.--(l) 14 Any individual who makes an election under section 301 to 15 become subject to chapter 84 and who, with respect to any 16 period before the effective date of the election, has made a 17 contribution to the Civil Service Retirement System (whether 18 by deductions from pay or by a deposit or redeposit)'and has 19 not taken a refund of the contribution (as so made), shall be 20 entitled to a refund equal to-- 21 (A) for a period of service under clause (i) of 22 subsection (a)(1)(B), the amount by which-- 23 (i) the amount contributed with respect to such 24 period, exceeds 25 (ii) the amount required under such clause (i) Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 223 1 with respect to such period; 2 (B) for a period of service under clause (ii) of 3 subsection (a)(1)(B), the amount by which-- 4 (i) the amount so contributed with respect to 5 such period, exceeds (ii) the amount required under such clause (ii) with respect to such period; and (C) for a period of service under subparagraph (C) of subsection (a)(1), the amount by which-- (i) the amount so contributed with respect to 11 such period, exceeds 12 (ii) the amount required under such subparagraph 13 with respect to such period. 14 (2) A refund under this subsection-- 15 (A) shall be payable with interest, computed at the 16 rate applicable for the period involved under section 17 8331(8)(C) of title 5, United States Code, but only if 18 such interest would be payable pursuant to an application 19 for a lump-sum credit appropriately filed under 20 subchapter III of chapter 83 of such title; and 21 (B) shall be payable upon written application 22 therefor filed with the Office of Personnel Management. 23 SEC. 303. PROVISIONS RELATING TO AN ELECTION TO BECOME 24 SUBJECT TO CHAPTER 83 SUBJECT TO CERTAIN 25 OFFSETS RELATING TO SOCIAL SECURITY. 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 224 1 (a) REFUND.--Any individual who makes an election under 2 section 301(b)(1)(A) shall, upon written application to the 3 Office of Personnel Management, be entitled to a refund equal 4 to-- 5 (1) for the period beginning on January 1, 1984, and 6 ending on December 31, 1986, the amount by which-- 7 (A) the total amount deducted from such 8 individual's basic pay under section 8334(a)(1) of 9 title 5, United States Code, for such period, exceeds 10 (B) 1.3 percent of such individual's total basic 11 pay for such period; and 12 (2) for the period beginning on January 1, 1987, and 13 ending on the day before the effective date of the 14 election, the amount by which-- 15 (A) the total amount deducted from such 16 individuals basic pay under such section 8334(a)(1) 17 for such period, exceeds 18 (B) the total amount which would have been 19 deducted ifs such individual's basic pay had instead 20 been subject to section 8334(k) of such title during 21 such period. 22 (b) DEPOSIT REQUIREMENTS.--(1) In the case of an 23 individual who becomes subject to subchapter III of chapter 24 83 of title 5, United States Code, pursuant to notification 25 as described in the second sentence of section 30.1(b)(3)(B), Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 225 1 service performed by such individual before the effective 2 date of the notification shall not be considered creditable 3 under such subchapter unless-- 4 (A) for any service during the period beginning on 5 January 1, 1987, and ending on the day before such 6 effective date, there is deposited to the credit of the Fund a percentage of basic pay for such period equal to the percentage which would have applied under section 9 8334(k) of such title if such individuals pay had been 10 subject to such section during such period; 11 (B) for any period of service beginning on January 1, 12 1984, and ending on December 31, 1986, there is deposited 13 to the credit'of the Fund an amount equal to 1.3 percent 14 of basic pay for such period; and 15 (C) -for any period of service before January 1, 1984, 16 there is deposited to the credit of the Fund any amount 17 required with respect to such period under such 18 subchapter. 19 (2) A deposit under this subsection may be made by the 20 individual or, for purposes of survivor annuities, a survivor 21 of such individual. 22 SEC. 304. AMENDMENTS RELATING TO SOCIAL SECURITY. 23 (a) AMENDMENTS TO SOCIAL SECURITY ACT.--Section 210(a)(5) 24 of the Social Security Act is amended-- 25 (1) by striking out "or" at the end of subparagraph 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 FERS (F); 4 3 (2) by striking out the semicolon at the end of subparagraph (G) and inserting in lieu thereof , or ; and K 11 (3) by adding at the end thereof the following: 1 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 (H) service performed by an individual on after the effective date of an election by such individual under section 301(a) of the Federal Employees' Retirement System Act of 1986 to become ,subject to chapter 84 of title 5, United States Code . (b) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1954.--Section 3121.(b)(5) of the Internal Revenue Code of 1954 is amended-- (1) by striking out or at the end of subparagraph (F); (2) by striking out the semicolon at the end of subparagraph (G) and inserting in lieu thereof or (3) by adding at the end thereof the following: (H) service performed by an individual on or after the effective date of an election by such individual under section 301(a) of the Federal Employees' Retirement System Act of 1986 to become subject to chapter 84 of title 5, United .States 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 FERS 1 Code; . 2 SEC. 305. EXTENSION OF FEDERAL EMPLOYEES' RETIREMENT CONTRIBUTION TEMPORARY ADJUSTMENT ACT OF 1983; REFUND OF EXCESS CONTRIBUTIONS. (a) EXTENSION.--The Federal Employees' Retirement Contribution Temporary Adjustment Act of 1983 (97 Stat. 1106; 7 5 U.S.C. 8331-note) is amended-- 8 (1) in sections 202(6), 203(a)(4)(A), 203(a)(4)(B), 9 204(a), and 206'(b)(2)(A)(i) by striking "May 1, 1986" 10 each place it appears and inserting "January 1, 1987", 11 and in sections 202(1) and 206(c)(3) by striking 12 .. January 1, 1986'' and inserting "January 1, 1987''; 13 and 14 (2) in subsections (b) and (c) of section 205, by 15 striking out and 1986 and inserting in lieu thereof 16 1986, and 1987. 17 (b) REFUNDS.--(l) The amendments made by subsection (a) 18 shall be effective as of- May 1, 1986. 19 (2) Any refund payable to an individual as a result of 20 paragraph (1) shall be paid out of funds of the appropriate 21 retirement system. 22 (3) For purposes of this subsection, the term 23 ..retirement system" means a covered retirement system as 24 defined by section 203(a)(2) of the Federal Employees' 25 Retirement Contribution Temporary Adjustment Act of 1983 (97 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1-111 III! III .1 1. 1 i J 1 t J111 11LL1 11 _ _-LLI 1-_ Approved For Release 2010/12/28: CIA-RDP89-00066R000401 u 0090002-0 FERS 228 1 Stat. 1107; 5 U.S.C. 8331 note). 2 SEC. 306. APPLICABILITY TO THE UNITED STATES POSTAL SERVICE. Section 1005(d) of title 39, United States 4 amended to read as follows: (d) Officers and employees of the Postal than the Governors) shall be covered by chapter title 5. The Postal Service shall withhold from ode, is Service (other s 83 and 84 of pay and shall pay into the Civil Service Retirement and Disability Fund the 9 amounts specified in or determined under such chapter 83 and 10, subchapter II of such chapter 84, respectively.!The Postal 11 Service shall pay into the Federal Retirement Tlhrift Savings 12 Fund the amounts specified in or determined under Subchapters 13 III and VII of such chapter 84. .. ., it 14 SEC. 307. USE OF NORMAL-COST PERCENTAGE 15 Notwithstanding any other provision of law,, the normal- 16 cost percentage (as defined by section 8401(23)I1 of title 5, 17 United States Code, as added by this Act) of the Federal 18 Employees' Retirement System shall be used to v1alu,e the cost 19 of the System for all purposes in which the cost of the 20 System. is required to be determined by the Federal 21 Government, including any comparisons between the cost of 22 .performing commercial activities under contract) with 23 commercial sources and the cost of performing those 24 activities.using Government facilities and personnel.. 25 SEC. 308. RETIREMENT STUDY. J-71,:. ,,_., _ 7_ Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 L Il L _ ~_ i i i I~ ly - i. u< < L Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 (a) STUDY AND PLA?N.--The Secretary of Defense and 2 Secretary of Transportation shall conduct a study of the 3 retirement systems provided for employees of nonappropriated 4 fund instrumentalities of the United States under their 5 respective jurisdictions and shall develop a feasible plan or plans'to provide portability of vested retirement benefits among such retirement systems and other Federifl Government retirement systems. (b) REPORT.--Not later than ]U ays after the date of it 10 enactment of this Act,.the Secretary of Defense and secretary 11 of Transportation shall transmit a report to the Congress 12 describing the plan or plans developed pursuant to subsection 13 (a) and the anticipated schedule for the implementation of .14 such plan or plans. 151, SEC. 309. REPEAL OF AUTOMATIC TRANSFER PROVISION. 16 Section 207 of the Federal Employees' Reti 17 Contribution Temporary Adjustment Act of 1983 18 5 U.S.C. 8331 note) is repealed. 19' SEC. 310. DISCLOSURE OF RETURN INFORMATION. 20 (a) IN GENERAL.--Subsection (1) of section (97;Stat. 1111; 6103 of the 21 Internal Revenue Code of 1954 ,i (relating to disclosure of 22 returns and return information for purposes other`than tax 23 administration) is a ens?a ~?? - m 24 following new paragraph: 25 1.(12) DISCLOSURE OF RETURN INFORMATIO TO,CARRY OUT Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 FEDERAL EMPLOYEES RETIREMENT SYSTEM.-- ' (A) IN GENERAL.--The Commissioner of Social 3 Security shall, on written request, disclose to the 4 Office of Personnel Management return information 5 from returns with respect to net earnings from self- 6 employment (as defined in section 1402), wages (as 7 defined in section 3121(a) or 3401(a)), and payments 8 of retirement income, which have been disclosed to 9 the Social Security Administration as provided by 10. paragraph (1) or (5). 11 - (B) RESTRICTION ON DISCLOSURE.--The 12 Commissioner of. Social Security shall disclose return 13 information under subparagraph (A) only for purposes 14 of, and to the extent necessary in, the is administration of chapters 83 and 84 of title 5, 17 (b) CONFORMING AMENDMENTS.-- 18 (1) Subparagraph (A) of section 6103(p)(3) of.such 16 United States Code.' 19 Code is amended by striking out "(10), or (11)" and 20 inserting in lieu thereof "(10), (11), or (12) 21 (2) Paragraph (4) of section 6103(p) of such Code is 22 amended-- 23 (A) by striking out ''(10), or (11)" in the 24 material preceding subparagraph (A) and inserting in " 25 lieu thereof ''(10), (11), or (12)'', and 11 - -.. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 (B) by striking out (10), or (11) in subparagraph (F)(ii) and inserting in lieu thereof (10), (11), or (12)~~. 4 (c) REIMBURSEMENT.--The Office of Personnel Management 5 shall reimburse the costs (as determined by the Secretary of 6 Health and Human Services) of supplying-- (1) information under section 6103(1)(12) of the Internal Revenue Code of 1954; and (2) such other information agreed upon by the 10 Director of the Office of Personnel Management and the 11 Secretary of Health and Human Services, which is required 12 in the administration of chapters 83 and 84 of title 5, 13 United States Code. 14 Section 1106 (b) and (c) of the Social Security Act shall 15 apply. to any reimbursement under this subsection. 16 SEC. 311. INITIAL APPOINTMENTS TO THE FEDERAL RETIREMENT 17 THRIFT INVESTMENT BOARD. 18 (a) INITIAL APPOINTMENT OF MEMBERS.--The members of the 19 Federal Retirement Thrift Investment Board first appointed to 20 such Board shall be appointed without regard to the 21 requirement prescribed in section 8472(c) of title 5, United 22 States Code (as added by section 101(a) of this Act). 23 (b) TERMS OF SERVICE.--Notwithstanding subsection (e)(1) 24 of section 8472 of title 5, United States Code (as added by 25 section 101(a) of this Act), the term of service of each Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 232 1 member of the Federal Retirement Thrift Investment Board 2 appointed pursuant to subsection (a) shall be 1 year, except 3 that such member shall continue to serve until his successor 4 is appointed under subsection (b) of such section 8472 and 5 confirmed under subsection (c) of such section. 6 SEC. 312. PLAN FOR DELAYED CONTRIBUTIONS TO THE THRIFT 7 SAVINGS FUND. 8 Not later than January 1, 1988, the Executive Director of 9 the Federal Retirement Thrift Investment Board shall transmit 10 to Congress a plan to afford employees of the Federal 11 Government and Members of Congress who make less than the 12 maximum amount of authorized contributions to the Thrift 13 Savings Fund in any period an opportunity to contribute to 14 such Fund, in a later period, the excess of such amount over 15 the amount contributed during such period. The plan shall 16 include such recommendations for legislation as the Executive 17 Director considers appropriate. 18 TITLE IV--FOREIGN SERVICE RETIREMENT 19 SEC. 401. SHORT TITLE; REFERENCES TO FOREIGN SERVICE ACT OF 20 1980. 21 (a) SHORT TITLE.--This title may be cited as the 22 '~Foreign Service Pension System Act of 1986''. 23 (b) AMENDMENTS TO FOREIGN SERVICE ACT OF 1980.--Whenever 24 in this title a section or other provision is amended, such r 25 amendment shall be considered to be made to that section or 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 233 1 other provision of the Foreign Service Act of 1980 (22 U.S.C. 2 3901 et seq.). 3 SEC. 402. REDESIGNATION OF CERTAIN PROVISIONS OF THE FOREIGN SERVICE ACT OF 1980. 5 (a).CONFORMING CHAPTER AMENDMENTS.--Chapter 8 of title I 6 (22 U.S.C. 4041 et seq.) is amended-- (1) by striking out the caption of such chapter and inserting in lieu thereof the following: 9 CHA?TER 8--FOREIGN SERVICE RETIREMENT AND DISABILITY 10 "SUBCHAPTER I--FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM" 12 (2) by striking out ' this chapter. each place it 13 appears and.inserting in lieu thereof "this 14 subchapter"; and 15 (3) by inserting %'under this subchapter" after 16 payable from the Fund'' each place it appears. 17 (b) CONFORMING AMENDMENTS RELATING TO RETIREMENT FOR 18 DISABILITY OR INCAPACITY,--(1) Section 808(d) (22 U.S.C. 19 4048(d)) is amended-- 20 (A) by striking out "such subchapter'' each place it 21 appears in the second and third sentences and inserting 22 in lieu thereof "subchapter I of such chapter 8"; and 23 (B) by striking out Act each place it appears and 24 inserting in lieu thereof "subchapter''. 25 (2) Section 808(e) (22 U.S.C. 4048(e)) is amended by Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 striking out ~~Act'' each place'it appears and inserting in 2 lieu thereof ''subchapter''. 3 (c) CONFORMING AMENDMENTS RELATING TO DEATH IN 4 SERVICE.--Section 809(a)(22 U.S.C. 4049(a)) is amended by 5 striking out " Act and inserting in lieu thereof 6 subchapter 7 SEC. 403. DEFINITION OF COURT. 8 Section 804(3) (22 U.S.C. 4044(3)) is amended by striking 9 out ~~or of the District of Columbia and inserting in lieu 10 thereof the following: the District of Columbia, the 11 Commonwealth of Puerto Rico, Guam, the Northern Mariana - 12 Islands, or the Virgin Islands, and any Indian court as 13 defined by section 201(3) of the Act entitled 'An Act to 14 prescribe penalties for certain acts of violence or 15 intimidation, and for other purposes , approved April 11, 16 1968 (25 U.S.C. 1301(3); 82 Stat. 77). 17 SEC. 404. CREDITABLE SERVICE FOR PURPOSES OF SUBCHAPTERS I 18 AND II. 19 (a) PRO RATA SHARE.--Section 804(10) (22 U.S.C. 4044(10)) 20 is amended by inserting (creditable under subchapter I or 21 II) after creditable service each place it appears. 22 (b) FORMER SPOUSES.--(l) Section 814(a)(1) (22 U.S.C. 23 4054(a)(1)) is amended by adding at the end thereof the 24 following: I~For the purposes of this paragraph, the term 25 'creditable service means service which is creditable under Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 subchapter I or II.. 2 (2) Section 814(b)(1).(22 U.S.C. 4054(b)(1)) is amended 3 by adding at the end thereof the following: For the 4 purposes of this paragraph, the term 'creditable service' 5 means service which is creditable under subchapter I or II. . 7 (c) LUMP-SUM PAYMENTS.--Section 815(i) (22 U.S.C. 8 4055(i)) is amended by adding at the end thereof the 9 following: For the purposes of this subsection, the te:m 10 'creditable service means service which is creditable under 11 subchapter I or II.. 12 SEC. 405. CONTRIBUTIONS TO THE FOREIGN SERVICE RETIREMENT AND 13 DISABILITY SYSTEM. 14 (a) CONTRIBUTIONS AFTER DECEMBER 31, 1986.--Section 805 15 (22 U.S.C. 4045) is amended-- 16 (1) by inserting "Except as provided in subsection 17 (h)," before -7 percent" in the first sentence of 18 subsection (a); and 19 (2) by adding at the end thereof the following new 20 subsection (h): . I (h) Effective with respect to pay periods beginning 22 after December 31, 1986, in administering this section with 23 'respect to a participant described in section 853(c) whose 24 service is employment for the purposes of title II of the 25 Social Security Act and chapter 21 of the Internal Revenue Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 236 1 Code of 1954, contributions to the fund and interest thereon 2 shall be computed as if section 8334(k) of title 5, United 3 States Code, were applicable.. 4 (b) CREDITABILITY OF INTERIM SERVICE.--Subsection (d) of 5 section 805 (22 U.S.C. 4045(d)) is amended by adding at the 6 end thereof the following: 7 (4) Notwithstanding the preceding provisions of this 8 subsection and any provision of section 206(b)(3) of the 9 Federal Employees Retirement Contribution Temporary 10 Adjustment Act of 1983, the percentage of basic pay required 11 under this subsection in the case of a participant described 12 in section 853(c) shall, with respect to any covered service 13 (as defined by section 203(a)(3) of such Act) performed by 14 such individual after December 31, 1983, and before January 15 1, 1987, be equal to 1.3 percent. . 16 SEC. 406. OFFSET OF ANNUITY BY THE AMOUNT OF SOCIAL SECURITY 17 BENEFITS. 18 Section 806 (22 U.S.C. 4046) is amended by adding-at the 19 end thereof the following new subsection: (m) The annuity or survivor annuity payable to any 21 individual subject to section 805(h) beginning with the first 22 month for which such individual both-- 23 .1(1) attains the minimum age for old age benefits 24 under title II of the Social Security Act, and 25 ? (2) first becomes entitled, or would uppn proper Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 237 1 application become entitled, for disability or survivor 2 benefits under title II of the Social Security Act based 3 on the service of any individual under this subchapter, 4 shall be computed as if section 8349 of title 5, United 5 States Code, were applicable. . 6 SEC. 407. 18-MONTH PERIOD TO ELECT SURVIVOR ANNUITY. 7 Section 806 (22 U.S.C. 4046) is further amended by adding 8 at the end thereof the following: (n)(1)(A) A participant-- 10 .'(i) who, at the time of retirement, is married; and 11 - (ii) who elects at such time (in accordance with 12 subsection (b)) to waive a survivor annuity, 13 may, during the 18-month period beginning on the date of the 14 retirement of such participant, elect to have a reduction 15 under subsection (b) made in the annuity of the participant 16 (or in such portion thereof as the participant may designate) 17 in order to provide a survivor annuity for the spouse of such 18 participant. %%(B) A participant-- 20 '(i) who, at the time of retirement, is married, and 21 (ii) who at such time designates (in accordance 22 with subsection (b)) that a limited portion of the 23 annuity of such participant is to be used as the base for 24 a survivor annuity, 25 may, during the 18-month period beginning on the date of the 11 - -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 238 1 retirement of such participant, elect to have a greater 2 portion of the annuity of such participant so used. 3 (2)(A) An election under subparagraph (A) or (B) of 4 paragraph (1) of this subsection shall not be considered 5 effective unless the amount specified in subparagraph (B) of 6 this paragraph is deposited into the Fund before the 7 expiration of the applicable 18-month period under paragraph 8 (1). . 1 9 (B) The amount to be deposited with respect to an 10 election under this subsection is an amount equal to the sum 12 '.(i) the additional cost to the System which is 13 associated with providing a survivor annuity under 14 subsection (b) of this section and results from such 15 election taking into account (I) the difference (for the 16 period between the date on which the annuity of the 17 former participant commences and the date of the 18 election) between the amount paid to such former 19 participant under this subchapter and the amount which 20 would have been paid if such election had been made at 21 the time the participant or former participant applied 22 for the annuity, and (II) the costs associated with 23 providing the later election; and 24 (ii) interest on the additional cost determined 25 under clause (i)(I) of this subparagraph computed using Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 239 1 the interest rate specified 'or determined under section 2 805(d)(3) for the calendar year in which the amount to be 3 deposited is determined. 4 (3) An election by a participant under this subsection 5 voids prospectively any election previously made in the case 6 of such participant under subsection (b). 7 - (4) An annuity which is reduced in connection with an 8 election under this subsection shall be reduced by the same 9 percentage reductions as were in effect at the time of the 10 retirement of the participant whose annuity is so reduced. (5) Rights and obligations resulting from the election 12 of a reduced annuity under this subsection shall be the same 13 as the rights and obligations which would have resulted had 14 the participant involved elected such annuity at the time of 15 retiring. . 16 SEC. 408. ALTERNATE FORMS OF ANNUITIES. 17 Section 807 (22 U.S.C. 4047) is amended by adding at the 18 end thereof the following: 19 (e)(1) The Secretary of State shall prescribe 20 regulations under which a participant may, at the time of 21 retiring under this subchapter (other than under section 22 808), elect annuity benefits under this section instead of 23 any other benefits under this subchapter (including survivor 24 benefits) based on the service of the participant. 25 (2) Subject to paragraph (3), the Secretary of State - - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 240 1 shall by regulation provide for such alternative forms of 2 annuities as the Secretary considers appropriate, except that 3 among the alternatives offered shall be-- (A) an alternative which provides for-- 5 ''(i) payment of the lump-sum credit (excluding 6 interest) to the participant; and 7 (ii) payment of an annuity to the participant 8 for life; and 9 (B) in the case of a participant who is married at 10 the time of retirement, an alternative which provides 11 for-- ''(i) payment of the lump-sum credit (excluding 13 interest) to the participant; and - (ii) payment of an annuity to the participant 15 for life, with a survivor annuity payable for the 16 life of a surviving spouse. 17 I%(3) Each alternative provided for under paragraph?(2) 18 shall, to the extent practicable, be designed such that the 19 total value of the benefits provided under such alternative 20 (including any lump-sum credit) is actuarially equivalent to 21 the value of the annuity which would otherwise be provided 22 the participant under this subchapter, as computed under of 23 section 806(a). 24 (4) A participant who, at the time of retiring under 25 this subchapter-- 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 %, (A) is married, shall be ineligible to make an 2 election under this section unless a waiver is made under 3 section 806(b)(1)(B); or - (B) has a former spouse, shall be ineligible to 5 make an election under this section if the former spouse 6 is entitled to benefits under this subchapter (based on 7 the service of the participant) unless a waiver has been 8 made under section 806(b)(1)(C). . 1 (5) A participant who is married at the time of 10 retiring under this subchapter and who makes an election 11 under this section may, during the 18-month period beginning 12 on the date of retirement, make the election provided for 13 under section 806(n), subject to the deposit requirement 14 thereunder. 15 SEC. 409. TREATMENT OF CERTAIN RECALL SERVICE. 16 Section 823 (22 U.S.C. 4063) is amended by adding at the 17 end thereof the following: (c) If an annuitant becomes subject to subchapter II of 19 this chapter by reason of recall service-- 20 I%(1) subsections (a) and (b) shall not apply to such 21 annuitant; and ~(2) section 824 shall apply to the recall service 23 as if such service were reemployment. " . 24 SEC. 410. REEMPLOYMENT. 25 Section 824 (22 U.S.C. 4064) is amended to read as Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 2 "SEC. 824. REEMPLOYMENT.--(a)(1)(A) Except in the case 3 of an annuitant who makes an election under subsection (b), 4 if any former participant, who has retired and is receiving 5 an annuity under this subchapter or subchapter II of this 6 chapter, becomes employed in an appointive or elective 7 position in the Government, payment of any annuity under 8 either subchapter to the annuitant shall terminate effective 9 on the date of the employment and the reemployment service 10 shall be covered service under the rules of the system under 11 which the appointment is made. I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 ~I (B) If the annuity of an individual is terminated under 13 subparagraph (A) and that individual becomes covered under 14 the same retirement system from which that annuity is 15 terminated, that individual shall be entitled to a 16 redetermination of rights under that system upon termination 17 of the employment. 18 11 (C) If the annuity is terminated and the individual 19 becomes covered under another contributory retirement system 20 for Government employees pursuant to paragraph (A), the 21 individual shall be entitled to benefits under the rules of 22 that system. In addition, the individual shall be entitled to 23 a resumption of any annuity terminated by reason of the 24 employment. .. (b)(1) A participant who is entitled to an annuity 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 243 1 under this subchapter or subchapter II of this chapter and 2 becomes employed in an appointive or elective position in the 3 Government on a part-time, intermittent, or temporary basis 4 may elect to continue to receive either or both annuities as 5 provided in this subsection. 6 1.(2) The total annuity payable under this chapter to an 7 annuitant making an election under paragraph (1) shall be 8 reduced during the part-time, intermittent, or temporary 9 employment referred to in paragraph (1) as necessary to meet 10 the requirements of paragraph (3). 11 (3) The sum of-- 12 (A) the total annuity payable under this chapter to 13 an annuitant making an election under paragraph (1), and (B) the annual rate of pay payable to the annuitant 15 during the part-time, intermittent, or temporary 16 employment referred to in paragraph (1), 17 may not exceed, in any calendar year, the highest annual rate 18 of pay which is payable during such year for full-time 19 employment in the position in which the annuitant is 20 employed. 21 I.(4) Upon termination of the part-time, intermittent, or 22 temporary employment referred to in paragraph (1), payment of 23 the full annuity of an annuitant who has made an election 24 under paragraph (1) of this subsection shall resume. 25 " (c) The amount of annuity which has been terminated or Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 111111, IM] --k 111 - L Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 FERS 1 reduced under 2 the annuitant 3 amount of the this section by reason of the reemployment of and is resumed under this section annuity which would have been payable if the annuitant had not annuity resulting to subsection (a) accepted the reemployment. The amount of an from a redetermination of rights pursuant shall not be less than the amount of an 7 annuity resumed under the previous sentence. (d) The annuity rights of any-participant 9 reemployed in the Government shall be determined under this 10 section instead of section 8468 of title 5, United States 12 (e) When any such retired participant is eemployed, 13 the'employer shall send a notice of such reemployment to the 14 Secretary of State, together with all pertinent;linformation, 15 relating to such employment, and shall pay directly to such 16 participant the salary of the position in which 17 serving. 18 - (f) In the event of any overpayment under this section, 19 such overpayment shall be recovered by withholding the amount 20 involved from the salary payable to such reemployed 21 participant or from any other moneys, including 22 payments, payable under this chapter.''. annuity 23 SEC. 411. COMPARABILITY BETWEEN THE FEDERAL EMPLOYEES RETIREMENT SYSTEM AND THE FOREIGN SERVICE 25 PENSION SYSTEM. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I~III 1 II II III 1 1 I ~ I 1 ; . ill ;IJLLI : '!i 1, _L -A Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 2.45 1 Section 827 (22 U.S.C. 4067) is amended by adding at the 2 end thereof the following: 3 ' (c) The President shall maintain, under the same 4 conditions and in the same manner as provided it subsections 5 (a) and (b) existing conformity between the Federal 6 Employees' Retirement System provided in chapter 84 of title 7 5, United States Code, and the Foreign Service Pension System 8 provided in subchapter II of this chapter.''. SEC. 412. MODERATION OF REMARRIAGE PENALTY. 10 Chapter 8 of title I (22 U.S.C. 4041 et seq.) is further 11 amended by adding after section 827 the following: 12 ~~SEC. 828. REMARRIAGE.--Notwithstanding any other 11 13 provision of this subchapter, any benefit payable under this 14 subchapter to a surviving spouse, former spouse, or surviving 15 former spouse that would otherwise terminate or be lost if 16 the individual remarried before 60 years of age,, shall not 17 terminate or be lost if the remarriage occurred!!.~on,or after 18 November 8, 1984, and the individual was 55 years of age or 19 over on the date of the remarriage.. 20 SEC. 413. LUMP-SUM PAYMENTS. 21 Subsection (a) of section 815 is amended byeadding at the 22 end thereof the following: A participant who becomes 23 subject to subchapter II shall be entitled to payment of the 24 lump-sum credit if, and to the extent that, such.lump-sum 25 credit relates to service of a type described in clauses (i) ,, ~, ? Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 J. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 246 1 through (iii) of section 302(a)(1)(C) of the Federal 2 Employees' Retirement System Act of 1986.". 3 SEC. 414. EXCLUSION OF PARTICIPANTS IN FOREIGN SERVICE 4 PENSION SYSTEM FROM FOREIGN SERVICE RETIREMENT 5 AND DISABILITY SYSTEM. 6 Section 803 is amended-- 7 (1) in subsection (a), by striking out ~*The- and 8 inserting in lieu thereof Except as provided in 9 subsection (d), the and 10 (2) by adding at the end thereof the following: 11 (d) An individual subject to the Foreign Service 12 Pension System (described in subchapter II) is not a 13 participant in this System. . 14 SEC. 415. FOREIGN SERVICE PENSION SYSTEM. 15 Chapter 8 of title I (22 U.S.C. 4041 et seq.) is further 16 amended by adding at the end thereof the following: 17 SUBCHAPTER II--FOREIGN SERVICE PENSION SYSTEM 18 "SEC. 851. ESTABLISHMENT.--(a) There is hereby 19 established a Foreign Service Pension System. 20 (b) Except as otherwise specifically provided in this 21 subchapter or any other provision of law, the provisions of 22 chapter 84 of title 5, United States Code, shall apply to all 23 participants in the Foreign Service Pension System and such 24 participants shall be treated in all respects similar to 25 persons whose participation in the Federal Employees' 11 - - - _ _ Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 247 1 Retirement System provided in that chapter is required. 2 "SEC. 852. DEFINITIONS.--As used in this subchapter, 3 unless otherwise specified-- 4 (1) the term 'court order' has the same meaning 5 given in section 804(4); 6 1.(2) the term 'Fund' means the Foreign Service 7 Retirement and Disability Fund maintained by the 8 Secretary of the Treasury pursuant to section 802; 9 - (3) the term 'normal cost' means the entry-age 10 normal cost of the provisions of the System which relate 11 to the Fund, computed by the Secretary of State in 12 accordance with generally accepted actuarial practice and 13 standards (using dynamic assumptions) and expressed as a 14 level percentage of aggregate basic pay; 15 (4) the term 'participant means a person who 16 participates in the Foreign Service Pension System; 17 1%(5) the term 'pro rata share' in the case of any 18 former spouse of any participant or former participant 19 means the percentage which is equal to the percentage 20 that (A) the number of years during which the former 21 spouse was married to the participant during the service 22 of the participant which is creditable under this chapter 23 is of (B) the total number of years of such service, 24 disregarding extra credit under section 817; ; (6) the term 'supplemental liability means the 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 estimated excess of-- (B) the sum of-- ~I (i) the actuarial present value of (I) deductions to be withheld from the future basic' pay of participants pursuant to section 856 and (II) contributions for past civilian and military service; 12 (ii) the actuarial present value of future 13 contributions to be made pursuant to section 857; (A) the actuarial present value of all future benefits payable from the Fund under this subchapter based on the service of participants or former participants, over ''(iii) the Fund balance as of the date the supplemental liability is determined, to the extent that such balance is attributable- (I) to the System, or (II) to the contributions made under the Federal Employees' Retirement Contribution Temporary Adjustment Act of 1983 (5 U.S.C. 8331 note); and ~I (iv) any other appropriate amount, as determined by the Secretary of State in accordance with generally accepted actuarial practices and principles; and 11 - - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 .il 1 (7) the term System means the Foreign Service 2 Pension System. 3 "SEC. 853. PARTICIPANTS.--(a) Except for persons 4 excluded by subsection (b), (c), or (d), all members of the 5 Foreign Service, any of whose service after December 31, 6 1983, is employment for the purpose of title II of the Social 7 Security Act and chapter 21 of the Internal Revenue Code of 8 1954, who would, but for this section, be participants in the 9 Foreign Service Retirement and Disability System pursuant to 10 section 803 shall instead be participants in the Foreign 11 Service Pension System. 12 - (b) Members of the Service who were participants in the 13 Foreign Service Retirement and Disability System on or before 14 December 31, 1983, and who have not had a break in service in 15 excess of one year since that date, are not made participants 16 in the System by this section, without regard to whether they 17 are subject to title II of the Social Security Act. I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I I (c) Individuals who become members of the Service after 19 having completed at least 5 years of civilian service 20 creditable under subchapter I, subchapter III of chapter 83 21 of title 5, United States Code (the Civil Service Retirement 22 System), or subchapter II of the Central Intelligence Agency 23 Retirement Act of 1964 for Certain Employees (determined 24 without regard to any deposit or redeposit requirement under 25 any such subchapter, any requirement that the individual 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 250 1 become subject to such subchapter after performing the 2 service involved, or any requirement that the individual give 3 notice in writing to the official by whom such individual is 4 paid of such individuals desire to become subject to such 5 subchapter) are not participants in the System, except to the 6 extent provided for under title III of the Federal Employees' 7 Retirement System Act of 1986 pursuant to an election under 8 such title to become subject to this subchapter (under 9 regulations issued by the Secretary of State pursuant to 10 section 860). 11 (d) The Secretary may exclude from the operation of 12 this subchapter any member of the Foreign Service, or group 13 of members, whose employment is temporary or intermittent, 14 except a member whose employment is part-time career 15 appointment or career candidate appointment under section 16 306. 17 -SEC. 854. CREDITABLE SERVICE.--(a) For purposes of this 18 subchapter, creditable service of a participant includes-- (1) service as a participant after December 31, 1986; %~ (2) service with respect to which deductions and 22 withholdings under section 204(a)(2) of the Federal 23 Employees' Retirement Contribution Temporary Adjustment 24 Act of 1983 have been made; and 25 (3) except as provided in subsection (b), any Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 251 1 civilian service performed before January 1, 1989 (other 2 than service under paragraph (1) or (2)), which, but for 3 the amendment made by section 414 of the Federal 4 Employees Retirement System Act of 1986, would be 5 creditable under subchapter I (determined without regard 6 to any deposit or redeposit requirement under such 7 subchapter, subchapter III of chapter 83 of title 5, 8 United States Code (the Civil Service Retirement System), 9 orTsubchapter`II of the Central Intelligence Agency 10 Retirement Act of 1964 for Certain Employees, any 11 requirement that the individual become subject to such 12 subchapter after performing the service involved, or any 13 requirement that the individual give notice in writing to 14 the official by whom such individual is paid of such 15 individuals desire to become subject to such 16 subchapter). 17 1~(b)(1) A participant who has received a refund of 18 retirement deductions under subchapter I with respect to any 19 service described in subsection (a)(3) may not be allowed 20 credit for such service under this subchapter unless such 21 participant deposits into the Fund an amount equal to 1.3 22 percent of basic pay for such service, with interest. 23 (2) A participant may not be allowed credit under this 24 subchapter for any service described in subsection (a)(3) for 25 which retirement deductions under subchapter I have not been Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 252 1 made, unless such participant deposits into the Fund an 2 amount equal to 1.3 percent of basic pay for such service, 3 with interest. 4 I . (3) Interest under paragraph (1) or (2) shall be 5 computed in accordance with section 805(d) and regulations 6 issued by the Secretary of State. I ~ (c) Credit shall be given under this System to a 8 participant for a period of prior satisfactory service as-- 9 I . (1) a volunteer or volunteer leader under the Peace 10 Corps Act (22 U.S.C. 2501 et seq.), 11 ~(2) a volunteer under part A of title VIII of the 12 Economic Opportunity Act of 1964, or 13 '(3) a full-time volunteer for a period of service 14 of at least one years duration under part A, B, or C of 15 title I of the Domestic Volunteer Service Act of 1973 (42 16 U.S.C. 4951 et seq.), 17 if the participant makes a payment to the Fund equal to 3 18 percent of pay received for the volunteer service (as 19 determined in accordance with regulations of the Secretary of 20 State consistent with regulations for making corresponding 21 determinations under chapter 83, title 5, United States Code) 22 together with interest determined under regulations issued by 23 the Secretary of State. 24 (d) Credit shall be given under this System to a 25 participant for a period of prior service under the Federal -- Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 253 1 Employees Retirement System (described in chapter 84 of 2 title 5, United States Code))'-or under title III of the 3 Central Intelligence Agency Retirement Act of 1964 for 4 Certain Employees if the participant waives credit under the 5 other retirement system and makes a payment to the Fund equal 6 to the amount which would have been deducted from pay under 7 section 856(a) had the individual been a participant during 8 the prior creditable service under the other retirement 9 system together with interest on such amount computed in 10 accordance with regulations issued by the Secretary of State. 11 "SEC. 855. ENTITLEMENT TO ANNUITY.--(a)(1) Any 12 participant may be retired under the conditions specified in 13 section 811 and shall be retired under the conditions 14 specified in sections 812 and 813 and receive benefits under 15 this subchapter. (2) For the purposes of this subsection-- 17 - (A) the term 'participant', as used in the sections 18 referred to in paragraph (1), means a participant in the 19 Foreign Service Pension System; and 20 '(B) the term System, as used in those sections, 21 means the Foreign Service Pension System. ~I (b)(1) Any participant who retires voluntarily or 23 mandatorily under section 607, 608, 811, 812, or 813 under 24 conditions authorizing an immediate annuity for participants 25 in the Foreign Service Retirement and Disability System and 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 254 1 who has completed at least 5 years of service subject to this 2 chapter shall be entitled to an immediate annuity computed 3 under paragraph (2). 4 ? (2) An annuity under paragraph (1) shall be computed-- I I (A) for all service earned while a participant in 6 this System, at the rate stated in section 8415(d) of 7 title 5, United States Code; and 8 (B) for all service earned while a participant in 9 another retirement system creditable under section 10 854(d), at the rate which would have been applicable to 11 the individual had that individual remained a participant 12 in the other system; and 13 .1(C) for all volunteer service creditable under 14 section 854(c), at the rate stated in section 8415(a) of 15 title 5, United States Code. I % (c) A participant who is entitled to an immediate 17 annuity under subsection (b) shall be entitled to receive an 18 annuity supplement while the annuitant is under 62 years of 19 age. The annuity supplement shall be based on the total 20 creditable service of the annuitant and shall be computed in 21 accordance with section 8421(b) of title 5, United States 22 Code. I % (d) Any participant who is separated for cause under 24 section 610 shall not be entitled to an annuity under this 25 System when the Secretary determines that the separation was 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 255 1 based in whole or in part on disloyalty to the United States. 2 "SEC. 856. DEDUCTIONS AND WITHHOLDINGS FROM PAY.--(a) 3 The employing agency shall deduct and withhold from basic pay 4 of each participant a percentage of basic pay equal to 7 1/2 5 percent minus the percentage then in effect under section 6 3101(a) of the Internal Revenue Code of 1954 (relating to the 7 rate of tax for old age, survivors and disability insurance). 8 (b) Each participant is deemed to consent and agree to 9 the deductions under subsection (a). Notwithstanding any law 10 or regulation affecting the pay of a participant, payment 11 less such deductions is a full and complete discharge and 12 acquittance of all claims and demands for regular services 13 during the period covered by the payment, except the right to 14 any benefits under this subchapter based on the service of 15 the participant. (c) Amounts deducted and withheld under this section 17 shall be deposited in the Treasury of the United States'to 18 the credit of the Fund under such procedures as the 19 Comptroller General of the United States may prescribe. I I (d) Under such regulations as the Secretary of State 21 may issue, amounts deducted under subsection (a) shall be 22 entered on individual retirement records. 23 ~~SEC. 857. GOVERNMENT CONTRIBUTIONS.--(a) Each agency 24 employing any participant shall contribute to the Fund the 25 amount computed in a manner similar to that used under Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 _1I I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 256 1 section 8423(a) of title 5, United States Code, pursuant to 2 determinations of the normal cost percentage for the Foreign 3 Service Pension System by the Secretary of State. (b)(1) The Secretary of State shall compute the amount 5 of the supplemental liability of the Fund as of the close of 6 each fiscal year beginning after September 30, 1987. The 7 amount of any such supplemental liability shall be amortized 8 in 30 equal annual installments with interest computed at the 9 rate used in the most recent valuation of the System. (2) At the end of each fiscal year, the Secretary of 11 State shall notify the Secretary of the Treasury of the 12 amount of the installment computed under this subsection for 13 such year. 14 I%(3) Before closing the accounts for a fiscal year, the 15 Secretary of the Treasury shall credit to the Fund, as a 16 Government contribution, out of any money in the Treasury of 17 the United States not otherwise appropriated, the amount 18 under paragraph (2) of this subsection for such year. 19 "SEC. 858. COST-OF-LIVING ADJUSTMENTS.--Cost-of-living 20 adjustments for annuitants under this System shall be granted 21 under procedures in section 8462 of title 5, United States 22 Code, in the same manner as such adjustments are made for 23 annuitants referred to in subsection (c)(3)(B)(ii) of such 24 section. 25 -SEC. 859. GENERAL AND ADMINISTRATIVE PROVISIONS.--(a) If - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 257 1 The Secretary of State shall administer the Foreign Service 2 Pension System except for matters relating to the Thrift 3 Savings Plan provided in subchapters III and VII of chapter 4 84 of title 5, United States Code. The Secretary of State 5 shall, with respect to the Foreign Service Pension System, 6 perform the functions and exercise the authority vested in 7 the Office of Personnel Management or the Director of such 8 Office by such chapter 84 and may issue regulations for such 9 purposes. 10 I~(b) Determinations of the Secretary of State under the 11 Foreign Service Pension System which, if made by the Office 12 of Personnel Management under chapter 84 of title 5, United 13 States Code, or the Director of such Office, would be 14 appealable to the Merit Systems Protection Board shall, 15 instead, be appealable to the Foreign Service Grievance 16 Board, except that determinations of disability for 17 participants shall be based upon the standards in section 808 18 (other than the exclusion for vicious habits, intemperance, 19 or willful misconduct) and subject to review in the same 20 manner as under that section. I . (c) At least every 5 years, the Secretary of the 22 Treasury shall prepare periodic valuations of the Foreign 23 Service Pension System and shall advise the Secretary of 24 State of (1) the normal cost of the System, (2) the 25 supplemental liability of the System, and (3) the amounts 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 necessary to finance the costs of the System. 2 SEC. 860. TRANSITION PROVISIONS.--The Secretary of 3 State shall issue regulations providing for the transition 4 from the Foreign Service Retirement and Disability System to 5 the Foreign Service Pension System in a manner comparable to 6 the transition of employees subject to subchapter III of 7 chapter 83 of title 5, United States Code (the Civil Service 8 Retirement System), to the Federal Employees' Retirement 9 System For this and related purposes, references made to 10 participation in subchapter III of chapter 83 of title 5, 11 United States Code (the Civil Service Retirement System), the 12 SociallSecurity Act, and the Internal Revenue Code of 1954 13 shall be deemed to refer to participation in the Foreign 14 Servicie Pension System or the Foreign Service Retirement and 15 Disability System, as appropriate. 16 - $EC. 861. FORMER SPOUSES.--(a)(1)(A) Unless otherwise 17 expressly provided by any spousal agreement or court order 18 governing disposition of benefits under this subchapter, a 19 former spouse of a participant or former participant is 20 entitled, during the period described in subparagraph (B), to 21 a share (determined under paragraph (2)) of all benefits 22 otherwise payable to such participant under this subchapter 23 if such former spouse was married to the participant for at 10 years during service of the participant which is 25 creditable under this chapter with at least 5 of such years Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 i Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 259 1 occurring while the participant was a member of the Foreign 2 Service. 1~ (B) The period referred to in subparagraph (A) is the 4 period which begins on the first day of the month following 5 the month in which the divorce or annulment becomes final and 6 ends on the last day of the month before the former spouse 7 dies or remarries before 55 years of age. (2) The share referred to in paragraph (a) equals-- 8 '1 (A) 50 percent, if such former spouse was married 10' to the participant throughout the actual years of. service 11 of the participant which are creditable under this 12 chapter; or 13 (B) a pro rata share of 50 percent, if such former 14 spouse was not married to the participant throughout such 15 creditable service. 1 1 (3) A former spouse shall not be qualified for any 17 benefit under this subsection if, before the commencement of 18 any benefit, the former spouse remarries before becoming 55 19 years of age. (4)(A) For purposes of the Internal Revenue Code of 21 1954, payments to a former spouse under this section shall be 22 treated as income to the former spouse and not to the 23 participant. 24 (B) Any reduction in payments to a participant or 25 former participant as a result of payments to a former spouse Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 under this subsection shall be disregarded in calculating-- 2 ''(i) the survivor annuity for any spouse, former 3 spouse, or other survivor under this subchapter, and 4 (ii) any reduction in the annuity of the 5 participant to provide survivor benefits under this 6 subchapter. 7 - (5) Notwithstanding subsection (a)(1), in the case of 8 any former spouse of a disability annuitant-- 9 (A) the annuity of the former spouse shall commence 10 on the date the participant would qualify, on the basis 11 of his or her creditable service, for an annuity under 12 this chapter (other than a disability annuity) or the 13 date the.disability annuity begins, whichever is later, 14 and 15 (B) the amount of the annuity of the former spouse 16 shall be calculated on the basis of the annuity for which 17 the participant would otherwise so qualify. 18 (6)(A) Except as provided in subparagraph (B), any 19 former spouse who becomes entitled to receive any benefit 20 under this subchapter which would otherwise be payable to a 21 participant or former participant shall be entitled to make 22 any election regarding method of payment to such former 23 spouse that such participant would have otherwise been 24 entitled to elect, and the participant may elect an alternate 25 method for the remaining share of such benefits. Such Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 261 1 elections shall not increase the actuarial present value of 2 benefits expected to be paid under this subchapter. 3 (B) A former spouse may not elect a method of payment 4 under subchapter II, chapter 84, of title 5, United States 5 Code, providing for payment of a survivor annuity to any 6 survivor of the former spouse. (7) The maximum amount payable to any former spouse 8 pursuant to this subsection shall be the difference, if any, 9 between 50 percent of the total benefits authorized to be 10 paid to a former participant by this subchapter, disregarding 11 any apportionment of these benefits to others, and the 12 aggregate payable to all others at any one time. 13 ''(b)(1) Unless otherwise expressly provided for by any 14 spousal agreement or court order governing survivorship 15 benefits under this subchapter to a former spouse married to 16 a participant or former participant for the periods specified 17 in subsection (a)(1)(A), such former spouse is entitled to a 18 share, determined under subsection (b)(2), of all survivor 19 benefits that would otherwise be payable under this 20 subchapter to an eligible surviving spouse of the 21 participant. 22 I~(2) The share referred to in subsection (b)(1) equals-- 23 (A) 100 percent if such former spouse was married 24 to the participant throughout the entire period of 25 service of the participant which is creditable under this - -. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 chapter; or (B) a pro rata share of 100 percent if such former 3 spouse was not married to the participant throughout such 4 creditable service. 5 I . (c) A participant or former participant may not make 6 any election or modification of election under section 8417, 7 8418, or 8433 of title 5, United States Code, or other 8 section relating to the participants account in the Thrift 9 Plan or annuity under the basic plan that would diminish the 10 entitlement of a former spouse to any benefit granted to the 11 former spouse by this section or in a current spousal 12 agreement. I . (d) If a member becomes a participant under this 14 subchapter after qualifying for benefits under subchapter I 15 and, at the time of transfer, has a former spouse entitled to 16 benefits under subchapter I which are determined under 17 section 814 or 815 (as determined by the Secretary of State) 18 and are similar in amount to a pro rata share division under 19 section 814 or 815 and the service of the member as a 20 participant under this subchapter is not recognized in 21 determining that pro rata share, then subsections (a) and (b) 22 of this section shall not apply to such former spouse. 23 Otherwise, subsections (a) and (b) of this section shall 24 apply. %'(e) If a participant dies after completing at least 18 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 J1 I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 263 1 months of service or a former participant dies entitled to a 2 deferred annuity, but before becoming eligible to receive the 3 annuity, and such participant or former participant has left 4 with the Secretary of State a spousal agreement promising a 5 share of a survivor annuity under subchapter IV, chapter 84, 6 title 5, United States Code, to a former spouse, such 7 survivor annuity shall be paid under the terms of this 8 subchapter as if the survivor annuity had been ordered by a 9 court. 10 "SEC. 862. SPOUSAL AGREEMENTS.--A spousal agreement is 11 any written agreement (properly authenticated as determined 12 by the Secretary of State) between a participant or former 13 participant and his or her spouse or former spouse on file 14 with the Secretary of State. A spousal agreement shall be 15 consistent with the terms of this Act and applicable 16 regulations and, if executed at the time a participant or 17 former participant is currently married, shall be approved by 18 such'current spouse. It may be used to fix the level of 19 benefits payable under this subchapter to a spouse or former 20 spouse. . 21 SEC. 416. TABLE OF CONTENTS. 22 The table of contents in section 2 of such Act is 23 amended-- 24 (1) by striking out the item relating to chapter 8 25 and inserting in lieu thereof the following: - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 264 "CHAPTER 8--FOREIGN SERVICE RETIREMENT AND DISABILITY SUBCHAPTER 1--FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM 1 (2) by inserting after the item relating to section 2 827 the following: 'Sec. 828. Remarriage. SUBCHAPTER 11--FOREIGN SERVICE PENSION SYSTEM Sec. 851. Establishment. Sec. 852. Definitions. Sec. 853. Participants. Sec. 854. Creditable service. ?Sec. 855. Entitlement to annuity. Sec. 856. Reduction and withholdings from pay. ? Sec. 857. Government contributions. Sec. 858. Cost-of-living adjustments. Sec. 859. General and administrative provisions. Sec. 860. Transition provisions. Sec. 861. Former spouses. Sec. 862. Spousal agreements. (a) REGULATIONS.--Notwithstanding section 702 of this 5 Act, the authority of the Secretary of State to issue 6 regulations under subchapter II of title 8 of the Foreign 7 Service Act of 1980 shall take effect on the date of 8 enactment of this Act. 9 (b) 18-MONTH PERIOD TO ELECT SURVIVOR ANNUITY.--(1) 10 Notwithstanding section 702 of this Act, the amendment made 11 by section 407 shall take effect 3 months after the date of 12 enactment of this Act. 13 (2)(A) Subject to subparagraph (B), the amendment made by 14 section 407 shall apply with respect to participants and Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 . IL Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1. former participants who retire before, on, or after such 2 amendment first takes effect. 3 (B) For the purpose of applying the provisions of 4 paragraph (1) of section 806(n) of the Foreign Service Act of 5 1980 (as added by section 407) to former participants who 6 retire before the date on which the amendment first takes 7 effect-- 8 (i) the period referred to in subparagraph (A) or (B) 9 of such paragraph (as the case may be) shall be 10 considered to begin on the date on which such amendment 11 first becomes effective; and 12 (ii) the amount referred to in paragraph (2) of such 13 section 806(n) shall be computed without regard to the 14 provisions of subparagraph (B)(ii) of such paragraph 15 (relating to interest). 16 (3) For purposes of this subsection, the term 17 ''participant" has the meaning given that term in 18 section 803 of the Foreign Service Act of 1980 (22 U.S.C. 19 4043). 20 TITLE V--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND RELATED 21 MATTERS 22 SEC. 501. REFERENCES. 23 The Central Intelligence Agency Retirement Act of 1964 24 for Certain Employees (78 Stat. 1043; 50 U.S.C. 403 note) is 25 amended-- i1 - - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 HL-UL-J! ..-1IIIll - L L - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 (1) in section 201(c), by inserting -(except section 2 305(d) of this Act) after or any other provisions of (2) by striking out 'this Act" each place it law ; appears in title II except in sections 201 nd 264, and 6 inserting in lieu thereof ''this title"; and 7 (3) by inserting under this title after payable 8 from the fund each place it appears in title II. 9 SEC. 502. CONTRIBUTIONS TO THE CENTRAL INTELLIGENCE AGENCY 11 10 RETIREMENT AND DISABILITY SYSTEM.~I 11 Section 211 of the Central Intelligence Agency Retirement 12 Act of 1964 for Certain Employees is amended-- 13 (1) by striking out Seven in the first sentence 14 of subsection (a) and inserting in lieu the,-reof Except 15 as provided in subsection (d), seven ; and' it 16 (2) by adding at the end thereof the following new 17 subsection (d): 18 ''(d)(1) In the case of a participant who was a ' 19 participant subject to this title before Januar'ly 114 1984, and 20 whose service-- 21 (A) is employment for the purposes of title II of 22 the Social Security Act and chapter 21 of the Internal 23 Revenue Code of 1954, and 24 (B) is not creditable service for any purpose under 25 title III of this Act or chapter 84 of title 5, United Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 States Code, 2 there shall be deducted and withheld from the basic pay of 3 the participant under this subsection during any pay period 4 only the amount computed pursuant to paragraph (2). 5 ? (2) The amount deducted and withheld from the basic pay 6 of a participant during any pay period pursuant to paragraph 7 (1) shall be the excess of-- .1 (A) the amount determined by multiplying the 9 percent applicable to the participant under subsection 10 (a) by the basic pay payable to the participant for such 11 pay period, over 12 I.(B) the amount of the taxes deducted and withheld 13 from such basic pay under section 3101(a) of the Internal 14 Revenue Code of 1954 (relating to old-age, survivors, and 15 disability insurance) for such pay period.. 16 SEC. 503. OFFSET OF ANNUITY BY THE AMOUNT OF SOCIAL SECURITY 17 BENEFITS. 18 Section 221 of the Central Intelligence Agency Retirement 19 Act of 1964 for Certain Employees is amended by adding at the 20 end thereof the following new subsection: 21 ''(p)(1) Notwithstanding any other provision of this 22 title, except as provided in paragraph (2), an annuity 23 (including a disability annuity) payable under this title to 24 an individual described in section 301(c)(1) and an survivor 25 annuity payable under this title on the basis of the service 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 268 1 of such individual shall be reduced in a manner consistent 2 with section 8349 of title 5, United States Code, under 3 conditions consistent with the conditions prescribed in such 4 section. 5 (2) This section shall not apply with respect to any 6 annuity, or survivor annuity, which is based on the service 7 of an individual described in section 301(c)(2). . 8 SEC. 504. THRIFT SAVINGS FUND PARTICIPATION BY PARTICIPANTS 9 IN THE CENTRAL INTELLIGENCE AGENCY RETIREMENT 10 AND DISABILITY SYSTEM. 11 Part K of title II of the Central Intelligence Agency 12 Retirement Act of 1964 for Certain Employees is amended by 13 adding at the end thereof the following new section: 14 THRIFT SAVINGS FUND PARTICIPATION BY PARTICIPANTS IN THE 15 CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM 16 '~SEC. 293. (a) Participants in the Central Intelligence 17 Agency Retirement and Disability System shall be deemed to be 18 employees for the purposes of section 8351 of title 5, United 19 States Code. 20 (b) Section 305 of this Act shall apply with respect to 21 contributions made by officers and employees of the Agency to 22 the Thrift Savings Fund under section 8351 of title 5, United 23 States Code, and to earnings attributable to the investment 24 of such contributions. . 25 SEC. 505. ALTERNATIVE FORMS OF ANNUITIES. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 269 1 Part K of title II of the Central Intelligence Agency 2 Retirement Act of 1964 for Certain Employees (as amended by 3 section 504 of this Act) is further amended by adding at the 4 end thereof the following new section: 5 ALTERNATIVE FORMS OF ANNUITIES 6 "SEC. 294. (a) The Director shall prescribe regulations 7 under which an officer or employee of the Agency may, at the 8 time of retiring under this title (other than under section 9 231), elect annuity benefits under this section instead of 10 any other benefits under this title (including any survivor 11 benefits under this title) based on the service of the 12 officer or employee creditable under this title. The 13 regulations and alternatives shall, to the maximum extent 14 practicable, meet the requirements prescribed in section 15 8343a.of title 5, United States Code. ~I (b) The Director shall, submit the regulations 17 prescribed under subsection (a) to the Select Committee on 1.8 Intelligence of the Senate and the Permanent Select Committee 19 on Intelligence of the House of Representatives before the 20 regulations take effect. . 21 SEC. 506. PARTICIPATION IN THE FEDERAL EMPLOYEES RETIREMENT 22 SYSTEM. 23 The Central Intelligence Agency Retirement Act of 1964 24 for Certain Employees is amended by adding at the end thereof 25 the following: Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 270 1 'TITLE III--PARTICIPATION IN THE FEDERAL EMPLOYEES' 2 RETIREMENT SYSTEM 3 " APPLICATION OF FEDERAL EMPLOYEES RETIREMENT SYSTEM TO 4 AGENCY EMPLOYEES 5 SEC. 301. (a) Except as provided in subsection (b) and " 6 (c), all officers and employees of the Agency, any of whose 7 service after December 31, 1983, is employment for the 8 purpose of title II of the Social Security Act and chapter 21 9 of the Internal Revenue Code of 1954, shall be subject to 10 chapter 84 of title 5, United States Code. 11 - (b) Participants in the Central Intelligence Agency 12 Retirement and Disability System who were participants in 13 such system on or before December 31, 1983, and who have not 14 had a break in service in excess of 1 year since that date, 15 are not subject to chapter 84 of title 5, United States Code, 16 without regard to whether they are subject to title II of the 17 Social Security Act. 18 . 11 (c)(1) The provisions of chapter 84 of title 5, United 19 States Code, shall not apply with respect to-- 20 - (A) any individual who separates, or who has 21 separated, from Federal Government service after having 22 been an officer or employee of the Agency subject to 23 title II of this Act; and 24 %1(B) any officer or employee of the Agency having at 25 least 5 years of civilian service which was performed Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 - - 1 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 271 1 before January 1, 1987, and is creditable under title II 2 of this Act (determined without regard to any deposit or 3 redeposit requirement under subchapter III of chapter 83 4 of title 5, United States Code, or under title II of this 5 Act, or any requirement that the individual become 6 subject to such subchapter or to title II of this Act 7 after performing the service involved). 8 " (2) Paragraph (1) shall not apply with respect to an 9 individual who has elected under regulations prescribed under 10' section 307 of this Act to become subject to chapter 84 of 11 title 5, United States Code, to the extent provided in such 12 regulations. 13 ? (3) An individual described in paragraph (1) shall be 14 deemed to be an individual excluded under section 8402(b)(2) 15 of title 5, United States Code. I ~ (d) The application of the provisions of chapter 84 of 17 title 5, United States Code, to officers and employees 18 referred to in subsection (a) shall be subject to the 19 exceptions and special rules provided in this title. Any 20 provision of such chapter which is inconsistent with a 21 special rule provided in this title shall not apply to such 22 officers and employees. 23 ? SPECIAL RULES RELATING TO SECTION 203 CRITERIA EMPLOYEES 24 "SEC, 302. (a) Except as otherwise provided in this 25 section, in the application of chapter 84 of title 5, United Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 272 1 States Code, to an officer or employee of the Agency who is 2 subject to such chapter and is designated by the Director 3 under the criteria prescribed in section 203, such officer or 4 employee shall be treated for purposes of determining such 5 officers or employee's retirement benefits and obligations 6 under such chapter as if the officer or employee were a law 7 enforcement officer (as defined in section 8401(17) of title 8 5, United States Code). 9 - (b) The provisions of sections 233 and 235 of this Act 10 shall apply to officers and employees referred to in 11 subsection (a), except that the retirement benefits shall be 12 determined under the provisions of chapter 84 of title 5, 13 United States Code. 14 ~1(c)(1) Except as provided in paragraph (2), section 271 15 of this Act shall apply to an officer or employee referred to 16 in subsection (a). . 1 (.2) Contributions during recall service shall be made 18 as provided in section 8422 of title 5, United States Code. (3) When an officer or employee recalled under this 20 subsection reverts to a retired status, the annuity of such 21 officer or employee shall be redetermined under the 22 provisions of chapter 84 of title 5, United States Code. 23 SPECIAL RULES FOR OTHER EMPLOYEES FOR SERVICE ABROAD ? SEC, 303. (a) Notwithstanding any provision of chapter 25 84 of title 5, United States Code, the annuity under 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 273 1 subchapter II of such chapter of a retired officer or 2 employee of the Agency who is not designated under section 3 302(a) of this Act and has served abroad as an officer or 4 employee of the Agency shall be computed as provided in 5 subsection (b). I I (b)(1) The portion of the annuity relating to service 7 abroad performed on or after the effective date of the 8 Federal Employees' Retirement System Act of 1986 shall be 9 computed as provided in section 8415(d) of title 5, United 10 States Code. 11 (2) The portions of the annuity relating to other 12 service in the Agency shall be computed as provided in the 13 provision of section 8415 of such title that is applicable to 14 such service under the conditions prescribed in chapter 84 of 15 such title. 16 SPECIAL RULES FOR FORMER SPOUSES 17 SEC, 304. (a) Section 8445 of title 5, United States ? 18 Code, and subsections (d) and (e) of section 8435 of such 19 title shall not apply in the case of an officer or employee 20 of the Agency who is subject to chapter 84 of title 5, United 21 States Code, and who has a former spouse (as defined in 22 section 204(b)(4) of this Act). Any reference in such chapter 23 to a survivor annuity for a former spouse, as applied to such 24 officer or employee, shall be deemed to refer to.a survivor 25 annuity for a former spouse of such officer or employee - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 274 1 provided under subsection (c) of this section. 2 .1 (b) Section 221(b)(1)(C) of this Act shall apply to a 3 survivor annuity under subsection (c)(2) of this section. (c) Except as otherwise provided in this section, the 5 following provisions of title II of this Act shall apply in 6 the case of an officer or employee of the Agency who is 7 entitled to receive an annuity under subchapter II, III, or V 8 of chapter 84 of title 5, United States Code, in the same 9 manner as such provisions apply in the case of an officer or 10 employee of the Agency under title II: " (1) Section 222, except that subsections (b) and 12 (c) of such section shall be subject to a waiver under 13 subsection (b) of this section. 14 (2) Subsections (a), (b)(1), and (b)(3) of section 15 223 and the first sentence of subsection (c) of such 16 section. 17 (3) Subsections (c) and (d) of section 234 (in the 18 case of any lump-sum payment under section 8424(a) of 19 title 5, United States Code, and any payment under 20 subsection (b)(3), (b)(4), (c)(3), (c)(4), or (d) of 21 section 8433 of such title). 22 (4) Section 263(b). (d) In the application of section 222(a) under 24 subsection (c)(1)-- 25 11(1) the reference in paragraph (4)(B) of such Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 275 1 section to section 271, 272, or 273 of this Act shall be 2 deemed to refer to any similar provision of law 3 applicable to such officer or employee for purposes of 4 chapter 84 of title 5, United States Code; 5 1. (2) the amount of the reduction in the salary of a 6 recalled or reinstated officer or employee under such 7 paragraph (4)(B) shall be only the amount by which the 8 annuity under subchapter II or V of chapter 84 of title 9 5, United States Code, would have been reduced; and .. (3) amounts to be deposited in the Treasury of the 11 United States pursuant to such paragraph (4)(B) shall be 12 credited to the Civil Service Retirement and Disability 13 Fund. 14 11(e) In the application of subsections (b) and (c) of 15 section 222 under subsection (c)(2)-- 16 (1) the percentage prescribed in subsections 17 (b)(1)(A), (b)(1)(B), (b)(4)(A), and (c)(2) of such' 18 section shall be deemed to be 50 percent; 19 I~(2) for the purpose of computing the amount of the 20 former spouse's annuity under subsection (b)(1) of such 21 section and the maximum amount of survivor annuities 22 under subsection (b)(4) or (c)(2) of such section, the 23 full amount of the deceased officer's or employee's 24 annuity-- I I (A) in the case of an annuity under subchapter Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 276 1 II or V of chapter 84 of title 5, United States Code, 2 is the amount of such annuity computed without regard 3 to the reduction for survivor annuities; and 4 (B) in the case of an annuity under subchapter 5 III of such chapter, is the amount of such annuity 6 computed on an actuarial basis as provided in such 7 subchapter taking into account the application of 8 section 222(b)(1) in the case of such annuity; 9 (3) an election under subsection (b)(5)(B) of such 10 section shall apply with respect to a survivor annuity 11 for a spouse under section 8442 of title 5, United States 12 Code; '(4) the reference in subsection (c)(2) of such 14 section to a survivor annuity for a spouse shall be 15 deemed to refer-- 16 (A) in the case of an annuity under subchapter 17 II or V of chapter 84 of title 5, United States Code, 18 to the survivor annuity provided in section 8442 of 19 title 5, United States Code; and 20 (B) in the case of an annuity under subchapter 21 III of such chapter, to the survivor annuity 22 described in section 8435(c) of such title; and 23 (5) the fund referred to in subsections (c)(3)(A) 24 and (c)(3)(B) of such section shall be deemed to refer-- 25 - (A) in the case of an annuity under subchapter Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 277 1 II or V of chapter 84 of title 5, United States Code, 2 to the Civil Service Retirement and Disability Fund; 3 and 4 (B) in the case of an annuity under subchapter 5 III of such chapter, the Thrift Savings Fund 6 established by section 8437 of such title. 7 (f) A reduction in the annuity of an officer or 8 employee of the Agency to provide a survivor annuity or 9 survivor annuities under this section shall be computed as 10 provided in section 8419(a) of title 5, United States Code. I ~ (g) The entitlement of a former spouse to a portion of 12 an annuity of a retired officer or employee of the Agency 13 under this section shall extend to any supplementary annuity 14 payment that such officer or employee is entitled to receive 15 under section 8421 of title 5, United States Code. 16 ADMINISTRATIVE PROVISIONS 17 "SEC. 305. (a) Section 201(c) of this Act shall apply in 18 the administration of chapter 84 of title 5, United States 19 Code, with respect to officers and employees of the Agency. 1.(b) Notwithstanding subsection (a), section 8461(e) of 21 title 5, United States Code, shall apply with respect to 22 officers and employees of the Agency who are not participants 23 in the Central Intelligence Agency Retirement and Disability 24 System and are not designated under section 302(a) of this 25 Act. Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 REGULATIONS 2 "SEC. 306. The Director, in consultation with the 3 Director of the Office of Personnel Management and the 4 Executive Director of the Federal Retirement Thrift 5 Investment Board, shall prescribe in regulations appropriate 6 procedures to carry out this title. 7 ~ISI T I ON PROVISIONS ' r''' +0` RA 8 "SEC. 307. (a) The Director shall issue regulations 9 providing for the transition from the Central Intelligence 10 Agency Retirement and Disability System to the Federal 11 Employees Retirement System provided in chapter 84 of title 12 5, United States Code, in a manner consistent with sections 13 301 through 304 of the Federal Employees Retirement System 14 Act of 1986. (b) The Director shall submit the regulations 16 prescribed under subsection (a) to the Select Committee on 17 Intelligence of the Senate and the Permanent Select Committee 18 on Intelligence of the House of Representatives before the 19 regulations take effect. 20 SEC. 507. SPECIAL RETIREMENT ACCRUAL FOR OTHER INTELLIGENCE 21 PERSONNEL. 22 (a) CERTAIN NATIONAL SECURITY AGENCY PERSONNEL.--Section 23 9(b)(1)(B) of the National Security Agency Act of 1959 (50 24 U.S.C. 402 note) is amended by inserting before the semicolon 25 the following: "(including special retirement accrual in the Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 279 1 same manner provided in section 303 of the Central 2 Intelligence Agency Retirement Act of 1964 for Certain 3 Employees (50 U.S.C. 403 note)) . 4 (b) CERTAIN DEFENSE INTELLIGENCE AGENCY 5 PERSONNEL.--Section 1605(a) of title 10, United States Code, 6 is amended by adding at the end thereof the following: ''The 7 Secretary may also provide to any such civilian personnel who 8 are subject to chapter 84 of title 5, special retirement 9 accrual benefits in the same manner provided for certain 10 officers and employees of the Central Intelligence Agency in 11 section 303 of the Central Intelligence Agency Retirement Act 12 of 1964 for Certain Employees (50 U.S.C. 403 note). . 13 TITLE VI--MISCELLANEOUS PROVISIONS 14 SEC. 601. ANNUITIES FOR SURVIVORS OF TAX COURT AND DISTRICT 15 OF COLUMBIA JUDGES. 16 (a) AMENDMENTS RELATING TO TAX COURT JUDGES.--Section 17 7448 of the Internal Revenue Code of 1954 is amended-- 18 (1) in subsection (c)-- 19 (A) by striking out -(c) SALARY 20 DEDUCTIONS --There and inserting in lieu thereof: 21 (c) SURVIVORS ANNUITY FUND.-- 22 .. (1) SALARY DEDUCTIONS.--There'', 23 (B) by striking out -3 percent" and inserting 24 in lieu thereof -3.5 percent"; and 25 (C) by inserting at the end thereof the following - - - .Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 11 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 280 1 new paragraph (2): 2 - (2) UNFUNDED LIABILITY DEPOSITS.-- 3 (A) IN GENERAL.--Except as provided in 4 subparagraph (B), by the end of each fiscal year 5 there shall also be deposited to the credit of the 6 survivors annuity fund, in accordance with such 7 procedures as the Comptroller General of the United 8 States may prescribe, amounts required to reduce to 9 zero the unfunded liability of the survivors annuity 10 fund. Subject to appropriation Acts, such deposits 11 shall be taken from any sums available in such fiscal 12 year for the payment of judges salaries, and shall 13 immediately become an integrated part of the 14 survivors annuity fund. 15 ? (B) EXCEPTION.--The amount required by 16 subparagraph (A) to be deposited in any fiscal year 17 shall not exceed the amount equal to 11 percent of 18 the sum of the amount of judges salaries in such 19 fiscal year. 20 1.(C) UNFUNDED LIABILITY DEFINED.--For purposes 21 of subparagraph (A), the term 'unfunded liability' 22 means the estimated excess of the present value of 23 all benefits payable from the survivors annuity fund 24 (determined on an annual basis in accordance with 25 section 9503 of title 31, United States Code), over Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 the sum of-- I % (i) the present value of future deductions 3 to be withheld from judge's salaries; plus 4 '(ii) the balance in such fund as of the 5 date the unfunded liability is determined . ; 6 (2) in subsection (d) by striking out -3 percent" 7 the second place it appears and inserting in lieu thereof 3.5 percent 9 (3) in subsection (h)-- 10 (A) by striking out ''subsection (c)" and 11 inserting in lieu thereof subsection (c)(1) ; 12 (B) by striking out all after the words "equal 13 to" in paragraph (2) and inserting in lieu thereof 14 the lesser of: 15 (A) 10 percent of the average annual salary 16 amount determined in accordance with the provisions 17 of subsection (m); or I I (B) 20 percent of such average annual salary 19 amount, divided by the number of children; or"; 20 (C) by striking out all after the words "equal to" in paragraph (3) and inserting in lieu thereof the lesser of: 23 (A) 20 percent of the average annual salary 24 amount determined in accordance with the provisions 25 of subsection (m); or Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 I I (B) 40 percent of such average annual salary 2 amount, divided by the number of children. ; and 3 (D) by striking out remarriage in the first 4 sentence in the matter after paragraph (3) and 5 inserting in lieu thereof ''such surviving spouse's 6 remarriage before attaining 55 years of age; and 7 (4) in subsection (m)-- 8 (A) by striking out -11/4 percent" and 9 inserting in lieu thereof 1.5 percent; and 10 (B) by striking out the comma and all other 11 matter after ''other prior allowable service" where 12 it last appears and inserting in lieu thereof , 13 except that such annuity shall not exceed an amount 14 equal to 50 percent of such average annual salary, 15 nor be less than an amount equal to 25 percent of 16 such average annual salary, and that any amount 17 determined in accordance with the provisions of this 18 subsection shall be reduced to the extent required by 19 subsection (d), if applicable.". 20 (b) AMENDMENTS RELATING TO DISTRICT OF COLUMBIA 21 JUDGES.--(1) Subsections (a) and (b) of section 11-1567 of 22 title 11 of the District of Columbia Code are each amended by 23 striking out 3 per centum'' each place it appears and 24 inserting in lieu thereof -3.5 percent. 25 (2)(A) Subsection (a) of section 11-1568 of title 11 of Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 1 the District of Columbia Code is amended by striking out 2 ?computing a survivor annuity and inserting in lieu 3 thereof any provision of this subchapter which refers to 4 this subsection 5 (B) Subsection (c) of section 11-1568 of title 11 of the 6 District of Columbia Code is amended-- 7 (i) in paragraph (2)(B), by striking out "the lesser 8 of (i) $2,700 per year divided by the number'of such 9 children or (ii) $900 and inserting in lieu thereof 10 I.the lesser of (i) $8,424 per year divided by the number 11 of such children or (ii) $2,808 " ; 11 12 (ii) in paragraph (3), by striking out the lesser 13 of (A) $3,240 per year divided by the number of children 14 or (B) $1,080" and inserting in lieu thereof the 15 lesser of (A) $10,110 per year divided by the number of 16 such children or (B) $3,370 17 (iii) by inserting before the first sentence of the 18 matter following paragraph (3) the following: 19 "For the purpose of computing, under this subsection, the 20 annuity of a child that commences on or after January 1, 21 1987, the figures $8,424, $2,808, $10,110, and $3,370 22 (provided in paragraphs (2) and (3)) shall be increased by 23 the total percentage of the increases allowed and in force 24 with respect to retirement salaries of judges under section 25 11-1571(a) of this title on or after such date."; and 11 - - Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 284 1 (iv) in the first sentence of the matter following 2 paragraph (3) by striking out remarriage and 3 inserting in lieu thereof upon remarriage prior to the 4 attainment of fifty-five years of age. 5 (C) Subsection (e) of section 11-1568 of title 11 of the 6 District of Columbia Code is amended to read as follows: - (e) The annuity of a widow or widower of a judge or 8 retired judge who elected a survivor annuity shall be equal 10 '.(1) in the case of a judge who dies while in active 11 regular service as a judge, the greater of-- . I (A) 55 percent of the retirement salary the 13 judge would have been entitled to receive (as 14 computed under section 11-1564) if the judge had 15 retired on the day before the date of death (without 16 regard to the age requirements prescribed in section 17 11-1562(b)), or 18 (B) 55 percent of the retirement salary the 19 judge would have been entitled to receive (as 20 computed under section 11-1564) if the judge had 21 retired on the day before the date of death with 15 22 years of service for the purposes of this subchapter 23 (without regard to the age requirements prescribed in 24 section 11-1562(b)); and 25 '(2) in the case of a retired judge, 55 percent of Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 285 1 the retirement salary payable to such judge on the day 2 before the date of the judges death.. 3 (c) APPLICATION OF AMENDMENTS.--The benefits conferred by 4 section 7448 of the Internal Revenue Code of 1954, and 5 section 11-1568 of title 11 of the District of Columbia Code, 6 by reason of the amendments made by this section shall apply 7 to individuals eligible for annuities under such sections on 8 or after the date of the enactment of this Act, except that-- 9 (1) such annuities shall be computed in accordance 10 with the provisions of such sections, as amended by this 11 section, notwithstanding contributions or deposits made 12 in accordance with applicable law at lower rates; and 13 (2) no additional liability shall be created with 14 respect to deposits made in accordance with applicable 15 law before the date of the enactment of this Act, or 16 after such date pursuant to an installment payment 17 election made under section 7448(d) of the Internal 18 Revenue Code of 1954, or section 11-1567(b) of title 11 19 of the District of Columbia Code, before such date. 20 (d) OPPORTUNITY TO REVOKE A PREVIOUS-SURVIVOR ANNUITY 21 ELECTION.--(1)(A) Any individual who, before the date of the 22 enactment of this Act, made an election under subsection (b) 23 of section 7448 of the Internal Revenue Code of 1954, to come 24 within the purview of such section may revoke that election. 25 Such a revocation shall constitute a complete withdrawal from Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 286 1 the survivor annuity program provided for in such section. 2 (B) A revocation under subparagraph (A) shall be 3 submitted in writing to the Chief Judge of the United States 4 Tax Court, except that a revocation by the Chief Judge of 5 such Court shall be filed, in writing, in the manner 6 prescribed by such Court. 7 (2)(A) Any individual who, before the date of the 8 enactment of this Act, made an election under section 11-1566 9 of title 11 of the District of Columbia Code, to come within 10 the purview of the survivor annuity provisions of subchapter 11 III of chapter 15 of such title may revoke that election. 12 Such a revocation shall constitute a complete withdrawal from 13 the survivor annuity program provided for in such subchapter. 14 (B) A revocation under subparagraph (A) shall be 15 submitted in writing to the Mayor of the District of 16 Columbia. 17 (3) A revocation under paragraph (1) or (2) shall be 18 effective on the day it is received by the official referred 19 to in subparagraph (B) of such paragraph. 20 (4)(A) On the effective date of a revocation under 21 paragraph (1) or (2), any right to survivor benefits (to 22 which the revocation relates) for the survivors of the 23 individual who makes the revocation shall terminate, and all 24 amounts credited to the account of such individual under the 25 applicable provision of law, together with interest computed Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 287 1 as provided in subparagraph (C), shall be returned to that 2 individual in a lump-sum payment. 3 (B) The applicable provision of law referred to in 4 subparagraph (A) is-- 5 (i) in the case of a judge of the United States Tax 6 Court, section 7448(f) of the Internal Revenue Code of 7 1954; and 8 (ii) in the case of a judge of the District of 9 Columbia, section 11-1570(c) of title 11 of the District 10 of Columbia Code. 11 (C) For the purpose of subparagraph (A), interest shall 12 be computed in accordance with-- 13 (i) section 7448(g) of the Internal Revenue Code of 14 1954, in the case of a judge of the United States Tax 15 Court; and 16 (ii) section 11-1561(10)(C) of title 11 of the 17 District of Columbia Code, in the case of a judge of the 18 District of Columbia. 19 (5)(A) Any individual who makes a revocation under 20 paragraph (1) and who thereafter becomes eligible to make an 21 election under section 7448(b) of the Internal Revenue Code 22 of 1954, may make such election only if such individual 23 redeposits, to the credit of the survivors annuities fund 24 established by section 7448(c)(1) of such Code, the full 25 amount of the lump-sum payment made to such individual under Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 288 1 paragraph (4), together with interest. 2 (B) Any individual who makes a revocation under paragraph 3 (2) and who thereafter becomes eligible to make an election 4 under section 11-1556 of title 11 of the District of Columbia 5 Code, may make such election only if such individual 6 redeposits, to the credit of the District of Columbia Judge's 7 Retirement Fund referred to in section 11-1561(4) of such 8 title, the full amount of the lump-sum payment made to such 9 individual under paragraph (4), together with interest. 10 (C) For the purpose of subparagraph (A) or (B), interest 11 shall be computed at 3 percent per annum, compounded on 12 December 31 of each year from the date of the lump-sum 13 payment referred to in such subparagraph until the date on 14 which the amount referred to in such subparagraph is 15 redeposited under such subparagraph. 16 (e) ADDITIONAL OPPORTUNITY TO MAKE A SURVIVOR ANNUITY 17 ELECTION.--(1) Any individual who, on or before the date of 18 the enactment of this Act, has not made an election under 19 section 11-1566(a) of title 11 of the District of Columbia 20 Code, to come within the purview of the survivor annuity 21 provisions of subchapter III of chapter 15 of such title and 22 is no longer entitled to make such an election may make such 23 an election. Any such election shall be submitted in writing 24 to the Mayor of the District of Columbia. 25 (2) An election under paragraph (1) shall be effective on Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 289 1 the day it is received by the official referred to in such 2 paragraph. 3 (f) PERIOD FOR EXERCISE OF RIGHT TO REVOKE OR ELECT.--The 4 right to revoke an election under subsection (d) or to make 5 an election under subsection (e) is irrevocably waived if not 6 exercised within 180 days after the date of the enactment of 7 this Act. 8 (g) TERMINATION OF ELECTION.--Section 7448(g) of the 9 Internal Revenue Code of 1954 is amended-- 10 (1) by striking out '~OF SERVICE" in the subsection 11 heading; and 12 (2) by inserting or if any judge becomes unmarried 13 after making the election under subsection (b) and elects 14 (in a writing filed as provided in subsection (b)) to 15 terminate that election," before "the amount" in the 16 first sentence. 17 TITLE VII--AUTHORIZATION OF APPROPRIATIONS; EFFECTIVE DATES 18 SEC. 701. AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN 19 EXPENSES OF THE FEDERAL RETIREMENT THRIFT 20 INVESTMENT MANAGEMENT SYSTEM. 21 (a) TEMPORARY ALTERNATIVE FUNDING.--Notwithstanding 22 section 8434(c)(3) of title 5, United States Code (as added 23 by section 101 of this Act), the expenses incurred in the 24 administration of the Federal Retirement Thrift Investment 25 Management System under subchapter VII of chapter 84 of such Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 290 1 title (as so added) during fiscal years 1986 and 1987 shall 2 be paid from sums appropriated pursuant to subsection (b). 3 (b) AUTHORIZATION OF APPROPRIATIONS.--There are 4 authorized to be appropriated to the Federal Retirement 5 Thrift Investment Board, for fiscal years 1986 and 1987, such 6 sums as may be necessary to pay the expenses incurred in the 7 administration of the Federal Retirement Thrift Investment 8 Management System during such fiscal years. 9 SEC. 702. EFFECTIVE DATES. 10 (a) IN GENERAL.--Except as provided in subsection (b), 11 this Act and the amendments made by this Act shall take 12 effect on January 1, 1987. 13 (b) EXCEPTIONS.--(1) Subchapter VII of chapter 84 of 14 title 5, United States Code, as added by section 101 of this 15 Act, shall take effect on the date of the enactment of this 16 Act. 17 (2) Except as provided in section 305 of this Act, title 1.8 III of this Act, and the amendments made by such title, shall 19 take effect on the date of the enactment of this Act. 20 (3) The amendments made by sections 204 and 205 of this 21 Act shall take effect on the date of the enactment of this 22 Act. 23 (4) Section 401 of this Act shall take effect on the date 24 of the enactment of this Act. 25 (5) Sections 505 and 601 of this Act and the amendments Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0 291 1 made by such section 601 shall take effect on the date of the 2 enactment of this Act. 3 (c) FIRST COST-OF-LIVING ADJUSTMENT.--(1) For purposes of 4 the first adjustment under subsection (b) of section 8462 of 5 title 5, United States Code (as added by section 101 of this 6 Act), the base quarter ending on September 30, 1986, shall be 7 considered to have been the base quarter for a year in which 8 an adjustment under such subsection was made. 9 (2) As used in paragraph (1), the term .. base quarter" 10 has the meaning provided by section 8462(a)(1) of title 5, 11 United States Code (as added by section 101 of this Act). Approved For Release 2010/12/28: CIA-RDP89-00066R000400090002-0
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