PUBLIC HEALTH AND WELFARE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000300010023-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 22, 2016
• Document Release Date: March 7, 2011
• Sequence Number: 23
• Publication Date: September 1, 1983
• Content Type: REGULATION

Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
G~~nihn
/993
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
42 ? 409
PUBLIC HEALTH AND WELFARE
made during 1984 under a qualified. cash or
deferred arrangement; and except in the case of
an agreement with certain nonqualified deferred
compensation plans' in existence on Mar. 24,
1983, see section 324(d) of Pub.L. 98-21 set out
as a note under section 3121 of Title 26, Inter
nal Revenue Code,
Amendment by section 325(b) of Pub.L. 98-
21 applicable to remuneration paid after Dec.
31, 1983, see section 325(d) of Pub.L. 98-21 set
out as a note under section 3121 of Title 26,
Internal Revenue Code.
Amendment by section 327 of Pub.L. 98-21
applicable to remuneration paid after Dec. 31,
1983. see section 327(d) of Pub.L. 98-21 set out
as a note under section 3121 of Title 26, Inter
nal Revenue Code.
Legislative History. For legislative history
and purpose of Pub.L. 98-21. see 1983 U.s.
Code Cong. and Adm.News, p. 143.
? 410. Definitions relating to employment
For the purposes of this subchapter-
(a) Employment
The term "employment"means any service performed after 1936 and prior to 1951
which was employment for the purposes of this subchapter under the law applicable
to the period in which such service was performed, and any service, of whatever
nature, performed after 1950 (A) by an employee for the person employing him,
irrespective of the citizenship or residence of either, (i) within the United States, or
(ii) on or in connection with an American vessel or American aircraft under a contract
of service which is entered into within the United States or during the performance
of which and while the employee is employed on the vessel or aircraft it touches at a
port in the United States, if the employee is employed on and in connection with such
vessel or aircraft when outside the United States, or.(B) outside the United States by
a citizen or resident of the United States as an employee (i) of an American employer
(as defined in subsection (e) of this section), or (ii) of a foreign affiliate (as defined in
%section 3121(1x8) of Title 26) of an American employer during any period for which
there is in effect an agreement, entered into pursuant to section 3121(l) of Title 26,
with respect to such affiliate, or (C) if it is service, regardless of where or by whom
performed, which is designated as employment or recognized as equivalent to employ-
ment under an agreement entered into under section 433 of this title; except that, in
the-case of service performed after 1950, such. term shall not include
[See main volume for text of (1) to (4)]
(5) Service performed in the employ of the United States or any instrumentali-
ty of the United States, if such service--
(A) would be excluded from the term "employment" for purposes of this
subchapter if the provisions of paragraphs (5) and (6) of this subsection as in
effect in January 1983 had remained in effect, and
(B) is performed by an individual who (i) has been continuously in the
employ of the United States or an instrumentality thereof since December
31, 1983 (and for this purpose an individual who returns to the .performance
of such service after being separated therefrom following a previous period
of such service shall nevertheless be considered upon such return as having
been continuously in the employ of the United States or an instrumentality
thereof, regardless of whether the period of such separation began before
,
on, or after December 31, 1983, if the period of such separation does not
exceed 365 consecutive days), or (ii) is receiving an annuity from the Civil
Service Retirement and Disability Fund, or benefits (for service as an
employee) under another retirement system established by a law of the
United States for employees of the Federal Government (other than for
members of the uniformed services);
except that this paragraph shall not apply with respect to-
(i) service performed as the President or Vice President of the United
States,
(ii) service performed-
(I) in a position placed in the Executive Schedule under sections 6312
through 5317 of Title 5,
(II) as a noncareer appointee in the Senior Executive Service or a ~r{
noncareer member of the Senior Foreign Service or V
(III) i
i
n a posit
on to which the individual is appointed by the Presi-
dent (or his desi
gnee) or the vice President under section 105(ax1),
106(axl), or 107(a)(l) or (b)(1) of Title 3, if the maximum rate of basic
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
(1169- PUBLIC HEALTH AND WELFARE 42 ? 410
? pay for such position is at or above the rate for level V of the Executive
Schedule,
(III) service performed as the Chief Justice of the United States, an
Associate Justice of the Supreme Court, a judge of a United States court of
appeals, a judge of a United States district court (including the district court
of a territory), a judge of the United States Claims Court, a judge of the
United States Court of International Trade, a judge of the United States
Tax Court, a United States magistrate, or a referee in bankruptcy or United
States bankruptcy judge, .
(iv) service performed as a Member, Delegate, or Resident Commissioner
of or to the Congress, or.
(v) any other service in the legislative branch of the Federal Government
if such service is performed by an individual who, on December 31, 1983, is
not subject to subchapter III of chapter 83 of Title 5;
(6) Service performed in the employ of the United States or any instrumentali-
ty of the United States if such service is performed-
(A) in a penal institution of the United States by. an inmate thereof;
(B) by any individual as an employee included under section 5351(2) of
Title 5 (relating to certain interns, student nurses, and other student employ-
ees of hospitals of the Federal Government) other than as a medical or
dental intern or a medical or dental resident in training; or
{+ ' (C) by any individual as an employee serving on a temporary basis in case
enc
;
emer
il
i
o
h
d
y
g
ar
er s
m
, or
t
of fire, storm, earthquake, floo
[See main volume for text of (7)]
(8) Service performed by a duly ordained, commissioned, or licensed minister
of a church in the exercise of his ministry or by a member of a religious order in
the exercise of duties required by such order, except that this paragraph shall not
apply to service performed by a member of such an order in the exercise of such
duties, if an election of coverage under section 3121(r) of Title 26, Internal
Revenue Code of'1954, is in effect with respect to such order, or with respect to
the autonomous subdivision thereof to which such member belongs;
(See main volume and pocket part for text of (9) to (20); (b) to (o)]
(p) Medicare qualified Federal employment
For purposes of sections 426 and 426-1 of this title, the term "medicare qualified
Federal employment" means any service which would constitute "employment" as
defined in subsection (a) of this section but for the application of the provisions of
subsection (aX5) of this section.
[See pocket part for text of (q)] '
(As amended Apr. 20, 1983, Pub.L. 98-21, Title I, ?? 101(a), 102(a), Title III, ?? 821(b), 822(a)(1),
323(ax2), 97 Stat. 67, 70, 118, 120, 121.)
1983 Amendment. Subsec. (a). Pub.L 98-
21, ? 323(a)(2), substituted "a citizen or resi-
dent of the United States" for "a citizen of the
United States" in the matter preceding par. (1).
Pub.L. 98-21, ? 321(b), in cl: (B) of the pro-
visions preceding par. (1), substituted reference
to section 3121(1)(8) of Title 26 for reference to
section 3121(1) of such title, "an American
employer (as defined in subsection (e) of this
section)" for "a domestic corporation (as deter-
mined in accordance with section 7701 of Title
26, Internal Revenue Code of 1954)", and "af-
filiate" for "subsidiary" after ..with respect to
such".
Pub.L. 98-21, ? 322(a)(1), added cl. (C) to
the matter preceding par. (1).
Subsec. (aX5). Pub.L. 98-21, ? 101(a)(I),
completely revised par. (5). Prior to that revi-
sion par. (5) read as follows:
(5) Service performed in the employ of any,
instrumentality of the United States, if such
instrumentality is exempt from the tax imposed
by section 1410 of the Internal Revenue Code
of 1939, by virtue of any provision of law which
specifically refers to such section in granting
such exemption;".
Subsec. (a)(6). Pub.L. 98-21, ? 101(a)(I),
completely revised par. (6). Prior to that revi-
sion par. (6) read as follows:
"(6)(A) Service performed in the employ of
the United States or in the employ of any
instrumentality of the United States, if such
service is covered by a retirement system estab-
lished by a 'law of the United States;
"(B) Service performed by an individual in
the employ of an instrumentality of the United
States if such an instrumentality was exempt
from the tax imposed by section 1410 of the
Internal Revenue Code of 1939, on December
31, 1950, and if such service is covered by a
retirement system established by such instru-
mentality; except that the provisions of this
subparagraph shall not be applicable to-
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
(v) by any individual as an employee section 1305 of this title) shall reduce the ac-
serv ing on a temporary basis in case of fire, crued entitlements to future benefits under the
storm, earthquake, flood, or other similar Federal Retirement System of current and
emergency; or retired Federal employees and their families."
"(vi) by any individual to whom subchap- Legislative History. For legislative histon
ter III of chapter 83 of title 5 does not apply and purpose of Pub.L. 98-21, see 1983 U.S.
because such individual is subject to another Code Cong. and Adm.News, p. 143.
? 411. Definitions relating to self-employment
For the purposes of this subchapter-
(a) Net earnings from self-employment
The term "net earnings from self-employment" means the.groswincome, as comput-
ed under chapter 1 of Title 26, Internal Revenue Code of 1939, derived by an
individual from any trade or business carried on by such individual, less the deduc-
tions allowed under such chapter which are attributable to such trade or business,
plus his distributive share (whether or not distributed) of the ordinary net income or
loss, as computed under section 183 of Title 26, Internal Revenue Code of 1939, from
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
42 ? 410 PUBLIC HEALTH AND WELFARE 117(
"(I) service performed in the employ of a retirement system (other than the retiremen
corporation which is wholly owned by the system of the Tennessee Valley Authonrn I;"
United States; Suhsec. (a)(8). Pub.L. 98-21, ? 102(5)) 1). 131
"(II) service performed in the employ of a struck out the_subpar. (A) designation pro.cd
Federal land bank, a Federal intermediate ing "Service performed" and struck out subpar
credit bank, a bank for cooperatives, a Feder- (B) which had related to service performed h)
al land bank association, a production credit employees of nonprofit organizations.
association, a Federal Reserve Bank, a Fed- Pub.L. 98-21, ? 102(a)(2), substituted "except
eral Home Loan Bank, or a Federal Credit
Union; that this paragraph shall not apply" for "rx:rpt
"(Iii) service performed in the employ of a that this subparagraph shall not apply".
State, county, or community committee un- Subsec. (p). Pub.L. 98-21, ? 101(a)(2). 'tit)-
der the Production and Marketing Adminis- stituted "but for the application of the pto%i-
tration; sions of subsection (a)(5) of this section" for
"(iv) service performed by a civilian em- "but for the application of the provisions .d-
ployee, not compensated from funds appro- "(I) subparagraph (A), (B), or (C)(i). (fit. or
priated by the Congress, in the Army and Air (vi) of subsection (a)(6), or
Force Exchange Service. Army and Air '?
2
b
i
"
(
) su
sect
on (a)(5) of this section
.
Force Motion Picture Service, Navy Ex- Eff
_
ectiv
~..~ nnw omrcs suoject to the jurisdiction t,,,t? - tct rxc.
of the Secretary of Defense, at installations of 1983' see section 10l(d) of Pub. L. 98-21, set gut
the Department of'Defense for the comfort, as a note under section 3121 of Title 26. Imrr-
pleasure_ cnntentrr"-nt -t ..,.,..,.,t -.t -t.....: nal Revenue Code.
...N. vvcmcm 0, personnel of such t)e- nmc,tumcnr ray section IUZ(a) of Puh.l_. 9S-
partment; or 21 effective with respect to service performed
"(v) service performed by a civilian em- after Dec. 31, 1983. see section 102(c) of Puh.l..
ployee, not compensated from funds appro. 98-21? set out as a note under section 3121 of
priated by the Congress, in the Coast Guard Title 26, Internal Revenue Code.
Exchanges or other activities, conducted by Amendment by section 321 of Pub.L. 95-21
an instrumentality of the United States sub- applicable to agreements entered into after Apr.
ject to the jurisdiction of the Secretary of 20. 1983, except that at the election of any
Transportation, at installations of the Coast American. employer such amendment shall also
Guard for the comfort, pleasure, content- apply to any agreement entered into on ..r
ment, and mental and physical improvement before Apr. 20. 1983. see section 321(1) , f
of personnel of the Coast Guard; Pub.L. 98-21 set out as a, note under section
"(C) Service performed in the employ of the 406 of Title 26. Internal Revenue Crxle
.
United States or in the employ of any instru- Amendment by section 322 of Pub.L. 98-21
li
f
menta
ty o
the united States, if such service is effective in taxable years beginning on or after
performed- Apr. 20. 1983, see section 322(c) of Pub.L.
"(I) as the President or Vice President of 98-21 set out as a note under section 3121 of
the United States or as a Member, Delegate, Title 26, Internal Revenue Code.
or Resident Commissioner of or to the Con- Amendment by section 323(a)(2) of Pub.L.
gress; 98-21 applicable to remuneration paid after
"(ii) in the legislative' branch; Dec. 31, 1983, see section 323(c)(1) of.Puh.L
"(iii) in a penal institution of the United 98-21 set out as a note under 3121 of Title 26.
States by an inmate thereof; Internal Revenue Code.
"(iv) by any individual as an employee in- Accrued Federal Retirement Entitlements:
eluded under section 5351(2) of title 5. other Reduction Proh;kited Secti
10,,..,
f ,
on
o
1 Y
cal or dental resident in training; Short' Title of 1983 Amendment note under
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
November. 12, 1983
The amendment reads as follows:
CONGRESSIONAL RECORD - HOUSE
Senate amendment No. 43: Page 26. after
line 9. insert:
Ssc. 137. No funds in this or any other Act
shall be used to process or grant oil and gas
lease applications on any Federal lands out-
side of Alaska that are in units of the Na-
tional Wildlife Refuge System, except
where there are valid existing rights or
except where it is determined that any of
the lands are subject to drainage as defined
in 43 C.F.R. 3100.2, unless and until the Sec-
retary of the Interior first promulgates, pur-
suant to section 553 of the Administrative
Procedure Act, revisions to his existing reg-
ulations so as to explicitly authorize the
leasing of such lands, holds a public hearing
with respect to such revisions,.and prepares
an environmental impact statement with re-
My vote then is a protest vote
against our procedures. It in no way
reflects on the many fine items in the
continuing resolution such as the pro-
grams in education, our homeless and
our unemployed, and our elderly. My
vote is a protest against our becoming
the arms merchant of the world. We
as a superpower should stand for
peace, not war. We as a nation should
be the major diplomats in bringing
people together. This, I am afraid, S-
not reflected in this continuing resolu-
tion. Therefore, I cannot support it. It
is my way of protesting our grossly un-
fortunate procedures.
spect thereto. - 0.1120
MOTION Orr=RZ= BY sta. wxrrTRN - CONFERENCE REPORT ON H.R.
Mr. oygITTEN. Mr, Speaker , I offer2077, .4J1EDERAL :.aPHYSICIANS
;:?:yta IIOtion. ',951- ?a7t w.r Y a8'+i? ?f~G7.
COMPARABILITY ..'ALLOWANCE
recede from its disagreement to the amena-
ment of the Senate numbered '43, and
concur therein.
The motion was agreed to.
A motion to reconsider the votes by
which action was taken on the confer-
ence report and the several motions
was laid on the table.
AMENDMENTS OF 1983=a+=
Mr. FORD of 'Michigan submitted
the following conference report and
statement on the bill (HR. 2077) to
amend title 5, United States Code; to
extend the Federal Physicians Compa-
rability Allowance Act of 1978, and for
other purposes:
H 9755'
"(b)(1) The appropriate agency head shall
pay, out of any appropriation or frond avail-
able to pay allowances under section 5948 of
title 5, United States Code, to any individu-
al as to whom liability is relieved under sub-
section (a), an amount equal to the aggre-
gate of any amounts paid by such individu-
al, or withheld from sums otherwise due
such individual, with respect to any liabili-
ty relieved under such subsection.
"(2) A payment under paragraph (11-
"(A) shall be made only if written applica-
tion therefor is submitted to the appropriate
agency head, in accordance with such regu-
lations as the President of his designee may
prescribe, within two years after the date of
enactment of this Act,, and
"(B) shall not be considered for purposes
of applying the limitation set forth in sec-
tion 5383(b) of title 5, United States Code.
"(C) For the purpose of this section-
"(1) the term 'aggregate pay', as used with
respect to an individual, means the aggre-
ssem4507. 53825384 and 5individual sections of title 5,
United States Code;' _'-
"(2) the term 'appropriate agency head'. as
used with respect to an individual, means
the head of the agency employing such indi-
vidual when such individual was paid an
allowance with respect to which liability is
relieved under this subsection; and
"(3) the term 'agency' has the meaning
given such term by section 5948(g)(2) of such
title
"TITLE 11-FEDERAL EMPLOYEES'
RETIREMENT ADJUSTMENT
SHORT 7TrJS
"SEc. 201. This title may be cited as the
'Federal Employees' Retirement Contribu-
tion Temporary Ad ustment Act 01983.
. "STATEDISIIPr 07 POLJCY
CoxrERzNcs REPORT (H. RsPT. No. 98-542)
The committee of conference on the disa-
ANNOUNCEMENT BY THE greeing votes of the two Houses on the
SPF.ASER amendment of the Senate to the amend-
ment of the House to the amendment of the
The SPEAKER. The Chair will Senate to the bill (H.R.. 2077) to amend title
advise the Members that the Chair 5, United States Code, to extend the Federal
will take 1-minute requests at this par- Physicians Comparability Allowance Act of
ticular time. ' 1978. and for other purposes. having met.
After the 1-minute requests, the after full and free conference, have agreed
to recommend and do recommend
Chair. understands that the gentleman to their
respective Houses as follows:
from Michigan (Mr. Foxe) has a con- That the House recede from its disagree-
ference report he desires to submit. ment to the amendment of the Senate to
We will also take special orders at the amendment of the House to the amend-
this particular time. ment of the Senate to the House bill, and
The House will then be in recess sub- agree to the same with an amendment as
Ject to the action of the Senate, and follows:
In lieu of the matter proposed
the House will then be called back. to be in-
serted by the Senate amendment to the
House amendment to the Senate amend-
A PROTEST VOTE ON THE
CONTINUING RESOLUTON
(Ms. OAKAR asked and was given
permission to address the House for 1
minute and to revise and extend her
remarks.)
Ms. OAKAR. Mr. Speaker. I am op-
posing this resolution once again be-
...,,- of the way we handle foreign
-
this
ll b
h
___-
-
e -.-...
a
al projects and the thrust of One ivr- a
eign aid bill is for more military hard- than September 30, 1987, nor shall any "(4) that such employees and officers
ware. We as a country are relinquish- agreement cover a period of service extend- accrue credit for service for the purposes of
ing our position as a moral force in the ing beyond September 30, 1989.. the public retirement systems in effect on
"'b) Section 3 of the Federal Physicians the date of enactment of this Act until a new
world. Our emphasis is on military so- Comparability Allowance Act of. 1978 (5 Government retirement system covering
lutions and our aid to countries reflect U.S.C. 5948 note) is amended by striking out such employees and officers is established;
this. 'September 30, 1985' and inserting in lieu "(5) that, where appropriate, deposits to
A good case in point is El Salvador. thereof 'September 30, 1989. the credit of such a retirement system be re-
Again we are giving more military as- "PAY OF CERTAIN FEDERAL PHYSICIANS FOR quired with respect to service performed by
sistance when the people there have FISCAL YX" seas an employee or officer of the Government
been victimized by the military. "SEc 103. (a) Any individual whose aggre- during the period described in clause (11,
Indeed, much of the bloodshed in the gate pay for fiscal year 1982 exceeded the and, where appropriate. annuities be offset
world is because of our aid. This must limitation set forth in section 5383(b) of by the amount of certain Social Security
stop. I sincerely hope that those who --.'ie 5, United States Code, is relieved of all benefits attributable to such service; and
liability to the United Stales for any . "(6) that such employees and officers who
oppose nuclear weapons will be con- amounts paid to such individual in excess are first employed in civilian service by the
sistent in their philosophy we not only of such limitation if, and to the extent that, Government or first take office in civilian
need a nuclear arms control but an such liability takes into account any allow- service in the Government on or after Janu-
arms control period. once paid under section 5948 of such title. ary 1, 1984, become subject to such new Gov=
went to the House bill. insert the following:
"TITLE I-PHYSICIANS COMPARABILITY
ALLOWANCE
'SHORT 7777.E
'SEc. 101. This title may be cited as the
Federal Physicians Comparability Allow-
ance Amendments of 1983
. "EXTENSION 07 Sri HORJTr
'SEc 102. (a) The second sentence of sec-
tion 5948(d) of title 5. United States Code, is
"SEc 202. It is the policy of the Govern-
ment-
1: (1) that the amount required to be con-
tributed to certain public retirement sys-
tems by employees and officers of the Gov-
ernment who are also required to pay em-
ployment taxes relating to benefits under
title II of the Social Security Act for service
performed after December 31, 1983, be modi-
fied until the date on which such employees
and officers are covered by a new Govern-
ment retirement system (the design. str o-
ture, and provisions of which have not been
determined on the date of enactment of this
Act) or January 1, 1986, whichever is earlier,
"(2) that the Treasury be required to pay
into such retirement systems the remainder
of the amount such employees and officers
would have contributed during such period.
but for the temporary modification; .
"(3) that the employing agencies make
contributions to the retirement systems with
respect to such service in amounts required
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
 H 9756
ernment retirement system as may be estab-
lished for employees and officers of the Gov-
ernment on or after January 1, 1984. and
before January 1, 1986, with credit for serv-
ice performed after December 31, 1983, by
such employees and officers transferred to
such new Government retirement system.
'DEP7Nl770NS
'Sec 203. (a) For the purposes of this
title-
"(1) the term 'covered employee' means
any individual whose service is covered
service;
"(2) the term 'covered retirement system'
means-
"(A) the Civil Service Retirement and Dis
ability System under subchapter III of chap-
ter 83 of title 5, United States Code;
"(B) the Foreign Service Retiremenl'and
-TY3Lc7n for such Covered service
Disability System under chapter .8 of the ered employees participaiing in such retire- in an amoun
t computed as provided in sub-
Foreign Service Act of 1980 (22 U.S.C 4041 meat system for service to which such sec- section (f); and
et seq.); tion applies, over = ?:?I'M) in computing a disability or survivor
!C) the Central Intelligence"Agency 'Re., -ib"(B) the total amount which was deducted ;)annuity which commences under a covered
"- vey serif and IDisability..Syatem -tinder'the end' withheld' from the pay 'of covered em- retirement system during such period and is
Central Intelligence Agency Retirement Act ployees for such service as provided in sec-...based im any Part, 04 .auch interim covered
t .011964 for Certain Employees (50 U.SC 403 -(ion 204/x) of this Act, and ..wxY services
note); and '(2) the term 'appropriate agency head' ?'IBl Notwithstanding any other provision
than a new Government retirement system) . "IA) the Director of the Office of Personnel of law, an annuity to which subparagraph
under which a covered employee who is a Management, with respect to the Civil Ser>- (A)(ii) applies shall be reduced by the por-
participant in the system is required to ice Retirement and Disability System under tion of the amount of any benefits which is
make contributions to the system in an subchapter III of chapter 83 of title 5, payable under title 11 of the Social Security
amount equal to a portion of the United States Code; Act and is attributable to the interim cov-
pang basic pay for covered service, as pasli de. "(B) the Secretary of State, with respect to ered service considered in computing the termined by the President; the Foreign Service Retirement and Duabil- amount of such annuity. as determined
"(3) the term 'covered service' means serv- ity System under chapter 8 of the Foreign under subsection (g1, unless, in the case of a
ice which is employment for the purposes of Service Retirement Act of 1980 122 U.S.C survivor annuity, a covered employee has
title 11 of the Social Security Act and chap- 404 et seq.); made a deposit with respect to such covered
to 21 of the Internal Revenue Code of 1954 "(C) the Director of Central Intelligence service for the purposes of subparagraph (A)
by reason of the amendments made by sec- with respect to the Central Intelligence (i) before the date on which payment of such
tion 101 of the Social Security Amendments Agency Retirement and Disability System annuity commences. . -
of 1983 (97Stat. 67); and under the Central Intelligence Agency Re- "(3) Notwithstanding any other provision
"
14) th t '" G
eermnewovernment retirement
system' means any retirement system which
(A) is established for officers or employees of
the Government by or pursuant to a law en-
acted after December 31, 1983, and before
January 1, 1986, and (B) takes effect on or
before January 1, 1986.
"Ib) The President shall publish the deter-
minations made for the purpose of subsec-
tion (a)(2)(D) in an Executive order.
"CONTRJB U77ON ADNUSTM#.N7S
'Sec. 204. (a) In the case of a covered em-
ployee who is participating in a covered re-
tirement system, an employing agency shall
deduct and withhold only 1.3 percent of the
basic pay of such employee under-
"I1) section 8334 of title 5, United States
Code;
"(2) section 805 of the Foreign Service Act
01980 (22 U.S.C. 4045);
"(3) section 211 of the Central Intelligence
Agency Retirement Act of 1964 for Certain
Employees (50 U.S.C 403 note); or
"(4) any provision of any other covered re-
tirement system which requires a partici-
pant in the system to make contributions of
a portion of the basic pay of the participant,
for covered service which is performed after
December 31, 1983, and before the earlier of
the effective date of a new Government re-
tirement system or January 1, 1986. Deduc-
tions shall be made and withheld as pro-
vided by such provisions in the case of cov-
ered service which is performed on or after
such effective date or January 1, 1986, as the
case may be, and is not subject to a new
Government retirment system.
"Ib) Employing agencies of the Govern-
ment shall make contributions with respect
to service to which subsection (a) of this sec-
lion applies under the second sentence of "SEC. 206. (a) For the purpose of this sec-.
section 8334(a)(1) of title 5, United States lion, the term 'interim covered service'
Code, the second sentence of section 805(a) means covered service to which section 204
of the Foreign Service Act of 1980 (22 U.S.C. (a) applies.
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
CONGRESSIONAL' RECORD -'H, SE November 12, 1983
4045(a).), the second sentence of section
211(a) of the Central Intelligence Agency Re-
tirment Act of 1964 for Certain Employes (50
U.S.C. 403 note), and any provision of any
other covered retirement system requiring a
contribution by the employing agency, as if
subsection (a) of this section had not been
enacted.
''neJMBURSE.VENT FOR Con-r,nn UTION -
DEFICIENCY
"SEC 205. (a) For purposes of this sec-
lion-
"(1) the term 'contribution deficiency',
when used with respect to a covered retire-
ment system, means the excess of-
"(A) the total amount which, but for sec-
tion 204 (a) of this Act, would have been de-
ducted and withheld under a provision re-
ferred to in such section from the pay of cov-
tirement Act of 1964 for Certain Employees
(50 U.S.C. 403 note); and
"(D) the officer designated by the Presi-
dent for that purpose in the case of any re-
tirement system described in section
203(a)(2)(D) of this Act
- "(b) At the end of each of fiscal year 1984,
1985, and 1986, the appropriate agency
head-
"(1) shall determine the amount of the
contribution deficiency for such fiscal year
in the case of each covered" retirement
system, including the interest that those
contributions would have earned had they
been credited to the fund established for the
payment of benefits .under such retirement
system in the same manner and at the same
time as deductions under the applicable pro-
vision of law referred to in section 204(a) of
-this Act; and
"(2) shall notify the Secretary of the Treas.
ury of the amount of the contribution defi-
ciency in each such case.
"(c) Before closing the accounts for each of
fiscal years 1984, 1985, and 1986, the Secre-
tary of the Treasury shall credit to the fund
established for the payment of benefits
under each covered retirement system, as a
Government contribution, out of any money
in the Treasury not otherwise appropriated,
an amount equal to the amount determined
under subsection (b) with respect to that
covered retirement system for the fiscal year
involved
"(d) Amounts credited to a fund under
subsection (c) shall be accounted for se
pa-
ered service of such a cotvre i r"ti~?'rac ' -+cr
rately than amounts credited to such fund retires or din safter uch anuarr I.
:0,14 a.la;
under any other provision gflaw. considered in determining
-hrtr-en- :a
'SPECIAL DEPOSIT AND OFFSET RULES RELATING and computing the amore~f of ro? Roa>crr
TO RETIREMENT B
r -"
N
*
E
EFTXv FOR IN7TRIM COV Iwr
- under a covered retirement ERED SERVICE ~,.?.?~ `? ? 7,'
m
"(b)l1) Paragraphs (21 and (31 apply accord-
ing to the provisions -thereof only with re?
sped to a covered employee who is employed
by the Government on December 31, 1983.
"(2)(A1 Notwithstanding any other provi.
Sion of law, the interim covered service of
such covered employee shall be considered-
"6l in deterrning entitlement to and com-
puting the amount of an annuity (other
than a disability or survivor annuit) com-
mencing under a covered retirement system
during the period beginning January 1,
1984, and ending on the earlier of the date a
new Government retirement system takes
effect or January 1, 1986, by reason of the re-
tirement of such covered employee during
such period only if such covered employee
system is not established or is inapplicable
to such a covered employee Who retires or
dies subject to a covered retirement system
after the date on which such new Govern.
ment retirement system takes effect, the in-
terim covered service of such covered em-
ployee shall be considered in determining,
entitlement to and computing the amount of
an annuity under a covered retirement
system based on the service of such covered
employee only"if "such 'covered employee
makes a deposit to the credit of such covered
retirement system for such covered service
in an amount computed as provided to sub-
section (f). ?- .. "(c) (I/ Paragraphs (2) and (3) apply ac.
cording to the provisions thereof only with
respect to a covered employee who was not
employed by the Government on December
31, 1983. .
"12) Notwithstanding any other provision
of lawD, any annuity which commences
under a covered retirement system during
the period described in subsection
(b)(2)(Al(i) and is based, In any part. or in-
terim covered service shall be reduced by the
portion of the amount of any benefits trAich
is payable under title 11 of the Social Secu-
rity Act to the annuitant and is attrrbn:Whle
-to such service, as determined under subaec
Lion (g).
"(3) Notwithstanding ana other, provisson
of law, if a new Govern'nenl rstrfr'% t
it
the service of such covered e
-w-7 "
such covered employee m.044
the credit of such coverr.t +M+,''..
M N"a. ?of .r It
for such covered service in .+
Pitted as provided in su fire i+'"
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
 11 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6 H 9757
November 1A 1983 C - NGRESSIONAL RECORD -- Hu u ~) "
"(d) if a covered employee with respect. system on or after January 1, 1984, and al dment of the senate to the amend-the
to whom subsection (b)(3) or (t.)(3) applies thereafter becomes subject to a new Govern- S natef to the the bill (H to the amer.d.nient R. 2077) to amendf title
dies without having made a deposit pursu- rent retirement system-
ant to such subsection, any individual who "(I) credit for the service of such employee 5, United State- Code. to extend the Federal
is entitled to an annuity under a covered re- to which section 204(a) applies shall be Physicians Comparability Allowance Act of
lifer, ent system based on the service of such transferred from such covered retirement 1978, and for other purposes, submit the fol-
covered employee or who would be entitled system to the new Government retirement lowing joint statement to the House and the
to such an annuity if such deposit had been system for the purposes of the new Govern- Senate in explanation of the effect of the
made by the covered employee before death meet retirement system; and action agreed upon by the managers and
may make such deposit after the date of '72) such service shall be considered not to recommended in the accompanying confer-
death of such covered employee. Service co-v- be creditable service for the Purposes of such ence report:
Bred by a deposit made pursuant to the first covered retirement system, The Senate amendment struck out all of
sentence shall be considered in determining, effective on the date on which such employee the House bill after the enacting clause and
in the case of each individual to whom the becomes subject to such new Government re- inserted a substitute text.
first sentence applies, the entitlement to and tirement system." The House amendment struck out all of.
the amount of an annuity under a covered 'ELECTIONS BY CERTAIN COV#P.ED EMPLOYEES the Senate amendment after the enacting
retirement system based on the service of clause and inserted a substitute text.
such covered employee. "SEC 208. !al Any individual performing The Senate amendment struck out lines 1
"(el A reduction in annuity under subsee- service of a type r clewed to in ciarsse t dough 12 of the House amendment and In-
tion (b)(2)1B) or (cl(2) shall commence on (i , or v sec eon (a/(5) of the Social serted new matter consisting of titles I and
the first day of the first month after the date De ri c In ng on or before Decem- 11.
on which payment of benefits under title 11 The House recedes from its disagreement
ime an tp and uc t i wad is then currently a to the amendment of the Senate with an
Qf .the Social Security Act tcommence
:,;~; sliail tie redetermined each tia an titcrea4e -participant in a covered retirement. system, amendment which is a' substitute. The dif-
to such benefits takes effect pursuant to sec- elect :by :writters 4PPlicatioa`9ubrmittedferences between'.the''House'-and Semite ;~
lion 215(1) of the Social Security Act. In the beforeJanuary 1.1984 : mac - ? ^ ~* =`d amendments and the'sub3titute agreed to in
case of an' annuity of d"participant 'or "t4) to terminate Participation in uuc)h conference are noted below: except for Jeri- 3; or faser Participant in a covered retirement VyStM (B) effective after Dember
under ndeer s stems,Bas if cat corrections, nts conforming reached changes made
by the
system, tof a i surviving orfo spouse or child of the preceding sections of this Act and the necessary by agreeme
such participant or former (pant, or conferees, and minor drafting and clarifying
of any other person designated by by such par- amendments made by this Act had not been changes. -
ticipant or former participant to receive an enacted; or HOUSE AMENDMENT i
annuity, under a covered retirement system - "(2) if such individual is then currently
(other than a former spouse) the reduction not a participant in a covered retirement The House amendment amends section
in annuity under subsection fb)(2)(B) or system, elect by written application- ..:. 5948(d) of title 5. United States Code, and
(c)(2) shall be calculated before any reduc- "(A) to become a participant under such section 3 of the Federal Physicians Compa-
tion in such annuity provided under such system (if such individual is otherwise eligf- rabidity Allowance Act of 1978 to extend the
system for the purpose of paying an annuity ble to participate in the system)' subject to 1978 Act for two more years. The current
under such system to any former spouse of the preceding sections of this Act and the authority to enter Into contracts with physi-
such participant or former participant amendments made by this Act; or clans expired September 30. 1983. Also
based on the service of such participant or "(B) to become a participant under such under current law, contracts, entered into
former participant. system (if such individual is otherwise eligi- prior to September 30, is83 awnot extend
"(f) For the purposes of subsection IN or ble to participate in the system), as if the beyond September 30. 1985. The_ House .
(c), the amount of a deposit to the credit of preceding sections of this Act and the amendment extends the authority to enter
the applicable covered . retirement system amendments made by this Act had not been into contracts until September 30. 1985, and
shall be equal to the excess of- enacted. permits those contracts to extend until Sep-
"(1) the total amount which would have '1(b) An application by an individual tember 30. 1987.
been deducted and withheld from the basic under subsection (a1 shall be submitted to SENATM Aar]!;rnzASrr'r
_ pay of the covered employee for the interim the official by whom such covered employee The Senate amendment differs from the
covered service. under such covered .retire is paid House amendment in three respects. First,
meet system but for the application of sec- '(c) Any individual who elects to termi' the Senate amendment extends the Federal
tion 204(a), over hate participation in a covered retirement
"12) the amount which was deducted and system under subsection (al1lfA) is entitled Physicians Comparability Allowance Act of
withheld from such basic pay for such inter- to have such individual's contributions to 1978 for four years instead of two. Second. It
im covered service pursuant to section 204 the retirement system refunded. in accord- relieves 13 Federal physicians of the obliga-
(a) and was not refunded to such covered ante with applicable provisions of law. as if tion to repay certain compensation received
employee. -- ? such individual had separated from service in fiscal year 1982 which was in excess of
"(g) For the purpose. of subsections as of the effective date of the election. the statutory limit on aggregate compensa-
(b)(2)(B) and !c) (2), the portion of the "(d) Any individual who is eligible to tion set forth In section 5383(b) of title 5,
amount of the' benefits which is payable make an election under subparagraph (A) or United States Code. The statutory limit was
under title 11 of the Social Security Act to an (B) of subsection (a)(1), but who does not exceeded when these individuals mistakenly
individual and is attributable to interim make an election under either such subpara- were paid maximum physicians comparabil- ' . -
covered service shall be determined by- graph, shall be subject to the preceding sec- ity allowances and Senior Executive Service."
"(1) computing the amount of such bene- lions of this Act and the amendments made performance awards- The amounts forgiven .,h-,~ . ?,
fits including credit for such service; by this Act. range from $1,455.46 to $5,988.66. Finally.
"(2) computing the amount of such bene- "TITLE 111-SENIOR EXECUTIVE the Senate amendment contains provisions
fits, if any, saithoi(t including credit for SERVICE addressing the problem of double coverage
such service; and Personnel of Federal employees hired after December
"(3) subtracting the' amount computed Sec 301. la/ The Office of 31, 1983. (newly hired employees) under
under clause (2) from the amount computed Management shall study and, within 12 social security and other Federal staff re-
under clause (1). months after the date of enactment of" - tirement systems including, but not limited
"(h) The Secretary of Health and Human And that the Senate agree to the same. tp the Civil Service Retirement and Disabil-
Services shall furnish to the appropriate WILLIAM D. FORD, ity System, the Foreign Service Retirement
agency head (as defined in section Mo MILL, and Disability System, and the Central In-
205(a)12)) such information as such agency MARY Rosa OASAR. ? telligence Agency Retirement and Disability
head considers necessary to carry out this GENE TAYLOR, A. GILMAN. System (covered retirement systems).
section. BENJAMIN - Managers on the Part of the House The retirement provisions of the Senate
'TRANSFER or cREDrr ro NEw RETIREMENT S _ amendment essentially provide that Federal
SYSTEM TEn STEVENS, employees hired after December 31, 1983.
CsARLES MCC. MATHIAS. (newly hired emplolyees) would be fully cov-
'Sec. 207. (a) Any covered employee who Jr., ered under both social security and the ap-
first becomes employed in civilian service by Jrsr BINGAMAN, plecable covered retirement system during a
the Government or first takes office of civil- Managers on the Part of the Senate. two-year transition period ending January
ian service in the Government on or after JOINT EXPLANATORY STATEMENT Or THE 1, 1986. During this period employees would
COMMITrES or CoxrERENca -pay the full social security tax and contrib-
retire mt ment subject system a as s
1984 beco such n1, Govern,
Government shall
may new e
may be established. The managers on the part of the House ute 1.3 percent of pay to the applicable cov-
"(b) In the case of any covered employee and the Senate at the conference on the dis- eyed retirement system. Employing agencies
who is subject to a covered retirement agreeing votes of the two Houses on the would continue to make their full retl:e-
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
 Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6
H 9758 )NGRESSIONAL RECORD - HOU_
n:er:t contributions (in most cases 7 per-
cent). The difference between the employ-
ce's normal contribution (in most cases 7
percent). and the amount actually contrib-
uted (1.3 percent) would be made up by the
Treasury through amortized payments over
VD years.
if during the two-year transition period a
ne. iv hired employee becomes eligible for
benefits under a covered retirement system,
nn retirement credit would be allowed for
s?rvice during the transition period unless a
:.posit equal to the difference between the
1.3 percent actual contribution and the
normal employee contribution rate is made.
In the case of disability or survivor benefits,
the deposit requirement is waived. In addi-
tion, the retirement benefits for an employ-
ee or survivor would be reduced by an
amount equal to that portion of any social
security benefit that is attributable to serv-
ice during the transition period. Members,
Judges, and current employees who will be
covered by social security are treated the
same as newly hired employees except their
service is not transferred to the new system
At the end of the transition period, newly
hired employees would be transferred to a
new yet-to-be-developed supplemental re-
tirement plan and would receive credit
under that plan for their service during the
transition period.
CONFERENCE AGREEMENT
EXTENSION OF THE FEDERAL PHYSICIANS
COMPARABILITY ALLOWANCE ACT OP 1978
The conference agreement follows the
yrr:ate amendment and extends the 1978
Act for four years beginning October 1,
1)33.
There have been persistent reports during
the last two years from agencies experienc-
ing ongoing recruitment and retention prob
iems with respect to Federal physician posi-
tions. Nevertheless, these agencies have
chosen not to implement the Federal Physi-
cians Comparability Allowance Act. The
conferees note the intent of Congress is for
ti is Act to be used whenever measurable re-
cruitment and retention problems exist. In
that regard, the conferees direct the Office
of Personnel Management and those agen-
cies employing civil service physicians to ex-
amine more closely the recruitment and re-
tention problems that exist with respect to
these physicians and to make more effective
use of the allowances authorized by this Act
where identifiable problems exist.
RELIEF FOR CERTAIN FEDERAL PHYSICIANS
The conference agreement follows the
Senate amendment but extends relief to any
other Federal physician similarly situated.
It provides that any Individual whose aggre-
gate pay for fiscal year 1982 exceeded the
limitation set forth in section 5383(b) of
title 5, United States Code, is relieved of all
liability to the United States for any
amounts paid to that individual in excess of
the limitation if, and to the extent that, the
liability takes into account any physicians
comparability allowance.
DOUBLE COVERAGE OF FEDERAL EMPLOYEES
The conference agreement follows the
Senate amendment with several important
modifications.
With respect to the applicability of social
security offsets and the necessity for depos-
its for service during the transition period,
the conference agreement provides the fol-
lowing:
1. Newly hired employees-
A. Any retirement benefit commencing
during the transition period (1984 and 1985)
will be offset by the amount of any social
security benefit attributable to service
been established, the full contribution rate
again will be applicable, and retirement
credit (including credit for disability retire-
ment) for service during the transition
period will be allowed only if the employee
deposits the difference between the normal
contribution rate (in most cases 7 percent)
and A he rate actually paid during that
period (1.3 percent). In the case of an em-
ployee who dies without making the neces-
sary deposit, a survivor will be permitted to
make the deposit. There is no social security
offset.
II. Current employees who will be subject
to social security-
A. With respect to a retirement benefit
commencing during the transition period
(1984 and 1985), retirement credit for serv-
ice during that period will be allowed only if
the employee deposits the difference be-
tween the normal contribution rate (in most
cases 7 percent) and the rate actually paid
during that period (1.3 percent). An excep-
tion is made for disability and survivor bene-
fits. No deposit is necessary in those cases,
but the benefit will be offset by the amount
of any social security benefit attributable to
service during the transition period.
B. If by the end of the transition period
no new supplemental plan has been estab-
lished, or such a plan does not apply to cur-
rent employees, the full contribution rate
again will be applicable, and retirement
credit for service during the transition
period will be allowed only if the employee
deposits the difference between the normal
contribution rate tin most cases 7 percent)
and the rate actually paid during that
period (1.3 percent). In the case of an em-
ployee who dies'without making the neces-
sary deposit, a survivor would be permitted
to make the deposit.
A second important modification permits
current employees to make elections con-
cerning coverage. Although the Social Secu-
rity Amendments of 1983 (Public Law 98-21)
generally provide that only Federal employ-
ees hired after December 31, 1983, will be
covered by social security (and therefore
face a double coverage situation), certain
current officers and employees and current
Members and judges will also be brought
under social security effective January 1,
1984. Individuals in this affected group who
are participants in a covered retirement
system will be double covered effective Jan
- .
nary 1, 1984. The affected group includes
the President and Vice President, Members
of Congress, individuals in Executive Sched-
ule positions (e.g., cabinet secretaries,
deputy and assistant secretaries, heads and
top officials of other agencies, boards and
commissions, and other top officials), nonca-
reer members of the Senior Executive Serv-
ice and Senior Foreign Service, top officials
in the White House, and judges.
Unlike newly hired employees who may
elect whether or not to accept Government
employment and face the uncertainties of a
yet-to-be-established supplemental retire-
ment program, the affected group has no
election other than Lo resign, (which in
many instances would involve resignations
from elected offices, lifetime judicial ap-
pointments, or presidentially appointed and
Senate-confirmed positions). Also, unlike
most newly hired employees, many in the
affected group have made a substantial in-
vestment in, and have earned substantial
credits under, their current covered retire-
ment systems. For these individuals, the
rules are being changed in the middle of the
game. The conferees believe this is unfair,
and. the conference agreement permits cer-
tain elections by individuals in the affected
during that period. No deposit is require. group in order to mitigate the unfairness.
B. If by the end of the transition period / The conference agreement provides that
no new supplemental retirement plan has I an individual In the affected group who is
November 121 1983
currently participating in a covered retire-
ment system may elect: '(A) to terminate
participation in the covered none i t
system effective after December 31. 1983, in
which case no retirement, contribuEtcris to
such system will be required and the indi-
vidual will be required to pay only the social
security tax. or (B) to remain tinder the cur-
rent covered retirement system and make
full retirement contributions to such system
in addition to the social security tax. Under
election (A), the individual will be covered
only under social security. Under election
(B), the individual participates fully !n the
current covered retirement system and is
also covered by social security. An election
must be in writing and be submitted before
January 1, 1984. If no election is made, the
individual will be subject to the other provi-
sions of the conference agreement regarding
reduced contributions and a social security
offset.
In the case of an individual in the affected
group who is not currently participating in
a covered retirement system an election is
also provided. Such an individual may elect:
(A) to become a participant in the appropri-
ate covered system and be subject to the
other provisions of the conference agree-
ment regarding reduced contributions and a
social security offset: or (B) to become a
participant in the appropriate system and
not be subject to the other provisions of the
conference agreement regarding reduced
contributions and a social security offset.
Under election (A). the individual will be
treated essentially the same as a newly
hired employee and will pay the social secu-
rity tax and a reduced retirement contribu-
tion. Under election (B). the individual par-
ticipates fully in the appropriate covered re-
tirement system and pays the social security
tax plus a full retirement contribution. An
election may be made at any time. If no
election is made. the in v u' .onf'tn=
ue not to narticiDate-in-iL cpyered rgiJr eat
system, will
I1not be sub ect to the other pro-
Ions OlC COilfej'encP... rgMPm Pr1L a~
{Cllr-be CO1 e
The conference agreement provides that
an election must be submitted to the official
by whom the electing Individual is paid, and
that if an individual elects to term ate par-
ticipation in a cover r irement ed em
'the iindiviualy-el).tltled to receive a refund
of contributions in accordance Ihthe ap-
plicable pr visions of law cartcel?liag-.the
particular covered retirement Sys em.
"- ~e roar modifications relate to the defi-
ciency contribution. This contribution rep-
resents the amount not paid by employees
because of the reduction of their retirement
contributions to 1.3 percent. The Senate
amendment provides that an amount equal
to the deficiency shall be paid to the cov-
ered retirement systems by the Treasury of
the United States and that those payments
shall be amortized over 30 years- The con-
ference agreement provides the deficiency
payments shall be made at the close of
fiscal years 1984, 1935, and 1986 rather than
amortized over 30 years. The conferees be-
lieve the amounts involved are not signifi-
cant enough to warrant the administrative
attention which amortization would require.
In addition, the conference agreement pro-
vides the deficiency contribution shall in-
clude interest that the retirement contribu-
tions would have earned had they been
made by employees during the fiscal years
Involved. This ensures that the covered re-
tirement systems' funds will, in fact, be
made whole.
WILLIAM D. FORD,
Mo. UDALL,
MARY ROSE OAKAR,
GENE TAYLOR. -
Approved For Release 2011/03/07: CIA-RDP89-00066R000300010023-6