S. 2695 - "CIVIL SERVICE RETIREES' INTEREST ON DELAYED PAYMENT ACT"

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90M00005R001400010012-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 9
• Document Creation Date: December 27, 2016
• Document Release Date: October 17, 2012
• Sequence Number: 12
• Publication Date: August 24, 1988
• Content Type: MEMO

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~'I STAT
STAT
STAT
STAT
STAT
ROUTING AND RECORD SHEET
SUBJECT: (Optional)
S. 2695 - "Civil Service Retirees' Interest on Delayed Payment Act"
Chief, Retirement Operations Branc~i
906 Ames
T~: (Officer designation, room number, and
building)
xis
OFFICER'S
INITIALS
DATE ~} pp po
d'g ~ .~EIJ~ ~~~U
COMMENTS (Number each comment to show from whom
to whom. Draw a line across column aher each comment.)
~?""" 610 ~ a
,_,~
C/RD
DD/PERS/EBS
OCA
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24 August 1988
I, 25X1
25X1
MII~4ORANDUM FOR
FROM:
SUBJECT:
Office of Congressional Affairs
25X1
Chief, Retirement Operations Branch/RD
S. 2695 - "Civil Service Retirees' Interest on Delayed
Payment Act"
1. The proposed legislation (attached) presents the same concerns as
we expressed in regard to the House Version (H.R. 4361) which are outlined
in paragraph 3.
2. There is a significant difference between the House and Senate
version. The House version placed a 90 day timeframe on all types of
annuity payments. However, the Senate version places a 75 day timeframe
for optional retirements and a 45 day period for survivor and deferred
annuities. The rest of the bill is virtually identical to the House
version.
b. Disability - Frequently, the effective date for a
disability retirement case is made retroactive 30 to 90 days from
the date the Director of Personnel approves the case. This
occurs when the applicant has run out of sick leave and has been
placed in a LWOP status pending approval of their application.
The effective date is made retroactive to the day after the last
day in a pay status.
C O N F E N T I A L
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25X1
25X1
SUBJECT: S. 2695 - "Civil Service Retirees' Interest on Delayed
Payment Act"
4. In each of the above scenarios, the Agency would owe the retiree
interest on the money due, as the delays are due to no fault of the
employee. Clearly, none of the above pose valid reasons for objecting to
the legislation, as they are either internal processes which the Agency
5. In summary, I do not believe we can totally eliminate the above
problem areas thus we ma have to accept interest payments, to some
25X1 degree Please keep me advised regarding any future
developments on t is issue.
C O N F I D E N T I A L
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100TH COr(3RESS ~? ~~~~
2n SESSto~
To amend title 5, United States Code, to pro~-ide for the pacment of interest on
deleted initial pa}-ments under the Ci~-il Service Retirement S~?stem and the
Federal Emplo~?ee~' Retirement S3stem, and for other purposes.
IIt THE SEI\'ATE OF THE UNITED STATES
AUGUST 5, 198l;
]sir. BE:~TSE1: introduced the following bill; which R?as read ta-ice and referred to
the Committee on Go~?ernmental Affairs
A BILL
To amend title 5, United States Code, to prol-ide for the
pai-ment of interest on dela~?ed initial pa~-ments under the
Ci~?il Serti~ice Retirement Sj stem and the Federal Emplo~--
ees' Retirement System, and for other purposes.
1 Be it enacted by the Senate and House of Xepresenta-
2 fives of the United States of ~rnerica in Congress assembled,
3 That this Act ma~~ be cited as the "Ci~?il Ser~~ice Retirees'
4 Interest on Dela~?ed Pa~~ments Act".
5 SEC. 2. (a) Section 8345 of title 5, United States Code,
6 is amended b}~ adding at the end thereof the follo~-ing nea?
7 subsection:
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"(1)(1) The initial pa~rnent of annuitti? to an individual
2 entitled to aneuit.j? from the end shall be made-
3 "(A) in the case of an emplo~?ee or 14iember R?ho
4 is .entitled to an annuity on the basis of an immediate ~~,Q
~~~
5 retirement under section 8336, not more than 75 daj?s ~^~~ s+~'
6 after the date on which the emplo~-ee or Member is
7 separated from the service; or
8 "(B) in the case of an indi~~idual R-ho is entitled to
9 an annuitti? under section 8338, or 8341, not more than
10 45 daj?s after the date on which the Office receives a
11 completed application from the individual, in such form
12 as the Office maj? prescribe.
13 "(2) Except as provided in paragraph (3)(C), for each
14 daj? the initial pa~?ment of annuit~? is delayed be}?ond the ap-
15 plicable limit under paragraph (1), the Office shall paS? int.er-
16 est to individual, computed. at the interest rate applicable
1 r under section 8334(e)(3), compounded dail~?.
18 "(3) For the purpose of this paragraph-
19 "(A) `initial pati~rnent of aru~uit~' shall be deemed
20 t.o be the first pa3-ment of the regular monthlti? amount
21 of annuit~? to R?hich the indi~~idual L entitled, but ma~?
22 also include an3? additional amount of annuitj? o~?ed to
23 the individual for an earlier period, and maj? be subject
24 to subsequent correction or adjustment;
c 410 .
Cp
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1 "(B) pajment of annuit3 shall be deemed to be
2 made on the date of issue of the check or other instru-
3 ment making paS-ment; and
4 "(C) an~? da~?s during vrhich the Office is awaiting
5 an election or other response from the indi~?idual under
6 section 8339(1) or (k), 8343x, or other proti-ision of this
7 subchapter ma}? not be counted toward the applicable
8 limit under paragraph (1).
9 "(4) In an~? case R?here interest is paid as a result of the
10 limit under paragraph (1)(A) being exceeded, the Office. shall
11 determine if the limit a?as exceeded as a result of the failure
12 of the agencj? from which the emploj?ee or Member a?as sepa-
13 rated to forv4?ard to the Office ~-ithin 30 da~?s of the separa-
14 tion a completed retirement application, in such form as the
15 Office ma~? prescribe, t.ogethe.r ~-ith such certification as the
16 Office ma~? require. To the extent the Office deternunes the
1 i limit ~?as exceeded due to such failure bti? the agencj?, the
18 agencj? shall remit to the Office, to the credit of the end,
19 reimbursement for the interest paS?ment that ~?as made under
20 this paragraph. Such reimbursement shall be dra~-n from the
21 appropriation or fund that ~?as a~?ailable for pa~?ment of the
22 emplo~-ee or I1lember, or from other source as the agenc~-
23 ma~? determine appropriate.".
24 (b) Section 8348(a)(1)(B) of title 5, United States Code,
25 is amended b3? striking out "chapter 84 of this title" and
sev:. ~s
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1 inserting in lieu thereof the following: "chapter 84 of this
2 title, in administering and pa`?ing interest payments under
3 sections 8345(1) and 8461(m) of this title".
4 (c) Section 8461 of title 5, United States Code, is
5 amended b~? adding at the end thereof the folloa-ing neR? sub-
6 section:
7 "(n)(1) The initial pa~znent of a~uit~? to an indi~-idual
8 entitled t~o annuity- from the. Fund shall be made-
9 "(A) in the. case of an emplo~?ee or Member a?ho r~~t~p;~~,
10 is entitled to annuit~? on the basis of an immediate re- ~'j~,1~
11 tirement under section 8412 or 8414, not more than N
12 75 da~?s after the. date on which the emplo~~ee or
13 Iliember is separated from the ser~-ice; or
14 "(B) in the case of an indi~?idual ~?ho is entitled to
~~,,t.t
15 an annuity- under section 8413 or subchapter I~' of this ~ ~
16 chapter, not more than 45 dates a#t,er the date on
17 vt-hich the Office recei~?es a completed application from
18 -the indi~zdual, in such fornn as the. Office ma~? pre-
19 scribe.
20 "(2) Except as pro~-ided in paragraph (3)(C), for each
21 da3? the initial pa~-ment of annuit~? is de_laS~ed be3?ond the ap-
22 plicable limit under paragraph (1), the Office shall paj? inter-
23 est to the indi~-idual, computed at the interest rate applicable
24 under section 8334(e)(3), compounded dai13?.
25 "(3) For the purposes of this paragraph-
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"(A) 'initial paSment of annuity' shall be deemed
to be the first pa}-meat of the regular monthl}? amount
3 of annuit~? to which the indi~~idual is entitled, but ma~?
4 also include an~? additional amount of s~uit~? owed to
5 the indi~-idua] for an earlier period, and ma~? be subject
6 to subsequent correction or adjustment;
7 "(B) pa~-ment of annuit~? shall be deemed to be
g made on the date of issue of the check or other instru-
9 went mating pa~-ment;-and
10 "(C) and- da~-s. during v~?hich the Office is aR~aiting
11 an election or other response from the indii-idual under
12 section 8411(f), 8416, 8417, 8420, 8420x, or other
13 pro~-ision of this chapter mad- not be counted to~?ard
14 the applicable limit under paragraph (1).
15 "(4) In and- case -here int~erest~ is paid as a result of the
16 limit under paragraph (1)(A) being exceeded, the Office shall
17 determine if the limit R-as exceeded as a result of the failure
18 of the agency- from which the. emplo~?ee or Iliember v~?as sepa-
19 rated to forn?ard to the Office ~-it.hin 30 dad s of the separs-
20 tion a completed retirement application, in such form as the
21 Office ma~? prescribe, together ~-ith such certifications as the
~ 22 .Office ma~? require. To the extent the Office determines the
23 limit: Ras exceeded due to such failure b~- the agencS?, the
24 ageneS~ shall remit to -the Office, to the credit of the ,Fund,
25 reimbursement for the interest pa~-ment that ~?as made under
i
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1 this paragraph. Such reimbursement shall be draR-n from the
2 appropriation or fund that a?a~ a~~ailable for pa~znent of the
3 emplo~?ee or Member, or from such other source the agenc~-
4 mati? determine. appropriate.".
5 SEC. 3. The amendments made. bi? this Act shall tale
6 effect on the one-hundred and eightieth da~? after enactment,
i and shall appl~? to anj? indi~?idual whose annuity- commences
8 on or after such date.
O
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