LETTER TO GEORGE BUSH FROM DONALD J. DEVINE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000700090006-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 16
• Document Creation Date: December 27, 2016
• Document Release Date: August 5, 2013
• Sequence Number: 6
• Content Type: LETTER

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Cm; cm;
Office of
Management WashIngtort, D.C.20415
honorable George Bush
?resident of the Senate
Washington, D.C. 20510
Dearlir.:President:
I- P.for, 1,
Vow.
The Office of Personnel Management submits herewith a legislative proposal,
To amend title 5, United States Code, to reform the Civil Service Retire-
merit System, and for other purposes." This proposal is submitted in
accordance with the President's budget for fiscal year 1985, and as par_
of his program to eliminate unnecessary and wasteful:Federal spending. fWe:-
request that you refer this proposal to the appropriate committee for ear
consideration.
The major provisions of this legislation are esigned primarily to curtail
unnecessary and excessive expenditures for benefits under the Civil Service
Retirement System and to *bang the progrc-a more into line with private
sector practices.
Under the proposal, the determination of an ivrlividual's average pay for the
purpose of computing retirement benefits would use the highest earnings over
a five-year period, rather than three years as at present. .This .change would
not take effect until October 1, 1987, and would not affect anyone eligible
to retire by that date. The rates at which employees and agencies contribute
to the Retirement System would be increased by I percent in each of the next
2 fiscal years. With respect to most employees, this would mean deductions
at an 8 percent rate in fiscal year 1985 and 9 percent in fiscal year 1986
and thereafter. There would be no cost-of-living adjustment (COLA) in annu-
ities in fiscal year 1984. Future adjustments would be effective in December
-
and payable in January of each year. The full adjustment would be applied
only to the first $10,000 of annuity (increased in subsequent years by the
COLA for the preceding year), with any annuity over that base amount being
adjusted by 55 percent of the COLA. Beginning in December 19853 adjustments
would be based on the lesser of (1) the General Schedule increase effective
in the same fiscal year or (2) the Change in the Consumer Price Index (CPI)
between the third quarter of the calendar year and the preceding third quart
The December 1984 adjustment would be based on the CPI Change alone. That
adjustment would be the last in which non-disability civilian retirees who
have not reached age 62 by the effective date would receive one-half of the
Increase, in accordance with the Reconciliation Act of 1982, but the "floor-
on the one-half COLA under that Act would be eliminated for civilian retirees.
Survivor benefits for post-secondary students over age 18 would be phased
out and the minimum annuity would be eliminated for future beneficiaries.
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AaariCrtrate:OTLUci;
2
In addition, employees of the government of the District of Columbia
hired on or after October 1, 1984, would be excluded from the Civil
Service Retirement System, the Federal Employees' Group Life Insurance
Program, and the Federal Employees Health Denefits Program.
We estimate that the proposed Changes in Civil Service Retirement would
produce the following savings for the unified budget:
Fiscal Year
1985
Fiscal Year
1986
Fiscal Year
1987
Fiscal Year
1988
Fiscal Year
1989
$1,201 million
2,495 million
2,774 million
3,048 million
3,344 million
1985-39 total $12,862 million:,
We believe this proposal is particularly significant in that It clearly
demonstrates our commitment to eliminating unwarranted expenditures and,
restoring Federal workers and retirees to a position .which is more con7
sistent with that enjoyed by other individuals throughout our econotv.
The Office of HAnagement and Budget advises that enactment of thisyro-
posal would be in accord with the program of the President.T-
A smiler letter
-Iresentatvaso
,-HEnclosures
belog sent to the Sneaker of the Eouue of-
:Sincerely,
- Donald J. Devine
_Director
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.P..A./Lett?ril Lir ,Juo La_r
To accompany a draft bill
"To emend title 5, United States Code, to reform the Civil Service
Retirement System, and for other purposes."
At present, the Civil Service Retirement System has a dynamic normal cost
to the Government of approximately 29.5 percent of payroll, which is con-
siderably more than private sector employers generally spend for their
employees' retirement benefits. This bill cant ins several proviSions
designed to reduce the high cost of the Civil Service Retirement System
while preserving an adequate level of retirement income for Federal
employees..
'high-Five-Year" Average Salary
Since 1969, Civil Service annuities have been computed based on each
employee's highest average annual earnings during ..3.consecutive
"Before 1969, a "high-five-yeer".rather than a "high-three-year", average
salary was used. This bill would return to the ."high-five-year" salary.
'This change wouldnot apply to anyone who is eligible to retire on or.
'before October 1, 1987, when the provision would become effective. ::14p..
-estimate that this amendment will reduce outlays by -$12 million in
fiscal year 1988 and $39 million in fiscal year 1989
Increase in Employee and (zency Contributions
This provision would raise employees' salary deductions for retirement
benefits from the pfesent 7 percent of salary to8 percent in fiscal year
1985 and 9 percent in fiscal year 1986 and thereaftet. There would be a
corresponding increase in the contribution rates of special groups, such
as firefighters, whose contribution rates are slightly higher than the -
rate for employees generally.: Employer contributions to the-Retirement
Fund would also increase, matching the increase in contribution rates of
employees. We anticipate the following additional income fiat non-Federal
sources as a result of this change:
Fiscal Year 1985
Fiscal Year 1986
Fiscal Year 1987
Fiscal Year 1988
Fiscal Year 1989
1985-89 total
Limit on Cost-of-Living Adjustments
? $ 793 million
1,685 million
1,786 million
1,888 million
1,992 million-:
:.$8,144 million
Under 5 U.S.C. 8340, an annual cost-of-living adjustment (COLA) is nor-
mally effective on Harch 1 of each year, based on the rise in the Consumer
Price Index (CPI) during the preceding calendar year. Public Law 97-253
delayed the COLA to April 1 in 1983, May 1 in 1984, and June 1 in 1985.
That law also provided that retirees under age 62, except disability
retirees, shall receive COLA's of 3.3 percent in 1983, 3.6 percent in
1984, and 3.3 percent in 1985--one-half of the rise projected for the
CPI When the law was enacted--plus any amount by which the actual CPI
increase exceeds the projected increase.
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? Thia bill would eliminate the fiscal year I984 COLA. Hereafter, adjustments
would be effective on December I of each year, beginning in December 1984,
and be paid on January 1. The December 1984 adjustment would be based on
the change between the CPI for the third quarter of calendar year 1984 and
the CPI for the third quarter of calendar year 1983. The full COLA would
be payable on the first $10,000 of annuity, with any excess being adjusted
by 55 percent of the COLA. In accordance with Public Law 97-253, Don-
disability retirees under age 62 would receive one-half of the COLA other-
wise payable, but the 3.3 percent "floor" under that law would not pply.
In subsequent years, in lieu of using the CPI alone, the full COLA amount
would be the lesser of the increase in General Schedule pay or the third-
quarter-to-third-quarter CPI change. The $10,000 base amount to which the
full increase applies would be adjusted, beginningin 1985, by the amount
of the previous year's COLA,
These proposed changes are designed to curb the ? excessive growth-in-annuities-
that has resulted from the compounding of COLA's over the-yearsa-causing many
annuitants to receive retirement.benefita that,are disproportionate to the
nompensation of current Federal employees. We estimate that these,changes_
will result in the following savings:
Fiscal Tear
1985
FiscalYear
1986
Fiscal7:.?.ar
1987
Fiscal Year
.4983
Fiscal 'Year
1)63
1985-89 total
$ 403 million .
.,794 million -
960 rilillon
1,118
3 --111Lon
million
-These proposed Changes would also apply to certain other retirement
:systems for Government employees, such al; the Foreign Service Aetire-
ment System, under which COLA's are linkedto Civil Service getirementL_
COLA's
Survivor Benefits for Post-secondary School-Students
Survivor benefits Which are now payableto young adults between ages 18
-and 22 who are full-time students in post-secondary schools would be
eliminated by the proposal. These Changes are prompted by Similar
Changes made to the Social Security program by the Omnibus Budget
Reconciliation Act of 1981, Which eliminated Social Security survivor
benefits for post-secondary students between ages 19 and 22. .These
chnnges are designed to eliminate from the retirement program the re-:
sponsibility for providing post-secondary educational assistance.
Current recipients would be permitted to continue under the program
until they reach age 22 or leave school, whichever comes first. We
estimate that these Changes will produce the following savings:
Fiscal Year
1985
Fiscal Year
1986
Fiscal Year
1987
Fiscal Year
1988
Fiscal Year
1989
1985-89 total
$ 5 million
16 million
28 million
29 million
30 million
$108 million
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Elimination of Minimum Annuity
Under current law, a minimum annuity equal to the bow-eliminated minimum
Social Security benefit is paid to any annuitant whose annuity would
otherwise be less than that and who is not receivipg any other Federal
retirement benefit, including Social Security, military retired pay or
survivor's benefits, or veterans' compensation, which exceeds the Social
Security minimum. With the elimination in 1981 of the minimum Social
Security benefit for new recipients, consistency demands that the paral-
lel minimum benefit under the Civil Service Retirement System also be
eliminated for annuitants whose annuities commence after enactment. Loy
annuities under the retirement program reflect brief service,low salaries,
.or both, and the recipients are not generally dependent solely. on Civil
Service Retirement benefits for support. ?
Exclusion of D.C. Government Employees
Currently, employees of the government of the District of -Columbia 'are
.covered by the Civil Service Retirement System, the ,Federal Employee0'
Group Life Insurance Program, ani the Federal Employees Health. Benefitg -
Program.. As a part of the ongoing effort, under the concept of home rule
for the District of Columbia, to disentangle Federal. .and District affairs,-
individuels hired by the government of the District of Columbia after.'
September -in, 1984, would be e-zcluded from the Federal retiraaent, lIfe
insurance, lAnd health benefia
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C.)
A BILL
o amend title 5, United States Code, to reform the Civil Service
Retirement System, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled, That this Act may-be cited as the
"Civil Service Retirement Reform Act of 1984".
Sec. 2. Chapter 83 of title 5, United States Code, is amended--
(1) in section 8331--
(A).by repealing paragraph (1)(G);
(B) by repealing peragraph:(1)(iv);
(C) An psragraph (4) by striking out -3". both times it
;and inserting in lieu thereof "5"; -
-(D) in paragraph (7) by striking out - the
District of Columbia -; and
(E) in paragraph (20)?
.(I) in subparagraph (B) by inserting "and" after the
,semicolon at the end thereof;
(ii) in subparagraph (C) by striking out "and": after the::
asemicolon at the end thereof; and
?(iii) by repealing subparagraph (D).;
(2) in section 8332(b) by repealing paragraph (9);
?
(3) in section 8334-7
ent of
. (A) in subsection (a)(1) hy:.nmending the firstesentenee to read
s follows:
.The employing agency shall deduct and withhold from the, basic pay
.tjf :an employee, a Congressional employee, a 'Member, a.law enforcement
:officer, a firefighter, a bankruptcy judge, and a judge of the United
States Court. of. Military Appeals, the appropriate percentage specified
In subsection (c) of this section."; and
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? :(13) hy a..efre
ding subsection (c) to read as follows:
"(c) Deduction s from the basic pay of each employee, Congressional
employee, Member, law enforcement officer, firefighter, bankruptcy judge,
judge of the United States Court of Military Appeals shall be made In
accordance with the following table. Each individual credited with
Hcivilian service after July 31, 1920, for which retirement deductions or
--deposits have-not been made, may deposit with interest an amount equal
to thefollowing per
of his basic pay received for that service:
."Percentage of.
basic pay
_Service period:
"Employee----------
August 1, 1920, to -June 30, 1926.
July 1, 1926, to June 30, 1942.'
July 1, 1942, to June 30, 1948..
July 1, 1948, to October 31, 1956.
61/2 ?nrc
1969.
7 Jenuary 1, 1970, to September 30,
- 1984.
8
October 1,1984, to September 30,
1985.
After September 30, 1985.
"Member or employee for
Congressional employee
service 21/,
31/
5
6 1/2
71/2
[To be determined b :Congress]
"Member for Member
service
2 1/
3 2
5--
6
7 I/2
[To be determined by Congress]
August 1, 1920, to June 30, 1926.
July 1, 1926, to June 30, 1942.
July 1,:1942, to June 30, 1948.
July 1, 1948, to October 31, 1956.
November 1,1956, to December 31,
1969. -
January 1, 1970, to September 30,
1984. :
After. September 30, 1984. -
-August 1;1920, to June 30, 1926.
July 1, 1926, to June 30, 1942.
July 1, 1942, to August 1, 1946.
August 2, 1946, to October 31, 1956.
November 1, 1956, to December 31,
1969.
January 1, 1970,, to September 30,
1984.
Aftereptember:30, 1984.
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"Law enforcement officer
for law enforcement
,service and firefighter
for firefighter
service.-
'Bankruptcy judge--
'Judge of the United
States Court of
Military Appeals for
service as a judge
of that court
2 V
3
2
5-
6
7
-3-
7 1/2
3
9
8
9
10
August 1,1920, to June 30, 1926.
1926, to June. 30, 1942.
1942, to June 30, 1948.
1948, to October 31, 1.956
November 1, 1956, to December 31,
1969.
January 1, 1970,
1974.
January 1, 1975,,
July
1,
July
1,
July
1,
1984,e_
'October-I, 1984,?
1985.
After September-30., 1985..
o December 31,
September 30,
o September
August. 1. 1920, to June 3O,T/926 -
to June 30-, 1942. -
to_June 30, 1943.
to October,31,:1956.-
Novembe 71, 1956,to December- 31,--
1969.
January 1970
1984
October 1, 1984, to September 30,
1985.
After September 30, 1985.
July
1, 1926,
July
1, 1942
July
1,-1948,
September 23, 1983, to September 30,
1984.
October 1, 1984, to September 30,
1985.
After September 30, 1985.--
(4) by amending section 8340(b) to read as followa:
"(b)(1) Except
as provided in paragraph (2) of tbi- subsection and
oubsections (c) and (g) of this section, effective December .1 of each year,
-each annuity having a commencing date not
be increased by the lesser of--
."(A) the overall
later than such December 1 shall
average percentage (as set forth in the report
-trammitted to,Congress under section 5305 of this title) of the
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1:6djustment in the rates of pay of the General Schedule taking effect
In the same fiscal year, adjusted to the nearest 1/10 of 1 percent
,(or zero, if no such adjustment is taking effect);.or
:-(B) the percent change in the price index for the calendar
quarter ending on September 30 of that calendar year over the price
Index for the same quarter of the preceding year, adjusted to the
Anearest 1/10 of 1 percent. For the purposes of this subparagraph,
the price index for a calendar quarter is the arithmetic'man
index 3 months compriaing.such quarter._
"(2)(A). In the case of an annuity payable
the Fund which exceeds ?
--thehase amount determined under subparagraph (B) of. this
that portion of the annuity which does not exceed the?base
:Increased by the percentage determlue,1 und-t paragTaph (1)
agranh, only
mount .shall be?
this s'?:)-
? and any portion of the annuity .which exceeds the baseamount shell
be increased by 55 percent of the percentage determined under paracfraph (1) ?
,;of-this subsection.
".(B) For the purpose of this paragraph, the base athount shall be--
-7.:(1) in calendar year 1984, $10,000; and
"(:ti) in each subsequent calendar year, the baaeamount for-the
preceding calendar year, increased by the percentage determined under
paragraph (1) of this subsection for the adjustment takingiaffect on._
-:.December 1 of such preceding calendar year,. ahrLround d to the-next
lowest dollar.".;
section 8341--
) ?in subsection (a)(0.--
(i) in subparagraph (A) by inserting after the semicolon
(Mlin:subparagraph '(B').bystr1k1ng out 7; or" at the end
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.thereof and inserting in lieu thereof a period; and
(ill) by repealing subparagraph (C) and the last two
sentences; and
(B) in subsection (e)(2)--
(I) in the first sentence by inserting a period in lieu
of the comma after "dies" and striking out-.the remainder of that
sentence;
(ii) in subparagraph (A) by striking out "a student
described or";
(ill) in subparagraph (B) by Striking out "unless he is
as ?
then such a student" and inserting
r the semicolon; and
(iv) by striking out subparagraphs (C) and (D) and .
redesignating subparagraph (E) as sub,paraqr:. h (C);
(6) in section 8345--
(A) in subsection (b)(2)--
Oft In subparagraph (A)- by striking. out "and" at
end thereof;
(10 in subparagraph (B) by inserting "and" -after the ?
semicolon; and
(iii) by inserting after subparagraph (B) the following
new subparagraph;
"(C) an employee ovlietber.ratiring-In the.flrBt3 days
of any month;"; and
(B) by repealing subsection (f); and
(7) by repealing section 8347(h).
Sect, 3. Chapter 87 of title 5, United States CDde,isamended--
(1) by repealing section 8701( )(5); and
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(2) in section 8716(h)--
(A) in paragraph (1) by Inserting "or" at the end thereof;
(B) by striking out paragraph (2); and
:(C) by redesignating paragraph (3) as paragraph -(2).
Sec. 4. Chapter 89 of title 5, United States Code, is amended--
(1)-in section 8901--
(A) by repealing paragraph (1)(E);. and
(B) in paragraph (2) by striking out "and
.f the District of Columbia"; and
(2) in section 8913(b)--
:(A) in paragraph (1) by inserting 'or' at:
(3) by striking out paragraph (2); and
(C) by redesignai:ing n ragr (3) as
:Sc. 5. -(a) Notwithstanding section 301(b)(1) of Public Law 97 253,
no cost-of-living adjustment may take effect under the Civil Service Retire-
t ie
gOverument
?nett System?-?during the fiscal year ending Septembe.3t30,.1984..
(b) Notwithstanding section 301(a) of Public Law. 97-2.53, the fiscal.?
,year 1985 cost-of-living adjustment under a Government retiremPnt system for
civilian employees, in the case of -s retired_ employee..or-,Member_Oho isunder
years of age on the effective date of such increase .(excepi-an'individual
,vhoae Tetirement is based on disability), shall be one-half of the increase
that would otherwise he provided such retired employee or 'Member under such
retirement-system.
(a).. Except as otherwise provided by this section, the amendments
udel5y.bectIon 2 of this'Act shall take effecton the date Of enactment -of
'thisHAct-
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'(b) The amendments made by section 2(1)(C) of this Act shall take
effect on October 1, 1987, and shall apply only to individuals who first
become eligible for immediate retirement under chapter 83 of title 5, United
'States Code, on or after that date.
(c) Notwithstanding section 8340(b) of title 5, United States Code, as
amended by section 2(4) of this Act, the percentage amount determined under:
'paragraph (1) of section 8340(b) for the annuity increase taking effect on
December 1, 1984, shall be determined solely on the basis of the percent
change determined under subparagraph (B) of that paragraph.
(d) Notwithstanding the amendments made by section 2(5) of this Act;
'an annuity being paid on the date of enactment
this Act to an individual-
,
described in section 8341(a)(4)(C) of this title, as that section existed
prior to the enactment of this Act, who ns
,..condary achool.
on thatdate, shall be continued without regard to those ?samendmentsAlati,1
- the- individual reaches age 22 or first ceases to be a- student.
(e) Notwithstanding the amendment made-by section 2(6)(B) of this. Act,-
'?no annuity may be reduced below the rate in effect onthesdate of enactment
sof this Act, by reason of that amendsdent.
(f)(1) 'The amendments made by sections 2(1)(A)-s(B), .2(1)(D)7(E),..2(2),
2(7) 3, and 4 of this Act shall take effect on October 1, 1984, and shall'
.apply to service performed on or after.that date..
(2) Notwithstanding paragraph ?-(1). of this .subsection, in the case of
;zany individual who is employed by the government of the District of Columbia
::on September 30, 1984, and whose employment is subject to subchapter III of
"chapter 83, chapter 87, or chapter 89 of title 5, UnitedStates Code,
-the provisions of such subchapter or chapters shall continue to apply as if -
the amendments enumerated In paragraph:(1). f this subsection had not .been
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-mbatted'so-long as such individual Is continuously employed by the govern-
Ament of the District of Columbia. For the purpose of this paragraph, an
individual who leaves such employment with the government of the District of
Columbla for 365 consecutive days or less, or an individual who leaves such
elmployment to perform full-time military service (including erVice In the
:National Guard or Reserve Fortes of the United States)_foraperiod exceeding_
r3E5co-, ecutive days and who exercises reeployrent rignts under chapter 43 of
tte 38, United States Code, shall he considered to he continUously-employed.
_
.,by the government of the District, of Columbia during .the
regardless of whether such brekit service beg
'Sept :ember 0, 198 .
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IC) SECTION-BY-SECTION ANALYSIL)
To accompany.a draft bill
''.Co rIv'end title 5, United States Code, to reform the Civil Service
kiRtirement System, and for other purposes."
The first section titles the bill as the "Civil Service Re
Act of 1984.-
Section 2 contains the various amendments to. chapter ?83 of
States Code,. designed to curtail unnecessary and. excessive
Civil Service Retirement benefits
with private sector practices.
and to bring the program.
irement Reform
title 5, United
expenditures for
closer into line
Paragraph (1) of section 2 amends section 8331(1)(0e.(1)(iv), 1(7), and (20) -
to exclude from the Civil Service Retirement System certain individuals who
are employed by the District of ColuMbia governmentelt also-amenda section ,
8331(4) to base Average pay (which As used as the base for computing -annuities)
on the highest earnings during five consecutive years of creditable service
rather than three.
Paragraph (2) of section .2 amends section 8332(b)eto eliminate retirement
credit for certain future service performed for the District of Columbia
c've-iment.
n
.Paragraph (3) of section 2 amends section 8334 by amending subsection (a)
to link employee deductionsand.employer contributions to the percentages
specified in subsection (c), and by emending subsection (0 to increase the
percentage rates for employee deductions and employer .contributions by 1.
'percent in each of the next 2 fiscaleyears. No Change la -specified by the
bill for the deductions or contributions for Members of Congress or
-Congressional employees.
- Paragraph (4) of section 2 amends ?section 8340(b) to make. cost-of-living. .
eadjustments effective December I of. each year, based on the lesser of the
,aversge. adjustment (including zero, if applicable) in General Schedule pay-
rates during the same fiscal year, or the Change in the Consumer Price
-Index (CPI) for the third quarter of the. calendar year. over the CPI for the
third quarter of the preceding calendar year. The amendments also provide
? - that the amount of any annuity exceeding a specifieclbase amount_ shall be. ?
-increased by only 55 percent of the cost-of-living adjustment otherwise -
'payable. The base amount in 1984 shall be $10,000, Vftich shall be increased
in each succeeding year by the percentage of the coat-of-living?adjustment
taking effect the preceding December.
-:Paregraph.(5) of section 2 amends section 8341 by amending subsections. (a)
(e) to eliminate survivor benefits for nondisabled children older than 18.
Paragraph .(6) of section 2 amends section 8345 by amending subsection (b)(2)
:to incorporate in title 5, United States Code, .a commencing date provision
.
:enacted as a part of Public Law 97-377, and by?repealing'sdbsection (f)
,4iselatng to minim-m Annuities.
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A-'aragraph (7) of section 2 amends section 8347 to delete subsection (h),
aconsistent with the exclusion of thefl government of the District of Columbia
:from the Retirement System.
Section 3 amends sections 8701(a)(5) and 8716(b) of title 5, United States
Code, to exclude from the Federal Employees' Group Life Insurance Program
certain individuals who are employed by the government of the District of
t:Columbia.
Section 4 amends sections 8901 and 8913(b) of title 5, United States Code,
to exclude from the Federal Employees Health Benefits program certain
individuals who are employed by the government of the District ofColumbia
'Section 5 provides in subsection (a) that there will be to cost-of-living
adjustment in Civil Service annuities in 1984.
Subsection (b) provides that, for nondisability ciVilian retiree who are
under 62 on the effective date of the 'iadjtistnent, the.cost-of-living odjust-:
meat taking effect in December 1984 -(payable January 1, 1985) shall be one
halfof the amount otherwise prescribed.
"Section 6 provides in subsection (a) that, except as otheiwise--proviZed by
thatsection, the amendments made by section 2 Of the Act ohell take effect
on the date of enactment of the Act,
Subsection (b) rovides that the amendTeots made by eattiot 2(1)(C) of th
.Act, concerning average pay, will take effect on October 1, 1987, and will
?apply only to individuals who first become eligible for immediate retirement
under Chapter 83 of title 5, United States Code, on or after that effective
'date.
Subsection "(c) "provides that the cost-of-living Ajustments
in December 1984 (payable January 1, 1985) will be based On
In. the CPI for the third quarter of calendar year 1984 Over
the third quarter of calendar year 1983, rather than on the
amount or the increase in General Schedule pay.
taking effect
the increase
the CPI for
lesser of this
Subsection (d) provides, notwithstanding the amendments Made by section
2(5) of the Act, for the continuation of benefits without regard to those
amendments for any post-secondary student receiving benefits on the date
of enactment until the student reaches age 22 or first ceases to be a
student.
Subsection (e) provides that no annuity may be reduced by reason of the
amendment made by section 2(6)(B) of the Act, concerning minimum annuities,
below the rate payable on the date of enactment of the Act.
Subsection (f) provides, in paragraph (1), that the amendments madeeby
sections 2(1)(A)-(B), 2(1)(D)-(E), 2(2), 2(7), 3, and 4 of the Act,
excluding the government of the District of Columbia from the Civil
Service Retirement System, the Federal Employees' Group Life Insurance
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(FICLI) Program, and the Federal Employees Bealth Benefits (FEHE) Pro-
gram, 'shall take effect on October 1, 1984, and shall apply to service
performed on or after that date. It also provides that, nowithstamding
paragraph (1), an individual who is employed by the government of the
District of Columbia on September 30, 1984, and who is covered by Civil
Service Retirement, FEGL1, or FEEMr, is treated as though the enumerated
amendments had not been enacted as long as the individual remains con-
tinuously employed. Leaving employment with the government of the
District of Columbia for 365 days or less, or leaving to perform full-
time military service and exercising reemployment rights under chapter
43 of title 38, United States Code, does not constitute a disruption: of
the continuous service, irrespective of whether the breakAiegins
on, or after September 30, 1984.
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