1988 FEDERAL PERSONNEL GUIDE AN ANNUAL PUBLICATION

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• Document Creation Date: December 23, 2016
• Document Release Date: January 14, 2013
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1988
FEDERAL PERSONNEL GUIDE
AN ANNUAL PUBLICATION
The FEDERAL PERSONNEL GUIDE is a useful, accurate, time-saving source of
valuable information on government organization, compensation, promotion,
retirement, insurance, benefits, and other important and interesting subjects for
Civil Service, Postal Service and all other employees of the federal government.
Executive Editor
LEE E. SHARFF
Managing Editor
SOL GORDON
Associate Editor
AL UNGERLEI DER
Published Annually by
FEDERAL PERSONNEL GUIDE
(a Division of Key Communications Group, Inc.)
Publisher of
FEDERAL PERSONNEL GUIDE
and
The FEDERAL PERSONNEL GUIDE WEEKLY NEWS UP. DATE
Post Office Box 274
Washington, D.C. 20044
[phone]
Copyright 1988
Copyright claimed for all new matter, selection,
arrangement, editing and modification
by
Key Communications Group, Inc.
Frank Joseph, President
All rights reserved
ISSN: 016-7665
Printed in U.S.A.
(For GSA quantity price discounts and ordering information contact our Government Sales Office at
[phone], or writeL P.O. Box 274, Washington, D.C. 20044.)
GSA Federal Supply Service Contract No. GS-01F-09686, Item No. 462-4F
FSC 76, Part 1?Publications
The Comptroller General has issued a ruling to the effect that periodicals such as the
FEDERAL PERSONNEL GUIDE can be purchased with appropriated funds.
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FOREWORD
This 1988 edition of the FEDERAL PERSONNEL GUIDE has more valuable and useful information for
the federal employee than ever before. This expanded edition has several pages of new material and
many sections have been extensively revised and updated to provide current data resulting from legisla-
tive or administrative actions. Theist session of the 100th Congress passed a number of bills which will
have major and lasting significance to government employees. However, a number of bills passed are not
entirely to the best interest of all federal employees and retirees. Many of these are contained in appropri-
ate sections of this tenth annual edition of the FEDERAL PERSONNEL GUIDE, once again making it the
most complete, accurate and interesting book of its kind.
We are, of course, more than happy with the exceptional growing response to our publication each
year. We have again added additional pages to include even more information for our readers, however,
we have kept our prices still less than any other government employee publication.
The detailed pay tables reflect not only deductions for federal income taxes and retirement contribu-
tions, but also the deduction for Medicare hospital coverage, and the FERS deductions which now are
required of each segment of federal workers. These tables also reflect the pay cap for senior officials,
SES and GM supervisors and managers. We have provided information as well as new rates for health
insurance and have again revised the Retirement chapter which continues to be the most detailed
explanation of this vital subject, including the new FERS integrated retirement system for hires since
December 1983 and transferees from CSRS. A review of the edge index on the back cover or the table of
contents will show the major subject matter covered.
The professional staff of FEDERAL PERSONNEL PUBLICATIONS has had extensive experience in
Federal employment and consulting. Sol Gordon the Managing Editor, has had over twenty years of
executive experience in Personnel and Administrative positions with the Federal Government and is the
editor of several reference books. Our Associate Editor, Al Ungerleider, has also had extensive govern-
ment service in administrative capacity for over 30 years. Their efforts in researching and editing the
material for this publication has again been exceptional and I wish to express my sincere gratitude and
appreciation to them and to our editorial assistant, Ken Skala.
In addition to having over twenty-five years experience with the Federal Government, which included
a tour of service in the Navy, and a variety of positions with the Treasury Department, Internal Revenue
Service, Civil Aeronautics Board and Social Security, I was the founder and managing editor of a very
successful civil service weekly newsletter, and for over 17 years published and edited an earlier version
of a reference volume for government employees. Having been involved for the past twenty-six years with
publishing a series of annual reference books for military personnel, lam needless to say gratified to be
involved in an endeavor which brings me into contact with many Government agencies and offices and
the many friends I have made throughout the years.
Although the FEDERAL PERSONNEL GUIDE is not an official publication of the United States Govern-
ment, the information contained herein has been obtained, for the most part, from official sources and is
as accurate as possible as of this writing. Many provisions, however, involve changes during this past
year by the 1st session of the 100th Congress and new OPM regulations.
We gratefully acknowledge the valuable assistance and cooperation of the many individuals and
agencies which have contributed their time and knowledge and suggestions to the development and
preparation of this book. In particular, we wish to thank many of the offices within the Office of Person-
nel Management; the Media Relations Office of the U.S. Postal Service; the Veterans Administration
Information Division; the Social Security Administration Press Office; the Department of Labor, the Inter-
nal Revenue Service and the many other government agencies and offices which have been so helpful.
We sincerely believe that the FEDERAL PERSONNEL GUIDE is the most interesting, informative and
useful reference book available for all Federal employees. We welcome comments and criticisms from
our readers so that we can further improve this publication. Our continuing objective is to provide the
finest possible product at the lowest possible cost to our audience. Your support will enable us to reach
this objective.
Lee E. Sharff
Executive Editor
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PERFORTANCE MANAGEMENT Isi D RECOGNITION
SYSTEM FOR SUPERVISORS AND MANAGERS
P.L. 98-615 of November 8, 1984 established a new pay for perform-
ance system for managers and supervisors in grades GS-13 through
GS-15 called the Performance Management and Recognition System
(PMRS). This law became effective on October 1, 1984 and terminates
after September 30, 1989. The new law also requires agencies to estab-
lish one or more performance appraisal systems for PMRS employees,
which must include five levels of performance?Fully Successful, two
levels above Fully Successful and two levels below Fully Successful, as
well as making several other modifications to the existing performance
appraisal statute for application to this group of employees.
Under the PMRS, employees rated at Fully Successful and above
receive the full comparability increase. Employees rated at one level
below Fully Successful, e.g., Minimally Successful, receive one-half of
comparability, while employees who receive ratings at two levels below
Fully Successful, e.g., Unacceptable, get no comparability increase.
The PMRS also provides for increases to base pay in the form of equiv-
alents to Within-grade Increases, called Merit Increases, which are
based on the level of performance of the employee. Employees whose
base pay is in the first third of the rate range for their grade and whose
rating is Fully Successful or above receive the dollar equivalent of a full
Within-Grade Increase (WGI). Employees whose base pay is in the top
two-thirds of the rate range for their grade (i.e., at step 4 or above in the
General Schedule) receive all or a part of a Within-Grade Increase based
on their level of performance as follows:
? An employee with a rating of Fully Successful receives the dollar
equivalent of one-third of a WGI.
? An employee with a rating two levels above Fully Successful (e.g.,
Outstanding) gets the dollar equivalent of a full WGI;
? An employee with a rating one level above Fully Successful (e.g.,
Exceeds Fully Successful) gets the dollar equivalent of one-half of
a WGI;
An Employee whose performance is rated at either of the two levels
below Fully Successful and, therefore, receives no merit increase may
be paid at a rate less than the minimum of the grade of the employee's
position.
In addition to Merit Increases, employees rated Fully Successful and
above are also eligible to receive lump sum performance awards. Em-
ployees rated two levels above Fully Successful must receive an award
of not more than 10 percent of base pay and not less than 2 percent.
However, for these employees the head of the agency can make a deter-
mination to give a performance award of up to 20 percent of base pay for
"unusually outstanding performance". Performance awards are not
required, but rather, are optional with the agency for employees rated at
Fully Successful or one level above Fully Successful. Such awards may
not be more than 10 percent of base pay with no specified minimum.
The PMRS requires that agencies spend a minimum of .75 percent of
payroll for covered employees in FY 85, such amount increasing incre-
mentally to 1.15 percent of payroll in FY 89. Agencies may spend up to a
maximum of 1.5 percent of payroll for covered employees in any fiscal
year. With OPM approval agencies with 20 or fewer covered employees
can spend up to 10 percent of payroll in order to provide appropriately
sized performance awards for its PMRS employees.
The Performance Management and Recognition System also pro-
vides for a cash award program, in addition to the performance awards,
that agencies may use to recognize superior performance, suggestions,
inventions, and special acts or services.
PAY
There are various pay systems used by the Federal Government cover-
ing over 3.0 million employees in the Executive Branch, approximately 40
thousand employees in the Legislative Branch, 16 thousand in the Judi-
cial Branch, and additional part time employees not categorizied here.
The following pay systems are the most commonly used by the Govern-
ment:
1. General Schedule (GS) Salaries are based on equal pay for equal
work, with differences in pay based on differences in work and perfor-
mance, and comparability to the salaries that private employers pay for
work at the same level of difficulty and responsibility. The levels of pay
range from $9,811 to $72,500 per annum and apply to 1,478,000
employees. Further details and computerized pay tables are provided
following this chapter.
2. Postal workers are classified in a number of categories by function,
with different pay schedules in each group. These are covered in consid-
erable detail in the Postal Service section, including pay tables of the
major classifications. The U.S. Postal Service is an independent estab-
lishment within the Executive Branch of Government and has over
750,000 employees.
3. Prevailing Rate Employees, commonly referred to as "blue collar"
workers, have their pay based on the prevailing rates on an area basis.
This pay system covers trade, labor, and other blue collar jobs. There are
about 135 areas considered. These are hourly rate employees who
receive annual wage raises based on a review of comparability pay by
area. Each area pay scale is divided into three classes: WG (employee);
WL (lead employee); WS (supervisor). The WG and WL classes of pay
rates each have 15 grades with 5 steps. The class and grade level require
the approval of OPM. There are almost 423,094 workers in this category
and most are employed by the Department of Defense.
4. Nonappropriated Fund Instrumentalities (NAFI) employees are, for
the most part, employed by the Department of Defense in exchanges,
clubs, commissaries, recreation activities and other patron or technical
services. Although structured along GS and WG lines, these employees
are paid from funds derived from sales and services performed rather
than from appropriated tax dollars. There are approximately 140,000
NAFI employees. Those in the crafts and trade specialities have salaries
established by area comparability reviews as do blue collar employees,
administrative support and patron service employees while those in the
Universal Annual (UA) or professional/managerial fields parallel General
Schedule employees in grades GS-6 through GS-18.
5. Executive Schedule, Level I thru Level V, includes payable salaries
from $72,500 thru $99,500?which are currently in effect. These salaries
are assigned to members of the Cabinet, Deputy Secretaries, Under
Secretaries, various officials of the Commissions and Regulatory Boards,
and many others in the Administrator and Director classifications. See
listing of top salaries in this chapter.
6. Department of Medicine and Surgery of the Veterans Administra-
tion (DM&S) is a special pay schedule for physicians, dentists, and
nurses which, in many classifications, parallels the GS ratings but at the
higher levels is above those ratings. The DM&S salary schedule includes
a total of more than 13,000 doctors and dentists and some 35.000 nurses.
Pay schedule for this classification is included in this pay chapter.
7. Foreign Service Schedule pertains to approximately 13.000 mem-
bers of the above classifications as a separate pay schedule for these State
Department employees. These pay tables are also shown in this chapter.
GARNISHMENT
GARNISHMENT?COMPLIANCE WITH COURT ORDERS
Section 659 of title 42, U.S. Code (Public Law 93-647, January 4, 1975),
authorized the garnishment of federal and postal employee salaries and
retirees' annuities and Social Security benefits, to en force obligations of
alimony and child support. While it should be noted that PL 93-647 did
not preempt State or local law regarding the bringing of civil actions to
enforce support and maintenance obligations, Congress did amend the
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law on May 23, 1977 (PL 95-30), to set maximum limitations on the percen-
tage of the payment which would be subject to garnishment. The limits
are based on the individual's aggregate dispos able earnings which would
include all pay, pensions, disability compensation, etc., received from
any agency of the Federal government. The limits allow garnishment of
government earnings of no more than: (1) Fifty percent of disposable
earnings if the individual is supporting a second family; (2) Sixty percent
of disposable earnings if the individual is not supporting a second family;
or (3) an additional five percent of each of the above if the individual is in
arrears for more than 12 weeks.
The garnishment order or similar legal process should name the agen-
cy as the garnishee and state on its face that it is to enforce an obligation
to provide child support or to make alimony payments. In the case of
retired civil service employees, the garnishment order should be sent by
certified or registered mail, return receipt requested, to the Office of Per-
sonnel Management's Allotments Section, Box 17, Washington, DC
20044. Court costs and attorney's fees can also be deducted if the court
order directs such action. An individual attempting to have such a court
order reversed must assume any costs involved in such an action.
Legal process involving military personnel, either active, or retired,
should be similarly delivered to the finance center of the particular mili-
tary branch or department
Section 8345(j) of title 5, U.S. Code (PL 95-366, September 15, 1978),
authorized OPM to comply with the terms of a court decree, order or
property settlement in connection with the divorce or legal separation of
an individual who is eligible for benefits under the civil service retirement
system. Civil service retirement benefits must be specifically divided by
divorce decree or court order to qualify for payment under this law.
GENERAL SCHEDULE (GS) SALARIES
The salary rates included in these tables are those established by the
President under Section 5305 of Title 5, US Code, and Executive Order
for rates effective with the first pay period after January 1, 1985.
To compute the biweekly pay, the annual rate has been divided by
2,087 (hours per year) and the result adjusted to the nearest cent, count-
ing one-half cent and over as a whole cent, to derive an hourly rate. The
hourly rate has been multiplied by 80 to derive at the biweekly pay. If a
daily rate is required, it is derived by multiplying the hourly rate by the
number of daily hours of service. Effective since 1984 a rounding down
adjustment is made in all retirement computations.
NOTE: Since October 1,1985, the 2080 hours per year have been used.
However, legislation is in process to make the 2087 hours per year perma-
nent and is expected to be passed by Congress in early 1986.)
STEP INCREASES
Chapter 53, Title 5, U.S. Code authorizes within-grade step increases
after certain waiting periods at various grades. Employees who have not
reached the highest step for his/her position are generally advanced to
the next step following completion of the required period of satisfactory
service provided no equivalent increase was received during the period.
The required waiting periods are as follows:
FROM STEP
TO STEP
WEEKS
1
2
52
2
3
52
3
4
52
4
5
104
5
6
104
6
7
104
7
8
156
8
9
156
9
10
156
These waiting periods apply to all GS employees except supervisors
and managers in grades GS-13 through GS-15 of the General Schedule
who do not receive step increases, but are considered under the Perform-
ance Management and Recognition System discussed in a separate
chapter.
Page 16
PROMOTION PA
When an employee not covered by the Performance Management
and Recognition System is promoted or transferred from a position in
one grade of the General Schedule to a position in a higher grade of the
General Schedule, he or she is entitled to basic pay at a rate not less than
two step-increases (within-grades) above the employee's basic rate of
pay. In other words, a GS-4, steps must receive, as a minimum, the pay
of a GS-4, step 7 upon promotion to GS-5. Using the January 1, 1988 pay
tables, for example, the rate of pay for a GS-4, step 5 is $15,313. The pay
for a GS-4, step 7 is $16,213. Since the GS-4, step 7 pay falls between the
pay for a GS-5, step 3 ($16,126) and GS-5, step 4 ($16,630), the promoted
individual should receive the higher of the two amounts or $16,630.
When a General Schedule employee not covered by the Performance
Management and Recognition System is promoted to a position in which
he or she will be covered, the employee's pay will be adjusted as if he or
she were a General Schedule employee not covered by the Performance
Management and Recognition System. When a promotion occurs within
the Performance Management and Recognition System, the employee's
rate of basic pay will be increased by six percent (or to the minimum rate
of the grade, if that is higher). When an employee covered by the Per-
formance Management and Recognition System is promoted to a Gen-
eral Schedule position in which he or she will not be covered, the employ-
ee's rate of basic pay will be increased by six percent and then fixed at
the rate for the lowest step of the grade that equals or exceeds that rate.
PERFORMANCE MANAGEMENT AND RECOGNITION SYSTEM
(PRMS) (Formerly MERIT PAY)
A detailed discussion of PRMS is given in a separate chapter.
PREMIUM PAY
Overtime is paid in accordance with 5 USC 5542 at the hourly rate of
11/2 times the regular hourly rate of basic pay where the basic annual sal-
ary is $25,226 or less. Where basic annual rate exceeds $25,226 (GS-10,
step 1), the overtime hourly rate shall be $18.13. No overtime pay entitle-
ment exists for those employees with thetotal additional pay (night differ-
ential pay, overtime pay, premium pay on an annual basis, and pay for
Sunday and holiday work) for any period that it exceeds the maximum
payable ratefor GS-15 (currently, $71,337 per year or $2,736 per bi-week-
ly pay period). No premium payments or compensatory time off may be
granted to employees whose rates of basic pay for any pay period are
more than the maximum rate for GS-15.
Administrative Uncontrolled Overtime (AUO) pertains to law enforce-
ment, protective, and certain others. AU0 earnings are not considered
in retirement computations, or are COLAs for Alaska and overseas types
of assignments.
Sunday Work is paid an additional 25 percent of the basic pay rate to
full time employees when a regularly scheduled work week includes
Sunday.
Holiday Pay is for duty on designated Federal Holidays if they fall with-
in the designated workweek, and shall be paid at twice the employee's
rate of basic pay.
Night Differential of 10 percent is paid to employees for work between
6 p.m. and 6 a.m. if the regular tour of duty, or any part of it, falls between
those hours.
Compensatory Time?See Leave chapter.
SPECIAL SALARY RATES?An Overview
Special salary rates for General Schedule positions have been author-
ized since 1955. The statutory authority for special salary rates (higher
minimum rates) is found in 5 USC 5303. Executive order 11721 delegates
to OPM the President's authority to establish special salary rates.
Special salary rates may be authorized when significant staffing (i.e.,
recruitment and/or retention) problemsare caused by substantially high-
er non-Federal pay for comparable levels of work. Once established,
each special schedule is reviewed at least annually and adjustments
made as warranted by the existing labor market conditions and agency
staffing needs. As of October 1987, there were 94 total special rate
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authorizations covering sorrill,000 General Schedule positions. The
largest single category of coverage is for special engineers, accounting
for 55% of the special rate authorizations.
Also included in substantial numbers under special pay are certain
medical personnel as well as secretaries, clerk typists, and a number of
other clerical positions in grades 2 to 5 in many metropolitan centers
where the help shortage exists. Within-grade increases are also adjusted
for these categories.
DEDUCTIONS
Retirement, Medicare and Social Security. Section 8334 of Title 5,
USC, provides for withholding of 7 percent of the basic salary of employ-
ees under the Civil Service Retirement System (CSRS). This applies to all
employees hired prior to January 1, 1984, except for those that switched
to the new Federal Employees Retirement System (FERS). Basic salary
does not include bonuses, allowances or overtime pay, except for prem-
ium and standby pay of law enforcement officers for administratively
uncontrollable overtime (AUO). An additional deduction of 1.45 percent
is taken for medicare coverage, which in total area deduction of 8.45 per-
cent for CSRS and FERS.
Public Law 98-21 provided that all employees hired on or after January
1, 1984 would be subject to Social Security withholding. The Federal
Employees Retirement System (FERS) established by P.L. 99-335 also
required withholding for a portion of the basic annuity component of
FERS with a rate for 1988 of .94 percent.
The 1.45 percent medicare deduction for CSRS employees and the
7.51 percent Social Security withholding for FERS employees is applied
only to the first $45,000 of salary for 1988.
Federal Employees Group Life Insurance deduction is covered in
detail in a later chapter in this book. However, the minimum Basic insur-
ance coverage is $10,000, and the maximum is $80,000, the insurance
amount payable for Level II under the Executive Schedule. Insurance
deductions for any optional insurances are not taken into account in the
pay tables presented herein. The cost to the individual is 18.5 cents per
thousand dollars of Basic insurance coverage per biweekly pay period.
The Executive Branch
Senior Officials
The President Ronald W. Reagan
The Vice President George Bush
Secretary of State George P. Shultz
Secretary of Treasury James A. Baker Ill
Secretary of Defense Frank Carlucci
Attorney General Edwin Meese III
Secretary of Interior Donald P. Hodel
Secretary of Agriculture Richard Lyng
Secretary of Commerce C. William Verity
Secertary of Labor Ann McLaughlin
Secertary of Health & Human Services Otis Bowen
Secretary of Housing Samuel R. Pierce, Jr.
Secretary of Transportation James H. Burnley
Secretary of Energy John S. Herrington
Secretary of Education William J. Bennett
Chief of Staff to the President Howard H. Baker, Jr.
Directorof Office of
Management & Budget James C. Miller III
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Federallime Taxes are withheld in accordance with current with-
holding requirements by the Internal Revenue Service. Withholding of tax
on lump sum payments is prescribed to be a flat 20 percent rate. A tax
computation of the withholding method used by the government is illus-
trated in the Income Tax section.
Medicare Tax Deduction of 1.45% is effective on all wages paid to
CSRS covered employees. FERS covered employees are subject to the
full Social Security deduction of 7.51 percent, which includes Medicare.
The deduction for 1988 apply to only the first $45,000 of salary. (This
deduction has been provided for in Section 278 of PL 97-248, September
3, 1982, The Tax Equity and Fiscal Responsibility Act of 1982.)
State, Territorial, City and District of Columbia Income Tax Withhold-
ing is treated under Sections 5516, 5517 and 5520 of Title 5, USC and P.L.
95-365 of 1978, for those tax jurisdictions which have entered into special
agreements with the Treasury. These sections also spell out the applica-
tion of withholding for those who live and work in a taxing jurisdiction,
those who commute from another taxing jurisdiction, and also to be
considered as mandatory are reciprocity between taxing jurisdiction
where employees commute.
See the Chapters on Retirement and Social Security for additional
details regarding these deductions.
LEGAL HOLIDAYS
The Federal government has established the following legal public
holidays:
New Year's Day
1988 SCHEDULE
Friday January 1
Martin Luther King, Jr.'s Day
3rd Monday in January
President's Day
3rd Monday in February
Memorial Day
1st Monday in May
Monday January 18
Monday February 15
Monday May 30
Independence Day
Monday July 4
Labor Day
1st Monday in September
Columbus Day
2nd Monday in October
Monday September 5
Monday October 10
Veterans Day
Friday November 11
Thanksgiving Day
4th Thursday in November Thursday November 24
Christmas Day Sunday December 25
For a federal employee whose work week is Monday through Friday, when a
legal holiday occurs on Saturday, the Friday before is the employee's day off in lieu
of the holiday.
For a federal employee who is not scheduled to work on Sunday and the legal
holiday falls on Sunday, the next workday is the employee's day off in lieu of the
holiday.
For employees whose workweek is other than Monday through Friday, when the
holiday occurs on a nonworkday which is not a day that has been designated as
the employee's day off in lieu of the Sunday, the workday immediately before that
day is the day off in lieu of the holiday.
Employees whose work schedule is not in the above categories should consult
with their supervisor or the personnel office to clarify their holiday schedule.
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EXECUTIVE, LEGISLATIVE AND JUDICIAL SALARIES
January 1988
Position
Current
Salary
President of the United States $200,0001
Vice President of the United States 115,000
Members of the Senate 89,500
Members of House of Representatives including
the Resident Commissioner from Puerto Rico and the Delegates
from the District of Columbia, Guam, and the Virgin Islands 89,500
Speaker of the House of Representatives 115,000
President pro tempore of the Senate 99,500
Majority and minority leaders of the Senate and the
House of Representatives 99,500
Other offices in the legislative branch:
Comptroller General of the United States 89,500
Deputy Comptroller General of the United States 82,500
General Counsel of the United States General
Accounting Office 77,500
Librarian of Congress 82,500
Public Printer 77,500
Architect of the Capitol 82,500
Chief Justice of the United States 115,000
Associate Justices of the Supreme Court 110,000
Judges, Circuit, U.S. Court of Appeals 95,000
Judges, Court of Military Appeals 95,000
Judges, District Courts 89,500
Judges, Court of International Trade 89,500
Judges, Bankruptcy Court 72,500
Other offices in the judicial branch:
Director, Administrative Office of the
United States Courts 89,500
Deputy Director, Administrative Office of the
United States Courts 72,500
Judges, United States Claims Court 82,500
Offices and positions under the Federal executive salary schedule in
subch. 11 of ch. 53 of title 5 of the United States Code:
Level I 99,500
Level II 89,500
Level III 82,500
Level IV 77,500
Level V 72,500
Governors, Board of Governors, U.S. Postal Service 10,0002
'Plus $so 000 ortfciai expense ana up to $100.0130 tram atiowance. effective Nov 2. 1978
'Pius MO per day pros u aye! artowance tor eau, meeting up to 30 per year
PAY SCHEDULES FOR THE DEPARTMENT OF MEDICINE
AND SURGERY OF THE VETERANS ADMINISTRATION
January 1988
Position Minimum Maximum
Chief Medical Director Single rate $97,2061
Deputy Chief Medical Director Single rate 93.2482
Associate Deputy Chief Medical Director Single rate 89.314*
Assistant Chief Medical Director Single rate 86.782*
.Medical Director $73,958* 83.818*
Director of Nursing Service 73,958* 83.818*
Director of Podiatric Service 64,397 79.975*
Director of Chaplain Service 64,397 79.975*
Director of Pharmacy Service 64,397 79.975*
Director of Dietetic Service 64,397 79.975*
Director of Optometric Service 64,397 79.975*
PHYSICIAN AND DENTIST SCHEDULE**
Director Grade 64,387 79,975*
Executive Grade 59,462 77,300*
Chief Grade 54,9073 71,3773
Senior Grade 46,6793 60,6833
Intermediate Grade 39,5013 51,3543
Full Grade 33,2183 36,0323
Associate Grade 27,718 36,032
NURSE SCHEDULE
Director Grade 54,907 71,377
Assistant Director Grade 46,679 60,683
Chief Grade 39,501 51,354
Senior Grade 32,218 43,181
Intermediate Grade 27,716 36,032
Full Grade 22,907 29,783
Associate Grade 19,713 25,626
Junior Grade 16,851 21,409
'Basic Pay is limited by section 5308 of title 5 of US Code to the rate of level V of the Executive
Schedule, with rate payable of $72,500.
"Physicians are eligible in certain locations for "special pay" which is over and above basic pay, in
amounts up to $22.500 perannum. A "special" pay of up to $10,000 also pertainsto dentists under sim-
ilar shortage conditions. Nurse salary rates may be higher in certain geographical areas because of
local market conditions.
1Basic Pay is limited by section 5308 of title 5 of US Code to the rate of level III of the Executive Sched-
ule, with rate payable of $82,500.
2Basic Pay is limited by section 5308 of title 5 of US Code to the rate of level IV of the Executive Sched-
ule, with rate payable of $77,500.
3These rates also pertain to podiatrist and optometrist; Chief, Senior, Intermediate, Full Grade and
Associate-the upper five grades, the same as Nurse Schedule.
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CURRENT ANNUAL SALARY RATES
General Schedule* - January 1988
Longevity Steps
1
2
3
4
5
6
7
8
9
10
_
Grade GS 1
$ 9,811
$10,139
$10,465
$10,791
$11,117
$11,309
$11,631
$11,955
$11,970
$12,275
2
11,032
11,294
11,659
11,970
12,103
12,459
12,815
13,171
13,527
13,883
3
12,038
12,439
12,840
13,241
13,642
14,043
14,444
14,845
15,246
15,647
4
13,513
13,963
14,413
14,863
15,313
15,763
16,213
16,663
17,113
17,563
5
15,118
15,622
16,126
16,630
17,134
17,638
18,142
18,646
19,150
19,654
6
16,851
17,413
17,975
18,537
19,099
19,661
20,223
20,785
21,347
21,909
7
18,726
19,350
19,974
20,598
21,222
21,846
22,470
23,094
23,718
24,342
8
20,739
21,430
22,121
22,812
23,503
24,194
24,885
25,576
26,267
26,958
9
22,907
23,671
24,435
25,199
25,963
26,727
27,491
28,255
29,019
29,783
10
25,226
26,067
26,908
27,749
28,590
29,431
30,272
31,113
31,954
32,795
11
27,716
28,640
29,564
30,488
31,412
32,336
33,260
34,184
35,108
36,032
12
33,218
34,325
35,432
36,539
37,646
38,753
39,860
40,967
42,074
43,181
13"
39,501
40,818
42,135
43,452,
44,769
46,086
47,403
48,720
50,037
51,354
14"
46,679
48,235
49,791
51,347
52,903
54,459
56,015
57,571
59,127
60,683
15**
54,907
56,737
58,567
60,397
62,227
64,057
65,887
67,717
69,547
71,377
16
64,397
66,544
68,691
70,838
72,985
73,660'
75,765'
77,870"
79,975*
17
73,968'
78,423*
78,888'
81,353'
83,818*
18
86,682'
*Basic pay is limited by section 5308 of title 5 of the United States Code to the rate for level V of the Executive Schedule. Limited to $72,500.
"Merit pay for GS 13/15 managers and supervisors will get a GM rather than GS designation. For Merit Pay see chapter under heading of Performance
Management and Recognition System (PMRS) which was established by P.L. 98-615, dated November 11, 1984.
In accordance with Executive Order No. 12622 of December 31, 1987, GS pay from Grade 16 step 6 thru Grade 18 were not subject to
the 2 percent increase and remained at prior amounts as shown. However, they are still capped at $72,500. This is not reflected in our
detailed take-home pay tables which follow.
FOREIGN SERVICE PAY SCHEDULE
Annual Salaries - January 1988
Class
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
Step 9
Step 10
Step 11
Step 12
Step 13
Step 14
1
$54,907
$56,554
$58,251
$59,998
$61,798
$63,652
$65,562
$67,529
$69,555
$71,377
$71,377
$71,377
$71,377
$71,377
2
44,491
45,826
47,201
48,617
50,075
51,577
53,125
54,718
56,360
58,051
59,792
61,586
63,434
65,337
3
36,051
37,133
38,247
39,394
40,576
41,793
43,047
44,338
45,668
47,038
48,450
49,903
51,400
52,942
4
29,213
30,089
30,992
31,922
32,879
33,866
34,882
35,928
37,006
38,116
39,260
40,438
41,651
42,900
5
23,671
24,381
25,113
25,866
26,642
27,441
28,264
29,112
29,986
30,885
31,812
32,766
33,749
34,762
6
21,161
21,796
22,450
23,123
23,817
24,531
25,267
26,025
26,806
27,610
28,439
29,292
30,171
31,076
7
18,917
19,485
20,069
20,671
21,291
21,930
22,588
23,266
23,963
24,682
25,423
26,186
26,971
27,780
8
16,911
17,418
17,941
18,479
19,033
19,604
20,193
20,798
21,422
22,065
22,727
23,409
24,111
24,834
9
15,118
15,572
16,039
16,520
17,015
17,526
18,052
18,593
19,151
19,726
20,317
20,927
21,555
22.201
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Declassified and Approved For Release 2013/01
Under the modified benefit formliPthe first level of earnings is not
multiplied by 90 percent. It will eventually be multiplied by only 40 per-
cent. Following is the schedule of first level percentage changes.
Year You Reach Age 62
of Become Disabled
First Level
Percentage
1986
80%
1987
70%
1988
60%
1989
50%
1990 or later
40%
The Windfall Elimination Provision affects an employee's benefit
more if he or she has 25 years or less of substantial Social Security cover-
age. The reduction in the Social Security benefit because of the Windfall
Elimination Provision will in no case be greater than one-half of the por-
tion of the pension from employment not subject to Social Security taxes.
For additional information ont he Windall Elimination Provision, see
the Chapter on Social Security.
Cost-of-living adjustments equal the annual percent change in the CPI
(determined the same as under CSRS) minus 1 percent. However, if the
CPI change is less than 3 percent, the COLA will be the lesser of the CPI
change or 2 percent.
Increase in CPI
Annual COLA
Percentage
Up to 2%
2% to 3%
3% or more
Same as CPI increase
2%
CPI increase minus 1%
The Special Retirement Supplement for retirees is not increased by
COLAs; the Supplement for survivors is increased by COLAs.
COLA's are payable to all those retiring under special provisions for
law enforcement officers, firefighters, air traffic controllers, military
reserve technicians who are disabled after reaching age 50 and com-
pleting 25 years of service, special CIA personnel and Foreign Service
members, as well as to all disability and survivor annuitants, except chil-
dren. COLA's are payable to other retirees only if they are at least age 62.
An annuitant's first COLA is prorated, as under CSRS.
Payout Options. FERS Basic Annuity Plan benefits are generally paid
in the form of an annuity. An immediate or deferred annuity, with or with-
out survivor benefits, is payable at retirement or disability. Non-disabled
retirees may withdraw their own contributions in a lump sum and receive
a reduced annuity. Married retirees must have the consent of their spouse
to obtain the lump sum payment. Individuals taking the lump sum option
will receive an amount equivalent to their total contributions to the retire-
ment fund. Their annuity will then be reduced according to an actuarial
table used by OPM. If an employee is separating from federal service
and is eligible for a deferred annuity, an employee may elect a fixed term
annuity or transfer the funds to an IRA account. If the employee is sepa-
rating and is not eligible for a deferred annuity, the funds may be trans-
ferred to an IRA account, but a lump sum withdrawal is not authorized.
In the event of an employee's death, all funds are paid to eligible survi-
vors or beneficiaries.
LUMP SUM WITHDRAWAL
. Under the provisions of the legislation establishing the new Federal
Employees Retirement System (FERS), a "lump-sum" withdrawal option
was enacted. Retirees electing this option at retirement would receive a
lump-sum amount based on their own contributions to the retirement
fund and a reduced monthly annuity. The annuity would be reduced by
8 to 10 percent to account for the value of the lump-sum payment of
career contributions at retirement.
NOTE: A temporary change to the lump-sum pension payment provisions
was effective January 1, 1988. Under this rule, any employee planning to
retire prior to October 1989 who wants to take the lump-sum option, will
/14: CIA-RDP90-00530R000200340004-4
receive only 6011int of the lump-sum payment in 1988 and the remaining
40 percent, plus interest, in 1989.
The Office of Personnel Management has established a formula for
computing the amount of the reduced annuity for those electing the
lump-sum withdrawal.
To calculate the reduction in the annuity, you must know:
1. the amount you have contributed to your retirement account,
2. the amount of your monthly annuity, and
3. the "present value factor" for your age.
PRESENT VALUE FACTORS AS OF OCT. 1, 1987
Age
Factor
Age
Factor
50
251.3
58
204.9
51
245.1
59
199.0
52
239.9
60
194.1
53
234.2
61
189.5
54
228.5
62
182.3
55
222.2
63
176.4
56
216.2
64
169.9
57
210.5
65
163.6
In order to determine the amount of reduction in your annuity, divide
your total retirement contribution by the "present value factor" above for
the age you retire; subtract the result from your monthly annuity and the
answer is the reduced annuity amount after withdrawing your lump-
sum amount.
For example, a retiree, age 62 with retirement contributions of $24,000
and a monthly annuity of $1,100 would divide $24,000 by 182.3 (present
value factor for age 62) and get 132. Subtracting 132 from $1,100 equals
$968, the reduced annuity amount.
Under current tax rules, the lump-sum contribution, if taken, will be
subject to federal income tax (and possibly state tax) on a prorated
basis. This taxation of a previously tax-free option, makes the lump-sum
option less attractive. The lump-sum withdrawal provision also applies
to employees retiring under FERS.
The OPM regulations on "lump-sum" withdrawals include the follow-
ing additional conditions:
? Workers who are married at the time of retirement must obtain
written, notarized consent from their spouses in order to make
"lump-sum" withdrawals.
? Workers are barred from taking the "lump-sum" option if an exist-
ing divorce decree stipulates that a former spouse is entitled to a
full survivor annuity.
? Workers who take disability retirements cannot use a "lump-sum"
withdrawal option.
THRIFT SAVINGS PLAN COMPONENT
One of the more significant features of FERS is the opportunity for
employees to participate in the Thrift Savings Plan. This voluntary,
optional, defined benefit plan permits employees to conthbute up to 10
percent of salary (limited to $7,000 annually) to a tax-deferred savings
plan. The government matches the employee contribution up to a max-
imum of 5 percent of salary. CSRS covered employees may also partici-
pate in the Thrift Savings Plan, however their participation is limited to
only 5percent of salary and with no matching government contribution.
Contributions:
Employees may contribute up to 10 percent of basic pay each year.
The Executive Director of the Thirft Board is required to provide an
"open season" every 6 months at which time employees may start or
change contributions. Contributions may be terminated at any time. A
new employee cannot elect to participate until the second ''open sea-
son" following his coverage under FERS. An employee who stops his
contributions cannot start again until the second "open season" after he
stopped. Individuals covered by CSRS who elect to transfer to FERS
may elect to contribute to the Thrift Plan during an election period begin-
ning on the effective date of their election to become subject to FERS.
Agencies contribute 1 percent of pay for each employee who is eli-
gible to participate in the Thrift Plan, regardless of whether or not that
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employee elects to contribute. IIP percent employer contribution,
and earnings attributable to it, are forfeited if the employee leaves Gov-
ernment service within 3 years, or 2 years in the case of noncareer SES
members, employees under the Executive Schedule, excepted ap-
pointees in confidential or policy-making positions, Members of Con-
gress, or Congressional employees.
In addition to the 1 percent contribution, for contributing employees,
agencies match the full employee contribution up to 3 percent of pay,
and half of the employee contribution exceeding 3 percent but not
exceeding 5 percent of pay.
Employee Contribution
Government Contribution
First 3% of pay
$1.00 for $1.00
Next 2% of pay
$ .50 for $1.00
Next 5% of pay
-0-
CSRS Participants. Employees covered by the CSRS who elect to
participate in the Savings Plan, may contribute up to 5% of pay. These
funds may only be invested in the Government Securities Fund. This
money will not be matched by the government.
Tax Status of Contributions Funds contributed by employees and by
the government (including investment income from those contri-
butions) are "sheltered" from federal taxes as are funds invested under
section 401(k) plans. Such funds are not subject to taxes until withdrawn
at retirement or death or if the employee becomes disabled or leaves
federal service after being vested in the basic annuity component of
FERS.
An employee earning $30,000, for example, may contribute $3,000
(10%), and the government would match 5 percent or $1,500. The em-
ployee would be taxed on only $27,000 ($30,000 salary less $3,000 in
contributions) and only that amount would be reported for federal tax
purposes. The $4,500 in contributions plus accumulated interest or
dividends would not be taxed until withdrawn.
Employees leaving federal service before being vested, can only with-
draw from the Thrift Savings Plan by rolling the amount over into an IRA
or similar plan.
Vesting. Employees have immediate rights to contributions made to
the Thirft Savings Plan except for the automatic 1 percent government
contribution. The automatic 1 percent government contribution
becomes vested after three years of service for career employees and
after two years of service for non-career SES members, political appoin-
tees, Members of Congress and Congressional staff members.
Investing in the Thrift Savings Plan. Employees may elect to invest in
one or all of three investment funds. The funds differ in the rate of return
and amount of risk involved. The amount and type of investment can be
changed up to twice a year during "open seasons". Following are the
three types of funds established:
? Government Securities Investment Fund
This fund consists of special-issue securities guaranteed by the
United States Government. During the first five years of FERS, all
government contribuitions and a portion of the employee's contri-
butions must be held in government securities. CSRS employees
who participate in the Thrift Savings Plan will have all of their
contributions invested in government securities.
Any money for which a fund is not designated will be invested in
the Government Securities Fund.
? Fixed Income Investment Fund
This fund is designed to emphasize protection of your savings
while providing an attractive rate of return. Your money will be
invested in Guaranteed Investment Contracts (GICs), bank certifi-
cates of deposit or other private sector securities. These invest-
ments provide a fixed rate of return for a specified period of time.
? Common Stock Index Investment Fund
This fund consists of equity investments made in proportion to a
diversified common stock index. It is designed for long-term
growth. Since it is a stock fund, the rate of return will vary from time
to time.
Phase-In Period. During the first 10 years of the Savings Plan, private
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: CIA-RDP90-00530R000200340004-4
sector investnliptions will be phased into the plan. This means the
amounts of money restricted to investments in government securities
will vary according to the following schedule:
PERCENTAGE REQUIRED TO BE INVESTED IN
GOVERNMENT SECURTIIES
Year
Employee
Contributions
Government
Contributions
1987
100%
100%
1988
80%
100%
1989
60%
100%
1990
40%
100%
1991
20%
100%
Atter 1991, all employee contributions may be invested in private sector
securities, at the employees' option.
1992
100%
1993
80%
1994
60%
1995
40%
1996
20%
After 1996, all funds may be invested in private sector and/or government
securities at the employees' option.
Loan Program. A loan program is scheduled for implementation on
January 1, 1988. At that time, employees will be able to borrow from their
savings plan account for financial needs such as:
? Medical expenses not covered by health insurance;
? Purchase of an employee's primary residence;
? Educational expenses for employees or dependents;
? Financial hardship.
Employees will be able to borrow up to the full amount of their
contributions, excluding the government's contribution.
Administration. The Thrift Plan is administered by an Executive
Director, who is appointed by the Thrift Investment Board and is paid at
the rate for level III of the Executive Schedule. The administrative
expenses of the Thrift Plan are to be paid out of the Thrift Savings Fund.
The Federal Retirement Thrift Investment Board establishes policies
governing the investment of the Thrift Fund and administration of the
Thrift Plan. It is composed of 5 members appointed by the President.
Except with respect to money required to be held in Governmnt
securities, the Board is prohibited from directing the Executive Director
to invest in or dispose of any specific investment.
4. SURVIVOR BENEFITS
"Widow," "widower," "child," and "former spouse" are defined the
same as under CSRS, except that a former spouse must have been
married to an employee with at least 18 months of creditable (not
necessarily covered) service under FERS.
Survivor benefits under the Basic Annuity Plan
Death of retiree: The widow or widower automatically receives 50
percent of the retiree's unreduced annuity, unless a joint waiver of
survivor benefits was filed at the time of retirement, or no survivor benefit
was elected in the case of a post-retirement marriage. A partial survivor
benefit cannot be elected.
Death of employee: If the employee had at least 18 months of creditable
civilian service and was (a) married to the surviving spouse for at least 9
months, (b) the parent of a child of the marriage, or (c) the death was acci-
dental, the widow or widower receives:
(a) a lump sum equal to 50 percent of the employee's final pay (or
average pay, if higher), plus $15,000, (to be increased by annual COLAs)
and;
(b) if the employee had at least10 years of creditable service, an annu-
ity equal to 50 percent of the basic annuity that would have been payable
to the employee without any reduction for age.
The survivor may elect to receive the amount in clause (a) as a lump
sum, in monthly payments over 3 years, or over any other period permit-
ted by OPM regulations.
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1111
Death of former employee with title to deferred annuity: If married to
the employee on the date of separation, the widow or widower is entitled
to:
(a) an annuity equal to 50 percent of the annuity that would have
been payable to the decedent, assuming he had attained the minimum
retirement age, provided that the employee had performed at least 10
years of service, or
(b) a refund of the former employee's retirement contributions,
with interest, if no one else is entitled to the refund.
The annuity payable under (a) commences on the day after the
decendent's sixty-second birthday or, if the survivor so elects, on the
day after the former employee's death. An annuity beginning on the day
after the former employee's death must be actuarially equivalent to the
annuity that would have begun on the day after the former employee's
sixty-second birthday.
Death of a disability retiree before age 62: The widow or widower
receives 50 percent of the benefit the retiree would have been entitled to
if the retiree were age 62 when he died. For purposes of computing the
decedent's redetermined annuity, creditable service would be increased
by the period between the date of death and the decedent's sixty-second
birthday, and average pay would be adjusted by COLAs payable
through the date of death.)
A widow's or widower's benefit is reduced by the amount of any
survivor benefits payable to any former spouse or former spouses of the
decedent.
Supplementary annuity: A widow or widower of a deceased retiree is
also entitled to a supplementary annuity payable until age 60, equal to
the lesser of ?
(a) the excess of the CSRS survivor benefit that would be payable to
the survivor if he orshe were entitled to a CSRS survivor annuity, over the
basic survivor benefit payable under FERS, or
(b) the Social Security survivor benefit that would have been pay-
able as of the date the decedent died, assuming the survivor was then
age 60.
The supplementary annuity is payable only if the widow or widower
would be entitled to a Social Security survivor benefit at age 60.
The supplementary annuity is not payable if the widow or widower is
entitled to Social Security survivor benefits before age 60 because he or
she is disabled or is caring for a child of the deceased employee or
retiree.
The supplementary annuity is increased by annual COLAs, just as the
basic survivor annuity is.
Former spouse benefits under the basic plan A former spouse may
receive survivor benefits to the extent provided in an election by the
retired employee or qualified court order.
Court orders will be honored in the case of a former employee with
title to a deferred annuity who dies before applying for an annuity. A
court order will not be honored if it conflicts with an earlier joint waiver
with respect to the former spouse.
A former spouse's survivor benefit cannot exceed the difference
between the sum of 50 percent of the decedent's annuity and any
survivor supplement payable, and the survivor benefit payable to any
other former spouse of the decedent.
The lump sum payable to a deceased employee's widow or widower
will instead be paid to a former spouse if expressly provided in a court
order.
Termination: Survivor annuities under the Basic Annuity Plan paid to
widows, widowers, and former spouses terminate upon remarriage
before age 55.
Children's annuities: A child of a deceased retiree or a deceased
employee with 18 months of civilian service receives the excess of the
annuity the child would receive under CSRS, if so entitled, over the
child's Social Security benefit. The assumed CSRS benefit is increased
by COLAs and the child's Social Security benefit includes COLAs
payable under the Social Security Act.
An insurable interest annuity under the basic plan equals 55 percent
of the retiree's reduced annuity and is payable to the person designated
by the retiree.
Rights of spouses and former spouses under the Thrift Savings Plan.
A survivor annuity equal to 50 percent of a married employee's benefit is
provided automatically unless jointly waived by the employee and his
spouse.
Divorce decrees are honored to the extent that they expressly relate to
an employee's thrift account unless a joint waiver was executed earlier
by the employee and the former spouse.
The total amount of survivor annuities payable based on the em-
ployee's account cannot exceed the survivor annuity option provided by
the Board most closely approximating 50 percent of the employee's
annuity.
A married employee cannot withdraw or transfer funds from his thrift
account unless a survivor annuity has been jointly waived.
Any current and former spouses must be notified if thrift funds are
transferred to a qualified plan.
An employee cannot borrow from his thrift plan contributions without
his spouses consent or if the loan would violate the terms of a court order.
5. DISABILITY BENEFITS
Eligibility
? Employees must have 18 months of civilian service;
? Employees must have become disabled for useful and efficient
service in the last position occupied; and
? Employee must not have declined a reasonable offer of a vacant
position in the sameagency and commuting area, at the same grade
or pay level as the most recent position.
? Military reserve technicians who lose military status due to a dis-
abling condition that is not considered a disability under FERS are
deemed to be entitled to by the Government and do not decline an
offer of an equivalent position in the same commuting area. How-
ever, disabled military reserve technicians who are at least age 50
with at least 25 years of service must retire under section 8414(c).
Computation
? For first year: 60 percent of average pay minus any Social Security
disability benefit the annuitant is entitled to receive.
(NOTE: If the annuitant becomes entitled to Social Security disability
benefits after becoming entitled to FERS disability benefits, the FERS
disability annuity is offset by either 100 percent or 60 percent of the
Social Security disability benefit that would have been payable to the
individual if such Social Security benefit had begun on the commen-
cing date of the FERS annuity, increased by any COLAs paid to FERS
annuitants between the commencing date of the FERS disability
annuity and the actual commencing date of the Social Security dis-
ability benefit.)
? After first year: 40 percent of average pay, minus 60 percent of any
Social Security disability benefit the annuitant is entitled to receive
(See Note above.)
? The disability annuity after it has been offset by any Social Security
disability benefit cannot be less than the annuity computed under
the Basic Annuity Plan with respect to the employee.
? No COLAs are payable during the first year.
? At age 62 the annuity is recomputed as a nondisability annuity,
including credit forthe period of disability. Average pay is increased
by COLAs payable to FERS annuitants during the period when the
disability benefit was being paid. This redetermined annuity is pay-
able only if it is less than the disability annuity reduced by the indi-
vidual's Social Security disability benefit. For the purpose of this
comparison, the individual is assumed to be entitled to Social Secu-
rity disability benefits even if he actually is not. The annuity payable
after age 62 continuesto be subject to the floor described in (c) above.
? If the employee becomes disabled after reaching the age and serv-
ice requirements for normal retirement (except the minimum retire-
ment age/10 years of service option) or after reaching age 62, the
annuity is computed as a nondisability annuity.
Provisions regarding applications, medical examinations, and
recovery or restoration of earning capacity are essentially the same as
under CSRS.
6. GENERAL PROVISIONS REGARDING BENEFITS UNDER FERS
Court orders Payments under FERS that would otherwise be made to
an annuitant will be paid to a former spouse of the annuitant under the
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terms of a court order of divorce, annulment, or legal separation.
Reemployment annuitants
Basic annuities and disability benefits terminate on reemployment by
the Government. The period of reemployment is covered by FERS
unless the annuitant is serving as a Federal justice or judge or is subject
to another retirement system for Government employees. When
reemployment ends, the annuity is redetermined to include the reem-
ployment. The redetermined annuity cannot be less than the terminated
annuity plus any COLA's that would have been payable during the
period of reemployment.
Commencement and termination of annuities
? Annuities begin the day after separation for military reserve techni-
cians, disability retirees, those involuntarily separated, and those
who are entitled to immediate annuities upon expiration of a term
to which appointed or elected.
? Otherwise, retirement benefits under the basic plan begin the first
day of the first month after separation.
? Basic annuity and disability benefits terminate on the day of death
or other terminating event.
Provisions regarding waiver, allotment and assignment of benefits,
retirement applications, withholding of State income taxes, exemption
of payments from legal process, and recovery of payments are the same
as under CSRS.
Forms of Payment. FERS Basic Benefits are generally paid in the form
MINI of an annuity. Non-disabled retirees may withdraw their own contribu-
tions in a lump sum and receive a reduced annuity.
7. TRANSFER OF CSRS EMPLOYEES TO FERS
Employees currently employed and covered by the Civil Service
Retirement System (CSRS) may make an irrevocable election to
transfer to FERS between July 1 and December 31, 1987. Employees
separated from service who are reemployed on or after July 1, 1987 may
elect to transfer to FERS within the six month period following
reemployment.
Employees who transfer will have three separate computations for
nondisabilty retirement:
? CSRS benefit. Based on the CSRS formula of 1.5 percent, 1.75
percent and 2 percent of creditable service up to the date of
transfer. Sick leave is creditable, but only the lesser of the amount
on the date of transfer or retirement. Credit for CSRS service is
frozen, but the combined CSRS and FERS annuity will be based on
the average of the highest three consecutive years of pay.
? FERS benefit. Based on the FERS formula of 1 percent (1.1 per-
cent if retiring at age 62 or later with at least 20 years of service)
using creditable service on and after the date of transfer. No sick
leave accumulation is used in the computation.
? Social Security Supplement. A Social Security Supplement which
approximates the Social Security benefit earned while employed
by the federal government if retired after the MRA with 30 years of
service or at age 60 with 20 years of service, or upon involuntary
retirement.
An employee who transfers receives disabilty and survivor benefits
only from FERS.
Transferring employees will receive a full CSRS COLA on the CSRS
portion of their annuity. All service (CSRS or FERS) counts toward years
needed to be eligible for retirement, disabilty, survivor and Thrift Sav-
ings Plan benefits under FERS.
Retirement Computation?CSRS and FERS
Example:
John Jones, employed for 15 years under CSRS and another 15 years
after transfering to FERS for a total of 30 years service, retires at age
63. His high three salary is $30,000. The computation would be as fol-
lows, using estimated figures for his social security and thrift plan
amounts:
CSRS:
26.25% x $30,000 $ 7,875
FERS:
16.5% x $30,000 $4,950
Social Security 2,500*
Thrift Plan 3,000* 10,450
*Estimated figures
Total annual retirement $18,325
8. REHIRES
If you leave government service and return within one year and you
were previously covered under CSRS (without Social Security), then
you will be covered by CSRS upon re-employment. However, you may
elect to transfer to FERS, in which case you will be covered by Social
Security.
If you leave government service and return after more than one year
and you were previously covered under CSRS, then you are covered by
Social Security and:
? If you have less than five years under CSRS, you are covered by
FERS. You will receive credit for your CSRS service if you make
any payments for your past service that may be required.
? If you have five or more years under CSRS, you are covered by
CSRS. Your CSRS contributions are reduced by 1000/0 of your
Social Security, OASDI taxes. Your CSRS benefit will be offset by
any Social Security benefit attributable to your Federal service.
You may transfer to FERS.
If you are rehired under CSRS, you may elect to transfer to FERS
within six months of re-employment or during the six-month period
beginning July 1, 1987, whichever comes first.
SOCIAL SECURITY
COVERAGE OF FEDERAL CIVILIAN EMPLOYMENT
Prior to 1984 the law excluded from coverage Federal civilian employ-
ment that was covered under a staff retirement system (such as the civil
service retirement system) established by a law of the United States. The
Act also excluded from coverage services performed by Members of the
Congress and legislative employees, who had an option to be covered
under the civil service retirement system. Many were therefore excluded
from social security coverage because they were covered under a Fed-
eral staff-retirement system. More than a quarter million employees not
covered under staff-retirement systems were covered by social security.
The Social Security Amendments of 1977 directed the Secretary of
Health and Human Services to undertake a study and report on manda-
tory coverage of employees of Federal, State, and local governments
and of nonprofit organizations in consultation with the Office of Manage-
ment and Budget, the Office of Personnel Management, and the Depart-
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ment of the Treasury. The study was designed to examine the feasibility
and desirability of coverage of these employees and include alternative
methods of coverage, alternatives to coverage, and an analysis, under
each alternative, of the structural changes which would be required in
retirement systems and the impact on retirement system benefits and
contributions for affected individuals. The report was released to the
President and the Congress on March 25, 1980.
NEW FEDERAL EMPLOYEES COVERED
Following the report by Treasury, OPM, and OMB to the President
and Congress in 1980, Congress passed P.L. 98-21 which provided that
Federal employees hired after December 31, 1983 would be covered by
Social Security. However, a second law P.L. 98-168, furnished authority
for a transition period from January 1,1984 through December 31,1985
for these new hires, and was further extended by P.L. 99-335 to Decem-
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ber 31, 1986. Included in this Law was the creation of the new
Federal Employees Retirement System (FERS), and included the details
for optional transfers of the pre-1984 CSRS employees into FERS, so
that they too could be brought under Social Security coverage. (See
also Part 11 of Retirement chapter.)
Federal employees newly hired after December 31,1983, covered by
Social Security, pay 7.51 (effective 1/1/88)percent Social Security taxes.
This also includes employees with previous Federal service (other than
rehired annuitants) If their break in service was a year or longer, certain
current Federal employees are to be covered under Social Security
since December 1983, including:
? Legislative branch employees who are not covered by the Civil
Service retirement system on December 31, 1983.
? All members of Congress, the President, and the Vice-President
? Sitting Federal judges.
? Most political appointees, including non-career members of the
senior executive service.
Changes in Social Security and Medicare
Effective January 1, 1988
1988
Wage Base: (The maximum amount of annual earnings
on which Social Security taxes and benefits are paid.) $45,000
Tax Rate: (Percentage of wage base deducted)
Employees
7.51%
Employers
7.51%
Self-employed*
13.02%
Earnings Test (The amount people can earn annually with-
out having any Social Security benefits withheld. For every
$2 earned over the exempt amount, $1 in Social Security
benefits is withheld.)
Age 65-70
$8,400
Under age 65
$6,120
Age at which earnings test does not apply
70
Social Security Credits: (The amount a worker must earn to
receive one quarter of coverage. A maximum of 4 quarters
of coverage can be earned in a year.)
$470
Medicare Hospital Insurance: Hospital insurance deduc-
tible and co-insurance: Your cost of covered services for
up to the first 60 days in the hospital:
$540
Your cost for the 61st through 90th days in the hospital:
$135
Your cost for the 60 reserve days:
$270
Skilled Nursing Facility: Your cost for the 21st through
100th day
$67.50
Basic medical insurance monthly premium
$24.80
ELIGIBILITY
Though excluded as a group from social security coverage, many
Federal employees under the civil service retirement system may quality
for benefits under both the civil service retirement system and the social
security program which includes Medicare. As of Dec. 31, 1975, about
40 percent of all Civil Service Annuitants were also entitled to social
security benefits based on their own earning records. It is therefore
important for career Federal employees to know the conditions of their
eligibility for social security benefits and how the program works.
A federal employee not covered may earn social security credits:
1. Through employment under social security prior to entering the
civil service retirement system.
2. While employed as a temporary federal employee, with deductions
from pay for social security.
3. Through parttime employment under social security while full-
time career federal employee.
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4. By ?pelf" a business after hours of full-time federal employment.
5. Through employment or self-employment under social security
after retirement or separation from a civil service position.
Many women career federal employees have protection for themselves
and their children based on their husband's work under social security,
in addition to that earned by their own work under the civil service retire-
ment system. When a Supreme Court ruling in March 1977 liberalized
the requirements for entitlement to husbands and widowers benefits
Congress enacted an offset provision. This requires that the spouses
social security benefit be reduced by the amount of public (e.g., civil
service) employee pension for which the spouse is eligible. For example,
if the spouse gets a public employee pension of $200 a month, that pen-
sion would completely offset any social security spouse's benefit of up
to $200 a month. But if the social security spouse's benefit was $250, the
spouse could get the $200 public employee pension and $50 of the social
security spouse's benefit, for a total monthly benefit of $250. The change
in law took effect for people applying for spouses' benefits beginning
with Dec. 1, 1977. However, husband and widowers who were receiving
half support from their wives, divorced women whose marriages lasted
at least 20 years, married women and widows, were exempted from the
offset if they became eligible for the public service pension before Dec. 1,
1982. As a result these people will not have a social security spouse's
benefit offset.
Public Pension Offset. The Public Pension Offset is a provision of the
Social Security Law that reduces the Social Security benefit received by
a spouse or surviving spouse if that person is also entitled to a govern-
ment pension not covered by Social Security, including federal em-
ployees under the Civil Service Retirement Systems (CSRS).
Any person who becomes eligible for a CSRS, CIA or Foreign Service
retirement benefit after June 1983, is subject to this reduction and will
have any Social Security spouse or survivor benefit reduced or possibly
eliminated. For every three dollars received from a federal pension plan,
the Social Security Benefit is reduced by two dollars.
NOTE: A new change to the Public Pension Offset law requires that
employees under FERS remain under that system for five years before they
are relieved from the Social Security offset.
For example, if you were receiving an annuity of $600 a month and were
also eligible for a Social Security spousal benefit of $200 a month, the
Public Pension Offset would be two-thirds of the monthly $600 CSRS or
FERS annuity, or $400. Since the offset amount is larger than the $200
Social Security benefit, the Social Security benefit would be eliminated.
CREDITABLE EMPLOYMENT
Before any benefits can be paid to a worker or his or her dependents
or survivors, the worker must have enough credit for work covered under
social security. A quarter of coverage is the measure used by social
security to determine the amount of work a person needs.
Beginning in 1988, employees and self-employed people will earn one
quarter of coverage for each $470 of covered earnings in a year, up to a
total of four quarters for the year. The $470 measure is the result of a
current annual increased amount starting in 1984, 1985, 1986, 1987, and
1988, and will be increased each year automatically under a formula to
take account of increases in average wage levels nationally.
Under the old law and through 1977, most employees earned a quarter
of coverage for each calendar quarter in which they were paid $50 or
more in wages covered by social security. Agricultural workers earned
one quarter of coverage for each $100 of covered annual earnings up to
four quarters of coverage in a year. Self-employed people earned four
quarters of coverage if they had $400 or more in net earnings from self-
employment for the year. Now, at least $470 in net income is required to
qualify for social security self-employment coverage. But quarters of
coverage are based on $470 in 1988; thus the $460 minimum for self
employment income tax reporting will not yield one quarter of coverage.
The change in the quarter of coverage measurement was accompanied
in the 1977 legislation by a conversion to annual reporting of wages by
most employers. Prior to 1978, employers were required to report
employee wages quarterly to the Internal Revenue Service. Now most
employers report wages annually to the Social Security Administration
as well.
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?
Employment covered by the law can be computed for credit from
January 1,1937, and self-employment from January 1,1951.
Almost all part-time employment or self-employment of a Federal
employee and employment or self-employment by a civil service annui-
tant is now covered by the social security law. Generally, Federal
employees in temporary positions are under social security as long as
they hold temporary positions.
Since January 1, 1957, members of the Uniformed Services are cover-
ed under social security for service performed by such members while
on active duty or active duty for training. (See Section 3 of chapter on
Retirement for further discussion on credit for military service of a Fed-
eral employee under the Civil Service retirement system as compared
with the Social Security system and their respective benefits. Part II of
the current edition of Uniformed Services Almanac, available from Uni-
formed Services Almanac, Post Office Box 76, Washington, D.C. 20044,
provides a detailed discussion on the subject of social security for mem-
bers of the Uniformed services.
CREDITS NEEDED
Social Security credit for purposes of insured status is given in terms
of calendar quarters in which work covered by social security is per-
formed. These need not be consecutive quarters. A calendar quarter is a
3-month period beginning eitherJanuary 1, April 1, July 1, and October
1 each year.
The exact amount of work credit depends on your age. Table 1 shows
the number of credits (i.e., quarters) needed for a fully insured status,
and Table 2 reflects Contribution Rate Schedule for Employees and
Employers (each).
TABLE 1. CREDITS (QUARTERS OF COVERAGE)
NEEDED TO BE FULLY INSURED BEFORE 1986
Year in which a worker
reaches age 62 or dies
Will need credit for work
during this number of
calendar quarters
Which Is equivalent to
this period of work
under Social Security
1982
31
73/4 years
1983
32
8 years
1984
33
81/4 years
1985
34
81/2 years
1986
35
83/4 years
1987
36
9 years
1988
37
91/4 years
1989
38
91/2 years
1990
1991 & later
39
ao
934 years
10 years
TABLE 2. CONTRIBUTION RATE SCHEDULE FOR
EMPLOYEES AND EMPLOYER (EACH)
Years
Percent of Covered
Earnings Retirement For Hospital Total
Insurance Percent
1985
5.7
1.35
7.05
1986-1987
5.7
1.45
7.15
1988-1989
6.06
1.45
7.51
1990 & After
6.2
1.45
7.65
Section 102 of P.L. 98-21 (the Social Security Amendments of 1983)
provides that employees of nonprofit organizations who are extended
Social Security coverge as a result of the mandatory coverage provisions
in the 1983 amendments and who meet certain requirements, are deemed
to be fully insured for all purposes under title II of the Social Security Act.
This provision was designed to protect some older workers who would
otherwise not work long enough in covered employment before they
retired to qualify for Social Security benefits even though they are
required to pay Social Security taxes under the amendment.
Specifically, an individual can be deemed fully insured if on January 1,
1984 the person was at least 55 and employed by a nonprofit organization
whose employees received coverage solely as a result of the 1983 amend-
ments. In addition, the employees described above, must acquire, after
December 31, 1983, the number of quarters covered (QC's) as follows:
Page 94
Work Credit for Non-Profit Organization Employment
Age on January 1,1984
Number of
Required QC's
Age 60 or older
6
Age 59 or over but less than 60
8
Age 58 or over but less than 59
12
Age 57 or over but less than 58
16
Age 55 or over but less than 57
20
DISABILITY
To obtain disability insurance benefits, a worker, age 31 or over,
needs credit under social security for at least 5 years of work out of the
10 years ending when disability occurred. If disabled before age 24,
credit for 11/2 years of work in the 3 years period ending when the disabil-
ity began and if between 24 and 31, credit is needed for half the time
between the 21st birthday and the time the person became disabled.
Special rules apply to disability caused by blindness.
Bylaw, to be eligible for disability benefits, a person must have a dis-
ability that is so severe it makes him unable to "engage in any substan-
tial gainful activity." It must be a physical or mental condition that will
show up in medical tests and examinations and one that is expected to
continue for at least 12 consecutive months or to result in death. The
disability must have begun at least 5 months before the month in which
the person reaches 65. A waiting period of 5 months after the disability
began is required before benefits begin. However, a disability claim
may be filed as soon as the disability occurs.
Civil Service employees should bear in mind that disability has a spe-
cific meaning under the social security law. Thus, the fact that an
employee is entitled to payments for "total disability" from another
Government agency does not mean that, in every case, the person will
also be eligible for disability benefits under social security. These bene-
fits, however, may be received by eligible persons in addition to civil
service disability payments.
Under a recent change in the law, however, a person's Social Secu-
rity disability benefits can be reduced if he or she receives certain Fed-
eral, State, or local disability payments. It is effective for those workers
whose onset of disability was March 1, 1981, or later and whose first
month of entitlement was September 1981 or later. As a result, not all
eligible persons will receive their full Social Security disability benefit in
addition to their full civil service disability payment.
BENEFITS
Types of Benefits That Can Be Paid. When a person has earned the
Social Security credits needed for a fully or currently insured status, the
following types of benefits can be received.
(1) Old-age insurance benefits for the person and dependents.
(2) Survivor insurance benefits for dependents upon death, plus a
lump-sum death payment.
(3) Disability insurance benefits for the person and dependents
regardless of age when disability occurs at least 6 months before age 65.
Benefits for persons who became entitled to DIB in September 1981 and
later may be reduced if the federal annuity is also based on disability.
(4) Old-age insurance benefits at 70 regardless of whether the per-
son is retired or not.
Beneficiaries. Table 3A shows the beneficiaries and the insured status
(fully or currently insured) needed to receive social security benefits.
Social Security retirement benefits are payable to both men and
women as early as age 62 based on their earned credits. Benefits paid
before age 65 are permanently reduced because of the longer period of
time that benefits will be received. Payment amounts are also reduced if
a spouse, widow or widower starts getting payments before age 65.
Disability benefits are payable to workers who become disabled before
age 65 (See discussion above on Disability.) A severely disabled person
may obtain benefits even though he or she can do some work. Social
security benefits may be paid to a child under age 18 and continue to
any age if the child was disabled before he or she reached age 22. Details
on disability benefits under Social Security are available in a free pam-
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phlet entitled, "If You Becoreisabled," from the Social Security
Administration, Baltimore, Maryland 21235.
If a worker dies, payments can go to certain survivors of the worker's
family (See Table 3B above). A lump sum payment also can be made
when a worker dies. The lump-sum payment is made to widow or
widower if residing with the deceased at the time of death, or if no such
widow(er) exists, to a spouse or child who was eligible for monthly bene-
fits for the month of death. The lump-sum payment is $255.
Benefits also can go to a divorced spouse at age 62 or over, or a sur-
viving divorced spouse at age 60, or to a disabled surviving divorced
spouse age 50 or older, if the marriage lasted 10 years or more. Children
may be eligible for social security benefits based on a grandparents earn-
ings under certain conditions.
TABLE 3A. SOCIAL SECURITY BENEFITS AND
"INSURED STATUS" NEEDED
Monthly payments to?
RETIREMENT PAYMENTS
If you are?
You as a retired worker Fully insured
And monthly payments to your?
Spouse (or divorced spouse, if married for
at lease 10 years) 62 or over
Dependent child (under 18 or any age if
disabled before age 22)
Student child 18 or 19 if full time high
school student
Spouse (regardless of age) if caring for
entitled child under age 16 or disabled
SURVIVOR PAYMENTS
Monthly payments to your? If at death you were?
Widow or widower 60 or over Fully insured
Widow or widower or divorced spouse
(regardless of age) if caring for child Either fully or currently insured.
Dependent parent (mother or father 62) Fully insured.
Divorced spouse 60 or older, or spouse
50-59 and disabled (if married for at least
10 years) Fully insured.
Lump-sum payment to your?
Widow or widower, if living with you in the
household; otherwise can go to spouse or
child who was eligible for monthly benefits
for the month of death Either fully or currently insured.
DISABILITY PAYMENTS
Monthly payments to? If you are?
You and your dependents* if you are
totally disabled for work Fully insured and have 20
quarters? of credit in the 40
calendar quarters ending with
the one in which you became
disabled.
'Children under 18, children under 18 if still in school, disabled child 18 or older (who became
disabled before 22nd birthday), spouse at any age if caring for child or children under 16 or dis-
abled and entitled to benefits, husband of wife at age 62 whether or not a child entitled to benefits
is in care.
"If you are less than 31, you need fewer than 20 quartersof credit, depending on when your dis-
ability began.
Generally a marriage must have lasted at least one year before depen-
dents of a retired or disabled worker can get monthly benefits; survivors
can get benefits in most cases if the marriage lasted at least 9 months.
More information is available in pamphlet, "Your Social Security" avail-
able from the Social Security Administration, Baltimore, Maryland 21235.
Women earn social security credits and benefits for themselves and
their families based on their own work under social security regardless
of whether their husbands work is covered. A woman can obtain disa-
bility insurance benefits based on her own social security credits, and
as a disabled widow at age 50 through 59 based on her husbands social
security credits.
A person who qualifies for benefits on the record of more than one
worker (for example, on one's own and spouse's record), will receive an
amount equal to the larger of the two amounts.
If, in addition to social security as a spouse, widow or widower, bene-
fits are paid based on recipient's work in public employment (e.g., civil
service) not covered by social security, benefits as a dependent or sur-
vivor will be reduced by the amount of the public service pension. An
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exceptions law, provides that the government pension will not
affect a wife's or widow'ssocial security benefits if eligible for the public
service pension before December 1, 1982 or husband or widowers
social security benefit if the husband or widower received half support
from his wife and becomes eligible for the public service pension
before Dec. 1, 1982. (See discussion in section on ELIGIBILITY).
Amounts of Social Security Benefits. Up through 1978 social security
payments have usually been based on average earnings under social
security over a period of years, using the actual dollar value of past
earnings.
Currently, Social Security benefits are computed by determining an
individual's yearly earnings up to a maximum of 35 years, averaging them
into a monthly amount called the Average Indexed Monthly Earnings
TABLE 3B. PERCENTAGES FOR DEPENDENTS
AND SURVIVOR PAYMENTS
When you retire, become disabled or die,
monthly benefits can be paid to your?
Spouse of divorced spouse 62 or older or
spouse at any age with your entitled
Child (under 16 or disabled) in care 50%
Child under 19 who qualifies as a
student or who is over 18 and is disabled
before age 22
Widow(er) or surviving divorced spouse
who is at least age 60 or disabled and
age 50-59
Child(ren)'s mother or father or surviving
divorced mother or father
First dependent parent
Second dependent parent (if two parents
are entitled at the same time, each would
receive 75%
This % times your monthly amount
(before any reduction for age)
'A divorced spouse must be 62 even with a
child in care
2A divorced spouse must have been
married to the worker for at least
10 years
50% (if you are alive)
75% (if you are deceased)
100%12
75%
821/2%
75%
'Reduced for months of entitle-
ment before age 65.
2Not reduced below 75% if the
widow(er) or surviving divorced
spouse have your entitled child
in care
(AIME) and then applying the Social Security formula to the amount. This
computation results in the Primary Insurance Amount (PIA). The Social
Security formula has three levels. Each level of earnings is multiplied by
a specified percentage. The first level of earnings is multiplied by 90 per-
cent; the second level by 32 percent; and the final level by 15 percent.
For a worker retiring at age 62 in 1987 the benefit formula was:
90% of the first $310 of the AIME
plus
32% of the AIME between $310 and $1866
plus
15% of the AIME over $1866
The percentage amounts are established by law, but the dollar
amounts are indexed and will usually change each year.
The new method is intended to insure that benefits will reflect changes
in wage levels over a working lifetime and will have a relatively constant
relationship to pre-retirement earnings.
ELIMINATION OF WINDFALL SOCIAL SECURITY BENEFITS
Basic Provision. The Social Security Amendments 0( 1983 (PL 98-21)
provide for the elimination of windfall Social Security benefits for retired
and disabled workers receiving pensions from employment not covered
by Social Security. The provision provides for a different, less heavily
weighted, Social Security benefit formula to be used for such persons.
Specifically, the 90 percent factor applied to a worker's average earn-
ings in the first band of the benefit formula is replaced by a factor of 40
percent for workers who are receiving a pension based on noncovered
employment
Phase-In Period. The lower factor will be phased in gradually for work-
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ers who reach age 62 or become WIed in 1986 through 1989 and will
be fully effective for workers who reach age 62 or become disabled in
1990 or later. The following table illustrates this phase-in:
Year of Age 62
or Disablement
1986
1987
1988
1989
1990 and after
First Factor
in Formula
80 percent
70 percent
60 percent
50 percent
40 percent
Rationale. The purpose of the windfall provision is to remove an
unintended advantage that the heavy weighting in the benefit formula
provided for persons who have large pensions from noncovered
employment. The weighting is intended to help career low-wage
workers by providing them with a benefit that is higher in relation to their
prior earnings than the benefit provided for workers with high career
earnings. However, the formula also helped people who spent only part
of their careers in covered employment at relatively high wages whose
Social Security benefits were computed as if they were long-term, low
wage workers.
Requirements for Windfall to Apply. The new benefit formula applies
to workers who are first eligible after 1985 for both
1. a pension based on noncovered employment; and
2. a_Social Security retirement or disability benefit.
A person is considered "eligible" to receive a pension if he or she meets
the requirements of the pension plan before January 1986, even if still
working.
Exceptions to Windfall.
1. Exception based on age?The new benefit formula will be phased-
in gradually for workers who reach age 62 or become disabled in
the years 1986 through 1989, becoming fully effective in 1990 and
later.
2. Exception based on years of coverage?Workers receiving pen-
sions based on noncovered employment who also have a substan-
tial number of years of covered employment can qualify for a more
heavily weighted benefit formula.
Workers with 30 years of coverage are fully exempt. Workers
with 26 through 29 years of coverage are partially exempt; the
lower weighting will be applied based on a declining scale.
For years prior to 1951, a year of coverage is credited for each
$900 in aggregate earnings. For the years 1951-1978, a year of
coverage is credited when a worker has earned at least one quarter
of the maximum amount of annual earnings in covered employ-
ment used for benefit purposes; beginning in 1979, a worker must
earn at least one quarter of the 1978 earnings base adjusted each
year to reflect changes in the economy.
3. Additional Exceptions
? Federal workers who are newly covered on January 1, 1984
under the mandatory coverage provisions of the 1983 amend-
ments;
? Persons employed by a nonprofit organization on January 1,
1984 that is covered under the compulsory coverage provision
in the 1983 amendments;
? Persons entitled to a pension based on railroad employment; and
? Persons entitled to a pension based entirely on noncovered
employment prior to 1957.
Windfall Guarantee. There is a guarantee in the windfall provision
designed to protect workers with relatively low pensions based on non-
covered employment. The guarantee provides that the reduction in the
Social Security benefit cannot exceed one-half of that part of the pen-
sion based on post-1956 noncovered earnings. For further information
contact your personnel office or local Social Security office.
Social security benefits for people on the rolls will increase automatic-
ally in future years as the cost of living rises. Each year, living costs will
be compared with those of the year before. If living costs have increased
Page 96
3 percent or m nefits will be increased by the same amount and will
be included in payments issued the following July unless Congress has
already acted to raise benefits.
Individuals reaching age 62 in 1984 and later will have their benefits
figured under a complex formula which involves "indexing". You should
consult your local Social Security office for information on the amount
of money you can expect to receive. However, due to the complexity In
estimating one's retirement benefits, it is suggested that you get a copy
of "Estimating Your Social Security Retirement Check" which is avail-
able from all Social Security Offices.
The following table, although it does not reflect the specific amount
you will receive, it will give you some idea of amounts of maximum and
average payments as of January 1988.
EXAMPLES OF MONTHLY PAYMENTS
Benefit Category
January 1988
Payment
I. Maximum Social Security benefit
Maximum benefit, worker retiring in 1987 at
age 65
II. Average Social Security benefits
All retired workers
Aged couple, both receiving benefits
Widowed mother and two children
Aged widow alone
Disabled worker, wife, and children
All disabled workers
III. Maximum Federal SSI payments*
Individual
Couple
$ 822
513
876
1077
468
919
508
354
532
Most States provide payments supplementing the Federal SSI payment
levels for some or all categories of recipients.
If a person is eligible for both a workers benefit and a spouse's benefit,
the check actually payable is limited to the larger of the two. Also the
maximum amount payable to a family is generally reached when a
worker and two family members are eligible.
There is an exception to the application of the windfall provision for
persons who, though eligible for a pension from noncovered employ-
ment (i.e. Civil Service Requirement), worked for many years under
Social Security.
The new benefit formula for those affected by the windfall provision
will be phased in gradually for workers who reach age 62 or become dis-
abled in the years 1986 through 1989, becoming fully effective in 1990
and later.
A retired worker and spouse can get full monthly checks if they wait
until 65 to start getting benefits. This is true even though the method
used to figure payments is based on when a worker reaches age 62.
Special minimum benefit. There is a special minimum benefit at retire-
ment for some people who worked under social security over 20 years.
This helps people who had low earnings (but still above a specified level)
in their working years. The amount of the special minimum depends on
the number of years of coverage. Effective December 1987, the special
minimum for a worker with 30 or more years of coverage is $402. Most
people who have worked 20 years or more under social security already
receive benefits higher than the special minimum.
Years of coverage from 1937 to 1950 are determined by dividing the
total wages for those years by $900, with a maximum of 14 years of cover-
age counted for that period. After 1950 and through 1978, a year of cover-
age is any year a person has earnings of at least 25% of the maximum
covered by social security for that year. Beginning with 1979, a year of
coverage is credited if a worker has the following amount of earnings in
the year:
1979 ? $4725 1983 ? $6675 1987 ? $81.75
1980? 5100 1984? 7050 1988? 8400
1981? 5550 1985? 7425
1982? 6075 1986? 7875
The automatic cost-of-living benefit increases also apply to the special
minimum benefit amounts starting in 1979.
The following information is limited to retirement checks for people
who reach 62 in 1979 through 1983.
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Individuals reaching age 62 MIP84 and later, benefits will be figured
only under the new method. The adjusted method covers average earn-
ings Indexed from 1951 and on. Your benefit rate will be increased
automatically to keep pace with changes in the cost of living. However,
due to the complexities involved by indexing, it is again suggested you
contact your local Social Security office for information on the amount
of money you are to receive.
WHEN TO RETIRE
For consideration of those eligible for Social Security Benefits.
? Early Retirement-Benefits can be paid as early as 62. Such benefits
are reduced for each month of retirement before age 65, up to 20 per-
cent for a worker who starts receiving benefits at age 62. A widow
or widower may apply for Social Security survivors benefits on the
earnings record of a deceased spouse as early as age 60.
? Delayed Retirement-People who delay retirement past 65 receive
a 3 percent retirementcredit for each yearafter age 65 up to 70. Start-
ing in 1990, the delayed retirement credit will increase gradually
until it reaches 8 percent by the year 2008.
? Effects of Earnings-There is a limit to how much a person can
earn and still receive Social Security benefits. The amount of the
annual earnings limit depends on one's age and changes each year
with increases in general wage levels. A monthly test is applied the
first year of retirement, which makes it possible for a person to
retire at any time of the year without having earnings in the months
before retirement reduce benefits. For people who plan to continue
to work after retirement, its important to let Social Security know
how much they expect to earn.
? Medicare-People don't have to retire to get Medicare. A person
who plans to keep working after age 65 can still get Medicare cov-
erage by applying at any Social Security office. Medicare provides
help with hospital and doctor bills for people age 65 and over.
? Income Tax-U nder a recent change in the law, the Social Security
benefits of people in the higher income levels may be taxable.
While only about 10 percent of beneficiaries are affected by this
change, people should determine how this may affect their benefits
if their income is high.
? Effects of Other Types of Income-To encourage peope to plan for
their retirement using Social Security as a base, the law provides
that in general, only income from wages and self-employment
count against Social Security benefits. This means that income
from savings, private insurance, and other income may not affect
benefits.
However, the public pension offset may affect a spouse's Social Secu-
rity benefits if he or she also receives a pension from Federal, State or
local government employment not covered by Social Security. Also,
starting in 1986, people who become eligible for both a Social Security
benefit as a retired or disabled worker and a pension from work not cov-
ered under Social Security will have their Social Security benefit reduced.
EARNED INCOME AFTER SOCIAL SECURITY STARTS
If you go back to work and are under age 70, your earnings may affect
your social security benefits. You don't have to stop working complete-
ly, though, to get social security benefits. You can receive all benefits if
your earnings do not exceed the annual exempt amount.
If your earnings go over the annual exempt amount, $1 in benefits for
each $2 of earnings above the limit will be withheld. Starting in January
1978, a person may use the monthly test only in the first year he or she
has a month in which earnings do not exceed 1/12 of the annual exempt
amount or does not perform substantial services in self-employment.
For example in 1981, if such a month occurs, a benefit can be paid for
any month in which you had earned $458 or less (if age 65 or older) or
$340 (if under 65) and you didn't perform substantial services in self-
employment even though your total yearly earnings exceeds the annual
amount. For people 65 and over, the calendar year exempt amount was
$5,500 in 1981; $6,000 in 1982; to $6,600 in 1983, $6,960 in 1984, $7,320 in
1985, $7,800 in 1986, $8,160 in 1987, and to $8,400 in 1988. After that, the
limit will increase automatically as the level of average wages rises. The
: CIA-RDP90-00530R000200340004-4
limit for peo der 65, $6,120 in 1988, will also continue to increase.
(Note: Different rules apply to work performed by people getting benefits
because they are disabled. For more information, ask fora copy of the leaf-
let, "If You Become Disabled," at any social security office.)
If you are getting retirement checks, your earnings may affect your
dependent's checks as well as your own. If you get checks as a depen-
dent or survivor, your earnings can affect only your own check.
FINANCING
During working years under social security, employees, their employ-
ers, and self-employed people pay social security contributions. Part of
the contributions made goes for hospital insurance under Medicare.
You and your employer each pay an equal share of social security con-
tributions. If you are self-employed, you pay contributions for retire-
ment, survivors, and disability insurance at a rate about equal to 2 times
the employee rate. The hospital insurance contribution rate is the same
for the employer, the employee, and the self-employed person. As long
as you have earnings that are covered by the law, you continue to pay
contributions regardless of your age and even if you are receiving social
security benefits. Table 4 shows the social security financing available
for the calendar years 1957-1988.
The total tax rate for both employer and employee will increase to
reach 7.65 percent in 1990. The maximum amount of taxable income
also will rise automatically as earnings levels rise. This will mean higher
benefits later because a greater portion of a worker's earnings will be
counted towards social security. Every year the increase in average cov-
ered wages will be determined, and if wage levels have increased since
the base was set last the base will be raised-but only if there is an auto-
matic benefit increase the same year.
TABLE 4. SOCIAL SECURITY FINANCING SCHEDULE
CALENDAR YEARS 1957-19873
Calendar
years
Maximum
annual
taxable
earnings
Tax Rate: Employer
and Employee, Each
Maximum
Employee
Tax
OAS011
HP
Total
1957-58
$ 4,200
2.25%
-
2.25%
$ 94.50
1959
4,800
2.5
-
2.5
120.00
19604.1
4,800
3.0
-
3.0
144.00
1962
4,800
3.125
-
3.125
15000
1963-65
4,800
3.625
-
3.625
174 50
1966
6,600
3.85
.35%
42
277 20
1967
6,600
3.9
.5
4.4
290.40
1968
7,800
3.8
.6
4.4
343 20
1969-70
7,800
4.2
.6
48
374 40
1971
7,800
4.6
.6
52
405.60
1972
9,000
4.6
.6
5.2
468
1973
10,800
4.85
1.0
585
631 80
1974
13,200
4.95
.9
585
772 20
1975
14,100
4.95
.9
585
82485
1976
15,300
4.95
.9
595
895 05
1977
16,500
4.95
.9
585
F96525
1978
17,700
5.05
1.0
6.05
1.070.85
1979
22,900
5.08
1.05
6 13
1 40377
1980
25,900
5.08
1.05
6 13
1 587 67
1981
29,700
5.35
1.30
665
1 975()5
1982
32,400
5.40
1.30
670
2.170 so
1983
35,700
5.40
1.30
670
2.39190
1984
37,800
5.70
1.30
700
264600
1985
39,600
5.70
1.35
705 2.791 80
1986
42,000
5.70
1.45
7 15 3.00360
1987
43,800
5.70
1.45
715
3.131 70
1988
45,000
6.06
1.45
751
3 379 50
1
'Old-Age Survivors and Disability Insurance.
2Hospital Insurance.
3After 1983 the base will continue to increase per average wage levels.
The maximum tax to be paid by employees under social secunty will be
$3,379.50 for 1988.
MEDICARE
Medicare benefits for government miters. P.L. 97-248 of September
8, 1982 provides Medicare hospital benefits for those qualifying govern-
ment workers who retire in 1983 or later. Under the provisions of law,
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NMI
NNE
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any Federal employee working mpg January 1983, and was employed
before January 1, 1983, will receive deemed (awarded) quarters of cov-
erage for purposes of medicare for his or her Federal service prior to
January 1983. Quarters of coverage are the same as are needed by any
wage earner for full Social Security benefits. The Federal or Postal
employee can therefore use the pre-1983 deemed coverage combined
with quarters coverage earned in government after January 1, 1983 or
other FICA coverage earned at any time outside of Government.
Public Law 99-335, the Federal Employee Retirement Systems Act
(FERS), brought all new employees after 1983 under Social Security
coverage including medicare. This also made it optional for the pre-1984
employees to transfer into FERS and get full social security coverage.
Beginning in January 1983, the Medicare hospital insurance portion
of Social Security Tax was deducted from paychecks of all federal and
postal employees. The deduction was made even though the employee
was fully insured?based on a maximum of 40 quarters coverage or less
depending on age of the employee. New employees starting January
1983 were subject to the payroll deduction. Currently the deduction is
1.45% for 1988, see Table 4 for details. These employees will also accum-
ulate quarters coverage accordingly.
The Medicare benefits will only be available when you have proper
coverage and have reached age 65, or are disabled for 24 months, or if
suffering kidney failure and dialysis is needed. There are also certain
benefits for other family members based on the qualifying employee eli-
gibility for benefits. Employees will not be eligible for other Social Secu-
rity benefits other than Medicare hospital insurance unless the full Social
Security (FICA )deduction has been made?either while employed in or
outside of government.
Medicare is a Federal health insurance program that protects people
age 65 and over against the high cost of health care. For those who con-
tinue as Government employees over age 65, and are "fully insured" are
eligible for Medicare hospitalization at that time. Many Federal civil
service workers and annuitants, will now be covered under social secu-
rity for Medicare hospital insurance. Also eligible are disabled people
under 65 who have been entitled to social security disability benefits for
24 or more consecutive months (including adults who are receiving
benefits because they have been disabled since childhood). Insured
workers and their dependents who need dialysis treatment or a kidney
transplant because of permanent kidney failure also have Medicare
protection.
The hospital insurance part of Medicare helps pay the cost of inpati-
ent hospital care and certain kinds of followup care, also the medical
insurance part of Medicare helps pay the costs of physicians' services,
outpatient hospital services, and for certain other medical items and
services not covered by hospital insurance. People who have medical
insurance pay a monthly premium. The basic premium is $17.90 per
month. (Civil service annuitants may have premiums deducted from
their annuity checks.)
Employed medicare beneficiaries age 65 through 69 are subject to
having their Government Employees Health Plan as the primary insu-
rance and Medicare as the secondary payer of medical treatment costs.
At age 70 Medicare becomes your primary insurance.
Information for civil service annuitants about Medicare. Most civil serv-
ice employees and annuitants are covered by prepayment plans of the
Federal Employees Health Benefits Program which make health services
available to members in a special way, some without additional charges
and others with small charges for certain services. The program is
administered by the Office of Personnel Management and includes a
service benefit plan administered by Blue Cross-Blue Shield, an indem-
nity benefit plan administered by the Aetna Life and Casualty Company,
various employee organization plans as well as group- and individual-
practice prepayment plans in various parts of the country. Each of these
plans has specific contracts with the Office of Personnel Management
governing benefits to be paid under the Federal Employees Health Bene-
fits Program.
Duplicate Coverage. An annuitant who is enrolled in a plan under the
Federal Employees Health Benefits Program can keep his Federal
employee plan, low option, along with his hospital Insurance under Medi-
care. However, he can have Medicare's Hospital Insurance at no cost only
if he is (or becomes) entitled to monthly social security or-railroad retire-
ment benefits, or is qualified under Federal employment per P.L. 97-248.
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Otherwise hilt enroll for Hospital Insurance and pay the premium.
Canceling hi eral Employee Health Benefits plan will not make him
eligible for non-premium Hospital Insurance.
No plans in this Program will stop coverage because of Medicare.
However, all Federal employee plans will adjust any benefits payable so
they supplement, rather than duplicate Medicare benefits. Benefits will
be paid in full or in a reduced amount which, when added to the Medi-
care benefit, will not exceed 100 percent of allowable expenses.
Should Annuitants Keep or Cancel Their FEHB Plan? An annuitant
should compare the Medicare benefits with those described in the bro-
chure of the particular plan he happens to be in. Usually the plans under
the Federal Employee Health Benefits Program give protection against
the same expenses as Medicare but most of the plans pay benefits for
expenses beyond and in addition to those which Medicare covers.
An annuitant enrolled in the high option of a plan which has two
options, may change to the low option of his plan at any time if he is eli-
gible for Medicare by writing to the Office of Personnel Management.
Since most low options will adequately supplement Medicare, an annui-
tant who has full Medicare coverage (Hospital and Medical Insurance)
for himself and his wife should consider changing to the less expensive
low option of his plan.
More details for the civil service annuitants are provided in the pam-
phlet, "Medicare and Federal Employees Health Benefits," (BRI-49-
290B) published by the Office of Personnel Management, Washington,
D.C. 20415, and in the pamphlet, "Your Medicare Handbook," published
by the Social Security Administration, Baltimore, Maryland 21315.
SOCIAL SECURITY OFFICES
There are more than 1,300 social security offices located throughout
the 50 States, and in Puerto Rico and the District of Columbia. Any one
of these offices will give you accurate information on social security
matters any time you go in or call by telephone. You can get the street
address and telephone number of your nearest social security office from
the postmaster of any U.S. post office. Much time can be saved by call-
ing the Social Security Office before visiting. You may be able to transact
your business completely by phone.
When to Contact a Social Security Office. Before you or your family
can get any social security benefits, you must apply for them. Do not
delay in filing a claim if you are retiring or you are a spouse or surviving
spouse. Benefits cannot be paid retroactively in most cases, and, if so, for
not more than 12 months. Get in touch with any social security office if:
(1) You're unable to work because of an illness or injury that is expect-
ed to last a year or longer.
(2) You're 62 or older and plan to retire.
(3) You're within 2 or 3 months of 65 even if you don't plan to retire. A
delay in applying for monthly benefits can cause loss of some benefits.
(4) Someone in your family dies.
(5) If you or a dependent needs disalysis treatments or a kidney trans-
plant because of a permanent kidney failure.
Make sure that your spouse or another member of your family is aware
of these important times to contact the social security office.
Social Security Number. Your social security number is required in
order to credit your account with earnings under social security. It is also
used for Federal income tax purposes. Show your card to your employer
when you start work. Upon request, show it to anyone who pays you
income that has to be reported. You can apply for a social security card
at any social security office.
Records. Your employer is required to give you a statement of the soci-
al security contributions deducted from your pay. This is done at the end
of each year or when you stop working for that employer. These records,
such as Form W-2, will help you check on your social security record.
Self-employed persons are responsible for reporting their own earn-
ings?and the earnings of their employees?for social security purposes.
Self-employed earnings must be reported as a part of filing an annual
income tax return and taxes are paid through this return. Federal
employees who net as much as $400 per year from self-employment
must be reporting their earnings and paying income taxes on these earn-
ings and also earn social security quarter(s) credits in 1988 if the annual
earnings are $470 or more.
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urn.
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FLEXIBLE (FLEXTIME) AND
COMPRESSED WORK SCHEDULES
The Federal Employees Flexible and Compressed Work Schedules
were first introduced in P.L. 95-390 in 1979 as an experimental program
of three years in the use of flexible and compressed work schedules for
employees of agencies of the Executive branch of the United States
Government. The Office of Personnel Management (OPM) was charged
with the management of the program. As a result of the findings from the
experimentation, OPM recommended to the President and theCongress
that legislation be enacted authorizing the continued use of flexible and
compressed work schedules (collectively referred to as alternate work
schedules or AWS) in the Federal Government. This resulted in the pas-
sage of P.L. 97-221 on July 23, 1982 which authorized the program in
Government. However, the legislation included a "sunset" provision to
ensure timely evaluation of the AWS program.
The original three year experiment eventually included more than
1,500 organization units involving some 325,000 employees. It covered
the entire spectrum of Federal agencies and activities, and for the most
part was very well received. Nevertheless, 93 of the experiments were
terminated due to declines in productivity, efficiency, and work sched-
uling difficulties. Since then the total number of AWS programs in effect
has expanded to more than 2,000 units.
In the OPM study in 1985 they reported that, based on six years of
experience, AWS appears to be generally successful and to have relative-
ly few drawbacks in productivity, service, or cost. In some circum-
stances, alternative work schedules can have beneficial effects by
increasing hours of service or productivity. Also, these schedules can
afford benefits to employees in meeting non-work needs and in
enhancing employee satisfaction. For example, working mothers can
use the flexibility available to schedule work so as to better meet both
home and office responsibilities. Generally, alternative schedules can
allow Federal employees to spend more time with their families, and the
schedules are very well-liked by employees.
The experience in the last three years indicates that problems are
relatively few, and in many cases can be resolved by modifying or limit-
ing the alternative schedule rather than terminating it. With diligent
attention, most problems can be prevented, or if they do arise, and are
resolved through the cooperation of the parties concerned, the alterna-
tive schedules can be not only beneficial to employees but responsive to
the taxpayers.
The latest 1985 OPM recommendation was in support of making
permanent the authority which was to expire December 31, 1985, for
Federal agencies to utilize flexible and compressed work schedules.
Legislation in 1985 was finally passed by Congress, P.L. 99-196
signed by the President on December 23, 1985, making the AWS pro-
gram permanent.
The type of schedules under the program, the same as permitted
during the experimentation, are varied. In addition to 4-day, 10-hour-
a-day workweeks which give employees three-day weekends there are
alternate 4 and 5 day workweeks in which employees work about 8
hours, and 50 minutes a day so that the workweeks over a two-week
period average out to 40 hours a week. This gives employees alternate
three-day weekends. Also, the schedule options include staggered work
hours during the day. For example, an employee can work 10 hours one
day, 7 hours the next, etc. Under this type.of schedule, the 8-hour day
can be ignored. Likewise a full-time employee must account for the 80-
hour basic work requirement. The 40-hour week is no longer necessary.
FLEXIBLE WORK SCHEDULES
Flexible work schedules, commonly called flextime, refer to a variety
of arrangements in which fixed times of arrival and departure are replaced
by a working day composed of two different types of time?core time
and flexible time. Core time is the designated period during which all
employees must be present. Flexible time is designated as part of the
schedule of working hours within which employees may choose their
time of arrival and departure from the work site within limits consistent
with the duties and requirements of their position. The only other require-
ment of a flexible work schedule is that employees must account for the
basic work requirement. The basic work requirement is the number of
hours, excluding overtime hours, which an employee is required to work
or to otherwise account for by an appropriate form of leave.
COMPRESSED SCHEDULES
Like flexible schedules, compressed work schedules may also take a
variety of forms. The most common compressed schedule is the 4-day
week, referred to as the 4/40 schedule. However, a compressed schedule
is a fixed schedule which enables the full-time employee to complete the
basic work requirements of 80 hours in less than ten full work days in each
biweekly pay period. There are no flexible times in a compressed sched-
ule. Employees' time of arrival and departure from the work site are set
as are the days on which they are to complete the basic work require-
ment. For employees working under compressed schedules, overtime
pay will continue to be paid for work outside the compressed schedule.
This system permits a variety of flexible and compressed work sched-
ules without requiring the Government to pay prohibitively expensive
overtime payments. The Act also modified premium pay and scheduling
provisions of title 5, United States Code and the Fair Labor Standards
Act. However, the provisions of law are suspended only for purposes of
permitting flexible and compressed schedules and are not intended to
deprive employees of presently existing benefits.
1. Protection of premium pay and holiday benefits
2. Protection of employees against coercion
3. Preservation of the collective bargaining process
4. Protection of the public interest and efficiency of government
operations.
OTHER THAN FULL-TIME EMPLOYMENT
Federal agencies employ people on a variety of work schedules. While
most Federal employees work on an 8 hour per day/5 day per week basis,
there are also provisions for employing workers on apart-time schedule
(usually 16 to 32 hours per week), or on an intermittent basis in which
the employee has no fixed schedule, but works as needed. There are also
provisions for employing seasonal employees and on-call workers.
These types of employees usually work only a portion of each year.
To provide agencies and employees with guidance on these forms of
employment, OPM issued Federal Personnel Manual Chapter 340 on
Other Than Full Time Employment.
PART-TIME EMPLOYMENT
General Provisions. Federal agencies haveset up over 20,000 part-time
jobs within the last few years to provide opportunities for people unable
to work full-time, for example, parents with family responsibilities, handi-
capped and older individuals, and students. In 1978, the Federal
Employees Part-time Career Employment Act, established a continuing
program for the promotion and expansion of part-time employment and
made the following significant changes in Federal personnel manage-
ment practices:
? Narrowed definition of part-time career employment from scheduled
work of less than 40 hours per week to scheduled work between 16 and
32 hours per week, for employees who become part-time on or after
April 8, 1979.
? Required agencies to establish programs to expand part-time
career employment opportunities in competitive and excepted positions
at grade levels through GS-15 or equivalent.
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? Required agencies to report 11/Pe Office of Personnel Manage-
ment (OPM) on progress in meeting part-time career employment goals.
? Changed the method for counting part-time employees against
agency personnel ceilings by requiring the counting of part-time
employees on the basis of the fractional part of the 40-hour week actual-
ly worked. (See FTE System below).
? Prorated the Government contribution for the health insurance of
eligible employees who become part-time on or after April 8, 1979, on
the basis of the fraction of a full-time schedule worked.
The legislation also prohibits an agency from abolishing an occupied
full-time position in order to create part-time jobs unless the employee
has requested conversion to part-time.
An employee on a permanent part-time schedule before April 8, 1979,
may work any schedule of less than 40 hours per week so long as the
employee remains in that or any other permanent part-time position
without a break in part-time service. A detail or temporary promotion to
a full-time position does not count as a break in part-time service.
Benefits and Rights. A part-time employee:
? Can, in most agencies, arrange for temporary variations in the work
schedule.
? Can request a switch to full-time schedule and vice-versa.
? Will have pay computed by hourly rate.
? Is entitled to receive overtime pay for work over 8 hours a day, or
over 40 hours a week; compensatory time may be granted in such situa-
tions.
? Earns annual leave according to the number of hours worked per
pay period.
? Is paid for a holiday if it falls on a scheduled work day.
Additionally, a permanent part-time employee:
? Receives a full year of service credit for each calendar year worked
for computing retirement, date of career tenure, within-grade pay
increases, leave category, and time-in-grade; however, work time is
prorated to determine experience for qualification requirements.
? Is eligible for retirement, life insurance and health benefits. By a
new law, part-time service after Apri16, 1986 is pro-rated in determining
retirement annuities. Thus the law does not apply to part-time service
before April 17,1986.
? Is, in general, entitled to the same overall appeal rights and protec-
tion in adverse action and reductions in force proceedings as full timers.
Part-timers are in separate competitive levels for reduction-in-force
purposes and can compete only for other part-time positions.
Personnel Ceiling System Changes (FTE System). An important
change has been made in the personnel system which controls the size
of the work force in Federal agencies.
? Beginning October 1, 1981, executive branch agencies (excluding
the Department of Defense and the U.S. Postal Service) shifted to a full-
time equivalent/work year (FTE)system of ceiling allocation and control
for all employment subject to ceiling.
The FTE system replaced the numerical end-of-year personnel ceil-
ings which were used to control the size of the Federal work force for
many years.
ON-CALL EMPLOYMENT
General. Federal agencies have a hiring option available to help
respond rapidly to unpredictable fluctuations in workload. Under the on-
call employment program, a limited portion of an agency's workforce
can be hired on a work-as-needed basis for heavy workload periods.
The program provides management with a trained cadre of permanent
employees, available on short notice to supplement the full-time work-
force during above average workload periods. It reduces excessive use
of overtime, and protects the full-time work force from reductions in
force when workloads temporarily fall off.
On-call employment is distinguished from the career-seasonal form
of employment used in many agencies by the nature of work performed
and the prospect of eventual conversion to full-time employment. On-
call employment is designed for dealing with a fluctuating, largely unpre-
dictable workload rather than an annually recurring or "seasonal" one.
Conditions of Employment. "On-call employees" are permanent
career or career-conditional employees who are hired on a work-as-
needed basis, for service during periods of heavy workload with a mini-
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mum service pelixpected to be at least 6 months each year. They are
subject to expedited release and recall procedures and are eligible for
full fringe benefits and eventual noncompetitive conversion to full-time
employment.
Crediting On-Call Service. On-call employees receive the same
service credit as full-time permanent employees for the time they spend
in a pay status. In addition they receive varying amounts of credit for
time in non-pay status.
Probationary Period. The employee's 1 year probationary period is
computed by the amount of time the employee spends in pay status. In
addition, up to 22 days of the employees time in a non-pay status is also
creditable towards completion of the probationary period.
Service Credit. Employees receive service credit for retirement and
leave accrual rate purposes for up to 6 months of non-pay status in each
calendar year.
Career Tenure. Only the first 30 calendar days of each period of non-
pay status is creditable toward career tenure.
Within-Grade increases. Employees serving in Federal Wage System
positions receive credit for within-grade increases for up to 1 week in
non-pay status for step 2, up to 3 weeks for step 3, etc. On-call employees
serving in positions under the General Schedule receive credit for within-
grade increases for up to 2 weeks in non-pay status for steps 2 through
4,4 weeks for steps 5 through 7, etc.
Benefits. On-call employees are entitled to the same pay rates and
fringe benefits as full-time employees. Additionally, life insurance and
health benefits coverage for on-call employees is continued for up to 365
days of non-pay status. They can be converted to full time without fur-
ther competition, are entitled to participate in agency merit promotion
programs and may be reassigned, detailed or non-competitively pro-
moted under applicable procedures.
Reduction in Force. Reduction-in-force procedures do not apply to
the temporary release of on-call employees to non-pay status or to their
recall to pay status. In the event it becomes necessary to conduct a
reduction in force, on-call employees will be placed in a separate com-
petitive level from full-time employees and will have assignment rights
only to other on-call positions.
SEASONAL EMPLOYMENT
For purposes of this discussion, seasonal employment means recur-
ring periods of work lasting less than 12 months each year, performed
by employees serving under permanent appointments.
Seasonal employment is intended to enable agencies to develop an
experienced cadre of career employees to perform work which recurs
during an identified portion of the year. For example, seasonal
employees work in parks and forests, Internal Revenue Service and pass-
port offices, and other organizations where the work is characterized by
seasonal fluctuations.
A seasonal employee is released to nonpay status at the end of the
season and recalled to duty for the next season. A seasonal layoff in
accordance with preestablished condition of employment is not con-
sidered a furlough as defined in 5 U.S.C. 7511, and is not subject to
procedures for furlough prescribed in either 5 CFR 351 (Reduction in
Force) or 5 CFR 752 (Adverse Action). Seasonal release and recall pro-
Statistics for Savers . . .
Want to figure out how quickly your money will double? Just divide
the interest rate you are earning into 72. The answer is the number of
years it will take your original savings to double. Example: Your
savings are earning 8%. Dividing 8 into 72 gives you an answer of 9,
which means that it will take 9 years for your money to double.
Looking further ahead, you may want to know how long it will take
your money to triple. Here, divide the interest rate into 115 to deter-
mine how many years until your nest egg triples. For example, if
your money is earning 8%, it will triple in a little over 14 years (115
divided by 8 equals 14.38).
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cedures however, must be establishelltdvance and uniformly applied.
These may be based on performance, seniority, veterans preference,
other appropriate indices, or a combination of factors.
Consistent with the career-conditional or career appointment, a sea-
sonal employee receives the full range of benefits provided to attract
and retain a stable work force.
INTERMITTENT EMPLOYMENT
By definition, intermittent employment is employment without a regu-
larly scheduled tour of duty. This means that intermittent employment is
appropriate for a position in which the nature of work is sporadic so that
a tour of duty cannot be regularly scheduled in advance.
Because inter employees do not have a regular schedule, they
do not earn leave, tre not eligible for health benefits or life insurance
coverage unless the intermittent employment follows, without a break in
service in excess of three days, employment in a covered position.
When an agency decides to use an intermittent employee for regularly
scheduled work, and schedules an intermittent employee, in advance of
the pay period, to work at some time during each administrative week for
more than two consecutive pay periods, the agency is required to
change the employee's work schedule from intermittent to part time (or
full time in the case of a 40 hour per week schedule) and to issue an SF
50, Notification of Personnel Action, documenting the change. The
employee would then be entitled to the benefits appropriate to the work
schedule and appointment, i.e., leave and service credit.
TRAVEL ALLOWANCES
The following is a summary of the travel allowances contained in Chapter 1 of the
Federal Travel Regulations (FTR), FPMR 101-7.
GENERAL RULES
The Travel Expense Amendments Act of 1975 (Public Law 94-22, effec-
tive May 19, 1975) authorized the Administrator of General Services to
promulgate regulations regarding official travel by civilian employees of
Government agencies, including civilian employees of the Department
of Defense, but excluding employees of the judicial branch of the Govern-
ment. General rules which apply to official travel are: (1) the employee is
expected to exercise the same care in incurring expenses that a prudent
person would exercise if traveling on personal business, (2) traveling
expenses which will be reimbursed are confined to those expenses
essential to the transaction of the official business, and (3) all travel shall
be authorized or approved by the head of the agency or by an official to
whom such authority has been delegated.
Public law 99-234 effectiveJanuary 2, 1986, removed the statutory ceil-
ings on per diem allowances and actual subsistance expense reimburse-
ments for Federal civilian employees on official travel within the contermi-
nous U.S. and authorized GSA's Administrator to establish appropriate
maximum rates administratively (effective July 1, 1986). The Administra-
tor established lodging-plus per diem as the predominant reimburse-
ment system for travel within the conterminus United States (CONUS).
Thus, reimbursement is based as the amount the traveler pays for
lodging, plus a fixed allowance for meals and incidental expenses. the
total not to exceed a maximum daily rate set by locality.
Additionally, Public Law 99-234 expanded eligibility for relocation
allowances to U.S. Postal Service employees transferring to other Fed-
eral agencies. It also required GSA to collect data from agencies spend-
ing over $5 million a year on travel and relocation payments. It expands
eligibility for travel reimbursements to include employees on official
travel who experience illness, injury, or personal emergencies and
authorizes payment of subsistence and transportation expenses for
threatened law enforcement investigative employees.
TRANSPORTATION ALLOWABLE
Transportation expenses which the government may pay either direct-
ly or by reimbursement include fares, rental fees, mileage payments and
any expenses incident to transportation such as baggage transfer, off i-
cial telephone, telegraph, radio, and other messages in connection with
items classed as transportation; and other expenses discussed in the
following paragraphs. Travel must be by the method of transportation
which will be most advantageous to the government. Methods of trans-
portation authorized for official travel include railroads, airlines, heli-
copter service, ships, buses, streetcars, subways, and taxicabs: Gov-
ernment-furnished and contract rental automobiles and airplanes. and
privately owned airplanes, automobiles and motorcycles. Employees
should use courtesy transportation service when provided by hotels/
motels between the place of lodging at the temporary duty point and
common carrier terminal.
COMMERCIAL TRANSPORTATION
It is the general policy of the Government that less-than-first-class
accomodations shall be used for all modes of passenger transportation.
When air or rail transportation are required it is mandatory with certain
limited exceptions to use the contract carriers between the city/airport
pairs are published in a GSA monthly publication entitled "Federal
Travel Directory." In addition to the city-pair listing, the directory con-
tains contract fares, discount lodging accommodations, ground trans-
portation information and transportation guidelines applicable to Fed-
eral travelers. The directory is available from your appropriate Gov-
ernment travel or administrative office or may be purchased from the
Superintendent of Documents, Government Printing Office, Wash-
ington, D.C. 20402.
REIMBURSEMENT FOR USE OF PRIVATELY
OWNED CONVEYANCES
When the use of a privately owned conveyance is authorized, reim-
bursement is on a mileage basis generally as follows:
(1) For use of a privately owned motorcycle: 20 cents per mile
(2) For use of a privately owned automobile: 20.5 cents per mile.
(3) For use of a privately owned airplane: 45 cents per mile
In lieu of the use of taxicabto and from carrier terminal or oetween resi-
dence and office on day of travel, payment on a mileage basis is allowable
for use of privately owned automobile not to exceed the one way taxi
fare. Parking fees and road and bridge tolls are generally reimbursable.
PER DIEM TRAVEL WITHIN CONUS
A lodgings-plus per diem system was effected on July 1, 1986. as the
predominant reimbursement system for travel within CONUS Under
the lodging-plus system, employees are reimbursed for the actual cost
of lodging (supported by receipts) plus a flat daily allowance for meals
and incidental expenses (M&IE)?the total of these amounts may not
exceed the applicable maximum locality per diem rate The M&IE rate,
currently $25 or $33 depending on the locality involved, is payaole with-
out itemization of expenses or receipts. It is prorated on the first and last
day of travel by dividing the calendar day into quarters and allowing one-
fourth of the M&IE rate for each quarter in travel status The applicable
locality per diem rate is determined by the location of the temporary
duty assignment. No per diem is allowed for travel of 10 hours or less.
An agency may determine that the lodgings-plus method as prescribed
above is not appropriate in circumstances such as when quarters or
meals, or both, are provided at no cost or at a nominal cost by the Gov-
ernment or when for some other reason the subsistence costs to be
incurred by the employee can be determined in advance In such
instances a specific per diem rate may be established and reductions
made, but the adjustments must be made in advance of the travel
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?
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Other City Rates?continued
Per Diem Rates: Maximul" diem rates are prescribed for 523
defined localities within CONUS. A standard CONUS rate is prescribed
for any location within CONUS that is not included in one of the defined
localities for which a specific rate is prescribed.
PER DIEM TRAVEL OUTSIDE CONUS
A flat-rate per diem system (with quarter day computations) applies
for travel outside CONUS. Per diem shall not be allowed for travel of 10
hours or less during the same calendar day unless the travel period is 6
hours or more and begins before 6 a.m. or ends after 8 p.m.
Per Diem Rates: Per diem allowances may be authorized within the
following maximums:
(1) For travel in nonforeign areas; i.e., Alaska, Hawaii, Puerto Rico,
and possessions of the United States, at a rate not in excess of the rates
prescribed by the Secretary of Defense and published in the Federal
Register under per diem rate changes.
(2) For travel in any foreign area situated outside CONUS and the
nonforeign areas described above, at a rate not in excess of the rates
perscribed by the Secretary of State and published in the Standardized
Regulations (Government Civilians, Foreign Areas).
For computing per diem allowances, official travel begins and ends at
the time the traveler leaves and rturns to his home, office, or other point
of departure or return.
PRESCRIBED MAXIMUM PER DIEM RATES FOR CONUS
The maximum locality per diem rates listed below are found in Chap-
ter 1, appendix 1-A, of the FTR. GSA will make periodic changes to the
per diem rates; therefore, employees should consult with their employ-
ing agencies for current rates at the time travel is performed. Employees
should also check their agency regulations for locality definitions to
determine per diem rates for cities not listed below. The rates below are
effective for travel performed on or after August 1, 1987. (Note that the
amount shown is the combined figure for lodgings and meals and inci-
dental expenses.)
REIMBURSEMENT OF ACTUAL SUBSISTENCE EXPENSES
An agency may authorize necessary actual subsistence expense
reimbursement not to exceed 150 percent of the applicable per diem
rate for travel within CONUS (150 percent of the per diem rate or the per
diem rate plus $50, whichever is greater, for travel outside CONUS) when
special or unusual circumstances exist and the applicable per diem local-
ity rate would clearly be insufficient to cover the necessary subsistence
expenses. Approval should be obtained by the employee before travel
begins, but when justified, it may also be approved after completion of
the travel. The FTR details the requirements for itemization, receipts, etc.
Partial Listing of Cities and Rates
Los Angeles
$110
San Diego
100
San Francisco
95
Aspen
105
Denver
96
Vail
110
Washington, D.0
117
Atlanta
102
Chicago
113
Boston
108
Las Vegas
102
Atlantic City
136
Newark
108
New York City
136
Philadelphia
107
Newport
113
Hilton Head
117
Dallas
107
Page 102
Birmingham
$ 75
Bismarck
$ 69
Huntsville
73
Akron
77
Little Rock
73
Cincinnati
75
Death Valley
118
Cleveland
90
San Mateo
99
Columbus
79
Colorado Springs
68
Lima
67
Pueblo
62
Sandusky
80
Wilmington
86
Toledo
75
Fort Myers
81
Oklahoma City
72
Orlando
79
Tulsa
68
Pensacola
69
Portland
75
Savannah
66
Erie
66
Peoria
78
Harrisburg
85
South Bend
73
Mechanicsburg
61
Sioux City
64
State College
69
Kansas City
85
Warminster
78
Wichita
78
Providence
96
Covington
71
Charleston
74
Louisville
71
Greenville
67
New Orleans
85
Rapid City
74
Bath
87
Chattanooga
65
Annapolis
95
Knoxville
74
Baltimore
83
Nashville
77
Worcester
80
Amarillo
71
Battle Creek
65
Austin
80
Detroit
86
Brownsville
65
Lansing
71
Corpus Christi
78
Warren
68
Galveston
76
Duluth
67
Houston
93
Minneapolis
77
Lubbock
71
Jackson
75
San Antonio
75
Natchez
70
Wichita Falls
66
St.Louis
82
Ogden
68
Kansas City
85
Salt Lake City
85
Great Falls
64
Vernal
64
Omaha
75
Charlottsville
76
Reno
69
Manassas
75
Portsmouth
81
Norfolk
80
Dover
87
Petersburg
67
Albuquerque
84
Richmond
79
Los Alamos
69
Wallops Island
76
Santa Fe
95
Seattle
91
Buffalo
75
Spokane
72
Rochester
88
Charleston
73
Schenectady
79
Wheeling
66
Syracuse
82
Green Bay
69
Durham
61
Milwaukee
80
Morehead City
78
Wausau
71
Wilmington
70
Cheyenne
68
MISCELLANEOUS EXPENSES ALLOWANCE
Charges are allowable for necessary stenographic or typing services
or rental of typewriters in connection with the preparation of reports or
correspondence, clerical assistance, services of guides, interpreters, a
room at a hotel or other place to transact official business. For travel out-
side the contiguous U.S., expenses incurred for conversion of currency,
trip insurance and travel documents are allowable. Reimbursement is
allowable for travelers checks, money orders, and certified checks. Other
miscellaneous expenditures may be allowed when necessarily incurred
by the traveler while performing official business.
FEDERAL EMPLOYEE CREDIT CARD
As a result of a contract between the General Services Administration
(GSA) and Citicorp's Diners Club, an increasing number of federal
employees are using credit cards to pay for their official government
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travel. More than 60 federal deplants and agencies have converted
their travel systems to the card. Using the Citicorp Diners Card, federal
employees pay for routine travel expenses such as airplane tickets, hotels
and meals and then are billed for those expenses at their home addresses.
Employees are reimbursed by their agencies for the allowable amounts
of the charged expenses. The program was developed to eliminate, or at
least reduce, cash accounts maintained by agencies for travel advances.
ADVANCE FUNDS
Employees traveling on official business shall provide themselves with
funds for all current expenses. However, Government contractor charge
cards, and transportation request forms and travel advances may be used
to reduce the need for travelers to use their own money. An advance may
be made through proper disbursing officers to any person entitled to per
APPLICABILITY
: CIA-RDP90-00530R000200340004-4
diem, mileageevances, or subsistence expenses, or for the procure-
ment of transportation by group or charter for any sums as may be
deemed advisable considering the character and probable duration of
the travel to be performed or the cost of the transportation to be paid for
by the employee. Asa general rule, advances shall be held to a minimum
and allowed only when it is indicated that an advance is warranted.
RECORDS OF TRAVEL AND EXPENSES
All persons authorized to travel on busines-sfor the Government should
keep a record of expenditures properly chargeable to the Government,
noting each item at the time the expense is incurred and the date. The
information thus accumulated will be available for the proper preparation
of travel vouchers when itemization is required to satisfy reimbursements.
RELOCATION ALLOWANCES
The following is a summary of the relocation allowances contained in
Chapter 2 of the Federal Travel Regulations (FIR), FPMR 101-7.
continuing residence at one location and establishing residence at a new
location in connection with a permanent change of station. Allowances
in the following amounts will be paid withoutsupport or other documenta-
tion of expenses:
(1) $350 or the equivalent of 1 week's basic pay, whichever is the lesser
amount, for an employee without immediate family; and
(2) $700 or the equivalent of 2 week's basic pay, whichever is the lesser
amount, for an employee with immediate family.
Allowances in excess of those provided above may be authorized or
approved, if supported by acceptable evidence justifying the amounts
claimed; provided that the aggregate amount does not exceed the em-
ployee's basic pay at the time the employee reported for duty, for 1 week
if the employee is without an immediate family or for 2 weeks if the em-
ployee has an immediate family. In no instance will the amount exceed
the maximum rate of grade GS-13 at the time the employee reported for
duty.
Travel to seek residence quarters. When circumstances warrant, the
travel and transportation expenses of one round trip not to exceed 10
calendar days, including travel time, may be allowed for the employee
and spouse between the old and new duty stations for the purpose of
seeking residence quarters prior to relocating the family to the new offi-
cial station. Both the old and new duty stations must be located in the
conterminous United States. Separate roundtrips by the employee and
the spouse may be allowed provided the overall cost to the Government
is limited to the cost of one round trip for the employee and spouse travel-
ing together.
Temporary quarters. The employee (and immediate family. ,f appli-
cable) may be authorized subsistence expenses for a period of up to 60
days while occupying temporary quarters when the new stations located
in the 50 States, the District of Columbia, U.S. territories and posses-
sions, the Commonwealth of Puerto Rico, and the former Canal Zone
area (e.g., areas and installations in the Republic of Panama made avail-
able to the United States under the Panama Canal Treaty of 1977 and
related agreements as described in section 3(a) of the Panama Canal Act
of 1979). An additional period not to exceed 60 consecutive days may be
authorized for compelling reasons. (NOTE: When the new official station
is located in a foreign area, the employee may be eligible tor a temporary
lodging allowance under State Department regulations -Standardized
Regulations (Government Civilians, Foreign Areas)" ) Reimbursement
for temporary quarters expenses is based on the itemized actual subsis-
tence expenses incurred, not to exceed prescribed maximum amounts
for the employee and each family member. These amounts are based on
the maximum per diem rate prescribed for the locality in whtch the tem-
porary quarters are located. The statutory $60 standard CONUS rate is
the applicable maximum per diem rate for temporary quarters located in
the conterminous United States.
Residence and lease transactions. The employee's old and new official
station must both be located within the 50 States, the District of Colum-
Persons eligible for all or part of the allowances contained in Chapter 2
include civilian employees upon transfer from one station to another, or
upon assignment to or return (or separation) from posts of duty outside
the conterminous United States; civilian officers and employeestransfer-
red from the United States Postal Service to an agency; Department of
Defense overseas dependents school system teachers; new appointees
(including student trainees assigned upon completion of college work)
to positions within the 50 States and the District of Columbia for which
the Office of Personnel Management determines a manpower shortage
exists; and new appointees to Senior Executive Service (SES) positions
and certain Presidential appointees to their first official duty station. Eli-
gible new appointees (i.e., manpower shortage, SES, and Presidential
appointees) are limited to reimbursement for only certain relocation
expenses.
GENERAL
Travel, transportation, moving and/or storage of household goods and
other allowances are authorized provided that the transfer is in the inter-
est of the Government and the employee agrees to remain in Govern-
ment service for 1 year following the date of transfer, unless separation
occurs for reasons beyond employee's control that are acceptable to the
agency concerned.
Entitlement to allowances contained in Chapter 2 is based on the allow-
ances in effect on the date the employee or new appointee reports to his/
her new or first official duty station. Agencies shall give employee a
reasonable advance notice of transfer-30 days notice is prescribed, with
allowance for exceptions in special circumstances. Additionally, the agen-
cy shall issue a written travel authorization. All authorized travel, includ-
ing that for immediate family, and transportation, including household
goods, must be accomplished as soon as possible, but not later than 2
years after the effective date of transfer. However, the 2-year period shall
be extended for an additional period of time not to exceed 1 year when
the 2-year time limitation for completion of residence transaction is
extended.
En Route Travel Expenses.Per diem is generally allowed for those
expenses incurred by the employee and immediate family when en route
between employee's old and new official station. Expenses are allowable
for common carrier transportation or use of a privately owned automobile
for permanent change of station travel. Allowable mileage rates are based
on the number of occupants in the automobile, as follows; employee only
15C per mile; employee and one family member 17C per mile; employee
and two family members 19C per mile and employee plus three or more
family members, 20C per mile.
Miscellaneous expense allowance is generally authorized if used for
the purpose of defraying various contingent costs associated with dis-
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bia, United States territories and possessions, the Commonwealth of
Puerto Rico, or the former Canal Zone area. Tothe extent allowable, the
Government will reimburse an employee for expenses required to be paid
by him in connection with the sale of one residence at his old official
station, for purchase (including construction) of one dwelling at his new
official station, or for the settlement of an unexpired lease. Reimbursable
expenses include broker's fees and real estate commissions and other
expenses such as advertising, selling, appraisal and certain legal and
miscellaneous costs. The aggregate amount of expenses which may be
reimbursed shall not exceed 10 percent of the actual sale price or $17,177,
whichever is less and 5 percent of the purchase price or $8,589, which-
ever is less. Expenses incurred for settling an unexpired lease involving
an employee's residence or a lot on which a mobile home used as the
employee's residence was located at the old official station are generally
reimbursable, if properly documented.
Transportation and temporary storage of household goods. The maxi-
mum weight of household goods that may be transported or stored is
limited to 18,000 pounds net weight for employees with or without immed-
iate family. There may be instances in which the weight of the profession-
al books, papers, and equipment would cause an employee's household
goods shipment to be in excess of the maximum weight allowance. In
such instances, the personally owned professional books, papers, and
equipment may be transported to the new permanent duty station as an
administrative expense of an agency.
As a general policy, the commuted rate system shall be used for trans-
portation of the employee's household goods, except that the actual
expense method may be used when the actual expense method will
result in a savings to the Government of $100 or more. Under the central-
ized household goods program, agencies are required to obtain house-
hold goods cost comparisons from GSA. Special rules apply to the trans-
portation of household goods at Government expense to, from, and
between points outside the conterminous U.S.
Under the commuted rate system employees make their own arrange-
ments for transporting household goods between points in the conter-
minous U.S. The employee selects and pays the carrier or transports his
goods by non-commercial means and is reimbursed by the Government
in accordance with schedules of commuted rates published by GSA. The
commuted rate includes costs of line haul transportation, packing,
crating, drayage incident to transportation, and other accessorial
charges. When the actual expense method is used, the Government is
responsible for selecting and dealing with carriers and providing all the
administrative services.
Temporary storage for household goods is allowed for up to 90 days.
This time period also applies when an employee returns to his/her place
of actual residence for leave before serving a new tour of duty outside
the conterminous United States either at a different post of duty or at the
same post of duty if the storage is provided instead of furnished quarters
or a quarters allowance. Upon the employee's written request, the initial
90-day period may be extended for an additional 90-day period by the
agency under certain conditions. Nontemporary storage of household
goods belonging to an employee transferred or a new appointee assign-
ed to an official station at an isolated location in the contiguous United
States shall be allowed only when it is clearly justified. Nontemporary
storage also is allowed for an employee stationed at an official station
located outside the conterminous United States or an employee or new
appointee transferred or appointed to such a station. Department of
Defense overseas teachers are provided storage allowances during the
recess period between two consecutive school years.
Advances for Relocation Allowances. If eligible, an advance of funds
may be allowed for the following relocation allowances: per diem, mile-
age and common carrier costs incident to change of station travel, house
hunting trip, temporary quarters subsistence allowance, transportation
and temporary storage (commuted rate) of household goods, transporta-
tion of mobile home, and transportation and storage of privately owned
vehicle. Advance of funds is not allowed for miscellaneous expenses,
residence transactions, or nontemporary storage.
Allowances for transportation and emergency storage of privately
owned vehicles may be authorized in connection with a transfer or assign-
ment to or return from an official station outside the contiguous United
States, including the transfer between stations, if it is in the interest of the
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Government for the?
loyee to have the use of the vehicle at the station
outside the contiguous United States.
Mobile Homes. An employee who is entitled to transportation of his
household goods, in lieu of such transportation, is entitled to an allow-
ance for the transportation of a mobile home within the contiguous
United States and Alaska for use as a residence. Allowances for transport-
ing a mobile home are in addition to payments of per diem, mileage, and
transportation expenses for the employee and immediate family. Allow-
ances are authorized for transportation by common carrier, private
means (e.g., towed by employee), or a combination of these means.
Instead of the allowance to the employee, the agency may assume direct
responsibility for transportation of the mobile home. Excluded from
reimbursements are costs of preparing mobile home for movement,
repairs, storage, insurance, etc.
Reemployment after separation. A former employee separated by rea-
son of reduction in force or transfer of function who within 1 year of the
date of separation is re-employed by an agency for a nontemporary
appointment, at a different permanent duty station from that where the
separation occurred, may be paid the relocation expenses and other allow-
ances discussed above.
Relocation Services. Within the guidelines contained in Part 12, Chap-
ter 2 of the FTR, agencies may enter into contracts with private firms to
provide relocation services to their agency and transferred employees.
Transferring employees should consult with appropriate officials of their
agencies to determine whether, and to what extent, these services are
offered.
RELOCATION INCOME TAX own ALLOWANCE
Payment of a relocation income tax (RIT) allowance is authorized to
reimburse eligible transferred employees for substantially all of the addi-
tional Federal, State, and local income taxes incurred by the employee,
or the employee and spouse if a joint tax return is filed, as a result of cer-
tain travel and transportation expenses and relocation allowances which
are furnished in kind, or for which reimbursement or an allowance is pro-
vided by the Government. Payment of a RIT allowance is authorized for
employees transferred on or after November 14, 1983, in the interest of
the Government, from one official station to another for permanent duty.
Employees should contact appropriate officials of their agencies for
further information.
ALLOWABLE EXPENSES CONNECTED WITH
DEATH OF EMPLOYEES
(Provisions contained in FTR, Chapter 3)
The General Services Administration has established provisions for
payment of allowable expenses connected with the death, whether or
not work-related, of certain employees while on (1) official travel and
temporary duty, (2) absent from duty at temporary duty stations, and (3)
at official duty stations outside the contiguous United States.
It is the responsibility of the head of an agency or his designated repre-
Washington's Top 10 Snowstorms
SINCE 1887
DATE OF STORM
INCHES OF
SNOW IN
STORM
TOTAL WINTER
SNOWFALL IN
INCHES
MEAN WINTER
TEMPERATURE
(FAHRENHEIT)
Feb. 13, 1899
12.0
54.4
35.9?
Jan. 27-28, 1922
25.0
44.5
36.2?
Jan. 30, 1930
11.5
18.1
38.6?
Dec. 17-18,1932
12.0
23.8
40.2?
Feb. 6-7, 1936
14.4
33.0
30.8?
Mar. 28-29, 1942
11.5
13.6
36.8?
Feb. 15-16, 1958
14.4
40.5
35.70
Jan. 29-30, 1966
13.8
28.4
36.7?
Feb. 18-19, 1979
18.7
34.9
35.50
Feb. 11-12, 1983
16.6
21.3
40.50
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sentative to (1) inform decedents!rof kin or legal representative of the
provisions for allowances for the preparation and transportation of the
remains and for the transportation of the immediate family and house-
hold goods of the deceased employee, (2) arrange for preparation and
transportation of the remains of the decedent when death occurs during
a travel status or at the official station outside the United States, and (3)
provide assistance for the return of the decedents immediate family and
household goods to the official residence when the decedent's official
station was outside the contiguous United States.
When an employee's death results from injuries sustained while actual-
ly performing official duty, the expenses for preparation and transporta-
tion of the remains are properly payable under provisions of 5 USC 8134.
The authorized allowances may not be denied because of the deceased
: CIA-RDP90-00530R000200340004-4
employee's eWnent to burial benefits as a veteran of the Armed
Forces of the United States.
The provisions are applicable when an employee dies while temporari-
ly on leave from his temporary duty station or official station outside the
United States (during a period of travel within or outside the United
States or while stationed outside the United States) if the temporary
absence is for the purpose of taking leave or occurs during nonworRdays
the allowable cost for the transportation of remains shall not exceed the
amount which would have been allowed if death had occurred at the tem-
porary duty station or at the official station outside the United States.
Payment of allowable expenses may be made direct to the person per-
forming the service or by reimbursement to any person making the origi-
nal payment.
INJURY COMPENSATION
The Federal Employees' Compensation Act (FECA) provides
monetary compensation, medical care and assistance, vocational
rehabilitation, and reemployment rights to Federal employees who
sustain disabling injuries as a result of their employment with the Fed-
eral Government. (The term injury also includes diseases or illness.) The
Act provides also for the payment of funeral expenses and for compen-
sation benefits to qualified survivors of the decedent in cases of
employment-related death. FECA is administered by the Office of
Workers' Compensation Programs (OWCP).
Generally, government employees injured while commuting to and
from work do not qualify for injury compensation benefits. However, in
some very special situations FECA benefits apply.
To qualify for benefits, the employee or his survivors must establish
that the injury or employee's death was causally related to his or her
employment, or that a preexisting injury or illness was accelerated or
aggravated as a result of employment. In addition, the employee or sur-
vivor must file a claim within the time limits established by the Act.
Claims for illness or deaths must be filed within 3 years of occurrence,
unless the immediate supervisor was aware of art employment-related
injury within 30 days.
If an employee's disability claim is judged valid in accordance with
FECA, no time or monetary limitations will be imposed on medical care
for the employee, as long as there is a substantiated need for treatment
of a job-related disability. Medical bills must be submitted within one
year after the calendar year in which the expense was incurred or the
claim was accepted, whichever is later.
Certain penalties for falsification of reports and failure to comply with
instructions are provided. Employees filing fraudulent claims can be
punished by a fine of not more than $10,000, or by imprisonment up to 5
years, or both.
An officer or employee of the U.S. Government responsible for making
reports as "official superior' who fails, neglects, or refuses to make a
report of injury or files a false report shall be fined not more than $500 or
imprisoned not more than 1 year, or both.
A partially disabled employee who refuses to seek or accept suitable
work is not entitled to further monetary compensation.
COVERAGE
In general, the Federal Employees' Compensation Act covers any civil-
ian officer or employee of any branch of the Government of the United
States. The Act also extends coverage to certain classes of individuals
who render a personal service to the United States.
There are several exceptions to this rule; for example, commissioned
officers of the Regular Corps of the Public Health Service and Reserve
Corps Officers who are on active duty status with the Public Health Serv-
ice are excluded from coverage under the Act. Commissioned officers of
the Environmental Science Service Administration are likewise excluded.
BENEFITS
Federal employees are eligible for four basic types of benefits under
the provisions of the FECA program: medical benefits, disability com-
pensation, vocational rehabilitation, and death benefits, which include
funeral expenses and survivor compensation. The program applies to
any disability (temporary or permanent, partial or total) incurred as a
result of an employment-related disease or condition, as well as an on-
the-job injury.
Compensation for wage loss is computed as a percentage of the
employee's salary. Compensation may not exceed a dollar amount
equal to 75 percent of the highest wage step of grade GS-15 (currently
limited to $71,377). The minimum compensation for total disability may
not be less than 75 percent of the lowest wage step of grade GS-2 (cur-
rently $10,816), edcept in cases where an employee earns less than 75
percent of the lowest wage step of grade GS-2. In such cases, the
employee is compensated at a rate equal to his or her salary. In cases
where an employee suffers death as a result of employment, monthly
payments for all beneficiaries cannot exceed 75 percent of the highest
salary permissible?highest step of a GS-15. The minimum rate of pay
used to compute death compensation is the lowest wage step of GS-2.
Medical Benefits. The FECA provides payment for any medical serv-
ices needed to provide treatment to counteract or minimize the effects of
any condition, disease, or injury judged to be causally related to employ-
ment with the Federal Government.
Compensation will be paid for first aid, medical treatment, hospitaliza-
tion, and physician's fees, as well as for any drugs, appliances, or other
supplies directed for use by a qualified physician. Payments to physici-
ans and others for medical services are su bject to a schedule of maximum
allowable charges. The employee has an initial choice of physicians.
However, once this choice is exercised, any change must be approved
by the Office of Workers Compensation Programs.
Disability Benefits. Federal employees who suffer disabilities which
are causally related to employment are eligible for one or more of several
types of monetary compensation. Disability benefits for wage loss are
paid either for total or partial disability for gainful employment. Each of
these categories will be discussed in turn.
Total Disability. If an employee suffers disability for work due to a job-
related traumatic injury, he or she is entitled to continuation of regular
pay (COP) for a period not to exceed 45 calendar days. COP is paid by
the employer. If the disability incurred extends beyond 45 days, the
employee is entitled to compensation equal to 66 2/3 percent of his or
her regular pay after a 3-day waiting period following the 45 days. If the
employee has one or more dependents, compensation will be paid at a
rate equal to 75 percent of his or her regular pay. Compensation is pay-
able for the duration of the disability. In cases where disability extends
more than 14 days beyond the termination of the 45 day continuation of
pay, or there is permanent disability, the 3-day waiting period is waived.
If an employee is unable to work as a result of an employment-related
non-traumatic disease or condition, he or she is eligible for compensa-
tion, as described above, but not entitled to COP.
Compensation payments for total disability for all gainful employ-
ment may continue as long as the disability continues. As with medical
care, there is neither a total dollar maximum, nor a time limitation on
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MERIT STAFFING AND PLACEMENT
This section of the Guide deals primarily with internal merit employment,
i.e., the placement of people who are already in the competitive service.
MERIT PROMOTION
If you are a career or career-conditional employee in the competitive civil
service, you are covered by the Federal Merit Promotion Policy. This does
not guarantee you a promotion. It does not require that any job be filled by
promotion. But it does provide that promotions will be made fairly, and that
promotion practices will support the agency's efforts to select the best
qualified persons to do its work.
AGENCY PROMOTION PROGRAMS
Since an agency can have different plans for different kinds of jobs and
locations, you should find out which plan covers the kind of jobs you want.
For example, engineering and scientific jobs may be under one plan, clerical
jobs under another, and trade and labor jobs under a third.
Responsibility for the operation of merit promotion programs rests with
individual agencies and is subject to OPM requirements. Specific procedures
that apply to promotions and internal placement are described in FPM
chapter 335 and in merit promotion plans established by the agency or
negotiated with unions.
QUALIFICATION AND EVALUATION
Standards for in-service placement actions (e.g., merit promotion) are the
same as those for initial competitive appointments. Agencies, however, are
encouraged to waive written and performance tests for in-service placement
actions. This recognizes that for employees already in the service there are
preferred alternatives to measure qualif ications other than by tests. Agencies
may make exceptions to a standard under certain conditions, (e.g. RIF,
reassignment, demotion, or return from military service).
Qualification standards used for promotion state the minimum require-
ments for successful job performance. All candidates who meet these stan-
dards and other pertinent requirements (for example, time-in-grade) are
eligible for promotion.
It is not enough, however, merely to meet minimum job requirements.
Selection must be from among the best qualified. As a result, your agency
must evaluate the eligible candidates to determine to what extent their
qualifications exceed the minimum. Then it ranks the candidates according
to their relative merit.
Evaluation must consider supervisory appraisals of performance, incen-
tive awards, and training. It may also include review of experience, tests, and
interviews. These methods must be reasonable, reliable, and related to the
job; and they must be applied fairly to all candidates.
Your experience is an important factor that your agency will consider in
evaluating you. What it will be looking at is the kind and quality of the
experience you've had, to see how well it prepares you for the job being filled.
Length of experience may be used to evaluate candidates only when it can be
shown to be a valid job-related factor for the position to be filled. There is no
assurance that an employee with more experience or service has greater
potential for more responsible work.
* For General Schedule (GS) positions the standards in "Handbook X-
118," or in examination specifications, by occupational area, or job, by grade
will apply.
? For trades and labor jobs the approved job elements, in some cases
examination specifications, in "Handbook X-118C" will apply. These hand-
books, as well as others, are available for review in the servicing personnel
office.
CONSIDERATION
Each promotion plan describes which employees must be considered
when a vacancy occurs. Depending on the grade and type of job, the area of
consideration may be the entire agency, a bureau, a field office, or any other
part of the agency broad enough to ensure the availability of high quality
candidates. If the area used does not produce enough qualified candidates,
the agency may expand it.
If your agency uses vacancy announcements, you must submit an applica-
tion to be considered. Vacancies need not be announced, however. Your
agency also can automatically consider all eligible employees in the area of
consideration by using a "skills file" that contains information about their
qualifications. Since any method requires full and current information about
employee qualifications, you should keep your records up to date.
SELECTION
After candidates are evaluated and ranked, the names of the highest
ranking people ? usually 3 to 5 ? are given to the selecting official. He or she
may choose any of these candidates, or may select someone from outside
the agency. The choice is based on the official's judgment of how well each
would perform in the job and, if applicable, his or her potential for future
advancement.
The selecting official must make the choice without favoritism or discrimi-
nation for any nonmerit reason (such as race, color, religion, sex, national
origin, politics, or age).
If you are selected fora first-level supervisory job, you will have to serve the
probationary period required for new supervisors.
CAREER PROMOTIONS AND EXCEPTIONS
Although all promotions must follow merit procedures, they don't all
require competition among employees. Some jobs are filled by "career pro-
motion." For example, if you have been selected competitively fora trainee or
understudy position or other position with known promotional potential and
you perform satisfactorily, you may be promoted without additional compe-
tition until you reach the full performance level of the position.
You may also be given a noncompetitive promotion when your job is
upgraded because of the addition of new duties and responsibilities. _
Meeting the minimum time-in-grade requirement will not automatically
entitle you to a career promotion. You will be promoted when you demon-
strate ability to work at a higher level if the agency needs to assign you higher I
level duties and if the promotion is in line with the agency's ceiling and
staffing policies.
Agencies may also make certain promotions as "exceptions" to competi-
tive promotion procedures. For example, if you have been demoted without
personal cause in your agency, such as a reduction in force, you must receive
special consideration for higher level jobs and you may be promoted without
competition to a position at a grade or level you formerly held. For practical
reasons, temporary positions of 120 days or less also may be made without
competition.
HIRING FROM THE OUTSIDE
An agency may choose this method of filling a vacant position as long as
civil service merit procedures are followed. Besides promotion, it may reas-
sign, transfer from another agency, reinstate a former Federal employee, or
appoint from a civil service list of eligibles. The agency will often consider
qualified outside candidates in addition to its own employees when there
aren't enough highly qualified candidates available within its work force, or
when a key job demands fresh viewpoints and new ideas. This flexibility is an
essential feature of merit staffing and is aimed at promotion of the best
qualified candidates.
In many cases jobs will be filled by employees in the office where a vacancy
occurs. They are frequently among the best qualified. They are familiar with
the work and their abilities are known to the selecting official.
Competitive procedures are not intended to ensure promotion but only to
ensure that all employees have a fair chance for advancement by opening up
more career opportunities.
CHECKING UP
Your agency should review its promotion program periodically to see if it is
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with veteran prefell, there is no time limit on the reinstatement eligibility,
For a former career-conditional employee without preference, the eligibility
is limited to 3 years following the date of separation. That time limit, however,
may be extended if the employee has certain intervening service, e.g., active
military service, legislative branch employment, or an appointment in the
excepted service of the executive branch.
Reinstatement may be at the same or different grade level and occupation
al classification as that the employee previously held. The individual must
meet qualification requirements. If the position is at a higher grade than the
previously held he or she must rank among the best qualified under the
agency's merit promotion plan.
Reassignment. The change of an employee, serving continuously within
the same agency, from one position to another at the same grade level and
pay in the same agency or entity.
Employment of Annuitants. A retiree receiving a Federal Civil Service
annuity may be rehired. Such employment will require termination or sus-
pension of annuity or deduction of the annuity from pay. A reemployment
annuitant may be separated at any time at the discretion of the appointing
officer. If this occurs, the individual, if another job as a reemployed annuitant
is not found, reverts back to "retired" status with an appropriate increase in
retirement pay, if any, provided by the then current regulations.
Movement of Persons Between Competitive Civil Service and Other Merit
Systems. The Office of Personnel Management and any Federal agency with
an independent Merit System (e.g., Tennessee Valley Authority, Department
of State) may enter into an agreement for movement of employees between
the competitive service and the independent merit system. The independent
agency initiates the proposal for such an agreement and the Office of
Personnel Management has criteria (e.g., merit competition, fair treatment,
classification, EEO) against which it weighs the proposal. Without such an
agreement an employee from the independent merit system, for example,
who desires to enter the competitive civil service must go through the
process of applying, taking tests if any, being rated, getting on a register,
going through the career conditional stage, etc. Movement between Postal
Service and Civil Service is governed by statutory authority (39 USC 1006)
rather than by agency agreement.
Affirmative Action. All employment actions, from recruitment outside the
Civil Service to internal employment such as promotions, must meet EEO/
Affirmative Action plans and requirements. In this connection, see "Equal
Employment Opportunity" in this Guide.
NOTE For an outline of employment matters pertaining to the Senior Executive Service,
see the section so entitled in this Guide.
meeting the needs of management and is giving full and fair consideration to
employees. Further, the Office of Personnel Management may periodically
check the program for effectiveness and compliance with merit promotion
principles.
When an improper promotion is found, the rights of all employees
involved, as well as the interest of the Government itself, are considered in
determining what corrective action should be taken.
OTHER MATTERS PERTAINING TO MERIT
STAFFING AND PLACEMENT
Detailing. This is a temporary assignment of an employee to a different
position for a specified time period with the employee returning to his or her
regular duties at the end of the time period.
The following pertains only to details within the same agency.
There are two types of details:
? Emergency. To meet emergencies caused by abnormal workload,
change in mission or organization or unanticipated absences.
? Other. Pending an official assignment, pending description and classifi-
cation of a new position, pending security clearance and for training
purposes.
Details beyond 30 days will be maintained as a permanent record in an
employee's Official Personnel Folder. Details to the same or lower classified
positions may be made in 120 day increments for up to 1 year without prior
approval of OPM. Details to higher grade positions are limited to 60 days.
Details and temporary promotions of more than 120 days must be made
under competitive procedures.
Transfer. A career or career conditional employee can change, without a
break in service of one full workday, from a position in one agency. This can
be at the same grade (lateral), a demotion or a promotion. Competitive
procedures must be used for certain transfers.
A voluntary transfer is one which the employee has sought out or for which
he or she has been recruited.
An involuntary transfer involves a transfer of function from one entity of an
agency to another in the same agency or to another agency. In either case an
employee has the option to move with the function being transferred or not. If
the decision is not to transfer with the function then the employee, at the
appointed time of the transfer of the function, is out of a job. In this instance
the employee is entitled to severance pay and certain other benefits.
Reinstatement. A former career or career-conditional employee may be
given a new competitive service appointment without competition.
For a former career employee or a former career-conditional employee
General Schedule Salary Distribution
Employees By Grade
March 31, 1987
GRADE
NUMBER
PERCENT
AVERAGE SALARY*
GS-1
1,370
0.09
$ 9,980
GS-2
11,813
0.81
11,112
GS-3
64,203
4.41
12,691
GS-4
154,711
10.62
14,727
GS-5
195,571
13.42
16,783
GS-6
95,238
6.53
18,980
GS-7
140,510
9.64
20,817
GS-8
29,931
2.05
23,618
GS-9
154,550
10.60
25,289
GS-10
29,788
2.04
28,680
GS-11
180,713
12.40
30,811
GS-12
184,365
12.65
37,243
GS-13
121,417
8.33
44,797
GS-14
62,294
4.27
53,309
GS-15
30,083
2.06
63,725
GS-16
702
0.04
71,194
GS-17
136
0.01
72,500
GS-18
68
0.00
72,500
? Includes Merit Pay Employees. Basic Pay is limited to the rate for Level V of the
Executive Schedule, which is, as of January 1, 1987, $72,500.
Distribution of Pay By Catagory
March 1987
$54,616,534.900
'Excludes U.S. Postal Service Data
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TRAINING AND DEVELOPMENT
The Government Employees Training Act, which became law on July
7, 1958, is the Government-wide authority for the training of Federal
employees.1 Before the Training Act was passed, only about 10 percent
of the Federal work force could be trained through legislation which
applied to individual agencies. The Government Employees Training
Act extended this authority to the bulk of the Federal service.2
The Act recognized the importance of self-developmental efforts of
Federal employees but, for the first time, declared it to be "necessary
and desirable in the public interest that self-education, self-improve-
ment, and self-training by such employees be supplemented and extend-
ed by Government-sponsored programs" and that these programs
should provide training "in the performance of official duties and for the
development of skills, knowledge, and abilities which will best qualify
them for the performance of official duties."
This basic authority was reinforced by Executive Order 11348 which
declared it to be the policy of the Government "to develop its employees
through the establishment and operation of progressive and efficient
training programs, thereby improving public service, increasing effici-
ency and economy, building and retaining a force of skilled and efficient
employees, and installing and using the best modern practices and
techniques in the conduct of the Government's business." This author-
ity was further strengthened by Executive Order 11478, which directs
that the Government "provide the maximum feasible opportunity to
employees to enhance their skills so that they may perform at their high-
est possible potential and advance in accordance with their abilities."
Executive Order 11491 added the requirement to train personnel and
management officials in labor management relations. The Equal Employ-
ment Opportunity Act (1972) required the establishment of training and
education programs to provide maximum opportunity for employees to
advance so as to perform at their highest potential.
Another provision of the law (5 U.S.C. 3396) deals with the develop-
ment of candidates for the Senior Executive Service and the continuing
development of senior executives. Under that law, the Office of Person-
nel Management shall establish programs for such development or
require agencies to establish such programs which meet criteria pre-
scribed by OPM. See "Senior Executive Service" in this Guide.
Those legal and regulatory bases are implemented and guidelines
provided by the Office of Personnel Management in the Federal Per-
sonnel Manual (FPM) Chapter 410, Training and Chapter 412, Execu-
tive, Management, and Supervisory Development. The responsibility for
training is shared by the employee, his/her supervisor, agency manage-
ment, the training and development office, and the Office of Personnel
Management (OPM).
Wise utilization of training resources is an effective way to better enable
the Federal work force to perform the complex tasks that are required in
the operation of the Government.
TRAINING POLICY
It is the policy of the U.S. Government to develop employees through
establishing and operating progressive, efficient training programs to
improve service, increase efficiency and economy, to build and maintain
a force of skilled and efficient employees and install and use the best
modern practices and techniques to conduct government business.
Training and development programs are administered to insure that
all eligible employees receive opportunity for consideration in selection
for training and that no discrimination in selection will be made because
of race, creed, color, national origin, sex or age.
In general, employee training and development programs may be
authorized to:
? Provide knowledge and skills that relate directly to job requirements.
? Develop skills needed to cope with reorganizations, changing
missions requirements, technology or equipment.
? Train scientists, engineers and other professionals to preclude
knowledge or skill obsolescence.
? Prepare employees with demonstrated potential for increased
responsibility in meeting future staffing requirements.
? Provide initial training when there is lack of qualified manpower.
? Implement Administration initiatives.
MEETING TRAINING NEEDS
Employee training and development needs are met by:
? Planned work experience.
? Self-development.
? Training and education provided through agency facilities, other
government facilities and non-government facilities.
Emphasis is placed on use of the most economical programs available
which would satisfy agency needs. Interagency training is to be used in
preference to training within the agency when this would result in better
training, improved service, or savings to the Government. If training is
not reasonably available within the Government (all factors considered,
including costs), agencies are to use non-Government training facilities.
DETERMINING TRAINING NEEDS AND PROGRAM
ADMINISTRATION/MANAGEMENT
Each agency, following the charter specified in FPM Chapter 410, has
established a system for determining training needs and administering/
managing the overall progam. A typical process might include the
following:
? Supervisor and employee through a performance appraisal pro-
cess?cleterm ine the need for building competence because of new
organizational missions; receipt of new equipment; the perfection
of an Individual Development Plan (IDP) or similar reasons?they
may arrive at a need for training.
? The training need is approved at a higher management level based
upon priority needs of the organization, work schedules, the avail-
ability of funds and other considerations.
? These consolidated needs are sent to the local Training and Devel-
opment Office responsible for administering the overall Training
and Development program. The people in this office develop an
overall written training plan, financial plan and budget to cover the
investment in training according to priorities established and
approved by management
? The approved IDP's provide the basis for implementing the local
procedure to determine, document, budget and schedule
employee training.
TYPES OF TRAINING PROGRAMS
Typically, an agency's overall training program might, depending on
the occupational areas in the agency, include the following:
? Orientation training for new employees.
? Technical skills training appropriate to the employee's occupa-
tional area (e.g., computer programmer, supply, procurement,
plumber, electrician, clerical)
? Professional training, education, development (e.g., scientists,
engineers, lawyers, doctors, registered nurses)
? Supervisory training (e.g., personnel administration/management;
communications, motivation, EEO, Labor Management Relations)
? Executive and Management training (e.g., concepts and theories
of such subjects as public policy formulation and implementation,
management practices, management planning, organizing and
controlling).
ADDITIONAL INFORMATION ON TRAINING
AND DEVELOPMENT
The following Questions and Answers (Q & A) are designed to further
describe and explain the program.
Q: How can I learn about training opportunities?
A: Training needs and opportunities should be regular topics of dis-
cussion between supervisors and employees, especially in the period
shortly after the annual performance review. Course announcements
are usually circulated to supervisors and posted on bulletin boards by
the training office which also maintains catalogs and course informa-
tion. You should periodically talk with your supervisor or training officer
about training opportunities available to you.
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CI: My agency does not have a training officer. Who is responsible for
training?
A: Since training is basically a supervisory responsibility, your super-
visor should be able to provide you with necessary guidance on training
matters or be able to refer you to appropriate sources.
0: What are some training programs generally made available by
employing agencies to their employees?
A: There are a wide variety of basic education, skills development,
and upward mobility programs tailored to agency needs and resources.
Some of these are the Adult Basic Education Program; the Veterans
Readjustment Appointments Program; apprenticeship programs; and
administrative, technical, and professional career ladder programs. Your
training office is the best source of information on any of these programs.
0: Can I receive training leading to promotion?
A: Yes, but only if the selection for training is made under your agen-
cy's merit promotion program.
0: Will the Government train me to take written or performance tests
so that I can make better scores?
A: No. The primary purpose of training is to improve an employee's
performance on the job.
0: is it required that training be applicable only to my present job?
A: No. You may be given training relevant to your projected future
assignments.
0: Can I take courses in basic skills such as typing, stenography, or
English?
A: Yes. Agencies may provide training in basic job-related skills. They
can also sponsor training courses in local schools under the HHS Adult
Basic Education Program. These courses may be given at Government
expense either during or after working hours.
0: Can I take college courses leading to an academic degree at Gov-
ernment expense?
A: You cannot be given training throuh non-Government facilities in
order to qualify you for appointment to a particular position for which a
degree is a basic requirement. Nor can you be given non-Government
training for the sole purpose of earning a degree. However, your agency
may finance job-related courses in non-Government facilities for the pur-
pose of improving performance. If you receive an academic degree as a
consequence of such training, it is considered as an incidental by-product.
0: Can my normal working hours be readjusted so that I can take
courses at my own expense?
A: Yes. An agency may reschedule your customary workweek to allow
you to take courses not sponsored by the agency if: additional costs to
your agency will not be incurred; completion of the course will better
equip you for work in the agency; and there will not be appreciable inter-
ruption of work.
0: As a newly hired employee can I be given training through non-
Government facilities?
A: Yes, in certain instances.
0: Canl use my agency's grievance procedure if I feel lam unjustly
denied permission to attend training?
A: Yes, if the matter cannot be resolved at the supervisory level and
your agency has not set up a separate system for this purpose.
10: I am an employee union representative. Can I train myself and
other representatives in labor-management relations on agency time?
A: Generally no. The law provides that internal business of a labor
organization shall be conducted during the non-duty hours of the employ-
ees concerned. However, situations sometimes arise in the interpreta-
tion and administration of such agreements in which management may
decide that training on agency time in areas of mutual concern to labor
and management representatives is helpful and permissable, such as
clarification of personnel policies and practices. The Comptroller Gen-
eral has ruled that such training would normally be limited to eight hours
per year per employee.
FINANCIAL CONSIDERATIONS
0: What training expenses can my agency pay?
A: Agencies are authorized to pay all or a part of the necessary
expenses of training.
0: I have heard of the no gain, no loss" policy in regard to training
expenses; what does it mean tome?
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A: Your agenc ould have a policy to assure that just and equitable
financial assistance is provided. The law leaves it up to your agency to
determine what portion of the expenses it can pay.
0: Can my agency pay for correspondence courses?
A: Yes. This type of training can be utilized the same as any other type
of training that your agency feels would be beneficial.
0: Do annual and sick leave regulations apply to me during training
assignments?
A: Yes, if salary payments continue during the training period, the
annual and sick leave regulations apply. Normal workdays falling within
academic recess periods should be charged to leave unless you devote
such periods to study or research or unless you are returned to a work
status.
CI: What is my pay status while in training?
A: You are in full pay status while participating in agency or inter-
agency training programs. However, your agency may find it necessary,
as a condition for authorizing training in non-Government facilities, to
require that you be in a less than full pay status.
0: May! get mileage allowance and parking fees for attending train-
ing at other than my normal work location oral my normal work location
outside of regular commuting hours?
A: Yes. Your agency could pay or reimburse you for such expenses
although it is not required to do so by law.
PERSONAL OBLIGATIONS
0: Is the training which receive recorded in official files?
A: Yes. Agency procedures provide that formal training sponsored by
the agency is recorded in an employee's official personnel file and the
employee receives a copy of the confirmation. You should assure your-
self, however, that significant training, whether sponsored by your agen-
cy or taken on your own, is recorded in your personnel file. These records
assist in such activities as developing training plans and goals, determin-
ing further training needs, training followup, placement actions, promo-
tions, and reassignments.
0: What Is a continued service agreement?
A: When you are assigned to training in non-Government facilities
which exceeds 80 hours within a single program, you must sign an agree-
ment to continue in your agency's employment. This is generally for at
least three times the length of the training.
1The Act has been incorporated into chapter 41 of title 5, United States Code.
2Included are civilian employees of the executive branch and also those employ-
ees of three organizations in the legislative branch: the General Accounting Office,
the Government Printing Office, and the Library of Congress. A listing of those
employees and organizations to which the law does not apply may be found in
chapter 41 of title 5, United States Code.
PRESIDENTS OF THE U.S.A.
1 George Washington
1789-1797
21 Chester A. Arthur.. 1881-1885
2 John Adams
1797-1801
22 Grover Cleveland ...
1885-1889
3 Thomas Jefferson
1801-1809
23 Benjamin Harrison..
1889-1893
4 James Madison
1809-1817
24 Grover Cleveland ...
1893-1897
5 James Monroe
1887-1825
25 Wiliam McKinley. ...
1897-1901
6 John Quincy Adams
1825-1829
26 Theodore Roosevelt .
1901-1909
7 Andrew Jackson
1829-1837
27 William H Taft
1909-1913
8 Martin Van Buren ..
1837-1841
28 Woodrow Wilson
1913-1921
9 William H. Harrison
1841
29 Warren G. Harding .
1921-1923
10 John Tyler
1841-1845
30 Calvin Coolidge ....
1923-1929
11 James Knox Polk
1845-1849
31 Herbert C Hoover ..
1929-1933
12 Zachary Taylor
1849-1850
32 F.D. Roosevelt
1933-1945
13 Millard Fillmore ...
1850-1853
33 Harry S. Truman
1945-1953
14 Franklin Pierce
1853-1857
34 D.D. Eisenhower ..
1953-1961
15 James Buchanan
1857-1861
35 John F. Kennedy ...
1961-1963
16, Abraham Lincoln
1861-1865
36 Lyndon B. Johnson .
1963-1969
17 Andrew Johnson
1865-1869
37 Richard M Nixon ..
1969-1974
18 Ulysses S Grant
1869-1877
38 Gerald R. Ford
1974-1976
19 Rutherford B. Hayes
1877-1881
39 Jimmy Carter
1977-1981
20 James A. Garfield
1881
40 Ronald W. Reagan.
1981-
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INCENTIVE AWARE
A federal agency may pay up to $25,000 in cash to an employee who
has a suggestion or invention or who makes a contribution that signifi-
cantly reduces costs or improves Government operations or services.
You can also earn honorary recognition?from a certificate of apprecia-
tion to a medal or personal letter from the President.
The Incentive Awards Program was established because the Govern-
ment believes that employees whose performance is above or beyond
job standards and performance requirements deserve special recogni-
tion. As an employee, you may benefit through earning extra cash, being
recognized by co-workers and supervisors, and having the satisfaction of
knowing that your ideas and efforts are welcome and useful. Also, you
have a better chance of getting ahead because awards are part of pro-
motion consideration.
HOW TO EARN AN AWARD
You may earn an award for your high level performance, a suggestion,
an invention, or a special act or service, as long as it benefits the Govern-
ment and is outside your normal job responsibilities, or, if it is within your
job responsibilities, it is so superior that an award is warranted. These
awards may be made to an individual employee or shared by a group.
SUGGESTION AWARDS
Federal organizations are interested in employee ideas for improving
operations and services to the public, and in rewarding those whose con-
structive suggestions are implemented. Employees within the organiza-
tion are in the best position to know where the problems are and how to
solve them, but must be encouraged by their supervisor to do so.
Employees who have had the most suggestions adopted say that the
way to succeed is to be sure that your suggestion promises solid improve-
ments such as saving time, materials, or paperwork; simplifying proced-
ures or processes; or improving services. They recommend the following
systematic approach:
? Concentrate on what you know best within your organization and
work area
? Pick a situation that needs improvement
? Write it down
? Include all the facts (what, where, when, who, how)
? Analyze these facts
? Think up a variety of possible improvements
? Choose the best
? Persuade others it is an improvement by explaining the benefits.
PERFORMANCE RECOGNITION
Special achievement awards that recognize exceptional accomplish-
ments are an important part of the program, and high level performance
or a significant achievement can earn you this recognition. Performance
contributions are eligible if they are outside of your job responsibilities or
if they are part of your job responsibilities but so exceptional that they
deserve the extra reward. Examples of the kind of performance that can
earn a special achievement award are: exemplary perfomance of assigned
tasks, overcoming unusual difficulties, exemplary or courageous handling
of an emergency connected with official employment, or creative efforts
that make important contributions to scientific research. Performance
recognition includes:
? Honorary Awards. These include awards such as the Presidents
Award for Distinguished Federal Civilian Service and Agency
medals, plaques or certificates.
? Special Achievement Awards. Special achievement awards are
cash awards based on superior performance or for a one-time
special act or service:
? Quality Step Increase. This recognition, in the form of a one step
increase in an employee's rate of basic pay, is available to GS
employees based on sustained high quality performance that is
expected to continue in the future.
HOW CASH AWARDS ARE CALCULATED
When benefits to the Government can be measured in dollars?such as
reduction in production time, staff-hours, supplies, equipment, and or
space?awards based on money saved during the first year the suggested
improvement is in effect, or the period of performance being recognized.
THESE ARE THE BENEFITS
The Incentive Awards Program benefits everyone?employees, taxpay-
ers, and the Government. In addition to the above benefits to employees,
taxpayers benefit through better Government at less cost. And the Govern-
ment benefits through increased efficienty, lower costs, and a better moti-
vated and more productive work force.
More than one out of every four suggestions processed is adopted.
The average suggestion award is $175 and the average measurable bene-
fit per adopted suggestion is $4,000. In recent years, total measurable
benefits from suggestions have averaged $165 million annually. The high-
est award for a suggestion was $35,000 and for an invention, $25,000.
The highest award for performance, $35,000 was granted in October
1979 when, for the first time in the history of the awards program, the
President granted a cash award, in addition to the award granted by the
agency, to 42 Forest Service employees for saving the Government over
$120 million.
Each year over 200,000 employees receive a special achievement
award. The average cash award for a special achievement is about $650,
and, in recent years, total measurable benefits from special achievement
contributions has averaged approximately $1 billion annually.
A POSITIVE APPROACH TO INCENTIVE AWARDS
OPM regulations on incentive awards, published in the Federal Register
October 12,1979, make it easier for supervisors to reward employees who
have done "more than the job requires."
The purpose of the awards program is as follows: "The Government
Employee's Incentive Awards Program is designed to improve Govern-
ment operations and services. Its purpose is to motivate employees to
increase productivity and creativity by rewarding those whose job per-
formance and adopted ideas benefit the Government and are substantial-
ly above normal job requirements and performance standards.
If awards are to be used effectively to improve individual and organiza-
tional productivity, they must be granted in a timely manner and not be
viewed as an overwhelming documentation burden by nominating offi-
cials. Also, if the awards program is to become a motivating force, each
recommending official must exercise integrity, granting awards openly
when they are fully deserved, so that the program has credibility.
OTHER AWARDS AND RECOGNITION
Listed below are a few additional awards and recognition that may be
granted to civilian employees of the federal government.
? Letter of Appreciation. A letter of appreciation is granted for work
performed better than normally expected, for doing a special
assignment or performing in an unusual work situation. This is the
only award given directly to the employee and is not filed in his or
her personnel folder.
? Letter of Commendation. This letter is granted for unusual work
performance or for an act or service that clearly exceeds that nor-
mally expected. A copy of the letter is presented to the employee
and a copy is filed in the personnel folder.
? Career Service Recognition. This recognition is given in recogni-
tion of from 10 to 50 years of federal service, and upon retirement
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seas, their wages may be set in a similar way or they may be based on
local rates.
Quarters Allowance. In foreign areas, employees are sometimes
housed in Government quarters. If Government housing is not provided,
a quarters allowance is paid which covers in large part the cost of rent
? and utilities. In most United States areas, Government quarters are not
provided and no quarters allowance is paid.
Federal Employment Benefits. In general, Federal employees are
entitled to such liberal benefits as paid vacations, sick leave with pay,
and retirement coverage. They are eligible for life insurance and health
benefits partially financed by the Government. Employees serving over-
seas also normally receive special benefits such as free travel for them-
? selves and their dependents, free transportation or storage for their house-
hold goods, and additional paid vacations with free travel to their homes
in the United States between tours of duty. Also, the United States Govern-
ment operates dependents' schools in many areas and provides educa-
tional opportunities for children which are comparable to those offered
in the better schools in the United States.
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Veteran Preferencgleterans must be given consideration by appoint-
ing officers in the filling of overseas positions in accordance with the
provisions of the Veterans' Preference Act.
Reemployment Rights. An employee who accepts a federal appoint-
ment in an overseas area, leaving a position in the U.S. Federal establish-
ments in the United States, is entitled upon termination of the overseas
appointment (for any reason other than his/her own misconduct or
delinquency) to be reinstated in his/her former position, or in one of like
seniority, status, and pay in the same agency he/she left. If the func-
tion(s) with which the employee's position were identified have been
transferred to another agency, the employee's right to reinstatement is
in the gaining agency.
The person designated to fill the vacated stateside position, does so
with the understanding that he/she will be transferred back to his/her
former position, if previously employed by the federal government. If a
new employee hired to fill the position finds that no position can be
found, normal RIF procedures go into effect. (See Chapter 352 FPM)
EMPLOYMENT OF RETIRED MILITARY PERSONNEL
The Dual Compensation Act (P.L. 88-448) overhauled antiquated dual-
pay, dual-employment laws governing the employment of retired military
personnel in Federal civilian jobs and the employment of Government
workers in more than one Federal job.
Specifically, the law contains these major provisions:
1. All retired military officers are allowed to take Federal civilian jobs.
2. All retired military personnel who take Government civilian jobs
receive their full civilian salary. However, most retired regular officers and
warrant officers are subject to a reduction in their military retirement pay.
3. Retired regular officers and warrant officers subject to this reduc-
tion receive only a portion of their military retired pay plus 50 percent of
any remainder.
? The 1964 Act now limits retired pay to the first $7,402.41 for all
retirees effective December 1, 1987.
? The reduction under the 1964 Act applies against retired pay
before the annual rate is combined with civilian salary.
The 1978 Act reduces retired pay by the amount (if any) the
combined rates of federal civilian salary and retired pay now
exceed $72,500 (as of January 1, 1988).
4. Retired reserve officers, all retired enlisted personnel (reserve and
regular), and regular officers retired for combat disability keep all their
retired pay when they work in Federal civilian jobs, as was the case
under prior laws, unless they retired after January 11, 1979 and their
combined retired pay and civilian salary exceed the $72,500 cap.
5. With certain exceptions, military retirees are not entitled to place-
ment in the veteran preference subgroup of their tenure group for reduc-
tion-in-force purposes, and they get credit only for length of military
service performed during a war or in any campaign or expedition for
which a campaign badge has been issued. Excepted from this provision
are military personnel retired on the basis of combat disability, those
whose retirement is based on less than 20 years of active service, and
those employed on November 30, 1964 in positions in the Federal civilian
service to which the laws on veteran preference apply and who have not
had a break in service of more than 30 days since then. Generally, mili-
tary retirees get veteran preference in examinations and appointments
even though they do not get preference in reductions in force.
6. Credit for military service of military retirees for annual leave pur-
poses is limited to service during a war, or in a campaign or expedition
for which a campaign badge has been issued, unless the member was
retired for combat disability or was employed on November 30, 1964 in a
Federal civilian position to which the annual and sick leave laws apply,
and has not had a break in service of more than 30 days since that date.
7. Retirees from the armed forces must wait at least 180 days after their
retirement before taking a civilian job in any branch of the Defense
Department unless prior approval is received from the service Secretary.
This restriction does not apply to shortage-category jobs or in a national
emergency.
Necessary regulations have been issued under the laws which pertain
to the benefits, rights, and credits of those employed in Government
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who are subject to the dual compensation laws.
The Civil Service Reform Act of 1978, P.L. 95-454, modified some of
these provisions. Specifically, the Law establishes a limitation on the
combined military retired pay and Federal civil service salary received
by military retirees of an amount not exceeding the pay for Executive
Level V, ($72,500 effective 1 January 1988). Officers and enlisted person-
nel who first receive retired or retainer pay after 11 January 1979 and
who become federal employees can not be paid more than the basic pay
of Level V. This limit will be increased whenever the pay for Level V is
increased.
When the combined pay (military retired pay and federal wages)
exceed the limit, the retired or retainer pay will be reduced accordingly.
The Omnibus Budget Reconciliation Act of 1982, P.L. 97-253, limited
the retired pay of non-disabled members under age 62 to 50% of the pro-
jected CPI increase for FY 1983, 1984 and 1985. Therefore, two dual
compensation ceilings were required?one for over 62 or on military
disability and another for non-disability retirees under age 62. The Act
also provided that all military retirees with civil service jobs would have
the amounts of any cost-of-living increase in retired pay deducted from
their civil service salary (unless retired for disability incurred in the line
of duty during a period of war or armed conflict)
P.L. 98-270, the Omnibus Budget Reconciliation Act of 1983, provided
that future COLAs will be effective December 1 of each year and payable
in the January check; the COLA will be based on the change in the CPI
between the third quarter average of the calendar year in which it is to
take effect and the third quarter average of the preceding calendar year
and, the COLAs which were to be effective in May of 1984 and June of
1985 were eliminated.
The Deficit Reduction Act of 1984, P.L. 98-369, repealed the provision
which reduced the civil service pay of military retirees by the amount of
any COLA increase and the Second Supplemental Appropriations Act
of 1984, P.L. 98-396, did away with the "half COLA" provisions which limit-
ed cost of living increases for retirees under age 62.
P.L. 99-509, the Omnibus Budget Reconciliation Act of 1986, insured
a COLA for retirees for 1987,1988 and 1989 by exempting such increases
from mandatory budget cuts resulting from the Gramm-Rudman-
Hollings deficit reduction amendment. The COLA, effective December
1, 1986 was 1.3 percent and was included in the January paycheck for
retirees and survivors annuitants.
CREDITING OF MILITARY SERVICE rCatch 62")
Generally, military service is creditable for Civil Service retirement,
however, since it is also creditable for Social Security benefits (after 31
December 1956), the law requires that those retirees who combine mili-
tary service with civil service for a single annuity, have their civil service
retirement annuity recomputed at age 62 when they become eligible for
Social Security. This has often resulted in a significant reduction of retire-
ment benefits.
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IIIP
The Budget Reconciliation Act of 1982 (P.L. 97-253, 8 September
1982), provided some relief for the majority of those subject to the "Catch
62" provisions.
SERVICE CREDIT DEPOSIT FOR POST-1956 MILITARY SERVICE
Employed Before October 1, 1982. Individuals who first became
employed in a position under the CSRS System before October 1, 1982,
have the option of either (1) making the deposit for post-1956 military
service or (2) receiving credit as in the past (without making the deposit)
and having their annuity recomputed at age 62 to eliminate post-1956
military service if they are eligible for Social Security old-age or survivor
benefits. Included are individuals who were, previous to October 1,1982,
covered under the CSRS System and again employed under the CSRS
System on or after October 1, 1982.
Employed on or Atter October 1, 1982. Individuals who first became
employed under the CSRS System on or after October 1, 1982, will
receive credit for their post-1956 military service only if a deposit for the
military service is made.
Individuals hired on or after January 1,1984 who are subject to the new
retirement system (FERS) will receive credit for their post-1956 military
service only if a deposit is made under FERS.
Amount of Deposit. The deposit under and CSR offset will be 7 per-
cent of basic military pay received, plus interest. The interest-free grace
period ended September 30, 1986.
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For indivigs mandatorily subject to FERS, the deposit will be 3% of
basic military pay. The interest-free grace period will extend until either
January 1,1989 or 2 years after first coverage under FERS, whichever is
later.
Payment Procedures. Employees who wish to make service credit
deposits for their post-1956 service may elect, at their option to make
such deposits in either a lump-sum payment, installment payments, or
through payroll deductions.
Employees who wish to make a service credit deposit should evaluate
their own individual situation to determine whether such deposits would
prove advantageous.
Employees interested in making such a deposit should contact their
personnel office for additional instructions.
Individuals who are mandatorily covered by FERS and wish to make
post-1985 military deposit should contact their personnel office for
instructions.
NOTE: Once an employee has made a service credit deposit, only the Office of
Personnel Management has the authority to refund service credit deposits.
Detailed information regarding the Army, Navy, Air Force, Marine
Corps and Coast Guard Reserves may be found in the RESERVE
FORCES ALMANAC, available from Uniformed Services Almanac,
P.O. Box 76, Dept. G, Washington, D.C. 20044. 1987 Edition $4.25.
VETERANS PREFERENCE IN GOVERNMENT EMPLOYMENT
The principle of veterans preference was written into law over a
century ago when, in 1865, Congress gave preference to veterans with
service-incurred disabilities. Since then the national policy has been
broadened and strengthened bylaw, executive order and regulation. In
1944, the various statutes, White House directives and Civil Service
Commission regulations were unified into a single law, known as the
Veterans Preference Act, covering the rights of veterans (including
certain spouses, widows or widowers, and mothers of veterans).
STATUTORY CHANGES
Under the Veterans Education and Employment Assistance Act of 1976
(PL 94-502), individuals entering the military services after 14 October
1976 will not receive veterans preference unless they serve in a cam-
paign or war or become disabled during or as a result of military service.
Further, a 2 year minimum active duty service condition for those enter-
ing military service after September 7, 1980 must be met. The minimum
active duty service condition does not apply to disabled veterans.
The Civil Service Reform Act of 1978 (PL 95-454) contains additional
provisions regarding Veterans' Preference in Government employment.
As of January 1979, a disabled veteran with a compensable service-
connected disability of 30 percent or more, who meets the appropriate
qualifications standard, may be given a noncompetitive appointment
which may lead to conversion to career or career-conditional employ-
ment. Ten point veterans with disability ratings of 30 percent or higher
and whose performance has been rated acceptable are entitled to pref-
erence in retention over other competing veterans and nonveterans.
Veterans with disabilities of 30% or more also have the right to be noti-
fied in advance and respond to any decision in which they are consider-
ed ineligible for a position due to physical requirements of the position;
they would be passed over by an agency in the course of filling a position
from civil service certificates; or they are deemed ineligible for retention
in a position during a reduction-in-force due to the physical require-
ments of the position.
Effective 1 October 1980, veterans' preference was eliminated except
in certain adverse action appeals, for non-disabled military retirees who
retire from the service at or above the rank of Major or Lt. Commander.
PREFERENCE IN LAYOFFS
In Government reduction-in-force programs brought about by econ-
omy or other factors, Congress has given veterans (except for certain
retired military personnel?see "Employment of Retired Military Per-
sonnel") in the Federal service job priority rights over certain non-vet-
erans.
Veterans with career civil service status have job retention rights over
all other Federal workers in the same competitive level and area.
Veterans with career-conditional or indefinite status do not have job
retention rights over non-veterans who have career civil service status.
However, they do have retention rights over non-veteran workers with
the same status. Veterans with TAPER appointments do not have job
status, but they do have retention rights over nonveteran TAPERS.
Thus, between two persons who are doing similar work in the same
pay grade and serving under similar conditions, the veteran is retained
over the non-veteran if one must go.
No job retention rights are given to employees?veterans or non-vet-
erans?who have temporary appointments with definite time limitations.
Veterans have appeal rights on adverse agency actions. A veteran in
the competitive service who has completed a probationary penod. and a
veteran in the excepted service who has completed one year of current
continuous service, are entitled to appeal to the Merit Systems Protec-
tion Board the following actions taken by his Agency: removal. suspen-
sion for more than 30 days, furlough without pay or demotion. If the
Board rules in favor of the veteran, its decision is binding on the agency.
PREFERENCE IN HIRING
In civil service examinations, 5 points are added to the earned rating of
an applicant who makes a passing grade and who was nonorably
separated from the Armed Forces of the United States. (a) after active
duty any time between April 6, 1917, and July 2, 1921. or any time
between December 7, 1941, and July 1, 1955; (b) after more than 180
consecutive days of active duty since January 31. 1955, but not after
October 14, 1976 (but not counting service during an initial period of
active duty for training under the "six-month" Reserve or National Guard
programs); or (c) after active duty in any campaign or expedition for
which a campaign badge has been authorized. However. a 2 year
minimum active duty service condition for those entering military ser-
vice after September 7, 1980 must be met. The minimum active duty
service condition does not apply for disabled veterans.
Ten points are added to the earned rating of an applicant wri0 makes a
passing grade and who was honorably separated as a disabled veteran
(regardless of the time active duty was performed), or as a veteran
awarded the Purple Heart. Ten points are also added in some cases to
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