THE FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM QUESTIONS AND ANSWERS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03721A000600010020-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 38
• Document Creation Date: December 27, 2016
• Document Release Date: June 15, 2012
• Sequence Number: 20
• Publication Date: May 1, 1962
• Content Type: REPORT

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THE
FOREIGN SERVICE RETIREMENT
AND DISABILITY SYSTEM
Questions and Answers
DEPARTMENT OF STATE
MAY 1962
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Foreword
This pamphlet is designed to answer the most frequently asked
questions about the Foreign Service Retirement and Disability
System, and explains in simple terms the operation of this System
and the benefits it provides for participants and their families.
This information is based on the law as amended through September
1961. In preparing this information, we have drawn extensively
on the Civil Service Commission's Retirement Pamphlet No. 18,
March 1961 for both format and content since there are many
basic similarities in the two retirement systems.
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Contents
Page
I. The Foreign Service Retirement and Disability System
1
II. The Foreign Service Retirement and Disability Fund
1
III. Membership
IV. Crediting of Civilian Service
3
V. Crediting of Military Service
5
VI. Voluntary Contributions
6
VII. Retirement Eligibility
8
VIII. Types of Annuities
11
IX. Annuity Computations
13
X. Reemployment of Foreign Service Annuitants
16
XL Death Benefits
17
XII. Refunds
20
XIII. Miscellaneous
21
Appendix
24
Index
25
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I. The Foreign Service Retirement and Disability System
1. What is the Foreign Service Re-
tirement and Disability System?
This is a retirement system originally
authorized by the Foreign Service Act
of 1924 (the Rogers Act) for Foreign
Service officers.
2. What is the current statutory
basis for the Foreign Service Re-
tirement and Disability System?
The System is operated under the
authority of the provisions of Title
VIII of the Foreign Service Act of
1946, as amended.
II. The Foreign Service Retirement and Disability Fund
3. What is the Foreign Service Re-
tirement and Disability Fund?
It is the accumulation of money held
in trust by the United States Treasury
for the purpose of paying annuity,
refund, death, and separation benefits
to persons entitled to them.
4. Where does this money come
from?
It comes from four main sources: (1)
deductions from the salaries of partici-
pants in the Foreign Service Retire-
ment and Disability System; (2) con-
tribution by the Department in
amounts which match the deductions
from participants' salaries; (3) Gov-
ernment appropriations; and (4) inter-
est earned through investment of
money received from the first three
sources.
5. How is the money invested?
The Secretary of the Treasury invests
in interest-bearing securities of the
United States such portions as are not
needed immediately for the payment of
benefits.
1
6. How much is deducted from the
salary of participants in this re-
tirement system?
Six and one-half percent of basic
salary.
7. What is meant by "basic salary"?
Basic salary is the pay or compensation
set by law or regulation for Foreign
Service officers and employees. It
does not include charg?ay, overtime
pay, military pay, cash awards for
suggestions or superior accomplish-
ments, extra pay for night and holiday
work, overseas allowances and differ-
entials, or other compensation given
in addition to the basic salary of the
particular participant. It does in-
clude periodic salary increases, meri-
torious salary increases, salary re-
ceived as chief of mission, or salary
received while assigned to a position
in the Department or any other agency
where the officer or employee is en-
titled to receive the salary of the
position to which assigned in lieu of
his Foreign Service salary.
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8. Has this deduction rate (em-
ployee contribution) always
been 634 percent?
No. A rate of 5 percent was orig-
inally established by the Act of May
24, 1924. From July 1, 1924, to
August 5, 1955, all participants were
required to contribute 5 percent of
basic salary not in excess of:
a. $9,000 for the period July 1, 1924,
through June 30, 1931;
b. $10,000 for the period July 1, 1931,
through November 12, 1946; and
c. $13,500 for the period November
13, 1946, through August 4, 1955.
Beginning August 5, 1955, the com-
pulsory contribution was required on
the full basic salary received. The
Foreign Service Act amendments of
1960 increased this rate to 634 percent
effective October 16, 1960.
9. How is the Government con-
tribution to the Fund made?
From the time of the enactment of
the Act of May 24, 1924, the Gov-
ernment contribution has been ob-
tained from the Congress in the form
of appropriations estimated to be
required by the Fund. Such esti-
mates are prepared annually by the
Secretary of the Treasury and included
in the Department of State's budget
requests. Effective July 1, 1961, a
sum equal to the contribution made
by each employee (634 percent) is
contributed from the appropriation
used for the payment of the par-
ticipant's salary.
10. May a participant pay money
other than compulsory salary
deductions into the retirement
Fund?
Yes. He must pay to cover past
service for which no deductions were
made to the Fund if such service is
to be used. He may also make addi-
tional payments known as voluntary
contributions to provide a larger
annuity, or to be returned to him in
lump sum at time of retirement.
III. Membership
11. Who are participants in the
Foreign Service Retirement and
Disability System?
The following persons are participants
and are entitled to the benefits of the
System: (a) all Foreign Service officers;
(b) all other persons making contribu-
tions to the Fund on the effective date
of the Foreign Service Act of 1946
(November 13, 1946); (c) any chief of
mission who is not otherwise entitled
to be a participant and who fulfills
the following conditions:
? has served as chief of mission for an
aggregate period of 20 years or more
2
exclusive of extra service credit
granted for
posts;
? has paid into the Fund a special con-
tribution for each year of such service;
and (d) any Foreign Service staff officer
or employee appointed by the Secre-
tary of State who has completed at
least 10 years of continuous service in
the Department's Foreign Service,
exclusive of military service, and ex-
clusive of leave without pay in excess
of 6 months in any calendar year.
12. Will Foreign Service staff offi-
cers and employees who do not
service in unhealthful
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yet have 10 years of continuous
service subsequently be in-
cluded in the Foreign Service
Retirement and Disability Sys-
tem as soon as they have com-
pleted 10 years of continuous
service in the Foreign Service?
Yes.
13. Are persons in the military
service of the United States
members of the Foreign Service
Retirement and Disability Sys-
tem?
Not by reason of military service.
However, participants in the System
who leave the Service to enter the
Armed Forces for active duty are con-
sidered to be on furlough and retain
their status as participmts while in
the military service. No contribution
is made to the Fund by a participant
during a period of military service.
IV. Crediting of Civilian Service
14. What types of civilian service
may be credited for retirement
purposes under the Foreign
Service Retirement and Dis-
ability System?
Credit is given for all service performed
as an employee of the Federal Govern-
ment (including the Foreign Service)
or of the District of Columbia Gov-
ernment provided appropriate contri-
butions are made to the Fund to cover
such service. There is one minor
exception to this rule: No credit may
be allowed for service in which an em-
ployee acquired social security coverage
under the Social Security Amendments of
1954. This exception applies only to
service of a comparatively few indi-
viduals most of whom are temporary
or indefinite employees in the field
service of the Post Office Department.
15. Must the service involved be
consecutive, or may separate
periods of service be counted?
All service is creditable, regardless of
breaks in employment.
16. May credit be allowed for
periods of service during which
3
no retirement deductions were
taken?
Yes, provided the participant became
a member of the retirement System
after such service was performed, and
provided special contribution is made
to the Fund to cover such service.
17. How is credit given for service
which was performed before
the establishment of the For-
eign Service Retirement and
Disability System?
This service is free. Full credit is
allowed without any deposit for
Federal Service performed before July
1, 1924 (the date deductions began
under the Act of May 24, 1924).
18. Is special contribution required
to obtain credit for periods of
service performed after estab-
lishment of the System for
which no retirement deduc-
tions were taken?
Yes. If all service credit is not pur-
chased by special contribution only
that portion as is covered by special
contribution can be used.
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19. Is extra credit allowed for
service at "unhealthful" posts?
Yes. Unless a participant received a
salary differential in lieu of extra
service credit, time served at such
posts is counted as time and a half.
(Salary differential has been optional
since April 5, 1955.)
20. In case of purchasing or repur-
chasing service at unhealthful
posts how is the special con-
tribution made?
It is made the same as for any other
special contribution?for straight
time only.
21. How is the amount of special
contribution determined?
The special contribution is made up
of 5 percent of the basic annual salary
plus interest compounded annually at
4 percent to date payment is com-
pleted, for each year of service for
which credit is sought subsequent to
July 1, 1924, and prior to October 16,
1960, and 6% percent for any period
on or after October 16, 1960.
22. Is it to a participant's advantage
to make the special contribu-
tion?
Yes, unless he already has the maxi-
mum of 35 years' service. Under the
provisions of the Foreign Service Re-
tirement and Disability System, prior
service may not be used unless special
contribution is made to cover such
service.
4
23. When must the special contri-
bution be made to the Fund to
cover prior service?
Special contribution must be made to
the Fund prior to retirement or separa-
tion from the Service.
24. Does the date of payment affect
the amount of special contri-
bution?
Yes. The longer the payment is de-
layed the more it will cost because of
the accrual of interest.
25. May the special contribution
be made in installment pay-
ments?
Payment may be made in a lump sum
or, if the participant so desires, in
installments or payroll allotments in
multiples of $25.
26. If a person is appointed in the
Foreign Service in circum-
stances which entitle him to
participate in the Foreign Serv-
ice Retirement and Disability
System directly from other Fed-
eral Service where he is covered
by another Government retire-
ment system, how is the special
contribution covering the prior
service handled?
In such circumstances the person's
total contributions and deposits in the
other retirement system including
interest accrued thereon, except volun-
tary contributions, are transferred to
the Foreign Service Retirement and
Disability Fund effective as of the date
such person becomes a participant in
the System.
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V. Crediting of Military Service
27. What does the term "military
service" cover?
It covers all active and honorable
military or naval service in the Army,
Navy, Marine Corps, Air Force, or
the Coast Guard of the United States.
28. Is military service creditable
under the Foreign Service Re-
tirement and Disability System? s
As a general rule, military service
creditable provided it was active
service, was terminated under honor-
able conditions, and was performed
before separation as a participant in
the System.
29. Is a special contribution to the
Fund required for military serv-
ice?
No. Full credit is given for military
service without any special contribu-
tion to the retirement Fund.
30. Does the receipt of military
retired pay bar the crediting
of military service under the
System?
Yes. However, credit may be allowed
if retired pay is (a) based on a dis-
ability incurred in combat with an
enemy of the United States or caused
by an instrument of war and incurred
in the line of duty; or (b) granted under
the provisions of Chapter 67, Title
10, U.S. Code, formerly Title III of
the Act of June 29, 1948, P.L. 810,
80th Congress. (See question 31.)
service instead of disability. The
basic requirement is the attainment of
age 60 with the completion of 20
years' service.
32. Is it possible to receive mili-
tary retired pay and an annuity
from the Foreign Service Re-
tirement and Disability Fund
at the same time, using the
same period of military service?
Yes, under the conditions outlined in
question 30. Only the portion of the
military service which was in active
status however, may be crearel
tovi.. retirement under the System.
33. What credit is given if a partici-
pant in the Foreign Service Re-
tirement and Disability System
is placed on furlough or leave
without pay to enter the mili-
tary service?
The entire period is credited without
special contribution.
34. May a participant receive credit
for service with the National
Guard?
Only when ordered into the military
service of the United States.
35. May military furlough periods
be credited as service if credit
for the military service itself
is barred because the partici-
pant is receiving military re-
tired pay or is entitled to social
security?
31. What is Chapter 67, Title 10, No.
U.S. Code?
It is a provision granting retired pay
to members of reserve components of
the Armed Forces on the basis of
5
632820-62---2
36. Do the provisions on the credit-
ing of military service which
are explained in this section
apply to service performed with
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Yes.
women's organizations such as
the WAC, WAVES, etc.?
37. Is service with the WAAC cred-
itable?
Yes. However, it is creditable as
civilian rather than as military service.
VI. Voluntary Contributions
38. May a participant make con-
tribution to the retirement Fund
in addition to the regular 61/2
percent deduction from salary?
Yes. Voluntary contributions may
be made for the purpose of increasing
the annuity at the time of retirement.
Any participant may make voluntary
contributions by payroll deductions to
the Fund during any given year in
amounts of multiples of 1 percent, but
not exceeding 10 percent of his basic
annual salary.
39. What happens if a participant
who has made voluntary con-
tributions is separated from the
Service?
Voluntary contributions with accrued
interest will be refunded to the partici-
pant at the time of separation. They
may not be withdrawn except at time
of retirement or when the participant
is separated for reasons other than re-
tirement on an annuity. (See ques-
tion 40.)
40. What disposition is made of
the voluntary contribution ac-
count if a participant dies in
service?
The entire amount of his contribution
and interest is payable immediately in
a lump sum to the designated benefi-
ciary, or if there is no designated
beneficiary payment is made in ac-
cordance with the order of precedence
set out in question 125. No part of
this account may be used in corn-
6
puting the annuity which may be
due a survivor.
41. Is the privilege of making
voluntary contributions open
to all participants?
Yes.
42. For what periods may a par-
ticipant make voluntary con-
tributions?
He may make voluntary contributions
based on civilian salary received sub-
sequent to July 1, 1939, the beginning
date of voluntary contributions,
provided special contribution has
also been made if service prior to
becoming a participant is involved.
Voluntary contributions may not be
made for periods of leave without pay
or military furlough.
43. May an employee make volun-
tary contributions based on his
military pay?
Generally no. However, in those
cases where a participant, prior to
April 1, 1948, made special contribu-
tion for any period of military service,
he may also make voluntary con-
tributions for such period. (Special
contribution made after April 1, 1948,
to obtain service credit for military
service was refunded upon applica-
tion by the participant?see Sec. 8
of P.L. 84-22.)
44. May a participant make vol-
untary contributions after sep-
aration from the Service?
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ADDITIONAL ANNUITY BASED ON VOLUNTARY CONTRIBUTIONS
A. Participant elects a monthly single life income, with no guaranteed
return of unexpended principal:
Example:
Male officer age 60 retires with $9,863.46 of accumulated voluntary
contributions. His purchasable monthly income would be $64.90.
B. Participant elects monthly single life income, with guaranteed return
of unexpended principal. Under present interpretation, retiring
officer may invest all, any part, or none of his accumulated contribu-
tions as illustrated below:
Male officer age 58 retires with $10,486.39 of accumulated voluntary
contributions.
Example I: Invests all?monthly income $56.21.
Example 2: Invests part (say $5,486.39) with guaranteed return of
unexpended principal and leaves $5,000 as a lump sum
payable upon death. Monthly income $41.74.
Example 3: Invests part (say $5,486.39) with no guaranteed return of
unexpended principal and leaves $5,000 as a lump sum
payable upon death. Monthly income $46.13.
Example 4: Leaves entire amount as lump sum payable upon death.
Monthly income $25.86.
C. Male officer retires at age 58 with voluntary contributions of $10,000.
He could purchase for himself a monthly income of $61.60. Instead
he decides to elect a joint and survivor annuity with no guaranteed
return. His wife is 56 years of age.
Example 1: If he elects an equal annuity for himself and his wife, the
amount would be $45.97.
Example 2: If he elects that his wife's annuity be equal to one-half of
his reduced (additional) annuity, his additional annuity
would be $52.66 per month and his wife's annuity would
be $26.33 per month.
No. These contributions may be chase increases his annuity as ex-
made only while the participant is plained in question 46.
still employed. 46. How much additional annuity
45. How do voluntary contribu-
may be purchased with the
voluntary contribution account?
tions made by a participant
affect his annuity? The amount of additional annuity
purchasable with voluntary contribu-
The additional annuity which the tions is calculated upon tables of
voluntary contribution account (con- mortality prescribed from time to
tributions with interest) will pur- time by the Secretary of the Treasury
7
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for this purpose, and it varies ac-
cording to age of participant, age of
beneficiary, if any, whether all or a
part of the amount in the Fund is
invested, and whether a guaranteed
return of the unexpended principal is
elected as shown by the examples
on page 7.
47. Is it possible for a retiring
participant to name a different
beneficiary to receive either a
cash payment or a life annuity
based on his voluntary con-
tributions?
Yes.
48. Has the retiring participant a
choice as to the type of annuity
purchased with his voluntary
contribution account?
Yes. He may use the entire amount to
purchase annuity for himself or he may
share it with a survivor annuitant.
(See table for question 46 on page 7.)
49. May a participant withdraw his
voluntary contribution ac-
count?
Only upon separation by retirement or
otherwise. (See questions 39 and
40.)
50. May a participant withdraw his
voluntary contribution account
if upon separation he is eligible
for an immediate annuity?
Yes. (See question 49.)
VII. Retirement Eligibility
51. How many kinds of retirement
are provided for in the Foreign
Service Retirement and Dis-
ability System?
Four. They are known as voluntary,
involunta_rv, disability, and deferred
- _ .
(d iic?ontinued service) retirement.
52. Is there a minimum require-
ment as to the amount of civil-
ian service?
Yes Five years of civilian service
are required before annuity benefits
may be paid in any case.
53. Is there a mandatory retirement
age under the Foreign Service
Retirement and Disability Sys-
tem?
Yes. Generally, all participants other
than career ministers or career ambas-
sadors are mandatorily retired for
age upon reaching 60. Career min-
isters and career ambassadors are
8
subject to mandatory retirement upon
reaching age 65 (Exemptions from
mandatory retirement are described
in question 56.)
54. Is there a different mandatory
retirement age for Foreign
Service staff personnel who
become participants in this
System?
The earliest mandatory retirement
date for Foreign Service staff personnel
who become participants in the Sys-
tem will be October 31, 1963, on which
date those who are age 64 or older will
be retired. Subsequently, a graduated
schedule of such retirements of staff
participants will be in effect for about
4 years. Thereafter mandatory retire-
ment will be at age 60.
55. May the services of participants
be extended beyond the normal
mandatory age?
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Yes; if the Secretary deems it to be in
the public interest to continue the
services of a participant who has
reached mandatory retirement age,
such retirement may be deferred for
a period not to exceed 5 years.
56. Are any participants exempt
from mandatory retirement for
age?
Yes. A participant who is serving as
chief of mission or in any other posi-
tion to which he has been specifically
appointed by the President by and
with the advice and consent of the
Senate, such as Assistant Secretary of
State, may continue in service without
regard to mandatory retirement pro-
visions, so long as he serves in such
capacity.
57. When does the annuity begin
for a participant who has sepa-
rated and who is eligible for an
immediate annuity?
It begins on the first of the month
foil owing separation in all cases ex-
cept retirements for disability. In
those cases the annuity begins the first
of the month after termination of pay
status, or if the participant becomes
disabled while in a non-pay status, the
annuity begins on the first day of the
month after disability is determined.
58. Under what conditions may a
participant retire for disability?
Any participant who has 5 years of
creditable service toward retirement,
excluding military service, who be-
comes totally disabled or incapacitated
for useful and efficient service by reason
of disease, illness or injury not due
to vicious habits, intemperance, or
willful misconduct on his part may be
retired on an immediate annuity.
59. Is there a "minimum guaran-
teed" disability annuity?
There is not a guaranteed minimum in
all cases, but depending on age of
participant a minimum of 20 years is
sometimes used in computing the
annuity as described in question 95.
60. Who determines whether a
participant is totally disabled
so as to qualify for annuity?
Disability is determined by the Secre-
tary, or his designated representative,
on the basis of advice provided by
one or more duly qualified physicians
or surgeons designated to conduct
examinations.
61. What determinations are made
regarding permanent disability?
Unless disability is determined to be
permanent at time of retirement,
examinations by duly qualified physi-
cians or surgeons designated by the
Secretary are made annually until the
annuitant has reached the mandatory
retirement age for his class in the
Service unless an earlier determination
of permanent disability is made.
62. Must the annuitant pay for
these medical examinations?
No. Costs of these examinations,
including reasonable traveling and
other expenses incurred in order to
submit to examinations, are paid out
of the Fund.
63. What happens if the annuitant
recovers from the disability
upon the basis of which he is
retired?
If the Secretary, or his designated
representative, determines on the basis
of advice of one or more duly qualified
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physicians or surgeons that an an-
nuitant has recovered to the extent
that he can return to duty, the an-
nuitant may apply for reemployment
in the Service within 1 year from the
date his recovery is determined.
64. Is such a recovered annuitant
entitled to reemployment?
Yes. Upon the application of a
recovered annuitant within 1 year
from the date his recovery is de-
termined, the Secretary must reinstate
him in the class in which he was
serving at the time of retirement, or
the Secretary may, taking into con-
sideration his age, qualifications and
experience, and the present class of
his contemporaries in the Service,
appoint him or, in the case of an
annuitant who is a former Foreign
Service officer, recommend that the
President appoint him, by and with
the advice and consent of the Senate,
to a class higher than the one in
which he was serving prior to dis-
ability retirement.
65. When an annuitant is deter-
mined to be recovered what
happens to his annuity?
Payment of his annuity is continued
until a date 6 months after the date
of examination showing recovery or
until the date of reinstatement or re-
appointment in the Service, whichever
is earlier.
66. What happens if the annuitant
fails to submit to examinations
as required?
Payment of annuity will be suspended
until continuance of the disability is
satisfactorily established.
67. If a recovered annuitant is for
any reason not reinstated or
reappointed in the Service what
is his status with respect to
annuity benefits?
He may be entitled to deferred annuity
at age 60, or he may elect to have
the unexpended balance of his contri-
butions to the Fund, if any, returned
to him with interest, or if he qualifies
for voluntary retirement he may be
immediately retired under the provi-
sions governing such retirement.
68. Must an annuitant who is de-
termined to be recovered repay
any of the disability annuity
received in order to qualify for
reinstatement or reappointment
or for an annuity at some future
time?
No.
69. Who is eligible for voluntary
retirement?
Any participant who reaches age 50
with 20 years of creditable service-
under the System is eligible to retire
voluntarily. Also, any staff employee
who becomes a participant in the
System and who on October 16, 1960,
was age 57 or over, may retire volun-
tarily. This permits voluntary re-
tirement with at least 10 years of
creditable service since a staff employee
must have 10 years in the Foreign
Service to become a participant.)
70. Who may be involuntarily re-
tired?
10
a. Foreign Service officers who reach
the mandatory retirement age for
their class;
b. Staff participants who are retired
mandatorily for age;
c. Participants whose services as chief
of mission are terminated and who
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are not reappointed or assigned
within 3 months;
d. Foreign Service officers who are
selected out;
e. Participants beyond mandatory re-
tirement age who are serving as
chief of mission or in any other
position to which appointed by
the President, by and with the
advice and consent of the Senate,
when no longer serving in such
capacity.
71. What classes of Foreign Service
officer may receive retirement
benefits upon selection-out?
Foreign Service officers of class 1, 2, or
3 may receive retirement benefits only
in the form of annuity. Any officer
of class 4, 5, 6, or 7 who is separated
by selection-out may receive a benefit
of one-twelfth of a year's salary at
his then current salary rate for each
year of service, but not to exceed a
total of 1 year's salary, in addition to
retirement benefits in the form of
annuity at age 60 if he has 5 years of
creditable civilian service; or he may
elect to receive a refund of contribu-
tions to the Fund. (Officers who are
age 50 or over with 20 years of credit-
able service may apply for voluntary
retirement in lieu of selection-out
benefits.)
72. Who is eligible for a deferred
annuity?
Any participant who, after completing
at least 5 years of creditable civilian
service, voluntarily separates from the
Service, is separated by selection-out
(see question 71), or is separated for
cause (except in cases where the
Secretary determines that separation
was based in whole or in part on the
ground of disloyalty to the United
States, or unless he is barred as
explained in question 147) may elect
to receive a deferred annuity upon
reaching age 60.
73. When does deferred annuity
begin?
It begins on the first day of the month
following the month in which the
separated participant reaches age 60.
74. What happens if a separated
participant entitled to deferred
annuity dies before reaching
age 60?
In voluntary separations, separations
for cause on grounds not involving
disloyalty, and in separation by
selection-out of Foreign Service officers
of class 6 or 7, the contributions
together with interest are returned to
his designated beneficiary. Or, if
there is no designated beneficiary,
payment is made to survivors in order
of precedence, described in question
125. If the former participant was a
Foreign Service officer of class 4 or
5 and was separated by selection-out,
his death would be considered a death
in service, and an annuity would be
payable to a survivor.
VIII. Types of Annuities
75. How many types of annuities
are there under the Foreign
Service Retirement and Dis-
ability System?
11
Three. These are known as (1) full
annuity; (2) reduced annuity with
annuity to surviving spouse; and (3)
reduced annuity with annuity to
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designated beneficiary other than
spouse.
76. What is the "full annuity"?
It is the annuity elected by the retiring
participant which makes no provision
for a survivor and is ordinarily payable
to the retiring participant for the
remainder of his life unless it is termi-
nated for reasons such as recall or
recovery from disability. Under this
type, which any retiring participant
may choose, no survivor annuity is
payable unless the annuitant at his
death leaves dependent children. (See
question 122.)
77. What is the reduced annuity?
In this type, the retiring participant
takes a reduction in his annuity and
names his wife (or her husband), or
in the case of an unmarried participant,
a designated beneficiary, to receive a
survivor annuity.
78. Who may elect a reduced an-
nuity with benefit to widow or
widower?
Any participant, including one who
is eligible to receive a deferred an-
nuity at age 60, may choose this type
if married at the time annuity is
scheduled to begin.
79. When is the survivor annuity
to the widow or widower paid?
Monthly benefits which have been
elected by the participant at time of
retirement for a widow or widower
commence on the day following
death and continue until the surviving
widow or widower dies, regardless of
remarriage.
80. How much survivor annuity
will the widow or widower
receive?
The retiring participant may choose
all or any portion of his annuity as a
base for figuring the amount of the
widow's or widower's annuity. The
widow or widower will receive 50
percent of the amount which the
participant chooses as a base. For
example, if a retiring participant
chooses $2,400 as a base, the widow
or widower would receive $1,200 a
year or $100 a month. If he chooses
his full annuity as a base, and if such
annuity amounts to $6,000, the widow
or widower would receive $3,000 a
year or $250 a month.
81. If a participant elects a reduced
annuity with annuity to surviv-
ing spouse, how much is the
reduction in his annuity?
That depends on how much of his
annuity the retiring participant
chooses as a base for the survivor
annuity. The reduction is 2% percent
of the first $2,400 chosen as a base, plus
10 percent of any amount over $2,400.
For example, if the retiring participant
chooses $2,400 as a base, the reduction
in his annuity will be 2% percent of
$2,400 or $60 a year. If he chooses
$6,000 as a base, the reduction in his
annuity would be 2% percent of $2,400
or $60 a year plus 10 percent of the
balance ($3,600) or $360 a year for a
total reduction of $420 a year.
82. Does the age of a wife or hus-
band who is named as a survi-
vor annuitant affect the rate of
annuity?
No.
12
83. Must the retiring participant
be married for a specific num-
ber of years in order to be able
to name a spouse as survivor
beneficiary?
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No. The participant must be married
at time of retirement, or in the case of
a deferred annuity the person must be
married at the time deferred annuity is
scheduled to begin.
84. Who may elect a reduced an-
nuity with benefit to a person
other than a spouse?
At the time of retirement an unmarried
participant who has satisfactorily
passed a physical examination may
elect to receive a reduced annuity and
provide for an annuity payable after
his or her death to a beneficiary
designated in writing to the Secretary.
Former participants who elect to
receive a deferred annuity at age 60
may, at time of application for an-
nuity, also designate a beneficiary
other than a spouse. A widowed or
divorced person is considered un-
married.
85. When is the annuity of a
"designated beneficiary" paid?
Monthly benefits to the designated
beneficiary begin on the first day of
the next month after the retired
participant's death and continue for
the life of the beneficiary.
86. How much annuity will a
"designated beneficiary"
receive?
The person named as the designated
beneficiary will receive 50 percent of
the reduced annuity paid to the retired
participant.
87. If a retiring participant elects
to provide an annuity for a
"designated beneficiary," how
much is the reduction in his
annuity?
That depends on the difference be.
tween the ages of the retiring partici-
pant and the person he designates as
beneficiary. A table from which the
reduction in any particular case can
be figured is on page 24. For ex-
ample, if a retiring participant names
a person who is 11 years younger than
himself, he will have his annuity re?
duced by 20 percent; if the person
named is older than the retiring em-
ployee, the reduction is 10 percent; if
the person named is 30 years younger,
the reduction is 40 percent, which is
the maximum reduction.
88. Can an annuitant ever change
the type of annuity he elected
at retirement?
Ordinarily no change can be made in
the election made by the participant
at time of retirement. However, if an
annuitant is recalled to duty in the
Service, or is reinstated or reappointed
after recovery from disability, he may
make a new election at the time of
subsequent retirement.
IX. Annuity Computations
89. How is the amount of a partici-
pant's annuity determined?
The amount of annuity depends pri-
marily upon a participant's length of
service and his average basic salary
for the highest 5 consecutive years of
, 13
service. These two items are used in
a formula which produces the par-
ticipant's basic annuity. The basic
annuity obtained by using the formula
may then be reduced or increased for
various reasons.
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90. How is a participant's length
of service figured?
All periods of creditable service (this
includes service for which full contri-
butions have been made in the retire-
ment Fund plus free military service
and any free service prior to July 1,
1924) are added together. The odd
days in the total are dropped and the
time (years and months) remaining
is the length of service used in the
annuity computation formula.
91. Is there any limitation to the
length of service which may be
credited?
Yes. Only 35 years of creditable
civilian and military service may be
counted in the computation of annuity.
92. How is a participant's average
salary for the highest 5 con-
secutive years figured?
This salary is determined by the aver-
age basic salary for the highest 5
consecutive years of service for which
full contributions have been made to
the Fund. In the case of participants
who serve as chief of mission and
whose continuity of service as such is
interrupted by appointment or assign-
ment to another position determined
by the Secretary to be of comparable
importance, the annuity is computed
on the basis of the highest 5 years of
service for which full contribution
has been made to the Fund (not
necessarily consecutive). The "high-
5' average salary is the highest salary
obtainable by averaging the rate of
basic salary in effect during any 5
consecutive (or nonconsecutive as the
14
case may be) years of service, with
each rate weighted by the time it was
in effect. (See question 7 for defini-
tion of " basic salary.") An example
of an average salary computation
which covers the 5-year period from
January 1, 1956, to December 31, 1960,
follows:
Rate in effect
from?
Time rate was
in effect
Yr.
Mo.
Dy.
Annual
rate
1-1-56
to1 0 0
12-31-56 1
1-1-57
to1 6 0
6-30--58, 1
7-1-58
to0 3 0
9-30-58. 1
10-1-58
}
to 2 3 0
12-31-60
Total 5 0 0
X $10,000 =$10,000
X 10,500= 15,750
X 10,800= 2,700
X 11,000= 24,750
5/$53,200
"high-5" average salary=$10,640
93. What is the formula for deter-
mining a basic annuity?
The annuity is equal to 2 percent of
the "high-5" average salary multi-
plied by the number of years, not
exceeding 35, of the participant's
service credit. This automatically
fixes 70 percent of the "high-5"
average salary as the maximum an-
nuity payable.
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94. Give some examples of annuity
computations where different
elections are made.'
Case A
" High-5" average salary . .
Basic annuity 70 percent (2
percent times 35 years of
service times $16,000) . .
Maximum survivor (widow
or widower annuity-34 of
$16, 000
11,200
$11,200)
5,
600
Cost to participant (2% per-
cent of $2,400 equals $60
plus 10 percent of $8,800
equals $880)
940
Participant's reduced annu-
ity
10,
260
Case B
" High-5" average salary .
$12,
000
Basic annuity .60 percent (2
percent times 30 years of
service times $12,000) . .
7,
200
Survivor (widow or widow-
er) annuity (participant
chooses $6,000 as base-34
of $6,000)
3,
000
Cost to participant (234 per-
cent of $2,400 equals $60
plus 10 percent of $3,600
equals $360)
420
Participant's reduced annu-
ity
6,
780
1 A retiring employee may choose all or any
part of his annuity as a base for the survivor's
annuity. The reduction in his annuity will be
24 percent of any amount up to $2,400 he speci-
fies as a base for the survivor benefit, plus 10
percent of any amount over $2,400 he specifies.
In Case A above, the employee specified all of
his annuity, thus providing the maximum for
his survivor. In Case B employee specified $6,000
of his annuity as a base.
If in either case the employee had chosen to
provide $1,200 for his survivor, the reduction
in his annuity would be $60.
Case C
"High-5" average salary . .
$14,
000
Basic annuity 60 percent (2
percent times 30 years of
service times $14,000) . .
8,
400
Age of unmarried retiring
participant-60
Age of designated benefi-
ciary-45
Reduction:
25 percent
2,
100
Reduced annuity
6,
300
Beneficiary's annuity (% of
participant's reduced an-
nuity)
3,
150
Nora.?See also table in appendix, Reduction
for Survivor Annuity to Person Named as a
Designated Beneficiary, on page 2.4.
95. Upon what basis is a disability
annuity computed?
Any participant retired for disability
with more than 5 years of creditable
civilian service under the Foreign
Service Retirement and Disability
System, but with less than 20 years of
service credit, has his annuity comput-
ed as if he had 20 years of service, ex-
cept that the additional service credit
up to 20 years which may accrue under
this provision shall in no case exceed
the difference between his age at the
time of retirement and the mandatory
retirement age applicable to his class
in the Service (age 65 for career
ministers and career ambassadors, age
60 for all other participants). For
example, a Foreign Service officer of
class 1 or below with 10 years of
creditable service who is retiring on
disability at age 55 would have his
annuity computed on 15 years of
service. If the retiring participant
is disabled and has 20 or more years
of creditable service, his annuity is
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computed on the basis of actual years
of service up to 35 years.
96. When is a retiring participant's
basic annuity increased?
The annuity is increased if the retiring
participant has made voluntary con-
tributions and at time of retirement
elects to purchase additional annuity.
(See table on page 7 illustrating
amounts of additional annuity that
may be purchased.)
X. Reemployment of Foreign Service Annuitants
97. May an annuitant be em-
ployed outside the Federal
Government?
Yes.
98. Would employment outside
the Federal Government have
any effect on annuity payments?
No. However, the ability of an
annuitant who is retired for disability
to accept outside employment might
have a bearing on the outcome of the
annual physical examination required
by the law to determine recovery.
99. May an annuitant be reem-
ployed in the Federal Govern-
ment?
Yes. He may be reemployed in any
position for which he is qualified.
100. What effect would reemploy-
ment in the Federal Govern-
ment have on annuity pay-
ments?
A reemployed annuitant may receive
the salary of the position to which he
is appointed plus so much of his
annuity, which when combined with
such salary does not exceed during any
calendar year the basic salary such
person was entitled to receive in the
Foreign Service on the date of his
retirement. Annuity payments in
some cases will be reduced, but such
reduction will not reduce the salary
of the annuitant.
16
101. Does reemployment in the
Federal Government affect an
annuitant's annuity when he
subsequently retires?
It does not affect his annuity under the
Foreign Service Retirement and Dis-
ability System. If during his re-
employment he is covered by another
Federal retirement system, he will
make contributions to that system
during the period of his reemployment
and it is also possible to qualify for
benefits under another system. (Re-
employment in the Federal Govern-
ment in this sense should not be con-
fused with "recall, reinstatement or
reappointment" to the Foreign
Service.)
102. What happens to the annuity
of an annuitant who is recalled
as a Foreign Service officer?
The annuity of an officer who is re-
called is terminated the day preceding
recall, and computed anew when he
subsequently separates from the
Service.
103. Would a recalled annuitant
have the right of a new elec-
tion regarding survivorship
benefits when he retires again?
Yes.
104. Should a Foreign Service an-
nuitant notify the Department
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of State if he is reemployed in
the Federal Government?
He should tell the agency in which hc
is reemployed that he is a Foreign
Service annuitant. That agency must
then notify the Department of State
of the annuitant's reemployment.
The Department of State will adjust
his annuity payments accordingly.
XI. Death Benefits
105. What kind of death benefits
are payable when a participant
dies in Service?
There are two kinds:
1. A survivor annuity benefit which
begins on the date following death
of the participant, and is payable in
monthly installments.
2. A lump-sum benefit which is paid
only once.
106. To whom is a survivor an-
nuity payable?
Under certain conditions a survivor
annuity may be payable to the widow
or widower) and dependent children
of the deceased participant or deceased
annuitant. It may also be payable to
a person who was named by a par-
ticipant at the time of retirement as
a " designated beneficiary."
107. What conditions must the
deceased participant have met
to permit payment of a sur-
vivor annuity?
He (or she) must have completed at
least 5 years of civilian service and
must have been a participant in the
System at the time of death.
108. What conditions must the
widow of a participant who
dies in Service meet to be
eligible for a survivor annuity?
She must have been married to such
participant for at least 2 years im-
mediately preceding his death or, if
married less than 2 years, be the
mother of his child born of the
marriage.
109. What conditions must a de-
pendent widower of a par-
ticipant who dies in Service
meet to be eligible for a
survivor annuity?
He must have been married to such
participant for at least 2 years im-
mediately preceding her death or be
the father of her child born of the
marriage. In addition, he must be
incapable of self-support by reason
of mental or physical disability and
must have received more than one-
half of his support from the deceased
participant.
110. How is the survivor annuity
computed upon the death in
Service of a participant?
If the participant at time of his or
her death had less than 20 years of
creditable service, the participant's
annuity is computed the same as in
disability retirement cases. (See ques-
tion 95.) If the participant had 20
or more years of service, the annuity
is computed as in voluntary retire-
ment cases. (See question 93.) In
either case the survivor annuity is
one-half of the participant's annuity.
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111. What conditions must the
child of a participant who dies
in Service meet to be eligible
for a survivor annuity?
The child must be unmarried and
under age 18 (a child who is over 18
may be eligible if he or she is in-
capable of self-support because of
physical or mental disability which
began before age 18). There are two
basic provisions for survivor children:
(1) if a participant dies and is survived
by a wife or a husband and a child or
children, each child is entitled to an
annuity equal to the smallest of
(a) 40 percent of the participant's
"high-5" average salary divided by
the number of children; (b) $600; or
(c) $1,800 divided by the number of
children; or (2) if a participant dies in
Service and is not survived by a wife
or husband but by a child or children,
each surviving child will be paid an
annuity equal to the smallest of:
(a) 50 percent of the participant's
" high-5" average salary divided by
the number of children; (b) $720; or
(c) $2,160 divided by the number of
children.
112. Is an adopted child eligible
for a survivor annuity?
Any legally adopted child is eligible
if he meets the conditions stated in
question 111.
113. May a stepchild be eligible
for survivor annuity?
Yes. A stepchild must meet the con-
ditions stated in question 111. In
addition the child must have received
more than one-half support from the
deceased participant.
114. May an illegitimate child be
eligible for a survivor annuity?
Yes. Such a recognized child would
18
be eligible under the same conditions
as a stepchild. (See question 113.)
115. Is a child survivor annuity
payable in addition to the
widow's (or dependent
widower's) annuity?
Yes. For example, if a participant
who died in Service is survived by a
widow and 3 children all of whom are
eligible to receive survivor annuities,
annuity benefits would be paid to all
4 survivors.
116. If a widow (or widower)
annuitant dies, will the chil-
dren's annuity be increased?
Yes. If the children are still drawing
annuity, their payments will be in-
creased as though the participant had
not been survived by a widow (or
widower).
117. If the annuity of one child
stops for any reason, will the
annuity of any remaining
children be increased?
When the annuity of any one child
stops, the other children's annuities
are recomputed as though the one
child had never been eligible. In
some cases this will increase the an-
nuities to the other eligible children.
118. When a child's annuity stops,
is the widow's (or widower's)
annuity affected?
No.
119. When does the survivor an-
nuity of a widow (or wid-
ower) begin?
Such annuity begins on the day fol-
lowing the date of the death of
participant or annuitant,
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120. How long will the widow
(or widower) continue to
receive the survivor annuity?
The widow will receive her annuity
for life. A widower's annuity con-
tinues for life or, in the case of a
dependent widower survivor of a
participant, until he becomes capable
of self-support.
121. When does the survivor an-
nuity of a dependent child
begin and when is it termi-
nated?
The annuity begins on the first day
of the next month after the participant
or annuitant dies and it is terminated
when the child dies, marries, or attains
the age of 18 years, except that if a
child is incapable of self-support by
reason of mental or physical disability
the annuity is terminated only when
such child dies, marries, or recovers
from such disability.
122. Is there any survivor annuity
benefit for a spouse who
marries a participant after
he or she retires?
No. There is no provision for a
surviving wife (or a surviving hus-
band) who is not married to a
participant at the time of his or her
retirement. However, a child who
became a dependent of the annuitant
subsequent to his or her retirement
would be entitled to a survivor
annuity upon the death of the an-
nuitant, if such child qualified for an
annuity on the basis of age or de-
pendency status.
123. Under what conditions would
a lump-sum payment be pay-
able immediately after the
death of a participant or an
annuitant?
A lump-sum benefit is payable im-
mediately if the deceased participant
had less than 5 years of civilian service,
or had completed 5 years but leaves no
widow (or dependent widower) or
children who are eligible for survivor
annuity. If an annuitant who did
not elect a survivor benefit dies,
leaving no children eligible for bene-
fits, before he has received in annuity
payments the amount of compulsory
contributions in the Fund, the remain-
der is payable in a lump sum.
124. May a lump-sum benefit be
paid if the participant leaves a
widow (or dependent wid-
ower) or children who are
eligible for survivor annuity?
No lump-sum benefit may be paid
while the widow (or dependent wid-
ower) or children are eligible for a
survivor annuity unless there are
voluntary contributions in the de-
ceased participant's account. If when
the annuities of all the survivors have
ended they have received in annuities
an amount which totals less than the
participant's compulsory contribu-
tions to the Fund, plus any accrued
interest, the difference is payable as a
lump-sum benefit.
125. Who may receive the lump-
sum payment?
In the absence of a designated bene-
ficiary, if a valid claim to lump-sum
payment is established, it would be
paid in the following order: (1) to
the surviving wife or husband of such
participant; (2) if none of the above,
to the child or children of such
participant and descendants of de-
ceased children by representation; (3)
if none of the above, to the parents of
such participant or the survivor of
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them; (4) if none of the above, to the
duly appointed executor or adminis-
trator of the estate of such participant;
(5) if none of the above, to other next
of kin of such participant as may be
determined by the Secretary in his
judgment to be entitled thereto.
126. Of what does the lump-sum
payment consist?
The amount paid into the Foreign
Service Retirement and Disability
Fund plus any accrued interest. If a
deceased participant's account in-
cludes voluntary contributions, that
part is payable as a lump sum im-
mediately, even though survivor an-
nuities are also payable. Compulsory
contributions after annuities have
ceased are payable in lump sum as
described in question 124.
127. What should the participant
do if the order of payment
indicated in question 125 will
not carry out his wishes?
He should designate a beneficiary to
receive compulsory contributions by
completing FS- 560, Designation of Bene-
ficiary, in duplicate and forwarding it
to the Office of Personnel, Department
of State. FS-374, Election of Voluntary
Deposits and Designation of Beneficiary,
is appropriate if the participant is
designating a beneficiary to receive
voluntary contributions.
XII. Refunds
128. What is meant by "refund"?
A refund is the return to a former
participant of money to his credit in
the retirement Fund.
129. Under what conditions is a re-
fund payable?
It is payable in the following cir-
cumstances:
1. When a participant is separated
voluntarily or involuntarily from
the Service and is ineligible for a
deferred annuity at age 60 because
he has had less than 5 years'
civilian service.
2. When a participant is separated
from the Service and is entitled
to a deferred annuity at age 60,
but before reaching that age elects
to have the refund in lieu of an
annuity.
3. When a Foreign Service officer of
class 4, 5, 6, or 7 is separated by
selection-out and elects a refund
in lieu of an annuity at age 60.
20
4. When a participant transfers to
employment in which he is sub-
ject to another Federal civilian
retirement system.
5. When a participant elects, either
at time of retirement or separation
for reasons other than retirement,
to receive his voluntary contribu-
tions in the form of a lump sum.
130. How is application for refund
made?
Application must be filed on form
FS-316, Application for Refund, and
filed directly with the Department of
State.
131. If a participant who is eligible
for deferred annuity elects to
receive a refund at the time of
his separation from the Serv-
ice, may he later redeposit the
refund and receive an annuity
at age 60?
No. Payment of refund cancels the
right to a deferred annuity. If, how-
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ever, the participant is later reem-
ployed in the Foreign Service under
conditions in which he would again
be a participant, he must replace his
withdrawn contributions into the
Foreign Service Retirement and Dis-
ability Fund in order to receive service
credit for the period covered by the
refund.
132. Of what does a refund consist?
It consists of the deductions taken
from the participant's salary, any
special contributions made by him to
purchase prior service credit, and any
interest accrued on such sums. It
may also include voluntary contribu-
tions.
133. May the contributions made
by the Department to the re-
tirement Fund be refunded?
No. The Department's contributions
are to the Fund in general and are not
credited to any individual employee.
134. What rates of interest are paid
on contributions to the re-
tirement Fund?
Interest on compulsory contributions
to the Fund is paid on the basis of
4 percent per annum whereas interest
on voluntary contributions is 3 per-
cent per annum, compounded annually
at the end of each fiscal year through
June 30, 1960; semiannually as of
December 31, 1960; annually there-
after as of December 31, and propor-
tionately for the period served? during
the year of separation including all
contributions made during or for such
period.
135. Does interest continue to ac-
crue on contributions to the
Fund after the participant has
separated?
No.
136. May a participant who is pro-
hibited from receiving an
annuity because one has been
denied him under the provi-
sions of P.L. 769, 83d Con-
gress, as amended (because
he has committed a certain
offense) be paid a refund?
Yes.
XIII. Miscellaneous
137. How are benefits paid?
The Department of State authorizes
the payment of all benefits (annuity,
refund, and lump-sum payments); the
checks are issued by the Treasury
Department.
138. May annuity checks be ne-
gotiated under power of
attorney?
Yes, if the power of attorney is given
to a reputable bank or trust company.
21
Banks usually have the necessary
forms and are familiar with the in-
structions which are issued by the
Treasury Department about power
of attorney.
139. Can annuity, refund, or lump-
sum payments be attached in
order to settle a judgment or
other indebtedness?
Such payments are not subject to
attachment, levy, garnishment, or
other legal processes.
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140. Does this bar apply to in-
debtedness to the United
States?
No. This is one exception to the
rule. Amounts payable to a par-
ticipant in an annuity or refund or as
lump-sum payments may be used to
settle a claim which the Government
may have against the individual.
141. May a participant voluntarily
assign his retirement deduc-
tions as security for a loan or
other purposes?
No.
142. May a participant borrow
from the retirement Fund?
No.
143. Are annuity payments subject
to Federal income tax?
Yes, under rules prescribed by the
Internal Revenue Service, Treasury
Department. One exception to this
rule is that annuities paid on the basis
of retirement for disability are not
subject to Federal income tax.
144. May an annuitant engage in
politics?
Yes. An annuitant is not an employee
and is therefore not governed by the
political-activity restrictions which
apply to Federal employees.
145. If an annuitant serves on a jury,
will his annuity be affected?
No.
146. May an individual receive a
Foreign Service annuity and
annuity from some other Fed-
eral retirement system at the
same time?
Yes, if he has qualified for benefits
under more than one system.
22
147. Under what conditions can a
participant eligible for an
immediate annuity be denied
such annuity?
P.L. 769, 83d Congress, as amended,
prohibits payment of annuity to
persons who have committed specific
offenses or acts, or who remain outside
the United States to avoid prosecution.
A person who is barred by this law
cannot receive an annuity.
148. Are the survivors of a par-
ticipant disqualified from re-
ceiving an annuity if the
participant himself was barred
by the general requirements
of P.L. 769, 83d Congress, as
amended, which prohibits the
payment of annuity to persons
who have committed certain
specific offenses or acts?
Yes.
149. Under what other conditions
can a participant who is
eligible to receive a deferred
annuity be denied such an-
nuity?
He may be denied such annuity if he
is separated from the Service for cause
and if the Secretary determines that
separation was based in whole or in
part on the ground of disloyalty to
the United States.
150. May a participant receive an
annuity and Social Security
benefits at the same time?
Yes, if he has qualified for both
benefits.
151. Does the information in this
pamphlet apply to all retire-
ment benefits?
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No. It applies, in general, to present
participants and to those whose
separations occurred on or after
October 16, 1960. The rights of
persons separated before that date
are usually determined by the laws
which were in force at the time of
separation. If such persons need
information about their rights under
the Foreign Service Retirement and
Disability System, they should make
inquiry of the Department of State.
23
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APPENDIX
Reduction for Survivor Annuity to Person Named
as a Designated Beneficiary
An unmarried participant who names a person as o designated beneficiary to
receive a survivor annuity will have his annuity reduced. The amount of the
reduction depends upon the difference in ages of the participant and the person
named, as shown in the following table:
Age of person named in relation to that of retiring participant
Reduction in annuity of
retiring participant
Percent
Older, same age, or less than 5 years younger
10
5 but less than 10 years younger
15
10 but less than 15 years younger
20
15 but less than 20 years younger
25
20 but less than 25 years younger
30
25 but less than 30 years younger
35
30 or more years younger
40
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Numbers following items
INDEX
refer to the questions involved unless otherwise
Indicated
Age retirement:
after recall to duty, 88, 101-103
beginning date of annuity, 57
career ministers and ambassadors, 53
chiefs of mission, 56
conditions for eligibility, 52-56, 69--70
Foreign Service staff personnel, 54, 69
mandatory, 53-56, 70
voluntary, 69
Annuity:
and military retired pay, 30-32
and selection-out, 71-74
basic, 93-94, 96
beginning date of, 57, 73, 78-79, 85, 119, 121
children's. See Children's annuity
computation of, See Computation of annuity
designated beneficiary's annuity, 84-87, 94
disability annuity, 95
effect of reemployment on, 98-104
election of type of, 48, 67, 71, 72, 78, 80-81,
83-84, 87-88, 94, 103
how paid, 137
increases in, 10, 45-46, 95-96
life, 46-47, 76
maximum service credited, 22, 91
minimum service requirement for, 52, 69, 71,
72, 91
offenses barring payment of, 72, 136, 147-149
recomputation of, 102, 116-117
redeposit, effect on title to, 131
reduced, 77, 81, 84, 86, 87, 94, 100. See also
page 24
repayment of cost on reemployment, 68
suspension of, 66
tax on, 143
termination of, 65-68, 79, 85, 88, 102, 120-121
types of, 75-88
widow's or widower's. See Widow's (or
widower's) annuity
Application:
for designating beneficiary, 127
for refund, 130
forms, 127, 130
to make voluntary contributions, 127
Assignment of retirement funds, 141
Attachment of retirement funds, 139, 140
Automatic separation, 53-56, 70-71
Basic salary, pay or compensation. See Salary
Beneficiary, designation of, 47, 84, 125, 127.
(See also Designated beneficiary's annuity)
Break in service, 11-13, 15, 92
Career ministers (and or) career ambassadors:
age retirement for, 53
Charge pay, 7
Chiefs of mission:
age retirement, 53
exemption from mandatory age retirement, 56
high-5 year average salary, computation of, 92
involuntary retirement of, 70
participation in system, 11
Children's annuity:
beginning date of, 121
computation of, 110-111, 116
conditions for eligibility, 76, 107, 111-114, 122
payment of, 115, 121
recomputation of, 116-117
termination of, 117, 121
Computation of annuity:
children's annuity, 110-111, 116-117
deposit, effect of, 90, 96
designated beneficiary's, 86, 94
disability annuity, 59, 95
general formula, 89, 93-94
"high-5" average salary, 92-94
maximum rate, 93-94
order of reductions in basic annuity, 94
recalled Foreign Service officer, 102
recomputation of, 102, 116-118
reduced annuity, benefit to designated bene-
ficiary, 86, 94. See also page 24
reduced annuity, benefit to widow or widower,
80-81, 94
service computation, 90-92
voluntary contributions, 45-48, 96
widow's (or widower's), 80-81, 94, 110
Continuity of service, 11-13, 15, 92
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Contributions by employing agency, 4, 9, 133
Coverage of retirement system. See Membership
in retirement system
Credit for service. See Service credit
Death benefits:
kinds of, 105
lump-sum. See Lump-sum death payments
offenses barring receipt of, 74, 148
payment of, 106, 125-127, 137
survivor annuity. See Children's annuity,
Designated beneficiary, and Widow's (or
widower's) annuity
Deductions, retirement:
beginning date, 17
not withheld, deposit of. See Deposit to
cover past service
rate of, 6, 8
refund of. See Refund
Deferred retirement:
beginning date, 72-73
chiefs of mission, 56
conditions for eligibility, 52, 54-56, 67, 71,
72-74
death of separated participant before annuity,
74
widow's (or widower's) annuity, election of,
83
Deposit to cover past service:
advantage or disadvantage of, 16, 22
after retirement, 23
amount of, 21, 24
by reemployed annuitant, 131
computation of, 21
credit without, 16, 29, 33, 95
free service, 17, 90
how made, 20, 21, 23-25
installment payments, 25
leave without pay, 11, 33
military service, 29, 33
other retirement systems, 26
prior to separation, 23
service prior to July 1, 1924, 17
through payroll deductions, 25
Designated beneficiary's annuity:
application forms for, 127
beginning date of, 85
computation of, 86, 94
election by retiring employee, 47, 84
reduction of retiring participant's
87 and page 24
termination of, 85
Disability retirement:
beginning date of annuity, 57
computation of annuity, 59, 95
Disability retirement-Continued
conditions for eligibility, 58-67
disability of short duration, 61, 63
extra service credit given, 95
guaranteed minimum annuity, 59
intemperance, misconduct, etc., 58
medical examinations, 60-63, 66
minimum service requirements, 52
permanent disability, 61
recovery from disability, 63-68, 98
reemployment, 63-65, 67-68, 98
restoration to earning capacity, 63-68
tax on, 143
termination of annuity, 65-68
total disability, 53, 60
Discontinued-service retirement. See Deferred
retirement
District of Columbia Government, 14
Exclusions from membership, 11-13
Foreign Service officers:
membership, 11
recall to duty, 88, 101-103
reinstatement of, 64, 88
selection-out. See Selection-out
Foreign Service Retirement and Disability Fund,
3-10
Foreign Service Retirement and Disability
System, 1-2
Foreign Service staff personnel:
age retirement, 54, 69
beginning date of participation, 69
conditions for eligibility, 11-12
Forms, application, 127, 130
Full annuity. See Life annuity
Furlough, military, 13, 33, 35-36, 42
Government appropriation, 4, 9
Government claim, 140
Income tax, 143
Information:
employees separated before October 16, 1960,
151
securing of additional, 151
Interest:
on deposits, 21, 24, 134-135
annuity, on investments, 4, 5
on lump-sum death payments, 124, 126
on refunds, 132, 134-135
on voluntary contributions, 39, 40, 45, 134
Investments, 4, 5
Involuntary retirement, 52-56, 70-74
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Jury duty, annuitant, 145
Leave:
for military service, 13, 33, 35-36, 42
without pay, 11, 42
Legislation authorizing, 1-2
Life annuity:
definition, 76
effect of voluntary contributions, 46-47
Loans from retirement fund, 142
Lump-sum death payment:
amount of, 123-124, 126
application for, 127
delayed, 124
how paid, 137
immediate, 123, 126
to whom paid, 106, 124-125
upon death of annuitant, 46-48, 123-126
upon death of former employee, 40, 74, 123
voluntary contributions, 40, 46-47, 126
Mandatory retirement for age, 53-56, 70
Medical examination, 60-63, 66, 84
Membership in retirement system:
automatic, 11
chiefs of mission, 11
continuity of service, 11-13
Foreign Service officer, 11
Foreign Service staff personnel, 11-12
while in military service, 13
Military service:
branches, 27
credit for. See Service credit: military
definition of, 27
furlough, 13, 33, 35-36, 42
National Guard, 34
pay not basic salary, 7
voluntary contributions while on, 42-43
women's organizations, 36-37
Offenses barring payment of annuity, 136, 147-
149
Overtime pay, 7
Pay not credited toward basic salary, 7
Payment of benefits, 115, 137
Political activity of annuitant, 144
Power of attorney, 138
Reappointment, 64, 88
Recall, 88, 101-103
Redeposit of refund after separation, 131
Reemployment of annuitant:
as Foreign Service officer, 88, 102
effect on annuity payments, 98, 100-102
in Federal service, 99-101
Reemployment of annuitant-Continued
maximum salary allowed, 100
new election regarding survivorship benefits,
88, 103
notice of, 104
outside Government service, 97-98
recovery from disability, 63-64, 67-68, 98
reinstatement in class, 64, 88
Refund:
agency contributions, 133
amount of, 132
application for, 130
conditions under which payable, 67, 74, 129,
136
definition of, 128
effect on title to annuity, 131
how paid, 137
in lieu of annuity, 67, 74, 129
offense barring payment, 136
transfer to position outside system, 129
under selection-out, 71
voluntary contributions, 39, 43, 49-50, 129,
132
Reinstatement, 64, 88
Removal for cause, 72, 74, 136, 147-149
Retired pay, military:
Chapter 67, Title 10, U.S. Code, 31
effect of, 30-32, 35
Title III, Public Law 810, 30, 31
Retirement:
eligibility for, 51-74
kinds of, 51
systems, other. See Retirement systems, other
Retirement fund:
agency contributions to, 4, 9
definition of, 3
Government appropriation, 4, 9
interest on, 134-135
investment of, 4, 5
source of, 4-6, 8-10
Retirement systems, other:
coverage of Foreign Service employees, 146,
150
reemployed annuitant under, 101
transfer of contributions from, 26
Rogers Act, 1
27
Salary:
basic, 7, 8, 92
deductions from for retirement, 4, 6, 8, 10, 17
"high-5" average, 89, 92-95
not credited toward annuity, 7
received while assigned to Department or
other non-Foreign Service position, 7
reernolovt'd annuitant, 100
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Selection-out benefits:
deferred annuity, 72
lump-sum benefit, 71
refund of contributions in lieu of annuity, 71,
129
retirement benefits, 71
survivor benefits, 74
voluntary retirement in lieu of, 71
Separation:
after 5 years, 52, 58, 71, 72
after 10 years, 69
after 20 years, 69
automatic, 53-56, 70-71
by selection-out, 71-72, 74
involuntary, 53-56, 70-74
prior to October 16, 1960, 151
voluntary, 69, 72, 74
voluntary contributions after, 44
Service:
break in, 11-13, 15, 92
computation of, 90-92
credit for. See Service credit
maximum credited, 22., 91
minimum requirements, 52, 58, 69
Service credit:
civilian:
before July 1, 1924, 17, 90
creditable service, 14-18, 90-91
deductions not taken, 16-18, 22
deductions refunded, redeposit of, 131
District of Columbia Government, 14
extra credit, 19, 95
free credit, 17, 90
leave without pay, 11
other government retirement systems, 26
special contribution required, 14, 16, 18
without deposit, 16-18
deposit not required, 29
furlough, 13, 33, 35-36, 42
how credited, 28-37, 90-91
National Guard, 34
retired pay, 30-32
Social Security benefits, effect of, 35
women's organizations, 36-37
unhealthful post credit, 11, 19-20
Social Security:
benefits and credit for military service, 35
benefits and Foreign Service annuity, 150
coverage of, 14
28
Special contributions to cover past service.
See Deposit to cover past service
Survivor annuity. See Children's annuity,
Designated beneficiary, and Widow's (or
widower's) annuity
Survivor benefits, 40, 46, 48, 74, 76-88, 103,
105-127
Tax, 143
Termination of annuity, 65-68, 79, 85, 88, 102,
120-121
Transfer to position outside of system, 129
Unhealthful post service credit, 11, 19-20
Voluntary contributions:
advantages of making, 10
after separation from service, 44
amount of, 38, 46
based on military pay, 43
beginning date, 42.
choice of type of annuity, 46-48
disposition of upon death, 40, 46-48, 126, 127
effect on annuity, 10, 38, 45-48, 96
in other retirement systems not transferable, 26
interest on, 39, 40, 45, 134
limitation, 38
refund of, 10, 26, 39, 43, 49-50
who may make, 38, 41-42, 44
Voluntary retirement:
beginning date, 72-73
conditions for eligibility, 52, 69
death of separated participant before annuity,
74
in lieu of selection-out, 71
minimum service requirement, 52, 58-59
Widow's (or widower's) annuity:
age, effect on, 82
beginning date of, 79, 119
computation of, 80-81, 94, 110
conditions for eligibility, 83, 107-109, 122
death of widow (or widower), effect on
child's annuity, 116
election by retiring employee, 77-78, 80-81, 83
length of marriage, effect on, 83
remarriage, effect of, 79
termination of, 79, 120
termination of child's annuity, effect on, 118
voluntary contributions, 46, 48
113. GOVERNMENT PRINTING OFFICE: 1962
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TAB
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TAB
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TAB
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