TECHNICAL CORRECTIONS RELATING TO FERS, CSRS AND CERTAIN OTHER RETIREMENT SYSTEMS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000800020017-7
• Release Decision: RIPPUB
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• Document Page Count: 81
• Document Creation Date: December 27, 2016
• Document Release Date: December 12, 2012
• Sequence Number: 17
• Content Type: REPORT

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100TH CONGRESS I REPORT:
1st Session HOUSE OF REPRESENTATIVES 1 100-374
TECHNICAL CORRECTIONS RELATING TO FERS, CSRS,
AND CERTAIN OTHER RETIREMENT SYSTEMS
Ocroaxa 15, 1987.?Committed to the: Committee of the Whole House on the State of
the Union and ordered to be printed
Mr. FORD of Michigan, from the Committee on Post Office and Civil
Service, submitted the following
REPORT
[To accompany H.R. 3395]
[Including cost estimate of the Congressional Budget Office]
The Committee on Post Office and Civil Service, to whom was re-
ferred the bill (H.R. 3395) making technical corrections relating to
the Federal Employees' Retirement System, and for other purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu thereof
the following:
TITLE I?AMENDMENTS RELATING TO THE CIVIL SERVICE RETIREMENT
SYSTEM AND THE FEDERAL EMPLOYEES' RETIREMENT SYSTEM
SEC. 101. REFERENCES.
Except as otherwise expressly provided, whenever in this title an amendment or
repeal is expressed in terms of an amendment to, or a repeal of, a section or other
provision, the reference shall be considered to be made to a section or other provi-
sion of title 5, United States Code.
SEC. 102. DEPOSITS FOR "COVERED SERVICE" AFTER 1986 FOR EMPLOYEES UNDER CSRS OFFSET
PROVISIONS.
Section 8334(c) is amended by striking the period at the end of the last sentence
and inserting in lieu thereof the following: ", and, with respect to any such service
performed after December 31, 1986, be equal to the amount that would have been
deducted from the employee's basic pay under subsection (k) of this section if the
employee's pay had been subject to that subsection during such period.".
SEC. 103. AMENDMENTS RELATING TO LAW ENFORCEMENT OFFICERS AND FIREFIGHTERS.
(a) MAXIMUM ENTRY AGES.?
(1) IN GENERAL?Section 3307 is amended-
19-006
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(A) in subsection (d), by striking "may, with the concurrence of such
agent as the President may designate," and inserting in lieu thereof "may";
and
(B) by adding at the end the following:
"(e) The head of an agency may determine and fix the maximum age limit for an
original appointment to a position as a firefighter or law enforcement officer, as de-
fined by section 8401(14) or (17), respectively, of this title.".
(2) CLARIFYING AMENDMENTS.?Paragraphs (14)(A)(ii) and (17) of section 8401
are amended by striking "are required to be" each place those words appear
and inserting in lieu thereof "should be".
(b) DEFINITION UNDER THE LIFE INSURANCE PR0GRAM.?SeCti0/1 8704(c)(2) is
amended by inserting "or 8401(17)" after "8331(20)".
(C) AMENDMENTS TO DEFINITIONS.?
(1) LAW ENFORCEMENT OFFICERS.?Sectioq NO1(17) is amended?
(A) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and
(D), respectively;
(B) by inserting after subparagraph (A) the following:
"(B) an employee of the Department of the Interior or the Department of the
Treasury (excluding any employee under subparagraph (A)) who occupies a posi-
tion that, but for the enactment of the Federal Employees' Retirement System
Act of 1986, would be subject to the District of Columbia Police and Firefight-
ers' Retirement System, as determined by the Secretary of the Interior or the
Secretary of the Treasury, as appropriate;"; and
(C) by amending subparagraph (C), as so redesignated by subparagraph
(A), to read as follows:
"(C) an employee who is transferred directly to a supervisory or adminis-
trative position after performing duties described in subparagraph (A) or
(B); and".
(2) FIREFIGHTERS.?Section 8401(14)(B) is amended by striking "for at least 10
years".
(d) COORDINATION OF FERS WITH THE DISTRICT OF COLUMBIA POLICE AND FIRE-
FIGHTERS' RETIREMENT SYSTEM FOR EMPLOYEES OF THE PARK POLICE AND THE SECRET
SERVICE.?
(1) IN GENERAL.?Section 4-607(1) of title 4 of the District of Columbia Code is
amended by striking the period and inserting in lieu thereof the following: ">
but does not include an officer or member of the United States Park Police
force, or of the United States Secret Service Division, whose service is employ-
ment for the purposes of title II of the Social Security Act and chapter 21 of the
Internal Revenue Code of 1986, and who is not excluded from coverage under
chapter 84 of title 5, United States Code, by operation of section 8402 of such
title.".
(2) CONFORMING AMENDMENT.?Section 8401(11)(i)(II) is amended by striking
"(other than an employee of the United States Park Police, or the United States
Secret Service, whose civilian service after December 31, 1983, is such employ-
ment)"
(e) OFFSETS TO PREVENT FULL DOUBLE COVERAGE FOR EMPLOYEES OF THE PARK
POLICE AND THE SECRET SERVICE.?Notwithstanding any other provision of law, in
the case of an employee of the United States Secret Service or the United States
Park Police whose pay is simultaneously subject to a deposit requirement under the
District of Columbia Police and Firefighters' Retirement and Disability System and
the contribution requirement under section 3101(a) of the Internal Revenue Code of
1986?
(1) any deposits under the District of Columbia Police and Firefighters' Re-
tirement and Disability System shall be adjusted in a manner consistent with
section 8334(k) of title 5, United States Code (relating to offsets in deductions
from pay to reflect OASDI contributions); and
(2) any benefits payable under the District of Columbia Police and Firefight-
ers' Retirement and Disability System based on the service of any such employ-
ee shall be adjusted in a manner consistent with section 8349 of title 5, United
States Code (relating to offsets to reflect benefits under title II of the Social Se-
curity Act).
(f) EFFECTIVE DATE.?This section, and the amendments made by this section,
shall be effective as of January 1, 1987.
SEC. 104. MILITARY SERVICE DEPOSITS BY SURVIVORS.
(a) Section 8422(e) is amended by adding at the end the following:
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"(5) For the purpose of survivor annunities, deposits authorized by this subsection
may also be made by a survivor of an employee or Member.".
(b) Section 8411(cX4)(A) is amended by striking "subsection (0(4)" and inserting in
lieu thereof "section 8422(05)".
SEC. 105. DEPOSITS AND REFUNDS RELATING TO CERTAIN SERVICE UNDER THE CIVIL SERVICE
RETIREMENT SYSTEM.
(a) DEPOSIT FOR SERVICE COVERED BY REFUND PERMITTED ONLY IF REFUND WAS
PURSUANT TO APPLICATION FILED BEFORE BECOMING SUBJECT TO FERS.?Section
8411(0(1) is amended by adding at the end the following: "A deposit under this para-
graph may be made only with respect to a refund received pursuant to an applica-
tion filed with the Office before the date on which the employee or Member first
becomes subject to this chapter.".
(b) LUMP-SUM CREDIT FOR CERTAIN CSRS SERVICE SOUGHT AFTER BECOMING SUB-
JECT TO FERS IS PAYABLE TO THE EXTENT THAT IT EXCEEDS 1.3 PERCENT OF BASIC
PAY.?The last sentence of section 8342(a), as added by section 207(h) of the Federal
Employees' Retirement System Act of 1986 (Public Law 99-335; 100 Stat. 596) is
amended to read as follows: "In applying this subsection to an employee or Member
who becomes subject to chapter 84 (other than by an election under title III of the
Federal Employees' Retirement System Act of 1986) and who, while subject to such
chapter, files an application with the Office for a payment under this subsection?
"(i) entitlement to payment of the lump-sum credit shall be determined with-
out regard to paragraph (1) or (3) if, or to the extent that, such lump-sum credit
relates to service of a type described in clauses (i) through (iii) of section
302(a)(1)(C) of the Federal Employees' Retirement System Act of 1986; and
"(ii) if, or to the extent that, the lump-sum credit so relates to service of a
type referred to in clause (i), it shall (notwithstanding section 8331(a)) consist
of?
"(I) the amount by which any unrefunded amount described in section
8331(8) (A) or (B) relating to such service, exceeds 1.3 percent of basic pay
for such service; and
"(II) interest on the amount payable under subclause (I), computed in a
manner consistent with applicable provisions of section 8331(8).".
SEC. 106. OPTION FOR CERTAIN EMPLOYEES TO ELECT FERS COVERAGE.
Section 301(a) of the Federal Employees' Retirement System Act of 1986 (Public
Law 99-335; 100 Stat. 599) is amended by adding at the end the following:
"(3XA) Except as provided in subparagraph (B), any individual?
"(i) who is excluded from the operation of subchapter III of chapter 83 of title
5, United States Code, under subsection (g), (i), (j), or (1) of section 8347 of such
title, and
"(ii) with respect to whom chapter 84 of title 5, United States Code, does not
apply because of section 8402(b)(2) of such title, and
shall, for purposes of an election under paragraph (1) or (2), be treated as if such
individual were subject to subchapter III of chapter 83 of title 5, United States Code.
"(B) An election under this paragraph may not be made by any individual who
would be excluded from the operation of chapter 84 of title 5, United States Code,
under section 8402(c) of such title (relating to exclusions based on the temporary or
intermittent nature of one's employment).".
SEC. 107. CERTAIN CSRS SERVICE CREDITABLE TO DETERMINE ELIGIBIITY FOR 1.1 PERCENT AC-
CRUAL RATE.
Section 302(aX1)(D) of the Federal Employees' Retirement System Act of 1986
(Public Law 99-335; 100 Stat. 602) is amended?
(1) by striking "and" at the end of subclause (IV);
(2) by striking the period at the end of subclause (V) and inserting in lieu
thereof "; and"; and
(3) by adding after subclause (V) the following:
"(VI) the provision of subsection (g) of section 8415 which relates to the
minimum period of service required to qualify for the higher accrual rate
under such subsection.".
SEC. 108. AMENDMENTS RELATING TO MISCELLANEOUS PROVISIONS OF LAW EXTENDING COVER-
AGE OR BENEFITS UNDER CERTAIN FEDERAL PROGRAMS TO INDIVIDUALS NOT OTH-
ERWISE ELIGIBLE.
(a) TERMINATION OF CERTAIN SPECIAL ELIGIBILITY PROVISIONS.?
(1) CIVIL SERVICE RETIREMENT SYSTEM.?Section 8347 is amended by adding at
the end the following:
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"(o) Any provision of law outside of this subchapter which provides coverage, serv-
ice credit, or any other benefit under this subchapter to any individuals who (based
on their being employed by an entity other than the Government) would not other-
wise be eligible for any such coverage, credit, or benefit, shall not apply with respect
to any individual appointed, transferred, or otherwise commencing that type of em-
ployment on or after October 1, 1988.".
(2) LIFE INSURANCE.?
(A) IN GENERAL?Section 87 of title 5, United States Code, is amended by
inserting after section 8712 the following:
"? 8713. Effect of other statutes
"Any provision of law outside of this chapter which provides coverage or any
other benefit under this chapter to any individuals who (based on their being em-
ployed by an entity other than the Government) would not otherwise be eligible for
any such coverage or benefit shall not apply with respect to any individual appoint-
ed, transferred, or otherwise commencing that type of employment on or after Octo-
ber 1, 1988.".
(B) CHAPTER ANALYSIS.?The analysis for chapter 87 of title 5, United
States Code, is amended by inserting after the item relating to section 8712
the following:
8713. Effect of other statutes.".
(3) HEALTH INSURANCE.?
(A) IN GENERAL?Chapter 89 of title 5, United States Code, is amended by
adding at the end the following:
"? 8914. Effect of other statutes
"Any provision of law outside of this chapter which provides coverage or any
other benefit under this chapter to any individuals who (based on their being em-
ployed by an entity other than the Government) would not otherwise be eligible for
any such coverage or benefit shall not apply with respect to any individual appoint-
ed, transferred, or otherwise commencing that type of employment on or after Octo-
ber 1, 1988.".
(B) CHAPTER ANALYSIS.?The analysis for chapter 89 of title 5, United
States Code, is amended by adding at the end the following:
"8914. Effect of other statutes.".
(b) EXTENSION OF OFFSET PROVISIONS UNDER CHAPTER 83.?
(1) CONTRIBUTIONS.?Section 8334(k) is amended by adding at the end the fol-
lowing:
"(4) In administering paragraphs (1) through (3)?
"(A) the term 'an individual described in section 8402(bX2) of this title' shall
be considered to include any individual?
"(i) who is subject to this subchapter as a result of a provision of law de-
scribed in section 8347(o), and
"(ii) whose employment (as described in section 8347(o)) is also employ-
ment for purposes of title H of the Social Security Act and chapter 21 of the
Internal Revenue Code of 1986; and
"(B) the term 'Federal wages', as applied with respect to any individual to
whom this subsection applies as a result of subparagraph (A), means basic pay
for any employment referred to in subparagraph (A)(ii).".
(2) BENEFITS.?Section 8349 is amended by adding at the end the following:
"(d) In administering subsections (a) through (c)?
"(1) the terms 'an individual under section 8402(b)(2)' and 'an individual de-
scribed in section 8402(b)(2)' shall each be considered to include any
individual?
"(A) who is subject to this subchapter as a result of any provision of law
described in section 8347(o), and
"(B) whose employment (as described in section 8347(o)) is also employ-
ment for purposes of title II of the Social Security Act and chapter 21 of the
Internal Revenue Code of 1986; and
"(2) the term 'Federal service', as applied with respect to any individual to
whom this section applies as a result of paragraph (1), means any employment
referred to in paragraph (1)(B) performed after December 31, 1983.".
(3) EFFECTIVE DATE.?The amendments made by this subsection shall be effec-
tive as of January 1, 1987.
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SEC. 109. CONTINUED COVERAGE UNDER CERTAIN FEDERAL EMPLOYEE BENEFIT PROGRAMS
FOR CERTAIN EMPLOYEES OF SAINT ELIZABETHS HOSPITAL
(a) IN GENERAL?Section 207 of the Federal Employees' Retirement System Act of
1986 (Public Law 99-335; 100 Stat. 594) is amended by adding at the end the
following:
"(o) An employee of Saint Elizabeths Hospital who is appointed to a position in
the government of the District of Columbia on October 1, 1987, pursuant to the
Saint Elizabeths Hospital and District of Columbia Mental Health Services Act
(Public Law 98-621; 98 Stat. 3369 and following) shall, for purposes of chapters 83,
87, and 89 of title 5, United States Code, be treated in the same way as an individ-
ual first employed by the government of the District of Columbia before October 1,
1987.".
(b) The amendment made by this section shall be effective as of October 1, 1987.
SEC. 110. CREDITABILITY UNDER CSRS OF CERTAIN SERVICE PERFORMED UNDER A PERSONAL
SERVICE CONTRACT WITH THE UNITED STATES.
(a) IN GENERAL?
(1) CONDMONS FOR RECEIVING CREDIT.?Subject to the making of a deposit
under section 8334(c) of title 5, United States Code, upon application to the
Office of Personnel Management within 2 years after the date of the enactment
of this Act, any individual who is an employee (as defined by section 8331(1) or
8401(11) of such title) on such date shall be allowed credit under subchapter III
of chapter 83 of such title for any service if such service was performed?
(A) before November 5, 1985; and
(B) under a personal service contract with the United States, except as
provided in paragraph (3).
(2) CERTIFICATION.?
(A) IN GENERAL?The Office shall, with respect to any service for which
credit is sought under this subsection, accept the certification of the head of
the agency which was party to the contract referred to in paragraph (1XB),
but only if such certification?
(i) states that the agency had intended, through such contract, that
the individual involved (or that persons like the individual involved) be
considered as having been appointed to a position in which such indi-
vidual would be subject to subchapter III of chapter 83 of title 5, United
States Code; and
(ii) indicates the period of service which was performed under the
contract by the individual involved, and includes copies of appropriate
records or other documentation to support the determination as to the
length of such period.
(B) FINALITY.?A decision by an agency head concerning whether or not
to make a certification under this paragraph in any particular instance
shall be at the sole discretion of the agency head, and shall not be subject
to administrative or judicial review.
(3) ExcErrioN.?Nothing in this subsection shall apply with respect to any
service performed under?
(A) a contract for which any appropriations, allocations, or funds were
used under section 636(a)(3) of the Foreign Assistance Act of 1961; or
(B) a contract entered into under section 10(aX5) of the Peace Corps Act.
(b) APPLICABILITY TO ANNUITANTS.?
(1) IN GENERAL.?In the case of any individual who?
(A) performed service for which credit is allowable under subsection (a),
and
(B) retired on an annuity payable under subchapter III of chapter 83 of
title 5, United States Code, after January 23, 1980, and before the date of
the enactment of this Act,
any annuity under such subchapter based on the service of such individual
shall be redetermined to take into account the amendment made by subsection
(a) if application therefor is made, and the deposit requirement under such sub-
section is met, within 2 years after the date of the enactment of this Act.
(2) Amourrrs TO WHICH APPLICABLE.?Any change in an annuity resulting from
a redetermination under paragraph (1) shall be effective with respect to pay-
ments accruing for months beginning after the date of the enactment of this
Act.
SEC. III. EXCLUSION OF FOREIGN NATIONAL EMPLOYEES UNDER CSRS FROM PARTICIPATING IN
THE THRIFT SAVINGS PLAN.
(a) IN GENERAL?Section 8351 is amended?
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(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
"(c) A member of the Foreign Service described in section 103(6) of the Foreign
Service Act of 1980 shall be ineligible to make any election under this section.".
(b) EFFECTIVE DATE.?The amendments made by subsection (a) shall be effective as
of March 31, 1987. Any refund which becomes payable as a result of the preceding
sentence shall, to the extent that such refund involves an individual's contributions
to the Thrift Savings Fund (established under section 8437 of title 5, United States
Code), be adjusted to reflect any earnings attributable thereto.
SEC. 112. FOREIGN NATIONAL EMPLOYEES APPOINTED AFTER DECEMBER 1987 EXCLUDED FROM
CSRS.
Section 8331(1) is amended?
(1) by striking "or" at the end of clause (x);
(2) by striking the period at the end of clause (xi) and inserting in lieu thereof
"; or"; and
(3) by adding after clause (xi) the following:
"(xii) a member of the Foreign Service (as described in section 103(6) of
the Foreign Service Act of 1980), appointed after December 31, 1987.".
SEC. 113. EXCLUSION OF FOREIGN NATIONAL EMPLOYEES FROM FEFtS.
(a) No ELECTION TO CONVERT FROM CSRS.?
(1) IN GENERAL.?Section 301(a) of the Federal Employees' Retirement System
Act of 1986 (Public Law 99-335; 100 Stat. 599) is amended by adding at the end
the following:
"(4) A member of the Foreign Service described in section 103(6) of the Foreign
Service Act of 1980 shall be ineligible to make any election under this subsection.".
(2) EFFECTIVE DATE.?The amendment made by paragraph (1) shall be effective
as of June 30, 1987. Any refund which becomes payable as a result of the pre-
ceding sentence shall, to the extent that such refund involves an individual's
contributions to the Thrift Savings Fund (established under section 8437 of title
5, United States Code), be adjusted to reflect any earnings attributable thereto.
(b) EXCLUSION FROM FERS.?
(1) IN GENERAL.?Section 8401(11) is amended?
(A) by striking "or" at the end of clause (DUD);
(B) by inserting "or" after the semicolon in clause (ii); and
(C) by adding at the end the following:
"(iii) a member of the Foreign Service described in section 103(6) of the
Foreign Service Act of 1980;".
(2) EFFECTIVE DATE.?The amendments made by paragraph (1) shall be effec-
tive as of January 1, 1987. Any refund which becomes payable as a result of the
preceding sentence shall, to the extent that such refund involves an individual's
contributions to the Thrift Savings Fund (established under section 8437 of title
5, United States Code), be adjusted to reflect any earnings attributable thereto.
SEC. 114. EXCLUSION OF CERTAIN ONE-TIME GOVERNMENT CONTRIBUTIONS TO THRIFT SAVINGS
PLAN.
Section 8432(d) is amended by adding at the end the following: "However, no con-
tribution made under subsection (c)(3) shall be subject to, or taken into account, for
purposes of the preceding sentence.".
SEC. 115. GOVERNMENT'S 1 PERCENT THRIFT CONTRIBUTION NOT FORFEITABLE FOR DEATH IN
SERVICE.
Section 8432(g) is amended?
(1) in paragraph (1), by striking "Except as provided in paragraphs (2) and
(3)," and inserting in lieu thereof "Except as otherwise provided in this subsec-
tion,"; and
(2) by adding at the end the following:
"(4) Nothing in paragraph (2) or (3) shall cause the forfeiture of any contributions
made for the benefit of an employee, Member, or Congressional employee under sub-
section (cX1), or any earnings attributable thereto, if such employee, Member, or
Congressional employee is not separated from Government employment as of date of
death.".
SEC. 116. CLARIFICATION RELATING TO AMOUNTS SUBJECT TO LEGAL PROCESS FOR CHILD SUP-
PORT OR ALIMONY.
Section 8437(e)(3) is amended by adding at the end the following: "For the pur-
poses of this paragraph, an amount contributed for the benefit of an individual
under section 8432(cX1) (including any earnings attributable thereto) shall not be
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considered part of the balance in such individual's account unless such amount is
nonforfeitable, as determined under applicable provisions of section 8432(g).".
SEC. 117. CLARIFICATION RELATING TO SOURCE OF FUNDING FOR ADMINISTRATIVE EXPENSES
OF THE THRIFT SAVINGS PLAN.
(a) IN GENERAL.?Section 8437 is amended?
(1) in subsection (d), by inserting a period after "earnings in such Fund" and
by striking the matter thereafter; and
(2) in subsection (e)(1), by inserting "subsection (d) and" before "paragraphs
(2) and (3),".
(b) EFFECTIVE DATE.?The amendments made by subsection (a) shall take effect on
the first day of the first month beginning on or after the date of the enactment of
this Act.
SEC. 118. EXCLUSION FROM AGE-BASED REDUCTION UNDER CHAPTER 83 FOR CSRS PORTION OF
ANNUITY MADE SUBJECT TO REDUCTION UNDER CHAPTER 84 FOLLOWING AN ELEC-
TION INTO FERS.
Section 302(aX4) of the Federal Employees' Retirement System Act of 1986 (Public
Law 99-335; 100 Stat. 603) is amended by adding at the end the following: "Notwith-
standing the preceding sentence, in computing accrued benefits under this para-
graph for an individual retiring under section 8412(g) or 8413(b) of title 5, United
States Code, section 8339(h) of such title (relating to reductions based on age at date
of separation) shall not apply.".
SEC. 119. INTEREST ON REFUNDS OF CERTAIN EXCESS CONTRIBUTIONS BY INDIVIDUALS MAKING
ELECTIONS UNDER TITLE III OF THE FEDERAL EMPLOYEES' RETIREMENT SYSTEM
ACT OF 1986.
(a) FOR INDIVIDUALS ELECTING FERS COVERAGE.?Section 302(c)(2) of the Federal
Employees' Retirement System Act of 1986 (Public Law 99-335; 100 Stat. 605), as
amended by section 302(a) of the Federal Employees' Retirement System Technical
Corrections Act of 1986 (Public Law 99-556; 100 Stat. 3136), is amended to read as
follows:
"(2) In accordance with regulations prescribed by the Office of Personnel Manage-
ment, a refund under this subsection shall be payable upon written application
therefor filed with the Office and shall include interest at the rate provided in sec-
tion 8334(e)(3) of title 5, United States Code. Interest on the refund shall accrue
monthly and shall be compounded annually.".
(b) FOR INDIVIDUALS ELECTING COVERAGE UNDER CSRS WITH OFFSETS FOR SOCIAL
SECURITY.?The last sentence of section 303(a) of the Federal Employees' Retirement
System Act of 1986 (Public Law 99-335; 100 Stat. 605), as added by section 302(b) of
the Federal Employees' Retirement System Technical Corrections Act of 1986
(Public Law 99-556; 100 Stat. 3136), is amended to read as follows: "A refund under
this subsection shall be computed with interest in accordance with section 302(c)(2)
and regulations prescribed by the Office of Personnel Management.".
SEC. 120. EFFECTIVE DATE OF FINAL MERIT INCREASE UNDER THE PERFORMANCE MANAGE-
MENT AND RECOGNITION SYSTEM FOR EMPLOYEES OF SAINT ELIZABETHS HOSPITAL
(a) IN GENERAL.?Notwithstanding any other provision of law, the effective date of
any merit increase under section 5404 of title 5, United States Code, during calen-
dar year 1987 shall, in the case of any individual employed in or under Saint Eliza-
beths Hospital on September 1, 1987, be considered to be the first day of the first
applicable pay period commencing on or after September 1 (rather than October 1)
of such year.
(b) DEFINMON.?For purposes of this section, "Saint Elizabeths Hospital" refers to
the institution identified under section 3(1) of the Saint Elizabeths Hospital and Dis-
trict of Columbia Mental Health Services Act (Public Law 98-621; 98 Stat. 3371).
SEC. 121. DEADLINE FOR AGENCY CONTRIBUTIONS TO THRIFT SAVINGS PLAN.
(a) THE 1-PERCENT CONTRIBUTION.?Section 8432(c)(1)(A) is amended?
(1) by striking "At the end of" and inserting in lieu thereof "At the time pre-
scribed by the Executive Director, but no later than 12 days after the end of";
and
(2) by striking "at the end of each succeeding pay period," and inserting in
lieu thereof "within such time as the Executive Director may prescribe with re-
spect to succeeding pay periods (but no later than 12 days after the end of each
such pay period),".
(b) AMOUNTS BASED ON INDIVIDUAL CONTRIBUTIONS.?The second sentence of sec-
tion 8432(c)(2XA) is amended by striking "at the end of such pay period." and insert-
ing in lieu thereof "within such time as the Executive Director may prescribe, but
no later than 12 days after the end of each such pay period.".
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SEC. 122. AMENDMENTS RELATING TO DISABILITY ANNUITIES.
(a) INITIAL DISABILITY ANNUITY OFFSET TO BE BASED ON ACTUAL SOCIAL SECURITY
DISABILITY INSURANCE BENEFIT; AMOUNT OF OFFSET NOT SUBJECT TO ADJUSTMENT
UNTIL AFTER THE FIRST YEAR.?Section 8452(a)(2)(B)(i) of title 5, United States Code,
is amended to read as follows:
"(BXi) For purposes of this paragraph, the assumed disability insurance benefit of
an annuitant for any month shall be equal to?
"(I) the amount of the disability insurance benefit to which the annuitant is
entitled under section 223 of the Social Security Act for the month in which the
annuity under this subchapter commences, or is restored, or, if no entitlement
to such disability insurance benefits exists for such month, the first month
thereafter for which the annuitant is entitled both to an annuity under this
subchapter and disability insurance benefits under section 223 of the Social Se-
curity Act, adjusted by
"(II) all adjustments made under section 8462(b) after the end of the period
referred to in paragraph (1)(AXi) (or, if later, after the end of the month preced-
ing the first month for which the annuitant is entitled both to an annuity
under this subchapter and disability insurance benefits under section 223 of the
Social Security Act) and before the start of the month involved (without regard
to whether the annuitant's annuity was affected by any of those adjustments).".
(b) REVISED METHOD FOR REDETERMINING A DISABILITY ANNUITY AT AGE 62.?Sec-
tion 8452(b) of title 5, United States Code, is amended to read as follows:
"(b)(1) Except as provided in subsection (d), if an annuitant is entitled to an annu-
ity under this subchapter as of the day before the date of the sixty-second anniver-
sary of the annuitant's birth (hereinafter in this section referred to as the annu-
itant's 'redetermination date'), such annuity shall be redetermined by the Office in
accordance with paragraph (2). Effective as of the annuitant's redetermination date,
the annuity (as so redetermined) shall be in lieu of any annuity to which such annu-
itant would otherwise be entitled under this subchapter.
"(2)(A) An annuity redetermined under this subsection shall be equal to the
amount of the annuity to which the annuitant would be entitled under section 8415,
taking into account the provisions of subparagraph (B).
"(B) In performing a computation under this paragraph?
"(i) creditable service of an annuitant shall be increased by including any
period (or periods) before the annuitant's redetermination date during which
the annuitant was entitled to an annuity under this subchapter; and
"(ii) the average pay which would otherwise be used shall be adjusted to re-
flect all adjustments made under section 8462(b) with respect to any period (or
periods) referred to in clause (i) (without regard to whether the annuitant's an-
nuity was affected by any of those adjustments).".
(C) METHOD FOR APPLYING COST-OF-LIVING ADJUSTMENTS TO CERTAIN DISABILITY
ANNUITY PROVISIONS.?
(1) MINIMUM DISABILITY ANNUITY AMOUNT SUBJECT TO ADJUSTMENT AFTER THE
FIRST YEAR.?Section 8452 is amended?
(A) by redesignating subsection (d) as subsection (d)(1); and
(B) by adding after subsection (dX1), as so redesignated, the following:
"(2) In applying this subsection with respect to any annuitant, the amount of an
annuity so computed under section 8415 shall be adjusted under section 8462 (in-
cluding subsection (c) thereof)?
"(A) to the same extent, and otherwise in the same manner, as if it were an
annuity?
"(i) subject to adjustment under such section; and
"(ii) with a commencement date coinciding with the date the annuitant's
annuity commenced or was restored under this subchapter, as the case may
be; and
"(B) whether the amount actually payable to the annuitant under this section
in any month is determined under this subsection or otherwise.".
(2) DISABILITY ANNUITY COLAS.?
(A) IN GENERAL.?Section 8452(aX1)(B) of title 5, United States Code, is
amended to read as follows:
"(B) An annuity computed under this paragraph?
"(i) shall not, during any period referred to in subparagraph (A)(i), be adjusted
under section 8462; but
"(ii) shall, after the end of any period referred to in subparagraph (A)(i), be
adjusted to reflect all adjustments made under section 8462(b) after the end of
the period referred to in subparagraph (AXi), whether the amount actually pay-
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able to the annuitant under this section in any month is determined under this
subsection or otherwise.".
(B) CLARIFYING AMENDMENT.?Section 8452(a) of title 5, United States
Code, is amended by adding at the end the following:
"(3) Section 8462 shall apply with respect to amounts under this subsection only
as provided in paragraphs (1) and (2).".
(d) EFFECTIVE DATE.?The amendments made by this section shall be effective as
of January 1, 1987, as if they had been enacted as part of the Federal Employees'
Retirement System Act of 1986 (Public Law 99-335; 100 Stat. 514 and following).
SEC. 123. CLARIFYING AMENDMENTS RELATING TO FUNDING.
(a) FUND BALANCE.?Section 8331(18) is amended by adding at the end the follow-
ing:
"but does not include any amount attributable to?
"(i) the Federal Employees' Retirement System; or
"(ii) contributions made under the Federal Employees' Retirement Contri-
bution Temporary Adjustment Act of 1983 by or on behalf of any individual
who became subject to the Federal Employees' Retirement System;".
(b) Section 8423(bX1) is amended by striking the period and inserting in lieu there-
of ", except that in computing any supplemental liability under subparagraph (B),
any benefits, deductions, or other amounts may not be taken into account unless
they relate to a period of service performed by the current or former employee in-
volved while subject to this chapter.".
SEC. 124. CONCURRENT ENTITLEMENT TO BENEFITS UNDER CHAPTER 81 AND CHAPTER 83 OR 84
OF TITLE 5, UNITED STATES CODE.
(a) IN GENERAL.?
(I) AMENDMENTS.?
(A) CSRS.?Section 8337 is amended by striking subsections (f) and (g)
and inserting in lieu thereof the following:
"(f)(1) An individual is not entitled to receive?
"(A) an annuity under this subchapter, and
"(B) compensation for injury to, or disability of, such individual under sub-
chapter I of chapter 81, other than compensation payable under section 8107,
covering the same period of time.
"(2) An individual is not entitled to receive an annuity under this subchapter and
a concurrent benefit under subchapter I of chapter 81 on account of the death of the
same person.
"(3) Paragraphs (1) and (2) do not bar the right of a claimant to the greater bene-
fit conferred by either this subchapter or subchapter I of chapter 81.
"(g) If an individual is entitled to an annuity under this subchapter, and the indi-
vidual receives a lump-sum payment for compensation under section 8135 based on
the disability or death of the same person, so much of the compensation as has been
paid for a period extended beyond the date payment of the annuity commences, as
determined by the Department of Labor, shall be refunded to that Department for
credit to the Employees' Compensation Fund. Before the individual may receive the
annuity, the individual shall?
"(1) refund to the Department of Labor the amount representing the commut-
ed compensation payments for the extended period; or
"(2) authorize the deduction of the amount from the annuity.
Deductions from the annuity may be made from accrued or accruing payments. The
amounts deducted and withheld from the annuity shall be transmitted to the De-
partment of Labor for reimbursement to the Employees' Compensation Fund. When
the Department of Labor finds that the financial circumstances of an individual en-
titled to an annuity under this subchapter warrant deferred refunding, deductions
from the annuity may be prorated against and paid from accruing payments in such
manner as the Department determines appropriate.".
(B) FERS.?Subchapter VI of chapter 84 is amended by inserting after
section 8464 the following:
"6 8464a. Relationship between annuity and workers' compensation
"(aX1) An individual is not entitled to receive?
"(A) an annuity under subchapter II or V, and
"(B) compensation for injury to, or disability of, such individual under sub-
chapter I of chapter 81, other than compensation payable under section 8107,
covering the same period of time.
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"(2) An individual is not entitled to receive an annuity under subchapter IV and a
concurrent benefit under subchapter I of chapter 81 on account of the death of the
same person.
"(3) Paragraphs (1) and (2) do not bar the right of a claimant to the greater bene-
fit conferred by either this chapter or subchapter I of chapter 81.
"(b) If an individual is entitled to an annuity under subchapter II, IV, or V, and
the individual receives a lump-sum payment for compensation under section 8135
based on the disability or death of the same person, so much of the compensation as
has been paid for a period extended beyond the date payment of the annuity com-
mences, as determined by the Department of Labor, shall be refunded to that De-
partment for credit to the Employees' Compensation Fund. Before the individual
may receive the annuity, the individual shall?
"(1) refund to the Department of Labor the amount representing the commut-
ed compensation payments for the extended period; or
"(2) authorize the deduction of the amount from the annuity.
Deductions from the annuity may be made from accrued or accruing payments. The
amounts deducted and withheld from the annuity shall be transmitted to the De-
partment of Labor for reimbursement to the Employees' Compensation Fund. When
the Department of Labor fmds that the financial circumstances of an individual en-
titled to an annuity under subchapter II, IV, or V warrant deferred refunding, de-
ductions from the annuity may be prorated against and paid from accruing pay-
ments in such manner as the Department determines appropriate.".
(2) CHAPTER ANALYSIS.?The analysis for chapter 84 is amended by inserting
after the item relating to section 8464 the following:
"8464a. Relationship between annuity and workers' compensation.".
(b) TECHNICAL AND CONFORMING AMENDMENTS.?
(1) Subchapter V of chapter 84 is amended?
(A) by striking section 8456; and
(B) by redesignating section 8457 as section 8456.
(2) The analysis for chapter 84 is amended?
(A) by striking the item relating to section 8456; and
(B) by striking "8457" and inserting in lieu thereof "8456".
(C) EFFECTIVE DATE.?
(1) IN GENERAL.?Except as provided in paragraph (2), the amendments made
by this section shall be effective as of January 1, 1987, and shall apply with
respect to benefits payable based on a death or disability occurring on or after
that date.
(2) EXCEPTION.?The amendment made by subsection (aX1XA) shall take effect
on the date of the enactment of this Act and shall apply with respect to benefits
payable based on a death or disability occurring on or after that date.
SEC. 125. ELIGIBILITY OF CERTAIN INDIVIDUALS TO PARTICIPATE IN THE THRIFT SAVINGS PLAN.
(a) DEFINITIONS.?For purposes of this section?
(1) the term "Executive Director" means the Executive Director under section
8474 of title 5, United States Code; and
(2) the term "Thrift Savings Plan" refers to the program under subchapter III
of chapter 84 of title 5, United States Code.
(b) REGULATIONS.?
(1) IN GENERAL.?The Executive Director shall prescribe regulations relating
to participation in the Thrift Savings Plan by an individual described in subsec-
tion (c).
(2) SPECIFIC MATTERS TO BE INCLUDED.?Under the regulations?
(A) in computing a percentage of basic pay to determine an amount to be
contributed to the Thrift Savings Fund, the rate of basic pay to be used
shall be the same as that used in computing any amount which the individ-
ual involved is otherwise required, as a condition for participating in the
Civil Service Retirement System or the Federal Employees' Retirement
System (as the case may be), to contribute to the Civil Service Retirement
and Disability Fund; and
(B) an employing authority which would not otherwise make contribu-
tions to the Thrift Savings Fund shall be allowed, with respect to any indi-
vidual under subsection (c) who is serving under such authority, and at the
sole discretion of such authority, to make any contributions on behalf of
such individual which would be permitted or required under the provisions
of section 8432(c) of title 5, United States Code, if such authority were the
individual's employing agency under such provisions.
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(c) APPLICABILITY.?This section applies with respect to any individual participat-
ing in the Civil Service Retirement System or the Federal Employees' Retirement
System as?
(1) an individual who has entered on approved leave without pay to serve as a
full-time officer or employee of an organization composed primarily of employ-
ees (as defined by section 8331(1) or 8401(11) of title 5, United States Code);
(2) an individual assigned from a Federal agency to a State or local govern-
ment under subchapter VI of chapter 33 of title 5, United States Code; or
(3) an individual appointed or otherwise assigned to one of the cooperative ex-
tension services, as defined by section 1404(5) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(5)).
(d) EFFECTIVE DATE.?
(1) IN GENERAL.?Except as provided in paragraph (2), the regulations pre-
scribed under this section shall become effective in accordance with the provi-
sions of such regulations.
(2) ExcErnow.?The regulations prescribed under this section shall, with re-
spect to individuals under subsection (c)(3), be effective as of January 1, 1987.
SEC. 126. SPECIAL PAY OF VETERANS' ADMINISTRATION PHYSICIANS INCLUDED IN AVERAGE
SALARY UNDER FERS.
Section 4118(f) of title 38, United States Code, is amended?
(1) in paragraph (1), by striking "81 or 83" and inserting in lieu thereof "81,
83, or 84"; and
(2) in paragraph (2)?
(A) in the first sentence, by striking "chapter 83 of title 5" and inserting
in lieu thereof "chapter 83 or 84 of title 5, as the case may be";
(B) in the second sentence, by striking "section 8331(4)" and all that fol-
lows thereafter through "; or" and inserting in lieu thereof the following:
"section 8331(4) or 8401(3) of such title (as applicable) only?
"(A) for the purposes of computing benefits paid under section 8337,
8341(d) or (e), 8442(b), 8443, or 8451 of such title; or"; and
(C) in subparagraph (B), by inserting "if' at the beginning thereof.
SEC. 127. APPLICATION DEADLINE FOR CERTAIN FORMER SPOUSES.
Section 4(bX1XB) of the Civil Service Retirement Spouse Equity Act of 1984
(Public Law 98-615; 98 Stat. 3205), as amended by section 201(b)(1)(C) of the Federal
Employees Benefits Improvement Act of 1986 (Public Law 99-251; 100 Stat. 22), is
amended?
(1) in clause (i), by inserting ", and before May 8, 1987" before the semicolon;
and
(2) by amending clause (iv) to read as follows:
"(iv) the former spouse files an application for the survivor annuity with
the Office on or before May 7, 1989; and".
TITLE II?FOREIGN SERVICE RETIREMENT
PART A?GENERAL PROVISIONS
SEC. 201. REFERENCES.
Except as otherwise expressly provided, whenever in this title an amendment or
repeal is expressed in terms of an amendment or repeal to a section or other provi-
sion, the reference shall be considered to be made to a section or other provision of
the Foreign Service Act of 1980 (22 U.S.C. 4041 et seq.).
SEC. 202. FORMER SPOUSES MARRIED BETWEEN 9 MONTHS AND 10 YEARS.
(a) IN GENERAL.?Subchapter I of Chapter 8 (22 U.S.C. 4041 et seq.) is amended by
adding after section 829 the following new section:
"SEc. 830. QUALIFIED FORMER WIVES AND HUSBANDS.?(a) Notwithstanding section
4(h) of the Civil Service Retirement Spouse Equity Act of 1984, section 827 of this
Act shall apply with respect to section 8339(j), section 8341(e), and section 8341(h) of
title 5, United States Code, and section 4 (except for subsection (b)) of the Civil Serv-
ice Retirement Spouse Equity Act of 1984 to the extent that those sections apply to
a qualified former wife or husband. For the purposes of this section any reference in
the Civil Service Retirement Spouse Equity Act of 1984 to the effective date of that
Act shall be deemed to be a reference to the effective date of this section.
"(b)(1) Payments pursuant to this section which would otherwise be made to a par-
ticipant or former participant based upon his service shall be paid (in whole or in
part) by the Secretary of State to another person if and to the extent expressly pro-
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vided for in the terms of any court order or spousal agreement. Any payment under
this paragraph to a person bars recovery by any other person.
"(2) Paragraph (1) shall only apply to payments made by the Secretary of State
under this chapter after the date of receipt by the Secretary of State of written
notice of such court order or spousal agreement and such additional information
and documentation as the Secretary of State may prescribe.
"(c) For the purposes of this section, the term 'qualified former wife or husband'
means a former wife or husband of an individual if?
"(1) such individual performed at least 18 months of civilian service creditable
under this chapter; and
"(2) the former wife or husband was married to such individual for at least 9
months but not more than 10 years.
"(d) Regulations issued pursuant to section 827 to implement this section shall be
submitted to the Committee on Post Office and Civil Service and the Committee on
Foreign Affairs of the House of Representatives and the Committee on Foreign Re-
lations of the Senate. Such regulations shall not take effect until 60 days after the
date on which such regulations are submitted to the Congress.".
(b) CONFORMING AMENDMENT.?The table of contents in section 2 of the Foreign
Service Act of 1980 is amended by inserting after the item relating to section 829
the following:
"Sec. 830. Qualified former wives and husbands.".
SEC. 203. ELECTION TO PROVIDE SURVIVOR ANNUITY FOR CERTAIN SPOUSES ACQUIRED BEFORE
THE EFFECTIVE DATE OF THE FOREIGN SERVICE ACT OF 1980.
(a) ELECTION.?A former participant who married his or her current spouse before
the effective date of the Foreign Service Act of 1980 and who married such spouse
after retirement under the Foreign Service Retirement and Disability System and
who was unable to provide a survivor annuity for such spouse because?
(1) the participant was married at the time of retirement and elected not to
provide a survivor annuity for that spouse at the time of retirement, or
(2) subject to subsection (e), the participant failed to notify the Secretary of
State of the participant's post-retirement marriage within one year after the
marriage,
may make the election described in subsection (b).
(b) ELECTION DESCRIBED.?
(1) The election referred to in subsection (a) is an election in writing?
(A) to provide for a survivor annuity for such spouse under section 806(g)
of the Foreign Service Act of 1980 (22 U.S.C. 4046(g));
(B) to have his or her annuity reduced under section 806(bX2) of such Act;
and
(C) to deposit in the Foreign Service Retirement and Disability Fund an
amount determined by the Secretary of State, as nearly as may be adminis-
tratively feasible, to reflect the amount by which such participant's annuity
would have been reduced had the election been continuously in effect since
the annuity commenced, plus interest computed under paragraph (2).
(2) For the purposes of paragraph (1), the annual rate of interest shall be 6
percent for each year during which the annuity would have been reduced if the
election had been in effect on and after the date the annuity commenced.
(c) OFFSET.?If the participant does not make the deposit referred to in subsection
(b)(1)(C), the Secretary of State shall collect such amount by offset against such par-
ticipant's annuity, up to a maximum of 25 percent of the net annuity otherwise pay-
able to such participant. Such participant is deemed to consent to such offset.
(d) NoricE.?The Secretary of State shall provide for notice to the general public
of the right to make an election under this section.
(e) PROOF OF ArrEmFrEn ELEc-rIoN.?In any case in which subsection (a)(2) applies,
the retired employee or Member shall provide the Secretary of State with such doc-
umentation as the Secretary of State shall decide is appropriate, to show that such
participant attempt to elect a reduced annuity with survivor benefit for his or her
current spouse and that such election was rejected by the Secretary of State because
it was untimely filed.
(0 DEPOSIT.?A deposit required by this subsection may be made by the surviving
spouse of the participant.
(g) LIMITATION.?The election authorized in subsection (a) may only be made
within one year after the date of enactment of this title in accordance with proce-
dures prescribed by the Secretary of State.
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(h) DEmrrioNs.?For the purposes of this section, the terms "participant" and
"surviving spouse" have the same meaning given such terms in subchapter I of
chapter 8 of the Foreign Service Act of 1980.
SEC. 204. BENEFITS FOR CERTAIN FORMER SPOUSES OF MEMBERS OF THE FOREIGN SERVICE.
(a) IN GENERAL.?Subchapter I of Chapter 8 (22 U.S.C. 3901 et seq.), as amended
by section 202 of this title, is amended by inserting after section 830 the following:
"SEC. 831. RETIREMENT BENEFITS FOk CERTAIN FORMER SPOUSES.
"(a) Any individual who was a former spouse of a participant or former partici-
pant on February 14, 1981, shall be entitled, to the extent of available appropria-
tions, and except to the extent such former spouse is disqualified under subsection
(b), to benefits?
"(1) if married to the participant throughout the creditable service of the par-
ticipant, equal to 50 percent of the benefits of the participant; or
"(2) if not married to the participant throughout such creditable service,
equal to that former spouse's pro rata share of 50 percent of such benefits.
"(b) A former spouse shall not be entitled to benefits under this section if?
"(1) the former spouse remarries before age 55; or
"(2) the former spouse was not married to the participant at least 10 years
during service of the participant which is creditable under this chapter with at
least 5 years occurring while the participant was a member of the Foreign Serv-
ice.
"(cX1) The entitlement of a former spouse to benefits under this section?
"(A) shall commence on the later of?
"(i) the day the participant upon whose service the benefits are based be-
comes entitled to benefits under this chapter; or
"(ii) the first day of the month in which the divorce or annulment in-
volved becomes final; and
"(B) shall terminate on the earlier of?
"(i) the last day of the month before the former spouse dies or remarries
before 55 years of age; or
"(ii) the date of the benefits of the participant terminates.
"(2) Notwithstanding paragraph (1), in the case of any former spouse of a disabil-
ity annuitant?
"(A) the benefits of the former spouse shall commence on the date the partici-
pant would qualify on the basis of his or her creditable service for benefits
under this chapter (other than a disability annuity) or the date the disability
annuity begins, whichever is later, and
"(B) the amount of benefits of the former spouse shall be calculated on the
basis of benefits for which the participant would otherwise so qualify.
"(3) Benefits under this section shall be treated the same as an annuity under sec-
tion 814(aX7) for purposes of section 806(h) or any comparable provision of law.
"(4XA) Benefits under this section shall not be payable unless appropriate written
application is provided to the Secretary, complete with any supporting documenta-
tion which the Secretary may by regulation require, within 30 months after the ef-
fective date of this section. The Secretary may waive the 30-month application re-
quirements under this subparagraph in any case in which the Secretary determines
that the circumstances so warrant.
"(B) Upon approval of an application provided under subparagraph (A), the appro-
priate benefits shall be payable to the former spouse with respect to all periods
before such approval during which the former spouse was entitled to such benefits
under this section, but in no event shall benefits be payable under this section with
respect to any period before the effective date of this section.
'(d) For the purposes of this section, the term 'benefits' means?
"(1) with respect to a participant or former participant subject to this sub-
chapter, the annuity of the participant or former participant; and
"(2) with respect to a participant or former participant subject to subchapter
II, the benefits of the participant or former participant under that subchapter.
"(e) Nothing in this section shall be construed to impair, reduce, or otherwise
affect the annuity or the entitlement to an annuity of a participant or former par-
ticipant under this chapter.
"SEC. 832. SURVIVOR BENEFITS FOR CERTAIN FORMER SPOUSES.
"(a) Any individual who was a former spouse of a participant or former partici-
pant on February 14, 1981, shall be entitled, to the extent of available appropria-
tions, and except to the extent such former spouse is disqualified under subsection
(b), to a survivor annuity equal to 55 percent of the greater of?
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"(1) the full amount of the participant's or former participant's annuity, as
computed under this chapter; or
"(2) the full amount of what such annuity as so computed would be if the par-
ticipant or former participant had not withdrawn a lump-sum portion of contri-
butions made with respect to such annuity.
"(b) If an election has been made with respect to such former spouse under section
2109 or 806(f), then the survivor annuity under subsection (a) of such former spouse
shall be equal to the full amount of the participant's or former participant's annuity
referred to in subsection (a) less the amount of such election.
"(c) A former spouse shall not be entitled to a survivor annuity under this section
if?
"(1) the former spouse remarries before age 55; or
"(2) the former spouse was not married to the participant at least 10 years
during service of the participant which is creditable under this chapter with at
least 5 years occurring while the participant was a member of the Foreign Serv-
ice.
"(dX1) The entitlement of a former spouse to a survivor annuity under this sec-
tion?
"(A) shall commence?
"(i) in the case of a former spouse of a participant or former participant
who is deceased as of the effective date of this section, beginning on such
date; and
"(ii) in the case of any other former spouse, beginning on the later of?
"(I) the date that the participant or former participant to whom the
former spouse was married dies; or
"(II) the effective date of this section; and
"(B) shall terminate on the last day of the month before the former spouse's
death or remarriage before attaining the age 55.
"(2XA) A survivor annuity under this section shall not by payable unless appropri-
ate written application is provided to the Secretary, complete with any supporting
documentation which the Secretary may by regulation require, within 30 months
after the effective date of this section. The Secretary may waive the 30-month appli-
cation requirement under this subparagraph in any case in which the Secretary de-
termines that the circumstances so warrant.
"(B) Upon approval of an application provided under subparagraph (A), the appro-
priate survivor annuity shall be payable to the former spouse with respect to all
periods before such approval during which the former spouse was entitled to such
annuity under this section, but in no event shall a survivor annuity be payable
under this section with respect to any period before the effective date of this section.
"(e) The Secretary shall?
"(1) as soon as possible, but not later than 60 days after the effective date of
this section, issue such regulations as may be necessary to carry out this sec-
tion; and
"(2) to the extent practicable, and as soon as possible, inform each individual
who was a former spouse of a participant or former participant on February 14,
1981, of any rights which such individual may have under this section.
"(f) Nothing in this section shall be construed to impair, reduce, or otherwise
affect the annuity or the entitlement to an annuity of a participant or former par-
ticipant under this chapter.
"SEC. 833. HEALTH BENEFITS FOR CERTAIN FORMER SPOUSES.
"(a) Except as provided in subsection (c)(1), any individual?
"(1) formerly married to an employee or former employee of the Foreign Serv-
ice, whose marriage was dissolved by divorce or annulment before May 7, 1985;
"(2) who, at any time during the 18-month period before the divorce or annul-
ment became final, was covered under a health benefits plan as a member of
the family of such employee or former employee; and
"(3) who was married to such employee for not less than 10 years during peri-
ods of government service by such employee, is eligible for coverage under a
health benefits plan in accordance with the provisions of this section.
"(b)(1) Any individual eligible for coverage under subsection (a) may enroll in a
health benefits plan for self alone or for self and family if, before the expiration of
the 6-month period beginning on the effective date of this section, and in accordance
with such procedures as the Director of the Office of Personnel Management shall
by regulation prescribe, such individual?
"(A) files an election for such enrollment; and
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"(B) arranges to pay currently into the Employees Health Benefits Fund
under section 8909 of title 5, United States Code, an amount equal to the sum of
the employee and agency contributions payable in the case of an employee en-
rolled under chapter 89 of such title in the same health benefits plan and with
the same level of benefits.
"(2) The Secretary shall, as soon as possible, take all steps practicable?
"(A) to determine the identity and current address of each former spouse eli-
gible for coverage under subsection (a); and
"(B) to notify each such former spouse of that individual's rights under this
section.
"(3) The Secretary shall waive the 6-month limitation set forth in paragraph (1) in
any case in which the Secretary determines that the circumstances so warrant.
"(c)(1) Any former spouse who remarries before age 55 is not eligible to make an
election under subsection (b)(1).
"(2) Any former spouse enrolled in a health benefits plan pursuant to an election
under subsection (bX1) may continue the enrollment under the conditions of eligibil-
ity which the Director of the Office of Personal Management shall by regulation
prescribe, except that any former spouse who remarries before age 55 shall not be
eligible for continued enrollment under this section after the end of the 31-day
period beginning on the date of remarriage.
"(d) No individual may be covered by a health benefits plan under this section
during any period in which such individual is enrolled in a health benefits plan
under any other authority, nor may any individual be covered under more than one
enrollment under this section.
"(e) For purposes of this section the term 'health benefits plan' means an ap-
proved health benefits plan under chapter 89 of title 5, United States Code.".
(b) CONFORMING AMENDMENT.?The table of contents in section 2 of the Foreign
Service Act of 1980 is amended by inserting after the item relating to section 830
the following:
"Sec. 831. Retirement benefits for certain former spouses.
"Sec. 832. Survivor benefits for certain former spouses.
"Sec. 833. Health benefits for certain former spouses.
PART B?FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM
SEC. 211. DEFINITION OF SURVIVING SPOUSE.
Paragraph (13) of section 804 (22 U.S.C. 4044) is amended?
(1) by striking out ", in the case of death in service or marriage after retire-
ment";
(2) by striking out "one year" and inserting in lieu thereof "9 months"; and
(3) by inserting before the semicolon the following: ", except that the require-
ment for at least 9 months of marriage shall be deemed satisfied in any case in
which the participant or annuitant dies within the applicable 9-month period,
if?
"(A) the death of such participant or annuitant was accidental; or
"(B) the surviving spouse of such individual had been previously married
to the individual and subsequently divorced and the aggregate time mar-
ried is at least 9 months".
SEC. 212. CONTRIBUTIONS FOR PRIOR SERVICE
Paragraph (1) of section 805(d) (22 U.S.C. 4045(d)) is amended?
(1) by striking out "equal to" and inserting in lieu thereof ". Special contribu-
tions for purposes of subparagraph (A) shall equal"; and
(2) by adding at the end thereof the following: "Special contributions for re-
funds under subparagraph (B) shall equal the amount of the refund received by
the participant.". '?
SEC. 213. COMPUTATION OF ANNUITIES.
(a) JOINT ELECTION To WAIVE SURVIVOR ANNUITY WITH RESPECT TO A FORMER
SPOUSE.?Subparagraph (C) of section 806(b)(1) (22 U.S.C. 4046(b)(1)) is amended by
striking out "12-month" and inserting in lieu thereof "24-month"; and
(b) RECALL SERVICE.?Paragraph (2) of section 806(i) (22 U.S.C. 4046 (i)) is amended
by striking out "section 814(b)" and inserting in lieu thereof "this subchapter".
SEC. 214. SURVIVOR BENEFITS FOR CHILDREN.
(a) SURVIVOR BENEFITS FOR CHILDREN.?Sectio/1 806 of Chapter 8 (22 U.S.C. 4046)
(as amended by section 213 of this Act) is amended?
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(1) in subsection (c), by inserting "or a former spouse who is the natural or
adoptive parent of a surviving child of the annuitant" after "survived by a
spouse" each place it appears; and
(2) in subsection (d), by amending the first sentence to read as follows: "On
the death of the surviving spouse or former spouse or termination of the annu-
ity of a child, the annuity of any other child or children shall be recomputed
and paid as though the spouse, former spouse, or child had not survived the
participant".
(b) DEATH IN SERVICE.?Section 809 (22 U.S.C. 4049) is amended?
(1) in subsection (c), by inserting "or a former spouse who is the natural or
adoptive parent of a surviving child of the annuitant," after "spouse"; and
(2) in subsection (d), by inserting "or a former spouse who is the natural or
adoptive parent of a surviving child of the annuitant," after "spouse,".
SEC. 215. MINIMUM AGE REQUIREMENT.
(a) DISABILITY AmslurrY.?Subsections (a) and (b) of section 808 (22 U.S.C. 4048) are
each amended by striking out "65" each place it appears and inserting in lieu there-
of "60".
(b) DEATH IN SERVICE.?Subsection (e) of section 809 (22 U.S.C. 4049) is amended
by striking out "65" and inserting in lieu thereof "60".
SEC. 216. VOLUNTARY RETIREMENT.
Section 811 of Chapter 8 (22 U.S.C. 4051) is amended by adding at the end thereof
the following: "The Secretary shall withhold consent for retirement under this sec-
tion by any participant who has not been a member of the Service for 5 years. Any
participant who voluntarily separates from the Service before completing 5 years in
the System and who, on the date of separation, would be eligible for an annuity,
based on a voluntary separation, under section 8336 or 8338 of title 5, United States
Code, if the participant had been covered under the Civil Service Retirement
System rather than subject to this chapter while a member of the Service, may re-
ceive an annuity under section 8836 or 8338, notwithstanding section 8333(b) of title
5, United States Code, if all contributions transferred to the Fund under section
805(cX1) of this Act, as well as all contributions withheld from the participant's pay
or contributed by the employer, and deposited into the Fund during the period he or
she was subject to this chapter, including interest on these amounts, are transferred
to the Civil Service Retirement and Disability Fund effective on the date the partici-
pant separates from the Service.".
SEC. 217. FORMER SPOUSES.
(a) 5 YEAR FOREIGN SERVICE REQUIREMENT.?Paragraph (1) of section 814(a) is
amended by inserting "if such former spouse was married to the participant for at
least 10 years during service of the participant which is creditable under this chap-
ter with at least 5 of such years occurring while the participant was a member of
the Foreign Service and" after "annuity".
(b) COURT ORDER EFFECTIVE 24 MONTHS AFTER MARRIAGE IS DISSOLVED.?Para-
graph (4) of section 814(a) (22 U.S.C. 4054(a)) is amended by striking out "12" and
inserting in lieu thereof "24".
(C) MONTHLY RATE OF ANNUITY NOT APPLICABLE IN CERTAIN SITUATION.?
(1) Subsection (1) of section 806 (22 U.S.C. 4046) is repealed.
(2) Subsection (d) of section 814 (22 U.S.C. 4054) is repealed.
SEC. 218. LUMP SUM PAYMENTS.
(a) REQUIREMENTS FOR PAYMENT.?Subsection (a) of section 815 (22 U.S.C. 4055) is
amended to read as follows:
"(a)(1) A participant is entitled to be paid a lump-sum credit if the participant?
"(A) is separated from the Service for at least 31 consecutive days, or is trans-
ferred to a position in which the participant is not subject to this chapter and
remains in such a position for at least 31 consecutive days;
"(B) files an application with the Secretary of State for payment of the lump-
sum credit;
"(C) is not reemployed in a position in which the participant is subject to this
chapter at the time the participant files the application;
"(D) will not become eligible to receive an annuity under this subchapter
within 31 days after filing the application; and
"(E) has notified any spouse or former spouse the participant may have of the
application for payment in accordance with regulations prescribed by the Secre-
tary of State.
Such regulations may provide for waiver of subparagraph (E) under circumstances
described in section 806(bX1XD).
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"(2) Such lump sum credit shall be paid to the participant and to any former
spouse of the participant in accordance with subsection (i).".
SEC. 219. COST OF LIVING ADJUSTMENTS.
Paragraph (1) of section 826(c) (22 U.S.C. 4066(c)) is amended to read as follows:
"(1) The first increase (if any) made under this section to an annuity which is
payagble from the Fund to a participant or to the surviving spouse or former
spouse of a deceased participant who died in service or a deceased annuitant
whose annuity was not increased under this section, shall be equal to the prod-
uct (adjusted to the nearest Yio of 1 percent) of?
"(A) 1/la of the applicable percent change computed under subsection (b)
of this section, multiplied by
"(B) the number of months (counting any portion of a month as a
month)?
"(i) for which the annuity was payable from the Fund before the ef-
fective date of the increase, or
"(ii) in the case of a surviving spouse or former spouse of a deceased
annuitant whose annuity has not been so increased, since the annuity
was first payable to the deceased annuitant".
PART C?FOREIGN SERVICE PENSION SYSTEM
SEC. 241. DEFINITION OF LUMP-SUM CREDIT.
Section 852 of Chapter 8 (22 U.S.C. 4071a) is amended?
(1) by redesignating paragraph (3), (4), (5), (6), and (7) as paragraphs (4), (6), (6),
(7), and (8), respectively; and
(2) by inserting after paragraph (2) the following new paragraph:
"(3) the term lump-sum credit' means the unrefunded amount consisting of?
"(A) retirement deductions made from the basic pay of a particpant
under section 856 of this chapter (or under section 204 of the Federal Em-
ployees' Retirement Contribution Temporary Adjustment Act of 1983);
"(B) amounts deposited by a participant under section 854 to obtain credit
under this System for prior civilian or military service; and
"(C) interest on the deductions and deposits which, for any calendar year,
shall be equal to the overall average yield to the Fund during the preceding
fiscal year from all obligations purchased by the Secretary of the Treasury
during such fiscal year under section 819, as determined by the Secretary of
the Treasury (compounded annually); but does not include interest?
"(i) if the service covered thereby aggregates 1 year or less; or
"(ii) for a fractional part of a month in the total service;".
SEC. 242. CONTRIBUTION FOR CREDITABLE SERVICE OF EMPLOYEE OF A MEMBER OR OFFICE OF
THE CONGRESS.
The second sentence of subsection (e) of section 854 (22 U.S.C. 4071c) is amended?
(1) by striking out "matching"; and
(2) by inserting "determined under section 857(a)" after "participant)".
SEC. 243. CONFORMING, AMENDMENT, HEALTH CARE.
Subsection (b) of section 904 (22 U.S.C. 4084) is amended by inserting "or Foreign
Service Pension System" after "Foreign Service Retirement and Disability System".
PART D?SAVINGS PROVISIONS AND EFFECTIVE DATE
SEC. 261. EFFECTIVE DATE.
(a) IN GENERAL?Except as provided in subsection (b), this title and the amend-
ments made by this title shall take effect 90 days after the date of enactment of this
title.
(b) EXCEPTIONS.-
(1) The amendments made by section 202 shall apply to any individual who,
on or after the date of enactment of this title, is married to a participant or
former participant.
(2) The amendment made by section 217(a) shall not apply with respect to the
former spouse of a participant or former participant who is subject to Subchap-
ter I of Chapter 8 of the Foreign Service Act of 1980 if, on the date of enact-
ment of this title, that former participant who is subject to Subchapter I of
Chapter 8 of the Foreign Service Act of 1980 if, on the date of enactment of this
title, that former spouse?
(A) was the spouse of that participant or former participant; or
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(B) is entitled to an annuity under section 814 of the Foreign Service Act
of 1980 pursuant to the divorce or annulment of the marriage to that par-
ticipant or former participant.
(c) DEFINMONS.?For the purpose of this section, the terms "participant" and
"former participant" have the same meaning as such terms in chapter 8 of the For-
eign Service Act of 1980.
EXPLANATION OF COMMITTEE AMENDMENT
The committee amendment strikes all after the enacting clause
and inserts a substitute text. The explanation of the substitute text
is contained in the "Explanation of the Committee Amendment"
set forth later in this report.
PURPOSE
The purpose of H.R. 3395 is to make necessary changes in laws
relating to the Civil Service Retirement System, the Federal Em-
ployees' Retirement System, the Foreign Service Retirement
System, and the Foreign Service Pension System.
COMMITTEE ACTION
H.R. 3395 was introduced by Chairman William D. Ford on Octo-
ber 1, 1987. On October 6, 1987, the Committee on Post Office and
Civil Service ordered H.R. 3395 favorably reported by a voice vote,
a quorum being present.
STATEMENT
H.R. 3395 makes numerous amendments to provisions of law re-
lating to the Civil Service Retirement System (CSRS), the Federal
Employees Retirement System (FERS), the Foreign Service Retire-
ment System (FSRS), and the Foreign Service Pension System
(FSPS). The amendments are generally technical in nature and ad-
dress problems which have been discovered during implementation
of the Federal Employees' Retirement System Act of 1986 (Public
Law 99-335) (FERSA)
The committee staff has discussed the amendments made by the
bill with representatives of affected agencies. In fact, most of the
amendments have been proposed by executive branch agencies. In
some instances provisions of the bill pertain to matters within the
jurisdiction of other committees of the House. Those committees
have been consulted and letters from various committee chairmen
concerning these matters are set forth below:
HOUSE OF REPRESENTATIVES,
COMMITTEE ON FOREIGN AFFAIRS,
Washington, DC, October 2, 1987.
Hon. WILLIAM D. FORD,
Chairman, Committee on the Post Office and Civil Service, Cannon
Building, Washington, DC.
DEAR MR. CHAIRMAN: On Tuesday, October 6, the Committee on
the Post Office and Civil Service is scheduled to markup H.R. 3395,
providing for technical amendments to the Federal Employees Per-
sonnel System. It is my understanding that an amendment to this
legislation, dealing with benefits to former spouses of members of
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the Foreign Service, may be offered by Representative Schroeder in
full committee markup. This amendment would make certain tech-
nical changes to existing law and would include language relating
to benefits for former spouses as included in the House-passed ver-
sion of the State Department Authorization Act for fiscal years
1988 and 1989. If this amendment is accepted by your full commit-
tee and H.R. 3395 is favorably reported, the Committee on Foreign
Affairs will not request sequential referral of the legislation.
Because some of the language in the Schroeder amendment may
potentially be included in two legislative vehicles, it would be my
understanding that the provision dealing with retirement, health,
and survival benefits for former spouses would be deleted from one
of the bills, once the provision is signed into law.
Thank you for your kind attention to this matter.
With warm regards,
Sincerely,
DANTE B. FASCELL,
Chairman.
HOUSE OF REPRESENTATIVES,
COMMITTEE ON VETERANS' AFFAIRS,
Washington, DC, September 28, 1987.
Hon. WILLIAM D. FORD,
Chairman, Committee on Post Office and Civil Service, House of
Representatives, Washington, DC.
DEAR MR. CHAIRMAN: Bob Lockhart called to our attention an
amendment proposed by the Office of Personnel Management to
section 4118(f) of title 38, United States Code, which would provide
?that special pay for physicians and dentists in the Veterans' Ad-
ministration may, under certain conditions, be included in the com-
putation of the average salary for Civil Service retirement pur-
poses. This amendment insures that special pay for these individ-
uals will be treated the same under FERS as under CSRS.
Mr. Chairman, we appreciate your calling to our attention mat-
ters within our jurisdiction and we are grateful to have had an op-
portunity to review the proposed amendment. I am satisfied with
the amendment and have no objection to it being contained in a
bill which you may take to the floor. I'm grateful to you and your
very excellent staff.
Sincerely,
G.V. (Somnr) Montgomery,
Chairman.
HOUSE OF REPRESENTATIVES,
COMMITTEE ON THE DISTRICT OF COLUMBIA,
Washington, DC, May 7, 1987.
Hon. WILLIAM D. FORD,
Chairman, Committee on the Post Office and Civil Service, Cannon
House Office Building, Washington, DC.
DEAR CHAIRMAN FORD: In 1984, the Committee on the District of
Columbia, which I chair, passed legislation transferring St. Eliza-
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beths Hospital from federal control to that of the District of Colum-
bia. P.L. 98-621, the St. Elizabeths Hospital and District of Colum-
bia Mental Health Services Act, begins the transfer process Octo-
ber 1, 1987.
In order to assure that this process moves as smoothly as possi-
ble, I request that two technical amendments enclosed herein be in-
cluded in the legislation for, "The Federal Employment Retirement
Systems Act of 1986".
Should you have any questions regarding this, please contact me
or have staff call Mr. Ronald C. Willis, Senior Staff Associate, Com-
mittee on the District of Columbia, at X54457.
Sincerely,
RONALD V. DELLUMS,
Chairman.
EXPLANATION OF THE COMMITTEE AMENDMENT
TITLE I
Title I makes amendments relating to the Civil Service Retire-
ment System and the Federal Employees' Retirement System.
Section 101. References
Section 101 provides that, except as otherwise provided, refer-
ences in title I to sections or other provisions of law shall be consid-
ered references to sections or provisions of title 5, United States
Code. Similarly, in the explanation of title I, references to sections
or provisions of law are references to title 5 unless otherwise indi-
cated.
Section 102. Deposits for "covered service" after 1986 for employees
under CSRS offset provisions
Section 102 of the committee amendment amends section 8334(c)
relating to deposits for service for which retirement contributions
were not withheld. Section 8334(c) authorizes, and prescribes appro-
priate amounts for, deposits for such nondeduction service. Under
section 8334(c) the required deposit, generally, is 7 percent of basic
pay. For service subject to the Federal Employees' Retirement Con-
tribution Adjustment Act of 1983, the required deposit is 1.3 per-
cent of basic pay. There is no deposit specified, however, for nonde-
duction service which becomes creditable under the Civil Service
Retirement System offset provisions of sections 8334(k) and 8349.
Offset service is service which is subject to both Social Security cov-
erage and CSRS. The amendment made by section 102 of the com-
mittee amendment provides that the appropriate deposit for nonde-
duction offset service performed after December 31, 1986, is the
amount that would have been deducted under the offset provisions
of section 8334(k) had the employee's pay been subject to that sec-
tion. Generally, this amount is equal to the employee's basic pay
multiplied by the difference between 7 percent and the OASDI tax.
Section 103. Amendments relating to law enforcement officers and
firefighters
Section 103 of the committee amendment makes several amend-
ments relating to retirement benefits for law enforcement officers
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and firefighters as those terms are defined in sections 8331(20) and
(21) (relating to employees under CSRS) and section 8401(14) and
(17) (relating to employees under FERS).
Section 103(a) of the committee amendment amends section 3307.
Section 3307 concerns the establishment of maximum entry ages. It
permits an agency head, with the concurrence of the President's
designated agent, to fix minimum and maximum age limits for ap-
pointments of law enforcement officers and firefighters who are
covered by CSRS (section 3307(d)). Inadvertently, no similar author-
ity to fix age limits is provided with respect to law enforcement of-
ficers or firefighters under FERS. Section 103(a) of the committee
amendment adds a new section 3307(e) which authorizes agency
heads to fix such age limits. It also deletes the requirement that
the President designate an agent to concur in the fixing of age
limits. As a practical matter, the agency head makes the determi-
nation. The required concurrence is an unnecessary additional ad-
ministrative action.
Section 103(b) of the committee amendment amends section
8704(c)(2), relating to determining annual pay rates for purposes of
the Federal Employee Group Life Insurance Program, to include a
reference to section 8401(17) (the "law enforcement officer" defini-
tion under FERS). That reference was inadvertently omitted in
FERSA.
Section 103(c) of the committee amendment amends section
8401(17) to include within the definition of "law enforcement offi-
cer" under FERS certain members of the United States Park Police
and the Uniformed Division of the Secret Service. Park Police are
covered by the District of Columbia Police and Firefighters' Retire-
ment System. Similarly, certain Secret Service employees are al-
lowed to join the D.C. System after 10 years of Federal service in-
volving protection of the President. The D.C. System provides bene-
fits similar, but not identical, to those provided to law enforcement
officers under CSRS and FERS. Individuals under the D.C. System
are excluded from CSRS. FERSA brings Park Police and Secret
Service personnel hired after December 31, 1983, under FERS. Al-
though these individuals are commonly thought to be law enforce-
ment officers, the Office of Personnel Management says they do
not meet the FERS definition of "law enforcement officer" under
section 8401(17), and thus do not qualify for FERS law enforcement
officer benefits. Section 103(c) of the committee amendment
amends section 8401(17) to ensure these individuals will receive
FERS law enforcement officer benefits.
Sections 103(c) of the committee amendment also amends sec-
tions 8401(14) and 8401(17) to eliminate the requirement that fire-
fighters and law enforcement officers who are transferred to ad-
ministrative or supervisory positions must have completed at least
ten years of law enforcement or firefighter service prior to such a
transfer in order to continue coverage under the law enforcement
or firefighter retirement provisions. Various law enforcement agen-
cies have argued that this 10-year requirement will have a disas-
trous effect on their ability to promote talented employees to super-
visory or administrative positions.
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Section 103(d) of the committee amendment is a technical
amendment to exclude those Park Police and Secret Service Per-
sonnel covered by FERS from the D.C. System.
Section 103(e) of the committee amendment is a clarifying
amendment which ensures that Federal employees who are covered
by both the D.C. System and Social Security will be treated in a
manner similar to other Federal employees who have such dual
coverage. Their retirement deductions will be reduced by their
Social Security taxes and their retirement benefits will be reduced
when they become eligible for Social Security benefits based on the
same period of simultaneous coverage.
Section 104. Military service deposits by survivors
Section 104 of the committee amendment amends sections 8422(e)
and 8411(c)(4)(A) to authorize survivors of deceased employees to
make deposits for military service which is creditable under FERS.
In the event that an employee dies without having made or com-
pleted a deposit owed for civilian service, section 8411(f) allows the
deposit to be made by the employee's survivor. Due to an oversight,
however, there is no similar authority with respect to desposits for
military service. Section 8411(c)(4) states that deposits made by sur-
vivors under section 8411(0(4) will be considered in determining
creditability of military service performed by a deceased employee.
Since section 8411(0(4) deals only with deposits for civilian service,
the reference to this provision in section 8411(c)(4) is erroneous.
This amendment corrects the erroneous reference and allows survi-
vors to make deposits for military service.
Section 105. Deposits and refunds relating to certain service under
the Civil Service Retirement System
Section 105 of the committee amendment clarifies and revises
certain rules concerning deposits and refunds related to service
under CSRS for employees covered by FERS.
Section 105(a) of the committee amendment amends section
8411(0(1) to provide that a deposit under that section may be made
only with respect to a refund received pursuant to an application
filed with OPM before the date on which an employee or Member
first becomes subject to FERS. Deposits for refunded service are
generally prohibited under FERS. However, section 8411 allows de-
posits under FERS for pre-1989 civilian service performed subject
to CSRS but creditable under FERS, including service for which
CSRS contributions were made and subsequently refunded. To be
consistent with the general bar on deposits of refunded contribu-
tions, this deposit authority with respect to employees who are sub-
ject to FERS should be limited to those who apply for refunds
before becoming subject to FERS.
Except in the case of an employee who begins FERS-covered
service after completing five or more years of civilian service, if an
employee becomes subject to FERS, past civilian and military serv-
ice become creditable under FERS rather than CSRS. Once this
prior service has become FERS service, deposit rules generally ap-
plicable to FERS service should apply and an employee should not
be permitted to redeposit withdrawn retirement contributions
which covered that prior service.
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Section 105(b) of the committee amendment amends the last sen-
tence of section 8342(a) to authorize partial refunds of contributions
made under CSRS for service which subsequently becomes credita-
ble under FERS. The amendment applies in the case of an employ-
ee who becomes subject to FERS automatically, as opposed to one
who elects FERS coverage. If an employee who has completed less
than five years under CSRS becomes subject to FERS, that CSRS
service, becomes creditable under FERS rather than CSRS. Since
CSRS contributions (generally 7 percent) exceed those required
under FERS (generally 1.3 percent), an employee has paid too
much for the service which is now creditable under FERS. The
amendment authorizes a refund of the difference between the
CSRS contribution and 1.3 percent of basic pay plus interest on the
amount payable.
Section 106. Option for certain employees to elect FERS coverage
Section 106 of the committee amendment amends section 310(a)
of FERSA to permit certain employees to elect FERS coverage.
Under subsections (g), (i), and (1) of section 8347, employees serv-
ing under certain types of appointments (generally temporary, in-
definite, and term appointments) may be, and have been, adminis-
tratively excluded from CSRS coverage. Additionally, if these em-
ployees have five or more years of creditable prior CSRS service,
they are also excluded from FERS. Although FERSA authorizes
similar administrative exclusions (section 8402(c)) at least one
agency authorized serving under these types of appointments from
FERS. The amendment permits those individuals excluded from
FERS by virtue of five or more years prior CSRS service but not
excluded by administrative action under section 8402(c) to elect
FERS coverage ,in the same manner as employees coverd by CSRS.
Section 107. Ce'rtain CSRS service creditable to determine eligibility
for 1.1 percent accrual rate
Section 107 of the committee amendment amends section
302(a)(1)(D) of FERSA to provide that certain service counts for
purposes of determining whether an individual is entitled to a
higher accrual rate (1.1 percent instead of 1.0) under section
8415(g). Section 8415(g) provides that an employee retiring under
FERS who has attained age 62 and has completed 20 years of cred-
itable service is entitled to the higher accrual rate for annuity com-
putation purposes. "Service" within the meaning of section 8415(g)
means service creditable under FERS. In the case of an employee
who transfers to FERS from CSRS and who has completed at least
five years under CSRS, FERSA provides that CSRS service is not
creditable under FERS except for certain specified purposes (see,
FERSA, sections 302(a)(1)(A), 302(a)(1)(D)(I)-(V)). CSRS service of an
individual who transfers to FERS should count for determining eli-
gibility for the higher accrual rate. The amendment ensures that it
will.
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Section 108. Amendments relating to miscellaneous provisions of
law extending coverage or benefits under certain Federal pro-
grams to individuals not otherwise eligible
Over the years various statutes have accorded civil service retire-
ment, life, and health insurance coverage to individuals who are
employed by entities other than the Federal Government. Exam-
ples include the Legal Services Corporation, certain Indian Tribes,
the State Justice Institute, Presidential Transitions, and Congres-
sional Staff Fellows. In enacting FERSA, Congress sought to estab-
lish FERS as a system for Federal employees and, with two excep-
tions (both closed classes in which the number of employees cov-
ered will diminish over time), retirement credit is not allowed for
non-Federal service. Similarly, the group that consists of employees
under CSRS is now a closed class with newly hired Federal employ-
ees subject to FERS not CSRS. Hence, CSRS coverage for future
employees of non-Federal entities is inappropriate. Section 108(a)(1)
of the committee amendment amends section 8347 to provide that
such employees appointed, transferred, or otherwise commencing
that type of employment on or after October 1, 1988, will not be
entitled to coverage, service credit, or any other benefit under
CSRS. Sections 108(a)(2) and 108(a)(3) make similar amendments to
chapters 87 and 89 relating to coverage under the Federal Employ-
ee's Group Life Insurance program and the Federal Employees'
Health Benefits Plan, respectively.
Some employees of these non-Federal entities hired after Decem-
ber 31, 1983, are subject to both Social Security and CSRS. Section
108(b) amends sections 8334(k) and 8349 to include these individ-
uals under the CSRS offset arrangement provided under those sec-
tions. The amendments made by section 108(b) of the committee
amendment are retroactive to January 1, 1987, (the date the so-
called interim retirement system expired). Contributions made or
benefits paid after January 1, 1987, and before the date of enact-
ment of section 108(b) of the committee amendment may have to be
adjusted appropriately.
Section 109. Continued coverage under certain Federal employee ben-
efit programs for certain employees of Saint Elizabeths Hospital
The Saint Elizabeths Hospital and District of Columbia Mental
Health Services Act (Public Law 98-621) transferred control of
Saint Elizabeths Hospital from the Federal Government to the
government of the District of Columbia effective October 1, 1987.
Employees of Saint Elizabeths who prior to the transfer were Fed-
eral employees, were offered positions with the D.C. Government.
As Federal employees these individuals were covered by the Feder-
al Government's retirement, life insurance, and health insurance
programs. Many accepted appointments and were appointed as
D.C. employees on October 1, 1987. Congress intended that this cov-
erage continue.
FERSA prospectively terminated retirement, life insurance, and
health insurance coverage for D.C. employees first employed by the
D.C. government on or after October 1, 1987 (FERSA, section
207(f),(k), and (1)). D.C. employees first employed before that date
continue retirement, life insurance, and health insurance coverage.
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FERSA was not intended to result in a loss of coverage by any em-
ployee.
By coincidence, the Saint Elizabeths employees who were ap-
pointed to D.C. positions on October 1 are ineligible for coverage
since they were first employed by the D.C. government on Octo-
ber 1, Thus, they have lost Federal retirement, health insurance,
and life insurance coverage, a result never intended by Congress.
Section 109 of the committee amendment corrects this unintend-
ed situation. It amends section 207 of FERSA to provide that an
employee of Saint Elizabeths Hospital who is appointed to a posi-
tion in the government of the District of Columbia on October 1,
1987, pursuant to Public Law 98-621, shall be treated in the same
way as an individual first employed by the D.C. government before
October 1, 1987, for purposes of the Federal retirement, health in-
surance, and life insurance programs. Section 109(b) of the commit-
tee amendment provides the amendment to section 207 of FERSA
is effective retroactive to October 1, 1987. This ensures continuous
coverage for these employees and may require appropriate adjust-
ments in contributions and benefits required or paid in the interim
between September 30, 1987, and the date of enactment of the bill.
Section 110. Creditability under CSRS of certain service performed
under a personal service contract with the United States
Section 110 of the committee amendment addresses an unfair-
ness visited on a small group of employees due to an administra-
tive policy change by the Office of Personnel Management. Some
years ago it was common for the Department of State to employ
certain individuals under personal service contracts rather than by
appointments in the civil service. The vast majority of these indi-
viduals were so-called "Foreign Service National" (FSN) employees.
These employees typically are foreign nationals who provide cleri-
cal, administrative, technical, fiscal, and other support at foreign
service posts abroad. Subsequent to such contract service, many of
these individuals received appointments in the civil service. Prior
to 1980 OPM treated this personal service contract service as cred-
itable for retirement purposes under the Civil Service Retirement
System. OPM's Federal Personnel Manual instructions indicated
such service was creditable. Individuals with such service common-
ly understood it would be used in computing their eventual retire-
ment annuities.
Sometime in the early 1980's, perhaps as early as January 1980,
OPM began denying retirement credit for this service in some
cases. It appears that OPM policy at this time was administered in-
consistently; some individuals received retirement credit while
others did not. In any event, OPM's Federal Personnel Manual in-
structions were not revised to reflect this policy change until No-
vember 5, 1984. Thus, individuals who had performed this type of
service were not put on notice that it was no longer deemed credit-
able until sometime after that date.
OPM's position that contract service is not creditable has been
litigated and upheld in Federal court. While OPM's actions may be
appropriate as a matter of law, individuals who performed such
service prior to this policy change should be able to rely on pub-
lished OPM instructions and prior administrative actions granting
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credit for such service. OPM's actions denying this credit have
been extremely unfair, particularly in view of the apparent incon-
sistent administration of the policy in the early 1980's and the fact
that it took more than four years from the time OPM began deny-
ing retirement credit until it changed its publicly available instruc-
tions.
Section 110 of the committee amendment provides that the serv-
ice in question will be creditable subject to certain conditions. An
individual must be an employee (as defined by section 8331(1) or
8401(11)). An individual must make an appropriate deposit for such
service as required by section 8334(c). The individual must apply
for such credit within two years after the date of enactment of the
bill. And, the service must have been performed prior to Novem-
ber 5, 1985, a date one year after OPM published its changed policy
in the Federal Personnel Manual.
The service involved is service performed pursuant to a personal
service contract, i.e., a written agreement between the individual
involved and an entity of the United States Government. The serv-
ice should have been performed on a regular basis under the super-
vision of a Federal officer or employee. Except for the fact that
there were no appointments, the individuals performing this serv-
ice essentially were employees of the Government. Further, the
service will be creditable only if the head of the agency which was
party to the contract certifies that the agency had intended that
the individual employed pursuant to the contract was considered to
be an employee for purposes of receiving retirement credit under
subchapter III of chapter 83 of title 5. Also, the certification must
indicate the period of service which was performed and include
copies of appropriate records or other documentation to support the
determination as to the length of that service. A decision by the
agency head concerning whether or not to make a certification is
not subject to review.
Finally, the committee recognizes that some individuals who
have performed the contract service in question may have retired
from the service. Section 110(b) of the committee amendment pro-
vides that such individuals, upon application, may receive credit
for such service on a prospective basis.
Section 111. Exclusion of Foreign National employees under CSRS
from participating in the Thrift Savings Plan
Section 111(a) amends section 8351 to preclude Thrift Savings
Plan (TSP) participation by Foreign Service National (FSN) em-
ployees who are subject to CSRS. The employees involved are mem-
bers of the Foreign Service described in section 103(6) of the For-
eign Service Act of 1980, i.e., foreign nationals appointed pursuant
to that Act who provide clerical, administrative, technical, fiscal,
and other support at Foreign Service posts abroad.
The Department of State says TSP participation by FSNs would
be extremely difficult to administer since FSNs are typically paid
in local currencies which fluctuate as a result of floating exchange
rates. For example, a TSP contribution expressed as a percentage
of pay could result in differing actual dollar amounts being deposit-
ed in different pay periods due to fluctuating exchange rates. On
the other hand, a TSP contribution rate expressed as a U.S. dollar
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amount could result in fluctuations in an FSN's take home pay.
Further, TSP participation would be inconsistent with regulations
issued by foreign affairs agencies which prohibit payroll allotments
for purposes of purchasing U.S. dollar instruments such as U.S.
savings bonds. FSNs would not be able to take advantage of the
tax-deferred aspects of the TSP since their pay is not subject to
Federal income tax. Finally, some countries prohibit conversion of
local currencies for investment in U.S. dollars, and TSP participa-
tion would conflict with such prohibitions.
Section 111(b) of the committee amendment makes the amend-
ment prohibiting TSP participation retroactive to March 31, 1987,
the day before employees were eligible to participate in the TSP.
The Department says it advised posts abroad by world-wide cable
on September 9, 1986, that FSNs could not participate in the TSP.
It says it is therefor unlikely any FSN has contributed to the TSP.
Nevertheless, the committee amendment provides for a refund of
contributions plus earnings, if any, if such contributions have been
made.
Section 112. Foreign National employees appointed after December
31, 1987, excluded from CSRS
Section 112 of the committee amendment amends section 8331(1),
to exclude FSNs (described above) appointed after December 31,
1987, from the defmition of "employee" for purposes of subchapter
III of chapter 83 of title 5, relating to the Civil Service Retirement
System. This amendment is consistent with the overall policy of
closing CSRS to new entrants. As a practical matter, the Depart-
ment of State says it ceased making civil service appointments of
IFSNs in _1985. As a result those hired since then are not covered by
CSRS.
Section 113. Exclusion of Foreign National employees from FERS
Section 113 of the committee amendment excludes FSNs (de-
scribed above) from participating in FERS. Section 113(a) of the
committee amendment amends section 301(a) of .FERSA to prevent
FSNs participating in CSRS from electing to transfer to FERS. Sec-
tion 113(b) of the committee amendment amends section 8401(11) to
exclude FSNs from the definition of "employee" for purposes of
FERS. These amendments are retroactive and authorize refunds of
contributions and earnings, if any, as appropriate.
Section 408 of the Foreign Service Act of 1980 directs the Depart-
ment of State to base pay and benefits for FSNs on "prevailing
wage rates and compensation practices (including participation in
local Social Security plans) . . ." Participation in FERS would be in-
consistent with that direction. Further, most FSNs are not subject
to United States Social Security coverage, an important element of
the retirement package available to employees covered by FERS.
The exclusion of FSNs from CSRS and FERS resulting from the
amendments made by section 112 and 113 of the committee amend-
ment does not mean FSNs will have no retirement coverage. The
Department of State says many FSNs are covered by Social Securi-
ty programs of other countries, and the Department participates in
local retirement plans for the benefit of these employees.
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Section 114. Exclusion of certain one-time Government contributions
to the Thrift Savings Plan
Section 8432(d) provides that employee and employer contribu-
tions to the Thrift Savings Plan may not be made to the extent
those contributions, when added to other contributions for a given
year, exceed any limitation under section 415 of the Internal Reve-
nue Code. Employer contributions during 1987 include the so-called
automatic contribution (equal to 1 percent of an employee's pay),
matching contributions (up to four percent of an employee's pay),
and one-time "retroactive" contributions required by section
8432(c) (3). The "retroactive" contribution is equal to one percent of
an employee's total pay during 1984, 1985, and 1986. this retroac-
tive contribution was intended to partially compensate employees
for benefits which were forgone during the time Congress was de-
veloping FERS. Although the retroactive contribution was paid in
1987 it is actually compensation for prior years and should not be
considered 1987 contributions for purposes of applying the Internal
Revenue Code limitations. Section 114 of the committee amend-
ment amends section 8432(d) to provide that the retroactive contri-
butions will not be taken into account in applying the Internal
Revenue Code limitations.
_
Section 115. Government's 1 percent Thrift contribution not forfeit-
able for death in services.
For an employee covered by FERS, the employing agency is re-
quired to contribute an amount equal to one percent of the employ-
ee's pay to the TSP whether or not the employee chooses to partici-
pate in the Plan (section 8482(c) (1) (A)). This is the so-called "auto-
matic" contribution. Section 8432(g) provides the automatic contri-
bution is forfeited if the employee does not complete a required
period of service. The required period is two or three years, depend-
ing on the position held. Section 115 of the committee amendment
amends section 8432(g) to provide that the automatic contribution,
and any earnings thereon, are not forfeited in the case of an em-
ployee who dies prior to completing the required period of service.
Section 116. Clarification relating to amounts subject to legal proc-
ess for child support or alimony
Section 8437(e) (3) provides that Thrift Savings Plan accounts are
subject to legal process for the enforcement of legal obligations to
pay child support or alimony. Section 116 of the committee amend-
ment amends section 8487(e) (3) to provide that the automatic con-
tribution made by an employee's agency (discussed above) will not
be subject to legal process unless that contribution is nonforfeit-
able. It is inappropriate to subject to legal process funds which do
not yet belong to the employee for purposes of satisfying an obliga-
tion of the employee.
Section 117. Clarification relating to source of funding for adminis-
trative expenses of the Thrift Savings Plan
Administrative expenses of the TSP are paid from forfeitures,
and if forfeitures are insufficient, from earnings on moneys held by
the Plan. Earnings accrue on employee contributions and agency
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contributions. Section 8437, however, provides that administrative
expenses will be paid only from earnings on agency contributions.
This causes two problems. The first is a complicated and unneces-
sary accounting problem. the second is that only the earnings of
TSP participants covered by FERS (as opposed to those covered by
CSRS) will be tapped to pay administrative expenses. Section 117 of
the committee amendment amends section 8437 to provide that ad-
ministrative expenses shall be paid from earnings on all contribu-
tions, not just earnings on agency contributions.
Section 118. Exclusion from age-based reduction under chapter 83
for CSRS portion of annuity made subject to reduction under
chapter 84 following an election into FERS
Annuity reductions are required under both FERS and CSRS in
certain instances where individuals retire before the normal retire-
ment age. In the case of an individual who transfers from CSRS to
FERS, the reduction formula under FERS was intended to apply.
The applicable FERSA provisions, however, could be read to re-
quire a double reduction, i.e., the reduction under CSRS and under.
FERS. Section 118 of the committee amendment amends section
302 of FERSA to clarify that only the FERS reduction shall apply
in such cases.
Section 119. Interest of refunds of certain excess contributions by in-
dividuals making elections under title III of the Federal Em-
ployees' Retirement System Act of 1986
Section 119 of the committee amendment provides for interest on
refunds of excess CSRS contributions made by employees who elect
to transfer to FERS and by certain employees who elect to become
subject to the CSRS offset provisions. It also provides for monthly
acrual and annual compounding of interest.
Section 120. Effective date of final merit increase under the per-
formance management and recongnition system for employees of
Saint Elizabeths Hospital
The Performance Management and Recognition System (PMRS)
established by chapter 54, of title 5, provides for pay adjustments
and performance awards for supervisory and management employ-
ees in grades GM-13, GM-14, and GM-15. Pay adjustments and
performance awards are based on annual performance appraisals,
and by law (section 5404) adjustments are made in the first pay
period commencing on or after October 1. In effect, the System op-
erates on a fiscal year basis with pay increases earned during one
fiscal year being paid in the first period of the next fiscal year.
Supervisory and managerial employees of Saint Elizabeths, like
all other employees, were scheduled to receive these pay increases
in October, 1987. However, pursuant to the Saint Elizabeths Hospi-
tal and District of Columbia Mental Health Services Act (Public
Law 98-621), control of Saint Elizabeths was transferred to the D.C.
government and employment at Saint Elizabeths terminated on
September 30, shortly before merit increases for fiscal year 1987
were due to be paid.
Section 120 of the committee amendment advances the date of
merit increases for Saint Elizabeths employees to the first pay
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period commencing on or after September 1, 1987, to ensure that
increases earned will in fact be paid.
Section 121. Deadline for agency contributions to the Thrift Savings
Plan
Section 8432(c)(1)(A) and 8432(c)(2)(A) provide that agency Thrift
Savings Plan contributions shall be made at the end of the pay
period involved. Most Federal employees are paid on the basis of a
biweekly pay period. The actual pay date, however, is usually sev-
eral days following the close of the pay period. This allows for
records processing and the issuance of pay checks. Thus, existing
law requires agencies to make contributions for a pay period before
an empoyee receives a pay check for that period (and before an em-
ployee's TSP contribution for that pay period is deposited in the
Thrift Savings Fund).
Section 121 of the committee amendment amends sections
8432(c)(1)(A) and 8432(c)(2)(A) to provide that agency contributions
shall be made such time as the Executive Director may prescribe,
but not later than 12 days after the end of the appropriate pay
period. The committee understands that no pay date occurs later
than 12 days after the end of the pay period. The committee ex-
pects the Executive Director's regulations to require that agency
contributions to the TSP will be made no later than the day on
which the employee involved is actually paid.
Section 122. Amendments relating to disability annuities
Section 8452 provides rules for the computation of disability an-
nuities under FERS. Generally, a disability annuitant is entitled to
an annuity equal to 60 percent of average pay for the first pay for
the first year of disability and 40 percent of average pay thereafter.
If the annuitant is also entitled to Social Security disability bene-
fits the FERS disability annuity is reduced to reflect the receipt of
those benefits. Section 8452 requires a recomputation of the disabil-
ity annuity at age 62. The recomputation was intended to take into
account the fact that Social Security old age benefits are generally
payable at that age.
The Office of Personnel Management has pointed out certain
problems with rules established under section 8452. OPM's descrip-
tion of these problems follows:
Problems Related to Disability Provisions of the Federal
Employees' Retirement System
1. The "assumed" Social Security disability benefit
Section 8452(a)(2) of title 5, United States Code, requires
a FERS disability annuity to be offset by a percentage of
an "assumed" Social Security disability benefit if the an-
nuitant is also entitled to a disability insurance benefit
(DIB) under Social Security. The "assumed" benefit is the
DIB the individual would be receiving if his or her entitle-
ment to that benefit had begun when the FERS disability
annunity began. The "assumed" DIB includes cost-of-living
adjustments (COLA's) payable under FERS on and after
the commencing date of the FERS annuity.
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The "assumed" DIB is used in the annuity redetermina-
tion at age 62 even if the annuitant is not entitled to
Social Security disability benefits. At age 62, the nondisa-
bility annuity based on the individual's service projected to
age 62 is compared to the disability annuity with a reduc-
tion based on the "assumed" DIB. The latter reduction ap-
plies even if the individual has no entitlement to Social Se-
curity benefits. Since the lesser of the two benefits is pay-
able after age 62, an individual who is not entitled to a
DIB will experience a substantial annuity reduction at age
62. This reduction will constitute a significant reduction in
total income for individuals who also are not entitled to a
retirement insurance benefit from Social Security at age
62 (or who are entitled only to a very small retirement
benefit) because they lack sufficient Social Security-cov-
ered employment.
Example: A CSRS-covered employee transfer to FERS at
age 35 with 12 years of service. Two years later he be-
comes disabled. Although totally disabled for any gainful
employment, he lacks sufficient quarters of coverage for
entitlement to Social Security Benefits. His FERS annuity
is 60 percent of average salary for the first 12 months, and
40 percent of average salary thereafter. At age 62, a non-
disability benefit is computed for him based on 39 years of
service (including the period of disability) and an updated
average salary. This benefit will be compared to his dis-
ability annuity (40 percent of average pay) minus 60 per-
cent of his "assumed" Social Security DIB. The lesser of
these two amounts will be payable from age 62 on. If the
individual is receiving a FERS disability annuity of $1200
a month on the eve of his sixty-second birthday and the
"assumed" DIB is $800 a month, the FERS annuity will be
reduced by $480 a month. Beginning at age 62, the annui-
tant will experience a 40 percent loss in income.
2. Application of COLA's during first year of entitlement
A FERS disability annuity is not adjusted by any COLA
during the first 12 months, Nevertheless, the "assumed"
Social Security DIB by which the annuity is reduced does
include FERS COLA's that take effect after the annuity
begins. This results in a drop in the amount of the annuity
when a COLA takes affect within the first year of disabil-
ity.
Example: An individual begins receiving a FERS disabil-
ity annuity of $500 a month on April 1. On September 1,
she also begins receiving a Social Security disability bene-
fit. The FERS annuity, beginning September 1, is reduced
by an "assumed" DIB of $200 a month. This means the net
monthly annuity is $300. On December 1, a 3-percent
COLA takes effect under FERS but is not payable to this
disability annuitant. Nevertheless, the "assumed" DIB, by
definition, includes this COLA. Therefore, the "assumed"
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DIB would increase from $200 to $206 beginning on De-
cember 1. This would reduce the FERS annuity from $300
to $294 a month.
4. *
*
3. Application of COLA's to net annuity rather than the
unreduced annuity
Section 8462(b) of title 5, United States Code, provides
that COLA's apply to "each annuity payable from the
Fund under this chapter." In the case of a disability retir-
ee who is also receiving a Social Security DIB, the annuity
payable would be the amount after the reduction based on
receipt of the DIB is made. However, since the amount of
the reduction (the "assumed" DIB) includes FERS COLA's,
this means that payment of COLA's under section 8462(b)
will result in a decline in the amount of the net annuity.
Example: A disability retiree is entitled to $500 a month
minus $200 (60 percent of his "assumed" DIB), resulting in
a monthly annuity of $300. When a 3-percent COLA is pay-
able, the amount of the offset will increase to $206. The
net annuity will also increase, but only to $302 ($500 ?
$206 = $294 x 1.03 = $302.82). The next time a 3-percent
COLA is payable, 60 percent of the "assumed" DIB will
become $212. After subtracting this amount from $500 and
increasing the remainder ($288) by 3 percent, the net an-
nuity will fall to $296.
4. Application of COLA's when entitlement shifts between
the "earned" annuity and the special disability compu-
tation
Section 8452(d) specifies that a disability annuity (after
any offset due to receipt of a DIB is applied) must be at
least as great as the individual's "earned" annuity based
on his or her creditable service and average salary, under
section 8415. There is no provision for applying COLA's to
this amount except when the "earned" amount is actually
payable. In the absence of such a provision, the possibility
that annuities will shift back and forth between the
"earned" rate and the disability computation may produce
irrational results.
Example A: After the first year of disability, a retiree re-
ceives his "earned" benefit of $750 a month because this
produces a higher benefit than the disability computation.
(Forty percent of his average salary comes to about $1,200
a month and this is reduced by $500, which is 60 percent
of his "assumed" DIB, for a net annuity of $700 a month.
Since this amount is less than his "earned" annuity, the
latter is payable.)
If this retiree's condition improves somewhat and, five
year later, he loses entitlement to a Social Security DIB,
40 percent of average salary becomes payable because it is
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greater than the "earned" benefit. Since the law does not
provide for applying COLA's to anything other than the
payable amount, it appears that the annuity after the indi-
vidual's Social Security entitlement terminates would
become $1,200 a month (40 percent of average salary), even
though the retiree would be receiving $1,390 a month at
that point if the 40-percent disability computation had
been applicable all along (assuming 3 percent annual
COLA's during the five years he was entitled to Social Se-
curity benefits).
Assume that this retiree's condition again worsens so
that he regains entitlement to a Social Security DIB two
years later and that 3 percent COLA's have been effective
in each of those two years. Assume also that problem #3
described above does not exist. The statute does not make
clear whether the monthly offset of $611 (60 percent of the
"assumed" DIB, including seven 3-percent COLA's) is to be
subtracted from $1,200 (40 percent of average pay with no
COLA's), $1,273 (the 40-percent rate, including two COLA's
actually payable before the DIB was resumed), or $1,473
(40 percent of average pay, updated by all COLA's since
the annuity commencing date). The latter is the only logi-
cal choice. However, it appears that the remainder ($1,473
minus $611 is $862) would be compared to the original
"earned" annuity of $750, even though that "earned" ben-
efit would actually be worth $919 if it had continued to be
payable.
The chart below summarizes this example.
Event
"Earned" annuity is paid
3-percent COLA
3-percent COLA
3-percent COLA
3-percent COLA
3-percent COLA
Loss of Social Security bene-
fit
3-percent COLA
3-percent COLA
Social Security resumes
Monthly rate payable
$750
772
795
818
842
867
1,200? 1,390?
(40 percent of average salary)
1,236? 1,431?
1,273? 1,473?
greater of:
589? (1200-611) 750?
662? (1273-611) or 919?
862? (1473-611)
Example B: A disability retiree is age 50 with 27 years of
service when the annuity begins. She is entitled to the
"earned" rate ($900 a month) because this amount is great-
er than the disability computation ($850), which includes
an offset based on receipt of Social Security benefits. At
age 62, the $850, increased by 12 years of COLA's, will be
compared to the nondisability benefit that includes the
period of disability and an average salary adjusted by
FERS COLA's up to the annuitant's sixty-second birthday.
The disability computation ($850 adjusted by annual
H.REPT. 100-374 - 87 - 3
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COLA's of 3 percent over 12 years would be $1,207) will be
the smaller of these two benefits and, therefore, will be
payable after age 62, unless the "earned" benefit is great-
er. It is unclear whether, for purposes of this comparison,
the "earned" benefit would be the original $900 rate with-
out COLA's, or the "earned" rate the individual is actually
receiving on the eve or the redetermination (12 COLA's of
3 percent would bring this amount to $1,279 a month).
Since the statute does not provide for adding COLA's to
the minimum "earned" annuity, it appears that COLA's
would have to be removed from the "earned" rate at age
62. This individual would then have her monthly annuity
reduced from the $1,279 "earned" amount to $1,207 (the
reduced disability annuity).
Section 122 of the committee amendment addresses the problems
described by OPM. Section 122(a) of the committee amendment
amends section 8452(a)(2)(B)(i) to provide that an individual's actual
Social Security benefit, not a hypothetical benefit, is used to deter-
mine the appropriate annuity offset. The offset amount is deter-
mined by adjusting the actual Social Security benefit by COLAs
which take affect under section 8462(b). Only COLAs taking affect
after the first year of disability are taken into account.
Section 122(b) of the committee amendment amends section
8452(b) to revise the method for redetermining a disability annu-
itant's annuity at age 62. Under amended section 8452(b), the rede-
termined annuity will be equal, generally, to the amount of annu-
ity the annuitant would have received had the annuitant been able
to work until age 62 and retire with an immediate annuity comput-
ed under the provisions of section 8415.
Section 122(c)(1) of the committee amendment amends section
8452(d) to provide that in determining the guaranteed minimum
annuity, COLAs under section 8462 shall be taken into account in
computing an annuity under section 8415. Section 122(c)(2) of the
committee amendment amends section 8452(a)(1)(B) to ensure that
COLAs are applied to the unreduced disability annuity rather than
the net, or offset, annuity.
Section 123. Clarifying amendments relating to funding
Section 123(a) of the committee amendment amends the defini-
tion of "Fund balance" (section 8331(18)) to clarify that in deter-
mining the balance of the Civil Service Retirement and Disability
Fund attributable to CSRS, amounts in the Fund attributable to
FERS or contributions made under the Federal Employees' Retire-
ment Contribution Temporary Adjustment Act of 1983 shall not be
taken into account. This clarification ensures the continuation of
payments from the Treasury on the interest of the CSRS unfunded
liability during the life of CSRS. If FERS assets were included in
the computation of CSRS Fund balance, Treasury payments and
income to the fund would be improperly reduced. The revised defi-
nition of "Fund balance" does not affect the operation of the Fund
itself. All assets in the Fund, whether attributable to CSRS or
FERS, remain available to pay benefits under both systems.
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Section 123(b) of the committee amendment amends section
8423(b)(1) to provide that in computing any supplemental liability
of the United States Postal Service under FERS, benefits, deduc-
tions, or other amounts which relate to service performed under
CSRS may not be taken into account.
Section 124. Concurrent entitlement to benefits under chapters 81
and 84 of title 5, United States Code
Section 124(a)(1)(A) of the committee amendment amends section
8337 to conform the provisions thereof to the provisions of new sec-
tion 8464a.
Section 124(a)(1)(B) adds a new section 8464a to subchapter VI of
chapter 84. Subchapter VI contains the general and administrative
provisions of FERS. New section 8464a replaces existing section
8464 which is found in subchapter V of chapter 84. Subchapter V
contains the disability provisions of FERS. Both new section 8464a
and existing section 8456 concern the relationship between annu-
ities and workers' compensation benefits and are derived from ex-
isting sections 8337 (0 and (g) which relate to the Civil Service Re-
tirement System. The committee amendment moves the FERS pro-
vision from subchapter V to subchapter VI because it contains gen-
eral provisions concerning basic and survivor annuities as well as
disability annuities.
New section 8464a(a) clarifies that an individual is not entitled to
receive both a workers' compensation benefit under chapter 81 and
any concurrent FERS annuity based on that individual's own serv-
ice. It also provides that a survivor may not receive a FERS survi-
vor annuity and a benefit under chapter 81 based on the same indi-
vidual's death.
New Section 8464a(b) addresses situations involving commuted
workers' compensation benefits. Under section 8135 an employee or
survivor may under certain circumstances receive a commuted
lump-sum payment of compensation benefits. New section 8464a(b)
does not contain provisions in existing section 8456(b) which stipu-
late that an individual may receive a lump-sum workers' compen-
sation benefit and a FERS annuity, so long as the latter is not
based on the same disability as the compensation benefit. It is un-
reasonable for the Government to pay an individual a FERS bene-
fit and a commuted lump-sum workers' compensation benefit cover-
ing the same period of time, even if the payments are triggered by
different events.
New section 8464a(b), preserves the general rule that an em-
ployee or survivor who qualifies for both an annuity and a lump-sum
workers' compensation benefit based on the employee's own serv-
ice, or on the death of the same person, may receive either benefit,
but cannot receive both for the same period of time. In the case of
an employee or survivor who receives a commuted lump-sum pay-
ment of workers' compensation, an annuity based on the service of
the same employee or on the death of the same person cannot be
paid during the period of time covered by the commuted benefit.
The legislative history of the 1944 provision on which both sec-
tion 8337(g) and section 8456(b) are based reveals that the law was
intended to address the specific case of an individual who received
a commuted lump-sum payment of workers' compensation, then re-
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turned to work in the Federal Government and was told that no
future annuity benefit would be payable because of the prior re-
ceipt of the commuted benefit. The Office of Personnel Manage-
ment says the law was intended to allow the individual to earn and
receive a benefit based on the lump-sum payment. The Office fur-
ther says that situation has never happened. (The individual for
whom the legislation was enacted died before retirement from later
service and did not have a survivor entitled to annuity.) Even
though such a situation is possible, the service on which a subse-
quently earned benefit would be based would include service per-
formed before payment of the lump-sum commuted compensation
benefit. Therefore, the general rule barring concurrent receipt
should still be applied.
Section 124(c) of the committee amendment provides that the
amendments made by section 124(a)(1)(B) shall be effective, retroac-
tively, on January 1, 1987, the date FERS commenced. Thus, cer-
tain benefits subject to the provisions of new section 8464a may
have to be recomputed and adjustments made.
Section 125. Eligibility of certain individuals to participate in the
Thrift Savings Plan
Section 125 of the committee amendment clarifies the original
intent of Congress that certain Federal employees will be eligible
to participate in the Thrift Savings Plan and that employee and
employer contributions to the TSP on behalf of these employees
will be made on a tax-deferred basis. The employees involved are
employees on leave without pay to serve as officers of employee or-
ganizations, employees on leave without pay serving on Intergov-
ernmental Personnel Act (IPA) mobility assignments, and employ-
ees engaged in cooperative extension service work. Although these
individuals are Federal employees and, by law, are entitled to par-
ticipate in CSRS or FERS, a question has arisen as to whether they
may participate in the TSP on a tax-deferred basis. The question
arises because the employees involved are receiving no salary from
the Federal Government. Section 125 of the committee amendment
ensures that they may so participate.
Section 125(a) of the committee amendment defines "Executive
Director" and "Thrift Savings Plan". Section 125(b) of the commit-
tee amendment requires the Executive Director to issue regulations
relating to TSP participation by the employees involved. The regu-
lations must provide that in computing the percentage of basic pay
to determine permissible TSP contributions, the rate of pay used in
computing the employee's CSRS or FERS contribution shall be
used. Further, the regulations must provide that the employer that
pays the employee's salary may make employer TSP contributions
permitted or required under section 8432(c). These contributions in-
clude the "automatic" one percent contribution (section
8432(c)(1)(A), employer matching contributions (section 8432(c)(2)),
and "retroactive" contributions (sections 8432(c)(1)(B) and (C) and
8432(c)(3)). The decision whether to make employer contributions is
within the sole discretion of the employer. However, all TSP eligi-
ble employees of the employer must be treated the same with re-
spect to employer contributions. For example, if matching contribu-
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tions are made for one employee, they must be made for all TSP
eligible employees of the employer.
Section 125(c) of the committee amendment defines the class of
employees subject to the provisions of section 125. The class con-
sists of individuals on approved leave without pay to serve as full-
time officers or employees of employee organizations, individuals
assigned from a Federal agency to a State or local government
under subchapter VI of chapter 33 of title 5 (IPA mobility assign-
ments), and individuals appointed or otherwise assigned to one of
the cooperative extension services (as defined by section 1404(5) of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977).
Section 125(d) of the committee amendment provides that the
regulations prescribed by the Executive Director shall become ef-
fective in accordance with their own provisions. An exception is
made with respect to employees performing cooperative extension
work. The regulations are made effective with respect to them on
January 1, 1987. This retroactive application is necessary because
these employees have been participating in the TSP since its incep-
tion. Past employee or employer (automatic, retroactive, and
matching) contributions will be deemed to have been made on a
tax-deferred basis with respect to these cooperative extension serv-
ice workers.
Section 126. Special pay of Veterans' Administration physicians in-
cluded in average salary under FERS
Section 126 amends section 4118(f) of title 38, United States Code.
That section provides that special pay for physicians and dentists
in the Veterans' Administration's Department of Medicine and
Surgery may, under certain conditions, be included in the computa-
tion of average salary for civil service retirement purposes. The
amendment ensures that special pay will be treated in the same
manner under FERS. Special pay paid after September 30, 1980,
will be included in determining average salary for purposes of dis-
ability annuities, benefits for widows and widowers of deceased em-
ployees, children's annuities, and, if the retiree performed at least
15 years of service in the Department of Medicine and Surgery,
any other annuity under FERS beginning after September 30, 1990.
For FERS annuities commencing before October 1, 1990, other than
those specified in section 4118(f)(2)(A), one-half of special pay will
be included in the computation of average pay.
Section 127. Application deadline for certain former spouses
Section 127 of the committee amendment amends section
4(b)(1)(B) of the Civil Service Retirement Spouse Equity Act of 1944
to extend for two years (from May 7, 1987, to May 7, 1989) the ap-
plication deadline by which certain former spouses must apply for
survivor benefits under that Act.
TITLE II
Title II makes numerous amendments relating to Foreign Service
retirement.
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Part A
Part A contains general provisions affecting Foreign Service re-
tirement.
Section 201. References
Section 201 of the committee amendment provides that, except as
otherwise provided, references in title II to sections or other provi-
sions of law shall be considered references to sections or provisions
of the Foreign Service Act of 1980 (22 U.S.C. 4041 et. seq.). Similar-
ly, in the explanation of title II, references to sections or provisions
of law are references to that Act.
Section 202. Former spouses married between 9 months and 10 years
Section 202(a) of the committee amendment amends chapter 8 of
the Foreign Service Act of 1980 by adding a new section 830, enti-
tled "Qualified Former Wives and Husbands." Current law entitles
a Foreign Service spouse married at least 10 years to a pro-rata
share of retirement and survivor benefits. However, neither retire-
ment or survivor benefits are payable to a spouse if the parties are
divorced before completing 10 years of marriage.
New section 830 makes certain provisions of law which govern
the treatment of divorced spouses of civil service employees appli-
cable to members of the Foreign Service and their spouses in cases
where a marriage lasts less than ten years. The provisions of law
made applicable are the following sections of title 5, United States
Code:
?section 8339(j), concerning election and waiver of survivor ben-
efits for former spouses;
?section 8341(e), concerning survivor benefits payable to the sur-
viving children of an employee; and
?section 8341(h), concerning survivor benefits payable to a di-
vorced spouse.
Also made applicable is section 4 (except subsection (b)) of the
Civil Service Retirement Spouse Equity Act of 1984 (P.L. 98-615).
Among the applicable provisions of section 4 are those relating to a
"second chance" election of survivor benefits for a post-retirement
marriage and health insurance benefits for former spouses. Subsec-
tion (b) of section 4 authorized limited survivor benefits for certain
spouses of civil service employees divorced before the effective date
of Public Law 98-615, and is explicitly made inapplicable.
Section 830(b) essentially restates existing section 8345(j) of title
5, United States Code, which authorizes courts to award a share of
annuity benefits to a former spouse. This section applies in the
case of marriages of less than 10 years.
Section 830(c) defines the term "qualified former wife or hus-
band." It is a two-part definition: (1) the Foreign Service member
must have performed at least 18 months of creditable civilian serv-
ice under chapter 8 of the Foreign Service Act, and (2) the former
wife or husband must have been married to the Foreign Service
member of more than 9 months but not more than 10 years. For
marriages lasting 10 years or more, the existing pro-rata former
spouse provisions of chapter 8 continue to apply.
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Section 830(d) requires the Secretary of State to submit the regu-
lations proposed to implement section 830 to the Committee on
Post Office and Civil Service and the Committee on Foreign Affairs
of the House of Representatives and the Committee on Foreign Re-
lations of the Senate. These regulations cannot take effect until 60
days after they are submitted to these committees.
Subsection (b) amends the table of contents in section 2 of the
Foreign Service Act of 1980 to incorporate the new section 830.
Section 203. Election to provide survivor annuity for certain spouses
acquired before the effective date of the Foreign Service Act of
1980
Section 203 permits a Foreign Service member who married after
retirement but before the effective date of the Foreign Service Act
of 1980 to elect to provide survivor benefits for his or her spouse.
The retiree would have to deposit in the Foreign Service Retire-
ment and Disability Fund an amount equal to the amount that
would have been withheld had the survivor benefit reduction been
in effect since the date of retirement, plus 6 percent interest. The
deposit may be made by the surviving spouse of the Foreign Serv-
ice retiree. This "second chance" election may only be made within
one year after the effective date of this Act.
Section 204. Benefits for certain former spouses of members of the
Foreign Service
Section 204 amends chapter 8 of the Foreign Service Act of 1980
(P.L. 95-465) to provide retirement, survivor, and health insurance
benefits for Foreign Service former spouses who were divorced
before the effective date of the 1980 Act. The language in section
204 is identical to that in section 152 of H.R. 1777, the Foreign Re-
lations Authorization Act for Fiscal Years 1988 and 1989 which
passed the House of Representatives on June 23, 1987.
According to the report of the Committee on Foreign Affairs, the
amendment parallels certain provisions of the 1987 and 1988 Intel-
ligence Authorization Acts which entitle a former spouse to a pro-
rata share of up to 50 percent of the amount of a participant's re-
tirement benefit if certain conditions are met (see H. Rept. No.
100-34, 100th Cong., 1st sess. (1987)). The former spouse may also
be entitled to a survivor annuity of up to 55 percent of the amount
of the participant's annuity or what the annuity would have been
if the participant had not withdrawn a lump-sum of previously
made retirement contributions. The survivor benefits available
under this section to any former spouse for whom an election has
been made under section 2109 or 806(f) of the Foreign Service Act
will be reduced by the amount of benefits provided by such elec-
tion. Nothing in new section 831 (retirement benefits) or new sec-
tion 832 (survivor benefits) shall be construed to affect, in any way,
the annuity or entitlement to an annuity of a participant or former
participant under the Foreign Service Retirement System. Finally,
the former spouse may participate in the Federal Employees'
Health Benefits Program if the spouse was participating in that
Program prior to the divorce and arranges to pay an amount equal
to the employee and agency share of health insurance premiums.
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PART B
Part B contains amendments to the Foreign Service Retirement
System.
Section 211. Definition of surviving spouse
Section 211 of the committee amendment amends the definition
of "surviving spouse" in paragraph (13) of section 804 by reducing
from one year to nine months the minimum time that the spouse
had to be married to the Foreign Service member or retiree in
order to qualify for survivor benefits. To conform this definition to
that in the civil service retirement law, language is added to para-
graph (13) providing that the 9-month marriage requirement will
be deemed met even though the member or retiree dies during that
period if (1) the death was accidental, or (2) the surviving spouse
was previously married to the member or retiree and the aggregate
time married is at least 9 months.
Section 212. Contributions for prior service
Section 212 of the committee amendment concerns contributions
to the Foreign Service Retirement and Disability Fund. It amends
section 805(d)(1) to provide that when an employee has received a
refund of contributions, any redeposit of that refund must equal
the amount of the refund plus interest.
Section 213. Computation of annuities
Section 213 of the committee amendment amends section 806,
pertaining to the computation of annuities. Section 213(a) of the
committee amendment amends section 806(b)(1)(C) to extend from
12 months to 24 months the time period following a divorce during
which a Foreign Service participant and his or her former spouse
may jointly elect to waive survivor benefits.
Subsection (b) of section 213 of the committee amendment
..amends section 806(i)(2) to clarify that recalculation of survivor an-
nuities based on recall service affects only participants in the For-
eign Service Retirement System. Credit for recall service is han-
dled differently for participants in the new Foreign Service Pension
System.
Section 214. Survivor benefits for children
Section 214 of the committee amendment concerns survivor bene-
fits for children. Under both the Foreign Service and Civil Service
retirement systems, children's survivor benefits are paid at one
rate if there is a surviving spouse and at a higher rate if not.
Under civil service law, the lower rate is paid if there is a surviv-
ing former spouse who is the parent of the surviving child. Subsec-
tion (a) of section 214 of the committee amendment amends section
806(c) and 806(d) to clarify that the lower rate is paid if there is a
surviving former spouse who is the parent of the surviving child.
Section 214(b) of the committee amendment amends section 809(c)
and 809(d) to provide that the lower rate for death in service bene-
fits is paid if there is a surviving former spouse who is the parent
of a surviving child.
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Section 215. Minimum age requirement
Section 215 of the committee amendment pertains to disability
retirement and death in service. Subsection (a) of section 215 of the
committee amendment amends sections 808(a) and 808(b) to provide
that disability retirement benefits will be calculated as if the em-
ployee had been able to serve until age 60, rather than 65. This re-
duction will conform the Foreign Service retirement provisions
those relating to civil service retirement. Similarly, section 215(b)
of the committee amendment amends section 809(e) so that death
in service benefits will be calculated as if the employee had served
until age 60, rather than age 65.
Section 216. Voluntary retirement
Section 216 of the section committee amendment amends section
811, "Voluntary Retirement," to require at least five years of serv-
ice as a participant in the Foreign Service Retirement System in
order to retire with benefits calculated under that system. A
former civil service employee who took a Foreign Service position
and wished to retire before completing five years under the For-
eign Service Retirement System could no longer retire under For-
eign Service provisions, but rather could retire under the Civil
Service Retirement System if all contributions to the Foreign Serv-
ice Retirement and Disability Fund were returned and deposited in
the Civil Service Retirement and Disability Fund.
Section 217. Former spouses
Section 217 of the committee amendment makes three amend-
ments to the former spouse provisions of the Foreign Service Act of
1980. Section 217(a) of the committee amendment amends section
814(a)(1) to require that an individual be married to a Foreign Serv-
ice participant for at least five years while the employee was in the
Foreign Service in order to qualify as a "former spouse." The defi-
nition of "former spouse" which requires a minimum of 10 years of
marriage during years of creditable service remains unchanged.
The new requirement is prospective and will not apply to anyone
who, on the date of enactment of this Act, is the spouse of a partici-
pant or a former spouse entitled to an annuity under section 814.
This amendment will cover participants in the Foreign Service Re-
tirement System who married after the date of enactment, and in-
dividuals vested in the Civil Service Retirement System who trans-
fer into the FSRS.
Subsection (b) of section 217 of the committee amendment
amends section 814(a)(4) by extending from 12 to 24 months the
time period following a divorce during which a court order relating
to the participant's annuity may be issued.
Subsection (c) of section 217 of the committee amendment repeals
sections 806(1) and 814(d). These sections pertain to a guaranteed
benefit equal to a minimum Social Security benefit. The minimum
Social Security benefit no longer exists, and a similar provision in
civil service retirement law has been repealed.
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Section 218. Lump-sum payments
Section 218 of the committee amendment concerns lump-sum
payments and amends section 815(a) by setting out the procedures
under which an employee may claim a refund of lump-sum credit.
The procedures track the requirements under the Civil Service Re-
tirement System, and thus the employee is required to notify a
spouse or former spouse of the employee's application for the lump-
sum credit. However, subsection (a)(2) differs from the analogous
civil service retirement provision in that it retains language in ex-
isting section 815(a) to insure that the lump-sum credit will be paid
to the employee and to any former spouse of the employee under
the terms of section 815(i). Under the Foreign Service Act of 1980,
if the parties have been married for at least 10 years, the former
spouse is entitled to a pro-rata share of any lump-sum credit unless
a contrary order has been issued.
Section 219. Cost-of-living adjustments
Section 219 of the committee amendment amends section 826(c)
to codify the current treatment of cost-of-living adjustments. The
conditions for COLAs under the Civil Service Retirement System
were established by Public Law 97-35 and by executive order made
applicable to the Foreign Service Retirement System. Section 219
of the committee amendment codifies the executive order provi-
sions.
Part C
Part C makes amendments to the Foreign Service Pension
System.
Section 241. Definition of lump-sum credit
Section 241 of the committee amendment amends section 852 by
adding a new definition of "lump-sum credit" to conform to the def-
inition in section 8401(19) of the Federal Employees' Retirement
System Act of 1986 (P.L. 99-335), as amended by the Federal Em-
ployees' Retirement System Technical Corrections Act of 1986 (P.L.
99-556). Lump-sum refunds to FSPS participants are based on con-
tributions under FSPS to the Foreign Service Retirement Fund.
Section 242. Contribution for creditable service of employee of a
Member or office of the Congress
Section 242 of the committee amendment amends section 854(e),
concerning creditable service while a Foreign Service employee
works for a Member or office of the Congress. The amendment re-
quires that a full normal cost contribution be made to the Foreign
Service Retirement and Disability Fund for a participant who
serves in the office of a Member or office of the Congress while on
approved leave without pay from the Foreign Service.
Section 243. Conforming amendment, health care
Section 243 of the committee amendment makes a conforming
amendment to section 904(b) to provide that any health care pro-
gram established for participants in the Foreign Service Retire-
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ment System must also be available to participants in the Foreign
Service Pension System.
Part D
Part D establishes effective dates for the amendments made by
this Act.
Section 261. Effective date
Subsection (a) of section 261 of the committee amendment states
that all provisions except sections 202 and 217 of the committee
amendment shall take effect 90 days after the date of enactment.
Subsection (b) of section 261 of the committee amendment makes
two exceptions to the general effective date described above. Sec-
tion 202 of the committee amendment, concerning qualified former
wives or husbands, shall apply to an individual who, on or after the
date of enactment, is married to a participant or former partici-
pant as defined in chapter 8 of the Foreign Service Act of 1980.
Section 217 of the committee amendment, requiring a former
spouse to have been married to a participant for five years while
the participant was in the Foreign Service, applies only to spouses
or former spouses of participants in the Foreign Service Retire-
ment System. It does not apply to any individual who, on the date
of enactment of this Act, is the spouse of a participant or is a
former spouse entitled to an annuity under section 814 of the For-
eign Service Act of 1980.
COST
The cost estimate prepared by the Congressional Budget Office
pursuant to sections 308(a) and 403 of the Congressional Budget
Act of 1974 is set forth below:
Hon. WILLIAM D. FORD,
Chairman, Committee on Post Office and Civil Service, House of
Representatives, Washington, DC.
DEAR MR. CHAIRMAN: As you requested, the Congressional
Budget Office has reviewed H.R. 3395, as ordered reported on Octo-
ber 6, 1987, a bill that, among other purposes, would make techni-
cal corrections to the Civil Service Retirement System, the Federal
Employees' Retirement System, and the Foreign Service Retire-
ment System. Several sections of the bill would codify existing
practices, currently addressed either by regulation or by Executive
Order.
The bill would liberalize disability and retirement benefits for
certain workers and their surviving spouses as well as establish
some new benefit provisions?mainly for spouses or former spouses
of Foreign Service Officers. As a result, annual outlays would in-
crease eventually but not appreciably within the fiscal year 1988-
1992 period used for CBO cost estimates.
The attached staff analysis describes the potential budgetary ef-
fects for those sections of H.R. 3395 that have a significant impact
U.S. CONGRESS,
CONGRESSIONAL BUDGET OFFICE,
Washington, DC, October 15, 1987.
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as well as those sections where sufficient data are availabl, to
make an estimate. As always, we are available to provide you and
your staff with additional information or to discuss the basis for
our estimate.
With best wishes,
Sincerely,
Attachment.
EDWARD M. GRAMLICH,
Acting Director.
CBO STAFF ANALYSIS FOR H.R. 3395
Section 103 would classify about 300 current federal em-
ployees as law enforcement officers for retirement pur-
poses. They are employed mainly as U.S. Park Service
Police or as uniformed officers of the U.S. Secret Service.
As a result, mandatory payroll withholdings for these em-
ployees would increase by 0.5 percent of pay. It is estimat-
ed that the yearly revenue generated during the next five
years from the additional workers' retirement contribu-
tions would have no significant budgetary effect.
Section 107 would ensure that Civil Service Retirement
System (CSRS) employment counts toward satisfying the
20-years-of-service requirement under the Federal Employ-
ees' Retirement System (FERS). As a result, the FERS pen-
sion benefit would increase?for nearly all employees who
transfer to FERS with more than five years of CSRS serv-
ice and who then retire after age 62?from 1.0 percent of
average pay per year of FERS employment to 1.1 percent.
At the time CBO prepared its analysis of the FERS Act of
1986, however, it was assumed an individual who switched
to FERS was entitled to credit CSRS service. Thus, as
measured against either the CBO baseline for February or
for August 1987, this section has no budgetary conse-
quence.
Section 123 would prevent the consideration of FERS
contributions, and associated investment earnings, when
calculating the unfunded liability of the CSRS. Without
this change, the CSRS soon would appear to be fully
funded and thus the annual in-lieu-of-interest payments
made to the CSRS Trust Fund by the U.S. Treasury would
stop. This is strictly an accounting change; it would not
impact on the timing or the size of annual benefit pay-
ments.
This section also would shift, from the U.S. Postal Service (USPS)
to the U.S. Treasury, the responsibility for financing certain un-
funded liabilities for postal employees who switch from CSRS to
FERS. Failure to enact this change could have a dramatic effect on
the USPS operating budget in fiscal year 1988, depending on how
many postal employees switch to FERS and on how the Office of
Personnel Management calculates the resulting unfunded liability.
As the USPS is now an on-budget entity, however, unfunded liabil-
ity payments made by the USPS or the Treasury would represent
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an intrabudgetary transfer of funds and would not impact direct
spending in 1988.
Section 125 would allow some 13,000 individuals, covered by the
CSRS and FERS pension provisions but mainly paid by land grant
colleges, to participate in the federal Thrift Savings Plan. Current-
ly, about 1,100 of these employees already have Thrift Plan ac-
counts (300 workers covered by the CSRS and another 800 covered
by FERS). But they are ineligible to participate, according to the
Internal Revenue Service, as they are paid by nonfederal sources.
Unless Section 125 is enacted, the Thrift Board will refund employ-
ee and employer contributions of less than $1 million dollars?
without any investment earnings. Section 125 would have no signif-
icant effect on federal tax revenues. The direct spending impact de-
pends on the budgetary treatment of the Thrift Plan.
If the Thrift Plan is on budget, as it is for CBO's February 1987
baseline, this section would reduce annual outlays over the next
five years by progressively larger amounts: some $1 million in
fiscal year 1988, and an estimated $3 million in 1992. On the other
hand, if the Thrift Plan is independent of the unified budget, as
adopted by the CBO August 1987 baseline following the recommen-
dations of the General Accounting Office, the section's direct
spending effect is limited to the estimated yearly increase in inter-
est payments by the Treasury on nonmarketable U.S. securities
held by the Thrift Savings Plan. The additional interest payments
in 1992 would amount to less than $0.5 million.
Section 204 gives certain former spouses of foreign service offi-
cers retirement, survivor, and health benefits. This would result in
additional future federal liabilities through new entitlement au-
thority. Outlays from these new benefits are expected to be $0.7
million in fiscal year 1988, then slightly increase in the next three
fiscal years before declining due to reductions in the number of
beneficiaries. Outlays would come from the Foreign Service Retire-
ment and Disability Fund.
OVERSIGHT
Under the rules of the House, the Committee on Post Office and
Civil Service is vested with legislative and oversight jurisdiction
over the subject matter of this legislation. As a result of its consid-
eration, the committee concluded that there is ample need and jus-
tification for the enactment of this legislation.
The committee received no report of oversight findings or recom-
mendations from the Committee on Government Operations pursu-
ant to clause 4(c)(2) of House Rule X.
INFLATIONARY IMPACT STATEMENT
Pursuant to clause 2(1)4) of House Rule XI, the committee has
concluded that the enactment of H.R. 3395 will have no inflation-
ary impact on the national economy.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3 of Rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
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as reported, are shown as follows (existing law proposed to be omit-
ted is enclosed in black brackets, new matter is printed in italic,
existing law in which no change is proposed is shown in roman):
TITLE 5, UNITED STATES CODE
PART III?EMPLOYEES
CHAPTER 33?EXAMINATION, SELECTION, AND
PLACEMENT
Subchapter I?Examination, Selection, and Appointment
? 3307. Competitive service; maximum-age entrance requirements;
exceptions
(a) * '
(d) The head of any agency [may, with the concurrence of such
agent as the President may designate] may determine and fix the
minimum and maximum limits of age within which an original ap-
pointment may be made to a position as a law enforcement officer
or firefighter, as defined by section 8331 (20) and (21), respectively,
of this title.
(e) The head of an agency may determine and fix the maximum
age limit for an original appointment to a position as a firefighter
or law enforcement officer, as defined by section 8401 (14) or (17),
respectively, of this title.
Subpart G?Insurance and Annuities
CHAPTER 83?RETIREMENT
Subchapter III?Civil Service Retirement
? 8331. Definitions
For the purpose of this subchapter?
(1) "employee" means?
(A) an employee as defined by section 2105 of this title;
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(B) the Architect of the Capitol, an employee of the Ar-
chitect of the Capitol, and an employee of the Botanic
Garden;
(C) a Congressional employee as defined by section 2107
of this title (other than the Architect of the Capitol, an
employee of the Architect of the Capitol, and an employee
of the Botanic Garden), after he gives notice in writing to
the official by whom he is paid of his desire to become sub-
ject to this subchapter;
(D) a temporary Congressional employee appointed at an
annual rate of pay, after he gives notice in writing to the
official by whom he is paid of his desire to become subject
to this subchapter;
(E) a United States Commissioner whose total pay for
services performed as Commissioner is not less than $3,000
in each of the last 3 consecutive calendar years ending
after December 31, 1954;
(F) an individual employed by a county committee estab-
lished under section 590h(b) of title 16;
(G) an individual first employed by the government of
the District of Columbia before October 1, 1987;
(H) an individual employed by Gallaudet College;
(I) an individual appointed to a position on the office
staff of a former President under section 1(b) of the Act of
August 25, 1958 (72 Stat. 838); and
(J) an alien (i) who was previously employed by the Gov-
ernment, (ii) who is employed full time by a foreign gov-
ernment for the purpose of protecting or furthering the in-
terests of the United States during an interruption of dip-
lomatic or consular relations, and (iii) for whose services
reimbursement is made to the foreign government by the
United States;
but does not include?
(i) * * *
* * * * * *
(x) an employee subject to the Federal Employees' Re-
tirement System; [or]
(xi) an employee under the Botanic Garden excluded by
the Director or Acting Director of the Botanic Garden
under section 8347(1) of this title [.]; or
(xii) a member of the Foreign Service (as described in sec-
tion 103(6) of the Foreign Service Act of 1980), appointed
after December 31, 1.987.
(18) "Fund balance" means the sum of?
(A) the investments of the Fund calculated at par value;
and
(B) the cash balance of the Fund on the books of the
Treasury;
but does not include any amount attributable to?
(i) the Federal Employees' Retirement System; or
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(ii) contributions made under the Federal Employees' Re-
tirement Contribution Temporary Adjustment Act of 1983
by or on behalf of any individual who became subject to
the Federal Employees' Retirement System;
? 8334. Deduction contributions, and deposits
(a) * * *
(c) Each employee or Member credited with civilian service after
July 31, 1920, for which retirement deductions or deposits have not
been made, may deposit with interest an amount equal to the fol-
lowing percentages of his basic pay received for that service:
Percentage of basic pay Service period
Employee 2V2 August 1, 1920, to June 30,1926.
31/2 July 1, 1926, to June 30, 1942.
5 July 1, 1942, to June 30, 1948.
6 July 1, 1948, to October 31, 1956.
61/2 November 1, 1956, to December 31, 1969.
7 After December 31, 1969.
Notwithstanding the preceding provisions of this subsection and
any provison of section 206(b)(3) of the Federal Employees' Retire-
ment Contribution Temporary Adjustment Act of 1983, the percent-
age of basic pay required under this subsection in the case of an
individual described in section 8402(b)(2) shall, with respect to any
covered service (as defined by section 203(a)(3) of such Act) per-
formed by such individual after December 31, 1983, and before Jan-
uary 1, 1987, be equal to 1.3 percent(.], and, with respect to any
such service performed after December 31, 1986, be equal to the
amount that would have been deducted from the employee's basic
pay under subsection (k) of this section if the employee's pay had
been subject to that subsection during such period.
(k)(1) * * *
(4) In administering paragraphs (1) through (3)?
(A) the term "an individual described in section 8402(b)(2) of
this title" shall be considered to include any individual?
(i) who is subject to this subchapter as a result of a provi-
sion of law described in section 8347(o), and
(ii) whose employment (as described in section 8347(0)) is
also employment for purposes of title II of the Social Secu-
rity Act and chapter 21 of the Internal Revenue Code of
1986; and
(B) the term "Federal wages", as applied with respect to any
individual to whom this subsection applies as a result of sub-
paragraph (A), means basic pay for any employment referred to
in subparagraph (A)(ii).
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? 8337. Disability retirement
(a) * '
((f) An individual is not entitled to receive an annuity under
this subchapter and compensation for injury or disability to himself
under subchapter I of chapter 81 of this title covering the same
period of time. This provision does not bar the right of a claimant
to the greater benefit conferred by either subchapter for any part
of the same period of time. Neither this provision nor any provision
of subchapter I of chapter 81 of this title denies to an individual an
annuity accruing to him under this subchapter on account of serv-
ice performed by him, or denies any concurrent benefit to him
under subchapter I of chapter 81 of this title on account of the
death of another individual.
[(g) The right of an individual entitled to an annuity under this
subchapter is not affected because he has received a lump-sum pay-
ment for compensation under section 8135 of this title. However, if
the annuity is payable on account of the same disability for which
compensation under section 8135 of this title has been paid, so
much of the compensation as has been paid for a period extended
beyond the date the annuity becomes effective, as determined by
the Department of Labor, shall be refunded to that Department to
be covered into the Employees' Compensation Fund. Before the in-
dividual may receive the annuity he shall?
[(1) refund to the Department of Labor the amount repre-
senting the commuted compensation payments for the ex-
tended period; Or
[(2) authorize the deduction of that amount from the annu-
ity payable to him under this subchapter, which amount shall
be transmitted to the Department of Labor for reimbursement
to the Employees' Compensation Fund.
Deductions from the annuity may be made from accrued and accru-
ing payments. When the Department of Labor finds that the finan-
cial circumstances of the annuitant warrant deferred refunding, de-
ductions from the annuity may be prorated against and paid from
accruing payments in such manner as that Department deter-
mines.]
(fX) An individual is not entitled to receive?
(A) an annuity under this subchapter, and
(B) compensation for injury to, or disability of such individ-
ual under subchapter I of chapter 81, other than compensation
payable under section 8107,
covering the same period of time.
(2) An individual is not entitled to receive an annuity under this
subchapter and a concurrent benefit under subchapter I of chapter
81 on account of the death of the same person.
(3) Paragraphs (1) and (2) do not bar the right of a claimant to
the greater benefit conferred by either this subchapter or subchapter
I of chapter 81.
(g) If an individual is entitled to an annuity under this subchap-
ter, and the individual receives a lump-sum payment for compensa-
tion under section 8135 based on the disability or death of the same
person, so much of the compensation as has been paid for a period
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extended beyhond the date payment of the annuity commences, as
determined by the Department of Labor, shall be refunded to that
Department for credit to the Employees' Compensation Fund. Before
the individual may receive the annuity, the individual shall?
(1) refund to the Department of Labor the amount represent-
ing the commuted compensation payments for the extended
period; or
(2) authorize the deduction of the amount from the annuity.
Deductions from the annuity may be made from accrued or accruing
payments. The amounts deducted and withheld from the annuity
shall be transmitted to the Department of Labor for reimbursement
to the Employees' Compensation Fund. When the Department of
Labor finds that the financial circumstances of an individual enti-
tled to an annuity under this subchapter warrant deferred refund-
ing, deductions from the annuity may be prorated against and paid
from accruing payments in such manner as the Department deter-
mines appropriate.
? 8342. Lump-sum benefits; designation of beneficiary; order of
precedence
(a) Subject to subsection (j) of this section, an employee or
Member who?
(1)(A) is separated from the service for at least thirty-one
consecutive days; or
(B) is transferred to a position in which he is not subject to
this subchapter, or chapter 84 of this title; and remains in such
a position for at least thirty-one consecutive days;
(2) files an application with the Office of Personnel Manage-
ment for payment of the lump-sum credit;
(3) is not reemployed in a position in which he is subject to
this subchapter, or chapter 84 of this title; at the time he files
the application; and
(4) will not become eligible to receive an annuity within
thirty-one days after filing the application,
is entitled to be paid the lump-sum credit. Except as provided in
section 8343a of this title, the receipt of the payment of the lump-
sum credit by the employee or Member voids all annuity rights
under this subchapter based on the service on which the lump-sum
credit is based, until the employee or Member is reemployed in the
service subject to this subchapter. [In applying this subsection
with respect to an employee or Member who becomes subject to
chapter 84 of this title, entitlement to payment of the lump-sum
credit shall be determined without regard to paragraph (1) or (3) if,
and to the extent that, such lump-sum credit relates to service of a
type described in clauses (i) through (iii) of section 302(a)(1)(C) of
the Federal Employees' Retirement System Act of 1986.3 In apply-
ing this subection to an employee or Member who becomes subject to
chapter 84 (other than by an election under title III of the Federal
Employees' Retirement System Act of 1986) and who, while subject
to such chapter, files an application with the Office for a payment
under this subsection?
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(i) entitlement to payment of the lump-sum credit shall be de-
termined without regard to paragraph (1) or (3) if or to the
extent that, such lump-sum credit relates to service of a type de-
scribed in clauses (i) through (iii) of section 302(a)(1)(C) of the
Federal Employees' Retirement System Act of 1986; and
(ii) if or to the extent that, the lump-sum credit so relates to
service of a type referred to in clause (i), it shall (notwithstand-
ing section 8331(8)) consist of?
(I) the amount by which any unrefunded amount described in
section 8331(8)(A) or (B) relating to such service, exceeds 1.8 per-
cent of basic pay for such service; and
(II) interest on the amount payable under subclause (I), com-
puted in a manner consistent with applicable provisions of sec-
tion 8331(8).
? 8347. Administration; regulations
(a) '
* * * * * *
(o) Any provision of law outside of this subchapter which provides
coverage, service credit, or any other benefit under this subchapter
to any individuals who (based on their being employed by an entity
other than the Government) would not otherwise be elgible for any
such coverage, credit, or benefit, shall not apply with respect to any
individual appointed, transferred, or otherwise commencing that
type of employment on or after October I, 1988.
? 8349. Offset relating to certain benefits under the Social
Security Act
(a) ' *
(d) In administering subsections (a) through (c)?
(1) the terms "an individual under section 8402(b)(2)" and
"an individual described in section 8402(b)(2)" shall each be
considered to include any individual?
(A) who is subject to this subchapter as a result of any
provision of law described in section 834 7(o), and
(B) whose employment (as described in section 834 7(o)) is
also employment for purposes of title II of the Social Secu-
rity Act and chapter 21 of the Internal Revenue Code of
1986; and
(2) the term "Federal service", as applied with respect to any
individual to whom this section applies as a result of para-
graph (1), means any employment referred to in paragraph (1)(B)
performed after December 31, 1983.
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? 8351. Participation in the Thrift Savings Plan
(a) '
(c) A member of the Foreign Service described in section 103(6) of
the Foreign Service Act of 1980 shall be ineligible to make any elec-
tion under this section.
[(c)3 (d) The Executive Director of the Federal Retirement
Thrift Investment Board may prescribe regulations to carry out
this section.
CHAPTER 84?FEDERAL EMPLOYEES' RETIREMENT
SYSTEM
. SUBCHAPTER VL-DISABILITY BENEFITS
8451. Disability retirement.
[8456. Relationship to workers' compensation.]
[8457.] 8456. Military reserve technicians.
SUBCHAPTER VI?GENERAL AND ADMINISTRATIVE PROVISIONS
8461. Authority of the Office of Personnel Management.
8462. Cost-of-living adjustments.
8463. Rate of benefits.
8464. Commencement and termination of annuities of employees and Members.
8464a. Relationship between annuity and workers' compensation.
Subchapter I?General Provisions
? 8401. Definitions
For the purpose of this chapter?
(1) * * *
(11) the term "employee" means?
(A) an individual referred to in subparagraph (A), (E),
(F), (H), (I), or (J), of section 8331(1) of this title; and
(B) a Congressional employee as defined in section 2107
of this title, including a temporary Congressional employee
and an employee of the Congressional Budget Office;
whose civilian service after December 31, 1983, is employment
for the purposes of title II of the Social Security Act and chap-
ter 21 of the Internal Revenue Code of 1954, except that such
term does not include?
(i) any individual referred to in?
(I) clause (i), (v), (vi), or (ix) of paragraph (1) of sec-
tion 8331;
(II) clause (ii) of such paragraph [(other than an
employee of the United States Park Police, or the
United States Secret Service, whose civilian service
after December 31, 1983, is such employment)] ; or
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(III) the undesignated material after the last clause
of such paragraph; [or]
(ii) any individual excluded under section 8402(c) of this
title; (or]
(iii) a member of the Foreign Service described in section
109(6) of the Foreign Service Act of 1980;
*
* *
(14) the term "firefighter" means?
(A) an employee, the duties of whose position?
(i) are primarily to perform work directly connected
with the control and extinguishment of fires; and
(ii) are sufficiently rigorous that employment oppor-
tunities [are required to] should be limited to young
and physically vigorous individuals, as determined by
the Director considering the recommendations of the
employing agency; and
(B) an employee who is transferred directly to a supervi-
sory or administrative position after performing duties de-
scribed in subparagraph (A) [for at least 10 years];
* * * * * * *
(17) the term "law enforcement officer" means?
(A) an employee, the duties of whose position?
(i) are primarily?
(I) the investigation, apprehension, or detention
of individuals suspected or convicted of offenses
against the criminal laws of the United States, or
(II) the protection of officials of the United
States against threats to personal safety; and
(ii) are sufficiently rigorous that employment oppor-
tunities [are required to] should be limited to young
and physically vigorous individuals, as determined by
the Director considering the recommendations of the
employing agency;
(B) an employee of the Department of the Interior or the
Department of the Treasury (excluding any employee under
subparagraph (A)) who occupies a position that, but for the
enactment of the Federal Employees' Retirement System
Act of 1986, would be subject to the District of Columbia
Police and Firefighters' Retirement System, as determined
by the Secretary of the Interior or the Secretary of the
Treasury, as appropriate;
[(B) an employee who is transferred directly to a super-
visory or administrative position after performing duties
described in subparagraph (A) for at least 10 years; and]
(C) an employee who is transferred directly to a superviso-
ry or administrative position after performing duties de-
scribed in subparagraph (A) or (B); and
[(C)] (D) an employee?
(i) of the Bureau of Prisons or Federal Prison Indus-
tries, incorporated;
I
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(ii) of the Public Health Service assigned to the field
service of the Bureau of prisons or of the Federal
Prison Industries, Incorporated; or
(iii) in the field service at Army or Navy disciplinary
barracks or at any other confinement and rehabilita-
tion facility operated by any of the armed forces;
whose duties in connection with individuals in detention
suspected or convicted offenses against the criminal laws
of the United States or of the District of Columbia or of-
fenses against the punitive articles of the Uniform Code of
Military Justice (chapter 47 of title 10) require frequent
direct contact with these individuals in their detention and
are sufficiently rigorous that employment opportunities
[are required to] should be limited to young and phys-
ically vigorous individuals, as determined by the head of
the employing agency;
Subchapter II?Basic Annuity
? 8411. Creditable service
(a) * * *
(4)(A) Notwithstanding paragraphs (2), for purposes of computing
a survivor annuity for a survivor of an employee or Member?
(i) who was awarded retired pay based on any period of mili-
tary service, and
(ii) whose dealth occurs before separation from the service,
creditable service of the deceased employee or Member shall in-
clude each period of military service includable under subpara-
graph (A) or (B) or paragraph (1) or under paragraph (3). In carry-
ing out this subparagraph, any amount deposited under [subsec-
tion (f)(4)] section 8422(e)(5) shall be taken into account.
(f)(1) An employee or Member, who has received a refund of re-
tirement deductions under subchapter III of chapter 83 with re-
spect to any service described in subsection (b)(2) or (b)(3) may not
be allowed credit for such service under this chapter unless such
employee or Member deposits an amount equal to 1.3 percent of
basic pay for such service, with interest. A deposit under this para-
graph may be made only with respect to a refund received pursuant
to an application filed with the Office before the date on which the
employee or Member first becomes subject to this chapter.
? 8422. Deductions from pay; contributions for military service
(a) * * *
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(e)(1) * * *
(5) For the purpose of survivor annuities, deposits authorized by
this subsection may also be made by a survivor of an employee or
Member.
? 8423. Government contributions
* * *
(b)(1) The Office shall compute?
(A) the amount of the supplemental liability of the Fund
with respect to individuals other than those to whom subpara-
graph (B) relates, and
(B) the amount of the supplemental liability of the Fund
with respect to current or former employees of the United
States Postal Service (and the Postal Rate Commission) and
their survivors;
as of the close of each fiscal year beginning after September 30,
1987 (.1 , except that in computing any supplemental liability under
subparagraph (B), any benefits, deductions, or other amounts may
not be taken into account unless they relate to a period of service
performed by the current or former employee involved while subject
to this chapter.
Subchapter III?Thrift Savings Plan
? 8432. Contributions
(a) * * *
* * * * * *
(c)(1)(A) [At the end of] At the time prescribed by the Executive
Director, but no later than 12 days after the end of the pay period
that includes the first date on which an employee or Member may
make contributions under subsection (a) (without regard to whether
the employee or Member has elected to make such contributions
during such pay period), and [at the end of each succeeding pay
period,] within such time as the Executive Director may prescribe
with respect to succeeding pay periods (but no later than 12 days
after the end of each such pay period), the employing agency shall
contribute to the Thrift Savings Fund for the benefit of such em-
ployee or Member the amount equal to 1 percent of the basic pay
paid of such employee or Member for such pay period.
* * a a * * *
(2)(A) In addition to contributions made under paragraph (1), the
employing agency of an employee or Member who contributes to
the Thrift Savings Fund under subsection (a) for any pay period
shall make a contribution to the Thrift Savings Fund for the bene-
fit of such employee or Member. The employing agency's contribu-
tion shall be made [at the end of such pay period.] within such
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time as the Executive Director may prescribe, but no later than 12
days after the end of each such pay period.
* * * * * * *
(d) Notwithstanding any other provision of this section, no contri-
bution may be made under this section for any year to the extent
that such contribution, when added to prior contributions for such
year, exceeds any limitation under section 415 of the Internal Rev-
enue Code of 1954. However, no contribution made under subsection
(c)(3) shall be subject to, or taken into account, for purposes of the
preceding sentence.
* * * * * * *
(g)(1) Except as [provided in paragraphs (2) and (3)1 otherwise
provided in this subsection, all contributions made under this sec-
tion shall be fully nonforfeitable when made.
* * * * * * *
(4) Nothing in paragraph (2) or (3) shall cause the forfeiture of
any contributions made for the benefit of an employee, Member, or
Congressional employee under subsection (c)(1), or any earnings at-
tributable thereto, if such employee, Member, or Congressional em-
ployee is not separated from Government employment as of date of
death.
? 8437. Thrift Savings Fund
(a) * * *
(d) Administrative expenses incurred to carry out this subchapter
and subchapter VII of this chapter shall be paid first out of any
sums in the Thrift Savings Fund forfeited under section 8432(g) of
this title and then out of net earnings in such Fund [attributable
to sums contributed to such Fund under section 8432(c) of this
title].
(e)(1) Subject to subsection (d) and paragraphs (2) and (3), sums in
the Thrift Savings Fund credited to the account of an employee,
Member, former employee, or former Member may not be used for,
or diverted to, purposes other than for the exclusive benefit of the
employee, Member, former employee, or former Member or his
beneficiaries under this subchapter.
*
(3) Moneys due or payable from the Thrift Savings Fund to any
individual and, in the case of an individual who is an employee or
Member (or former employee or Member), the balance in the ac-
count of the employee or Member (or former employee or Member)
shall be subject to legal process for the enforcement of the individ-
ual's legal obligations to provide child support or make alimony
payments as provided in section 459 of the Social Security Act (42
U.S.C. 659). For the purposes of this paragraph, an amount contrib-
uted for the benefit of an individual under section 8432(c)(1) (in-
cluding any earnings attributable thereto) shall not be considered
part of the balance in such individual's account unless such
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amount is nonforfeitable, as determined under applicable provisions
of section 8432(g).
Subchapter V?Disability Benefits
? 8452. Computation of disability annuity
(a)(1)(A) " *
[(B) An annuity computed under this paragraph shall not, for
purposes of any adjustment under section 8462 (including any ad-
justment under subsection (c)(1) of such section), be considered to
have commenced until after such annuity ceases to be determined
under subparagraph (A)(i).]
(B) An annuity computed under this paragraph?
(i) shall not, during any period referred to in subparagraph
(A)(i), be adjusted under section 8462; but
(ii) shall, after the end of any period referred to in subpara-
graph (A)(i), be adjusted to reflect all adjustments made under
section 8462(b) after the end of the period referred to in sub-
paragraph (A)(i), whether the amount actually payable to the
annuitant under this section in any month is determined under
this subsection or otherwise.
(2)(A) * '
[(B)(i) For purposes of this paragraph, the assumed disability in-
surance benefit of an annuitant for any month shall be equal to?
[(I) the amount of the disability insurance benefit to which
the annuitant would have been entitled under section 223 of
the Social Security Act for the month in which the annuity
under this subchapter commenced, or was restored, determined
as if such annuitant had then satisfied all requirements for en-
titlement to a benefit under such section, adjusted by
[(II) all adjustments made under section 8462(b) between the
date on which the annuity commenced, or was restored, and
the start of the month involved (without regard to whether the
annuitant's annuity was affected by any of those adjustments).
For purposes of computing the assumed disability insurance bene-
fit, the month in which the annuitant's disability began (as deter-
mined under section 216(i)(2)(C) of the Social Security Act) shall be
the month in which the annuitant commenced or, if earlier (and if
a determination was actually made) the month determined under
such section.]
(B)(i) For purposes of this paragraph, the assumed disability in-
surance benefit of an annuitant for any month shall be equal to?
(I) the amount of the disability insurance benefit to which the
annuitant is entitled under section 223 of the Social Security
Act for the month in which the annuity under this subchapter
commences, or is restored, or, if no entitlement to such disabil-
ity insurance benefit exists for such month, the first month
thereafter for which the annuitant is entitled both to an annu-
ity under this subchapter and disability insurance benefits
under section 223 of the Social Security Act, adjusted by
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(II) all adjustments made under section 8462(b) after the end
of the period referred to in paragraph (1)(A)(i) (or, if later, after
the end of the month preceding the first month for which the
annuitant is entitled both to an annuity under this subchapter
and disability insurance benefits under section 223 of the Social
Security Act) and before the start of the month involved (with-
out regard to whether the annuitant's annuity was affected by
any of those adjustments).
(3) Section 8462 shall apply with respect to amounts under this
subsection only as provided in paragraphs (I) and (2).
[(b)(1) Except as provided in subsection (d), if an annuitant is en-
titled to an annuity under this subchapter as of the day before the
date of the sixty-second anniversay of the annuitant's birth (herein-
after in this section referred to as the annuitant's "redetermina-
tion date"), such annuity shall be redetermined under paragraph
(3) or (4), as applicable. Effective as of the annuitant's redetermina-
tion date, the annuity (as so redetermined) shall be in lieu of any
annuity to which such annuitant would otherwise be entitled under
this subchapter.
[(2)(A) In order to carry out paragraphs (3) and (4), the Office
shall compute an annuity for the annuitant under section 8415.
[(B) In performing a computation under this paragraph?
[(i) creditable service of the annuitant shall be increased by
including the period (or periods), if any, before the annuitant's
redetermination date during which the annuitant was entitled
to an annuity under this subchapter; and
[(ii) the average pay which would otherwise be used shall be
adjusted to reflect all adjustments made under section 8462(b)
with respect to any period (or periods) referred to in clause (i)
(without regard to whether the annuitant's annuity was affect-
ed by any of those adjustments).
[(3) If, as of the day before the annuitant's redetermination date,
the annuitant's annuity is subject to reduction under subsection
(a)(2), the annuitant's redetermined annuity shall be the lesser of?
[(A) the amount determined with respect to such annuitant
under paragraph (2); or
[(B) subject to the following sentence, the amount (converted
so as to be expressed as an annual amount) which would other-
wise be payable under this subchapter for the month in which
occurs the day before the annuitant's redetermination date, as
computed under subsection (a) (based on the assumption that
the annuitant was entitled to an annuity under this subchap-
ter, and to a disability insurance benefit under section 223 of
the Social Security Act, for the entirety of such month).
If the annuitant's redetermination date occurs during the period
described in subsection (a)(1)(A)(i), the amount used under subpara-
graph (B) may not exceed the amount (converted so as to be ex-
pressed as an annual amount) which would otherwise be payable
under this subchapter for the first month after such period, as com-
puted under subsection (a) based on the assumption that the annui-
tant was entitled to an annuity under this subchapter, and to a dis-
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ability insurance benefit under section 223 of the Social Security
Act for the entirety of such month.
[(4) If, as of the day before the annuitant's redetermination date,
the annuitant's annuity is not subject to reduction under subsec-
tion (a)(2), the annuitant's redetermined annuity shall be the lesser
of?
[(A) the amount determined with respect to such annuitant
under paragraph (2); or
[(B) the amount which would be used for such annuitant
under subparagraph (B) of paragraph (3) (as determined subject
to the second sentence of such paragraph), if such paragraph
applied to such annuitant.]
(b)(1) Except as provided in subsection (d), if an annuitant is enti-
tled to an annuity under this subchapter as of the day before the
date of the sixty-second anniversary of the annuitant's birth (herein-
after in this section referred to as the annuitant's "redetermination
date"), such annuity shall be redetermined by the Office in accord-
ance with paragraph (2). Effective as of the annuitant's redetermi-
nation date, the annuity (as so redetermined) shall be in lieu of any
annuity to which such annuitant would otherwise be entitled under
this subchapter.
(2)(A) An annuity redetermined under this subsection shall be
equal to the amount of the annuity to which the annuitant would
be entitled under section 8415, taking into account the provisions of
subparagraph (B).
(B) In performing a computation under this paragraph?
(i) creditable service of an annuitant shall be increased by in-
cluding any period (or periods) before the annuitant's redetermi-
nation date during which the annuitant was entitled to an an-
nuity under this subchapter; and
(ii) the average pay which would otherwise be used shall be
adjusted to reflect all adjustments made under section 8462(b)
with respect to any period (or periods) referred to in clause (i)
(without regard to whether the annuitant's annuity was affect-
ed by any of those adjustments.
(d) (1) The annuity to which an annuitant is entitled under this
section (after the reduction under subsection (a)(2), if applicable,
has been made) shall not be less than the amount of an annuity
computed under section 8415 (excluding subsection (f) of such sec-
tion).
(2) In applying this subsection with respect to any annuitant, the
amount of an annuity so computed under section 8415 shall be ad-
justed under section 8462 (including subsection (c) thereof)?
(A) to the same extent, and otherwise in the same manner, as
if it were an annuity?
(i) subject to adjustment under such section; and
(ii) with a commencement date coinciding with the date
the annuitant's annuity commenced or was restored under
this subchapter, as the case may be; and
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(B) whether the amount actually payable to the annuitant
under this section in any month is determined under this sub-
section or otherwise.
(? 8456. Relationship to workers' compensation
[(a)(1) An individual is not entitled to receive an annuity under
this subchapter and compensation for injury to or disability of the
individual under subchapter I of chapter 81 covering the same
period of time.
[(2) Paragraph (1) does not bar the right of a claimant to the
greater benefit conferred by either subchapter referred to in such
paragraph for any part of the period referred to in such paragraph.
[(3) Paragraph (1) and the provisions of subchapter I of chapter
81 do not deny an individual an annuity which the individual is
entitled to receive under this chapter on account of service per-
formed by the individual and do not deny any concurrent benefit to
the individual under subchapter I of chapter 81 on account of the
death of another individual.
[(b)(1) Subject to paragraph (2), an individual's receipt of a lump-
sum payment for compensation under section 8135 shall not affect
the individual's entitlement to an annuity under this subchapter.
[(2) If an annuity is payable under this subchapter by reason of
the same disability for which a lump-sum payment of compensation
referred to in paragraph (1) has been made, so much of the com-
pensation as has been paid for a period extended beyond the date
payment of the annuity commences, as determined by the Depart-
ment of Labor, shall be refunded to that Department for credit to
the Employees' Compensation Fund. Before the individual may re-
ceive the disability annuity, the individual shall?
[(A) refund to the Department of Labor the amount repre-
senting the commuted compensation payments for the ex-
tended period; or
[(B) authorize the deduction of the amount from the annu-
ity.
Deductions from the annuity may be made from accrued or accru-
ing payments. The amounts deducted and withheld from the annu-
ity shall be transmitted to the Department of Labor for reimburse-
ment to the Employees' Compensation Fund. When the Depart-
ment of Labor finds that the financial circumstances of an individ-
ual entitled to an annuity under this subchapter warrant deferred
refunding under this paragraph, deductions from the annuity may
be prorated against and paid from accruing payments in such
manner as the Department determines appropriate.]
? (8457.3 8456. Military reserve technicians
(a)(1) Except as provided in paragraph (2) or (3), an individual
shall be retired under this subchapter if the individual?
(A) is separated from employment as a military reserve tech-
nician by reason of a disability that disqualifies the individual
from membership in a reserve component of the Armed Forces
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specified in section 261(a) of title 10 or from holding the mili-
tary grade required for such employment;
Subchapter VI?General and Administrative Provisions
?8464a.. Relationship between annuity and workers' compensation
(a)(1) An individual is not entitled to receive?
(A) an annuity under subchapter II or V. and
(B) compensation for injury to, or disability of such individ-
ual under subchapter I of chapter 81, other than compensation
payable under section 8107,
covering the same period of time.
(2) An individual is not entitled to receive an annuity under sub-
chapter IV and a concurrent benefit under subchapter I of chapter
81 on account of the death of the same person.
(3) Paragraphs (1) and (2) do not bar the right of a claimant to
the greater benefit conferred by either this chapter or subchapter I
of chapter 81.
(b) If an individual is entitled to an annuity under subchapter II,
IV, or v, and the individual receives a lump-sum payment for com-
pensation under section 8135 based on the disability or death of the
same person, so much of the compensation as has been paid for a
period extended beyond the date payment of the annuity commences,
as determined by the Department of Labor, shall be refunded to
that Department for credit to the Employees' Compensation Fund.
Before the individual may receive the annuity, the individual
shall?
(1) refund to the Department of Labor the amount represent-
ing the commuted compensation payments for the extended;
period; or
(2) authorize the deduction of the amount from the annuity.
Deductions from the annuity may be made from accrued or accruing
payments. The amounts deducted and withheld from the annuity
shall be transmitted to the Department of Labor for reimbursement
to the Employees' Compensation Fund. When the Department of
Labor finds that the financial circumstances of an individual enti-
tled to an annuity under subchapter II, IV, or V warrant deferred
refunding, deductions from the annuity may be prorated against
and paid from accruing payments in such manner as the Depart-
ment determines appropriate.
CHAPTER 87?LIFE INSURANCE
Sec.
8701. Definitions.
8702. Automatic coverage.
8703. Benefit certificate.
8704. Group insurance; amounts.
8705. Death claims; order of precedence; escheat.
8706. Termination of insurance; adjustment of ownership.
8707. Employee deductions; withholding.
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8708. Government contributions.
8709. Insurance policies.
8'710. Reinsurance.
8711. Basic tables of premium rates.
8712. Annual accounting; special contingency reserve.
8713. Effect of other statutes.
?8704. Group insurance; amounts
(a) * * *
(c) The Office shall prescribe regulations providing for the con-
version of other than annual rates of pay to annual rates of pay
and shall specify the types of pay included in annual pay. For the
purpose of this chapter, "annual pay" includes?
(1) premium pay under section 5545(c)(1) of this title; and
(2) with respect to a law enforcement officer as defined in
section 8331(20) or 8401(17) of this title, premium pay under
section 5545(c)(2) of this title.
a a
? 8713. Effect of other statutes
Any provision of law outside of this chapter which provides cover-
age or any other benefit under this chapter to any individuals who
(based on their being employed by an entity other than the Govern-
ment) would not otherwise be eligible for any such coverage or bene-
fit shall not apply with respect to any individual appointed, trans-
ferred, or otherwise commencing that type of employment on or after
October 1, 1988.
CHAPTER 89?HEALTH INSURANCE
Sec.
8901. Definitions.
8902. Contracting authority.
8903. Health benefits plans.
8903a. Additional health benefits plans.
8905. Election of coverage.
8906. Contributions.
8907. Information to individuals eligible to enroll.
8908. Coverage of restored employees and survivor or disability annuitants.
8909. Employees Health Benefits Fund.
8910. Studies, report, and audits.
8911. Advisory committee.
8912. Jurisdiction of courts.
8913. Regulations.
8914. Effect of other statutes.
8914. Effect of other statutes
Any provision of law outside of this chapter which provides cover-
age or any other benefit under this chapter to any individuals who
(based on their being employed by an entity other than the Govern-
ment) would not otherwise be eligible for any such coverage or bene-
fit shall not apply with respect to any individual appointed, trans-
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ferred, or otherwise commencing that type of employment on or after
October 1, 1988.
SECTION 4-607(1) OF TITLE 4 OF THE DISTRICT OF COLUMBIA CODE
? 4-607. Definitions.
Wherever used in ?? 4-607 to 4-630:
(1) The term "member" means any officer or member of the Met-
ropolitan Police force, of the Fire Department of the District of Co-
lumbia, of the United States Park Police force of the Executive
Protective Service, and any officer or member of the United States
Secret Service Division to whom ?? 4-607 to 4-630 shall apply [1 ,
but does not include an officer or member of the United States Park
Police force, or of the United States Secret Service Division, whose
service is employment for the purposes of title II of the Social Secu-
rity Act and chapter 21 of the Internal Revenue Code of 1986, and
who is not excluded from coverage under chapter 84 of title 5,
United States Code, by operation of section 8402 of such title.
FEDERAL EMPLOYEES' RETIREMENT SYSTEM ACT OF 1986
TITLE II-OTHER AMENDMENTS TO TITLE
5 OF THE UNITED STATES CODE
SEC. 207. MISCELLANEOUS AMENDMENTS
(a) * * *
* * * * * *
(o) An employee of Saint Elizabeths Hospital who is appointed to
a position in the government of the District of Columbia on Octo-
ber 1, 1987, pursuant to the Saint Elizabeths Hospital and District of
Columbia Mental Health Service Act (Public Law 98-621; 98 Stat.
3369 and following) shall, for purposes of chapters 83, 87, and 89 of
title 5, United States Code, be treated in the same way as an indi-
vidual first employed by the government of the District of Columbia
before October 1, 1987.
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TITLE III OTHER PROVISIONS RELATING
TO THE FEDERAL EMPLOYEE'S RE-
TIREMENT SYSTEM AND THE CIVIL
SERVICE RETIREMENT SYSTEM
SEC. 301. ELECTIONS.
(a) ELECTIONS FOR INDIVIDUALS SUBJECT TO THE CIVIL SERVICE RE-
TIREMENT SYSTEM.--(1) * * *
(3)(A) Except as provided in subparagraph (B), any individual?
(i) who is excluded from the operation of subchapter III of
chapter 83 of title 5, United States Code, under subsection (g),
0), (j), or (l) of section 834 7 of such title, and
(ii) with respect to whom chapter 84 of title 5, United States
Code, does not apply because of section 8402(b)(2) of such title,
shall, for purposes of an election under paragraph (I) or (2), be
treated as if such individual were subject to subchapter III of
chapter 83 of title 5, United States Code.
(B) An election under this paragraph may not be made by any in-
dividual who would be excluded from the operation of chapter 84 of
title 5, United States Code, under section 8402(c) of such title (relat-
ing to exclusions based on the temporary or intermittent nature of
one's employment).
(4) A member of the Foreign Service described in section 103(6) of
the Foreign Service Act of 1980 shall be ineligible to make any elec-
tion under this subsection.
SEC. 302. EFFECT OF AN ELECTION UNDER SECTION 301 TO BECOME SUB-
JECT TO THE FEDERAL EMPLOYEES' RETIREMENT SYSTEM.
(a) GENERAL AND SPECIAL RULES.?All provisions of chapter 84 of
title 5, United Stats Code (including those relating to disability
benefits, survivor benefits, and any reductions to provide for survi-
vor benefits) shall apply with respect to any individual who be-
comes subject to such chapter pursuant to an election under sec-
tion 301, except if, or to the extent that, such provisions are incon-
sistent with the following:
(1)(A) '
(D) Any service described in subparagraph (A)?
(i) which is not covered service;
(ii) which constitutes service of a type described in sec-
tion 8411(b)(3) of title 5, United States Code (determined
without regard to whether such service was performed
before, on, or after January 1, 1989, and without regard to
the provisions of section 8411(f) of such title); and
(iii) which, in the aggregate, is equal to 5 years or more;
shall be creditable for purposes of?
(I) '
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(IV) any provision of section 8412(d) of such title which
relates to a minimum period of service for entitlement to
an annuity, but only if and to the extent that the service
described in subparagraph (A) was as a law enforcement
officer or firefighter; [and]
(V) any provision of section 8412(e) of such title which
relates to a minimum period of service for entitlement to
an annuity, but only if and to the extent that the service
described in subparagraph (A) was as an air traffic control-
ler [ . ] ; and
(VI) the provision of subsection (g) of section 8415 which
relates to the minimum period of service required to qualify
for the higher accrual rate under such subsection.
* * * * * * *
(4) Except as provided in paragraph (12)(B), accrued benefits
under this paragraph shall be computed in accordance with appli-
cable provisions of subchapter III of chapter 83 of title 5, United
States Code (but without regard to subsection (j) or (k), or the
second sentence of subsection (e), of section 8339 of such title) using
only any civilian service under paragraph (1)(D), and any military
service under paragraph (2)(B), which would be creditable for pur-
poses of computing an annuity under such subchapter. Notwith-
standing the preceding sentence, in computing accrued benefits
under this paragraph for an individual retiring under section
8412(g) or 8413(b) of title 5, United States Code, section 8339(h) of
such title (relating to reductions based on age at date of separation)
shall not apply.
* * * * * * *
(C) REFUNDS RELATION TO CERTAIN CIVILIAN SERVICE.?(1) * * *
[(2) A refund under this subsection?
[(A) shall be payable with interest, computed in accordance
wth paragraphs (2) and (3) of section 8334(e) of title 5, United
States Code, and regulations prescribed by the Office of Per-
sonnel Management.
[(B) shall be payable upon written application therefor filed
with the Office of Personnel Management.]
(2) In accordance with regulations prescribed by the Office of Per-
sonnel Management, a refund under this subsection shall be payable
upon written application therefore filed with the Office and shall
include interest at the rate provided in section 8334(e)(3) of title 5,
United States Code. Interest on the refund shall accrue monthly
and shall be compounded annually.
SEC. 303. PROVISIONS RELATING TO AN ELECTION TO BECOME SUBJECT
TO CHAPTER 83 SUBJECT TO CERTAIN OFFSETS RELATING
TO SOCIAL SECURITY.
(a) REFUND.?Any individual who makes an election under sec-
tion 301(b)(1)(A) shall, upon written application to the Office of Per-
sonnel Management, be entitled to a refund equal to?
(1) for the period beginning on January 1, 1984, and ending
on December 31, 1986, the amount by which?
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(A) the total amount deducted from such individual's
basic pay under section 8334(a)(1) of title 5, United States
Code, for such period, exceeds
(B) 1.3 percent of such individual's total basic pay for
such period; and
(2) for the period beginning on January 1, 1987, and ending
on the day before the effective date of the election, the amount
by which?
(A) the total amount deducted from such individual's
basic pay under such section 8334(a)(1) for such period, ex-
ceeds
(B) the total amount which would have been deducted if
such individual's basic pay had instead been subject to sec-
tion 8334(k) of such title during such period.
[A refund under this subsection shall be computed with interest in
accordance with paragraphs (2) and (3) of section 8334(e) of title 5,
United States Code, and regulations prescribed by the Office of
Personnel Management.]
A refund under this subsection shall be computed with interest in
accordance with section 302(c)(2) and regulations prescribed by the
Office of Personnel Management.
SECTION 4118 OF TITLE 38, UNITED STATES CODE
? 4118. Special pay for physicians and dentists
(a) * * *
(0(1) Except as provided in paragraph (2) of this subsection, any
additional compensation provided as special pay under this section
shall not be considered as basic pay for the purposes of subchapter
VI and section 5595 of chapter 55, chapter [81 or 83] 81, 83, or 84
of title 5, or other benefits related to basic pay.
(2) Additional compensation paid as special pay under this sec-
tion after September 30, 1980, to any full-time employee shall be
included in basic pay for purposes of [chapter 83 of title 53 chap-
ter 83 or 84 of title 5, as the case may be. Notwithstanding the pre-
ceding sentence, special pay paid to any full-time employee after
September 30, 1980, shall be included in average pay, as defined in
[section 8331(4) of such title, for the purposes of computing an an-
nuity under such chapter only if?
(A) the annuity is paid under section 8337 of title 5 or under
subsection (d) or (e) of section 8341 of such title; or] section
8331(4) or 8401(3) of such title (as applicable) only?
(A) for the purposes of computing benefits paid under section
8337, 8341(d) or (e), 8442(b), 8443, or 8451 of such title; or
(B) if the employee has completed not less than 15 years of
full-time service in the Department of Medicine and Surgery
(except that, regardless of the length of such employee's serv-
ice, no special pay may be included in average pay in comput-
ing an annuity that commences before October 1, 1985, and
only one-half of any special pay paid after September 30, 1980,
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may be included in average pay in computing an annuity that
commences on or after October 1, 1985, but before October 1,
1990).
SECTION 4 OF THE CIVIL SERVICE RETIREMENT SPOUSE EQUITY ACT OF
1984
SEC. 4. (a) '
(b)(1) Notwithstanding subsection (a)(1) of this section, a former
spouse of an employee or Member who retired before May 7, 1985,
or who died after becoming eligible to retire and before such date,
is entitled to a survivor annuity under section 8341(b) of title 5,
United States Code, as amended by this Act, if?
(A) * * *
(B) where the employee or Member dies or died on or before
the one hundred and eightieth day after the day of enactment
of this Act or does not make the election described in subpara-
graph (A)?
(i) the former spouse's marriage to the employee or
Member was dissolved after September 14, 1978, and
before May 8, 1987;
(ii) the former spouse was married to the employee or
Member for at least ten years during periods of creditable
service under section 8332 of title 5, United States Code;
(iii) the former spouse has not remarried before age fifty-
five after September 14, 1978;
[(iv) the former spouse files an application for the survi-
vor annuity with the Office within thirty months after the
date of enactment of this Act; and]
(iv) the former spouse files an application for the survivor
annuity with the Office on or before May 7, 1989; and
FOREIGN SERVICE ACT OF 1980
* a * * * a *
SEC. 2. TABLE OF CONTENTS.?The table of contents for this Act is
as follows:
TABLE OF CONTENTS
?
CHAPTER 8?FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM
Sec. 801. Administration of the System 1212
?
Sec. 830. Qualified former wives and husbands.
Sec. 831. Retirement benefits for certain former spouses.
Sec. 832. Survivor benefits for certain former spouses.
Sec. 833. Health benefits for certain former spouses.
?
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CHAPTER 8?FOREIGN SERVICE RETIREMENT AND DISABILITY
SUBCHAPTER 1?FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM
SEC. 804. DEFINITION.?As used in this subchapter,721 unless oth-
erwise specified, the term?
(1) * "
a
(13) "surviving spouse" means the surviving wife or husband
of a participant or annuitant who(, in the case of a death in
service or marriage after retirementl was married to the par-
ticipant or annuitant for at least [one year] nine months im-
mediately preceding his or her death or is a parent of a child
born of the marriage, except that the requirement for at least 9
months of marriage shall be deemed satisfied in any case in
which the participant or annuitant dies within the applicable
9-month period, if?
(A) the death of such participant or annuitant was acci-
dental; or
(B) the surviving spouse of such individual had been pre-
viously married to the individual and subsequently di-
vorced and the aggregate time married is at least 9 months;
and
a * * a a a a
SEC. 805. CONTRIBUTIONS TO THE FUND.?(a) a * *
a a a a a *
(d)(1) Any participant credited with civilian service after July 1,
1924?
(A) for which no retirement contributions, deductions, or de-
posits have been made, or
(B) for which a refund of such contributions, deductions, or
deposits has been made which has not been redeposited.
may make a special contribution to the Fund [equal to]. Special
contributions for purposes of subparagraph (A) shall equal the fol-
lowing percentages of basic salary received for such service:
Percent of
Time of Service: baste salary
July 1, 1924, through October 15, 1960, inclusive 5
October 16, 1960, through December 31, 1969, inclusive 61/2
On and after January 1, 1970 7
Special contributions for refunds under subparagraph (B) shall
equal the amount of the refund received by the participant.
SEC. 806. COMPUTATION OF ANNUITIES.?(a) a *
(b)(1)(A) * *
(C) If a participant or former participant has a former spouse,
the participant and such former spouse may jointly elect by spous-
al agreement under section 820(b)(1) to waive a survivor annuity
under section 814(b) for that former spouse if the election is made
(i) before the end of the (12-month] 24-month period after the di-
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vorce or annulment involving that former spouse becomes final or
(ii) at the time of retirement whichever occurs first.
(c)(1) If an annuitant who was a participant dies and is survived
by a spouse or a former spouse who is the natural or adoptive
parent of a surviving child of the annuitant and by a child or chil-
dren, in addition to the annuity payable to the surviving spouse,
there shall be paid to or on behalf of each child an annuity equal
to the smaller of?
(A) $900, or
(B) $2,700 divided by the number of children.
(2) If an annuitant who was a participant dies and is not sur-
vived by a spouse or a former spouse who is the natural or adoptive
parent of a surviving child of the annuitant but by a child or chil-
dren, each surviving child shall be paid an annuity equal to the
smaller of?
(A) $1,080, or
(B) $3,240 divided by the number of children.
* * *
* * * *
(d) [If a surviving spouse dies or the annuity of a child is termi-
nated, the annuities of any remaining children shall be recomputed
and paid as though such spouse or child had not survived the par-
ticipant.] On the death of the surviving spouse or former spouse or
termination of the annuity of a child, the annuity of any other
child or children shall be recomputed and paid as though the
spouse, former spouse, or child had not survived the participant. If
the annuity to a surviving child who has not been receiving an an-
nuity is initiated or resumed, the annuities of any other children
shall be recomputed and paid from that date as though the annu-
ities to all currently eligible children in the family were then being
initiated.
(i)(1) * * *
(2) The Secretary of State shall issue regulations to provide for
the application of paragraph (1) of this subsection and of section
823 in any case in which an annuitant has a former spouse who
was married to the participant at any time during a period of
recall service and who qualifies for an annuity under [section
814(b).] this subchapter.
* * * * * * *
[(1)(1) The monthly rate of an annuity payable under this sub-
chapter to an annuitant, other than a child, shall not be less than
the smallest primary insurance amount, including any cost-of-
living increase added to that amount, authorized to be paid from
time to time under title II of the Social Security Act (42 U.S.C. 401
et seq.).
[(2) The monthly rate of an annuity payable under this subchap-
ter to a surviving child shall not be less than the smallest primary
insurance amount, including any cost-of-living increase added to
that amount, authorized to be paid from time to time under title II
of the Social Security Act (42 U.S.C. 401 et seq.) or three times such
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primary insurance amount divided by the number of surviving chil-
dren entitled to an annuity, whichever is the lesser.
[(3) This subsection does not apply to an annuitant or to a survi-
vor who is or becomes entitled to receive from the United States an
annuity or retired pay under any other civilian or military retire-
ment system, benefits under title II of the Social Security Act (42
U.S.C. 401 et seq.), a pension, veterans' compensation, or any other
periodic payment of a similar nature when the monthly rate there-
of is equal to or greater than the smallest primary insurance
amount, including any cost-of-living increase added to that amount,
authorized to be paid from time to time under title II of the Social
Security Act (42 U.S.C. 401 et seq.).
[(4) This subsection shall not apply to the extent provided in sec-
tion 814(d).3
SEC. 808. RETIREMENT FOR DISABILITY OR INCAPACITY.?(a) Any
participant who has at least 5 years of service credit toward retire-
ment under the System (excluding military and naval service) and
who becomes totally disabled or incapacitated for useful and effi-
cient service by reason of disease, illness, or injury (not due to vi-
cious habits, intemperance, or willful conduct of the participant)
shall upon his or her own application or upon order of the Secre-
tary, be retired on an annuity computed as prescribed in section
806. If the disabled or incapacitated participant has less than 20
years of service credit toward retirement under the System at the
time of retirement, his or her annuity shall be computed on the as-
sumption that the participant has had 20 years of service, except
that the additional service credit that may accrue to a participant
under this sentence shall in no case exceed the difference between
his or her age at the time of retirement and age [65.3 6'0. Howev-
er, if a participant retiring under this section is receiving retired
pay or retainer pay for military service (except that specified in
Section 8332(c) (1) or (2) of title 5 of the United States Code) or Vet-
erans' Administration pension or compensation in lieu of such re-
tired or retainer pay, the annuity of that participant shall be com-
puted under this chapter excluding extra credit authorized by this
subsection and excluding credit for military service from that com-
putation. If the amount of the annuity so computed, plus the re-
tired or retainer pay which is received, or which would be received
but for the application of the limitation in Section 5532 of title 5 of
the United States Code, or the Veterans' Administration pension or
compensation in lieu of such retired pay or retainer pay, is less
than the annuity that would be payable under this chapter in the
absence of the previous sentence, an amount equal to the differ-
ence shall be added to the annuity computed under this subchap-
ter.
(b) Before being retired under this section, the participant shall
be given a physical examination by one or more duly qualified phy-
sicians or surgeons designated by the Secretary of State to conduct
examinations. Disability or incapacity shall be determined by the
Secretary of State on the basis of the advice of such physicians or
surgeons. Unless the disability or incapacity is permanent, like ex-
aminations shall be made annually until the annuitant has at-
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tamed age [651 60. If the Secretary of State determines on the
basis of the advice of one or more duly qualified physicians or sur-
geons conducting such examinations that an annuitant has recov-
ered to the extent that he or she can return to duty, the annuitant
may apply for reinstatement or reappointment in the Service
within 1 year from the date recovery is determined. Upon applica-
tion, the Secretary shall reinstate such recovered annuitant in the
class in which the annuitant was serving at time of retirement, or
the Secretary may, taking into consideration the age, qualifica-
tions, and experience of such annuitant, and the present class of
his or her contemporaries in the Service, appoint or recommend
that the President appoint the annuitant to a higher class. Pay-
ment of the annuity shall continue until a date of 6 months after
the date of the examination showing recovery or until the date of
reinstatement or reappointment in the Service, whichever is earli-
er. Fees for examinations under this section, together with reasona-
ble traveling and other expenses incurred in order to submit to ex-
amination, shall be paid out of the Fund. If the annuitant fails to
submit to examination as required under this subsection, payment
of the annuity shall be suspended until continuance of the disabil-
ity or incapacity is satisfactorily established.
?
SEC. 809. DEATH IN SERvicE.?(a) * a
(c) If a participant who has at least 18 months of civilian service
credit toward retirement under the System dies before retirement
or other separation from the Service and is survived by a spouse,
or a former spouse who is the natural or adoptive parent of a sur-
viving child of the annuitant, and a child or children, each surviv-
ing child shall be entitled to an annuity computed in accordance
with subsections (c)(1) and (d) of section 806.
(d) If a participant who has at least 18 months of civilian service
credit toward retirement under the System dies before retirement
or other separation from the Service and is not survived by a
spouse, or a former spouse who is the natural or adoptive parent of
a surviving child of the annuitant, but by a child or children, each
surviving child shall be entitled to an annuity computed in accord-
ance with subsections (c)(2) and (d) of section 806.
(e) If, at the time of his or her death, the participant had less
than 20 years of service credit toward retirement under the
System, the annuity payable in accordance with subsection (b) shall
be computed in accordance with section 806 on the assumption he
or she has had 20 years of service, except that the additional serv-
ice credit that may accrue to a deceased participant under this sub-
section shall in no case exceed the difference between his or her
age on the date of death and age [651 60. In all cases arising
under this subsection or subsection (b), (c), (d), or (g), it shall be as-
sumed that the decreased participant was qualified for retirement
on the date of death.
SEC. 811. VOLUNTARY RETIREMENT.?Any participant who is at
least 50 years of age and has 20 years of creditable service, includ-
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ing at least 5 years of service credit toward retirement under the
System (excluding military and naval service), may on his or her
own application and with the consent of the Secretary be retired
from the Service and receive retirement benefits in accordance
with section 806. The Secretary shall withhold consent for retire-
ment under this section by any participant who has not been a
member of the Service for 5 years. Any participant who voluntarily
separates from the Service before completing 5 years in the System
and who, on the date of separation, would be eligible for an annu-
ity, based on a voluntary separation, under section 8336 or 8338 of
title 5, United States Code, if the participant had been covered
under the Civil Service Retirement System rather than subject to
this chapter while a member of the Service, may receive an annuity
under section 8336 or 8338, notwithstanding section 8333(b) of title
5, United States Code, if all contributions transferred to the Fund
under section 805(c)(1) of this Act, as well as all contributions with-
held from the participant's pay or contributed by the employer, and
deposited into the Fund during the period he or she was subject to
this chapter, including interest on these amounts, are transferred to
the Civil Service Retirement and Disability Fund effective on the
date the participant separates from the Service.
SEC. 814. FORMER SPOUSES.?(a)(1) Unless otherwise expressly pro-
vided by any spousal agreement or court order under section
820(b)(1), a former spouse of a participant or former participant is
entitled to an annuity if such former spouse was married to the par-
ticipant for at least 10 years during service of the participant which
is creditable under this chapter with at least 5 of such years occur-
Hz while the participant was a member of the Foreign Service
a
(A) if married to the participant throughout the creditable
service of the participant, equal to 50 percent of the annuity of
the participant; or
(B) if not married to the participant throughout such credita-
ble service, equal to that former spouse's pro rata share of 50
percent of such annuity.
For the purposes of this paragraph, the term "creditable service"
means service which is creditable under subchapter I or II.
* * * * * * *
(4) No spousal agreement or court order under section 820(b)(1)
involving any participant may provide for an annuity or any com-
bination of annuities under this subsection which exceeds the an-
nuity of the participant, nor may any such court order relating to
an annuity under this subsection be given effect if it is issued more
than [123 24 months after the date the divorce or annulment in-
volved becomes final.
[(d) Section 806(1) shall not apply?
[(1) to any annuity payable under subsection (a) or (b) to any
former spouse if the amount of that annuity varies by reason
of a spousal agreement or court order under section 820(b)(1),
or an election under section 806(b)(1)(B), from the amount
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which would be calculated under subsection (a)(1) or (b)(1), as
the case may be, in the absence of such spousal agreement,
court order, or election; and
[(2) to any annuity payable under subsection (c).3
SEC. 815. LUMP-SUM PAYMENTS.? [(a) Whenever a participant be-
comes separated from the Service without becoming eligible for an
annuity or a deferred annuity under this subchapter, a lump-sum
credit shall be paid to the participant (and to any former spouse of
the participant, in accordance with subsection (i)). A participant
who becomes subject to subchapter II shall be entitled to payment
of the lump-sum credit if, and to the extent that, such lump-sum
credit relates to service of a type described in clauses (i) through
(iii) of section 302(a)(1)(C) of the Federal Employees' Retirement
System Act of 19861
(a)(1) A participant is entitled to be paid a lump-sum credit if the
participant?
(A) is separated from the Service for at least 31 consecutive
days, or is transferred to a position in which the participant is
not subject to this chapter and remains in such a position for at
least 31 consecutive days;
(B) files an application with the Secretary of State for pay-
ment of the lump-sum credit;
(C) is not reemployed in a position in which the participant is
subject to this chapter at the time the participant files the ap-
plication;
(D) will not become eligible to receive an annuity under this
subchapter within 31 days after filing the application; and
(E) has notified any spouse or former spouse the participant
may have of the applicaton for payment in accordance with reg-
ulations prescribed by the Secretary of State.
Such regulations may provide for waiver of subparagraph (E) under
circumstances described in section 806(b)(1)(D).
(2) Such lump sum credit shall be paid to the participant and to
any former spouse of the participant in accordance with subsection
(i).
* * * * * * *
SEC. 826. COST-OF-LIVING ADJUSTMENTS OF ANNUMES.?(a) * * *
* * * * * * *
(c) Eligibility for an annuity increase under this section shall be
governed by the commencing date of each annuity payable from
the Fund as of the effective date of an increase except as follows:
[(1) The first increase (if any) made under this section to an
annuity which is payable from the Fund under this subchapter
to a participant or to the surviving spouse of a deceased partic-
ipant who dies in service shall be equal to the product (adjust-
ed to the nearest 1/10 of 1 percent) of?
[(a) Y6 of the applicable percent change determined
under Subsection (b) of this Section, multiplied by
[(b) the number of full months for which the annuity was
payable from the Fund under this subchapter before the
effective date of the increase (counting any portion of a
month as a full month).
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In the administration of this paragraph, the number of days of
unused sick leave to the credit of a participant or deceased partici-
pant on the effective date of the then last preceding general annu-
ity increase under this section shall be deemed to be equal to the
number of days of unused sick leave to his or her credit on the day
of separation from the Service.]
(1) The first increase (if any) made under this section to an
annuity which is payable from the Fund to a participant or to
the surviving spouse of former spouse of a deceased participant
who died in service or a deceased annuitant whose annuity was
not increased under this section, shall be equal to the product
(adjusted to the nearest 1/10 of 1 percent) of?
(A) Y12 of the applicable percent change computed under
subsection (b) of this section, multiplied by
(B) the number of months (counting any portion of a
month as a month)?
(i) for which the annuity was payable from the Fund
before the effective date of the increase, or
(ii) in the case of a surviving spouse or former spouse
of a deceased annuitant whose annuity has not been so
increased, since the annuity was first payable to the de-
ceased annuitant.
SEC. 830. QUALIFIED FORMER WIVES AND HUSBANDS. ?(a) Not-
withstanding section 4(h) of the Civil Service Retirement Spouse
Equity Act of 1984, section 827 of this Act shall apply with respect
to section 833902 section 8341(e), and section 8341(h) of title 5,
United States Code, and section 4 (except for subsection (b)) of the
Civil Service Retirement Spouse Equity Act of 1984 to the extent
that those sections apply to a qualified former wife or husband. For
the purposes of this section any reference in the Civil Service Retire-
ment Spouse Equity Act of 1984 to the effective date of that Act
shall be deemed to be a reference to the effective date of this section.
(b)(1) Payments pursunat to this section which would otherwise be
made to a participant or former participant based upon his service
shall be paid (in whole or in part) by the Secretary of State to an-
other person if and to the extent expressly provided for in the terms
of any court order or spousal agreement. Any payment under this
paragraph to a person bars recovery by any other person.
(2) Paragraph (1) shall only apply to payments made by the Secre-
tary of State under this chapter after the date of receipt by the Sec-
retary of State of written notice of such court order or spousal agree-
ment and such additional information and documentation as the
Secretary of State may prescribe.
(c) For the purposes of this section, the term "qualified former
wife or husband" means a former wife or husband of an individual
if?
(1) such individual performed at least 18 months of civilian
service creditable under this chapter; and
(2) the former wife or husband was married to such individ-
ual for at least 9 months but not more than 10 years.
(d) Regulations issued pursuant to section 827 to implement this
section shall be submitted to the Committee on Post Office and Civil
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Service and the Committee on Foreign Affairs of the House of Rep-
resentatives and the Committee on Foreign Relations of the Senate.
Such regulations shall not take effect until 60 days after the date
on which such regulations are submitted to the Congress.
SEC. 831. RETIREMENT BENEFITS FOR CERTAIN FORMER SPOUSES.
(a) Any individual who was a former spouse of a participant or
former participant on February 14, 1981, shall be entitled, to the
extent of available appropriations, and except to the extent such
former spouse is disqualified under subsection (b), to benefits?
(1) if married to the participant throughout the creditable
service of the participant, equal to 50 percent of the benefits of
the participant; or
(2) if not married to the participant throughout such credita-
ble service, equal to that former spouse's pro rata share of 50
percent of such benefits.
(b) A former spouse shall not be entitled to benefits under this sec-
tion if?
(1) the former spouse remarries before age 55; or
(2) the former spouse was not married to the participant at
least 10 years during service of the participant which is credita-
ble under this chapter with at least 5 years occurring while the
participant was a member of the Foreign Service.
(c)(1) The entitlement of a former spouse to benefits under this sec-
tion?
(A) shall commence on the later of?
(i) the day the participant upon whose service the benefits
are based becomes entitled to benefits under this chapter; or
(ii) the first day of the month in which the divorce or an-
nulment involved becomes final; and
(B) shall terminate on the earlier of?
(i) the last day of the month before the former spouse dies
or remarries before 55 years of age; or
(ii) the date the benefits of the participant terminates.
(2) Notwithstanding paragraph (1), in the case of any former
spouse of a disability annuitant?
(A) the benefits of the former spouse shall commence on the
date the participant would qualify on the basis of his or her
creditable service for benefits under this chapter (other than a
disability annuity) or the date the disability annuity begins,
whichever is later, and
(B) the amount of benefits of the former spouse shall be calcu-
lated on the basis of benefits for which the participant would
otherwise so qualify.
(3) Benefits under this section shall be treated the same as an an-
nuity under section 814(a)(7) for purposes of section 806(h) or any
comparable provision of law.
(4)(A) Benefits under this section shall not be payable unless ap-
propriate written application is provided to the Secretary, complete
with any supporting documentation which the Secretary may by reg-
ulation require, within 30 months after the effective date of this sec-
tion. The Secretary may waive the 30-month application require-
ment under this subparagraph in any case in which the Secretary
determines that the circumstances so warrant.
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(B) Upon approval of an application provided under subpara-
graph (A), the approriate benefits shall be payable to the former
spouse with respect to all periods before such approval during which
the former spouse was entitled to such benefits under this section,
but in no event shall benefits be payable under this section with re-
spect to any period before the effective date of this section.
(d) For the purposes of this section, the term "benefits" means?
(1) with respect to a participant or former participant subject
to this subchapter, the annuity of the participant or former par-
ticipant; and
(2) with respect to a participant or former participant subject
to subchapter II, the benefits of the participant or former partic-
ipant under that subchapter.
(e) Nothing in this section shall be construed to impair, reduce, or
otherwise affect the annuity or the entitlement to an annuity of a
participant or former participant under this chapter.
SEC. 832. SURVIVOR BENEFITS FOR CERTAIN FORMER SPOUSES.
(a) Any individual who was a former spouse of a participant or
former participant on February 14, 1981, shall be entitled, to the
extent of available appropriations, and except to the extent such
former spouse is disqualified under subsection (b), to a survivor an-
nuity equal to 55 percent of the greater of?
(1) the full amount of the participant's or former participant's
annuity, as computed under this chapter; or
(2) the full amount of what such annuity as so computed
would be if the participant or former participant had not with-
drawn a lump-sum portion of contributions made with respect
to such annuity.
(b) If an election has been made with respect to such former
spouse under section 2109 or 806(f), then the survivor annuity under
subsection (a) of such former spouse shall be equal to the full
amount of the participant's or former participant's annuity referred
to in subsection (a) less the amount of such election.
(c) A former spouse shall not be entitled to a survivor annuity
under this section if?
(1) the former spouse remarries before age 55; or
(2) the former spouse was not married to the participant at
least 10 years during service of the participant which is credita-
ble under this chapter with at least 5 years occurring while the
participant was a member of the Foreign Service.
(d)(1) The entitlement of a former spouse to a survivor annuity
under this section?
(A) shall commence?
(i) in the case of a former spouse of a participant or
former participant who is deceased as of the effective date
of this section, beginning on such date; and
(ii) in the case of any other former spouse, beginning on
the later of?
(I) the date that the participant or former participant
to whom the former spouse was married dies; or
(II) the effective date of this section; and
(B) shall terminate on the last day of the month before the
former spouse's death or remarriage before attaining the age 55.
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(2)(A) A survivor annuity under this section shall not be payable
unless appropriate written application is provided to the Secretary,
complete with any supporting documentation which the Secretary
may by regulation require, within 30 months after the effective date
of this section. The Secretary may waive the 30-month application
requirement under this subparagraph in any case in which the Sec-
retary determines that the circumstances so warrant.
(B) Upon approval of an application provided under subpara-
graph (A), the appropriate survivor annuity shall be payable to the
former spouse with respect to all periods before such approval
during which the former spouse was entitled to such annuity under
this section, but in no event shall a survivor annuity be payable
under this section with respect to any period before the effective date
of this section.
(e) The Secretary shall?
(1) as soon as possible, but not later than 60 days after the
effective date of this section, issue such regulations as may be
necessary to carry out this section; and
(2) to the extent practicable, and as soon as possible, inform
each individual who was a former spouse of a participant or
former participant on February 14, 1981, of any rights which
such individual may have under this section.
(f) Nothing in this section shall be construed to impair, reduce, or
otherwise affect the annuity or the entitlement to an annuity of a
participant or former participant under this chapter.
SEC. 833. HEALTH BENEFITS FOR CERTAIN FORMER SPOUSES.
(a) Except as provided in subsection (c)(1), any individual?
(1) formerly married to an employee or former employee of the
Foreign Service, whose marriage was dissolved by divorce or an-
nulment before May 7, 1985;
(2) who, at any time during the 18-month period before the
divorce or annulment became final, was covered under a health
benefits plan as a member of the family of such employee or
former employee; and
(3) who was married to such employee for not less than 10
years during periods of government service by such employee, is
eligible for coverage under a health benefits plan in accordance
with the provisions of this section.
(b)(1) Any individual eligible for coverage under subsection (a)
may enroll in a health benefits plan for self alone or for self and
family if before the expiration of the 6-month period beginning on
the effective date of this section, and in accordance with such proce-
dures as the Director of the Office of Personnel Management shall
by regulation prescribe, such individual?
(A) files an election for such enrollment; and
(B) arranges to pay currently into the Employees Health Bene-
fits Fund under section 8909 of title 5, United States Code, an
amount equal to the sum of the employee and agency contribu-
tions payable in the case of an employee enrolled under chapter
89 of such title in the same health benefits plan and with the
same level of benefits.
(2) The Secretary shall, as soon as possible, take all steps practica-
ble?
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(A) to determine the identity and current address of each
former spouse eligible for coverage under subsection (a); and
(B) to notify each such former spouse of that individual's
rights under this section.
(3) The Secretary shall waive the 6-month limitation set forth in
paragraph (1) in any case in which the Secretary determines that
the cirecumstances so warrant.
(c)(1) Any former spounse who remarries before age 55 is not eligi-
ble to make an election under subsection (b)(1).
(2) Any former spouse enrolled in a health benefits plan pursuant
to an election under subsection (b)(1) may continue the enrollment
under the conditions of eligibility which the Director of the Office
of Personnel Management shall by regulation prescribe, except that
any former spouse who remarries before age 55 shall not be eligible
for continued enrollment under this section after the end of the 31-
day period beginning on the date of remarriage.
(d) No individual may be covered by a health benefits plan under
this section during any period in which such individual is enrolled
in a health benefits plan under any other authority, nor may any
individual be covered under more than one enrollment under this
section.
(e) For purposes of this section the term "health benefits plan"
means an approved health health benefits plan under chapter 89 of
title 5, United States Code.
SUBCHAPTER II? FOREIGN SERVICE PENSION SYSTEM
SEC. 852. DEFINITIONS.?As used in this subchapter, unless other-
wise specified?
(1) '
(3) the term "lump-sum credit" means the unrefunded
amount consisting of?
(A) retirement deductions made from the basic pay of a
participant under section 856 of this chapter (or under sec-
tion 204 of the Federal Employees' Retirement Contribution
Temporary Adjustment Act of 1983);
(B) amounts deposited by a participant under section 854
to obtain credit under this System for prior civilian or mili-
tary service; and
(C) interest on the deductions and deposits which, for any
calendar year, shall be equal to the overall average yield to
the Fund during the preceding fiscal year from all obliga-
tions purchased by the Secretary of the Treasury during
such fiscal year under section 819, as determined by the
Secretary of the Treasury (compounded annually); but does
not include interest?
(i) if the service covered thereby aggregates 1 year or
less; or
(ii) for a fractional part of a month in the total serv-
ice;
[33 (4) the term "normal cost" means the entry-age normal
cost of the provisions of the System which relate to the fund,
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computed by the Secretary of State in accordance with general-
ly accepted actuarial practice and standards (using dynamic as-
sumptions) and expressed as a level percentage of aggregate
basic pay;
[4] (5) the term "participant' means a person who partici-
pates in the Foreign Service Pension System;
[5] (6) the term "pro rata share" in the case of any former
spouse of any participant or former participant means the per-
centage which is equal to the percentage that (A) the number
or years during which the former spouse was married to the
participant during the service of the participant which is cred-
itable under this chapter is of (B) the total number of years of
such service, disregarding extra credit under section 817;
[6] (7) the term "supplemental liability" means the esti-
mated excess of?
(A) the actuarial present value of all future benefits pay-
able from the Fund under this subchapter based on the
service of participants or former participants, over
(B) the sum of?
(i) the actuarial present value of (I) deductions to be
withheld from the future basic pay of participants pur-
suant to section 856 and (II) contributions for past ci-
vilian and military service;
(ii) the actuarial present value of future contribu-
tions to be made pursuant to section 857;
(iii) the Fund balance as of the date the supplemen-
tal liability is determined, to the extent that such bal-
ance is attributable?
(I) to the System, or
(II) to the contributions made under the Federal
Employees' Retirement Contribution Temporary
Adjustment Act of 1983 (5 U.S.C. 8331 note); and
(iv) any other appropriate amount, as determined by
the Secretary of State in accordance with generally ac-
cepted actuarial practices and principles; and
[7] (8) the term "System" means the Foreign Service Pen-
sion System.
SEC. 854. CREDITABLE SERVICE.?(a) * * *
(e) A participant who, while on approved leave without pay,
serves as a full-time paid employee of a Member or office of the
Congress shall continue to make contributions to the Fund based
upon the Foreign Service salary rate that would be in effect if the
participant were in a pay status. The participant's employing
Member or office in the Congress shall make a [matching] contri-
bution (from the appropriation or fund which is used for payment
of the salary of the participant) determined under section 857(a) to
the Treasury of the United States to the credit of the Fund. All pe-
riods of service for which full contributions to the Fund are made
under this subsection shall be counted as creditable service for pur-
poses of this subchapter and shall not, unless all retirement credit
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is transferred, be counted as creditable service under any other
Government retirement system.
*
*
* *
CHAPTER 9?TRAVEL, LEAVE, AND OTHER BENEFITS
* * * * * *
SEC. 904. HEALTH CARE.?(a) * * *
(b) Any such health care program may include (1) medical exami-
nations for applicants for employment, (2) medical examinations
and inoculations or vaccinations, and other preventive and remedi-
al care and services as necessary, for members of the Service and
employees of the Department who are citizens of the United States
and for members of their families, and (3) examinations necessary
in order to establish disability or incapacity of participants in the
Foreign Service Retirement and Disability System or Foreign Serv-
ice Pension System or to provide survivor benefits under chapter 8.
* * a * * *
0
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