DEPARTMENT OF STATE DRAFT BILL TO AMEND THE FOREIGN SERVICE ACT OF 1980 AND FOR OTHER PURPOSES.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000300440023-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 14
• Document Creation Date: December 21, 2016
• Document Release Date: August 28, 2008
• Sequence Number: 23
• Publication Date: January 20, 1983
• Content Type: MEMO

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EXECUTIVE OFFICE OF THE PRE-ADENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
January 20, 1983
LEGISLATIVE REFERRAL MEMORANDUM
TO: Legislative Liaison Officer
Department of Agriculture
Department of Commerce
Department of Defense
Agency for International Development
U.S. Information Agency
Office of Personnel Management
Central Intelligence Agency
Department of Education (Sec. 12(b)(B))
Department of Justice (Sec. 11(1) (B) and 11(3))
General Services Administration (Sec. 7 and 12(2)
Merit Systems Protection Board (Sec. 2)
SUBJECT: Department of State draft bill "To amend the
Foreign Service Act of 1980, and for other
purposes."
The Office of Management and Budget requests the views of
your agency on the above subject before advising on its
relationship to the program of the President, in accordance
with OMB Circular A-19.
A response to this request for your views is needed
.no later than February 22, 1983.
Questions should be referred to Jim Barie
(395-4500 ) or to Hilda Schreiber
the legislative analyst in this office.
& (3) )
( 395-4650 ) ,
Naomi R. Sweeney for
Assistant Director for
Legislative Reference.
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Dea_ :r . Speaker .
Er.closed for consideration by the Congress is a draft
till to amend the Foreign Service Act of 1580 and other
statutes affecting the Department, together with a
section-bv-section analysis and a list of amendments.
The :proposed amendments have been developed by the
Department in cooperation with ether foreign affairs
acencies. Many of these proposed amendments rr~eflect
chances dcs_cried tC Clar _fl the L'0 statute En,-:
tc improve its ad inistration, while a few are designed to
correct inequities among various groups of employees
.
affeCtEC .Y t :i e i C ,rCt.
Also included are amendments to conform provisions of
the Foreign Service Retirement and Disability System with
comparable provisions of the Civil Service Retirement and
Disability System recently amended by the Omnibus Budget
Reconciliation Act of 1982, Public Law 97-253. Some of
these conforming changes were implemented by Executive
order No. of January 1983, pursuant to
section 827 of the Foreign Service Act of 1980. The draft
bill would codify all of the permanent provisions of the
Executive order as well as make those conforming changes
not possible to make by Executive order.
vile estimate the overall cost of the draft bill to the
Department at $2.2 million annually. Section (4(5)
authorizing on-call pay in lieu of standby pay for
non-officer personnel abroad would cost the Department an
.estimated $1.2 million annually. Other amendments that
would. have a cos'.-- imp act, including amendments to chapter
9 of the Foreign Service Act of 1980 and to Title 5 of the
E.S. Code, would cost less than $.9 million annually.
Also, there would be a net savings to the Foreign Service
Retirement Fund from enactment of the retirement amendments
in section 6 of the draft bill.
The Honorable,
T omas P. C'.:eill, Jr . ,
Speaker of the House,
- of L L
House o~ Pepresentatives,
~%ashington, D. C.
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".G a :r?ciate the early coiiz -LCEra_iCn of these
G;;,Er, :_=r.tsby tae Congress. A sip, filar letter is being.
ET": to the Presi:.eflt c. the Senate.
,e have been advised by the office of t;anacEment and
Lcget that tnere is no objection from the standpoint of
the :resident's program to the enactment of the encloses
a i ` t ill
Vr
ccrdiai regards,
Sincerely,
Powell A. 1-;core
us Secretary for
iv1.G1n1` ~.
Congressional Relations
List of Amendments
2. Draft Bill
3. Section by Section Analysis
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PROPOSED AI?:.r,NDI:iI'TS TO THE
FOREIGN SERVICE ACT OF 1.380 AND RELATED LEGISLATION
SECticn
Subject
Suction of Act
"hatching" the inspector General
FSAct 208/209
and the Director General
CHAPTER 3: APPCINTIMENTS
3(l)
Five Percent Limitation on Non- FSAct 305(b)
Career I?;embers of SFS
3(2)
Exclusions from 5 Year Limit FSAct 309
on Li::,ited Appointments
CHAP TER 4: COMPENSATION
_(1)
Salaries for Chiefs of Mission FSAct 401(a)
4(2)
Eligibility for Within Grade FSAct 406(a)
Salary increases
4(3)
Provident Funds for Foreign FSAct 408
National Employees
4(4)
On-Call Pay FSAct 414
CHAPTER 6: PROMOTION AND RETENTION
3(l)
Ineligibility for Promotion
After Expiration of Time-in-Class
FSAct 601(b)
5(2)
Limited Career Extensions Below
FSAct
Highest Class in an Occupation/
607(b)(1),
Retention After Expiration of
TIC to Gain Eligibility for an
Immediate Annuity
607(d)(2)
5(3)
Retirement Benefits/Severance
FSAct 609
Pay for Individuals'Separated
from the Service after Expira-
tion of TIC or Failure to Have
A Limited Career Extension Renewed
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5(4)
Attorneys' Fees in Separation
for Case Cases
CHAP--R s.
FSAct 610(a)(2)
6(a)(1)
Definition of Former Spouse
FSAct 804(6)
6(a)(2)(A)
Repayment of Funds
Interest Rates on Contributions
to Fund
FSAct 805(d)(1)
FSAct.805(d) (3)
6(a) (2 ) (C )
Contributions for 2?:ilitary
Service
FSAct 805(e)
6(a)(2)(D)
Contributions for Military
Service
FSAct 805(f)
6(a) (C) (A)
Contributions for Civilian
Service
FSAct 806(a)
6(a)(3)(B)(1) Election of Survivor Annuity
FSAct 806(b)(1)(C)
6(a)(3)(B)(2) Missing Persons
FSAct 806(b)(1)(D)
6(a)(4)
6(a)(5),
6(a)6(A)
6(a)(6)(B)
6(a)(7)
6(a)(8)
Later Commencement Date for
Certain Annuities
Age Requirement for Minimum
Annuity and - Disabili. ty
Exaiaination
Correction of Reference
Deferred Annuities
1 ..
Voluntary RetiremenL
FSAct 807(a)
FSAct 808(a) and(b),
809(e)
FSAct 8C9(h)
FSAct 810
FSAC L 811
6(a)(9)(A)
Effective Date of Pension
FSAct 814(a)(3)
to Former Spouse
6(a)(9)(B)
Court Ordered Changes
FSAct 614(a)(4)
6(a)(10)(A)
Refunds cf Contributions
FSAct 815(a)
6(a)(10)(5)
Division of Refunds with
FSA.ct 815(j)
Spouses on Request
6(a)(11)(A)
Credit for Military Service
.FSAct BIG(a)
6(a)(11)(B)
Contributions for Prior
FSAct 816(d)
Civilian Service
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6(a) (11) (C)
Benefits to Spouses and Former
Spouses
FSAct 816(i)(1)
E(a)(11)CD)
Unhealthful Post Credit -
Application to Former Spouses
FSAct 816(i)(2)
6(a)(11)(E)
Application of "Catch - 62"
FSAct 816(j)
(5 USC 8332(j))
6(a)(12)
Unhealthful Post Credit -
Application to Former
Spouses - II
FSAct 817
6(a)(13)
Unfunded Liability Obligations
FSAct 822(a)
6(a)(14)(n)
Ccst of Living Adjustments of
uJ. es
FSAct 826(c)
?6(a)(14)(B)
Rounding Down
FSAct 826(e)
6(a)(14)(C)
Capping Annuity Adjustments
FSAct 826(g)
6(a)(15)
missing Persons
FSAct 828
6(b)
Effective Dates
--
CHAPTER 9: TRAVEL, LEAVE, A1D OTHER BENEFITS
7(1)
Storage of Household Effects.
FSAct 901(12)(B)
7 (2)
Travel for Children of
Separated Parents
FSAct 901(15)
CHAPTER 10: LABOR - MANAGEMENT RELATIONS
8(1)
Designation of Investigators
and Audi tors as (Management
Officials for Labor - Manage-
ment Purposes
FSAct 1002(12)
8(2)
Cost Sharing for Institutional
Grievances
FSAct 1014(a)(3)
CHAPTER 1(Title II): TRANSITION
Protection of Rights Following. FSAct 2104
9(1)
Mandatory Conversion from
Foreign Service to Civil Service
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9(2) Selection-Out Authority for FS7:ct 2106(e)(2)
A.I.D.
CHAPTER Y(Title II): EFFECTIVE DATE
Foreign Commercial Service FSAct 2403(c)
Limit on Noncareer SFS
Appointments
DEPARTMENT OF STATE BASIC AUTHORITY
Use of Government Vehicles/ Basic Authority,
Extra Per Diem, for Individuals 2, 11, 30, 32
Accompanying Dignitaries
TITLE 5, UNITED STATES CODE
12(1) Calculation of Lump Sum Leave 5 USC 5551
Payment Upon Separation
12(2) Home Service Transfer Allowance 5 USC 5724(a)(3)
12(3) Travel and Transportation in 5 USC 5725(a)
Conjunction with Separate
Maintenance Allowance
12(4) Advance Payment of Differ- 5 USC 5922(b)
entials
12(5) Education"Allowances at Time 5 USC 5924(4)
of Transfer, for Handicapped
Children and at Post Secondary
Educational institutions
12(6) Burial Expenses for Foreign 5 USC 5944
National Employees
M/DGP/PC
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cf section 1 of order)";
I' (C) Subsection (b) (1) (D) is repealed.
(4) Subsection 807(a), relating to payment of annui-
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ty, is amended to read as follows:
14
"(a)(1)
Except as otherwise provided in para-
15
graph (2), the annuity of a participant who has met
16
the eligibility requirements for an annuity shall
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commence on the first day of the month after--
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"(A)
separation from the Service occurs; or
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"(B)
pay ceases and the service and age
(A) Subsection (a) is amended by inserting in the
last sentence, immediately after "service" the first
time it appears, "performed prior to (effective date
(B) Subsection (b) (1) (C) is amended as follows:
(i) insert, immediately after "waive", the
words "or reduce";
(ii) strike out " (i) "; and
(iii) strike out all after "final" and
insert in lieu thereof a period;
requirements for entitlement to annuity are met.
"(2) The annuity of--
"(A) a participant who is retired and is
eligible for benefits under section 609(a) or a
participant who is retired under section 813 or
is otherwise involuntarily separated from the
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STAT
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.Section 6(a)(2)(C): CONTRIBUTIONS FOR MILITARY SERVICE
(F.S. 1ct Sec. 05(e))
This section redesignates subsections (e) and (f) of section
c0S of the Foreign Service Act of 1980 (hereafter, the Act)
and inserts a new subsection (e). The new subsection authorizes
contributions to the Fund for prior military and naval service
in conformance with changes made in CSRS by section 306(d) of
ORA as amended by sections 3(a) and (3)(e)(1) of P.L. 97-346.
Section 6(a)(2)(D): CONTRIBUTIONS FOR MILITARY SERVICE
(F.S. Act Sec. 805(f))
This amendment conforms subsection 805(f) of the Act as
redesignated by section 6(a)(2)(C) with new subsection 805(e)
of the Act. It is similar to the change made by section
-,.,6(e) of the ORA..
Section 6(a)(3)(A): CONTRIBUTIONS FOR CIVILIAN SERVICE
(F.S. Act (Sec. 806(a))
This"amend"ment--coupled with the amendment of section 816(d) of
the Act by section 6(a)(11)(B) requires that contributions to
the Fund must be made by a participant in order to obtain
credit for service performed in the future for which no
contributions were made concurrently. The old rule that an
annuity is reduced by 10 percent of the amount owing for such
prior service will apply only for service performed prior to
(effective date of section 1 of Order). This change is
similar to the change in the CSRS made by section 303(b) of ORA.
Section 6(a)(3)(B)(1): ELECTION OF SURVIVOR ANNUITY
(F.S. Act Sec. 806(b)(1)(C))
TT;is change would permit a member and former spouse to elect by
spousal agreement a reduced survivor annuity. At present they
must elect either the maximum survivor annuity or none. This
change would also permit such an agreement to be entered into
within 12 months after a divorce in the event a divorce occurs
after the member's retirement. At present, such elections
cannot be made after retirement despite the changed circumstances
and desires of the parties.
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and naval service) is eligible for a discontinued
service annuity commencing the first day of the month
following the month he or she reaches age 60, unless
the individual withdraws his or her contributions ~o
the Fund before attaining eligibility for commencement
of an annuity under this section. Alternatively, such
an individual may withdraw, pursuant to section 815,
his or her contributions to the Fund.".
(8) Section 811, relating to voluntary retirement, is
amended by adding at the end thereof the following new sen-
tence:
"The Secretary shall withhold consent for retirement
under this section by any participant who has not been
a member of the Service for 5 years except in extra-
ordinary circumstances prescribed in regulations of
the Secretary of State.".
(9) Section 814(a), relating to former spouses, is
amended as follows:
(A) In paragraph (3), strike out "on the first
day of the month" and insert in lieu thereof "or the
first day of the month following the month";
(B) In paragraph (4), immediately after "final",
insert "unless it is issued in recognition of a sub-
stantial change in the economic circumstances of eith-
er party".
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STAT
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Sec ion 6(a)(7): DEFERRED ANNUITIES (F.S. Act sec. 810)
_. _ - _-e -- c: nfc-- s section E. of the Act to the amend -._.its
section 6(a''(4) concerning she effective date of
annuities and 6(a)(0;(A) imposing certain restrictions on
t_. wit~cra.:al of cc-itri: utions by participants who resign.
Section 6(a)(8): VOLUNTARY RETIREMENT (F.S. Act Sec. 811)
This amendment would require members to complete 5 years
,.-,der the rSRDS befcre becoming eligible for voluntary
retirement at age 50 after 20 years creditable service. In
the 1980 Act, a recuirement was imposed that a member have
at least 5 years of civilian service credit in order to
retire voluntarily in order to prevent those with exten-
sive military service from entering the Service and
retiring _n less than 5 years. This amendment will impose a
ccmcarable'recuirement for those with extensive service under
CERS. The c' tinge ;;ill be made applicable only to those who
enter the Service after enactment of the Act (see effective
date section -6(b)(2)). -
Section6(a)(9)-(A): EFFECTIVE DATE OF PENSION TO FORMER
SPOUSE (F.S. Act Sec. 814(a)(3))
The first c-hange--insertion of the word "or"--is purely technical
to clarify the original intent. The change of effective date of
pension payments to a former spouse to first of month following
divorce from first of month in which divorce occurs would reduce
potential for overpayments and provide consistency with the
effective date for changes in 'survivorship reductions stated in
sections 806(i) and 814(b)(5)(A) of the Act. It would eliminate
the need to make two successive annuity recomputations when a
divorce occurs after retirement--one adjustment to provide a
pension to the former spouse and another adjustment the next
month to adjust the survivorship reduction.
Section 6(a)(9)(B): COURT ORDERED CHANGES
(F.S. Act Sec. 814(a)(4))
This amendment would permit a court, irrespective of the date of
divorce, to order a change in the percentage of a member's
annuity which is payable to a former spouse provided the court
finds that a substantial change in the economic circumstances of
at least one party has occurred. At present, court orders affec-
ting annuity payments issued more than 12 months following a divorce
are not valid. The proposed change is consistent with the philosophy
of the Act which allows a court to set aside the "pro rata" division
stated in section 814 of the Act when individual circumstances
so dictate.
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22
23
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date of the adjustment under this
section.
"(2) For the purposes of paragraph (1) of
this subsection, 'salary' means the rate of sal-
ary as payable under any provision of law, in-
cluding any provision-of law limiting the expend-
iture of appropriated funds.
"(3) This subsection shall not cause any
annuity to be reduced below the rate that is pay-
able on the date of enactment of this subsection,
but shall apply to any adjustment occuring on or
after such date under this section to any annuity
payable from the Fund, whether such annuity has a
commencing date before, on, or after such date.".
(15) Immediately after section 827, insert a new sec-
tion 828 to read as follows:
"SEC. 828. MISSING SPOUSES AND FORMER SPOUSES.--
The Secretary of State may prescribe regulations under
which a participant or former participant may make an
election to waive or reduce a survivor annuity to a
spouse or former spouse under section 806(b), and to
waive or reduce a lump sum payment to a spouse or
former spouse under section 815 without agreement of
the participant's spouse or former spouse if the
participant establishes to the satisfaction of the
Secretary of State, after having taken all reasonable
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STAT
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Section 6 (a) r 4 ) ( y) COST Or IVi:.a ~ DJUSTMENTS OF
ANNUITIES (F.S. Act Sec. 826(c))
This amendment would conform cost-cf-living adjustments in
Foreign Service annuities with comparable adjustments in
Civil Service annuities under 5 U.S.C. 8340 as amended by the
Eu^cet Acts of December 5, 1980 and August 13, 1981 (P.L. 96-
489 and P.L. 97-35, respectively). The former Act ended the
"look-back" computation and provided for proration of the
first adjustment. These changes were extended to the Foreign
Service by Executive orders 12272 and 12289 of January 16,
1981 and February 14, 1981, respectively, except it was not
possible to make the change applicable to former spouses by
Executive order. This amendment is necessary to accomplish
the latter. This amendment also changes the proration formula
to conform with the chance made by P.L. 97-35 effective
August 13, 1981 and is made effective on the same date by
section 6(o)(3).
Section 6(a)(14)(B): ROUNDING DOTA7h (F.S. Act Sec. 826(e))
This amendment provides for rounding annuities to the next
lowest dollar instead of the nearest dollar. It is comparable
to the change made by section' 304(a) of ORA.
Section 6(a)(14)(C): CAPPING ANNUITY ADJUSTMENTS
(F.S. Act Sec. 826(g)
This amendment adds a new subsection (g) to section 826 of the
Act. It provides that no Foreign Service annuity (including
survivor annuities) may be increased as the result of a cost-of-
living adjustment to an amount which exceeds the greater of (a)
the maximum rate payable for class FS-1 (currently $63,115), or
(b) the final pay (or average pay, if higher) of the member
increased by the overall annual average percentage adjustments in
the Foreign Service Schedule pay rates that have occurred between
the date the member's annuity commenced and the date of the
cost-of-living adjustment. The amend-ment is comparable to the
change made by section 309 of ORA.
Section 6(a)(15)? MISSING PERSONS (F.S. Act Sec. 828)
1 This amendment would add a new section 828 to the Act. It would
expand current section 806(b)(1)(D) to cover additional types of
elections when it is established that a spouse or former spouse
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is missing. It would also authorize payment of benefits
`Te'_~._se du to ~:.E nissi'ig erscn to the participant, if
a"iv.e, Cr tc. a spoj se or other forger spouse. Section 806(b) (1) (D)
of the Act would be repealed by section 6(a)(3)(B)(2).
Section 6(b): EFFECTIVE DATES
Section 6(b)(1) authorizes former participants who retired between
September 8, 1982 (the date ORA was enacted) and October 1, 1963
to make contributions for prior military service if it is to
their advantage. This provision is.similar to the authority
granted by setion 3(e)(2) of P.L. 97-346.
Section 6(b)(2) exempts current members from the application of
the change in voluntary retirement made by section 6(a)(8) as
is exc_ained under that section.
Section 6(b)(3) " r:ma;kes the chances in section 826(c) of the Act,
.which provides for prorating initial annuity adjustments,
retroactive to the date the formula was made applicable to CSRS.
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