ADJUSTING THE RATES OF COMPENSATION OF THE HEADS OF EXECUTIVE DEPARTMENTS AND OF CERTAIN OTHER OFFICIALS OF THE FEDERAL GOVERNMENT AND FOR OTHER PURPOSES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100670016-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 15
• Document Creation Date: December 12, 2016
• Document Release Date: January 24, 2002
• Sequence Number: 16
• Publication Date: July 18, 1958
• Content Type: OPEN

Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
84TH CONGRESS
2d Session
Calendar No. 2687
REPORT
No. 2642
ADJUSTING THE RATES OF COMPENSATION OF THE HEADS OF
EXECUTIVE DEPARTMENTS AND OF CERTAIN OTHER OFFICIALS
OF THE FEDERAL GOVERNMENT AND FOR OTHER PURPOSES.
JULY 18 (legislative da`>, JuLY 16),1956.--Ordered to be printed
Mr. JOHNSTON of South Carolina, from the Committee on Post Office
and Civil Service, submitted the following
REPORT
The Committee on Post Office and Civil Service, to whom was
referred the bill (II. R. 7619) to adjust the rates of compensation
of the heads of the executive departments and of certain other officials
of the Federal Government, and for other purposes, report favorably
thereon with an amendment, and recommend that the bill as amended,
do pass.
AMENDMENT
The committee amendment strikes out all of the bill after the
enacting clause and substitutes therefor a new bill which appears
in the reported bill in italic type.
Title I of the bill as reported establishes new rates of basic com-
pensation for heads of executive departments and other Federal
officials.
Title II of the bill as reported relates to the organization of the
Civil Service Commission.
Title III of the bill as reported relates to the establishment and
classification of a variety of positions in the executive departments
and contains a section relating to the affairs of the Post Office De-
partment.
Title IV of the bill as reported relates to civil-service retirement.
Title V authorizes the establishment of additional scientific and
professional positions in the Department of Defense, National Security
Agency, National Advisory Committee for Aeronautics, Department
of Interior and the Department of Commerce.
Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
 Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
2 ADJUST RATES OF COMPENSATION
EXPLANATION OF BILL AS REPORTED
TITLE I--BASIC COMPENSATION FOR HEADS OF EXECUTIVE
DEPARTMENTS AND OTHER FEDERAL OFFICIALS
Section 1.01 provides that this title may be cited as "Federal Execu-
tive Pay Act of 1956".
Section 1.02 establishes the rate of $25,000 for Cabinet positions.
Section 103 (a) establishes the rate of $22,500 for a small number
of positions, the incumbents of which participate in Cabinet meetings
or have other unusual responsibility.
Section 103 (b) establishes the rate of $22,000 for each of the three
Secretaries of the armed services.
Section 104 establishes the rate of $21,000 for under secretaries and
positions of comparable responsibility.
Section 105 establishes the rate of $20,500 for the chairman of
boards and commissions and positions of comparable responsibility.
Section 106 (a) establishes the rate of $20,000 for assistant secre-
taries, members of boards and commissions and other positions of
comparable responsibility.
Section 106 (b) establishes the rate of $19,000 for two groups of
commissioners.
Section 107 establishes the rate of $17,500 for certain bureau heads,
and so forth.
Section 108 provides that, unless otherwise specifically provided,
the chairmen or heads of each independent board or commission shall
receive $500 more than the rate for the other members of such boards
or commissions.
Section 109 establishes the rate of compensation of immediate staff
assistants in the White House as follows: 2 at not to exceed $22,500;
:3 at not to exceed $21,000; 7 at not to exceed $20,000; and 3 at not
to exceed $17,500. The latter 3 positions were added by the com-
mnittee to permit the President to adjust the salaries of 2 deputy
assistants to the Deputy Assistant to the President and of 1 secretary
to the Cabinet.
Section 110 raises the ceiling on 6 top positions ill the International
Cooperation Administration to $19,000.
Section 111 raises the ceiling on salaries which may be paid to
representatives (5) and alternates (5) to UNESCO to not to exceed
$15,000.
Section 112 raises the ceiling on the, salaries of certain top positions
established under the Mutual Security Act of 1954.
Section 113 adjusts the rates of pay of grades GS-17 and 18 of the
Classification Act.
Section 114 adjusts the rates of pay of the three highest grades of
the postal field service schedule contained in Public Law 68, 84th
Congress.
Section 1.15 raises the salaries of the Chief Medical Director, the
Deputy Chief Medical Director, and eight assistant chief medical
directors in the Department of Medicine and Surgery, Veterans'
Administration, from $16,800, $15,800 and $14,800 to $17,800, $16,800
and $15,800, respectively.
Section 116 amends several acts of Congress in which, since 1947,
Congress has authorized a salary range of from $10,000 to $15,000
Approved For Release 2002/01/3
'59-00224A000100670016-5
 Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
ADJUST RATES OF COMPENSATION 3
for a limited number of professional and scientific positions in research
and development activities of specified agencies. The Civil Service
Commission must approve in advance the salary rate to be established
for each position (except those in Agriculture) and any subsequent
changes, within the limits specified by law, The new salary range is
$12,500 to $19,000. The section also repeals recently enacted law
under which the ceiling on certain of these positions was fixed at
$20,000.
Section 117 provides that any employees referred to under section
116 who are being paid less than $12,500 shall be increased to such
rate.
Section 118 increases the compensation of the positions referred. to
in section 116 that are in the Department of Agriculture to correspond
with the increases accorded similar positions in other agencies.
Section 119 provides for an adjustment in compensation of one
staff position of each Senate committee.
Section 120 raises the compensation of the Legislative Counsel of
the Senate.
Section 121 provides that the changes shall take effect at the
beginning of the first pay period commencing after June 30, 1956.
TITLE II-RELATING TO ORGANIZATION OF CIVIL SERVICE
COMMISSION
Section 201 amends the first section of the act entitled "An act to
regulate and improve the civil service of the United States," approved
January 16, 1883, as amended (5 U. S. C., sec. 632) to provide:
(1) That the term of office of each Civil Service Commissioner shall
be 6 years except that (a) the terms of the present three Commissioners
shall be 2, 4, and 6 years, respectively, and (b) any Commissioner ap-
pointed to fill a vacancy shall be appointed for the remainder of the
term, and (c) upon the expiration of his term, a Commissioner may
continue to serve until his successor is appointed and qualified.
(2) That the President shall, from time to time, designate a Chair-
man and Vice Chairman of the Commission who shall, in order, be
responsible for administration of the functions of the Civil Service
Commission. In the absence of both the Chairman and the Vice
Chairman, the third Commissioner becomes responsible, and in the
absence of all three Commissioners, the Executive Director is re-
sponsible except that at no time does the Executive Director sit or act
as a member of the Commission.
Section 202 provides that title II shall take effect on the date of
enactment.
TITLE III-MISCELLANEOUS PROVISIONS
Section 301 provides for the appointment by the President, by and
with the advice and consent of the Senate, of a General Counsel in
the Post Office Department, Department of Agriculture, Department
of Health, Education, and Welfare, Department of the Navy, Depart-
ment of the Army, and Department of the Air Force.
It is provided, further, that existing Offices of General Counsel iii
these Departments and that of Solicitor in the Post Office Department
are to be abolished upon appointment and qualification of the general
counsels provided for under this section.
Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
 Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
Section 302 authorizes the allocation of four positions in the Ad-
rniniistrative Office of the United States Courts to grade 18 of the
general schedule of the Classification Act.
Section 303 (a) allocates the positions of seven directors of com-
modity offices, Commodity Stabilization Service, Department of
Agriculture, to grade 16 of the General Schedule of the Classification
Act.
Section 303 (b) authorizes the allocation of three positions in the
Agricultural Research Service, Department of Agriculture, to grade 18
of the general schedule of the Classification Act.
Section 304 establishes the new position of Federal Highway Ad-
rain:istrator as the head of the Bureau of Public Roads in the Depart-
ment of Commerce. Appointment to the position is by the President
by and with the advice and. consent to the Senate. The salary of the
position is to be at the rate prescribed by law for assistant secretaries
of executive departments.
The section provides also for a Commissioner of Public Roads who
shall be appointed by the Secretary of Commerce, who shall perform
such duties as may be prescribed by the Federal Highway Admin-
istrator.
Section 305 provides that the difference between fourth-class mail
income and estimated fourth-class mail costs must be more than
1.0 percent before the Postmaster General' is required to request
changes in such rates before the Interstate Commerce Commission.
TITLE IV-CIVIL SERVICE RETIREMENT
Section 401 amends the Civil Service Retirement Act in its entirety.
'['he basic changes made in each section of the Retirement Act as
rewritten are as follows:
Various terms used throughout the existing law are, accompanied
either by definitions or by reference to a section which defines them.
In other instances, regulations, precedent, and administrative rulings
are relied upon for the meaning of the terms used.
Present meanings of terms are changed as follows:
Section 1 (b)
1, "Member [of Congress]" presently includes only a Senator,
Representatives in Congress, Delegate from a Territory, and the
Resident Commissioner from Puerto Rico. The bill includes the
'Vice President within this definition, so as to extend to that officer
for the first time the option -of participating in the retirement system
on the same basis as a Member of Congress.
Section 1 (d)
2. "Basic salary" is defined under present law to permit the use
of military pay in the computation of retirement benefits. The bill
would bar the use of military pay for this purpose in the case of those
hereafter entering the military service. This change is proposed
because it is deemed inappropriate to permit the rate of annuity upon
retirement from a civilian position to be based upon pay from a. source
other than civilian employment.
Approved For Release 2002/01/3
'59-00224A000100670016-5
 Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
ADJUST RATES OF COMPENSATION 5
(NOTE.---This change in no way relates to or changes the present
law and practice of crediting military service for retirement purposes.)
Section 1 (e)
3. "Average salary" for computing the annuities of all officers and
employees except Members of Congress is presently the annual average
of basic salary received during any 5 consecutive years of allowable
service the individual may choose. For Members of Congress it
presently consists of the annual average of all salary received for
service being credited which' was performed on or after August 3,
1946, up to date of separation. The bill, by definition of this term,
requires that the annuities of all officers and employees, including
Members of Congress, be based on an annual average of basic salary
received during the highest 5 consecutive years of allowable service.
This deletes the option to choose any other 5 consecutive year service
period as the average salary base and, in effect, repeals the existing
average salary concept for annuities of Members of Congress, estab-
lished originally in the Legislative Reorganization Act of 1946.
Section 1 (j)
4. "Child" is defined under present law to allow automatic survivor
annuity benefits to certain unmarried surviving children who are over
age 18, if incapable of self-support by reason of physical or mental
disability. The bill continues the present law in this regard, but adds
the further condition that such child's disabling condition must have
been incurred prior to age 18, in order to be eligible for the annuity.
Section 1 (1)
5. Under present law, lump-suns payments include retirement
deductions, sums deposited by an employee or Member and interest
on such deductions and deposits to the date of separation or to the
date. of entitlement to a deferred annuity or date of death, whichever
is earlier except that no interest accrues if the service covered thereby
aggregates 1 year or less. The bill defines "lump-sum credit" to end
the practice of crediting interest after December 31, 1956, on the
theory that to provide the protection afforded by the act as amended
by the bill, and at the same time allow interest on deposits made for
the purpose of obtaining protection amounts to dual benefits uuwar-
ranted by the circumstances. The bill makes no change in the
crediting of interest in the case of persons separated with less than
5 years of service.
SI:CTIOIQ 2. COVERAGE
Section 2 (b)
Existing law excludes from coverage "elective officers in the execu-
tive branch of the, Government." The bill, to avoid a conflict of
provisions in its extension of retirement coverage and benefits to the
Vice President, makes this specific exclusion applicable simply to "the
President." Judges of the United States (as defined in sec. 451,
title 28, U. S. C.) are not now specifically excluded. Contrary to the
view of the Commission, the judicial conference in March 1950
expressed the opinion that these judges are not subject to the act.
The bill clarifies their status by specifically excluding them.
Section 2 (e)
Under present law the President has authority to exclude executive
branch employees whose tenure is intermittent or of uncertain dura-
Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
 Approved For Release 2002/01/31: CIA-RDP59-00224A000100670016-5
Lion. This authority has been delegated to the Civil Service Com-
mission by Executive Order 10530. The bill confers this authority
directly upon the Civil Service Commission, adding similar authority
as regards District of Columbia employees where the District of
Columbia Commissioners so recommend, but in all cases subject to
the restriction that no employee shall be excluded from coverage who
has had more than 12 months' continuous service.
,Section 2 (g)
Provides for coverage under the Retirement Act of United States
commissioners who receive annual compensation of at least $3,000
for a period of at least 3 consecutive years.
Section 3 (a)
At present, all periods of separation from the service are excluded
from credit for retirement purposes. The bill would exclude only
those periods of separation which exceed 3 days. Most of the breaks
in service of 1 or 2 days are the result of misunderstanding or clerical
error where a transfer takes place over a weekend. This change is
made primarily to improve and simplify the administration of the act.
Section 3 (g)
Existing law requires at least 1 year of creditable civilian service
subject to the act within the 2-year period preceding separation, before
any title to annuity may exist based upon the separation; failure to
meet this requirement does not take away any annuity right which
may have existed based upon a previous separation. The bill con-
tinues this requirement in effect on a modified basis; it would no
longer apply in case of separation by reason of death or on account of
disability.
Section 4 (a)
Effective from the first day of the first pay period beginning after
December 31, 1956, the bill raises the rate of retirement deductions for
employees covered by the act from the present 6 to 7 percent of basic
salary. The bill also newly requires that effective from the first day
of the first pay period beginning after June 30, 1957, each department
or agency shall contribute to the retirement fund amounts equal to
the deductions currently withheld from the salaries of its employees,
including Members of Congress, subject to the act. Special provision
its made that amounts contributed by the Post Office Department
under this subsection are not to be considered as costs of providing
postal service, for the purpose of establishing postage rates. The
contribution of Members is increased from 6 to 8 percent.
,Section 4 (d)
Under present law when an employee in a position subject to another
retirement system transfers to a position subject to the Civil Service
Retirement Act, he receives credit for time in the first position whether
or not he makes an appropriate deposit to the retirement fund for
such period. of time.
The bill requires each Member or employee who had received a
refund of retirement deductions under another retirement system to
redeposit such refund with interest before any credit would be allowed
Approved For Release 2002/01/3
: CIA-RDp59-00224A000100670016-5
 Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
ADJUST RATES OF COMPENSATION 7
under the Retirement Act for service covered by the refund. Adop-
tion of this provision will prevent employees from receiving windfalls
under certain conditions.
Section 4 (e)
Under existing law no interest is required covering periods of sepa-
ration from the service in the case of deposits made by employees to
cover periods for which no deductions were made or for which a re-
fund was received. The bill provides that, interest must be paid for
periods of separation from the service as well as for periods of service.
Interest would thus be charged for all periods during which the em-
ployee enjoyed the use of the money. The retirement fund would be
earning interest on the money if it had been deposited into the fund.
SECTION 5. MANDATORY SEPARATION
Section 5 makes no changes in existing law.
Section 6 (c)
Under existing provisions relating to the retirement of employees
whose duties are primarily the investigation, apprehension, or deten-
tion of persons suspected or convicted of offenses against the criminal
laws of the United States, the Civil Service Commission is required to
give full consideration to the degree of hazard to which the employee
is subjected in the performance of his duties, rather than the general
duties of the class of the position held by the employee. Under the
bill the head of a department or agency would likewise be required to
give consideration to these factors in recommending retirement of an
employee under these provisions.
Section 6 (d)
Under present law a void exists with respect to employees with 20
or more years but less than 25 years of service who are involuntarily
separated through no fault of their own. Employees who have over
20 years of service cannot withdraw their deposits from the retirement
fund and because they have less than 25 years of service, they do not
have entitlement to an immediate annuity. The bill proposes to
alleviate this situation by providing an immediate annuity on a re-
duced basis to employees involuntarily separated who have attained
the age of 50 years and have rendered 20 years of service.
SECTION 7. DISABILITY RETIREMENT
Section 7 (a)
Under present law an employee who completes 5 years of civilian
service or a Member with 5 years' Member service may be retired due
to disability. However, under existing law an employee cannot be
retired due to disability if he is eligible for immediate retirement by
reason of age and length of service. Thus, a situation exists under
which departments may retire employees who become disabled before
reaching retirement age but cannot retire disabled employees who have
attained retirement age. The bill permits disability retirement in
any case where the disabled employee or Member meets the minunum
service requirements for annuity.
Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
 Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
8 ADJUST RATES OF COMPENSATION
Section 7 (b)
In the interest of administrative simplicity, the bill makes some
technical changes in regard to the filing of applications for retirements
due to disability.
Section 7 (d)
Under present law the annuity of a disability annuitant wino recovers
before reaching age 60 is discontinued. The bill provides that if the
earning capacity of such an annuitant is restored to a level. fairly
comparable to the current rate of pay for the position held immediately
prior to retirement, his annuity shall be discontinued even though he
has not attained complete recovery from a medical viewpoint.
'S~eclion 7 (e)
Under existing law. if a disability annuitant recovers and is unable
i,,o obtain reemployment or for any other reason does not return to
service under the act, he is considered as havin * been separated
from. service as of the date of his retirement for disability and entitled
only to a deferred annuity at age 62. The bill modifies this provision
:so that a disability annuitant who recovers or is restored to earning
capacity before he attains age 60 will be considered (except for service
credit) as having been involuntarily separated from the service upon
termination of the disability annuity. This change would permit the
ranting of immediate annuity if the employee is otherwise entitled.
Section 8 (a)
Under existing law an employee subject to the Retirement Act
who transfers to a position not within the purview of the act retains
no annuity rights; he has title to a refund only, regardless of his
length of service. The bill extends to any such transferee with 5 or
more.years of civilian service the right to a deferred annuity at age
62 if he does not draw a refund.
Section 8 (i5)
A Member of Congress now has title to deferred annuity at age. 62
if separated with at least 6 but less than 10 years of Member service;
a Member separated with 10 or more years of Member service may
receive a reduced annuity when he reaches age 60. A Member
transferred to a position not within the purview of the Retirement
Act has title to a refund only, regardless of length of service.
The bill provides that a Member separated from the, service after
completing 5 years of service may be paid a deferred annuity beginning
at age 62.
SECTION 9. COMPUTATION OF ANNUITY
Section 9 (a)
Under present law the rate of annuity for employees generally is
coriiputed on the basis of 1 % percent of average basic salary times the
number of years of service, or on the basis of 1 percent plus $25,
multiplied by the number of years of service, whichever is to the
advantage of the employee. The 1 percent plus $25 formula is favor-
able to employees whose average basic salary is not in excess of $5,000
while the 1Y percent formula is used where the average salary is in
excess of $5,000. In either case, the total annuity of an employee,
Approved For Release 2002/01/3
CIA-RD '59-00224A000100670016-5
1
 Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
ADJUST RATES OF COMPENSATION 9
irrespective of his length of service, may not exceed 80 percent of his
average basic salary.
The bill retains the present formula for employees generally in
-respect to the first 5 years of service, and raises the computation base
for the years of service in excess of 5. Under the, bill the annuity is
(a) 132 percent, or $25 plus 1 percent, of the average, salary for the
highest 5 consecutive years of all service multiplied by not more than
5 years of service, and (b) 2 percent, or $25 plus 1 percent, of the
highest 5-year average salary multiplied by all years of creditable
service in excess of 5. The maximum on basic annuity is still 80
percent of the highest 5-year average salary.
The present law contains no minimum for a total disability annuity.
The bill provides that the annuity of any employee retired due to total
disability after meeting the 5-year eligibility requirement be at least
(1) 40 percent of his average salary, or (2) the amount obtained after
increasing his total service by the period elapsing between the date of
his separation due to the disability and the date he attains the age of
60 years, whichever is the lesser. However, it is not intended that the
provision shall serve to increase the benefits of the annuitant's sur-
vivors. Section 9 (b) extends these minimum disability benefits to
congressional employees and section 9 (c) extends them to Members.
Section 9 (b)
The bill makes no changes in the annuity computation formula for
congressional employees, except that the 132 percent figure applicable
to noncongressional service would be changed to 2 percent for all such
service in excess of 5 years, in line with the change discussed under
subsection (a) applicable to employees generally.
Section 9 (c)
The annuity computation formula for a Member of Congress would
remain as at present except that (a) the 132 percent figure applicable to
.noncongressional service performed prior to a separation from Member
service would be changed to 2 percent for all years of such service in
excess of 5, in line with the change discussed under subsections (a)
and (b) for other officers and employees, and (b) the maximum basic
annuity for a Member would be changed from 75 percent of final salary
as a Member, to 80 percent.
Section 9 (d)
Under existing law an employee retiring prior to attainment of age
60 is required to take a reduction of one-fourth of 1 percent in his
earned annuity for each full month lie is under age 60 at the date of
his separation.
The bill would lower the reduction formula to one-twelfth of t per-
cent per month for each month up to 60 and one-sixth of 1 percent
per month for each month in excess of 60 the employee is under the
age of 60 at the time of his retirement.
Section 9 (f)
Under existing law an employee retiring on an immediate annuity
with at least 15 years of service may elect a joint and survivorship
annuity in favor of the surviving wife or husband. The bill changes
the service prerequisite to a joint and survivorship election by an
employee from 15 years to 5.
Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
 Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
.to ADJUST RATES OF COMPENSATION
At the present time only an employee retiring on immediate annuity
can elect a joint and survivorship annuity. The bill extends this
right to employees receiving deferred annuities. It was felt that
since employees entitled to deferred annuities contributed to the,
retirement fund at the same rate as other annuitants, and since they
receive annuities computed in precisely the same manner as other
annuitants, they should be entitled to provide the same protection to
their survivors as other annuitants.
Under present law when an annuitant makes a joint and survivor-
ship election he is required to take a reduction of 5 percent on the
first $1,500 of his annuity and 10 percent on all in excess thereof. The
bill reduces the reduction on the first $2,400 of the annuity to 2'z
percent but leaves the 10-percent penalty on any amount in excess
thereof.
The bill also permits an employee at the time of his retirement to
designate the portion of his earned annuity upon the basis of which.
his survivor's annuity is to be computed.
,'section 9 (g)
Under existing law the election of a joint and survivorship annuity
by an unmarried annuitant carries with it a reduction of 10 percent
plus 5 percent for each full 5 years the survivor is younger than the
retiring employee except that the reduction for the 5-year span be-
tween 25 and 30 years is 10 percent. The bill changes this reduction
for a joint and survivorship annuity to 10 percent plus 5 percent for
each full 5 years the survivor is younger than the retiring employee
with a maximum reduction of 40 percent.
,'S'ection 9 (i)
The bill retains the existing special annuity formula of 2 percent of
high 5-year average salary times years of service for early optional
retirement of investigative employees, but changes the maximum
annuity provision under it from a limitation of 30 years on allowable
service, to the 80 percent of high 5-year average salary maximum
applicable to employees generally.
Section 10 (a) (1)
Under existing law, upon the death of any annuitant who elected
the joint and survivorship annuity the widow or widower designated
at the time of the annuitant's retirement is entitled to an annuity
equal to one-half of the annuitant's earned annuity beginning on the
first day of the month following the survivor's attainment of age 50,
or on the first day of the month in which the annuitant's death occurs
if the survivor is then 50 years of age or over, and is payable until
the survivor remarries or dies.
Also, under existing law, upon the death of any male annuitant
who- was eligible to elect a joint and survivorship annuity and who is
survived by a widow and children, an automatic immediate annuity is
paid to the widow-regardless of whether or not the annuitant made
such an election. This automatic annuity-to widows with depend-
ent children--terminates when the widow reaches age 50, remarries,
or dies, whichever occurs first. If the annuity is terminated by
virtue of the widow having reached age 50, she receives no further
Approved For Release 2002/01/3
'59-00224A000100670016-5
 Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
ADJUST RATES OF COMPENSATION 11
benefits unless the annuitant elected a joint and survivorship annuity
at the time of his retirement.
The bill provides an automatic immediate survivor's annuity to
the surviving wife or husband of every employee or Member of Con-
gress who dies after having retired under any provision of the bill, if
such surviving spouse was married to the annuitant at time of his or
her retirement. The survivor's annuity is one-half of so much of the
deceased annuitant's earned annuity as was designated by the annui-
tant for such purpose at the time of his retirement.
Section 10 (a) (2)
This subsection establishes the first of the month in which annui-
tant dies as the commencing date of the immediate survivor's annuity.
It continues in effect the provision that the annuity shall terminate
upon the survivor's death or remarriage.
Section 10 (c)
Under existing law, an automatic annuity, equal to 50 percent of
the employee's or Member's earned annuity, is paid to the widow of
an employee, or to the widow or widower of a Member, who dies,
after 5 years of civilian service.
The bill continues without change the automatic annuity to
widows of both employees and Members and extends similar benefits
to widowers of employees but requires that in either the case of an
employee or Member the surviving widower must be a "dependent
widower" to be eligible for such annuity. Annuities to spouses under
this provision terminate upon death or remarriage of the widow or
widower, or upon the widower's becoming capable of self-support.
Section 10 (d)
Automatic annuities are also paid under existing law to surviving
dependent children upon the death of (1) an employee or Member with
5 or more years of service, (2) an employee annuitant retired under any
provision except a deferred annuity, or (3) a Member retired for any
reason. Except in the case of a female Member, no automatic annuity
is paid to children of a female employee if a widower survives. If both
an entitled spouse and child or children survive, each child is entitled
to an annuity which is (1) 25 percent of the annuitant's regular earned
annuity, (2) $900 divided by the number of surviving children, or (3)
$360, whichever is least. If no entitled spouse survives, the annuity
for each child is equal to (1) 50 percent of the annuitant's earned
annuity, (2) $1,200 divided by the number of surviving children, or
(3) $480, whichever is least. A child's annuity begins on the first
day of the month after the employee or Member (or annuitant) dies
and terminates upon the child's death, marriage, or attainment of age
18 (unless the child is incapable of self-support, in which event his
becoming capable of self-support terminates the benefit). Upon the
death of the widow or entitled widower, or the termination of annuity
to a child, the annuities of the remaining child (or children) are
recomputed.
The bill provides, in addition to benefits under existing law, for the
payment of children's annuities where there is a surviving widower,
provided such widower was dependent upon the employee or annuitant
for his support.
Children's benefits are raised by the bill. Where a widow or de-
pendent widower survives, each child receives an annuity equal to the
Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
 Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
12 ADJUST RATES OF COMPENSATION
smallest of (1) 40 percent of the employee's or Member's average
salary divided by the number of children, (2) $600, or (3) $1,800
divided by the number of children. Where the employee or Member
of Congress leaves no widow, or widower, each child's annuity is equal
to the smallest of (1) 50 percent of the employee's or Member's
average salary divided by the number of children, (2) $720, or
(3) $2,160 divided by the number of children.
)Section 11 (a)
The bill authorizes refund of the lump-surn credit to any employee
separated with less than 20 years of civilian service, whereas present
law authorizes such refund of the retirement account only provided
the employee is not eligible for optional retirement (age 62 or over
with 15 or more years of service) at time of separation.
Members of Congress now have the privilege of making voluntary
contributions to purchase additional annuity. However, the amount
of such additional annuity in each case is determined by applying an
actuarial factor based upon the retiring Member's age and sex.
The bill grants Members of Congress the privilege of making vol-
untary contributions to purchase additional annuity at the rate of $7
per each $100 so credited, with the $7 increased by 20 cents for each
full year the Member is over age 55 at date of retirement, thereby
placing them in the same position in this respect as employees gen-
erally. No other change in existing law is made by section 12.
Section 13 (a)
Present law provides that no annuitant may be reappointed to any
Government position after attaining age 60 unless the appointing
authority determines that he has special qualifications.
Section 13 (a) provides that annuitants may be reemployed i i any
position for which they may be qualified and serve at the will of the
appointing officer.
Section 13 (b)
The bill provides that if an annuitant is reemployed in an appointive
or elective position subject to the Retirement Act, annuity payments
shall be discontinued during such employment and deductions for the
retirement fund withheld from his salary. It provides further that
if the former annuitant performs actual full-time service for it period
of at least 1 year, his right to future annuities shall be redetermined.
If the annuitant does not perform actual full-time service for at least
it year his annuity payments are resumed without change and the
deductions made from his salary for the retirement fund-during such
period are refunded to him.
Section 13 (c)
Tinder present law if a retired Member is reemployed other than as
a Member, his annuity is continued in addition to his salary. How-
Approved For Release 2002/01/31 : CIA-RD'59-00224A000100670016-5
 Approved For ReAehOROARRI :c~jP,-P0224A000100~JD016-5
ever, if he resumes service as a Member, his annuity is suspended..
Upon subsequent retirement, his annuity is resumed in the amount
or, if he contributed to the retirement fund during the additional
service, the additional service is considered in recomputing his annuity
rights.
The bill suspends a former member's annuity during any period
of reemployment in a position subject to the act.
The bill makes no change in this section, which relates to the
mechanics of paying benefits under the act.
Section 15 (b)
Under present law the Commission in its discretion may waive
recovery of any overpayment of annuity when the recipient acted in
good faith.
The bill retains the provision and extends the right of the Commis-
sion to waive recovery from a recipient to lump-sum payments.
Recovery of lump suns can be just as inequitable as recovery of
annuity payments.
SECTION 16. ADMINISTRATION
The bill makes no change in the existing general administrative
provisions.
SECTION 17. CIVIL SERVICE RETIREMENT AND DISABILITY FUND
Section 17 (d)
Under present law currently available portions of the retirement
fund as are not immediately required for payments from the fund are
invested by the Secretary of the Treasury in. securities of the United
States. The law does not fix the interest rate for such securities.
Most of the fund is invested at an interest rate of 3 percent.
The bill continues the authority of the Secretary of the Treasury to
invest in securities of the United States, and provides for the issuance
for purchase by the fund of public debt obligations bearing interest at
the average rate (rounded to the nearest Ys of 1 percent) borne by other
public debt obligations having maturities at least 5 years after date. of
issue. Such obligations would be issued only if the Secretary found
that purchase in the market of other Government obligations is not
in the public interest.
Section 18 provides that the amended act may be cited as the " Civil
Service Retirement Act."
Section 402 of the bill abolishes the special retirement system for
civilian teachers at the Naval Academy and covers them under the
Civil Service Retirement Act.
Section 403 of the bill carries out the purpose of S. 59 passed by the
Senate July 19, 1955. 'I'lie effect of section 3 is to make effective as
Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
 Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5
14 ADJUST RATES OF COMPENSATION
of April 1, 1948, certain benefits effective September 30, 1949. The
Civil Service Retirement Act. as amended effective April 1, 1948, au-
thorizes a husband, at the time of his retirement, to elect a survivorship
annuity payable to his widow equal to 50 percent of the annuity other-
wise payable to him. To obtain the benefit of this provision, the
husband was required to take a reduction of 10 percent in the annuity
payable to him. The act of September 30, _ 1949, reduced the reduc-
tion on the first $1,500 of the husband's annuity from .10 to 5 percent
for those who retired after such date.
Section 404 of the bill provides that the rights of persons separated
prior to the effective date of this act, shall continue in the same manner
and to the same extent as if the act had not been enacted.
Section 405 of the bill. provides that the current Vice President may
elect retirement coverage on January 1, 1957, or within 15 days there-
after. In case of such election, his past service as Vice President shall
be considered as covered service for the purpose of fulfilling the annuity
title requirement of at least 1 year of covered service within the 2-year
period preceding separation.
Section 406 of the bill declares it is the policy of Congress to cor-
respondingly adjust the annuities of retired employees in the future,
whenever any general adjustment is made in the salaries of Govern-
ment, employees. This would not operate to automatically raise or
lower annuities with salary changes, but Congress must act specifically
in each instance.
Section 407 of the bill amends the act of September 1, 1954 (Public
Law 769, 83d Cong.), which prohibits payment of annuity or retired
pay based on the service of individuals convicted of certain enumerated
crimes against the United States or found responsible for certain other
improper acts or omissions. The amendment extends this act to
prohibit payment of annuity or retired pay in any case where the
individual has been indicted for any of the enumerated Federal crimes
And. willfully, with knowledge of the indictment, remains outside the
United States, its Territories and possessions, in excess of a year. The
prohibition on benefit payments would be effective at the end of the
1-year period and would remain in force until entry of a noll.e: prose-
qui to the entire indictment, or until the individual returns and there-
After the indictment is dismissed or the accused is found not guilty
under it.
Section 4:08 of the bill establishes January 1, 1957, as the effective
date of the act.
Section 409 provides that the bill may be cited by short title as the
"Civil Service Retirement Act Amendments of 1956."
Section 501 amends subsections (a) and (b) of the first section of
Public Law 313, 80th Congress, and adds two additional subsections,
So as to-
1. Increase from 45 to 275 the number of scientific positions
available to the Department of Defense; and provide 50 such
positions for the National Security Agency. Authority for estab-
lishing and fixing the compensation for all these positions (subject
to approval by the Civil Service Commission) would be vested
in the Secretary of Defense, contrary to present law which vests
Approved For Release 2002/01/301 : CIA-RD'59-00224A000100670016-5
 Approved For Rele sJ QO ~~ y31, % Ig0224A0001006TgO16-5
such authority in the Secretary of Defense for 6 positions, and in
the Secretary of each military department for 13 positions.
2. Increase from 10 to 60 the number of scientific and profes-
sional positions available to the National Advisory Committee
for Aeronautics.
3. Provide 10 scientific and professional positions for the De-
partment of the Interior.
4. Provide 35 scientific and professional positions for the
Department of Commerce.
5. Protect the incumbents and the compensation for positions
established previously by the Secretaries of Army, Navy, and
Air Force, until action is taken by the Secretary of Defense
under the new authority.
6. Require annual reports to the Congress from agencies es-
tablishing scientific and professional positions, showing-
(a) Number of positions established or in existence during
the year;
(b) Information with respect to the incumbents of these
positions and their duties; and
(c) Such other information as deemed appropriate, or
requested by Congress.
CHANGES IN EXISTING LAW
Compliance with subsection 4 of rule XXIX of the Standing Rules
of the Senate has been omitted inasmuch as it is necessary, in the opin-
ion of the committee, to dispense with the requirements of such
subsection to expedite the business of the Senate.
O
Approved For Release 2002/01/31 : CIA-RDP59-00224A000100670016-5