COUNTING OF CERTAIN FEDERAL EMPLOYMENT TOWARD RETIREMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00337R000400060003-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 19, 2016
• Document Release Date: April 11, 2005
• Sequence Number: 3
• Publication Date: December 10, 1970
• Content Type: REPORT

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91ST CONGRESS HOUSE OF REPRESENTATIVES REPORT
2d Session j No. 91-1722
COUNTING OF CERTAIN FEDERAL EMPLOYMENT
TOWARD RETIREMENT
DECEMBER 10, 1970.-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. MILLS, from the Committee on Ways and Means,
submitted the following
REPORT
The Committee on Ways and Means, to whom was referred the
bill (S. 2984) to permit certain Federal employment to be counted.
toward retirement, having considered the same, report favorably
thereon without amendment and recommend that the bill do pass.
PURPOSE
The purpose of S. 2984 is to accord equal treatment in crediting
Federal service for civil service retirement purposes to certain Federal
employees. Such. equal treatment is now precluded by section 115 of
the Social Security Amendments of 1954, which section S. 2984
would repeal.
GENERAL STATEMENT
Under existing law, some temporary, part-time and intermittent
employment by the Federal Government is covered by the social
security program rather than by the civil service retirement program
or other retirement programs for Federal employees. Such Federal
civilian employment is generally creditable for civil service retirement
purposes if the employee is later employed in a position subject to
the civil service retirement system. One exception to this rule exists
as a result of the enactment of section 115 of the Social Security
Amendments of 1954.
By the terms of section 115, Federal employees who acquired social
security coverage under the 1954 amendments may never receive
credit under a retirement system for Federal employees for this serv-
ice covered by social security. The employees so affected are primarily
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those who receive temporary appointtuettt, in the field service of the
Post Office Deportment, but section 115 applies also to it small number
of tentporttry em it tloIces in tilt' Federal Deposit Ltstirance (orporn-
tion, in it Federtt land bunk or bunk for cooperatives, census-taking
employees of the Census Bureau, and to employees paid on it contract
or fee bntiis, employees receiving nominal pay of $12 a year or less,
!till pitttent employees in Federal hospitals.
'l'ilt, temporary ap tointtncnts of minty of these employees, es-
peciuliy those of the Post Office Department, ripen into perntatteut
ttttpointmneuts, at which tithe they acquire coverage under the civil
service retirement system and lose their social security coverttgo ac-
lnired winder the 1954 amendments. When they retire under the civil
service retirement systettt they cannot receive credit for their tempo-
ran entploy tnent as do persons in other tetttporary Federal positions.
An employee who lilts service which becomes creditable for retire-
nu'nt purposes as it result of this bill may. if he wishes, make a deposit
to 11w civil service retirement fund equal to retirement deductions for
the period, plus interest. If he failed to tnalie this deposit, his retire-
nneut- annuity would be reduced by 10 percent of (lit, amount owed
its deposit.
There are about 345,000 pertututeut full-thin' employees of the Post
Office Department who have approximately 2.5 years each of tctnpo-
rativ etnldoi nienl which would become creditable toward civil service
retirement uOun enactment of S. 29X4. The number of noupostal
etuplovecs with teinporttry employment excluded from retirement
credit by section 115 cannot be ascertained but it is believed to be
relatively very small.
I'Attsed'on the 345,000 figure, the Civil Service Commission estimate:
lion the unfunded liability of the civil service retirement and dis-
ability fund would be increased by $402 million. Under the provisions
of S U.S.('. ?^{344, portaining to the civil service retirement and dis-
ability ftmd, enactment of S. 2934 is deemed to tuttiorize appropri-
ottious to the hind to finance this increase in unfunded liability plus
interest ill 30 ocltutl annual installtucttts, with the first instttilntent
beincg due June 30, 1971. Each irnsttill tnent would amount to an
e tintatrd $21.1 million.
~. 2984 would become effective upon enactment and apply to
employees and fainter employees who thereafter retire or (lie. Alt
:already retirttd employee or survivor nnnttitttnt could request his
retirement svstertt to allow credit for temporary service excluded
by section 115. hlowever, the increase in annuity benefit resulting
from credit of the tetnporat,y service would be lntyttble only front the
first, of tilt, month following enactment.
'Phis bill is approved by both the U.S. Civil Service. Cormnis,ittn
auul (lit. l)epttrttnent of health, Ednentiou, and Welfare. '""our
committee is wtnaninunts in recotntuending enactment- of S. 2984.
CHANGES IN EXISTING- LAW MADE. BY THE BILL, As REPORTED
I it compliance wt it It clause 3 of rule X I I I of the. Rifles of the House
of Representative:;, changes in existing law made by the bill, as re-
ported, are shown its follows (existing laws proposed to be omitted is
enclosed in black brackets):
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SECTION 115 OF THE SOCIAL SECURITY AMENDMENTS OF 1954
[COVERED EMPLOYMENT NOT COUNTED UNDER OTHER
FEDERAL RETIREMENT SYSTEMS
[SEC. 115. Notwithstanding any other provision of law, in deter-
mining eligibility for or the amount of any benefit (other than a benefit
under title II of the Social Security Act or under the Railroad Retire-
ment Act of 1937, as amended) render any retirement system. estab-
lished by the United States or any instrumentality thereof, there shall
not be taken into account any service which, by reason of the amend-
merits to section 210 (a) of the Social Security Act made by section
101 (c) of this act, constitutes employment as defined in such section
210 (a).]
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