PUBLIC LAW 91-201 91ST CONGRESS, H. R. 14789

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00337R000400090001-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 14
• Document Creation Date: December 16, 2016
• Document Release Date: May 24, 2005
• Sequence Number: 1
• Publication Date: February 28, 1970
• Content Type: REGULATION

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Public Law 91-201
91st Congress, H. R. 14789
February 28, 1970
n act
84 State 17
To amend title VIII of the Foreign Service Act of 1946, as amended, relating
to the Foreign Service Retirement and Disability System, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the "Foreign Service Act Amendments of 1969".
Foreign Service
Aot Amendments
of 1969.
SEC. 101. Section 804(b) of the Foreign Service Act of 1946 (22
U.S.C. 1064(b)) is amended by adding at the end thereof the follow- 74 Stat, 838.
ing new paragraphs:
"(4) `Fund balance' means the sum of- "'Fund balance."
"(A) the investments of the Fund calculated at par value; and
"(B) the cash balance of the Fund on the books of the Treasury.
"(5) `Unfunded liability' means the estimated excess of the present "Unfunded
value of all benefits payable from the Fund over the sum of- liability."
"(A) the present value of deductions to be withheld from the
future basic salary of participants and of future agency contri-
butions to be made in their behalf; plus
"(I3) the present value of Government payments to the Fund
under section 865 of this title; plus Infra.
" (C) the Fund balance as of the date the unfunded liability is
determined."
SEC. 102. (a) Section 811(a) of such Act (22 U.S.C. 1071(a)) is Contribution rate.
amended by striking out "Six and one-half" and inserting in lieu
thereof "Seven".
(b) The amendment made by subsection (a) of this section shall Effeotive date.
become effective on the first day of the first pay period beginning
after the date of enactment of this Act or after December 31, 1969,
whichever is later.
SEC. 103. Section 8524b) of such Act (22' U.S.C. 1091(b)) is 22 USC 1092.
amended by striking out `subsequent to July 1, 1924, and prior to the
effective date of the Foreign Service Act Amendments of 1960, and at
61/2" and inserting in lieu thereof "from July 1, 1924, to October 16,
1960, and at 61/2 per centum from October 17, 1960, to December 31,
1969, and at 7".
SEC. 104. (a) Part G of title VIII of such Act (22 U.S.C.
1101-1104) is amended by adding at the end thereof the following 60 Stat. 1024.
new sections :
"PAYMENTS FOR FUTURE BENEFITS
"SEC. 865. Any statute which authorizes-
"(1) new or liberalized benefits payable from the Fund,
including annuity increases other than under section 882;
"(2) extension of the benefits of the System to new groups of
emp oyees; or
"(3) increases in salary on which benefits are computed;
is deemed to authorize appropriations to the Fund to finance the
unfunded liability created by that statute, in thirty equal annual
installments with interest computed at the rate used in the then most
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Pub. Law 91-201 -2 - February 28, 1970
recent valuation of the System and with the first payment thereof
due as of the end of the fiscal year in which each new or liberalized
benefit, extension of benefits, nr increase in salary is effective.
Report to
President and
Congress.
"Sec. 886. At the end of each fiscal year, the Secretary shall notify
the Secretary of the Treasury of the amount equivalent to (1) interest
on the unfunded liability computed for that year at the interest rate
used in the then most recent valuation of the System, and (2) that
portion of disbursement for annuities for that year which the Secre-
tarryy estimates is attributable to credit allowed for military service.
Before closing*, the accounts for each fiscal year, the Secretary of the
Treasury shall credit to the Found, as a Government contribution, out
of any money in the Treasury of the United. States not otherwise
appropriated, the following percentages of such amounts: 10 per
centuu for 1971; 20 per centum for 1972; 30 per centum for 19x3;
40 per centum for 1974; 50 per eenttnn for 1975; 60 per centum for
1976; 70 per cent.um for 1977; 80 per csntum for 1948; 90 per centuni
for 1979; and 100 per centum for 1980 and for each fiscal year there-
after. The Secretary shall report to the President and to the Congress
the sums credited to the Fund under this section."
(b) The provisions of section 866 of the Foreign Service Act of
1946, as contained in the -.Amendment made by subsection (a) of this
section, shall become effective at the beginning of the fiscal year which
ends on June 30, 1971.
TITLE 11-FOREIGN SERVICE RETIREMENT BENEFITS
SEC. 201. Section 804(b) of the Foreign Service Act of 1946 (22
Ante, pi 17. U.S.C. 1064(b)) is amended by adding at the end thereof the follow-
ing new paragraph:
"Prioe index." "(6) `Price index' means the Consumer Price Index (all items-
Fnited States city average) published monthly by the Bureau of
Labor Statistics."
Average pay SEC. 202. (a) Section 821(a) of such Act (22 U.S.C. 1076(a)) is
oomputation. amended by striking out "five" each place it appears and inserting
74 stet. 839. in lieu thereof at each such palace "three .
Survivor (b) Section 821(c) of such Act. (22 U.S.C. 1076 (c) ) is amended as
annuities, follows:
(1) Paragraph (1) of such section is amended by striking out all
after "(i)" and inserting in lieu thereof "$900; or (ii) '2,700 divided
by the number of children."
(2) Paragraph (2) of such section is amended bZ striking out all
after s` (i )" and inserting in lieu thereof "$1,080; or (ii) $3,240 divided
by the number of children."
Sac. 203. (a) Section 832(b) of such Act (22 U.S.C. 1082(b)) is
amended---
(1) by striking out "five years" and inserting in lieu thereof
"ei Wen months'; and
2) by inserting immediately before the semicolon following
"section 821(a)" tine following: "and if the participant had less
than three years creditable civilian service at the time of death,
the survivor annuity shall be computed on the basis of the average
salary for the entire period of such service".
(b) Subsections (c) and (d) of such section 832 are each amended
by striking out "five years" and inserting in lieu thereof "eighteen
months".
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February 28, 1970 - 3 - Pub. Law 91-201
84 Stat, 19
SEC. 204. (a) Section 851 of such Act (22 U.S.C. 1091) is amended 74 Stat. 844.
(1) by inserting "(a)" immediately after "SEC. 851.", and (2) by
striking out "the Federal Employees' Compensation Act of Sep-
tember 7, 1916, as amended" and inserting in lieu thereof "subchapter
1 of chapter 81 of title 5, United States Code". 80 Stat. 531.
(b) Section 851 of such Act is further amended by adding at the 5 USC 8101-8150.
end thereof the following new subsection: Unused sick
"(b) In computing any annuity under this title, the total service leave credit.
of a participant who retires on an immediate annuity or who dies
leaving a survivor or survivors entitled to annuity includes, without
regard to the thirty-five-year limitation imposed by section 821(a),
the days of unused sick leave to his credit except that these days will
not be counted in determining average basic salary or annuity eligi-
bility under this title. A contribution to the Fund shall not be required
from a participant for this service credit."
SEC. 205. Section 882 of such Act (22 U.S.C. 1121) is amended to cost-of-living
read as follows:
"SEC. 882. (a) Effective the first day of the third month which 7annuit 9 Stat.11132.
begins after the date of enactment of the Foreign Service Act Amend-
ments of 1969 (hereafter in this section referred to as `this amend-
ment'), each annuity ,payable from the Fund which has a commencing
date not later than such effective date shall be increased by 1 per
centum plus the per centum rise in the price index adjusted to the
nearest one-tenth of 1 per centum, determined by the Secretary on the
basis of the increase in the price index for the month latest published
on the date of enactment of this amendment over the average price
index for the calendar year forming the basis for the last increase
under this section prior to this amendment.
"(b) Effective the first day of the third month which begins after
the price index shall have equaled a rise of at least 3 per centum for
three consecutive months over the price index for the month last
used to establish an increase, each annuity payable from the Fund
which has a commencing date not. later than such effective date shall be
increased by 1 per centum plus the per centum rise in the price index
(calculated on the highest level of the price index during the three
consecutive months) adjusted to the nearest one-tenth of 1 per centum.
"(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) Effective from its commencing date, an annuity payable from
the Fund to a surviving wife, husband, or designated beneficiary of
an annuitant shall be increased by the total per centum increase the
annuitant was receiving under this section at death.
"(2) For purposes of computing an annuity which commences
on or after November 1, 1969, to a child under section 821(c) or Ante, p. 18.
832 (c) or (d), the items $900, $1,080, $2,700, and $3,240 appearing
in section 821(c) shall be increased by the total per centum increases
allowed and in force under this section subsequent to November 1,
1969.
"(d) No increase in annuity provided by this section shall be com-
puted on any additional annuity purchased at retirement by voluntary
contributions.
"(e) The monthly installment of annuity after adjustment under
this section shall be fixed at the nearest dollar, except such installment
shall after adjustment reflect an increase of at least $1."
SEC. 206. (a) The amendments made by sections 202(a), 203, and Applicability.
204 shall become effective as of October 20, 1969. Such amendments
shall not apply to persons retired or otherwise separated prior to such
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Pub. Law 91-Z01 -4 - February 28. 1970
84 Stat. 20 _
date, and the rights of such persons and their survivors shall con-
tinue in the same manner and to the same extent as if such sections
had not been amended by this Act.
:ontrihution (b) Any lump sum payment, of contributions and interest made
-efund s, pursuant to section 832(a) of such Act because of the death of a
?epayaents. participant shall be repaid to the Fund, or arrangements satisfactory
'4 stet. 842. to the Secretary of Mato made for such repayment, before any
2 use 1082. annuity authorized by the amendments made by section 203 shall be
paid to any survivor of such participant..
(c) The amendments made by section 202(b) shall become effective
as of November 1, 1969.
(d) The annuity of each child entitled to receive an annuity under
fictions 821 (c) and 832 (c) and (d) of such Act, as amended by this
Act, shall be recomputed, effective as of November 1, 1969, in accord-
ance with section 821 of such Act as amended by this Act. No increase
allowed and in force prior to November 1, 1969, shall be included
in the. reeomputation of any such annuity, and this subsection shall
not operate to reduce any annuity.
(e) Section 882(c) (1) of such Act. as amended by this Act shall
not apply with respect, to survivor annuities in effect on the date of
enactment of this Act.
Approved February Z8, 1970.
LEGISLATIVE NT"TORf,
qOUSF REPORT No. 91-716 (Cann, on Foreign Affairs).
SENATE REPORT No. 91-701 (Corm. on Foreign Relations).
CONGRESSIONAL RECORD,
Vol. 115 (1969), Doo, 15, considered and passed House.
Vol. 116 (1970)t Feb. 17, oonsidered and passed Senate.
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91ST CONGRESS
2D SESSION
Calendar No. 694
H. R. 14789
[Report No. 91-701 ]
IN TILE SENATE OF TIIE UNITED STATES
I)i:r;i~iIrs1m. 16,1969
Read twice and referred to the Committee on Foreign Relations
FEBRUARY 10,1.970
Reported by Mr. Fur,BRTGIIT, wi_tliout amendment
is A"rw-A
To amend title VIII of the Foreign Service Act of 1946, as
amended, relating to the Foreign Service Retirement and
Disability System, and for other purposes.
1 Be it enacted, by the Senate and house of Representa-
2 tives of the United States of America in Congress assembled,
3 That this Act may be cited as the "Foreign Service Act
4 Amendments of 1969".
5 TITLE I--FOEEIUN SERVICE RETIREMENT
6 FINANCING
7 'SEC. 101. Section 804 (b) of the Foreign Service Act
8 of 1946 (22 U.S.C. 1064 (b)) is amended by adding at
9 the end thereof the following now paragraphs:
10 (4) `Fund balance' means the sum of-
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I " (A ) the ittvesttnetals of the Fttild calculated at
2 liar valise: and
(11) the cash balance of the IIIund on the books
1 of tine 't'reasury.
5 " (5) 'Unfunded liability' mean, the estituatccl excess of
the present v-alttc of all hcnclits Iaaval,le from the Fund over
the stint of---
" (.1) the present value of deductions to be withheld
from the l'tature basic sallarv of paarticil-arats and of future
a~;eileV eorat riiltatia~aas to lie made in their behalf; plus
(B) the present value of #Ioyea'tturcnt payments
to the Fund aattaler section Stir) of this title; plus
" (C) the Fund balance as of the date the un-
futtded liability is determined."
Si.