INSURANCE COVERAGE FOR U.S. NATIONALS EMPLOYED BY FEDERAL GOVERNMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000500150002-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 9, 2016
• Document Release Date: August 18, 2001
• Sequence Number: 2
• Publication Date: May 17, 1973
• Content Type: REPORT

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18t Session j No. 93-214
INSURANCE COVERAGE FOR U.S. NATIONALS
EMPLOYED BY FEDERAL GOVERNMENT
MAY 17, 1973.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. DuLsTir, from the Committee on Post Office and Civil Service,
submitted the following
REPORT
The Committee on Post Office and Civil Service, to tivhom was re
ferred the bill (ILR. 3801) to extend civil service Federal employees
group life insurance and Federal employees health benefits coverage
to U.S. nationals employed by the Federal Government, having con-
sidered the same, report favorably thereon without amendment and
recommend that the bill do pass.
This legislation will extend to U.S. nationals, who are Federal em-
ployees, the rights and benefits of the Federal employees' group life
insurance and health benefits programs.
This legislation, which is based on an official recommendation of the,
U.S. Civil Service Commission, was ordered reported by unanimous
voice vote of the committee.
As originally enacted, the pertinent provisions of the Federal Em-
ployee's Group Life Insurance Act and the Federal Employees' Health
Benefits Act (since codified as sections 8701 (a) (B) and 8901 (1) (ii) of
title 5, United States Code, respectively, excluded noncitizen em-
ployees of the Federal Government whose permanent duty stations
were outside the United States.
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These provisions were amended oy Public Law 91-418, effective
September 25, 1970, to extend such coverage to previously excluded
noncitizens employed in the Canal Zone. That amendment, however,
had no application to noncitizens or U.S. nationals employed by the
Government in other worldwide areas.
Under 8 United States Code 1408, a person born in an outlying
possession of the United States is a national, but not a citizen of the
United Sta-;es. Thus these noncitizens are barred from life insurance
end health benefits coverage, except where federally employed in the
United States or in the Panama Canal Zone.
It is estimated that there are approximately 200 U.S. nationals
employed outside the United States by various agencies of the Gov-
ernment. Irc the judgment of the committee, these nationals and those
to be employed in the future at whatever duty station should be ac-
corded the same treatment as the Congress extended in 1970 to non-
citizen employees in the Panama Canal Zone.
Section (a) of the bill amends sect aon 8701 (a) (B) of title 5, United
States Code. relating to employees who are excluded from coverage
under the life insurance provisions of chapter 87 of title 5. The effect
of the arne_ndnrent is to extend the life insurance benefits of chapter
87 to U.S. nationals who are Federal employees.
Section (b) of the bill amends section 8901(1) (ii) of title 5, United
States Code, to extend the health insurance benefits of chapter 89 of
title 5 to U.S. nationals who are Federal employees.
Under the existing provisions of law, a U.S. national who is em-
ployed by the 9'ederal Government is not eligible for life insurance
benefits (chapter 87) or health insurance benefits (chapter 89) if his
permanent duty station is located outside the United States and the
Panama Canal Zone. The amendments made by this legislation will
extend such benefits to 1 .5. nationals regardless ol` the locations of
their permanent duty stations. An employee who is neither a citizen
nor a national of the United ;States will continue to be ineligible for
life acrd health insurance benefits under title 5 if employed outside the
t'nited States and the Panama Canal Zone.
The amendments made by this bill are effective on the date of enact-
ment. 1lowever, the actual dates on which coverage is extended to the
Concerned employees will be fixed in accordance with instructions to
he issued by the Civil Service Commission.
The inclusion of these e.cnployees under the life insurance and health
;renefits programs will entail additional annual Government costs of
approximately $300 per person for? a total not in. excess of $60,000
for each of the next 5 fiscal years.
This legislation is based upon an official recommendation by the
Chairman of the (7.S. Civil Service Commission. The official recom-
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mendation and subsequent correspondence from the Civil Service Com-
mission are set forth below.
U.S. CIVIL SERVICE CcunrIssxo.N,
Wash.ngton, D.C., January 18,1973.
Hon. CARL ALBERT,
Speaker of the House of Representatives.
DEAR MR. SPEAKER: The Commission submits for the consideration
of the Congress, and recommends favorable action on, the attached
legislative proposal which provides that United States nationals who
are Federal. employees shall be extended the same rights and benefits
as are presently provided United States citizens employed by the Fed-
ei_mal Government.
Section 1408 of title 8, United States Code, defines nationals, in per-
tinent part, as follows: "Unless otherwise provided in section 1401 of
this title, the following shall be, nationals, but not citizens of the
TTnited States at birth: (1) a person born in an outlying possession of
the United States on or after the date of formal acquisition of such
possession * * *."
As originally enacted, provisions in the Federal Employees' Group
Life Insurance Act and the Federal Employees Health Benefits Act
(now codified as 5 U.S.C. 8701(a) (B) and 5 U.S.C. 8901(1) (ii),
respectively) excluded from their coverage U.S. nationals by barring
coverage of noncitizen employees whose permanent duty station is
outside the United States. The question of whether as a matter of
policy U.S. nationals should be so excluded Caine into sharp focus in
1970 when it was found that the National Oceanic and Atmospheric
Xdministration (NOAA) at Pago Pago had permitted six American
Samoan employees to participate in these programs. On April. 27, 11)70,
the Civil Service Commission issued a bulletin (see enclosed copy of
Federal Personnel Manual Bulletin No. 300-26) which determined
that U.S. nationals employed by Federal agencies outside the United
States are not entitled to life insurance and health benefits. As a result,
these six American Samoans had their life insurance and health bene-
fits coverage terminated.
The draft legislation would have the effect of extending coverage to
these six American Samoan employees as well. as an estimated 2,000
U.S. nationals employed by the Federal Government at permanent
duty stations outside the United States. Currently American Samoa
and Swains Island are the only areas under U.S. jurisdiction whose
citizens are nationals rather than citizens of the United States. To the
best of our knowledge, the Federal employees affected by this legisla-
tion would. all be American Samoans mostly employed in American
Samoa. However, we believe the draft legislation amending the laws
should be general and should include those U.S. nationals now eni-
ployed or someday to be employed at another duty station.
Section 3 of Public Law 91-41.8, effective September 25, 1970, ex-
tended coverage under the Federal Employees' Group Life Insurance
and Federal Employees Health Benefits laws to formerly excluded
noncitizen employees whose permanent duty station is in the Panama
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Canal Gone. It would appear that U.S. nationals should be entitled to
the same benefits.
Assuming the draft bill is enacted, the additional annual cost to
extend life, insurance and health benefits to these employees would be
.Lphroxirnately $604,000.
The (Mice of Management and Budget advises that there is no ob-
jection from the standpoint of the Administration's program to the
submission of this draft bill to the Con(rress.
A similar letter is being serit to the 'resident of the Senate.
By direction of the Commission:
Sincerely yours,
ROBERT BAMPTON,
Chaiina'n.
Bulletin No. 300-26.
WASHINGTON, D.C., April 27, 1970.
Subject: Applicability of Various Statutes to U.S. Nationals.
Heads o l' _EIgene es and Independent Establishments:
This hitletin is to alert you to the exclusion of United States na-
tionals (referred to hereinafttllr as nations) from certain Federal per-
sonnel statutes.
Section 1408 of title 8,United States Code, defines, nationals, in signi-
ficant part, as follows: "Imiess otherwise provided in section 1401 of
this title, the following shall be nationals, but not, citizens, of the
I ; nited States at birth : ~(1) A person born in an outlying possession
of the United States on or after' the date of formal acquisition of such
possession x: '` "`.
I eider tie above definition, American Samoans and Swains Island-
ers are. ;is a, lreneral rule, nationals and not citizens of the United
States.
By reason of the fact that some statutes exclude from their coverage
norrcitizem; whose permtment duty station is outside a State or the
I)ista'ic't of Columbia, nationals are excluded under those statutes.
Specifically, the following; statutes have language that excludes na-
i lends from coverage:
S U.S.C. 51.02(c) (11)-classification of positions.
TT,S.C. 8701 (a) (13)--life insurance.
I T.5.(,. 8901(1) (ii )-health insurance.
Some statutes and regulations also exclude "aliens". 5 U.S.C.
630l (~?) (vii) -andI CFR S31.201 (a) (7) ; however, as the law (8 U.S.C.
1 101(a) (3) ) defines till alien to mean "any person not a citizen or na-
1;o-wcl of tiro l'nited States" we do not consider that the reference to or
exclusion of an alien includes a national. (Emphasis added.)
Wit b ref>pect to 5 CUR 338.101 (, 338.101 of the civil service regula-
tions, "Citizenship Requirements")., the nationals to whom Ave refer
owe perm?Irent allegiance to the United States and are. accordingly,
eligible for entry into the competitive service.
It has come to our attention that some departments and agencies
are treating these nationals as citizens for the purpose of the statutes
eited ;above. Frrtnre coverages of the, e nationals should not be extended
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when inconsistent with the law ; and any coverages improperly ex-
tended in the past should be promptly corrected.
NICHOLAS J. OGANOVIC,
Executive Director.
U.S. CIVIL SERVICE COMMISSION,
BUREAU OF RETIREMENT, INSURANCE, AND
OCCUPATIONAL HEALTH,
Tashington, D.C., April 25, 1973.
Hon. TIIADDEUS J. DuLSKI,
Chairman, Commmittee on Post O ffcce and Civil Service,: House of
Representatives, Washington, D.C.
DEAR MR. CIIAIRMAN : This is in further reply to your letter of
April 12 concerning the Commission's legislative proposal, submit-
ted to Congress on January 18, 1973, and currently pending before
your committee as H.R. 3801, to extend civil service Federal em-
ployees group life insurance and Federal employees health benefits
coverage to U.S. nationals employed by the Federal Government.
On further discussion with the Department of the Interior, it has
become apparent that due to a misunderstanding, the Commission was
incorrectly advised as to the number of U.S. nationals employed by
the Federal Government at permanent duty stations outside the United
States. The 2,000 figure quoted in the Commission's previous letter of
transmittal is believed to have included federally employed natives
of the Pacific trust territories administered by the United States under
the United Nations trusteeship system. That figure is considerably
larger than the actual number of employees who would be affected
by H.R. 3801 since natives of the trust territories are aliens rather
than U.S. nationals. However, the exact number of nationals is un-
known.
While the Commission compiles various statistical. reports of Fed-
eral. civilian employees by geographic location, these do not distin-
guish the relatively small number of U.S. nationals from other
noncitizen employees. Knowledgeable sources in our San Francisco
regional office report that the number of nationals federally employed
outside the United States is not in excess of 200. Most of these na-
tionals are employed at locations in the Pacific other than Samoa.
There are only an estimated 50 employed on Samoa itself.
Although under the circumstances the additional annual cost to ex-
tend life insurance and health benefits coverage to these employees
cannot be accurately estimated, the cost of providing these benefits
would be approximately $300 per person.
Sincerely yours,
ANDREW E. RUDDOCK,
Director.
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, as re-
ported, are shown as follows (existing law proposed to be omitted is
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enclosed in black brackets, new matter is printed in italics, existing law
in which no change is proposed is shown in roman) :
TITLE 5, UNITED STATES CODE
? 8701. Definition :
(a) For the purpose of this chapter. "employee" means-
(1) an employee as defined by section 2105 of this title;
(2) a Member of Congress a~; defined by section 2106 of this
title;
(3) a Congressional employee as defined by section 2107 of this
title,.
(I) the President;
(5) an individual employed by the government of the District
of Columbia;
(6) an individu al einp.loyed by Gallaudet College;
(7) a United States Commissioner to whom subchapter III of
chapter 83 of this title applies by operation of section 8331(1) (E)
of this title:
(8) an, individual employed by a county committee established
wider section :SoOh(b) of title 16; and
(0) an individual appointed to a position on the office staff of
a former President under section 1(b) of the Act of August 25,
1'?1:8 (72 Stat. 838) :
l:mt does not include-
(A) an employee of a corporation supervised by the Farm
Credit Administration if private interests elect or appoint a mem-
ber ol` the board of directors:
(B) [a noneitizen] an employee who is not a citizen or national
of the U'e ted ,'totes end whose permanent duty station is outside
the 1?nited States and the Panama Canal Zone; or
W') an employee excluded by regulation of the Civil Service
('olumission under section 8716 (b) of this title.
? 8901. Definitions
For the purpose of this chapter--
(1) ":employee" means--
A) an employee as defined by section 2105 of this title;
Ii) a Member of (Congress as defined by section 2106 of
f his title:
;C) a Congressional employee as defined by section 2107
Of this title:
I)) the President :
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(E) an individual employed by the government of the Dis-
trict of Columbia;
(F) an individual employed by Gallaudet College;
(G) a United States Commissioner to whom subchapter
III of chapter 83 of this title applies by operation of section
8331 (1) (E) of this title; and
(II) an individual employed by a county committee estab-
lished under section 590h(b) of title 16;
but does not include-
(i) an employee of a corporation supervised by the Farm
Credit Administration if private interests elect or appoint a
member of the board of directors ;
(ii) [a noncitizen] an employee who is not a citizen or
national of the United States and whose permanent duty sta-
tion is outside the United States and the Panama Canal
Zone;
(iii) an employee of the Tennessee Valley Authorit ; or
(iv) an employee excluded by regulation of the Civil Serv-
ice Commission under section 8913 (b) of this title;
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