TEMPORARY EMPLOYMENT AND RETIREMENT

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP78-04722A000200020108-5
Release Decision: 
RIFPUB
Original Classification: 
K
Document Page Count: 
3
Document Creation Date: 
December 9, 2016
Document Release Date: 
March 29, 2000
Sequence Number: 
108
Case Number: 
Publication Date: 
September 17, 1970
Content Type: 
REPORT
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PDF icon CIA-RDP78-04722A000200020108-5.pdf157.44 KB
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Approved For Release 2000/08/28 CIA-R8-04722A000200020108-5 Iftop, Calendar . 1210 71sT CONGRESS SENATE i REPORT fed Session No. 91-1191 TEMPORARY EMPLOYMENT AND RETIREMENT SEPTEMBER 1.7, 1970.-Ordered to be printed \Mlr. FONG, from the COrnrnitt'e.o on Post Office and Civil Service, submitted the following ]I EP0RT The Committee on Post Office and Civil Service, to which was referred the bill (S. 2954) to permit corta.in Federal employment to be counted toward rotiremo.nt la.a,viug coti.siderod the same, ro}wrta fa,v- orably thereon with amendments and recommends that the bill as amended do pass. EXPLANATION AND JUSTIFICATION Some temporary, part-time, and intorimttellt employment is cov- ered by social securi y rather than. by the retnome.nt prograrra. Such L'ederal civilian employment which., because of the type of appoint, ment, places the omployee under the social security law is generally creditable for civil service retirement purposes, if the employee is later employed in a position subject to the. civil service retirenaea,.t syS- tem. Ono exception to this rule exists as tyre, result of the enactanen.t of section 115 of the Social Security Ainondnients of 1954, Public Law S3--761, approved September t, 1054. By Lho terms of sec-lion 115, aI1 employee who acquires social Security coverage iuider the Social Security Amei dineuts of 1954 may never receive retirement credit candor the civil service retirement system or under any other retirement system established by the United States for the service covered by social security. Under the 1954 Social Security Amendments, which became effective January 1, 1955, social Secaurity coverage was and is extended to temporary and indefinite employees in the field service of the Post Office I)eparmtont, temporary and indefinite employees of the Federal Deposit Insurance Corpora- tion, temporary consns-tiding employees of the Cei scar Bureau; employees on a contract or fee basis, persons receiving nominal pay of $1.2 a year or less, and patient employees in Federal hospitals. Approved For Release 2000/08/28 : CIA-RDP78-04722A000200020108-5 Approved For Release 200.0/08/28 : CIA-RDP4722A000200020108-5 Accordinly ring temporary- or indefinite eniploye'e of this kind ni not, if lie, later secures civil se_ r ice retirement Co Vei'age, reeei Ve credit for his prior social security covered Service ill deternliniug title. to aaui.uity for himself or his survivors, or in the eompnta.tion. of his annuity benefit. 'I'his;is true even though the employee is not then or would not at any time in the future become eligible for social security benefits, S. 2984 would repeal section 115 of the Social Security Amendments of .1.954 to permit social security-covered service in the. categories listed above to be counted under Oho civil service retirement system or other retirelnont system for Federal erilployeees. S. 2984 would become effective upon enactment and apply to em- ploy ees and former employees who thereafter relie. An tin ploy ee- anulritaalt or Survivor-a.unuitlint who, on the date of Conetment, was already receiving or entitled to receive retire m ell t benefits could request, the Civil Service Commission (or other office which administers his rr tirelnent system) to allow additional service credit for any c.lnploy Inept ill the categories previously men tinnr d. The result,int, n1crease in annuity would be payable only, from the, first of the innn1.1 following enactiliollt. An employee who has service, which becomes e.redita.ble for retire- ment purposes as a result of this bill. may, if lie wishes, make a deposit to the retirement fund equal to retirement deductions for the period, plus interest. Like any other employee who has nondeducttoil service, he will receive retirement credit without making any deposit, and the only penalty for nonpayment is a reduction in annuity equal to 10 percent of the amount due as deposit. AMENDvENTS As introduced, S. 2984 would have credited toward civil service retirement previous social security covered service only in the case, of temporary and indefinite employees in the field service of the Post Office, Department. The committee, believing that all employees in the'same circumstances should be treated alike, has amended the bill to include all employees deprived of such retirement credit by section 115 of the Social Security Amendments of 1954. The title was also amended to reflect more accurately the purpose of the bill as amended. AGENCY VIEWS The staff of the Civil Service Commission advises that, in the staff's view, the existing bra' to retirement, credit imposed by the 1954 Social Security Amendments is inequitable in. principle, because it denies credit for Federal civilian service. under the retirement system which was established and is maintained as the staff retirement plan for career civilian employees. Such it system should base retirement in- come oil all service performed for the Federal Government as employer. CHANGES IN EXISTING .l.1AW In compliance with Subsection 4 of rule XXIX of the Standing Rules of the Senate, changes in existing law made by the bill as reported are shown as follows (existing law in which no change is proposed is shown S. Rept. 91-1191 Approved For Release 2000/08/28 : CIA-RDP78-04722A000200020108-5 Approved For Release 200.0/08/28 : CIA-RDP 4722A000200020108-5 In roman; existing law proposed to be omitted is enclosed in black brackets; new matter is shown in italic) : 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 11 of the Social Security Act or under the Railroad Retire- ment Act of 1937, as amended) iiuder any roommenot 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- ments 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).] 0' Approved For Release 2000/08/28 : CIA-RDP78-04722A000200020108-5