DOCUMENTING AND REPORTING PERSONNEL ACTIONS ON EMPLOYEES WHO RECEIVE RETIRED OR RETAINER PAY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00357R000600070027-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 12, 2016
• Document Release Date: April 8, 2002
• Sequence Number: 27
• Publication Date: March 6, 1980
• Content Type: LETTER

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?ffice of Personnel Ivianagement FPfvt Letter 296_ 85
Fe~era! Personnel A~lanual System
Fpm (,ett~r 296-65
StJ16J~CT: Documenting and Reporting Personnel Actions on Employees
Who Receive Retired or Retainer Pay
Heads of Departments and Independent Establishments:
Published in advance
of incorporation in FPM
Supplement Z96-31
it>rTAIN UNTtI SUf~RSC#O
Washington, Q. C. 20415
March 6, 1980
P. L. 95-454 (Civil Service Reform Act of 1978) placed a pay cap limitation on
members or former members of the uniformed services who hold Federal civilian
positions. The law provides for a reduction in retired or retainer pay if the
combination of salary of the civilian position and retired or retainer pay from
the uniformed services exceeds the rate of pay for positions at Level V of the
Executive Schedule. This pay cap limitation applies to retired officers and
retired enlisted members of both regular and reserve components, although some
individuals may be exempt due to the date that retired or retainer pay began.
(The provisions of 5 U.S.C. 5532(b) which require reduction in retired or retainer
pay of a retired regular officer remain unchanged.)
FPM Letter 296-4.9, December 29, 1978, and Subchapter S8 of Appendix A, FPI`1
.Supplement 296-31, contain instructions for agencies to follow in reporting to the
uniformed services-finance centers. Those instructions are changed as follows.
a. Agencies must report to the finance centers all accessions of members or former
members of the uniformed services who receive retired or retainer pay on the
_-effective date of appointment. (An accession, for this purpose, means and
addition to the agency's rolls, regardless of the type of personnel action; this
specifically includes accessions by transfer from another Federal agency.) The
finance center will then advise the agency whether the member is subject to the
pay cap and whether it should report all subsequent. pay changes.
b. If the finance center advises that the member is not subject to the pay cap and
that further reporting is not required, file the notice from the finance. center
on the temporary (left) side of the member's Official Personnel Folder. PIo
further reporting is required for pay cap purposes.
c. If the finance center advises that the member is subject to the pay cap, report
all subsequent pay changes and other personnel actions (including separations,
corrections, cancellations, and actions which move a person to or from a position
for which an except ion. to 5 U.S.C. 5532(c) has been authorized) which affect the
pay of the employee. File the notice from the finance center on the temporary
(left) side of the Official Personnel Folder (OPF).
inquiries' Agency Relations (ACE), Work Force Information Division, Records Management
' Branch, (202) 254-9899, -97 90
CO!de: 296, Processing Personnel Actions
f)istributiion: FPM Supplement 296-31
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d. Note that the notice from the finance center as to whether the member is subject
to the pay cap is a temporary .document. Since this document would be removed.
from the OPF when an employee separates, a subsequent employing agency would not.
know the finance center's determination. It is the intent of these instructions
that each new employing agency report an accession, even when there is no break
in service and the previous agency had a notice from the finance center.
e. The above reporting instructions are only for pay cap purposes. There is no
change in the reporting requirements for reduction in retired or retainer pay
of regular retired officers (5 U.S.C. 5532Sb)). Agencies must continue to
report all accessions, separations, and any other personnel actions which
move a retired. officer to or from a position for which exception to S U.S.C.
5532(b) is authorized.
a.. An agency is able to identify at time of appointment, through common pre-
~ppointment practices, those new appointees who are receiving uniformed
'service retired or retainer pay.
b. An agency cannot determine from the Official Personnel Folder when a current
employee begins to receive retired pay based on retirement from a reserve
component. At the time that FPM Letter 296-49 was issued, the problem of
identifying these reservists was under study. Those uniformed services which
are affected have now agreed upon the following procedures.
At the time a reserve member applies for retirement pay, the uniformed service
will determine whether the member holds a Federal civilian position or will
hold one on the date the member becomes entitled to retired pay. If so, the
uniformed service will then advise the employing agency whether the retiree is
subject to the pay cap and request that it start reporting civilian pay infor-
mation to the finance center.
These procedures place responsibility with. the uniformed services for identifi-
cation of current Federal civilian employees who begin receiving retired pay
based on retirement from the reserves. To do so, the uniformed services are
revising or supplementing retirement applications. In order to assure that all
members have been properly identified, agencies are requested to advise alI
em_nloyees of the law as it applies to reservists and request that any reservist.
who began receiving retired pay since January 1979 so advise the personnel
office if he or she has not already done so.
These procedures place responsibility with,the employing agencies to aid in
identifying retired reserve members who hold Federal civilian positions and,
once identified, to report civilian pay information on these members to the
finance centers.
a. FPM Letter 296-49 requires that "RETO" or "RETM," as appropriate, be added to
the Nature of Action on each personnel action processed on such an individual.
This requirement remains unchanged.
b. Table 4, Sub tab le 1-3e(6)(b) and Appendix A, Subchapter S8, of FPM Supplement
296-31, contain instructions for entering additional data on appointment actions.
Effective immediately, those instructions are modified by the following:
Add the infomation in the order listed below as the last item under "Remarks"
on the SF 50, Notification of Personnel Action (or an OPM-approved exception
thereto). If possible, separate it from other remarks by one blank line.
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FPM Letter 296-65 (3}
Enter this infarmation on each appointment action, and on any other personnel
action which moves an employee from a position for which exception of any
section of 5 U.S.C. 5532 is authorized to a position for which exception is
not authorized, or vice versa.
Enter this information for every employee who receives retired or retainer
pay from the uniformed services.
(i) Identify the member's uniformed service, using the following abbreviations:
A for Army
N for Navy
AF for Air Force `
MC for Marine Corps ~
CG for Coast Guard
NOAA for National Oceanic and Atmospheric Administration (or Coast and.-
. Geodetic Survey, Environmental Science Services Administration)
PH for Public Health Service
(2) Show effective date of retirement in six numerals in month-day-year
sequence, e.g., 02-10-64. If the member is receiving retainer pay, enter
none. (If a date is shown here, then Item 4 below should show "none.")
(3) Indicate whether the employee is excepted from one or more provisions of
5 U.S.C. 5532. Show as appropriate:
5 U.S.C. 5532(a), 5 U.S.C. 5532(b), and/or 5 U.S.C. 5532(c).
If the appointee is not excepted from any of these provisions, show not
5 U.S.C. 5532. -----
(4) Show date of transfer (in month-day-year sequence) to the Fleet Reserve.
This applies only to the Navy or Marine Corps. If the member is receiving
retirement pay, enter none. (If a date is shown here, then Item 2 above
should show "none.")
The following sample entries illustrate how the entries are to be shown:
A/O1-i5-59/Not 5 USC 5532/none
AF/11-01-61/Not 5 USC 5532/none
PH/12-10-78/5 USC 5532(b) and (c)/none
N/none/Not 5 USC 5532/05-01-7 9
Effective immediately, the address for reporting personnel actions for retired
members of the Coast Guard is:
.Commanding Officer
U. S. Coast Guard
Military Pay Center
Retired Pay Branch
6501 Lafayette Avenue
Riverdale, Maryland 20840
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FPM Letter 296- 65 (4)
FPM Bulletin 296-34 conr_ained a new address for the Public Health Service.
That address has been further refined in order to assure more direct routing
of-mail to the proper office. Effective immediately, the address for reporting
personnel actions for retired members of the Public-Health Service is:
Retirement, Annuity and Benefits Section/.CBB
Commissioned Personnel Operations Division, OPM/OM
U.S. Public Health Service
Room 4-35, Parklawn Building
5600 Fishers Lane '
Rockville, Maryland 20857
Current addresses of other finance centers are shown in FPM Letter 296-49.
arena
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