CONFERENCE REPORT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000300010029-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 22, 2016
• Document Release Date: April 1, 2011
• Sequence Number: 29
• Publication Date: November 12, 1983
• Content Type: REGULATION

98TH CONGRESS HOUSE OF REPRESENTATIVES ( REPORT
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FEDERAL PHYSICIANS COMPARABILITY ALLOWANCE ACT
NOVEMBER 12 (legislative day of NOVEMBER 10), 1983.-Ordered to be printed
Mr. FORD of Michigan, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany H.R. 20771
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the Senate to the amendment of the
House to the amendment of the Senate to the bill (H.R. 2077) to
amend title 5, United States Code, to extend the Federal Physi-
cians Comparability Allowance Act of 1978, and for other purposes,
having met, after full and free conference, have agreed to recom-
mend and do recommend to their respective Houses as follows:
That the House recede from its disagreement to the amendment
of the Senate to the amendment of the House to the amendment of
the Senate to the House bill, and agree to the same with an amend-
ment as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment to the House amendment to the Senate amendment to
the House bill, insert the following:
"TITLE I-PHYSICIANS COMPARABILITY ALLOWANCE
"SHORT TITLE
"SEc. 101. This title may be cited as the `Federal Physicians Com-
parability Allowance Amendments of 1988.
"EXTENSION OF AUTHORITY
"SEC. 102. (a) The second sentence of section 5948(d) of title 5,
United States Code, is amended to read as follows: `No agreement
shall be entered into under this section later than September 30,
1987, nor shall any agreement cover a period of service extending
beyond September 30, 1989..
31-006 O
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(b) Section 3 of the Federal Physicians Comparability Allowance of which have not been determined on the date of enactment of
this Act) or January 1, 1986, whichever is earlier;
Act of 1978 (5 U. C. 5948 note) is amended by striking out 'Septem-
ber 30, 1985' and inserting in lieu thereof 'September 30, 1989. "(2) that the Treasury be required to pay into such retirement
systems the remainder of the amount such employees and offi-
"PAY OF CERTAIN FEDERAL PHYSICIANS FOR FISCAL YEAR 1982
"SEC. 103. (a) Any individual whose aggregate pay for fiscal year
1982 exceeded the limitation set forth in section 5383(b) of title 5,
United States. Code, is relieved of all liability to the United States
for any amounts paid to such individual in excess of such limita-
tion if, and to the extent that, such liability takes into account any
allowance paid under section 5948 of such title.
"(bX1) The appropriate agency head shall pay, out of any appro-
priation or fund available to pay allowances under section 5948 of
title 5, United States Code, to any individual as to whom liability is
relieved under subsection (a), an amount equal to the aggregate of
~uay au iurcts paid by such individual, or withheld from sams other-
lieiwd
U;i e due such irulicidua4 with respect to any liability re
under such subsection.
"(2) A payment under paragraph (1)-
"(A) shall be made only if written application therefor is sub-
mitted to the appropriate agency head, in accordance with such
regulations as the President or his designee may prescribe,
within two years after the date of enactment of this Act; and
'YG'/;full ao! fe ctmaidered for purrx. e of applying the limi-
tation set forth in section 5383(b) of title 5, United States Code.
"(c) For the purpose of this section-
"(1) the term 'aggregate pay, as used with respect to an indi-
vidual, means the aggregate amount paid to such individual
under sections 4507, 5382, 5384, and 5948 of title 5, United
States Code;
"(2) the term 'appropriate agency head', as used with respect
to an individual, means the head of the agency employing such
ith
individual when such individual was paid an allowance w
respect to which liability is relieved under this subsection; and
'(3) the term 'agency' has the meaning given such term by sec-
tion 5984(g)(2) of such title.
"TITLE II-FEDERAL EMPLOYEES RETIREMENT
ADJUSTMENT
"SHORT TITLE
"SEC. 201. This title may be cited as the 'Federal Employees' Re-
tirement Contribution Temporary Adjustment Act of 1983'.
"STATEMENT OF POLICY
"SEc. 202. It is the policy of the Government-
"(1) that the amount required to be contributed to certain
public retirement systems by employees and officers of the Gov-
ernment who are also required to pay employment taxes relating
to benefits under title II of the Social Security Act for service
performed after December 31, 1983, be modified until the date
on which such employees and officers are covered by a new Gov-
ernment retirement system (the design, structure, and provisions
cers would have contributed during such period but for the tem-
porary modification;
"(3) that the employing agencies make contributions to the re-
tirement systems with respect to such service in amounts re-
quired by law in effect before January 1, 1984, without reduc-
tion in such amounts; '
"(4) that such employees and officers accrue credit for service
for the purposes of the public retirement systems in effect on the
date of enactment of this Act until a new Government retire-
ment system covering such employees and officers is established;
"(5) that, where appropriate, deposits to the credit of such a
retirement system be neuind with nvjNvt to service zvrftn noJ
by an employee or officer of the Government during the period
described in clause (It on(, where o plvigpriute. .rnnuitse,, be
offset by the amount of certain Social Security benefits attribut-
able to such service; and
"(6) that such employees and officers. who are first employed
in civilian service by the Government or first take office in ci-
vilian service in the Government on or after January 1, 1984,
become subject to such new Government retirement system as
r.:ar be wtahIi. hn:l fir mnh>r+ctc and .?ffi,~era of the Goner n
ment on or alter January j, 1984, and befure January 1, 1S+,iu,
with credit for service performed after December 31, 1983, by
such employees and officers transferred to such new Govern-
ment retirement system.
"DEFINITIONS
"Sec. 203. (a) For the purposes of this title-
"(1) the term 'covered employee' means any individual whose
service is covered service;
"(2) the term 'covered retirement system' means-
"(A) the Civil Service Retirement and Disability System
under subchapter III of chapter 83 of title 5, United States
Code;
"(B), the Foreign Service Retirement and Disability
System under chapter 8 of the Foreign Service Act of 1980
(22 U.S.C. 4041 et seq.);
"(C) the Central Intelligence Agency Retirement and Dis-
ability System under the Central Intelligence Agency Re-
tirement Act of 1964 for Certain Employees (50 U.S.C. 403
note); and
"(D) any other retirement system (other than a new Gov-
ernment retirement system) under which a covered employee
who is a participant in the system is required to make con-
tributions to the system in an amount equal to a portion of
the participant's basic pay for covered service, as deter-
mined by the President;
"(3) the term 'covered service' means service which "is employ-
ment for the purposes of title II of the Social Security Act and
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chapter 21 of the Internal Revenue Code of 1954 by reason of
the amendments made by section 101 of the Social Security
Amendments of 1983 (97 Stat. 67); and
"(4) the term `new Government retirement system' means any
retirement system which (A) is established for officers or em-
ployees of the Government by or pursuant to a law enacted after
December 31, 1983, and before January 1, 1986, and (B) takes
effect on or before January 1, 1986.
"(b) The President shall publish the determinations made for the
purpose of subsection (a)(2)(D) in an Executive order.
"CONTRIBUTION ADJUSTMENTS
"SEC. 204. (a) In the case of a covered employee who is participat-
ing in a covered retirement system, an employing agency shall
deduct and withhold only 1,.3 percent of the basic pay of such em-
loyee under-
"(1) "(1) section 8334 of title 5, United States Code;
"(2) section 805 of the Foreign Service Act of 1980 (22 U.S.C.
4045);
"(3) section 211 of the Central Intelligence Agency Retirement
Act of 1964 for Certain Employees (50 U.S.C. 403 note); or
"(4) any provision of any other covered retirement system
which requires a participant in the system to make contribu-
tions of a portion of the basic pay of the participant,
for covered service which is performed after December 31, 1983, and
before the earlier of the effective date of a new Government retire-
ment system. or January 1, 1986. Deductions shall be made and
withheld as provided by such provisions in the case of covered serv-
ice which is performed on or after such effective date or January 1,
1986, as the case may be, and is not subject to a new Government
retirement system.
"(b) Employing agencies of the Government shall make contribu-
tions with respect to service to which subsection (a) of this section
applies under the second sentence of section 8334(a)(i) of title 5,
United States Code, the second sentence of section 805(a) of the.For-
C-4gn Service Act of 1980 (22 U.S.C. 4045(a)), the second sentence of
section 211(a) of the Central Intelligence Agency Retirement Act of
1964 for Certain Employees (50 USC. 403 note), and any provision
of any other covered retirement system requiring a contribution by
the employing agency, as if subsection (a) of this section had not
been enacted.
"REIMBURSEMENT FOR CONTRIBUTION DEFICIENCY
"SEC. 205. (a) For purposes of this section-
"(1) the term `contribution deficiency; when used with respect
to a covered retirement system, means the excess of-
"(A) the total amount which, but for section 204(a) of this
Act, would have been deducted and withheld under a pro-
vision referred to in such section from the pay of covered
employees participating in such retirement system for serv-
ice to which such section applies, over
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"(B) the total amount which was deducted and withheld
from the pay of covered employees for such service as pro-
vided in section 204(a) of this Act; and
"(2) the term 'appropriate agency head' means-
"(A) the Director of the Office of Personnel Management,
with respect to the Civil Service Retirement and Disability
System under subchapter III of chapter 83 of title 5, United
States Code;
"(B) the Secretary of -State, with respect to the Foreign
Service Retirement and Disability System under chapter 8
of the Foreign Service Retirement Act of 1980 (22 U.S.C. 404
et seq.);
"(C) the Director of Central Intelligence, with respect to
the Central Intelligence Agency Retirement and Disability
System under the Central Intelligence Agency Retirement
Act of 1964 for Certain Employees (50 U.S.C. 403 note); and
"(D) the officer designated by the President for that pur-
pose in the case of any retirement system described in sec-
tion 203(a)(2XD) of this Act.
"(b) At the end of each of fiscal years 1984, 1985, and 1986, the
appropriate agency head-
"(1) shall determine the amount of the contribution deficiency-,'
for such fiscal year in the case of each covered retirement .I
system, including the interest that those contributions would I
have earned had they been credited to the fund established for-
the payment of benefits under such retirement system in the
same manner and at the same time as deductions under the ap-
plicable provision of law referred to in section 204(a) of this
Act; and
"(2) shall notify the Secretary of the Treasury of the amount .
of the contribution deficiency in each such case.
"(c) Before closing the accounts for each of fiscal years 1984, 1985,.!
and 1986, the Secretary of the Treasury shall credit to the fund es-
tablished for the payment of benefits under each covered retirement
system, as a Government contribution, out of any money in the
Treasury not otherwise appropriated, an amount equal to the
amount determined under subsection (b) with respect to that covered
retirement system for the fiscal year involved.
"(d) Amounts credited to a fund under subsection (c) shall be ac-
counted for separately than amounts credited to such fund under
any other provision of law.
"SPECIAL DEPOSIT AND OFFSET RULES RELATING TO RETIREMENT
BENEFITS FOR INTERIM COVERED SERVICE
"SEC. 206. (a) For the purposes of this section, the term `interim
covered service' means covered service to which section 204(a) ap-
plies.
"(b)(1) Paragraphs (2) and (3) apply according to the provisions
thereof only with respect to a covered employee who is employed by
the Government on December 31, 1983.
"(2XA) Notwithstanding any other provision of law, the interim
covered service of such covered employee shall be considered-
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"(0 in determining entitlement to and computing the amount dual who is entitled to an annuity under
of an annuity (other than a disability or survivor annuity) com- a covered retirement system based on the service of such covered em-
mencing under a covered retirement system during the period ployee or who would be entitled to such an annuity if such deposit
beginning January 1,.1984, and ending on the earlier of the had been made by the covered employee before death may make such
date a new Government retirement system takes effect on Janu- deposit after the date of death of such covered employee. Service cov-
ary 1, 1986, by reason of the retirement of such covered employee ered by a deposit made pursuant to the first sentence shall be con-
during such period only if such covered employee makes a de- sidered in determining, in the case of each individual to whom the
posit to the credit of such covered retirement system for such first sentence applies, the entitlement to and the amount of an an-
covered service in an amount computed as provided in subsec- nuity under a covered retirement system based on the service of such
tion (f); and covered employee.
"(ii) in computing a disability or survivor annuity which com- . "(e) A reduction in annuity uhder subsection (b)(2XB) or (e)(2)
mences under a covered retirement system during such period shall commence on the first day of the first month after the date on
and is based in any part on such interim covered service. which payment of benefits under title II of the' Social Security Act
"(B) Notwithstanding any other provision of law, an annuity to commence and shall be redetermined each time an increase in such
which subparagraph (AXii) applies shall be reduced by the portion benefits takes effect pursuant to section 215(i) of the Social Security
of the amount of any benefits which is payable under title II of the Act. In the case of an annuity of a participant or former participant
Social Security Act and- is attributable to the interim covered service in a covered retirement system, of a surviving spouse or child of
considered in computing the amount of such annuity, as determined such participant or former participant, or of any other person desig
Cunder subsection (g), unless, in the case of a survivor annuity, a cov- nated by such participant or former participant to receive an annu
ered employee has made a deposit with respect to such covered serv- ity, under a covered retirement system (other than a former spouse)
ice for the purposes of subparagraph (A)(i) before the date on which the reduction in annuity under subsection (b)(2)(B) or (c)(2) shall be
payment of such annuity commences. calculated before any reduction in such annuity provided under
"(3) Notwithstanding any other provision of law, if a new Govern- such system for the purpose of paying an annuity under such system,
ment retirement system is not established or is inapplicable to such to any former spouse of such participant or former participant based.,
a covered employee who retires or dies" subject to a covered retire- on the service of such participant or former participant.
?ment system after the date on which such new Government retire- "(f) For the purposes of subsection (b) or (c), the amount of a de-'
ment system takes effect, the interim covered service of such covered posit to the credit of the applicable covered retirement system shall`
employee shall be considered in determining entitlement to and be equal to the excess of-
computing the amount of an annuity under a covered retirement "(1) the total amount which would have been deducted and
system based on the service of such covered employee only if such withheld from the basic pay of the covered employee for the in-'
covered employee makes a deposit to the credit of such covered re- terim covered service under such covered retirement system bui.11
tirement system for such covered service in an amount computed as for the application of section 204(a), over
provided in subsection (f). "(2) the amount which was deducted and withheld from such
"(c)(1) Paragraphs (2) and (3) apply according to the provisions basic pay for such interim covered service pursuant to section
thereof only with respect to a covered er.nployee who was not em- 204(a) and was not refunded to such covered employee.
ployed by the Government on December 31, 1983. "(g) For the purpose of subsections (b)(2XB) and (c)(2), the portion
0 "(2) Notwithstanding any other provision of law, any annuity of the amount of the benefits which is payable under title II of the
which commences under a covered retirement system 'during the Social Security Act to an individual and is attributable to interim
period described in subsection (b)(2)(AXi) and is based, in any part, covered service shall be determined by
on interim covered service shall be reduced by the portion of the "(1) computing the amount of such benefits including credit
amount of any benefits which is payable under title II of the Social for such service;
Security Act to the annuitant and is attributable to such service, as "(2) computing the amount of such benefits, if any, without
determined under subsection (g). including credit for such service; and
"(3) Notwithstanding any other provision of law, if a new Govern- "(3) subtracting the amount computed under clause (2) from,
merit retirement system is not established, the interim covered serv- the amount computed under clause (1).
ice of such a covered employee who retires or dies after January 1, "(h) The Secretary of Health and Human Services shall furnish to
1986, shall be considered in determining entitlement to and comput- the appropriate agency head (as defined in section 205(a)(2)) such fin-
ing the amount of an annuity under a covered retirement system formation as such agency head considers necessary to carry out this
based on the service of such covered employee only if such covered section.
-employee makes a deposit to the credit of such covered retirement
system for such covered service in an amount computed as provided
.in subsection 07.
"(d) If a covered employee with respect to whom subsection (bX3)
or (cX3) applies dies without having made a deposit pursuant to
"TRANSFER OF CREDIT TO NEW RETIREMENT SYSTEM
"SEC. 207. (a) Any covered employee who first becomes employed)
in civilian service by the Government or first takes office in civilian
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service in the Government on or after January 1, 1984, shall become
subject to such new Government retirement system as may be estab-
lished.
"(b) In the case of any covered employee who is subject to a cov-
ered retirement system on or after January 1, 1984, and thereafter
becomes subject to a new Government retirement system-
"(1) credit for the service of such employee to which section
204(a) applies shall be transferred from such covered retirement
system to the new Government retirement system for the pur-
poses of the new Government retirement system; and
"(2) such service shall be considered not to be creditable serv-
ice for the purposes of such covered retirement system,
effective on the date on which such employee becomes subject to
such new Government retirement system.
"ELECTIONS BY CERTAIN COVERED EMPLOYEES
Q "SEC. 208. (a) Any individual performing service of a type referred
o 'in clause (i), (ii), (iii), or (iv) of section 210(a)(5) of the Social Secu-
rity Act beginning on or before December 31, 1983, may-
"(1) if such individual is then currently a participant in a
covered retirement ,system, elect by written application submit-
ted before January 1, 1984-
"(A) to terminate participation in such system, effective
after December 31, 1983; or
"(B) to remain under such system, as if the preceding sec-
tions of this Act and the amendments made by this Act
had not been enacted; or
"(2) if such individual is then currently not a participant in a
covered retirement system, elect by written application-
"(A) to become a participant under such system (if such
individual is otherwise eligible to participate in the
system), subject to the preceding sections of this Act and the
amendments made by this Act; or
"(B) to become a participant under such system (if such
individual is otherwise eligible to participate in the
system), as if the preceding sections of this Act and the
amendments made by this Act had not been enacted.
`(b) An application by an individual under subsection (a) shall be
submitted to the official by whom such covered employee is paid.
"(c) Any individual who elects to terminate participation in a cov-
ered retirement system under subsection (a)(1XA) is entitled to have
such individual's contributions to the retirement system refunded,
in accordance with applicable provisions of law, as if such individu-
al had separated from service as of the efctive date of the election.
(d) Any individual who is eligible to make an election under sub-
paragraph (A) or (B) of subsection (a)(i), but who does not make an
election under either such subparagraph, shall be subject to the pre-
ceding sections of this Act and the amendments made by this Act.
"TITLE III-SENIOR EXECUTIVE SERVICE
"SEC. 301. (a) The Office of Personnel Management shall study
and, within 12 months after the date of enactment of
And that the Senate agree to the same.
WILLIAM D. FORD,
MO UDALL,
MARY ROSE OAKAR,
GENE TAYLOR,
BENJAMIN A. GILMAN,
Managers on the Part of the House.
TED STEVENS,
CHARLES MCC. MATHIAS, Jr.,
JEFF BINGAMAN,
Managers on the Part of the Senate.
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JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF
CONFERENCE
The managers on the part of the House and the Senate at the
conference on the disagreeing votes of the two Houses on the
amendment of the Senate to the amendment of the House to the
amendment of the Senate to the bill (H.R. 2077) to amend title 5,
United States Code, to extend the Federal Physicians Comparabil-
ity Allowance Act of 1978, and for other purposes, submit the fol-
lowing joint statement to the House and the Senate in explanation
of the effect of the action agreed upon by the managers and recom-
mended in the accompanying conference report:
The Senate amendment struck out all of the House bill after the
enacting clause and inserted a substitute text.
The House amendment struck out all of the Senate amendment
after the enacting clause and inserted a substitute text.
The Senate amendment struck out lines 1 through 12 of the
House amendment and inserted new matter consisting of titles I
and II.
The House recedes from its disagreement to the amendment of
the Senate with an amendment which is a substitute. The differ-
ences between the House and Senate amendments and the substi-
tute agreed to in conference are noted below, except for clerical
corrections, conforming changes made necessary by agreements
reached by the conferees, and minor drafting and clarifying
changes.
House Amendment
The House amendment amends section 5948(d) of title 5, United
States Code, and section 3 of the Federal Physicians Comparability
Allowance Act of 1978 to extend the 1978 Act for two more years.
a The current authority to enter into contracts with physicians ex-
t
t
3
l
d
s en-
rac
er current aw, con
. A
so un
pired September 30, 198
tered into prior to September 30, 1983, cannot extend beyond Sep-
tember 30, 1985. The House amendment extends the authority to
enter into contracts until September 30, 1985, and permits those
contracts to extend until September 30, 1987.
Senate Amendment
The Senate amendment differs from the House amendment in
three respects. First, the Senate amendment extends the Federal
Physicians Comparability Allowance Act of 1978 for four years in-
stead of two. Second, it relieves 13 Federal physicians of the obliga-
tion to repay certain compensation received in fiscal year 1982
which was in excess of the statutory limit on aggregate compensa-
tion set forth in section 5383(b) of title 5, United States Code. The
statutory limit was exceeded when these individuals mistakenly
were paid maximum physicians comparability allowances and
(10)
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Senior Executive Service performance awards. The amount forgiv-
en range from $1,455.46 to $5,988.66. Finally, the Senate amend-
ment contains provisions addressing the problem of double cover-
age of Federal employees hired after December 31, 1983, (newly
hired employees) under social security and other Federal staff re-
tirement systems including, but not limited to, the Civil Service Re-
tirement and Disability System, the Foreign Service Retirement
and Disability System, and the Central Intelligence Agency Retire-
ment and Disability System (covered retirement systems).
The retirement provisions of the Senate amendment essentially
provide that Federal employees hired after December 31, 1983
(newly hired employees), would be fully covered under both social
security and the applicable covered retirement system during a
two-year transition period ending January 1, 1986. During this
period employees would pay the full social security tax and contrib-
ute 1.3 percent of pay to the applicable covered retirement system.
Employing agencies would continue to make their full retirement
contributions (in most cases 7 percent). The difference between the
employee's normal contribution (in most cases 7 percent), and the
amount actually contributed (1.3 percent) would be made up by the
Treasury through amortized payments over 30 years.
If during the two-year transition period a newly hired employee
become eligible for benefits under a covered retirement system, no
retirement credit would be allowed for service during the transi-
tion period unless a deposit equal to the difference between the 1.3
percent actual contribution and the normal employee contribution
rate is made. In the case of disability or survivor benefits, the de-
posit requirement is waived, In addition, the retirement benefits
for an employee or survivor would be reduced by an amount equal
to that portion of any social security benefit that is attributable to
service during the transition period. Members, judges, and current
employees who will be covered by social security are treated the
same as newly hired employees except their service is not trans-
ferred to the new system.
At the end of the transition period, newly hired employees would
be transferred to a new yet-to-be-developed supplemental retire-
ment plan and would receive credit under that plan for their serv
ice during the transition period.
Conference Agreement
Extension of the Federal Physicians Comparability Allowance Act
of 1978.-The conference agreement follows the Senate amendment
and extends the 1978 Act for four years beginning October 1, 1983.
There have been persistent reports during the last two years
from agencies experiencing ongoing recruitment and retention
problems with respect to Federal physician positions. Nevertheless,
these agencies have chosen not to implement the Federal Physi-
cians Comparability Allowance Act. The conferees note the intent
of Congress is for this Act to be used whenever measurable recruit-
ment and retention problems exist. In that regard, the conferees)
direct the Office of Personnel Management and those agencies em
ploying civil service physicians to examine more closely the recruit-
ment and retention problems that exist with respect to these physi-l
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cians and to make more effective use of the allowances authorized
by this Act where identifiable problems exist.
Relief for certain Federal physicians.-The conference agreement
follows the Senate amendment but extends relief to any other Fed-
eral physician similarly situated. It provides that any individual
whose aggregate pay for fiscal year 1982 exceeded the limitation
set forth in section 5383(b) of title 5, United States Code, is relieved
of all liability to the United States for any amounts paid to that
individual in excess of the limitation if, and to the extent that, the
liability takes into account any physicians comparability allow-
ance.
Double coverage of Federal employees.-The conference agree-
ment follows the Senate amendment with several important modi-
fications.
With respect to the applicability of social security offsets and the
necessity for deposits for service during the transition period, the
conference agreement provides the following:
I. Newly hired employees-
A. Any retirement benefit commencing during the transition
period (1984 and 1985) will be offset by the amount of any
social security benefit attributable to service during that
period. No deposit is required.
B. If by the end of the transition period no new supplemen-
tal retirement plan has been established, the full contribution
rate again will be applicable, and retirement credit (including
credit for disability retirement) for service during the transi-
tion period will be allowed only if the employee deposits the
difference between the normal contribution rate (in most cases
7 percent) and the rate actually paid during that period (1.3
percent). In the case of an employee who dies without making
the necessary deposit, a survivor will be permitted to make the
deposit. There is no social security offset.
II. Current employees who will be subject to social security-
A. With respect to a retirement benefit commencing during
the transition period (1984 and ' 1985), retirement credit for
service during that period will be allowed only if the employee
deposits the difference between the normal contribution rate
(in most cases 7 percent) and the rate actually paid during that
period (1.3 percent). An exception is made for disability and
survivor benefits. No deposit is necessary in those cases, but
the benefit will be offset by the amount of any social security
benefit attributable to service during the transition period.
B. If by the end of the transition period no new supplemental
plan has been established, or such a plan does not apply to cur-
rent employees, the full contribution rate again will be applica-
ble, and retirement credit for service during the transition
period will be allowed only if the, employee deposits the differ-
ence between the normal contribution rate (in most cases 7
percent) and the rate actually paid during the period (1.3 per-
cent). In the case of an employee who dies without making the
necessary deposit, a survivor would be permitted to make the
deposit.
A second important modification permits current employees to
make elections concerning coverage. Although the Social Security
Amendments of 1983 (P.L. 98-21) generally provide that only Fec
eral employees hired after December 31, 1983, will be covered b
social security (and therefore face a double coverage situation), cei
tain current officers and employees and current Members_ an
judges will also be brought under social security effective Januar
1, 1984. Individuals in this affected group who are participants in
covered retirement system will be double covered effective Januar
1, 1984. The affected group includes the President and Vice Pres
dent, Members of Congress, individuals in Executive Schedule pos
tions (e.g., cabinet secretaries, . deputy and assistant secretarie:
heads and top officials of other agencies, boards and- commissions
and other top officials), noncareer members of the Senior Executive
Service and Senior Foreign Service, top officials in the Whit
House and judges.
Unlike newly hired employees who may elect whether or not
accept Government employment and face the uncertainties of
yet-to-be-established supplemental retirement program, the affect
ed group has no election other than to resign (which in many it
stances would involve resignations from elected offices, lifetime it
dicial appointments, or presidentially appointed and Senate-coi
firmed positions). Also, unlike most newly hired employees, man'
in the affected group have made a substantial investment in, an
have earned substantial credits under, their current covered retir,
ment systems. For these individuals, the rules are being changed
the middle of the game. The conferees believe this is unfair, an
the conference agreement permits certain elections by individuaj
in the affected group in order to mitigate the unfairness.
The conference agreement provides that an individual in the a
fected group who is currently participating in a covered retiremei
system may elect: (A) to terminate participation in the covered ni
tirement system effective after December 31, 1983, in which ca:
no retirement contributions to such system will be required an
the individual will be required to pay only the social security tai
or (B) to remain under the current covered retirement system ar,
make full retirement contributions to such system in addition i
the social security tax. Under election (A), the individual will f
covered only under social security. Under election (B), the individi
al participates fully in the current covered retirement system arj
is also covered by social security. An election. must be in writir
and be submitted before January 1, 1984. If no election is mad
the individual will be subject to the other provisions of the confe
ence agreement regarding reduced contributions and a social secs
rity offset.
In the case of an individual in the affected group who is not cu
rently participating in a covered retirement system an election
also provided. Such an individual may elect: (A) to become a pa
ticipant in the appropriate covered system and be subject to tl' other provisions of the conference agreement regarding reducf,
contributions and a social security offset; or (B) to become a partic.
pant in the appropriate system and not be subject to the other pr
visions of the conference agreement regarding reduced contribl
tions and a social security offset. Under election (A), the individu
will be treated essentially the same as a newly hired employee ar,
will pay the social security tax and a reduced retirement contrib
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