MEMO TO MULTIPLE ADRESSEES FRM, OMB, DTD 21 FEB 86, SAME SUBJECT

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• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000300070004-1
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• Document Creation Date: December 22, 2016
• Document Release Date: February 28, 2011
• Sequence Number: 4
• Content Type: MEMO

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STAT
STAT
'STAT
SUBJECT:, (Optional)`
Dept of-,Health & Human,-services comments on Labor Dept;. view H.R, 2672
"Federal Retirement Reform-Act"
Chief, Retirement Division
906 Ames--'Bldg
TO: (Officer designation, -room number, and
building)
DD/Pers
OFFICER'S
ANIMALS
FORWARDED
.27 February.-_1986
COMMENTS _ (Number =voeh comment to 'show from . whom
I whom.: Draw" a -line across column after goch comment:)
offset in-conjunction' with :the.new,
supplemental retirement program.
Sec ur i ty =and FE CA benefits are
package-deals with how Social
th?is_.'package._ They advise that the
RD_* and ' C/IOD' have ;reviewed
None_ of. the comments will create
any specific negative' 'impact to
benefits provided our employees.
The changes are all procedural.
ISTAT
.
Recommend your.signature onthe
attached.. _ . We believe the Health---
and Human Services comments are _
appropriate.
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2&3-
1to
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MEMORANDUM FOR: Director of Congressional Affairs
FROM: Robert W. Magee
Director of Personnel
SUBJECT: Department of Health and Human Services comments
on Labor Department views letter on H.R. 2672,
"Federal Retirement Reform Act"
REFERENCE: Memo to Multiple Addressees frm OMB,
dtd 21 Feb 86, Same Subject
We have reviewed the comments from the Department of Health.
and Human Services forwarded with reference and have no
objections to the statements and recommendations contained
therein.
Robert W. Magee
Robert W. Magee
STAT C/RD/EBS/0
Distributio
Original - Addressee
I - DDA
1 - D/OP
1 - DD/Pers/EBS
1 - C/RD/EBS
(27 Feb 86)
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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503 SPECIA
February 21, 1986
LEGISLATIVE REFERRAL MEMORANDUM
TO: Legislative Liaison Officer -
Labor Department - Pete Galvin - 523-7713
OPM - Frances Bolden - 632-4682
State Department - Torrey Whitman - 647-5158
Central Intelligence Agency t-
SUBJECT: Department of Health and Human Services comments on
Labor Department views letter on H.R. 2672, "Federal
Retirement Reform Act"
The Office of Management and Budget requests the views of your
agency on the above subject before advising on its relationship
to the program of the President, in accordance with OMB Circular
A-19.
A response to this request for your views is needed no later than
February 28, 1986, by telephone.
Questions should be referred to Hilda Schreiber (395-7362),
the legislative analyst in this office.
Naomi R. Sweeney for
Assistant Director for
Legislative Reference
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THE SECRETARY OF HEALTH AND HUMAN SERVICES
WAS.4,NGTON, O C 70701
The Honorable James C. Miller, III
Director
Office of Management & Budget
Washington, D.C. 20503
FEB X81986
This is in response to your request for a report on
Secretary of Labor William E. Brock's comments on proposals now
before Congress to establish a supplemental retirement plan for
new Federal employees hired after December 31, 1983.
At this time, Congress is considering two proposals for a
supplemental retirement plan for new Federal employees: a
Senate version, H.R. 2672 (formerly S. 1527), and a House
version, H.R. 3660. These two versions are now headed for
Conference Committee negotiations.
Secretary Brock's letter of January 14, 1986, deals
principally with the relationship between employee claims under
the Federal Employees Compensation Act (FECA), administered by
the Department of Labor, and disability and retirement benefits
to be provided under a new supplemental retirement system.
These supplemental benefits, administered by the Office of
Personnel Management, will augment primary benefits under
Social Security, administered by the Department of Health and
Human Services.
Secretary Brock's letter requests that any Administration
position expressed during Conference Committee negotiations
reflect a view that the relationship between FECA and the
disability and retirement benefits of a final supplemental
retirement plan be parallel to the relationship under other
private and public sector plans.
We have several specific comments concerning Secretary
Brock's comments on the proper relationship between FECA and
Social Security benefits. These are explained in detail in the
enclosure. In general, we defer to the Secretary of Labor on
the issues he raised, except for the specific items discussed
in the enclosure.
Sincerely,
Secretary
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Comments on Department of Labor Letter to OML
Concerning H.R. 2672
The letter from the Department of Labor (DOL) recommends several
changes concerning the treatment of Federal Employees'
Compensation Act (FECA) benefits under H.R. 2672--the
Senate-passed bill establishing a new Federal civil service
retirement system:
(1) DOL recommends that the bill specifically provide that
survivors receiving civil service benefits should elect either
FECA benefits or basic civil service benefits. (The bill
already requires employees to elect FECA benefits or basic
civil service retirement or disability benefits.)
Comment: Defer to DOL. It should be noted, however, that
5 U.S.C. 8116 (attached) already requires such an election for
survivors. Presumably, section 8116 would still apply since
it has not been repealed by the Senate bill. A clarification
would, however, be helpful since the bill specifically
addresses treatment of dual entitlement to FECA benefits and
civil service disability/retirement benefits, but not survivor
benefits.
(2) DOL recommends that section 306 (DOL incorrectly refers to
section 307 rather than 306) be revised so that FECA benefits
would not be offset by the amount of Social Security
disability benefits attributable to Federal covered
employment. They also recommend that a new section be added
to the bill providing instead for reducing Social. Security
disability benefits based on receipt of FECA benefits.
Comment: While we recognize the intent of the bill is to
provide consistent treatment of persons receiving FECA
benefits-and any type of Social Security benefits, we agree
that FECA benefits should not be reduced by Social Security
disability benefits. Rather, as already provided under
section 224 of the Social Security Act, the proper approach
would be an offset in the Social Security disability benefit
for receipt of FECA benefits. Reducing the Social Security
disability benefit (rather than the FECA benefit) would be
consistent with the principle that workers' compensation
payments are intended to be the primary source of wage
replacement in cases of work-related disability and that the
financial responsibility for work-related injuries should not
be shifted from employers to Social Security taxpayers.
Given that the disability offset provision is already included
in section 224 of the Social Security Act, it is not clear why
a new section needs to be added to the bill to assure that
Social Security disability benefits are offset by FECA
benefits.
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(3) DOL recommends that section 306 of the bill be modified so
that FECA benefits would be offset by Social Security survivor
benefits based on the employee's Federal covered employment--
in the same manner that Social Security retirement benefits
would result in a FECA benefit offset under section 306. DOL
notes (a) that pursuant to 5 U.S.C. 8116, survivors might have
to make an election between their FECA benefits and any Social
Security survivor benefits payable based on the employee's
Federal employment covered by Social Security and (b) that an
offset would be preferable to an election.
Comment: We defer to DOL on whether FECA benefits should be
offset for Social Security survivor benefits based on Federal
covered employment in the same manner that the bill proposes
to offset Social Security retirement benefits. However, it
appears to us that the present law provisions in 5 U.S.C. 8116
need to be repealed or modified to accomplish this result
since the FECA benefit offset in section-306 does not seem
consistent with the election requirement in 5 U.S.C. 8116.
The provision in 5 U.S.C. 8116 presumably would still apply to
the FECA benefit provisions as modified by the Senate bill.
Under 5 U.S.C. 8116(b) an employee or survivor eligible for
FECA benefits and any other Federal benefit based on the
employee's injury or death must elect within 1 year after the
injury or death to get either the FECA benefit or the other
Federal benefit(s). Contacts with DOL staff indicate that
while this provision is now being administered to only mean
that the person must choose between FECA and Federal civil
service benefits, the language in the statute could be
interpreted to require an election between FECA benefits and
Social Security disability or survivor benefits based on
Federal covered employment. (The current interpretation
appears to be based on the fact that most Federal civilian
employment is not covered by Social Security.)
Since the Senate bill does not amend 5 U.S.C. 8116, and since
5 U.S.C. 8116 and section 306 presumably cannot both apply at
the same time to the same case, DOL's letter should
acknowledge this and explain their recommendation concerning
modification of the provisions in 5 U.S.C. 8116.
(4) DOL recommends that the offset in section 306 of the bill be
triggered by receipt of Social Security benefits rather than
potential entitlement to those benefits.
Comment: Do not oppose.
We have no comments on the DOL recommendations concerning ERISA-
related aspects of the House and Senate civil service bills.
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pace 809 TITLE S-GOVERNMENT ORGANIZATION AND LI4PWY1 S f ill$
(3) his usual employment:
(4) him ale;
(6) his qualifications for other employment:
(6) the availability of suitable employment;
and
(7) other factors or circumstances which
may affect his wage-earning capacity in his
disabled condition.
(b) Section 1114(d) of this title is applicable
in determining the wage-earning capacity of an
employee alter the beginning of partial disabtl-
ity.
(Pub. L. 39-554. Sept. 6, 1966. 80 Boat. 642.)
X1Fr tucAl. sa Rsvistos Nora
Deriva? V.B. Code Revised Statutes and
ltOn Statute$ at Large
.................. 5 U.B.C. 763 Sept 7, 1018, eh. 458, 113.
10 But. 746.
Oct. 14, 1946. Ch. 09 1.
1204.63 Stat. 564.
Sept. 33. 1960. Pub. L. 88-
167, 1204. 74 Stat. 908.
Standard charges are trade to conform with the
definitions applicable and the style of this title as out.
lined in the prsface to the report.
Rwnos Rttsraus To ts. D.C. Cons
This section is referred to in sections 31-1603, 31-
1423 of the District of Columbia Code.
f 8111. Limitations on right to rectd.e compensation
(a) While an employee Is receiving compensa?
Lion under this subchapter, or if he has been
paid a lump sure in commutation of installment
payments until the expiration of the period
during which the installment payments would
have continued, he may not receive salary, pay,
or remuneration of any type from the United
States. except-
(1) in return for service actually performed:
(2) pension for service In the Army. Navy,
or Ali Force;
(3) other benefits administered by the Vet-
erans' Administration unless such benefits
are payable for the same injury or the same
death; and
(4) retired pay, retirement pay, retainer
pay, or equivalent pay for service in the
Armed Forces or other uniformed services,
subject to the reduction of such pay in &=r-
dunce with section 5632(b) of title 6, United
States Code.
However, eligibility for or receipt of benefits
under subchapter III of chapter 83 of this title.
or another retirement system for employees of
the Government. does not Impair the right of
the employee to eompensAtion for scheduled
dlsahliit.ies specified by section 1107(c) of this
title.
(b) An Individual entitled to benefits under
this subchapter because of his injury, or be-
Cause of the death of an employee, who also L
entitled to receive from the United States
under a provision of statute other than this
subchapter payments or benefits for that
Injury or death (exoept proceeds of an insur-
ance policy), because of service by him (or in
the we of death, by the deceased) as an em-
ployee or in the armed fortes, shall elect which
benefits he will receive. The Individual shill
irate the election within I your after the injury
or death or within a further time allowed for
good cause by the Secretary of Labor. The elec-
tion when made is irrevocable, except as other-
wise provided by statute.
(c) The liability of the 13-nited States or an In-
strumentality thereof under this subchapter or
any extension thereof with respect to the
injury or death of an employee is exclusive and
instead of all other liability of the United
States or the instrumentality to the employee,
his legal representative, spouse, dependents,
next of kin, and tiny other person otherwise en-
titled to recover damages from the United
States or the instrumentality because of the'
injury or death in a direct judicial proceeding,
in a civil action, or in admiralty, or by an ad-
ministrative or judicial proceeding under a
workmen's compensation statute or under a
Federal tort liability statute. However, this sub-
section does not apply to a master or a member
of a crew of a vessel.
(Pub. L 80-664. Sept. 6, 1960, 80 Stat. 642: Pub.
L. 00-83, 11(66), Sept. 11, 1967, 81 Stat. 210;
Pub. L. 03-416. 19(a), Sept. 7, 1074. 88 Stat.
1146.)
1966 Act
De-taa- U.S. Code Rtv(aed Statutes and
fton Stalu(es at Large
5 U.B.C. 76 Sept. 7,'1918, ch. 456, IT.
39 $tat. 743.
July 1. 1944, eh. 373,
180&a), U Btat. M.
Aug. It. 1546. ch. 958, 15.
50 Btat. 1040.
Oct. 14, 1049. eh. 891,
1201. 04 etas. 861.
July 30, 1056, ch. T78,
13(b), 70 Btat. 721.
Sept. 13. 196;. Pub. L $6-
767, 1202 74 Slut. 901.
Sept. 4, 1964, Pub. L 68-
551. i 4(b). 78 Slat M.
In subaectlor (a)(2). "Air Force" is added on author.
ity of the Act of July 26, 1947. ch. 343, I207(a), (f), 51
$tat 602. and sect tons 6010-4018 of title 10, United
$t.stee Code This doze not 1ffeet the 6pbr111o!i 6f this
subsection Insofar as it concerns members of the Coast
Guard whose pension is based in whole or in part on
service with, the Coast Guard when it operated as a
part of the Navy.
In subsection (b), the reference to the definition of
"employee" in former section, 790 is omitted as unnec-
wary asi the definition is included In section 8101 for
the entire rabchapter.
Administration of this subchapter was transferred to
the Secretary of labor by section 1 of 1930 Reorz.
Pear. No. It. 64 Stat. 1211 tare section 8143).
Standard chanties are eisds to conform with the
definition applicable and the style of this title a$ out-
lined in the pretare to the report.
1641 Acr
Secttio jof Source Source (8tattitu 411 Large)
Vis(a) I App.: 787(a) July 4. 1961. Pub. L $9-
41$, 1 Ike), 80 sot. 353.
The words "another retirement system for employ.
sea of the Government" are substituted for "any other
T'et!ersl Act or program providing Ntireo>nt beitsflts
for emplorea",
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i(C."T&RY OF L ACP
WA04OWTM, D.C..
January 14, 1986
The Honorable Janes C. Miller III
Director
Office of Management and Budget
Washington, D.C. 20503
V,5- _/ U A,5. `t
Dear Jim;
I at writing to advise you of our views on B.R. 2672, pertaining
to disability and retirement benefits for Federal employees
hired after January 1, 1984. This bill is now in conference.
We would appreciate inclusion of our views in any Administra-
tion corxunication to the conferees.
Both the Senate version of S.R. 2672 and the bill that will
be the basis of the House position in conference (H.R. 3660)
build a retirement and disability system for new Federal workers,
based on a combination of Social Security benefits and supple-
wenta2 benefits. They also provide for the establishment of
-a thrift savings plan by which employees may, if they choose,
contribute a certain percentage of their incoae to'an invest-
ment fund. For such employees the Government would also
deposit to the fund a sus based on a percentage of the employees'
contribution.
The Labor Department's primary interest in these bills per-
tains to their treatment of matters arising under the Federal
Employees' Compensation Act (FECA) and the Employee Retire3ent
Income Security Act (BRISA). With regard to FECA, we prefer
the Senate bill. with regard to LRISA, we favor the policies
currently reflected in both the House and Senate bills.
Regarding the YECA-related provisions of this legislation, we
believe that an effective Federal disability and retirement
system must have equitable provisions for handling situations
where a Federal e=ployee would be eligible for both workers'
compensation benefits under FBCA and retirement or disability
benefits under the Federal retirement system or under other
law. Under current law, these situations are addresse3 in
a simple, straightforward manner; individuals must elect to
receive eitber ?ECA benefits or benefits under the Federal
disability or retirement system. They cannot receive both.
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The disability and retirement systems contemplated by the
Senate and House bills, however, are more complicated and
require specificity regarding the manner in which each of
their individual elements relate to FECA benefits. The ele-
ments of the proposed system are: (1) the basic Federal dis-
ability or retirement benefits; (2) the thrift plan; and
(3) Social Security benefits. B.R. 3660 does not address
the relationship between the elements of the new program and
FECA at all. It is, therefore, unacceptable to us. The Senate
bill does address these issues and establishes a framework
which we believe is essentially equitable and proper. Within
this framework, however, the Senate bill leaves some questions
open and raises some concerns.
First, while the Senate bill properly oontinues the current
requiresent that a person eligible for FECA must elect between
receiving FECA benefits and receiving basic Federal disability
or retirement benefits, it does not address the election issue
with regard to death cases. We assume that in cases of death,,
the Senate intended an election by survivors between PECA
benefits and the basic retirement benefits, but we believe
the language of the bill should clearly reflect that intention.
Second, the Senate bill provides that an individual eligible
for both Social Security benefits (either retirement or dis-
ability) and FECA benefits 'would receive full Social Security
benefits, but would have FSCA benefits reduced on a dollar-
for-dollar basis for those Social Security benefits which
were based on Federal e,ployment. We believe that this is
a proper approach for Social Security retirement (OAST) bene-
fits, but is not a proper approach for Social Security dissDiliU
(SSDI) benefits. Our concern with having FECA benefits reduced
when an individual is also receiving SSDI benefits is based or.
our view of the proper role of a workers' cospeneation system,
which we believe is appropriately reflected in current law
and should be retained in the new Federal retirement system.
Current law generally provides that if insurance benefits
and workers' compensation benefits total more than 80 percent
of pre-disability earnings, SSDI will be reduced. Thus, workers'
compensation pays the `first dollar.' We favor this approach
because, by not reducing TBCA benefits, it requires erployers
to pay for work-related injuries, improves safety incentives,
and helps preserve the integrity of the Social Security Trust
Fund. The Senate bill, however, would reverse this offset
for Federal workers, reducing FECA benefits by the amount of
Social Security disability benefits. Thus, the Social Security
Trust Fund would in effect subsidize Federal erployers whose
workers bave serious esploysent-related injuries.
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We would therefore recommend that the offset in favor of workers'
compensation established by section 307 of the Senate bill
be limited to Social Security retirement benefits, and that
a new section be added providing for application of the SSDI
offset to FECA benefits in disability cases.
Another matter of concern with section 307 of the Senate bill
is that it refers only to benefits
or former employee. ~iccordin I payable to an employee
not apply to survivors' benefits tPursuantato 5f U.S.C. ell6,
however, survivors might have to make an election between
their FECA benefits and any Social Security death benefits.
We believe the offset approach taken by the Senate bill with
respect to employees is preferable to an election, and therefore
recommend that section 307 be extended to include survivors'
benefits.
We are also troubled by section 307's offset trigger.. The
language provides for an offset when Social Security benefits
'are payable or, upon proper application, would be payable.?
This language could be interpreted to mean that an employee
or former employee receiving benefits under FBCA would at age
62 automatically have those benefits reduced by a presumed
amount of Social Security benefits even if the employee has
elected to delay receipt of such benefits to age 65. We
believe the offset should be limited to Social Security
benefits actually received.
On the whole, we believe the Senate bill represents a respon-
sible approach to the proper apportioning of costs between
the FBCA system and the specific elements of the new retire-
ment system contemplated by the bill.
We will now comreent on the HAISA-related aspects of these
bills. Both the Senate and the Rouse bills include a thrift
savings plan. This plan is similar to a private sector defined
contribution plan. It is contemplated that the funds accumu-
lated In the Federal plan will be managed in part by private
sector investment fund managers who will be plan fiduciaries.
Both bills also include a role for the Department of Labor
in enforcing the fiduciary provisions governing the thrift
plan's investment management eyster.
The Department believes that the standards governing fiduciary
responsibility under the Federal plan should parallel those
applicable to the private sector under the Employee Retirement
Income Security Act (ERISA). The Federal Thrift Savings Plan
will be the largest and most visible thrift plan in the country..
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its beneficiaries should be afforded the same protections as
participants in private sector thrift plans, and its fiduciaries
should be bound by the same standards of conduct as similar
private sector plans.
Fiduciary standards similar to those in ERIKA are also important
for practical reasons. Adopting standards similar to private
sector standards will facilitate the Department's regulation
and enforcezent activities. Standards are well developed and
the regulatory structure is in place. ERISA-type standards
will also facilitate compliance with the standards for the
Federal plan because the private financial community and in-
vestment managers are already familiar with the current private
sector fiduciary standards.
Finally, the Deportment favors ERISA-type standards because
it feels their value and enforceability have already been
well demonstrated. Indeed, great care should be taken in
developing standards for the public sector plan because any
major coneptueiosionaofotherwell cetablis standards could
proven
encourage the
private sector standards.
The Souse and Senate bills both require the Department to
establish programs of compliance audits. Given the size of
the thrift plan and the number of participants, the Department
believes that such a-program of audits is appropriate. However,
we feel the administrative burden on the Departmentssbuto carry out tb be
ainiaized and that r ~ditioral responsibilities. provided
The Department's final concern regarding the thrift plan is
that economic considerations--i.e., risk and rate of return-be
the basis for taking investment decisions. pod-ecinocic~invest-
rent criteria are appropriate for selecting among
only if the investment opportunities are of equal economic
merit. If a pension plan is allowed to use non-e onomic criteria
as a guide to investment decisions, fiduciary standards become
unenforceable. Even more importantly, the use of non-economic
criteria for selecting investments will ultimately harm plan
participants by lowering investment returns and adversely
affecting participants' retirement income security. Both
the House and Senate bills currently appear to be drafted to
protect plan participants' interest in this important regard.
WEB : gdd
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WILLIAM D. FORD, MICHIGAF.,pCHAIRMAN
WILLIAM (BILL) CLAY. MISSOURI GENE TAYLOR, MISSOURI
PATRICIA SCHROEDER. COLORADO
STEPHEN J. SOLARZ, NEW YORK
ROBERT GARCIA, NEW YORK
MICKEY LELAND, TEXAS
GUS YATRON, PENNSYLVANIA
MARY ROSE DAKAR, OHIO
GERRY SIKORSKI, MINNESOTA
FRANK McCLOSKEY, INDIANA
GARY L ACKERMAN, NEW YORK
MERVYN M. DYMALLY, CALIFORNIA
RON do LUGO. VIRGIN ISLANDS
MORRIS K. UDALL, ARIZONA
H.R.'3660,;the "Civil Service Supplemental Retirement
System Act of 1985".
COMMITTEE ON POST OFFICE AND CIVIL SERVICE
Thursday, November 14, 1985
AGENDA
1 3.
H.R. 2854, to extend to certain officers and employees
of the Postal Service the same procedural and appeal
rights with respect to certain adverse personnel actions
as are afforded to Federal employees under title 5, United
States Code.
BENJAMIN A. GILMAN, NEW YORK
CHARLES PASHAYAN, JR., CALIFORNIA
FRANK HORTON. NEW YORK
JOHN , ALASKA
DON YOUNG, ALASKA
Jtoue of a re~enctatibe~
JAMES V. HANSEN, UTAH
DAN BURTON, INDIANA
Committee on'ost Office
anb Cibii Oerbice
agbington, ]DC 20515
H.R. 3331, to designate the United States Post Office
Building located at 2120 South Ervay in Dallas, Texas, as
the "Juanita Craft Post Office of South Dallas".
H.R. 3242, to designate the United States Post Office
Building in Moorestown, New Jersey, as the "Edwin B.
Forsythe Post Office Building".
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AMENDMENTS To H.R. 3660
OFFERED BY MS. OAKAR
Page 2, strike out the matter after line 7 and before
line 8 and insert in lieu thereof the following:
TABLE OF CONTENTS
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
TITLE I--CIVIL SERVICE SUPPLEMENTAL RETIREMENT SYSTEM
Sec. 101. Establishment.
TITLE II--OTHER AMENDMENTS TO TITLE 5, UNITED STATES CODE
Sec. 201. Treatment under chapter 83 of certain individuals
excluded from chapter 84.
Sec. 202. Non-applicability of chapter 83 to individuals
under chapter 84.
Sec. 203. Pay for the Executive Director of the Federal
Retirement Thrift Investment Board.
Sec. 204. Miscellaneous amendments.
TITLE III--MISCELLANEOUS PROVISIONS
Sec. 301. Extension of Federal Employees' Retirement
Contribution Temporary Adjustment Act of 1983.
Sec. 302. Election to modify terms of participation under
chapter 83.
Sec. 303. Applicability to the United States Postal Service.
TITLE IV--AUTHORIZATION OF APPROPRIATIONS; EFFECTIVE DATES
Sec. 401. Authorization of appropriations for certain
expenses of the Federal Retirement Thrift
Investment Management System.
Sec. 402. Effective dates.
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Page 13, line 16, after any. add the following:
11 Credit may not be allowed for a period of separation from .
the service in excess of 3 calendar days.".
Page 30, strike out line 19 and all that follows
thereafter through page 31, line 16, and insert in lieu
thereof the following:
? (2) The applicable amount under this paragraph for an
2 annuitant is an amount equal to the old-age insurance
3 benefits which would be payable to such annuitant under title
4 II of the Social Security Act upon attaining age 62 and
5 filing appropriate application therefor, except that in
6 computing the primary insurance amount under section 215 of
7 such Act for purposes of this paragraph--
" (A) only basic pay for service performed (if any)
9 shall be taken into account in computing the total wages
10 and self-employment income of the annuitant for a benefit
11 computation year;
1%(B) for a benefit computation year, any part of
13 which occurs after the date of the separation with
14 respect to which entitlement to the annuitant's annuity
15 under this subchapter is based and before the date on
16 which such annuitant becomes 62 years of age,. the total
17 wages and self-employment income of such annuitant for
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3
1 such year shall be deemed to be an amount equal to the
2 total amount of such individual's basic pay (as described
3 in subparagraph (A)) for the last benefit computation
4 year in which such individual performed a full year of
5 service; and
Page 34, strike out lines 16 and 17 and insert in lieu
thereof employee or Member. .
Page 36, strike out lines 13 through 25 and insert in
lieu thereof the following:
6 ''(b)(1) The Office shall determine, in accordance with
7 regulations prescribed by the Office consistent with the
8 provisions of this subchapter (and regulations thereunder)
9 relating to normal-cost percentages, the amount of any
10 contributions required in order to fund benefits payable
11 under this subchapter (and related benefits under subchapters
12 IV and V of this chapter) to the extent that those benefits
13 are attributable to--
- (A) service in the commissioned corps of the Public
15 Health Service after June 30, 1960;
1'(B) service after June 30, 1961, in the
17 commissioned corps of the National Oceanic and
18 Atmospheric Administration or a predecessor agency in
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4
1 function; or
%, (C) military service under section 8411(b)(2) of
3 this title other than as described in subparagraph (A) or
I ~
(2) Upon notification by the Office--
I I
(A) the Secretary of Health and Human Services
7 shall contribute to the Fund the amount determined under
8 paragraph (1)(A) for the period with respect to which the
9 notification relates;
' I
10 (B) the Secretary of Commerce shall contribute to
11 the Fund the amount determined under paragraph (1)(B) for
12 the period with respect to which the notification
13 relates; and
I I
(C) the Secretary of Defense shall contribute to
15 the Fund the amount determined under paragraph (1)(C) for
16 the period with respect to which the notification
17 relates.
18 Contributions under this paragraph shall be made from any
19 appropriation available to the Secretary concerned for the
20 payment of pay of members of the commissioned corps of the
21 Public Health Service, the commissioned corps of the National
22 Oceanic and Atmospheric Administration, or one of the other
23 uniformed services, as the case may be.
Page 37, line 15, strike out (2)(A) and insert in
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lieu thereof "(1)(B)".
Page 51, after line 8, insert the following:
1 (3) Loans under this subsection shall be subject to
2 such conditions as the Board may, by regulation, prescribe
3 consistent with section 408(b)(1) of the Employee Retirement
4 Income Security Act of 1974.
Page 52, line 7, after ''by11 insert 11 amounts paid for a
purpose under subsection (c)(2) or (3) and".
Page 63, strike out lines 13 through 25 and insert in
lieu thereof the following:
5 11 (2) In the case of a widow or widower whose annuity
6 under this section is terminated because of remarriage before
7 becoming 55 years of age, the annuity shall be restored at
8 the same rate commencing on the day the remarriage is
9 dissolved by death, divorce, or annulment, if the widow or
10 widower elects to receive this annuity instead of any other
11 survivor benefit to which such widow or widower may be
12 entitled under this subchapter'or section 8424 of this title
13 or under another retirement system for Government employees
14 by reason of the remarriage. Notwithstanding the preceding
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6
1 sentence, an appropriate actuarial reduction shall be made
2 (in accordance with regulations prescribed by the Office) if.
3 any lump-sum credit paid on termination of the annuity is not
4 returned to the Fund.
Page 65, line 6, insert "for such month" after
annuity
Page 67, strike out lines 3 through 9 and insert in lieu
thereof the following:
? (4) For the purpose of this subsection, the term
6 assumed CSRS annuity , as used in the case of a survivor
7 with respect to any month, means the amount of the annuity
8 which would be payable to such survivor for such month under
9 subchapter III of chapter 83 of this title, determined as if
10 the service of the deceased employee or Member were
11 creditable under such subchapter.
Page 67, strike out line 11 and all that follows
thereafter through page 68, line 7, and insert in lieu
thereof the following:
I I
(a)(1) If an employee or Member dies after. completing
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7
1 under section 8411 of this title, or an annuitant dies, each
2 surviving child is, for any month, entitled to an annuity
3 equal to--
''(A) the amount by which the applicable amount under
5 paragraph (2) for such month exceeds the applicable
6 amount under paragraph (3) for such month, divided by
7 (B) the number of children entitled to a payment
11 (2) The applicable amount under this paragraph for any
10 month is the total amount to which the surviving child or
11 children (as the case may be) of the annuitant, employee, or
12 Member would be entitled for such month under subchapter III
13 of chapter 83 of this title based on the service of such
14 annuitant, employee, or Member, if the service of such
15 annuitant, employee, or Member were creditable under such
16 subchapter.
%(3) The applicable amount under this paragraph for any
18 month is the total amount of childs insurance benefits which
19 would be payable under title II of the Social Security Act
20 for such month (determined after the application of section
21 203(a) of such Act) based on the wages and self-employment
22 income of such annuitant, employee, or Member.
Page 68, strike out lines 19 and 20 and insert in lieu
thereof the following:
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currence of such disability).
Page 69, line 9, after '1 first." insert the following:
''The annuity of a child under this subchapter shall be
subject to an appropriate actuarial reduction (under
regulations prescribed by the Office) if any lump-sum credit
paid is not returned to the Fund..
Page 75, line 13, insert -70 percent of" before
Page 84, after line 2, insert the following:
1 '
3 (h)(1) Each Government agency shall furnish the
4 Director with such information as the Director determines
5 necessary in order to administer this chapter.
% 1
(2) The Director, in consultation with the officials
7 from whom such information is requested, shall establish (by
8 regulation or otherwise) such safeguards as are necessary to
9 ensure that information made available under this subsection
10 is used only for the purpose authorized.
Page 106, strike out lines 19 through 22 and insert in
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lieu thereof the following:
I ~
(H) an official (including a director) of, or
2 an individual employed by, a person described in
3 subparagraph (A), (B), (D), (E), or (G) of this
4 paragraph, or an individual having powers or
5 responsibilities similar to those of such an
6 official;
Page 106, line 23, insert at least before 10
percent
Page 110, after line 4, insert the following:
I ~
(3)(A) The Secretary of Labor may, in accordance with
8 procedures which the Secretary shall by regulation prescribe,
9 grant a conditional or unconditional exemption of any
10 fiduciary or transaction, or class of fiduciaries or
11 transactions, from all or part of the restrictions imposed by
12 paragraph (2) of this subsection.
13 I~(B) An exemption granted under this paragraph shall not
14 relieve a fiduciary from any other applicable provision of
15 this chapter.
" (C) The Secretary of Labor may not grant an exemption
17 under this paragraph unless he finds that such exemption is--
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1 ''(i) administratively feasible,
2 (ii) in the interests of the Thrift Savings Fund
3 and of its participants and beneficiaries, and
'(iii) protective of the rights of participants and
I '(D) An exemption under this paragraph may not be
7 granted unless--
.1(i) notice of the proposed exemption is published
9 in the Federal Register;
1% (ii) interested persons are given an opportunity to
11 present views; and
V(iii) the Secretary of Labor affords an opportunity
13 for a hearing and makes a determination on the record
14 with respect to the respective requirements of clauses
15 (i), (ii), and (iii) of subparagraph (C) of this
16 paragraph.
Page 115, strike out lines 14 through 19 and insert in
lieu thereof the following:
'I
(g)(1) The Secretary of Labor shall establish a program
18 to carry out audits to determine the level of compliance with
19 the requirements of this section relating to fiduciary
20 responsibilities and prohibited activities of fiduciaries.
11(2) An audit under this subsection may be conducted by
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11
1 the Secretary of Labor, by contract with a qualified non-
2 governmental organization, or'in cooperation with the
3 Comptroller General of the United States, as the Secretary
4 considers appropriate.
Page 115, line 22, after fiduciary insert (other
than.a member of the Employee Thrift Advisory Council)".
Page 1.20, strike out lines 7 through 9 and insert in lieu
thereof the following:
5 TITLE II--OTHER AMENDMENTS TO TITLE 5, UNITED STATES CODE
Page 123, strike out line 17 and all-that follows
thereafter through page 124, line 19, and insert in lieu
thereof the following:
I I
(a)(1) Notwithstanding any other provision of this
7 subchapter, the annuity payable to an individual described .in
8 section 8402(b) of this title for any month (beginning with
9 the month in which such individual attains the minimum age
0 for old-age insurance benefits under title II of the Social
1 Security ; Act) shall be equal to the amount by which--
2 (A) the annuity which would otherwise be payable to
3 such individual under this:subchapter for such month,
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1 exceeds
2 (B) the amount determined under paragraph (2) of
3 this subsection with respect to such individual (not to
4 exceed the amount of any old-age insurance benefits which
5 are payable, or would on proper application be payable,
6 to such individual for such month under title II of the
7 Social Security Act).
8 '1 (2) The applicable amount under this paragraph for any
9 individual is an amount computed using the method set forth
10 in section 8421(b) of this title, except that the numerator
11 of the fraction under paragraph (3) of such section 8421(b)
12 shall be based on years of service within the meaning of
13 subsection (c) of this section.
1.(b)(1) Notwithstanding any other provision of this
15 subchapter, a disability annuity or survivor annuity payable
16 under this subchapter to a person for any month based on the
17 service of an individual described in section 8402(b) of this
18 title shall be reduced by an amount equal to a portion of any
19 similar benefits which are payable (or would, on proper
20 application, be payable) to such person under title II of the
21 Social Security Act for such month to the extent that such
22 benefits are (or would be) based on the wages and self-
23 employment income of such individual and (as determined under
24 paragraph (2)) attributable to service (within th.e meaning of
25 subsection (c)) performed by such individual.
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1 (2) The Office shall prescribe regulations, consistent
2 with subsection (a) of this section, to carry out this
3 subsection.
Page 126, line 13, strike out 'title;~ and all that
follows thereafter through line 15 and insert in lieu thereof
title.
thereof the following:
4 SEC. 204. MISCELLANEOUS AMENDMENTS.
5 (a) AMENDMENT TO SECTION 2105.--Section 2105(c)(2) of
6 title 5, United States Code, is amended by striking out
7 chapter 81" and inserting in lieu thereof chapter 81,
8 chapter 84,-".
9 (b) AMENDMENT TO SECTION 6301.--Section 6301(2)(B) of
10 title 5, United States Code, is amended to read as follows:
11 (B) an individual first employed by the
12 government of the District of Columbia before October
13 1, 1987;.
14 (c) AMENDMENT TO SECTION 6303.--The second sentence of
15 section 6303(a) of title 5, United States Code, is amended by
16 striking out ''title.'' and inserting in lieu thereof "title
17 and all service creditable under section 8411 of this title
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14
1 for the purpose of chapter 84 of this title.".
2 (d) AMENDMENTS TO SECTION 8331.--Section 8331(1) of title
3 5, United States Code, is amended--
4 (1) by amending subparagraph (G) to read as follows:
5
11 (G) an individual first employed by the
6 government of the District of Columbia before October
7 1, 1987;; and
8 (2) by striking out "or" at the end of clause
9 (viii), by striking out the period at the end of clause
10 (ix) and inserting in lieu thereof "; or", and by
11 adding after clause (ix) the following:
12 (x) an employee under the Botanic Garden
13 excluded by the Director or Acting Director of the
14 Botanic Garden under section 8347(1) of this
15 title..
16 (e) AMENDMENT TO SECTION 8332.--The second sentence of
17 section 8332(k)(1) of title 5, United States Code, is amended
18 by striking out ''second" and inserting in lieu thereof
third
(f) AMENDMENTS TO SECTION 8348.--Section
5, United States Code, is amended--
(1) in paragraph (1)(A), by striking
8348(a) of title
''subchapter; ~~ and inserting in lieu thereof
24 ''subchapter or by the provisions of chapter 84 of this
25 title which relate to benefits payable out of the
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1 Fund;
2 (2) in paragraph (1)(B)--
3 (A) by inserting "or 8462" after "8340"; and
4 (B) by striking out
title,
and and inserting
5 in lieu thereof title or subchapters II and IV of
6 chapter 84 of this title, and and
7 (3) in paragraph (2), by striking out "chapter" and
8 inserting in lieu thereof chapter, chapter 84 of this
9 title,.
10 (g) AMENDMENT TO SECTION 8701.--Section 8701(a)(6) of
11 title 5, United States Code, is amended to read as follows:
12 (6) an individual first employed by the government
13 of the District of Columbia before October 1, 1987; .
14 (h) AMENDMENTS TO SECTION 8901.--Section 8901 of title
15 United States Code, is amended--
16 (1) by amending paragraph (1)(E) to read as follows:
23
11 (E) an individual first
employed by the
government of the District of Columbia before October
1,J987;
;
(2) by amending paragraph (3)(A) to read as follows:
11 (A) an employee who retires--
1'(i) on an immediate annuity under
subchapter III of chapter 83 of this title, or
24. another retirement system for employees of the
Government, after 5 or more years of service;
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(ii) under section 8412 or 8414 of this
title; or
- (iii) for disability under subchapter III
of chapter 83. of this title, chapter 84 of this
title, or another retirement system for employees
of the Government,-
7
(3) in paragraph (4), by inserting ''or chapter 84"
8
after
83
9
(4) in paragraph (10)(C)(i), by inserting or 8467
10
after "8345(j)", by inserting "or 8445" after
11
8341(h)", and by striking out "System)," and
12
inserting in lieu thereof ''System or the Civil Service
13
Supplemental Retirement System),"; and
14
(5)
in paragraph (10)(C)(ii)--
15
(A) by striking out ''or 8345(j)" and inserting
16
in lieu thereof -8345(j), 8445, or 8467" and by
17
striking out "System)" and inserting in lieu
18
thereof
System or the Civil Service Supplemental
19
Retirement System)"; and
20
(B) by inserting ''or 8417(b)" after
21
118339(j)(3)''.
22
(i) AMENDMENTS TO SECTION 8905.--Section 8905(c)(1) of
23
title 5, United States Code, is amended--
24
(1) in subparagraph (B), by inserting ''or 8417(b)"
25
after 8339(j)(3); and
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17 11 1 (2) in the second sentence, by striking out or
2 8345(j)" and inserting in lieu thereof "8345(j), 8445,.
3 or 8467~.
Page 129, after line 8, insert the following:
4 SEC. 303. APPLICABILITY TO THE UNITED STATES POSTAL SERVICE.
5 Section 1005(d) of title 39, United States Code, is
6 amended to read as follows:
7 11 (d) Officers and employees of the Postal Service (other
8 than the Governors) shall be covered by chapters 83 and 84 of
9 title 5. The Postal Service shall withhold from pay and shall
10 pay into the Civil Service Retirement and Disability Fund the
11 amounts specified in or determined under such chapter 83 and
12 subchapter II of such chapter 84, respectively. The Postal
13 Service shall pay into the Federal Retirement Thrift Savings
14 Fund the amounts specified in or determined under subchapters
15 III and VII of such chapter 84..
Page 129, strike out lines 9 and 10 and insert in lieu
thereof the following:
16 TITLE IV--AUTHORIZATION OF APPROPRIATIONS; EFFECTIVE DATES
17 SEC. 401. AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN
18 EXPENSES OF THE FEDERAL RETIREMENT THRIFT
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INVESTMENT MANAGEMENT SYSTEM.
(a) TEMPORARY ALTERNATIVE FUNDING.--Notwithstanding
section 8434(c)(3) of title 5, United States Code (as added
by section 101 of this Act), the expenses incurred in the
administration of the Federal Retirement Thrift Investment
Management System under subchapter VII of chapter 84 of such
title (as so added) during fiscal years 1986 and 1987 shall
be paid from sums appropriated pursuant to subsection (b).
(b) AUTHORIZATION OF APPROPRIATIONS.--There are
authorized to be. appropriated to the Federal Retirement
Thrift Investment Board, for. fiscal years 1986 and 1987, such
sums as may be necessary to pay the expenses incurred in the
'administration of the Federal Retirement Thrift Investment
Management System during such fiscal years.
SEC. 402. EFFECTIVE DATES.
Page 129, after line 22, add the following:
20
(c) FIRST COST-OF-LIVING ADJUSTMENT.--(1) For purposes of
the first adjustment under section 8462(b) of title 5, United
States Code (as added by section 101 of this Act), the base
,quarter.ending on September 30, 1986, shall be considered to
have been a base quarter in which an adjustment under such
section was made.
(2) As used in paragraph (1);, the term
base quarter
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1 has the meaning provided by section 8462(a)(1) of title 5,
2 United States Code (as added by section 101 of this Act).
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TABLE 2. Comparison of Entry Age Normal Cost
Estimates of Current CSRS to CSSRS a/
Current CSRS
(baseline) CSSRS
Employer Employee Employer Employee
share share Total share share Total
(average) , (average)
Defined benefit
plan .............. 25.0% 7.0% 32.0% 18.1% 0.9% 19.0%
b/
Social security ... -- --- --- 5.9 5.9 11.8
c/
CAP (voluntary) ... --- --- --- 1.4 2.8 4.2
d/
Full cost ......... 25.0% 7.0% 32.0% 25.4% 9.6% - 35.0%
a/ All cost figures are rounded to the nearest tenth of a percent. Adminis-
trative costs and benefits to special groups are excluded. Under the current CSRS
these costs are estimated to be 0.1 and 0.3 percent of pay, respectively.
b/ Social security cost is the percentage of total Federal payroll taxable for
social security (OASDI).
c/ For employees, cost of the CAP is shown as the average cost. Average cost
is determined by dividing the projected sum of all contributions (up to the speci-
fied matching limit of six percent for each employee) by payroll. The cost to the
government is the employee cost times the matching rate.
d/ Average full cost includes projected average employee contribution and em-
ployer match to the CAP.
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TABLE 3. Entry Age Normal Cost of CSSRS by Benefit Normal Cost a/
(Z of total Federal pay)
Defined Benefit Component:
Annuities to employees:
Optional retirement ............................. 13.3%
Involuntary retirement .......................... 1.2
Disability retirement ........................... 1.4
Deferred retirement ............................. 0.6
Subtotal: Retirement ........................... 16.6%
Annuities to survivors of:
Age retirees .. . . . . . .. .... . . . . ..... . ..... ..... ... 1.5%
Disability retirees ............................. 0.2
Active employees..---* .... ...................... 0.6
To children................................,.... --
Subtotal: Survivors..*.... ..................... 2.3%
Refunds ............................................ 0.1
Total: Defined benefits* ......... *.9 ......... * .... 19.0%
Total: Average capital accumulation............... 4.2 b/
Total: Social security........................... . 11.8 c/
Total: All benefits ............................... 35.0%
Less employee contributions:
Defined benefit ................................. 0.9%
Capital accumulation ........................ .... 2.8 b/
Social security ...... ................... 5.9 d/
Total: Employer cost.***...*..* ................... 25.4%
a/ Detail may not sum to totals due to rounding. Administrative costs
and benefits to special groups are e_:luded.
b/ Based upon net employer contributions matching average contributed by
all workers (including nonparticipants).
c/ Approximately 0.4 percent of payroll of the social security cost is
not distributed to Federal workers but flows to relatively lower-income social.
security participants outside the Federal Government.
d/ Social security tax as a percent of total payroll.
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99Tx CONGRESS
1ST SESSION
He
To amend title 39, United States Code, to extend to certain officers and employ-
ees of the Postal Service the same procedural and appeal rights with respect
to certain adverse personnel actions as are afforded to Federal employees
under title 5. United States Code.
IN THE HOUSE OF REPRESENTATIVES
JUNE 25, 1985
MIr. DYMIALLY introduced the following bill; which was referred to the Committee
on Post Office and Civil Service
A BILL
To amend title 39, United States Code, to extend to certain
officers and employees of the Postal Service the same pro-
cedural and appeal rights with respect to certain adverse
personnel actions as are afforded to Federal employees
under title 5, United States Code.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That (a) section 1005(a) of title 39, United States Code, is
4 amended-
5 (1) by redesignating paragraph (3) as paragraph
6 (4); and
7 (2) by inserting after paragraph (2) the following:
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EL400
AMENDMENTS TO H.R. 2854
OFFERED BY Mr. Dymally
Page 2, line 3, strikeout subchapter, and all that
follows thereafter through line 5, and insert in lieu thereof
? subchapter; and".
Page 2, line 12, strike out -2 years and insert in
lieu thereof 1 year.
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SUMMARY OF H.R. 2854
PURPOSE:
SOURCE:
To amend title 39, United States Code, to extend to
certain officers and employees of the Postal
Service the same procedural and appeal rights with
respect to certain adverse personnel actions as are
afforded to Federal employees under title 5, United
States Code.
Introduced by Mr. Dymally on June 25, 1985.
Referred to the Committee on post office and Civil
Service.
BACKGROUND: In 1970, with the enactment of the Postal
Reorganization Act (Public Law 91-375), the United
States Postal Service was given the authority to
establish procedures to assure its officers and
employees full protection of their employment
rights by guaranteeing them an opportunity for a
fair hearing on adverse actions with
representatives of their own choosing.
Current law, however, allows postal employees who
are not covered under collective-bargaining
agreements to appeal removals, suspensions for more
than 14 days, reductions in grade or pay, or
furloughs for 30 days or less to officials within
the agency only, unless they are veterans
preference eligibles. Veterans, like their
counterparts in the competitive service, may appeal
an adverse action to the Merit Systems Protection
Board (MSPB), an independent government agency
established by Congress in the Civil Service Reform
Act of 1978.
EXPLANATION: H.R. 2854 amends section 1005(a) of title 39,
United States Code, governing applicability of
title 5 provisions (supchapter II of chapter 75) to
postal employees.
Section 1 of this legislation extends adverse
action appeal rights to Postal Service employees
who are supervisors, managers or employees engaged
in personnel work in other than a purely
nonconfidential clerical capacity, and who have
completed one year of continuous service in the
same or similar positions. The effective date of
Section 1 is 30 days following the date of
enactment of the bill.
Section 2 applies to any action which commenced
before the effective date of the bill. Under this
section, any such action shall not abate by reason
of enactment of H.R. 2854.
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99TH CONGRESS
1ST SESSION H? R
.2854
To amend title 39, United States Code, to extend to certain officers and employ-
ees of the Postal Service the same procedural and appeal rights with respect
to certain adverse personnel actions as are afforded to Federal employees
under title 5, United States Code.
IN THE HOUSE OF REPRESENTATIVES
JUNE 25, 1985
Mr. DYMIALLY introduced the following bill; which was referred to the Committee
on Post Office and Civil Service
A BILL
To amend title 39, United States Code, to extend to certain
officers and employees of the Postal Service the same pro-
cedural and appeal rights with respect to certain adverse
personnel actions as are afforded to Federal employees
under title 5, United States Code.
1 Be it enacted by the Senate and House of Representa-
2 Lives of the United States of America in Congress assembled,
3 That (a) section 1005(a) of title 39, United States Code, is
4 amended-
5 (1) by redesignating paragraph (3) as paragraph
6 (4); and
7 (2) by inserting after paragraph (2) the following:
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AMENDMENTS TO H.R. 2854
OFFERED BY PSr. Dy^ially
Page 2, line 3, strike out subchapter, and all that
follows thereafter through line 5, and insert in lieu thereof
? subchapter; and".
Page 2, line 12, strike out 2 years" and insert in
lieu thereof '*1 year".
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SUMMARY OF H.R. 2854
PURPOSE:
To amend title 39, United States Code, to extend to
certain officers and employees of the Postal
Service the same procedural and appeal rights with
respect to certain adverse personnel actions United
afforded to Federal employees under title 5,
States Code.
SOURCE: Introduced by Mr. Dymally on June 25, 1985.
Referred to the Committee on post office and Civil
Service.
BACKGROUND: In 1970, with the enactment of the Postalhe United
Reorganization Act (Public Law 91-375),
States Postal Service was given the authority to
establish procedures to assure its officers and
employees full protection of their employment
rights by guaranteeing them an opportunity for a
fair hearing on adverse actions with
representatives of their own choosing.
Current law, however, allows postal employees who
are not covered under collective-bargaining
agreements to appeal removals, suspensions for more
than 14 days, reductions in grade or pay, or
furloughs for 30 days or less to officials within
the agency only, unless they are veterans
preference eligibles. Veterans, like their
counterparts in the competitive service, may appeal
an adverse action to the Merit Systems Protection
Board (MSPB), an independent government agency
established by Congress in the Civil Service Reform
Act of 1978.
EXPLANATION: H.R. 2854 amends section 1005(a) of title 39,
United States Code, governing applicability of
title 5 provisions (supchapter II of chapter 75) to
postal employees.
Section 1 of this legislation extends adverse
action appeal rights to Postal Service employees
who are supervisors, managers or employees engaged
in personnel work in other than a purely
nonconfidential clerical capacity, and who have
completed one year of continuous service in the
same or similar positions. The effective date of
Section 1 is 30 days following the date of
enactment of the bill.
Section 2 applies to any action which commenced
before the effective date of the bill. Under this
section, any such action shall not abate by reason
of enactment of H.R. 2854.
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99TH CONGRESS H
1ST SESSION
. R. 3331
To designate the United States Post Office Building located at 2120 South Ervay
in Dallas, Texas, as the "Juanita Craft Post Office of South Dallas".
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 13, 1985
Mr. BRYANT introduced the following bill; which was referred to the Committee
on Post Office and Civil Service
A BILL
To designate the United States Post Office Building located at
2120 South Ervay in Dallas, Texas, as the "Juanita Craft
Post Office of South Dallas".
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That the United States Post Office Building located at 2120
4 South Ervay, Dallas, Texas, shall be designated and hereaf-
5 ter known as the "Juanita Craft Post Office of South
6 Dallas". Any reference in any law, map, regulation, docu-
7 ment, record, or other paper of the United States to that
8 building shall be deemed to be a reference to the "Juanita
9 Craft Post Office of South Dallas".
0
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PLAN DESIGN SPECIFICATIONS
FOR THE
CIVIL SERVICE SUPPLEMENTAL RETIREMENT SYSTEM (CSSRS)
I. DEFINED BENEFIT RETIREMENT
;3 aA
A. BASIC PLAN DESIGN Defined benefit, not explicitly
integrated with social security
(add-on plan).
B. REQUIRED EMPLOYEE ' Through 1987: 1.3% of pay.
CONTRIBUTION From 1988-1989: 0.94% of pay.
1990 and after: 0.8% of pay.
D. SALARY BASE
5 years.
Average High-3 salary.
RETIREMENT BENEFIT -9y~ 1.0% x years of service.
E
.
FORMULA /, / t Jv
F. UNREDUCED RETIREMENT
BENEFITS f1 G.w
c2~r~, wse ~J
l
Age
55
with
30
years
of
service;
Age
60
with
20
years
of
service;
Age
62
with
5
years
of
service.
30
G. INVOLUNTARY EARLY
RETIREMENT BENEFITS
2Q-c
H. DEFERRED RETI yMENT
(G~"l ~~l' 'x-e fro
U -- etic 6' t
Sup lement paig prior to age 62
equal to social security benefit.
Accrued benefit, unreduced,
payable at:
Age 50 with 20 years of service.
Any age with 25 years of service.
Supplement paid prior to age 62
equal to social security benefit.
Full accrued benefit payable at
age 62 with at least 5 years of
service.
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1. REFUNDS
Employees may withdraw
contributions plus interest.
Any withdrawn contributions will
be deducted from the vested
benefit value.
J. COST-OF-LIVING Annual adjustment equal to the
ADJUSTMENT A increase in the Consumer Price
index. L L
C{~1 - Z ~~' - G G P p~ wax ~ 2
FL-LL tdq 6?48 f tc.Ct
K. DISABILITY BENEFITS For employees eligible for
it benefits a
r
l
i
y
secu
a
soc
basic benefit no less than the
lesser of:
(a) 20% of high-three
salary, or
(b) the retirement
benefit projected to
age 60.
Employees not eligible for
social security benefits receive
the above formula plus a
supplemental benefit until
old-age social security benefits
become payable at age 62. The
supplement is equal to the
lesser of:
(a) the basic disability
benefit, or
(b) 70% of the social
security benefit.
L. HAZARDOUS
J
l S4/"~`4~
DUTY EMPLOYEES
G`
Federal Law Enforcement officers
may retire after age 50 with 20
years of service.
Firefighters may retire after
age 50 with 20 years of service.
Air Traffic Controllers may
retire after 25 years of service
or after age 50 with 20 years of
service. .
The annual retirement credit is
1.7% times years of service up
T5_20 years plus 1.5% for years
in excess of 20 years.
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HAZARDOUS DUTY EMPLOYEES / supplement payable from
(contd)
~ -w
of pay for benefit.
M. POST-RETIREMENT SPOUSE Automatic unless jointly waived.
SURVIVOR BENEFITS
Those electing option have
annuity reduced by 2.5% of the
initial $3,600 in annual benefits
and by 10% of the remainder.
Payment to surviving spouse is
half of the unreduced annuity.
N. PRE-RETIREMENT SPOUSE Any age with 18 months of
SURVIVOR BENEFITS service.
The same benefit that would be
payable to a surviving spouse of
a retired employee.
0. MINIMUM SURVIVOR The minimum surviving spouse's
BENEFITS (Pre- and benefit is no less than the
Post-Retirement) lesser of:
(a) the benefit payable under
CSRS or
(b) the projected combined
CSSRS and social security
benefit that would be
payable to the widow(er)
at age 60.
less
social security
P. CHILDREN
Annual benefit of $2,800
increased by future CPI growth,
and fully offset for the
children's portion of any social
security benefit. Benefits paid
until age 18 for a child not in
school and until age 22 for a
child in school. Benefits are
continued after age 22 for a
disabled child.
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Q. SERVICE CREDITED Same as in CSRS except that
credit is not allowed for unused
sick leave.
II. VOLUNTARY CAPITAL
ACCUMULATION PLAN
A. ALLOWABLE EMPLOYEE Up to 10% of pay to thrift plan.
CONTRIBUTIONS
B. GOVERNMENT MATCHING For each $1 contributed by
CONTRIBUTIONS employee up to 6% of pay,
Government contributes $0.50.
i
C. VESTING Full and immediate vesting of
government matching
contributions.
D. INVESTMENT OPTIONS Employees may choose to invest
their contributions in any of
six investment vehicles provided
in the Capital Accumulation
Plan.
Government contributions are
invested in Treasury securities
for the first five years of the
Capital Accumulation Plan.
After this period, Government
contributions may be invested in
any of the investment vehicles
as elected by the employee.
E. CURRENT EMPLOYEES Current employees may not elect
into CSSRS. They may
participate in the Capital
Accumulation Plan, but do not
receive Government matching
contributions.
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III. SOCIAL SECURITY
-
A.
OLD AGE, SURVIVORS. AND
DISABILITY INSURANCE
All affected employees covered.
B.
EMPLOYEE CONTRIBUTION
Employee contribution of
5.7%
of
pay (6.06% in 1988; 6.2%
1990) for OASDI coverage,
maximum taxable wage base
in
up
to
($39,600 in 1985.)
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 70%
60%
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Age 55 with 30 Years of Service
Total Potential Retirement Benefits
CSRS Ford-Oakar:
N1
PENSION
$15K
$30K $45K
Final Salary
OASDI ? CAP
$60K $75K
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Age 62 with 30 Years of Service
Total Potential Retirement Benefits
60% -~
//1
CSRS Ford-Oakar: $15K
PENSION
$30K $45K $60K
OASDI
Final Salary
CAP
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November 14, 1985
Civil Service Supplemental Retirement System
Act of 1985
(H.R. 3660)
I. Coverage
In General. The Civil Service Supplemental Retirement
System (CSSRS will cover those employees and Members appointed
or elected after December 31, 1983, whose service is covered
by social security. Former employees or Members who have
separated or will separate with less than five years of
creditable service under the CSRS also will be subject to the
new supplemental retirement system.
Exclusions. The new system will not apply to certain
political appointees, Members of Congress, or Federal judges
who have served continuously since December 31, 1983, or to
former employees or Members who have separated, or will
separate, from Federal service after completing at least five
years of creditable service under the current Civil Service
Retirement System (CSRS). These employees and Members will
retain coverage under the CSRS, but their CSRS annuities will
be offset by benefits to which they may be entitled under
social security.
II. Retirement Benefits Under Defined Benefit Plan
For the average employee retiring after a full career with
the Government, the combined benefits provided by the CSSRS and
social security are similar to the benefits of the Civil
Service Retirement System (CSRS). However, because of the
distribution of social security benefits, lower paid employees
receive somewhat more and the higher paid employees somewhat
less than under the CSRS.
Benefit Computation._ The Civil Service Supplemental
Retirement System (CSSRS) generally provides retirement
benefits of one percent of high-three average salary for each
year of service.
Eligibility. The benefits are payable in full at age 55
with 30 years of service, age 60 with 20 years of service, or
age 62 with 5 years of service. Deferred retirement benefits
are provided at age 62 after completion of 5 years of service.
Special Categories. Retirement at earlier ages is
provided for law enforcement officers, firefighters, air
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traffic controllers, Members of Congress (under certain
conditions), and employees who are separated involuntarily.
The annuities of these employees (except employees separated
involuntarily) and Members are 1 7/10 percent of average pay
for each year of service not exceeding 20 years plus 1 1/2
percent of average pay for each year of service in excess of 20
years. The additional cost of these benefits is paid by the
employees, Members, and their agencies.
Annuity Supplement. To provide a steady level of
retirement income for those eligible to retire before age 62,
an annuity supplement equal to the Federally earned social
security benefit is paid up to that age. Generally, the
supplement is paid from the date of retirement, but in certain
cases (such as involuntary retirement) payment of the
supplement does not commence until the individual attains age
55.
III. Employee and Government Contributions
Employee Contributions. Most employees under the CSSRS
will be required to contribute to the retirement fund an amount
equal to 7 percent of pay less the percentage (then in effect)
required to be contributed to social security (currently 5.7
percent). Law enforcement officers, firefighters, air traffic
controllers, Congressional employees, and Members will
contribute 7 1/2 percent of pay less the social security
contribution. Employees will be fully vested in their
contributions and entitled to withdraw the contributions, plus
interest, at the time of leaving Federal service. After five
years of service, employees will be vested in a deferred
benefit, payable at age 62, reduced by the value of any
withdrawn contributions.
Agency Contributions. Each employing agency will be
required to contribute to the retirement fund an amount equal
to the product of the normal cost percentage (entry-age normal
cost of the system) multiplied by the aggregate amount of basic
pay for the period involved.
Contributions for Military Service Credit. The Secretary
of Defense will be required to contribute each year to the
retirement fund whatever amount is necessary to fund any
retirement benefits that are attributable to credit for
military service. Employees under the CSSRS will not be
required to make deposits for creditable military service.
IV. Disability Benefits
Eligibility. An employee who completes at least 5 years
of creditable civilian service and is found by the Office of
Personnel Management (OPM) to be unable to perform the duties
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of such employee's position will be eligible for disability
retirement.
Benefit Computation. The disability annuity will be equal
to the employee's accrued retirement benefit but will be no
less than the smaller of (1) 20 percent of the employee's
average pay, or (2) an annuity computed under the regular
annuity formula after projecting the employee's service to age
60. Disabled employees who are unable to perform the duties of
their positions but who do not qualify for benefits under the
stricter social security definition of disability will be
entitled to receive an annuity supplement under the CSSRS to
make up for the lack of social security benefits.
V. Survivor Benefits
Survivor Benefit. Under the CSSRS the surviving spouse of
a deceased employee or Member who completed at least 18 months
of creditable service or the surviving spouse of an annuitant
will be entitled to an annuity equal to 50 percent of the
employee's or Member's earned annuity. The annuity of a
retiring employee or Member will be reduced by approximately
10 percent to provide for such survivor protection. The
50 percent survivor annuity together with social security
benefits payable to the survivor will, in most cases, provide
replacement income greater than survivor benefits payable under
the existing Civil Service Retirement System.
Minimum Benefit. If there is no social security benefit
currently payable to the surviving spouse, the CSSRS provides a
minimum benefit equal to the lesser of (1) the survivor annuity
which would have been payable under the existing CSRS, or (2)
the survivor benefit payable under the CSSRS plus the surviving
spouse's social security benefit at age 60.
Children's Benefit. The CSSRS recognizes that while
adequate benefits are paid to eligible children under social
security, these benefits are discontinued at age 18 or age 19
if the child is in school. The CSRS benefits are continued
until age 22 if the child is in school. The CSSRS fills this
gap by providing benefits as in the CSRS from age 19 to age 22
if the child is in school.
Former Spouses. Survivor benefits for former spouses of
deceased employees, Members, or annuitants under the'CSSRS are
provided, generally, under the same conditions such benefits
are provided under the existing CSRS.
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VI. Cost-of-Living Adjustments
All retirement and survivor annuities under the CSSRS are
fully protected against inflation by annual adjustments equal
to the increase in the Consumer Price Index. The formula for
the timing and amount of each adjustment is the same as under
the existing CSRS.
VII. Thrift Savings Plan
The CSSRS combines a traditional defined benefit
retirement plan with a Thrift Savings Plan to encourage
employee participation in building retirement income. The
thrift plan has the same design as the typical system provided
by private sector employers.
Contributions. Under the thrift plan an employee or
Member may voluntarily contribute through payroll withholding
an amount up to 10 percent of basic pay for each pay period.
For employees and Members covered by the CSSRS, the employing
agency will contribute the lesser of 50 percent of the amount
contributed by the employee or Member or 3 percent of basic
pay. Employees and Members who are subject to the existing
CSRS may participate in the thrift plan but are not entitled to
matching agency contributions. Employees and Members will be
afforded opportunities, at least once every six months, to
elect to commence or terminate participation in the thrift plan
or to amend the amounts of their contributions.
Investment Options. The employee contributions will be
allocated, at the discretion of the employee, among investment
funds maintained by the Federal Retirement Thrift Investment
Board. The options will include funds that specialize in a
particular type of investment such as Federal securities or
equities. Matching Government contributions will be invested
in a Government securities fund for the first 5 years, and
thereafter at the discretion of the employee.
Methods of Payment. Upon separation from the service an
employee or Member must elect a method by which the amounts in
the employee's or Member's account will be distributed. The
methods of payment will include (1) payment in a lump-sum or on
an installment basis, (2) payment of a life annuity to the
employee or Member, and (3) payment of an annuity to the
employee or Member with a 50 percent annuity payable to a
surviving spouse.
Loans and Withdrawals. Withdrawals and loans from the
account of an employee or Member (limited to the employee's or
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Member's contributions and earnings on those contributions) are
permitted only for the purposes of (1) purchase of a primary
residence, (2) educational expenses, (3) medical expenses, or
(4) financial hardship.
VIII. Thrift Plan Management System
Board. A Federal Retirement Thrift Investment Board,
consisting of 5 members appointed by the President, is
established to prescribe regulations for the administration of
the thrift savings plan, establish policies for the investment
and management of the Thrift Savings Fund, and review the
performance of investments made for the Thrift Savings Fund.
The members of the Board must have substantial experience,
training, and expertise in the management of financial
investments.
Advisory Council. The Board is required to establish an
Employee Thrift Advisory Council, consisting of 15 members to
be appointed by the Chairman of the Board. The Chairman is
required to appoint Council members representing Federal
employee and Postal Service employee organizations, postal and
nonpostal managerial organizations, women in Government
service, senior executives, and Federal retirees. The Council
will advise the Board and the Executive Director of the Board
on matters relating to thrift fund investment policies, types
of investment funds, and the general administration of the
thrift savings plan.
IX. Effective Dates
The provisions of the new retirement system (CSSRS) will
take effect on January 1, 1987, except for the provisions
relating to the thrift plan management system which will take
effect on the date of enactment.
X. Government Cost
The total employer cost of the new retirement system,
including social security, will be about 25.4 percent of
salary. The additional .4 percent of salary over the CSRS cost
of 25 percent of salary is needed to compensate for the
redistribution of benefits under the social security system.
At its slightly higher cost, the CSSRS provides benefits that
are worth, in total, the same as the CSRS benefits.
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