CIVIL SERVICE RETIREMENT ACT [AS AMENDED TO OCTOBER 11, 1962]

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03721A000600010017-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 31
• Document Creation Date: December 9, 2016
• Document Release Date: June 2, 1999
• Sequence Number: 17
• Publication Date: October 11, 1962
• Content Type: REGULATION

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WASHINGTON, D.C.
CIVIL SERVICE RETIREMENT ACT
[As AMENDED TO OCTOBER 11, 1962] 1
DEFINITIONS
SECTION 1. Wherever used in this Act-
(a) The term "employee" shall mean a civilian officer
or employee in or under the Government and, except for
purposes of section 2, shall mean a person to whom this,
Act applies.
(b) The term "Member" shall mean the Vice Presi-
dent, a United States Senator, Representative in Con-
gress, Delegate from a Territory, or the Resident
Commissioner from Puerto Rico, and, except for pur-
poses of section 2, shall mean a Member to whom this
Act applies.
(c) The term "congressional employee" means an em-
ployee of the Senate or House of Representatives or of
a committee of either House, an employee of a Joint
committee of the two Houses, an elected officer of the
Senate or House of Representatives who is not a Member
of either House, the Legislative Counsel of the Senate
and the Legislative Counsel of the House of Represent-
atives and the employees in their respective offices, an
Official Reporter of Debates of the Senate and a person
employed by the Official Reporters of Debates of the
Senate in connection with the performance of their offi-
cial duties, a member of the Capitol Police force, an em-
ployee of the Vice President if such employee's compen-
sation is disbursed by the Secretary of the Senate, and an
employee of a Member if such emplo ee's compensation
is disbursed by the Secretary of the Senate or the Clerk
of the House of Representatives.
(d) The term "basic salary" shall not include bonuses,
allowances, overtime pay, military pay, or salary, pay,
or compensation given in addition to the base pay of the
position as fixed by law or regulation : Provaded, That
for employees paid on a fee basis the maximum amount
of basic salary which may be used shall bB $10,000 per
annum. For a Member, the term "basic salary" shall
include, from April 1, 1954, to February 28, 1955, the
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amount received as expense allowance under section
601(b) of the Legislative Reorganization Act of 1946,
as amended, and such amount from January 3, 1953, to
March 31, 1954, provided deposit is made therefor as
provided in section 4.
(e) The term "average salary" shall mean the largest
annual rate resulting from averaging, over any period
of five consecutive years of creditable service, or at a
Member's option over all periods. of Member service
subsequent to the date of enactment of the Legislative
Reorganization Act of 1946 used in the computation of
an annuity under this Act, a Member's or an employee's
rates of basic salary in effect during such period, with
each rate weighted by the time it was in effect.
(f) The term "fund" shall mean the civil service re-
tirement and disability fund created by the Act of May
22, 1920.
(g) The terms "disabled" and "disability" shall mean
totally disabled for useful and efficient service in the
grade or class of position last occupied by the employee
or Member by reason of disease or injury not due to
vicious habits, intemperance, or willful misconduct on
his part within the five years next prior to becoming so
disabled.
(h) The term "widow", for purposes of section 1.0,
shall mean the surviving wife of an employee or Mem-
ber who was married to such individual for at least two
years immediately preceding his death or is the mother
of issue by such marriage.
(i) The term "widower", for purposes of section 1.0,
shall mean the surviving husband of an employee or
Member who was married to such employee or Member
for at least two years immediately preceding her death
or is the father of issue by such marriage. The term
"dependent widower", for purposes of section 10, shall
mean a "widower" who is incapable of self-support by
reason of mental or physical disability, and who received
more than one-half his support from such employee or
Member.
(j) The term "child", for purposes of section 10, shall
mean an unmarried child, including (1) an adopted
child, and (2) a stepchild or recognized natural child
who received more than one-half his support from and
lived with the Member or employee in a regular parent-
child relationship, under the age of eighteen years, or
such unmarried child regardless of age who because of
physical or mental disability incurred before age eight-
A:mended een is incapable of self-support, * * * or such unmar-
Oct. 11, 1962. ried child between eighteen and twenty-one years of age
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who is a student regularly pursuing a full-time course of
study or training in residence in a high school, trade
school, technical or vocational institute, junior college,
college, university, or comparable recognized educational
institution. A child whose twenty-first birthday occurs
prior to July 1 or after August 31 of any calendar year,
and while he is regularly pursuing such a course of study
or training, shall be deemed for the purposes of this
paragraph and section 10(d) to have attained the age of
twenty-one on the first day of July following such birth-
day. A child who is a student shall not be deemed to
have ceased to be a student during any interim between
school years if the interim does not exceed four months
and if he shows to the satisfaction of the Commission
that he has a bona fide intention of continuing to pursue
a course of study or training in the same or different
school during the school semester (or other period into
which the school year is divided) immediately following
the interim. * * *
(k) The term "Government" shall mean the execu-
tive, judicial, and legislative branches of the United
States Government, including Government-owned or
controlled corporations and Gallaudet College, and the
municipal government of the District of Columbia.
(1) The term "lump-sum credit" shall mean the un-
refunded amount consisting of (1) the retirement de-
ductions made from the basic salary of an employee or
Member, (2) any sums deposited by an employee or
Member covering prior service, and (3) interest on such
deductions and deposits at 4 per centum per annum to
December 31, 1947, and 3 per centum per annum there-
after compounded annually to December 31, 1956, or,
* * * in the case of an employee or Member separated
or transferred to a position not within the purview of
this Act before he has completed five years of civilian
service, * * * to the date of the separation or transfer.
The lump-sum credit shall not include interest if the
service covered thereby aggregates one year or less, nor
shall it include interest for the fractional part of a month
in the total service.
(in) The term "Commission" shall mean the United
States . Civil Service Commission.
(n) The term "annuitant" shall mean any former em-
ployee or Member who, on the basis of his service, has
met all requirements of the Act for title to annuity and
has filed claim therefor.
(o) The term "survivor" shall mean a person who is
entitled to annuity under this Act based on the service
of a deceased employee or Member or of a deceased
annuitant.
Amended
July 7, 1860.
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Amended
Apr. 8, 1960.
Amended
Sept. 14, 1981.
Amended
Oct. 11, 1962.
(p) The term "survivor annuitant" shall mean a sur-
vivor who has filed claim for annuity.
(q) The term "service" shall mean employment which
is creditable under section 3.
(r) The term ".military service" shall mean honorable
active service in the Army Navy, Air Force, Marine
Corps, or Coast Guard of the United States, * * * or,
after June 30, 1960, in the Regular Corps or Reserve
Corps of the Public Health Service. * * * or, after
June 30, 1961, as a commissioned officer of the Coast and
Geodetic Survey, * * * but shall not include service in
the National Guard except when ordered to active duty
in the service of the United States.
(s) The term "Member service" shall mean service
as a Member and shall include the period from the date
of the beginning of the term for which the Member is
elected or appointed to the date on which he takes office
as a Member.
* * * (t) The term "price index" shall mean the an-
nual average over it calendar year of the Consumer Price
Index (all items-United States city average) published
monthly by the Bureau of Labor Statistics. * * *
SEC. 2. (a) This Act shall apply to each employee
and Member, except as hereinafter provided .1L
(b) This Act shall not apply to the President, to any
Judge of the United States as defined under section 451
of title 28 of the United States Code, or to any employee
of the Government subject to another retirement system
for Government employees.
(c) This Act shall not apply to any Member or to
any congressional employee until he gives notice in writ-
ing to the officer, by whom his salary is paid of his desire
to come within the purview of this Act.
(d) This Act shall not apply to any temporary con-
gressional employee unless such employee is appointed
at an annual rate of salary and gives notice in writing
to the officer by whom his salary is paid of his desire to
come within the purview of this Act.
(e) The Commission may exclude from the operation
of this Act any employee or group of employees in the
executive branch of the United States Government, or of
the District of Columbia government upon recommen-
dation by its Commissioners, whose tenure of office or
employment is temporary or intermittent.
3 Section 10(c) of Public Law 86-91 approved July 17, 1969, excludes from retirement
coverageteachers in dependents schools of the Department of Defense in overseas areas,
as regards any Federal employment performed by them in another capacity during a
recess period between two school years.
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(f) This Act shall not apply to any temporary em-
ployee of the Administrative Office of the United States
Courts, of the courts specified in section 610 of title 28
of the United States Code, or to construction employees
or any other temporary, part-time, or intermittent em-
ployees of the Tennessee Valley Authority; and the
Architect of the Capitol and the Librarian of Congress
are authorized to exclude from the operation of this Act
any employees under the office of the Architect of the
Capitol and the Library of Congress, respectively, whose
tenure of employment is temporary or of uncertain
duration.
(g) Notwithstanding any other provision of law or
any Executive order, this Act shall apply to each United
States Commissioner whose total compensation for serv-
ices rendered as United States Commissioner is not less
than $3,000 in each of the last three consecutive calendar
years (1) ending prior to the effective date of the Civil
Service Retirement Act Amendments of 1956 or (2) end-
ing prior to the first day of any calendar year which
begins after such effective date. For the purposes of
this Act the employment and compensation of each such
United States Commissioner coming within the purview
of this Act pursuant to this subsection shall be held and
considered to be on a daily basis when actually employed;
but nothing in this Act shall affect, otherwise than for
the purposes of this Act, the basis, under applicable law
other than this Act, on which such United States Com-
missioner is employed or on which his compensation is
determined and paid.
* * * (h) This Act shall apply to persons employed
by the county committees established pursuant to section
8(b) of the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590h(b) ), subject to the following
requirements::
(1) The Secretary of Agriculture is authorized
and directed to prescribe and issue such regulations
as may be necessary to provide a means of effecting
the application and operation of the provisions of
this Act with respect to such employees; * * *
* * * (2) The Commission is authorized and
directed to accept the certification of the Secretary
of Agriculture or his designee with respect to service,
for purposes of this Act, of the type rendered by
employees described in paragraph (3) of this
subsection.
(3) Subject to the provisions of sections 4(c) and
9( ) of this Act service rendered prior to July 10,
1960, as an employee of a county committee estab-
lished pursuant to section 8 (b) ofthe Soil Conserva-
Amended
July .1, 1980,
effective
July 10, 1960.
Amended
Oct. 4, 1961,
effective
July 1, 1961.
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tion and Domestic Allotment Act (16 U.S.C. 590h
(b)) or of a committee or an association of pro-
ducers described in section 10(b) of the Agricultural
Adjustment Act of May 12, 1933 (48 Stat. 37), shall
be included in computing length of creditable service
for the purposes of this Act. * * *
Amended
June 17, 1957,
and Sept. 2,
1958.
SEC. 3. (a) An employee's service for the purposes of
this Act including service as a substitute in the postal
service shall be credited from the date of original em-
ployment to the date of the separation upon which title
to annuity is based in the civilian service of the Govern-
ment.) Credit shall similarly be allowed for service in
the Pan American Sanitary Bureau. No credit shall
be allowed for any period of separation from the service
in excess of three calendar days.
(b) An employee or Member shall be allowed credit
for periods of military service prior to the date of the
separation upon which title to annuity is based; how-
ever, if an employee or Member is awarded retired pay
on account of military service, his military service shall
not be included, unless such retired pay is awarded on
account of a service-connected disability (1) incurred
in combat with an enemy of the United States or (2)
caused by an instrumentality of war and incurred in
line of duty during * * * a period of war (as that term
is used in Chapter 11 of title 38, United States Code),
* * * or is awarded under title III of Public Law 810,
Eightieth Congress,2 except that for purposes of section
9(c) (1), a Member (A) shall be allowed credit only
for periods of military service not exceeding five years,
plus any military service performed by the Member upon
leaving his office, for the purpose of performing such
service, during any war or national emergency pro-
claimed by the President or declared by the Congress
and prior to his final separation from service as Member
and (B) may not receive credit for military service for
which credit is allowed for the purposes of retired pay
under any other provision of law. Nothing in this Act
shall affect the right of an employee or a Member to
retired pay, pension, or compensation in addition to the
annuity herein provided.
1 Federal employees who acquire Social Security coverage by the terms of the Act of
September 1, 1954 (Social Security Amendments of 1954), are prohibited by that Act from
receiving credit under the Civil Service Retirement System for the service covered by Social
Security.
Public Law 86-782, approved September 14, 1960, authorizes credit for periods of intern-
ment during World War II for certain employees of Japanese ancestry.
2 Now Chapter 67, Title 10, United States Code.
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(c) Credit shall be allowed for leaves of absence
granted an employee while performing military service
or while receiving benefits under the Federal Employees'
Compensation Act of September 7, 1916, as amended.
Except for a substitute in the postal service, there shall
be excluded from credit so much of any other leaves of
absence without pay as may exceed six months in the
aggregate in any calendar year.
(d) An employee who during the period of any war,
or of any national emergency as proclaimed by the Pres-
ident or declared by the Congress, has left or leaves his
position to enter the military service shall not be con-
sidered, for the purposes of this Act, as separated from
his civilian position by reason of such military service,
unless he shall apply for and receive a lump-sum benefit
under this Act : Provided, That such employee shall not
be considered as retaining his civilian position beyond
December 31, 1956, or the expiration of five years of
such military service, whichever is later.
(e) The total service of an employee or Member shall
be the full years and twelfth parts thereof, excluding
from the aggregate the fractional part of a month, if any.
(f) An employee must have completed at least five
years of civilian service before he shall be eligible for
annuity under this Act.
(g) An employee or Member must have, within the
two-year period preceding any separation from service,
other than a separation by reason of death or disability,
completed at least one year of creditable civilian service
during which he was subject to this Act before he or his
survivors shall be eligible for annuity under this Act
baseon such separation. .If any employee or Member,
other than an employee or. Member separated from the
service by reason of death or disability, fails to meet the
service requirement of the preceding sentence, the
amounts deducted from his salary during his period of
service for which no eligibility for annuity is estab-
lished based on such separation shall be returned to him
upon such separation. Failure to meet this service re-
quirement shall not deprive the individual or his sur-
vivors of any annuity rights which attached upon a
previous separation.
(h An employee who (1) has at least five years'
Member service and (2) has served as a Member at any
time after August 2, 1946 shall not be allowed credit for
any service which is used in the computation of an an-
nuity under section 9 (c).
(i) In the case of each United States Commissioner
who comes within the purview of this Act pursuant to
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section 2(g) of this Act, service rendered prior to, on,
or after the effective date of the Civil Service Retirement
Act Amendments of 1956 as United States Commissioner
slept A21, mended 1969 shall be credited for the purposes of this Act * * * on
the basis of one three-hundred-and-thirteenth of a year
for each day prior to July 1, 1945, and one two-hundred-
and-sixtieth of a year for each day after June 30, 1945,
on which such United States Commissioner renders serv-
ice in such capacity * * * and which is not credited for
the purposes of this Act for service performed by him
in any capacity other than United States Commissioner.
Such credit shall not be granted for service rendered as
Amended
Sept. 21, 1959. United States Commissioner * * * for more than three
hundred and thirteen days in any one year prior to
July 1, 1945, or for more than two hundred and sixty
days in any one year after June 30, 1945. * * *
S A:m,ended * * (j) Notwithstanding any other provision of
ept. 22, 1961.
this section or section 5(f) of the Peace Corps Act, any
military service (other than military service covered by
military leave with pay from a civilian position) per-
formed by. an individual after December 1956 and any
period of service by an individual as a volunteer under
the Peace Corps Act, shall be excluded in determining
the aggregate period of service upon which an annuity
payable under this chapter to such individual or to his
widow or child is to be based, if such individual or widow
or child is entitled (or would upon proper application
be entitled) at the time of such determination, to monthly
old-age or survivors benefits under section 202 of the So-
cial Security Act, as amended (42 U.S.C. 402), based on
such individual's wages and self-employment income. If
in the case of the individual or widow such military serv-
ice, or service under the Peace Corps Act is not excluded
under the preceding sentence, but upon attaining age
sixty-two, he or she becomes entitled (or would upon
proper application be entitled) to such benefits, the Com-
mission shall redetermine the aggregate period of service
upon which such annuity is based, effective as of the first
day of the month in which he or she attains such age, so as
to exclude such service. The Secretary of Health, Edu-
cation, and Welfare shall, upon the request of the Com-
mission, inform the Commission whether or not any such
individual or widow or child is entitled at any specified
time to such benefits. * * *
SEc. 4. (a) From and after the first day of the first
pay period which begins on or after the effective date
of the Civil Service Retirement Act Amendments of
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1956, there shall be deducted and withheld from each
employee's basic salary an amount equal to 61/2 per cen-
tum of such basic salary and from each Member's basic
salary an amount equal to 71/2 per centum of such basic
salary. From and after the first day of the first pay
period which begins after June 30, 1957, an equal sum.
shall'also be contributed from the respective appropri-
ation or fund which is used for payment of his salary,
pay or compensation, or in the case of an elected official,
from such appropriation or fund as may be available for
payment of other salaries of the same office or establish-
ment. The amounts so deducted and withheld by each
department or agency, together with the amounts so
contributed, shall, in accordance with such procedures
as may be prescribed by the Comptroller General of the
United States, be deposited by the department or agency
in the Treasury of the United States to the credit of the
fund. There shall also be so credited all deposits made
by employees or Members under this section.
(b) Each employee or Member shall be deemed to
.consent and agree to such deductions from basic salary
and payment less such deductions shall be a full and
complete discharge and acquittance of all claims and
demands whatsoever for all regular services during the
period covered by such payment, except the right to the
benefits to which he shall be entitled under this Act, not-
withstanding any law, rule, or regulation affecting the
'individual's salary.
(c) Each employee or Member credited with civilian
service after July 31, 1920, for which, for any reason
whatsoever, no retirement deductions or deposits have
been made, may deposit with interest an amount equal
to the following percentages of his basic salary received
for such service:
Percentage of
basic salary Service period
1920
tb June 30, 1926
August 1
Employee
2Y2
,
,
----------
----_.
31/2 ---------- July 1, 1926, to June 30,1942
5------------ July 1,1942, to June 30, 1948
6------------ July 1, 1948, to October31, 1956
61/2 ---------- After October 31, 1956
Member for
21/2 ---------- August 1,1920, to June 30, 1926
Member
3% ----------
July 1,1926, to June 30,1942
service.
5------------
July 1, 1942, to August 1, 1946
6------------
August 2, 1946, to October 31, 19M
71/2 ----------
After October 31, 1956
(d) Each employee or Member who has received a
refund of retirement deductions under this or any other
retirement system established for employees of the Gov-
ernment covering service for which he may be allowed
credit under this Act may deposit the amount received,
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Amended
June 29, 1967,
elrective
Oct. 1, 1956.
Amended
Aug. 27, 1958,
efective
War. 1, 1958.
with interest. No credit shall be allowed for the service
covered by the refund until the deposit is made.
(e) Interest under subsection (c) or (d) shall be com-
puted from the midpoint of each service. period included
in the computation, or from the date refund was paid, to
the date of deposit or commencing date of annuity,
whichever is earlier. The interest shall be computed at
the rate of 4 per centum per annum to December 31,
1947, and 3 per centum per annum thereafter com-
pounded annually. Such deposit may be made in one
or more installments. * * * No interest shall be charged
for any period of separation from the service which be-
gan before October 1, 1956. * * *
(f Under such regulations as may be prescribed b
the Commission, amounts deducted under subsection (a~
and deposited under subsections (c) and (d) shall be
entered on individual retirement records.
( ) No deposit shall be required for any service prior
to August 1, 1920, for periods of military service or for
any service for the Panama Railroad Company prior to
January 1, 1924.
* * (h) For purposes of survivor annuity, deposits
authorized by subsections (c) and (d) may also be made
by the survivor of an employee or Member. * * *
SEC. 5. (a) Except as hereinafter provided, an em-
ployee who shall have attained the age of seventy years
and completed fifteen years of service shall be automat-
ically separated from the service. Such separation shall
be effective on the last day of the month in which such
employee attains the age of seventy years or completes
fifteen years of service if then beyond such age, and all
salary shall cease from that day.
(b) Each employing office shall notify each employee
under its direction of the date of such separation from
the service at least sixty days in advance thereof : Pro-
vided, That subsection (a) shall not take effect without
the consent of the employee until sixty days after he
has been so notified.
(c) The President may, by Executive order,' exempt
from automatic separation under this section any em-
ployee when, in his judgment, the public interest so
requires.
(d) The automatic separation provisions of this sec-
tion shall not apply to any person named inany Act of
Congress providing for the continuance of such person
1 This authority was, except as regards Presidential appointees, delegated to the Civil
Service Commission by Executive Order 10682, dated October 22, 1956.
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in the service, to any Member, to any congressional em-
ployee, to the Architect of the Capitol or any employee
under the office of the Architect of the Capitol, or to any
employee in the judicial branch who has been appointed
to hold office for a definite term of years.
(e) In the case of an employee of The Alaska Rail-
road, Territory of Alaska, or an employee who is a cit-
izen of the United States employed on the Isthmus of
Panama by the Panama Canal Company or the Canal
Zone Government, the provisions of this section shall
apply upon his attaining the age of sixty-two years and
completing fifteen years of service on the Isthmus of
Panama or in the Territory of Alaska.
IMMEDIATE RETIREMENT
SEC. 6. (a) Any employee who attains the age of
sixty years and completes thirty years of service shall,
upon separation from the service, be paid an annuity
computed as provided in section 9.
(b) Any employee who attains the age of fifty-five
years and completes thirty years of service shall, upon
separation from the service prior to attainment of the
age of sixty years, be paid a reduced annuity computed
as provided in section 9.
(c) Any employee the duties of whose position are
primarily the investigation, apprehension, or detention
of persons suspected or convicted of offenses against the
criminal laws of the United States, including any em-
ployee engaged in such activity who has been transferred
to a supervisory or administrative position, who attains
the age of fifty years and completes twenty years of
service in the performance of such duties, may, if the
head of his department or agency recommends his re-
tirement and the Commission approves, voluntarily re-
tire from the service and be paid an annuity computed
as provided in section 9. The head of the department
or agency and the Commission shall give full considera-
tion to the degree of hazard to which such employee is
subjected in the performance of his duties, rather than
the general duties of the class of the position held by
such employee. The word "detention", as used in this
subsection, shall be construed to include the duties of
1) all employees of the Bureau of Prisons and
Fe oral Prison Industries, Incorporated,
(2) all employees of the Public Health Service
assigned to the field service of the Bureau of Prisons
or to the field service of Federal Prison Industries,
Incorporated,
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(3) all civilian employees employed in the field
services at Army or Navy disciplinary barracks or
at confinement and rehabilitation facilities operated
by any of the United States armed services, and
(4) all employees of the Department of Correc-
tions of the District of Columbia, its industries and
utilities,
whose duties in connection with persons in detention
suspected or convicted of offenses against the criminal
laws of the United States or of the District of Columbia
or offenses against the punitive articles of the Uniform
Code of Military Justice require frequent (as deter-
mined by the appropriate administrative authority with
the concurrence of the Commission) direct contact with
such persons in the detention, direction, supervision, in-
spection, training, employment, care, transportation, or,
rehabilitation of such persons.
(d) Any employee who completes twenty-five years
of service or who attains the age of fifty years and com-
pletes twenty years of service shall upon involuntary
separation from the service not by removal for cause on
charges of misconduct or delinquency, be paid a reduced
annuity computed as provided in section 9.
(e) Any employee who attains the age of sixty-two
years and completes five years of service, shall, upon
separation from the service, be paid an annuity com-
Amended puted as provided in section 9.
July v, 1960.. (f) Any Member who attains the age of sixty-two
years and completes five years of * * * civilian service
* * *, or who attains the age of sixty years and com-
pletes ten years of Member service, shall, upon separa-
tion from the service, be paid an annuity computed as
provided in section 9. Any Member who attains the
age of fifty-five years and completes thirty years of serv-
ice shall, upon separation from the service prior to at-
tainment of the age of sixty years, be paid a reduced
annuity computed as provided in section 9. Any Mem-
ber who completes twenty-five years of service, or who
ame 1291960. attains the age of fifty years * * * and (1) completes
twenty years of service or (2) shall have served in nine
Con resses * * *, shall, upon separation from the serv-
ice (other than separation by resignation or expulsion),
be paid a reduced annuity computed as provided in sec-
tion 9. No Member or survivor of a Member shall be
entitled to receive an annuity under this Act unless there
Amended shall have been deducted or deposited the amounts speci-
A~ Wit, e 1958, fled in section 4 with respect to his last five years of * * *
Mar. 1, 1958. civilian service. * * *
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DISABILITY RETIREMENT
SEc..7. (a) Any employee who completes five years of
civilian service and who is found by the Commission to
have become disabled shall, upon his own application or
upon application by his department or agency, be re-
tired on an annuity computed as provided in section 9.
Any Member who completes five years of Member serv-
ice and who is found by the Commission to have become
disabled shall, upon his own application, be retired on
an annuity computed as provided in section 9.
(b) No claim shall be allowed under this section un-
less the application is filed with the Commission prior
to separation of the employee or Member from the serv-
ice or within one year thereafter. This time limitation
may be waived by the Commission for an individual
who at the date of separation from service or within one
year thereafter is mentally incompetent, if the applica-
tion is filed with the Commission within one year from
the date of restoration of such individual to competency
or the appointment of a fiduciary, whichever is the
earlier.
(c) Each annuitant retired under this section or under
!section 6 of the Act of May 29, 1930, as amended, unless
his disability is permanent in character, shall at the ex-
piration of one year from the date of such retirement
and annually thereafter, until reaching age sixty, be
examined under the direction of the Commission. If
the annuitant fails to submit to examination as required
under this section, payment of the annuity shall be sus-
pended until continuance of the disability is satisfac-
torily established.
* * * (d) If such annuitant, before reaching age Amended
1e1.
sixty, recovers from his disability, payment of the an-
nuity shall cease upon reemployment by the Government
or one year from the date of the medical examination
showing such recovery, whichever is earlier. If such
annuitant, before reaching age sixty, is restored to an
earning capacity fairly comparable to the current rate of
compensation of the position occupied at the time of re-
tirement, payment of the annuity shall cease upon reem-
ployment by the Government or one year from the end
of the calendar year in which earning capacity is so re-
stored, whichever is earlier. Earning capacity shall be
deemed restored if, in each of two succeeding calendar
years, the income of the annuitant from wages or self-
employment, or both, shall equal at least 80 per centum
of the current rate of compensation of the position occu-
pied immediately prior to retirement.
(e) If such annuitant whose annuity is discontinued
under subsection (d) is not reemployed in any position
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included in the provisions of this Act, he shall be con-
sidered except for service credit, as having been invol-
untarily separated from the service for the purposes of
this Act as of the date of discontinuance of the disability
annuity and shall, after such discontinuance, be entitled
to annuity in accordance with the applicable provision of
this Act. In the case of an annuitant those annuity is
heretofore or hereafter discontinued because of an earn-
ing capacity provision of this or any prior law and such
annuitant is not reemployed in any position included in
the provisions of this Act, annuity at the same rate shall
be restored effective the first of the year following any
calendar year in which his income from wages or self-
employment, or both, is less than 80 per centum of the
current rate of compensation of the position occupied
immediately prior to retirement, if he has not recovered
from the disability for which he was retired. In the case
of an annuitant whose annuity is heretofore or hereafter
discontinued because of a medical finding that the an-
nuitant has recovered from disability and such annuitant
is not reemployed in any position included in the provi-
sions of this Act, annuity at the same rate shall be re-
stored effective from the date of medical examination
showing a recurrence of such disability. Neither the
second nor third sentence of this subsection shall be ap-
plicable in the case of any person receiving or eligible to
receive annuity under the first sentence hereof and who
has reached the age of sixty-two ears. * * *
(f) No person shall be entitled to receive an annuity
under this Act and compensation for injury or disability
to himself under the Federal Employees' Compensation
.Act of September 7,1916, as amended, covering the same
period of time. This provision shall not bar the right
of any claimant to the greater benefit conferred by either
Act for any part of the same period of time. Neither
this pprovision nor any
as prevision in such Act of Septem-
ber 7, 1916, ded, shall deny to any person an
annuity
count accruing to amen such person under this Act on. a -
o
b f service rendered b him, or deny anyy concurrent
benefit to such person under such Act of ?t ember 7,
1916, as amended, on account of the death oany other
persona
(g) Notwithstanding any provision of law to the con-
trary, the right of any person entitled to an annuity
under this Act shall not be affected because such person
has received an award of compensation in a lump sum
a Public Law 86-767, approved Sept. 18, 1960, authorizes the making of scheduled
disability payments and furnishing of medical services to which entitled under the Federal
(Employees Compensation Act in addition to annuity due.
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under section 14 of the Act of September 7, 1916, as
amended, except that where such annuity is payable on
account of the same disability for which compensation
under such section has been paid, so much of such com-
pensation as has been paid for any period extended be-
yond the date such annuity becomes effective, as
determined by the Department of Labor, shall be re-
funded to the Department of Labor, to be covered into
the Federal Employees' Compensation Fund. Before
such person shall receive such annuity he shall (1) refund
to such Department the amount representing such com-
muted payments for such extended period, or (2) au-
thorize the deduction of such amount from the annuity
payable to him under this Act, which amount shall be
transmitted to such Department for reimbursement to
such fund. Deductions from such annuity may be made
from accrued and accruing payments, or may be pro-
rated against and paid from accruing payments in such
manner as the Department of Labor shall determine,
whenever it finds that the financial circumstances of the
annuitant are such as to warrant such deferred refunding.
SEC. 8. (a) Any employee who is separated from the
service or transferred to a position not within the pur-
view of this Act after completing five years of civilian
service may be paid an annuity beginning at the age of
sixty-two years computed as provided in section 9.
(b) Any Member who on or after January 1, 1956,
has been or is separated from the service as a Member
after completing five years of * * * civilian service
* * *, may hereafter be paid an annuity beginning at
the age of sixty-two years, computed as provided in
section 9. Any Member who is separated from the serv-
ice after completing ten or more years of Member service
may be paid an annuity beginning at the age of sixty
years, computed as provided in section 9. * * Any
Member who is separated from the service after com-
pleting twenty or more years of service (including ten
or more years of Member service) may be paid a reduced
annuity beginning at the age of fifty years, computed
as provided in section 9. * *
Amended
July 7, 1960.
Ameuded
July 12, 1960.
SEC. 9. (a) Except as otherwise provided in this sec-
tion, the annuity of an employee retiring under this Act
shall be (1) the larger of (A) 11/2 per centum of the
average salary multiplied by so much of the total service
i Under Part III of the Act of October 11, 1962, each annuity (except any purchased
by voluntary contributions) commencing between January 2, 1963, and December 31, 1963,
is increased by 4 per centum, by 3 per centum if it commences between January 1, 1964,
and December 31, 1964, by 2 per centum if it commences in the calendar year 1965, or
by 1 per centum if commencing in calendar year 1960, with each percentage increase
passing along to any qualified survivor.
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Amended
July, 7, 1964),
and
Oct. 4, 1961.
Amendied
July 7, 1960,
and,
Oct. 4, 1961.
as does not exceed five years, or (B) 1 per centum of
the average salary, plus $25, multiplied by so much of
the total service as does not exceed five years, plus (2)
the larger of (A) 13/4 per centum of the average salary
multiplied by so much of the total service as exceeds five
years but does not exceed ten years, or (B) 1 per centum
of the average salary, plus $25, multiplied by so much of
the total service as exceeds five years but does not exceed
ten years, plus (3) the larger of (A) 2 per centum of the
average salary multiplied by so much of the total service
as exceeds ten years, or (B) 1 per centum of the average
salary, plus $25, multiplie by so much of the total serv-
ice as exceeds ten years : Provided, That the annuity shall
not exceed 80 per centum of the average salary : Provided
further, That the annuity of an employee retiring under
section 7 shall be at least (1) 40 per centum of the aver-
age salary or (2) the sum obtained under this subsection
after increasing his total service by the period elapsing
between the date of separation and the date he attains
the age of sixty years, whichever is the lesser, but this
proviso shall not increase the annuity of any survivor.
* * * (b) The annuity of a congressional employee
or former congressional employee retiring under this
Act shall be computed as provided in subsection (a),
except that with respect to so much of his service as a
congressional employee and his military service as does
not exceed a total of fifteen years, and with respect to
any Member service, the annuity shall be computed by
multiplying 21/,, per centum of the average salary by the
years of such service : * * * Provided, That the annuity
shall not exceed 80 per centum of the average salary.
This subsection shall not apply unless the congressional
employee * * * or former congressional employee (1)
has had at least; five years' service as a congressional em-
ployee or Member, or any combination of such service,
and (2) has had deductions withheld from his salary
or made deposit covering his last five years of civilian
service : * * * Provided further, That the annuity of a
congressional employee retiring under section 7 shall be
at least (1) 40 per centum of the average salary or (2)
the sum obtained under this subsection after increasing
his service as a congressional employee by the period
elapsing between the date of separation and the date he
attains the age of sixty years, whichever is the lesser, but
this provision shall not increase the annuity of any
survivor.
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* * * (c) The annuity of a Member, or of a former Amended
Member with title to Member annuity, retiring under July 7. 1960.
this Act shall be computed as provided in subsection (a),
except that if he has had at least five years' service as a
Member or a congressional employee, or any combina-
tion of such service the annuity shall be computed, with
respect to (1) his service as a Member and so much of
his military service as is creditable for the purposes of
this clause, and (2) so much of his congressional em-
ployee service as does not exceed fifteen years, by mul-
tiplying 21/2 per centum of the average salary by the
years of such service. * * * In no case shall an annuity
computed under this subsection exceed 80 per centum of
the basic salary that he is receiving at the time of such
separation from the service, and in no case shall the
annuity of a Member retiring under section 7 be less than
(A) 40 per centum of the average salary or (B) the
sum obtained under this subsection after -increasing his
Member service by the period elapsing between the date
of separation and the date he attains the age of sixty
years, whichever is the lesser, but this provision shall not
increase the annuity of any survivor.
(d) The annuity as hereinbefore provided, for an em-
ployee retiring under section 6 (b) or 6 (d) or a Member
retiring under the second or third sentence of section
6(f) * * * or the third sentence of section 8(b) * * *, Amended
shall be reduced by one-twelfth of 1 per centum or each Jnly 12' 1980'
full month not in excess of sixty, and one-sixth of 1 per
centum for each full month in excess of sixty, such em-
ployee or Member is under the age of sixty years at date
of separation.
(e) The annuity of an employee retiring under section
6(c) shall be 2 per centum of the average salary mul-
tiplied by the total service : Provided, That the annuity
shall not exceed 80 per centum of the average salary.
(f) The annuity as hereinbefore provided shall be
reduced by 10 per centum of any deposit described in
.section 4(c) remaining unpaid, unless the employee or
Member shall elect to eliminate the service involved for
purposes of annuity computation. Amended
(g) The annuity as hereinbefore provided (ex- Oct. 11, 1962.
eluding any increase because of retirement under section
7) for any married employee or Member retiring under
this Act, or any portion of such annuity designated in
writing for purposes of section 10(a) (1), shall be re-
duced by 21/2 per centum of so much thereof as does not
exceed $3,600 and by 10 per centum of so much thereof
as exceeds $3,600, unless the employee or Member notifies
the Commission in writing at the time of retirement that
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he does not desire his wife or husband to receive an an-
nuity as provided in section 10(a) (1). * * *
(h) Any unmarried employee or Member retiring
under section 6 or 8, and found by the Commission to be
in good health, may at the time of retirement elect a
reduced annuity, in lieu of the annuity as hereinbefore
provided, and designate in writing a person having an
insurable interest in the employee or Member to receive
an annuity after the retired individual's death. The
annuity payable to the employee or Member making such
election shall be reduced by 10 per centum of an annuity
computed as provided in section 9 and by 5 per centum
of an annuity so computed for each full five years the
person designated is younger than the retiring employee
or Member, but such total reduction shall not exceed 40
per centum.
(i) The annuity as hereinbefore provided, for an em-
ployee who is a citizen of the United States, shall be
increased by $36 multiplied by total service in the employ
of either the Alaska Engineering Commission or The
Alaska Railroad in the Territory of Alaska between
March 12, 1914, and July 1, 1923, or in the employ of
either the Isthmian Canal Commission or the Panama
Railroad Company on the Isthmus of Panama between
May 4, 1904, and April 1, 1914.
Amended
Oct. 11, 1962.
Amended
Sept. 6, 1960.
Amended
Oct. 11, 1962.
SURVIVOR ANNUITIES
SEC. 10. (a) (1) * * * If an employee or Member dies
after having retired under any provision of this Act and
is survived by a wife or husband to whom the employee
or Member was married at the time of retirement, such
wife or husband shall be paid an annuity equal to 55 per
centum of an annuity' computed as provided in subsec-
tions (a), (b), (c), (d), (e), and (f) of section 9, as may
apply with respect to the annuitant, or of such portion
thereof as may have been designated in writing for such
purpose by the employee or Member at the time of re-
tirement, unless the employee or Member has notified the
Commission in writing at the time of retirement that he
does not desire his wife or husband to receive such
annuity. * *< *
* * * (2) An annuity computed under this subsec-
tion shall commence on the day after the retired employee
or Member dies, and such annuity or any right thereto
shall terminate on the last day of the month before the
survivor's death or remarriage. * * *
(b) The annuity of a survivor designated under see-
tion 9 (li) shall be * * * 55 per centum * * * of-the reduced
annuity computed as provided in subsections (a), (h),
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(c), (d), (e), (f), and (h) of section 9 as may apply
with respect to the annuitant. * * * The annuity of such
survivor shall commence on the day after the retired
employee or Member dies, and such annuity or any right
thereto shall terminate on the last day of the month
before the survivor's death. * * *
* * * (c) If an employee or a Member dies after
completing at least five years of civilian service, * * *
the widow or dependent widower of such employee or
Member shall be paid an annuity equal to * * * 55 per
centum * * * of an annuity computed as provided in sub-
sections (a), (b), (c), (e), and (f) of section 9 as may
apply with respect to the employee or Member.
The annuity of such widow or dependent widower shall
commence on the day after the employee or Member dies,
and such annuity or any right thereto shall terminate on
the last day of the month before (1) death or remarriage
of the widow or widower or (2) the widower's becoming
capable of self-support. * * *
* * * (d) If an employee or a Member dies after
completing at least five years of civilian service, * * *
or an employee or a Member dies after having retired
under any provision of the Act, and is survived by a wife
or by a husband, each surviving child who received more
than one-half of his support from such employee or
Member shall be paid an annuity equal to the smallest of
(1) 40 per centum of the employee's or Member's average
salary divided by the number of children, (2) $600, or
(3) $1,800 divided by the number of children. If such
employee or Member is not survived by a wife or hus-
band, each surviving child shall be paid an annuity equal
to the smallest of (1) 50 per centum of the employee's
or Member's average salary divided by the number of
children, (2) $720, or (3) $2,160 divided by the number
of children. * * * The child's annuity shall commence
on the day after the employee or Member dies, and such
annuity granted under this Act or under the Act of May
29, 1930, as amended from and after February 28, 1948,
or any right thereto shall terminate on the last day of
the month before (1) his attaining age eighteen unless
incapable of self-support, (2) his becoming capable of
self-support after age eighteen, (3) his marriage, or (4)
his death, except that the annuity of a child who is a
student as described in section 1(j) shall terminate on
the last day of the month before (1) his marriage, (2)
his death, (3) his ceasing to be such a student, or (4) his
attaining age twenty-one. * * * Upon the death of the
surviving wife or husband or termination of the annuity
of the child, the annuity of any other child or children
shall be recomputed and paid as though such wife, hus-
band, or child had not survived the employee or Member.
Amended
Sept. 6, 1960.
Amended
Aug. 27, 1958,
effective
Mar. 1, 1958.
AmendecT
Oct. 11, 1962.
Amended
Sept. 6, 1960.
Amended
Aug. 27, 1958,
effective
Mar. 1, 1958.
Amended
Oct. 11, 1962,
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(e) In case a Member separated from service with
title to a deferred annuity under this Act, either prior
to, on, or after the effective date of the Civil Service
Retirement Act Amendments of 1956, shall hereafter
die before having established a valid claim for annuity
and is survived by a wife or husband to.whom married
at date of separation, such surviving wife or husband
Amended 6 1960, * * * (1) shall be paid an annuity equal to 55 per cen
Oct. 11, rasa, turn of the Members deferred annuity commencing on
the day after the Member's death and terminating on
the last day of the month before death or remarriage of
such surviving wife or husband * * * or (2) may elect
to receive a lump-sum credit in lieu of annuity if such
wife or husband is the person who would be entitled to
the lump-sum credit and files application therefor with
the Commission prior to the award of such annuity.
LUMP-SUM BENEFITS
SEC. 11. (a) Any employee or Member who is sep-
arated from the service, or is transferred to a position
wherein he does not continue subject to this Act, shall
be paid the lump-sum credit provided his separation or
transfer occurs and application for payment is filed with
the Commission at least thirty-one days before the ear-
liest -commencing date of any annuity for which he is
eligible. The receipt of payment of the lump-sum credit
by the individual shall void all annuity rights under this
Act, unless and until he shall be reemployed in the serv-
ice subject to this Act. This subsection shall also apply
to any employee or Member separated prior to the-efFec-
tive date of the Civil Service Retirement Act Amend-
ments of 1956 after completing at least twenty years of
civilian service.
(b) Each present or former employee or Member may,
under regulations prescribed by the Commission, desig-
nate a beneficiary or beneficiaries for the purposes of
this Act.
(c) Lump-sum benefits authorized under subsections
(d), (e), and (f) of this section shall be paid in the fol-
lowing order of precedence to such person or persons
surviving the employee or Member and alive at the date
title to the payment arises, and such payment shall be
a bar to recovery by any other person :
First, to the beneficiary or beneficiaries designated by
the employee or Member in a writing received in the
Commission prior to his death;
Second, if there be no such beneficiary, to the widow
or widower of the employee or Member;
Third, if none of the above, to the child, or children
of the employee or Member and descendants of deceased
children by representation;
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Fourth, if none of the above, to the parents of the
employee or Member or the survivor of them;
Fifth, if none of the above, to the duly appointed
executor or administrator of the estate of the employee
or Member;
Sixth, if none of the above, to other next of kin of the
employee or Member as may be determined by the Com-
mission to be entitled under the laws of the domicile of
the individual at the time of his death.
(d) If an employee or Member dies (1) without a
survivor, or (2) with a survivor or survivors and the
right of all survivors shall terminate before claim for
survivor annuity is filed, or if a former employee or
Member not retired dies, the lump-sum credit shall be
paid.
(e) If all annuity rights under this Act based on the
service of a deceased employee or Member shall terminate
before the total annuity paid equals the lump-sum credit,
the difference shall be paid.
(f) If an annuitant dies, any annuity accrued and
un aid shall be paid.
((g) Any annuity accrued and unpaid upon the termi-
nation (other than by death) of the annuity of any an-
nuitant or survivor annuitant shall be paid to such
person. Any survivor annuity accrued and unpaid upon
the death of any survivor annuitant shall be paid in the
following order of precedence, and such payment shall
be a bar to recovery by any other person :
First, to the duly appointed executor or administrator
of the estate of the survivor annuitant ;
Second, if there is no such executor or administrator,
payment may be made, after the expiration of thirty
days from the date of death of such survivor annuitant,
to such next of kin of the survivor annuitant as may be
determined by the Commission to be entitled under the
laws of the survivor annuitant's domicile at the time of
his death.
* * * (h) (1) Any amounts deducted and withheld from
the basic salary of an employee or Member from the
first day of the first month which begins after he shall
have performed sufficient service (exclusive of any serv-
ice which the employee or Member elects to eliminate for
purposes of annuity computation under section 9) to
entitle him to the maximum annuity provided by section
9, together with interest on such amounts at the rate of
3 per centum per annum compounded annually from the
date of such deductions to the date of retirement or
death, shall be applied toward any deposit due under
section 4, and any balance not so required shall be deemed
to be a voluntary contribution for the purposes of section
12. * * *
Amended
July 12, 1960.
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Amended * * * (2) Any employee-
Oct. 4, 1961. (A) who is separated from the service prior to
July 12, 1960; and
(B) who continues in the service after July 12,
1960, without break in service of one workday or
more,
shall be granted the benefits of paragraph (1) of this sub-
section as if he were separated after July 12, 1960. * * *
ADDITIONAL ANNIIFIUS
Amended
Aug. 14, 1958,
effective
Oct. 1, 1956.
SEC. 12. (a) employee or Member may, under
regulations prescribed by the Commission, voluntarily
contribute additional sums in multiples of $25, but the
total may not exceed 10 per centum of his basic salary
for his creditable service from and after August 1, 1920.
The voluntary contribution account in each case shall be
the stun of such unrefunded contributions, plus interest
at 3 per centum per annum compounded annually to date
of separation or transfer to a position not within the
purview of this Act or, in case of an individual who is
separated with title to a deferred annuity and does not
claim the voluntary contribution account, to the com-
mencing date fixed for such deferred annuity or date of
death, whichever is earlier.
(b)' Such voluntary contribution account shall be used
to purchase at retirement an annuity in addition to the
annuity otherwise provided. For each $100 in such vol-
untary contribution account, the additional annuity shall
consist of $7, increased by 20 cents for each full year, if
any, such employee or Member is over the age of fifty-
five years at the date of retirement.
(c) A retiring employee or Member may elect a re-
duced additional annuity in lieu of the additional an-
nuity described in subsection (b) and designate in
writing a person to receive after his death an annuity of
50 per centum of his reduced additional annuity. The
additional annuity of the employee or Member making
such election shall be reduced by 10 per centum, and by
5 per centum for each full five years the person desig-
nated is younger than the retiring employee or Member,
but such total reduction shall not exceed 40 per centum.
(d) Any present or former employee or Mem-
ber shall be paid the voluntary con ributlon account,
provided application for payment is filed with the Com-
mission prior to receipt of any additional annuity, but
such account shall not in any case include interest beyond
date of payment. Such individual shall thereafter. be
elioible to deposit additional sums under this section only
if fie again becomes subject to this Act after a separation
from the service of more than three calendar days. * * *
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(e) If any present or former employee or Member not
retired dies, the voluntary contribution account shall be
paid under the provisions of section 114c). If all ad-
ditional annuities or any right thereto based on the vol-
untary contribution account of a deceased employee or
Member terminate before the total additional annuity
paid equals such account, the difference shall be paid
under the provisions of section 11(c) .
REEMPLOYMENT OF ANNUITANTS
SEc. 13. (a) Notwithstanding any other provision of
law, an annuitant heretofore or hereafter retired under
this Act shall not, by reason of his retired status, be
barred from employment in any appointive position for
which he is qualified. An annuitant so reemployed shall
serve at the will of the appointing officer.
(b) If an annuitant under this Act (other than (1) a
disability annuitant whose annuity is terminated by
reason of his recovery or restoration of earning capacity,
(2) an annuitant whose annuity was based upon an in-
voluntary separation from the service, excluding a sep-
aration under the automatic separation provisions of this
Act, or (3) a Member retired under this Act) hereafter
becomes employed, or on the date of enactment of the
Civil Service Retirement Act Amendments of 1956 is
serving, in an appointive or elective position, his service
on and after the date he was or is so employed shall be
covered by this Act. No deductions for the fund shall be
withheld from his salary, but there shall be deducted
from his salary, except for lump-sum leave payment pur-
poses under the Act of December 21, 1944, a sum equal to
the annuity allocable to the period of actual employment,
and this provision concerning the lump-sum leave pay-
ments shall also be effective in the case of each retired em-
ployee separated from reemployment after December 15.
1953, and before the effective date of the Civil Service Re-
tirement Act Amendments of 1956: Provided, That if
such annuitant serves on a full-time basis for at least one
year in employment not excluding him under section 2(b)
from coverage, () his annuity upon termination of
employment shall be increased by an annuity computed
under subsections (a), (b), (d), (e), and (f) of section
9 as may apply based upon the period of and the basic
salary (before deduction) average. during, such employ-
ment, .and (2) his lump-sum credit shall not be reduced
by annuity paid during such employment. The employ-
ment of an annuitant under this subsection shall not op-
erate to create an annuity for or in any manner affect the.
Amended
annuity of any survivor. * * * Any such annuitant AmenJuly f 11969.
whose described employment continues for at least five
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years may elect, in lieu of the benefit authorized by the
proviso herein, to have his rights redetermined under the
provisions of this Act upon deposit in the fund of an
Amended amount computed under`sectioii 4 (c) covering such em-
Oct. 4, laal. PtoYmeat. * * * A similar right to redetermination
opt. 4,
after deposit shall be applicable to an annuitant (1)
whose annuity is based on an involuntary separation
from the service, and (2) who is separated, on or after
the date of enactment of this sentence, after a period of
reemployment on a full-time basis which began before
October 1, 1956. * * *
Amended * * * (c) If a Member heretofore or hereafter retired
July 7, 1960. under this Act hereafter becomes employed in an ap-
pointive or elective position, annuity payments shall be
discontinued during such employment and resumed in the
same amount upon termination of such employment,
except that-
(1) any such retired Member or any Member here-
tofore or hereafter separated with title to an immedi-
ate or deferred annuity who .serves or has served, at
any time after separation as a Member, in -an ap-
pointive position m which he is or was subject to
this Act shall, if he -so elects, have his Member an-
nuity computed or recomputed as if such service had
been performed prior to his separation as a Member
and such annuity as so computed or recomputed shall
be effective (A) the day Member annuity com-
mences, (B) the first day of the month following the
date of separation from the appointive position, or
(C) the first day of the first month following the
date of enactment of this Act, whichever day is the
latest;
(2) if such retired Member shall have become
employed after December 31, 1958, in an appointive
position on an intermittent-service basis, (A) his
annuity shall continue during such employment and
shall not be increased as a result of service performed
during such employment, (B) no retirement deduc-
tions shall be withheld from his salary, (C) there
shall be deducted from his salary, except for lump-
sum payment purposes under the Act of December
21, 1944, a sum equal to the annuity allocable to the
period of actual employment, and (D) the amounts
so deducted shall be deposited in the Treasury of the
United States to the credit of the fund;
(3) if such retired Member shall have become
employed after December 31, 1958, in an appointive
position without compensation on a full-time, or a
substantially full-time, basis, his annuity shall con-
tinue during such employment and shall not be
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increased as a result of service performed during
such employment; and
(4) if such retired Member takes office as Member
and gives notice as provided in section 2(c), his
service as Member during such period shall be
credited in determining his right to and the amount
of his subsequent annuity.
This subsection shall not apply to a Member appointed.
by the President of the United States to a position not
requiring confirmation by the Senate. * * *
Src. 14. * * * (a) Each annuity is stated as an
annual amount, one-twelfth of which, fixed at the nearest
dollar, constitutes the monthly rate payable on the first
business day of the month after the month or other period
for which it has accrued.
(b) Except as otherwise provided, the annuity of an
employee or Member shall commence on the day after
separation from the service, or on the day after salary
ceases and the employee or Member meets the service and
the age or disability requirements for title thereto. The
annuity of an employee or Member under section 8 shall
commence on the day after the occurrence of the event on
which payment thereof is based. An annuity otherwise
payable from the fund allowed on or after date of enact-
ment of this Act shall commence on the day after the
occurrence of the event on which payment thereof is
based.
(c) The annuity of a retired employee or Member shall
terminate on the day death or any other terminating
event provided in this Act occurs. An annuity other-
wise payable from the fund on or after date of enact-
ment of this Act shall terminate (1) in the case of a
retired employee or Member, on the day death or any
other terminating event occurs, or (2) in the case of a
survivor, on the last day of the month before death or any
other terminating event occurs. * *
(d) Any person entitled to annuity from the fund may
decline to accept all or any part of such annuity by a
waiver signed and filed with the Commission. Such
waiver may be revoked in writing at any time, but no
payment of the annuity waived shall be made covering
the period during which such waiver was in effect.
(e) Where any payment is due a minor, or a person
mentally incompetent or under other legal disability,
such payment may be made to the person who is con-
stituted guardian or other fiduciary by the law of the
State of residence of such claimant or is otherwise legally
vested with the care of the claimant or his estate : Pro-
Amended
Sept. 6, 1960.
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26
vided, That where no guardian or other fiduciary of the
person under legal disability has been appointed under
the laws of the State of residence of the claimant, pay-
ment may be made to any person who in the judgment of
the Commission is responsible for the care of the claim-
ant, and such payment shall be a bar to recovery by any
other person.
EXEMPTION FROM LEGAL PROCESSES
SEC. 15. (a) None of the moneys mentioned in this
Act shall be assignable, either in law or equity, or be sub-
ject to execution, levy, attachment, garnishment, or other
legal process.
(b) Notwithstanding any other provision of law, there
shall be no recovery of any payments under this Act from
any person when, in the judgment of the Commission,
such person is without fault and such recovery would be
contrary to equity and good conscience; nor shall there
be any withholding or recovery of any moneys mentioned
in this Act on account of any certification or payment
made by any former employee of the United States in
the discharge of his official duties unless the head of the
department or agency on behalf of which the certification
or payment was made certifies to the Commission that
such certification or payment involved fraud on the part
of such employee.
SEC. 16. (a) This Act shall be administered by the
Commission. Except as otherwise specifically provided
herein, the Commission is hereby authorized and directed
to perform, or cause to be performed, any and all acts and
to make such rules and regulations as may be necessary
and proper for the purpose of carrying the provisions of
this Act into full force and effect.
(b) Applications under this Act shall be in such form
as the Commission shall prescribe, and shall be supported
by such certificates from departments or agencies as the
Commission may deem necessary to the determination of
the rights of applicants. The Commission shall ad-
judicate all claims under this Act.
(c) Questions of dependency and disability arising
under this Act shall be determined by the Commission
and its decisions with respect to such matters shall be fi-
nal and conclusive and shall not be subject to review.
The Commission may order or direct at any time such
medical or other examinations as it shall deem necessary
to determine the facts relative to the disability or de-
pendency of any person receiving or applying for annu-
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ity under this Act, and may suspend or deny any such
annuity for failure to submit to any such examination.
(d) An appeal to the Commission shall lie from any
administrative action or order affecting the rights or
interests of any person or of the United States under this
Act, the procedure on appeal to be prescribed by the
Commission.
(e) Fees for examinations made under the provisions
of this Act, by physicians or surgeons who are not med-
ical officers of the United States, shall be fixed by the
Commission, and such fees, together with reasonable
traveling and other expenses incurred in connection with
such examinations, shall be paid out of the appropriations
for the cost of administering this Act.
(f) The Commission shall publish an annual report
upon the operations of this Act and shall include in each
such report a statement with respect to the status of the
fund on a normal cost plus interest basis.
(g) The Commission is hereby authorized and di-
rected to select three actuaries, to be known as the Board
of Actuaries of the Civil Service Retirement System. It
shall be the duty of such Board to report annually upon
the actuarial status of the system and to furnish its advice
and opinion on matters referred to it by the Commission,
and it shall have the authority to recommend to the Com-
mission and to the Congress such changes as in the
Board's judgment may be deemed necessary to protect
the public interest and maintain the system upon a sound
financial basis. The Commission shall keep or cause to
be kept such records as it deems necessary for making
periodic actuarial valuations of the. Civil Service Retire-
ment System, and the Board shall make such valuations
at intervals of five years, or oftener if deemed necessary
by the Commission. The compensation of the members
of the Board of Actuaries, exclusive of such members as
are in the employ of the United States, shall be fixed by
the Commission.
CIVIL SERVICE RETIREMENT AND DISABILITY FUND
SEC. 17. (a) The fund is hereby appropriated for the
payment of benefits as provided in this Act.'
(b) The Secretary of the Treasury is hereby author-
ized to accept and credit to the fund moneys received in
the form of donations, gifts, legacies, or bequests, or
otherwise contributed for the benefit of civil service
employees generally.
a Title I of the Act of August 28, 1958, bars use of money in the fund to pay any
increase in annuity benefits or any new annuity benefits authorized by amendment
enacted after August 28 1958, unless and until Congress appropriates an amount suf-
ficient to prevent immediate increase in the unfunded accrued liability of the fund.
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(c) The Secretary of the Treasury shall immediately
invest in interest-bearing securities of the United States,
such currently available portions of the fund as are not
immediately required for payments from the fund? and
the income derived from such investments shall constitute
a part of the fund.
Amended * * * (d) The purposes for which obligations of the
Oct. 4, 1961. United States may be issued under the Second Liberty
Bond Act, as amended, are hereby extended to authorize
the issuance at par of public-debt obligations for pur-
chase by the fund. Such obligations issued for purchase
by the fund shall have maturities fixed with due regard
for the needs of the fund and bear interest at a rate
equal to the average market yield computed as of the end
of the calendar month next preceding the date of such
issue, borne by all marketable interest-bearing obliga-
tions of the United States then forming a part of the
public debt that are not due or callable until after the
expiration of four years from the end of such calendar
month, except that where such average market yield is
not a multiple of one-eighth of 1 per centum, the rate of
interest on such obligations shall be the multiple of one-
eighth of 1 per centum nearest such average market yield.
The Secretary of the Treasury may purchase other inter-
est-bearing obligations of the United States, or obliga-
tions guaranteed as to both principal and interest by the
United States, on original issue or at the market price
only if he determines that such purchases are in the pub-
lic interest. * * *
(e) The Commission shall submit estimates of the
appropriations necessary to finance the fund on a normal
cost plus interest basis and to continue this Act in full
force and effect.
Amended
Oct. 11, 1962.
* * * COST-OF-LIVING ADJUSTMENT OF ANNUITIES
SEC. 18. (a) After January 1, 1964, and after each
succeeding January 1, the Commission shall determine
the per centum change in the price index from the later
of 1962 or the year preceding the most recent cost-of-
living adjustment to the latest complete year. On the
basis of such Commission determination, the following
adjustments shall be made:
(1) Effective April 1, 1964, if the change in the
price index from 1962 to 1963 shall have equaled a
rise of at least 3 per centum, each annuity payable
from the fund which has a commencing date earlier
than January 2, 1963, shall be increased by the per
centum rise in the price index adjusted to the nearest
one-tenth of 1 per centum.
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(2) Effective April 1 of any year other than 1964
after the price index change shall have equaled a
rise of at least 3 per centum, each annuity payable
from the fund which has a commencing date earlier
than January 2 of the preceding, year shall be in-
creased by the per centum rise in the price index
adjusted to the nearest one-tenth of 1 per centum.
(b) Eligibility for an annuity increase under this sec-
tion shall be governed by the commencing date of each
annuity payable from the fund as of the effective date
of an increase, except as follows :
(1) Effective from the date of the first increase
under this section, an annuity payable from the fund
to an annuitant's survivor (other than a child en-
titled under section 10(d)), which annuity com-
menced the day after the annuitant's death, shall be
increased as provided in subsection (a) (1) or (a) (2)
if the commencing date of annuity to the annuitant
was earlier than January 2 of the year preceding the
first increase.
(2) Effective from its commencing date, an an-
nuity payable from the fund to an annuitant's sur-
vivor (other than a child entitled under section
10 (d)) , which annuity commences the day after the
annuitant's death and after the effective date of the
first increase under this section, shall be increased
by the total per centum increase the annuitant was
receiving under this section at death.
() For purposes of computing an annuity which
commences after the effective date of the first in-
crease under this section to a child under section
10(d), the items $600, $720, $1,800, and $2,160 ap-
pearing in section 10(d) shall be increased by the
total per centum increase allowed and in force under
this section, and, in case of a deceased annuitant,
the items 40 per centum and 50 per centum appearing
in section 10(d) shall be increased by the total per
centum increase allowed and in force under this
section to the annuitant at death. Effective from
the date of the first increase under this section, the
provisions of this paragraph shall apply as if such
first increase were in effect with respect to computa-
tion of a child's annuity under section 10(d) which
commenced between January 2 of the year preceding
the first increase and the effective date of the first
increase.
(c) No increase in annuity provided by. this section
shall be computed on any additional annuity purchased
at retirement by voluntary contributions.
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(d) The monthly installment of annuity after adjust-
ment under this section shall be fixed at ' the nearest
dollar. * * *
SEC. 19. This Act may be cited as the "Civil Service
Retirement Act".
NOTE.. +The Act of September 26, 1961, Public Law 87-299, bars payment of annuity
to employees and to their survivors where such employees are convicted of certain Federal
offenses cited or commit certain acts enumerated therein involving the national security
of the United States.
(THIS ACT EFFECTIVE OCTOBER 1, 1956, EXCEPT AS TO AMENDMENTS
OTHERWISE NOTED)
For sale by the Superintendent of Documents U.S. Government Printing Office
Washington 25, D.C. - I rice 15 cents
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