I ask that the bill, together with a complete analyses that has been prepared by the staff, be inserted in the hearing record at this point. (The above-mentioned documents are as follows:)

[S. 2875, 84th Cong., 2d sess.]

A BILL To revise the Civil Service Retirement Act

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Civil Service Retirement Act of May 29, 1930, as amended, is amended to read as follows:

"DEFINITIONS

"SEC. 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 a United States Senator, Representative in Congress, Delegate from a Territory, or the Resident Commissioner from Puerto Rico, and, except for purposes of section 2, shall mean a Member to whom this Act applies.

"(c) The term 'congressional employee' means an employee 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 Representatives 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 official duties, the Architect of the Capitol and the employees of the Architect of the Capitol, a member of the Capitol Police force, an employee of the Vice President if such employee's compensation is disbursed by the Secretary of the Senate, and an employee of a Member if such employee'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: Provided, That for employees paid on a fee basis, the maximum amount of basic salary which may be used shall be $10,000 per annum. For a Member, the term 'basic salary' shall include, from April 1, 1954, to February 28, 1955, the 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 thereon 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, an employee's rates of basic salary in effect during such period, with each rate weighted by the time it was in effect: Provided, That the period for a Member shall be his Member service from and after August 3, 1946.

"(f) The term 'fund' shall mean the civil service retirement 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 prior to becoming so disabled.

"(h) The term 'widow', for purposes of section 10, shall mean the surviving wife of an employee or Member 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 10, 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 pport 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 of his support from and lived with the Member of 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 is incapable of self-support.

"(k) The term 'Government' shall mean the executive, 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 unrefunded amount consisting of (1) the retirement deductions 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 thereafter compounded annually to date of separation or transfer or December 31, 1956, whichever is earlier, in case of an employee or Member who is separated with title to a deferred annuity and does not claim the lump-sum credit, to the commencing date fixed for such deferred annuity or date of death or December 31, 1956, whichever is earlier. 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.

"(m) The term 'Commission' shall mean the United States Civil Service Commission.

"(n) The term 'annuitant' shall mean any former employee 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.

"(p) The term 'survivor annuitant' shall mean a survivor 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, 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 of Congress 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 Member.

"COVERAGE

"SEC. 2. (a) This Act shall apply to each employee and Member, except as hereinafter provided.

"(b) This Act shall not apply to any elective officer in the executive branch of the United States Government, 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 writing, within six months after the date of entrance to the service, 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 congressional employee unless such employee is appointed at an annual rate of salary and gives notice in writing, within six months after the date of entrance to the service, to the officers 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 recommendation by its Commissioners, whose tenure of office or employment is temporary or intermittent, except that no employee shall be excluded under this subsection after he shall have had more than six months' continuous service.

"(f) This Act shall not apply to any temporary employee of the Administrative Office of the United States Courts, of the courts specified in section 610 of title

28 of the United States Code, of the Office of the Architect of the Capitol, or of the Library of Congress.

"(g) Nothing in this section shall operate to deny coverage under this Act to any person who was subject to this Act on December 31, 1956.

"CREDITABLE SERVICE

"SEC. 3. (a) An employee's services for the purposes of this Act including service as a substitute in the postal service shall be credited from the date of original employment to the date of the separation upon which title to annuity is based in the civilian service of the Government. 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 shall be allowed credit for periods of military service prior to the date of the separation upon which title to annuity is based; however, if an employee is awarded retired pay on account of military service, the period of service upon which such retired pay is based shall not be included, unless such retired pay is awarded on account of a service-connected disability incurred in combat with an enemy of the United States or resulting from an explosion of an instrument of war or is awarded under title III of Public Law 810, Eightieth Congress. A Member shall be allowed credit 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 proclaimed by the President or declared by the Congress and prior to his final separation from service as Member. A Member 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.

"(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 President or declared by the Congress, has left or leaves his position to enter the military service shall not be considered, 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, 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 based on such separation. Failure to meet this service requirement shall not deprive the individual or his survivors of any annuity rights which attached upon a previous separation.

"(h) An employee who (1) has at least six years' Member service and (2) has served as Member at any time after August 2, 1946, shall not be allowed credit for any service which is used in the computation of an annuity under section 9 (c). "(i) Subject to the conditions contained in this subsection, any employee who is serving in a position within the purview of this Act at the time of his retirement or death, shall be allowed credit for all periods of service performed by him as a project employee (other than an employee appointed from relief rolls) of a Federal relief agency, or in the employ of a State, or any instrumentality thereof, exclusively in the carrying out of programs authorized by Act of Congress and financed in whole or in part by Federal funds, but only if—

"(1) the performance of such service is certified, in a form prescribed by the Civil Service Commission, by the head, or by a person designated by the

head, of the department, agency, or independent establishment in the executive branch of the Government of the United States which administers the provisions of law authorizing the performance of such service, or is otherwise established to the satisfaction of the Commission;

"(2) the employee shall have to his credit a total period of not less than five years of allowable service under this Act, exclusive of service allowed by this subsection;

"(3) the employee shall have deposited with interest at 4 per centum per annum to December 31, 1947, and 3 per centum per annum thereafter, compounded on December 31 of each year, to the credit of the civil-service retirement and disability fund a sum equal to the aggregate of the amounts which would have been deducted from his basic salary, pay, or compensation during the period of service claimed under this subsection if during such period he had been subject to this Act;

"(4) such period of service is excluded from credit for the purposes of any annuity received by such employee from a State.

As used in this subsection the term "State" includes Alaska, Hawaii, and Puerto Rico.

"DEDUCTIONS AND DEPOSITS

"SEC. 4. (a) There shall be deducted from each employee's and Member's basic salary an amount equal to 6 per centum of such basic salary. The amounts so deducted shall, under procedure prescribed by the Comptroller General of the United States, be deposited 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, notwithstanding any law, rule, or regulation affecting the individual's salary.

"(c) Each employe 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:

"(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 Government covering service for which he may be allowed credit under this Act may deposit the amount received, 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 computed 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, compounded annually. Such deposit may be made in one or more installments.

"(f) Under such regulations as may be prescribed by the Commission, amounts deducted under subsection (a) and deposited under subsections (c) and (d) shall be entered on individual retirement records.

"(g) 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.

"MANDATORY SEPARATION

"SEC. 5. (a) Except as hereinafter provided, an employee shall be automatically separated from the service on the last day of the month in which he attains the age of seventy years, and all salary shall cease from that date.

"(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: Provided, 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 employee when, in his judgment, the public interest so requires.

"(d) The automatic separation provisions of this section shall not apply to any persson named in any Act of Congress providing for the continuance of such person in the service, to any Member, to any congressional employee, or to any employee in the judicial branch within the classes made subject to the Civil Service Retirement Act of May 29, 1930, as amended, by the Act of July 13, 1937.

"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 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 employee 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 retirement and the Commission approves, voluntarily retire 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 consideration 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 all officers and employees in the field service of the Bureau of Prisons, Federal Prison Industries, Incorporated, and officers and employees of the Public Health Service assigned to such field service, and all other officers and employees of the Bureau of Prisons and Federal Prison Industries, Incorporated, whose duties in connection with persons in detention suspected or convicted of offenses against the criminal laws of the United States, or the District of Columbia, or against the punitive articles of the Uniform Code of Military Justice, involve direct contact with such persons in their direction, supervision, inspection, training, or employment.

"(d) Any employee who completes twenty-five years of service or who attains the age of fifty years and completes 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 computed as provided in section 9.

"(f) Any Member who attains the age of sixty-two years and completes six years of Member service, or who attains the age of sixty years and completes ten years of Member service, shall, upon separation from the service be paid an annuity computed as provided in section 9. No Member shall be entitled to receive an annuity under this Act unless there shall have been deducted or deposited the amounts specified in section 4 with respect to his last five years of Member service.

"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 retired on an