78 STAT. ] PUBLIC LAW 88-643-OCT. 13, 1964 1043
Public Law 88-643
AN A C T October 13, 1964
To provide for the establishment and maintenance of a Central Intelligence [H. R. 8427]
Agency Retirement and Disability System for a limited number of employees,
and for other purposes.
Be it encwted hy the Senate and House of Representatives of the
Central Intelli-
United States of America in Congress assemhled^ gence Agency F!e-
tirement Act of
TITLE I—TITLE AND DEFINITIONS Employee's!''""
PART A — T I T L E
SEC. 101. This Act may be cited as the "Central Intelligence Agency
Retirement Act of 1964 for Certain Employees".
PART B—DEFINITIONS
SEC. 111. When used in this Act, the term—
(1) "Agency" means the Central Intelligence Agency;
(2) "Director" means the Director of Central Intelligence;
and
(3) "Qualifying service" means service performed as a par-
ticipant in the system or, in the case of service prior to designa-
tion, service determined by the Director to have been performed
in carrying out duties described in section 203.
TITLE II—THE CENTRAL INTELLIGENCE AGENCY
R E T I R E M E N T AND D I S A B I L I T Y S Y S T E M
PART A—ESTABLISHMENT OF SYSTEM
RULES AND REGULATIONS
SEC. 201. (a) The Director may prescribe rules and regulations for
the establishment and maintenance of a Central Intelligence Agency
Retirement and Disability System for a limited number of employees,
referred to hereafter as the system; such rules and regulations to
become effective after approval by the chairman and ranking minority
members of the Armed Services Committees of the House and Senate.
(b) The Director shall administer the system in accordance with
such rules and regulations and with the principles established by this
Act.
(c) I n the interests of the security of the foreign intelligence
activities of the United States and in order further to implement the
proviso of section 102(d)(3) of the National Security Act of 1947,
as amended (50 U.S.C. 4 0 3 ( d ) ( 3 ) ) , that the Director of Central ei stat. 498.
Intelligence shall be responsible for protecting intelligence sources
and methods from unauthorized disclosure, and notwithstanding the
provisions of the Administrative Procedure Act (5 U.S.C. 1001 et
secj.) or any other provisions of law, any determinations by the ^° ^*^^- 237.
Director authorized by the provisions of this Act shall be deemed
to be final and conclusive and not subject to review by any court.
ESTABLISHMENT AND MAINTENANCE OF FUND
SEC. 202. There is hereby created a fund to be known as the Central
I n t e l l i ^ n c e Agency Retirement and Disability F u n d which shall be
maintained by the Director. The Central Intelligence Agency
Retirement and Disability Fund is referred to hereafter as the fund.
1044 PUBLIC LAW 88-643-OCT. 13, 1964 [78 STAT.
PARTICIPANTS
SEC. 203. The Director may designate from time to time such
Agency officers and employees whose duties are determined by the
Director to be (i) in support of Agency activities abroad hazardous
to life or health or (ii) so specialized because of security requirements
as to be clearly distinguishable from normal government employ-
ment, hereafter referred to as participants, who shall be entitled to
tlie benefits of the system. Any participant w^ho has completed
fifteen years of service with the Agency and whose career at that time
is adjudged by the Director to be qualifying for the system may
elect to remain a participant of such system for the duration of his
employment by the Agency and such election shall not be subject to
review or approval by the Director.
ANNUITANTS
SEC. 204. (a) Annuitants shall be participants w^ho are receiving
annuities from the fund and all persons, including surviving wives
and husbands, widows, dependent widowers, children, and bene-
ficiaries of participants or annuitants who shall become entitled to
receive annuities in accordance with the provisions of this Act.
Definitions. (b) When used in this Act the term—
(1) "Widow" means the surviving wife of a participant who
was married to such participant for at least two years imme-
diately preceding his death or is the mother of issue by marriage
to the participant.
(2) "Dependent widower" means the surviving husband of a
participant who was married to such participant for at least tw'o
years immediately preceding her death or is the father of issue
by marriage to the participant, and who is incapable of self-
support by reason of mental or physical disability, and who
received more than one-half of his support from such participant.
(3) "Child", for the purposes of sections 221 and 232 of this
Act, means an unmarried child, including (i) an adopted child,
and (ii) a stepchild or recognized natural child who received more
than one-half of his support from and lived with the participant
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 eighteen is
incapable of self-support or such unmarried child between eight-
een and twenty-one years of age 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 w^hose tw^enty-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 221 (o) of
this Act to have attained the age of twenty-one on the first day
of J u l y following such birthday. 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 Director 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) imme-
diately following the interim.
78 STAT. ] PUBLIC LAW 88-643-OCT. 13, 1964 1045
PART B—COMPULSORY CONTRIBUTIONS
SEC. 211. (a) Six and one-half per centum of the basic salary
received by each participant shall be contributed to the fund for the
payment of annuities, cash benefits, refunds and allowances. An
equal sum shall also be contributed from the respective appropriation
or fund which is used for payment of his salary. The amounts
deducted and withheld from basic salary together with the amounts
so contributed from the appropriation or fund shall be deposited by
the Agency to the credit of the fund.
(b) Each participant 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.
PART C—COMPUTATION OF ANNUITIES
SEC. 221. (a) The annuity of a participant shall be equal to 2 per
centum of his average basic salary for the highest five consecutive
years of service, for which full contributions have been made to the
fund, multiplied by the number of years, not exceeding thirty-five,
of service credit obtained in accordance with the provisions of sections
251 and 252. I n determining the aggregate period of service upon
which the annuity is to be based, the fractional part of a month, if any,
shall not be counted.
(b) A t the time of retirement, any married participant may elect
to receive a reduced annuity and to provide for an annuity payable
to his wife or her husband, commencing on the date following such
participant's death and terminating upon the death or remarriage of
such surviving wife or husband. The annuity payable to the surviving
wife or husband after such participant's death shall be 55 per centum
of the amount of the participant's annuity computed as prescribed
in paragraph (a) of this section, up to the full amount of such annuity
specified bjr him as the base for the survivor benefits. The annuity
of the participant making such election shall be reduced by 2i/^ per
centum of any amount up to $3,600 he specified as the base for the
survivor benefit plus 10 per centum of any amount over $3,600 so
specified.
(c) (1) If an annuitant dies and is survived by a wife or husband
and by a child or children, in addition to the annuity payable to the
surviving wife or husband, there shall be paid to or on behalf of
each child an annuity equal to the smallest of: (i) 40 per centum of
the annuitant's average basic salary, as determined under paragraph
Ca) of this section, divided by the number of children; (ii) $600; or
(iii) $1,800 divided by the number of children.
(2) If an annuitant dies and is not survived by a wife or husband
but by a child or children, each surviving child shall be paid an
annuity equal to the smallest of: (i) 50 per centum of the annuitant's
average basic salary, as determined under paragraph (a) of this
section, divided by the number of children; (ii) $720; or (iii) $2,160
divided by the number of children.
(d) If a surviving wife or husband dies or the annuity of a child
is terminated, the annuities of any remaining children shall be recom-
puted and paid as though such wife, husband, or child had not
survived the participant.
(e) The annuity payable to a child under paragraph (c) or (d)
of this section shall begin on the day after the participant dies, and
1046 PUBLIC LAW 88-643-OCT. 13, 1964 [78 STAT.
\^ such annuity 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 204(b) (3) of this
Act shall terminate on the last daj^ 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.
(f) Any unmarried participant retiring under the provisions of
this Act and found by the Director 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 (as that term is used in section 9(h) of the Civil
70 Stat. 752. Service Retirement Act (5 U.S.C. 2259(h))) in the participant to
receive an annuity after the participant's death. The annuity pay-
able to the participant making such election shall be reduced by 10
per centum of an annuity computed as provided in paragraph (a) of
this section, and by 5 per centum of an annuity so computed for each
full five years the person designated is younger than the participant,
but such total reduction shall not exceed 40 per centum. The annuity
of a survivor designated under this paragraph shall be 55 per centum
of the reduced annuity computed as prescribed above. The annuity
payable to a beneficiary under the provisions of this paragraph shall
begin on the first day of the next month after the participant dies.
I'pon the death of the surviving beneficiary all payments shall cease
and no further annuity payments authorized under this paragraph
shall be due or payable.
PART D — B E N E F I T S ACCRUING TO CERTAIN PARTICIPANTS
RETIREMENT FOR DISABILITY OR INCAPACITY—MEDICAL EXAMINATION
RECOVERY
S E C 231. (a) Any participant who has five years of service credit
toward retirement under the system, excluding military or naval
service that is credited in accordance with provisions of section 251
or 252(a) (2), and who becomes totally disabled or incapacitated for
useful and efficient service by reason of disease, illness, or iniury not
due to vicious habits, intemperance, or willful misconduct on his part,
shall, upon his own application or upon order of the Director, be
retired on an annuity computed as prescribed in section 221. If the
disabled or incapacitated participant is under sixty and has less
than twenty years of service credit toward his retirement under the
system at the time he is retired, his annuity shall be computed on
the assumption that he has had twenty years of service, but the
additional service credit that may accrue to a participant under this
provision shall in no case exceed the difference between his a^e at the
time of retirement and age sixty, but this provision shall not increase
the annuity of any survivor.
(b) In each case, the participant shall be ^iven a medical exami-
nation by one or more duly qualified physicians or surgeons desig-
nated by the Director to conduct examinations, and disability shall
be determined by the Director on the basis of the advice of such
physicians or surgeons. Unless the disability is permanent, like
examinations shall be made annually until the annuitant has reached
the statutory mandatory retirement a^e for his grade as provided
in section 235. If the Director determines on the basis of the advice
of one or more duly qualified physicians or surgeons conducting such
examinations that an annuitant has recovered to the extent that he
can return to duty, the annuitant may apply for reinstatement or
78 STAT. ] PUBLIC LAW 88-643-OCT. 13, 1964 1047
reappointment in the Agency within one year from the date his
recovery is determined. Upon application the Director may reinstate
any such recovered disability annuitant in the grade in which he was
serving at time of retirement, or the Director may, taking into con-
sideration the age, qualifications, and experience of such annuitant,
and the present grade of his contemporaries in the Agency, appoint
him to a grade higher than the one in which he was serving prior to
retirement. Payment of the annuity shall continue until a date six
months after the date of the examination showing recovery or until
the date of reinstatement or reappointment in the Agency, which-
ever is earlier. Fees for examinations under this provision, together
with reasonable traveling and other expenses incurred in order to
submit to examination, shall be paid out of the fund. If the annui-
tant fails to submit to examination as required under this section,
))ayment of the annuity shall be suspended until continuance of the
disabilitv is satisfactorily established.
(c) I t a recovered disability annuitant whose annuity is discon-
tinued is for any reason not reinstated or reappointed in the Agency,
he shall be considered to have been separated within the meaning of
paragraphs (a) and (b) of section 234 as of the date he was retired
for disability and he shall, after the discontinuance of the disability
annuity, be entitled to the benefits of that section or of section 241(a)
except that he may elect voluntary retirement in accordance with
the provisions of section 233 if he can qualify under its provisions.
(d) No participant shall be entitled to receive an annuity under
this Act and compensation for injury or disability to himself under
the Federal Einployees' Compensation Act of September 7, 1916, as
amended (5 U.S.C. 751 et seq.), covering the same period of time. 63^sta*t^*85'4^'
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 provision nor any provision of the said Act of
September 7, 1916, as amended, shall be so construed as to deny the
right of any participant to receive an annuity under this Act by rea-
son of his own services and to receive concurrently any payment under
such Act of September 7, 1916, as amended, by reason of the death of
any other person.
(e) Notwithstanding any provision of law to the contrary, 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
simi under section 14 of the Federal Employees' Compensation Act
of September 7, 1916, as amended (5 U.S.C. 764), except that where
such annuity is payaole 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 beyond the date
such annuity becomes effective, as determined bv the Secretary of
Labor, shall be refunded to the Department of Labor, to be paid into
the Federal employees' compensation fund. Before such person shall conditions.
receive such annuity he shall (1) refund to the Department of Labor
the amount representing such commuted payments for such extended
period, or (2) authorize the deduction of such amount from the
annuity payable to him under this Act, which amount shall be trans-
mitted to such Department for reimbursement to such fund. Deduc-
tions from such annuity may be made from accrued and accruing
payments, or may be prorated against and paid from accruing pay-
ments in such manner as the Secretary of Labor shall determine,
whenever he finds that the financial circumstances of the annuitant
are such as to warrant such deferred refunding.
31-667 0-65—69
1048 PUBLIC LAW 88-643-OCT. 13, 1964 [78 STAT.
DEATH IN SERVICE
SEC. 232. (a) I n case a participant dies and no claim for annuity
is payable under the provisions of this Act, his contributions to the
fund, with interest at the rates prescribed in sections 241(a) and
281(a), shall be paid in the order of precedence shown in section
241(b).
(b) If a participant, who has at least five years of service credit
toward retirement under the system, excluding military or naval
service that is credited in accordance with the provisions of section
251 or 2 5 2 ( a ) ( 2 ) , dies before separation or retirement from the
Agency and is survived by a widow or a dependent widower, as defined
in section 204, such widow or dependent widower shall be entitled to
an annuity equal to 55 per centum of the annuity computed in accord-
ance with the provisions of section 221 ( a ) . The annuity of such widow
or dependent widower shall commence on the date following death of
the participant and shall terminate upon death or remarriage of the
widow or dependent widower, or upon the dependent widower's
becoming capable of self-support.
(c) If a participant who has at least five years of service credit
toward retirement under the system, excluding military or naval serv-
ice that is credited in accordance with the provisions of section 251
or 252(a) (2), dies before separation or retirement from the Agency
and is survived by a wife or a husband and a child or children, eacn
surviving child shall be entitled to an annuity computed in accordance
with the provisions of section 221(c) (1). The child's annuity shall
begin and be terminated in accordance with the provisions of section
221(e). Upon the death of the surviving wife or husband or termina-
tion of the annuity of a child, the annuities of any remaining children
shall be recomputed and paid as though such wife or husband or child
had not survived the participant.
(d) If a participant who has at least five years of service credit
toward retirement under the system, excluding military or naval
service that is credited in accordance with the provisions of section
251 or 2 5 2 ( a ) ( 2 ) , dies before separation or retirement from the
Agency and is not survived by a wife or husband, but by a child or
children, each surviving child shall be entitled to an annuity computed
in accordance with the provisions of section 221(c) (2). The child's
annuity shall begin and terminate in accordance with the provisions
of section 221(e). Upon termination of the annuity of a child, the
annuities of any remaining children shall be recomputed and paid as
though that child had never been entitled to the benefit.
VOLUNTARY RETIREMENT
SEC. 233. Any participant in the system who is at least fifty years
of age and has rendered twenty years of service may on his own appli-
cation and with the consent of the Director be retired from the Agency
and receive benefits in, accordance with the provisions of section 221
provided he has not less than ten years of service with the Agency of
which at least five shall have been qualifying service.
DISCONTINUED SERVICE BENEFITS
SEC. 234. (a) Any participant who separates from the Agency after
having performed not less than five years of service with the Agency,
may, ujyon separation from the Agency or at any time prior to Incom-
ing eligible for an annuity, elect to have his contributions to the fund
returned to him in accordance with the provisions of section 241, or
(except in cases where the Director determines that separation was
78 STAT. ] PUBLIC LAW 88-643-OCT. 13, 1964 1049
based in whole or in part on the ground of disloyalty to the United
States) to leave his contributions m the fund and receive an annuity,
computed as prescribed in section 221, commencing at the age of sixty-
two years.
(b) If a participant who has qualified in accordance with the pro-
visions of paragraph (a) of this section to receive a deferred annuity
commencing at the age of sixty-two dies before reaching the age of
sixty-two his contributions to the fund, with interest, shall be paid in
accordance with the provisions of sections 241 and 281.
MANDATORY RETIREMENT
SEC. 235. (a) The Director may in his discretion place in a retired
status any participant who has completed at least twenty-five years
of service, or who is at least fifty jesLTS of age and has completed at
least twenty years of service, provided such participant has not less
than ten years of service with the Agency of which at least five shall
have been qualifying service. If so retired, such participant shall
receive retirement benefits in accordance with the provisions of sec-
tion 221.
(b) Any participant in the system receiving compensation at the
rate of grade GS-18 or above shall be automatically separated from
the Agency upon reaching the age of sixty-five. Any participant in
the system receiving compensation at a rate less than grade GS-18
shall be automatically separated from the Agency upon reaching the
age of sixty. Such separation shall be effective on the last day of the
month in which a participant reaches age sixty or sixty-five, as spec-
ified in this section, but whenever the Director shall determine it to
be in the public interest, he may extend such participant's service for
a period not to exceed five years. A participant separated under the
provisions of this section who has completed five years of Agency
service shall receive retirement benefits in accordance with the pro-
visions of section 221 of this Act.
LIMITATION ON NUMBER OF RETIREMENTS
SEC. 236. The number of participants retiring on an annuity pur-
suant to sections 233, 234, and 235 of this Act shall not exceed a total
of four hundred during the period ending on June 30,1969, nor a total
of four hundred during the period begmning on July 1, 1969, and
ending on June 30, 1974.
PART E—DISPOSITION or CONTRIBUTIONS AND INTEREST I N EXCESS OF
BENEFITS RECEIVED
SEC. 241. (a) Whenever a participant becomes separated from the
Agency without becoming eligible for an annuity or a deferred annuity
in accordance with the provisions of this Act, the total amount of con-
tributions from his salary with interest thereon at 4 per centum per
annum to December 31, 1947, and 3 per centum per annum thereafter
compounded annually to December 31,1966 (or, in the case of a partici-
pant separated from the Agency before he has completed five years of
service, to the date of separation) and proportionately for the period
served during the vear of separation including all contributions made
during or for such period, except as provided in section 281, shall
be returned to him.
(b) I n the event that the total contributions of a retired participant,
other than voluntary contributions made in accordance with the pro-
visions of section 281, with interest at the rates provided in paragraph
(a) of this section added thereto, exceed the total amount returned to
1050 PUBLIC LAW 88-643-OCT. 13, 1964 [78 STAT.
such participant or to an annuitant claiming thi"ough him, in the form
of annuities, the excess of the accumulated contributions over the
accumulated annuity payments shall be paid in the following order
of precedence, upon the establishment of a valid claim therefor, and
such payment shall be a bar to recovery by any other person:
(1) To the beneficiary or beneficiaries designated by such par-
ticipant in writing to the Director;
(2) If there be no such beneficiary to the surviving wife or
husband of such participant;
(3) If none of the above, to the child or children of such par-
ticipant and descendants of deceased children by representation;
(4) If none of the above, to the parents of such participant or
the survivor of them;
(5) If none of the above, to the duly appointed executor or ad-
ministrator of the estate of such participant;
(6) If none of the above, to other next oi kin of such participant
as may be determined by the Director in his judgment to be
legally entitled thereto.
(c) No payment shall be made pursuant to paragraph (b) (6) of
this section until after the expiration of thirty days from the death
of the retired participant or his surviving annuitant.
PART F — P E R I O D OF SERVICE FOR A N N U I T I E S
COMPUTATION OF LENGTH OF SERVICE
SEC. 251. For the purposes of this Act, the period of service of a
participant shall be computed from the date he becomes a participant
under the provisions of this Act, but all periods of separation from the
Agency and so much of any leaves of absence without pay as may
exceed six months in the aggregate in any calendar year shall be
excluded, except leaves of absence while receiving benefits under the
Federal Employees' Compensation Act of September 7, 1916, as
39 Stat. 742; amended (5 U.S.C. 751 et seq.), and leaves of absence granted par-
ticipants while performing active and honorable military or naval
service in the Army, Navy. Air Force, Marine Corps, or Coast Guard
of the United States.
PRIOR SERVICE CREDIT
SEC. 252. (a) A participant may, subject to the provisions of this
section, include in his period of service—
(1) civilian service in the executive, judicial, and legislative
branches of the Federal Government and in the District of Colum-
bia government, prior to becoming a participant; and
(2) active and honorable military or naval service in the Army,
Navy, Air Force, Marine Corps, or Coast Guard of the United
States prior to the date of the separation upon which title to
annuity is based.
(b) A participant may obtain prior civilian service credit in accord-
ance with the provisions of paragraph ( a ) ( 1 ) of this section by
making a special contribution to the fund equal to the percentage of
his basic annual salary for each year of service for which credit is
sought specified with respect to such year in the table relating to
employees contained in section 4(c) of the Civil Service Retirement
70 Stat. 747. ^^^ ^5 XJ.S.C. 2254(c)), together with interest computed as provided
in section 4(e) of such Act (5 U.S.C. 2254 ( e ) ) . Any such participant
may, under such conditions as may be determined in each instance by
the Director, pay such special contributions in installments.
78 STAT. ] PUBUC LAW 88-643-OCT. 13, 1964 1051
(c) (1) If an officer or employee under some other Government
retirement system becomes a participant in the system by direct
transfer, such officer or employee's total contributions and deposits,
including interest accrued thereon, except voluntary contributions,
shall be transferred to the fund effective as of the date such officer or
employee becomes a participant in the system. Each such officer or
employee shall be deemed to consent to the transfer of such funds and
such transfer shall be a complete discharge and acquittance of all
claims and demands against the other Government retirement fund
on account of service rendered prior to becoming a participant in the
system.
(2) No participant, whose contributions are transferred to the
fund in accordance with the provisions of paragraph (c) (1) of this
section, shall be required to make contributions in addition to those
transferred for periods of service for which full contributions w^ere
made to the other Government retirement fund, nor shall any refund
be made to any such participant on account of contributions made
during any period to the other Government retirement fund at a
higher rate than that fixed for employees by section 4(c) of the Civil
Service Retirement Act (5 U.S.C. 2254(c)) for contributions to the 7o stat. 747..
fund.
(3) No participant, whose contributions are transferred to the
fund in accordance with the provisions of paragraph (c) (1) of this
section, shall receive credit for periods of service for which a refund
of contributions has been made, or for which no contributions were
made to the other Government retirement fund. A participant may,
how^ever, obtain credit for such prior service by making a special
contribution to the fund in accordance with the provisions of para-
graph (b) of this section.
(d) No participant may obtain prior civilian service credit toward
retirement under the system for any period of civilian service on the
basis of which he is receiving or will in the future be entitled to
receive any annuity under anomer retirement system covering civilian
personnel of the Government.
(e) A participant may obtain prior military or naval sei-vice credit
in accordance with the provisions of paragraph (a) (2) of this section
by applying for it to the Director prior to retirement or separation
from the Agency. However, in the case of a participant wiio is eligible
for and receives retired pay on account of military or naval service,
the period of service upon which such retired pay is based shall not
be included, except that in the case of a participant who is eligible
for and receives retired pay on account of a service-connected dis-
ability incurred in combat with an enemy of the United States or
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,
TTnited States Code), or is awarded under chapter 67 of title 10 of 38 usc3oi.36o.
the TTnited States Code, the period of such military or naval service 133°. ^^ ^^^'"
shall be included. No contributions to the fund shall be required in
connection with military or naval service credited to a participant in
accordance with the provisions of paragraph (a) (2) of this section.
(f) Notwithstanding any other provision of this section or section
253 any military service (other than military service covered by mili-
tary leave with pay) performed by a participant after December 1956
shall be excluded in determining the aggregate period of service upon
which an annuity payable under this Act to such participant or to
his widow or child is to be based, if such participant 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 Social Security Act, as amended (42 U.S.C. 402), 49 stat. 623.
1052 PUBLIC LAW 88-643-OCT. 13, 1964 [78 STAT.
based on such participant's wages and self-employment income. If
in the case of the participant or widow such military service 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 aggregate period of service upon which
such annuity is based shall be redetermined, effective as of the first
day of the month in which he or she attains such age, so as to exclude
such service.
CREDIT FOR SERVICE W H I L E ON MILITARY LEAVE
SEC. 253. (a) A participant 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 sepa-
rated from his Agency position by reason of such military service,
unless he shall apply for and receive a refund of contributions under
this Act: Provided^ That such participant shall not be considered as
retaining his Agency position beyond December 31,1956, or the expira-
tion of five years of such military service, whichever is later.
(b) Contributions shall not be required covering periods of leave
of absence from the Agency granted a participant while performing
active military or naval service in the Army, Navy, Air Force, Marine
Corps, or Coast Guard of the United States.
PART G — M O N E Y S
ESTIMATE OF APPROPRIATIONS NEEDED
SEC. 261. The Director shall prepare the estimates of the annual
appropriations required to be made to the fund, and shall cause to be
made actuarial valuations of the fund at intervals of five years, or
of tener if deemed necessary by him.
INVESTMENT OF MONEYS I N T H E F U N D
SEC. 262. The Director may, with the approval of the Secretary of
the Treasury, invest from time to time in interest-bearing securities of
the United States such portions of the fund as in his judgment may
not be immediately required for the payment of annuities, cash bene-
fits, refunds, and allowances, and the income derived from such invest-
ments shall constitute a part of such fund.
ATTACHMENT OF MONEYS
SEC. 263. None of the moneys mentioned in this Act shall be assign-
able either in law or equity, or be subject to execution, levy, attach-
ment, garnishment, or other legal process.
PART H — R E T I R E D PARTICIPANTS RECALLED, REINSTATED, OR REAP-
POINTED IN THE AGENCY, OR REEMPLOYED I N THE GOVERNMENT
RECALL
SEC. 271. (a) The Director may, with the consent of any retired
participant, recall such participant to duty in the Agency whenever
he shall determine such recall is in the public interest.
(b) Any such participant recalled to duty in the Agency in accord-
ance with the provisions of paragraph (a) of this section or reinstated
or reappointed in accordance with the provisions of section 231(b)
78 STAT. ] PUBLIC LAW 88-643-OCT. 13, 1964 1053
shall, while so serving, be entitled in lieu of his annuity to the full
salary of the grade in which he is serving. During such service, he
shall make contributions to the fund in accordance with the provisions
of section 211. When he reverts to his retired status, his annuity shall
be determined anew in accordance with the provisions of section 221.
REEMPLOYMENT
SEC. 272. Notwithstanding any other provision of law, a participant
retired under the provisions of this Act shall not, by reason of his
retired status, be barred from employment in Federal Government
service in any appointive position for which he is qualified. An
annuitant so reemployed shall serve at the will of the appointing
officer.
REEMPLOYMENT COMPENSATION
SEC. 273. (a) Notwithstanding any other provision of law, any
annuitant who has retired under this Act and who is reemployed in
the Federal Government service in any appointive position either on
a part-time or full-time basis shall be entitled to receive his annuity
payable under this Act, but there shall be deducted from his salary
a sum equal to the annuity allocable to the period of actual
employment.
(b) I n the event of any overpayment under this section, such over-
payment shall be recovered by withholding the amount involved from
the salary payable to such reemployed annuitant, or from any other
moneys, including his annuity, payable in accordance with the provi-
sions of this Act.
PART I—VOLUNTARY CONTRIBUTIONS
SEC. 281. (a) Any participant may, at his option and under such
regulations as may be prescribed by the Director, deposit additional
sums in multiples of 1 per centum of his basic salary, but not in excess
of 10 per centum of such salary, which ajnounts together with interest
at 3 per centum per annum, compounded annually as of December 31,
and proportionately for the period served during the year of his retire-
ment, including all contributions made during or for such period,
shall, at the date of his retirement and at his election, be—
(1) returned to him in lump sum;
(2^ used to purchase an additional life annuity;
(3) used to purchase an additional life annuity for himself and
to provide for a cash payment on his death to a beneficiary whose
name shall be notified in writing to the Director by the partici-
pant; or
(4) used to purchase an additional life annuity for himself
and a life annuity commencing op his death payable to a bene-
ficiary whose name shall be notified in writing to the Director by
the participant with a guaranteed return to the beneficiary or his
legal representative of an amount equal to the cash payment
referred to in subparagraph (3) above.
(b) The benefits provided by subparagraphs (2), (3), or (4) of
paragraph (a) of this section shall be actuarially equivalent in value
to the payment provided for by subparagraph (a) (1) of this section
and shall be calculated upon such tables of mortality as may be from
time to time prescribed for this purpose by the Director.
(c) In case a participant shall become separated from the Agency
for any reason except retirement on an annuity, the amount of any
additional deposits with interest at 3 per centum per annum, com-
pounded as is provided in paragraph (a) of this section, made by him
1054 PUBLIC LAW 88-643-OCT. 13, 1964 [78 STAT.
under the provisions of said paragraph (a) shall be refunded in the
manner provided in section 241 for the return of contributions and
interest in the case of death or separation from the Agency.
(d) Any benefits payable to a participant or to his beneficiary in
respect to the additional deposits provided under this section shall be
in addition to the benefits otherwise provided under this Act.
PART J—CosT-or-LiviNG ADJUSTMENT OF ANNUITIES
SEC. 291. (a) On the basis of determinations made by the Civil
Service Commission pursuant to section 18 of the Civil Service Retire-
76 |tat. 869. meiit Act, as amended, pertaining to per centum change in the price
5 u s e 2268. index, the following adjustments shall be made:
(1) Effective April 1, 1966, if the change in the price index from
1964 to 1965 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, 1965, shall be increased by the per centum rise in the
price index adjusted to the nearest one-tenth of 1 per centum.
(2) Effective April 1 of any year other than 1966 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 increased 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 section 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 entitled under section 221(c)), 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 annuity payable from
the fund to an annuitant's survivor (other than a child entitled under
section 221(c)), which annuity commences the day after the annui-
tant's death and after the effective date of the first increase under this
section, shall be increased by the total per centum increase the annui-
tant was receiving under this section at death.
(3) For purposes of computing an annuity which commences after
the effective date of the first increase under this section to a child under
section 221(c), the items $600, $720, $1,800, and $2,160 appearing in
section 221(c) 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 221(c) 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 pro-
visions of this paragraph shall apply as if such first increase were
in effect with respect to computation of a child's amiuity under section
221(c) 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 com-
puted on any additional annuity purchased at retirement by volun-
tary contributions.
(d) The monthly installment of annuity after adjustment under this
section shall be fixed at the nearest dollar.
Approved October 13, 1964.
