22 U.S.C. § 4066 — Cost-of-living adjustment of annuities

Page 1506 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 4065 1 See Amendment of Section note below. eral of the Department [of State] may waive the provi- sions of subsections (a) through (d) of section 824 of the Foreign Service Act of 1980 (22 U.S.C. 4064), on a case- by-case basis, for an annuitant reemployed by the In- spector General on a temporary basis, subject to the same constraints and in the same manner by which the Secretary of State may exercise such waiver authority pursuant to subsection (g) of such section.’’ EXTENSION OF AUTHORITY Extensions of the waiver authority of the Secretary of State under former subsec. (g)(2) of this section (see 2016 Amendment note above) were contained in the fol- lowing acts: Pub. L. 114–113, div. K, title VII, § 7034(k)(4), Dec. 18, 2015, 129 Stat. 2764. Pub. L. 113–235, div. J, title VII, § 7034(l)(4), Dec. 16, 2014, 128 Stat. 2625. Pub. L. 113–76, div. K, title VII, § 7034(m)(4), Jan. 17, 2014, 128 Stat. 515. Pub. L. 112–74, div. I, title VII, § 7034(m)(4), Dec. 23, 2011, 125 Stat. 1216. § 4065. Voluntary contribution account (a) Composition; election and return 1 The voluntary contribution account shall be the sum of unrefunded amounts voluntarily con- tributed prior to February 15, 1981, by any par- ticipant or former participant under any prior law authorizing such contributions to the Fund, plus interest compounded at the rate of 3 per- cent per year to the date of separation from the Service or (in case of participant or former par- ticipant separated with entitlement to a de- ferred annuity) to the date the voluntary con- tribution account is claimed, the commencing date fixed for the deferred annuity, or the date of death, whichever is earlier. Effective on the date the participant becomes eligible for an an- nuity or a deferred annuity and at the election of the participant, his or her account shall be— (1) returned in a lump sum; (2) used to purchase an additional life annu- ity; (3) used to purchase an additional life annu- ity for the participant and to provide for a cash payment on his or her death to a bene- ficiary whose name shall be notified in writing to the Secretary of State by the participant; or (4) used to purchase an additional life annu- ity for the participant and a life annuity com- mencing on his or her death payable to a bene- ficiary whose name shall be notified in writing to the Secretary of State by the participant, with a guaranteed return to the beneficiary or his or her legal representative of an amount equal to the cash payment referred to in para- graph (3). (b) Computation of benefits The benefits provided by subsection (a)(2), (3), or (4) shall be actuarially equivalent in value to the payment provided for by subsection (a)(1) and shall be calculated upon such tables of mor- tality as may be from time to time prescribed for this purpose by the Secretary of the Treas- ury. (c) Lump-sum payment; time; order of prece- dence A voluntary contribution account shall be paid in a lump sum following receipt of an appli- cation therefor from a present or former partici- pant if application is filed prior to payment of any additional annuity. If not sooner paid, the account shall be paid at such time as the partic- ipant separates from the Service for any reason without entitlement to an annuity or a deferred annuity or at such time as a former participant dies or withdraws compulsory contributions to the Fund. In case of death, the account shall be paid in the order of precedence specified in sec- tion 4055(f) of this title. (Pub. L. 96–465, title I, § 825, Oct. 17, 1980, 94 Stat. 2122.) AMENDMENT OF SECTION Ex. Ord. No. 12446, § 1(a), (c), Oct. 17, 1983, 48 F.R. 48443, set out as a note under section 4067 of this title, provided that the first sentence of subsection (a) of this section, applicable (i) to contributions for civilian service performed on or after the first day of Nov. 1983, (ii) to con- tributions for prior refunds to participants for which application is received by the employing agency on and after such first day of Nov. 1983, and (iii) to excess contributions under section 4055(h) of this title and voluntary contributions under section 4065(a) of this title from the first day of Nov. 1983, is deemed to be amended to provide that interest shall be compounded at the annual rate of 3 percent per annum through December 31, 1984, and thereafter at a rate equal to the overall average yield to the Fund during the preceding fiscal year from all obliga- tions purchased by the Secretary of the Treas- ury during such fiscal year under section 4059 of this title, as determined by the Secretary of the Treasury. Editorial Notes CODIFICATION In subsec. (a), ‘‘February 15, 1981’’ substituted for ‘‘the effective date of this Act’’ pursuant to section 2403 of Pub. L. 96–465, set out as an Effective Date note under section 3901 of this title. § 4066. Cost-of-living adjustment of annuities (a) Effective date A cost-of-living annuity increase shall become effective under this section on the effective date of each such increase under section 8340(b) of title 5. Each such increase shall be applied to each annuity payable from the Fund under this part which has a commencing date not later than the effective date of the increase. (b) Applicability of increases under other provi- sions of law Each annuity increase under this section shall be identical to the corresponding percentage in- crease under section 8340(b) of title 5. (c) Eligibility for increases Eligibility for an annuity increase under this section shall be governed by the commencing date of each annuity payable from the Fund under this part as of the effective date of an in- crease except as follows: (1) The first increase (if any) made under this section to an annuity which is payable from the Fund to a participant or to the sur- Page 1507 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 4066 viving spouse or former spouse of a deceased participant who died in service or a deceased annuitant whose annuity was not increased under this section, shall be equal to the prod- uct (adjusted to the nearest 1⁄10 of 1 percent) of— (A) 1⁄12 of the applicable percent change computed under subsection (b) of this sec- tion, multiplied by (B) the number of months (counting any portion of a month as a month)— (i) for which the annuity was payable from the Fund before the effective date of the increase, or (ii) in the case of a surviving spouse or former spouse of a deceased annuitant whose annuity has not been so increased, since the annuity was first payable to the deceased annuitant. (2) Effective from its commencing date, an annuity payable from the Fund under this part to the survivor of an annuitant, except a child entitled to an annuity under section 4046(c) of this title or section 4049(c) or (d) of this title, shall be increased by the total percentage in- crease the annuitant was receiving under this section at death. (3) For purposes of computing or recom- puting an annuity to a child under section 4046(c) or (d) of this title or section 4049(c) or (d) of this title, the items $900, $1,080, $2,700, and $3,240 appearing in section 4046(c) of this title shall be increased by the total percentage increases by which corresponding amounts are being increased under section 8340 of title 5 on the date the annuity of the child becomes ef- fective. (d) Exclusion of additional annuity purchased after retirement by voluntary contribution No increase in annuity provided by this sec- tion shall be computed on any additional annu- ity purchased at retirement by voluntary con- tributions. (e) Rounding off of amount; minimum increases The monthly installment of annuity after ad- justment under this section shall be rounded to the next lowest dollar, except such installment shall after adjustment reflect an increase of at least $1. (f) Rate of increase for surviving spouses of an- nuitants electing reduced annuity Effective from its commencing date, there shall be an increase of 10 percent in the annuity of each surviving spouse whose entitlement to annuity resulted from the death of an annuitant who, prior to October 1, 1976, elected a reduced annuity in order to provide a spouse’s survivor annuity. (g) Maximum annuity (1) An annuity shall not be increased by reason of any adjustment under this section to an amount which exceeds the greater of— (A) the maximum pay rate payable for class FS–1 under section 3963 of this title, 30 days before the effective date of the adjustment under this section; or (B) the final pay (or average pay, if higher) of the former participant with respect to whom the annuity is paid, increased by the overall annual average percentage adjust- ments (compounded) in rates of pay of the Foreign Service Schedule under such section 3963 of this title during the period— (i) beginning on the date the annuity com- menced (or, in the case of a survivor of the retired participant, the date the partici- pant’s annuity commenced), and (ii) ending on the effective date of the ad- justment under this section. (2) For the purposes of paragraph (1) of this subsection, ‘‘pay’’ means the rate of salary or basic pay as payable under any provision of law, including any provision of law limiting the ex- penditure of appropriated funds. (Pub. L. 96–465, title I, § 826, Oct. 17, 1980, 94 Stat. 2123; Ex. Ord. No. 12289, § 1, Feb. 14, 1981, 46 F.R. 12693; Ex. Ord. No. 12446, §§ 2(a), 6(a), Oct. 17, 1983, 48 F.R. 48443, 48446; Pub. L. 99–335, title IV, § 402(a)(3), June 6, 1986, 100 Stat. 609; Pub. L. 100–238, title II, § 219, Jan. 8, 1988, 101 Stat. 1775.) Editorial Notes AMENDMENTS 1988—Subsec. (c)(1). Pub. L. 100–238 amended par. (1) generally. Prior to amendment, par. (1) read as follows: ‘‘The first increase (if any) made under this section to an annuity which is payable from the Fund under this part to a participant or to the surviving spouse of a de- ceased participant who dies in service shall be equal to the product (adjusted to the nearest 1⁄10 of 1 percent) of— ‘‘(a) 1⁄6 of the applicable percent change determined under subsection (b) of this section, multiplied by ‘‘(b) the number of full months for which the annu- ity was payable from the Fund under this part before the effective date of the increase (counting any por- tion of a month as a full month). In the administration of this paragraph, the number of days of unused sick leave to the credit of a participant or deceased participant on the effective date of the then last preceding general annuity increase under this section shall be deemed to be equal to the number of days of unused sick leave to his or her credit on the day of separation from the Service.’’ 1986—Subsecs. (a), (c). Pub. L. 99–335 inserted ‘‘under this part’’ after ‘‘payable from the Fund’’ wherever ap- pearing. 1983—Subsec. (e). Ex. Ord. No. 12446, § 2(a), substituted ‘‘rounded to the next lowest’’ for ‘‘fixed at the near- est’’. Subsec. (g). Ex. Ord. No. 12446, § 6(a), added subsec. (g). 1981—Subsec. (c)(1). Ex. Ord. No. 12289 amended first sentence of par. (1) generally. Prior to amendment, first sentence read as follows: ‘‘An annuity (except a deferred annuity) payable from the Fund to a partici- pant who retires and receives an immediate annuity, or to a surviving spouse or former spouse of a deceased participant who dies in service or who dies after being separated with benefits under section 4009(b)(2) of this title, which has a commencing date after the effective date of the then last preceding general annuity in- crease under this section shall not be less than the an- nuity which would have been payable if the com- mencing date of such annuity had been the effective date of such last preceding increase.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–238 effective 90 days after Jan. 8, 1988, see section 261(a) of Pub. L. 100–238, set out as a note under section 4054 of this title. Page 1508 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 4067 EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–335 effective Jan. 1, 1987, see section 702(a) of Pub. L. 99–335, set out as an Effec- tive Date note under section 8401 of Title 5, Govern- ment Organization and Employees. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by section 2(a) Ex. Ord. No. 12446 effec- tive with respect to any adjustment or redetermination of any annuity made on or after Oct. 17, 1983, see sec- tion 2(b) of Ex. Ord. No. 12446, set out under section 4067 of this title. Amendment by section 6 of Ex. Ord. No. 12446 applica- ble to any adjustment occurring on or after Apr. 1, 1983 under this section to any annuity payable from the Foreign Service Retirement and Disability Fund, whether such annuity has a commencing date before, on, or after Oct. 17, 1983, but shall not cause any annu- ity to be reduced below the rate that is payable on Oct. 17, 1983, see section 6(b) of Ex. Ord. No. 12446, set out under section 4067 of this title. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Ex. Ord. No. 12289 effective Feb. 15, 1981, see section 3 of Ex. Ord. No. 12289, set out under section 4067 of this title. DELAY IN COST-OF-LIVING ADJUSTMENTS DURING FISCAL YEARS 1994, 1995, AND 1996 Any cost-of-living increase scheduled to take effect during fiscal year 1994, 1995, or 1996 under this section delayed until first day of third calendar month after date such increase would otherwise take effect, see sec- tion 11001 of Pub. L. 103–66, set out as a note under sec- tion 8340 of Title 5, Government Organization and Em- ployees. § 4067. Compatibility between retirement systems (a) Civil Service and Foreign Service Retirement Systems In order to maintain existing conformity be- tween the Civil Service Retirement and Dis- ability System under subchapter III of chapter 83 of title 5, and the Foreign Service Retirement and Disability System, whenever a law of gen- eral applicability is enacted which— (1) affects the treatment of current or former participants, annuitants, or survivors under the Civil Service Retirement and Dis- ability System; and (2) affects treatment which, immediately prior to the enactment of such law, was sub- stantially identical to the treatment accorded to participants, former participants, annu- itants, or survivors under the Foreign Service Retirement and Disability System; such law shall be extended in accordance with subsection (b) to the Foreign Service Retire- ment and Disability System so that it applies in like manner with respect to participants, former participants, annuitants, or survivors under that System. (b) Regulations to implement prescribed by Ex- ecutive order The President shall by Executive order pre- scribe regulations to implement this section and may make such extension retroactive to a date no earlier than the effective date of the provi- sion of law applicable to the Civil Service Re- tirement and Disability System. Any provision of an Executive order issued under this section shall modify, supersede, or render inapplicable, as the case may be, to the extent inconsistent therewith— (1) all provisions of law enacted prior to the effective date of that provision of the Execu- tive order, and (2) any prior provision of an Executive order issued under this section. (c) Federal Employees’ Retirement and Foreign Service Pension Systems The President shall maintain, under the same conditions and in the same manner as provided in subsections (a) and (b) existing conformity between the Federal Employees’ Retirement System provided in chapter 84 of title 5 and the Foreign Service Pension System provided in part II of this subchapter. (Pub. L. 96–465, title I, § 827, Oct. 17, 1980, 94 Stat. 2124; Pub. L. 99–335, title IV, § 411, June 6, 1986, 100 Stat. 614.) Editorial Notes AMENDMENTS 1986—Subsec. (c). Pub. L. 99–335 added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–335 effective Jan. 1, 1987, see section 702(a) of Pub. L. 99–335, set out as an Effec- tive Date note under section 8401 of Title 5, Govern- ment Organization and Employees. REFERENCE TO VETERANS’ ADMINISTRATION DEEMED REFERENCE TO DEPARTMENT OF VETERANS AFFAIRS Pub. L. 102–54, § 13(h)(2), June 13, 1991, 105 Stat. 275, provided that: ‘‘Any reference to the Veterans’ Admin- istration in any regulation prescribed or Executive order issued pursuant to section 827(a) of the Foreign Service Act of 1980 (22 U.S.C. 4067(a)) shall be deemed to be a reference to the Department of Veterans Affairs.’’ CONSTRUCTION OF SECTION WITH CIVIL SERVICE RETIREMENT SPOUSE EQUITY ACT OF 1984 This section not applicable with respect to either the amendments made by section 2 of Pub. L. 98–615 or the provisions of section 4 of Pub. L. 98–615 relating to equi- table treatment under the Civil Service Retirement System for former spouses, except that, notwith- standing section 4(h) of Pub. L. 98–615, this section ap- plicable with respect to sections 8339(j) and 8341(e) and (h) of Title 5, Government Organization and Employees, and section 4 (except subsec. (b)) of Pub. L. 98–615 to the extent that those sections apply to a qualified former wife or husband, see section 4069–1 of this title and sec- tion 4(h) of Pub. L. 98–615, set out as an Effective Date of 1984 Amendment note under section 8341 of Title 5. Executive Documents RECOMMENDATIONS BY SECRETARY OF STATE TO PRESIDENT For authority for the Secretary of State to make rec- ommendations to the President through the Director of the Office of Management and Budget whenever action is appropriate under this section to maintain existing conformity between the Civil Service Retirement and Disability System and the Foreign Service Retirement and Disability System, see section 3 of Ex. Ord. No. 12293, Feb. 23, 1981, 46 F.R. 13969, set out as a note under section 3901 of this title.