[DOCID: f:hr877p1.110]
From the House Reports Online via GPO Access
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110th Congress Rept. 110-877
HOUSE OF REPRESENTATIVES
2d Session Part 1
======================================================================
FOREIGN SERVICE OVERSEAS PAY EQUITY ACT OF 2008
_______
September 24, 2008.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Smith of New Jersey, from the Committee on Foreign Affairs,
submitted the following
R E P O R T
[To accompany H.R. 3202]
[Including cost estimate of the Congressional Budget Office]
The Committee on Foreign Affairs, to whom was referred the
bill (H.R. 3202) to amend the Foreign Service Act of 1980 to
extend comparability pay adjustments to members of the Foreign
Service assigned to posts abroad, and to amend the provision
relating to the death gratuity payable to surviving dependents
of Foreign Service employees who die as a result of injuries
sustained in the performance of duty abroad, having considered
the same, report favorably thereon with an amendment and
recommend that the bill as amended do pass.
TABLE OF CONTENTS
Page
The Amendment.................................................... 2
Summary.......................................................... 3
Background and Purpose for the Legislation....................... 3
Hearings......................................................... 4
Committee Consideration.......................................... 4
Votes of the Committee........................................... 4
Committee Oversight Findings..................................... 4
New Budget Authority and Tax Expenditures........................ 4
Congressional Budget Office Cost Estimate........................ 5
Performance Goals and Objectives................................. 7
Constitutional Authority Statement............................... 7
New Advisory Committees.......................................... 7
Congressional Accountability Act................................. 7
Earmark Identification........................................... 7
Section-by-Section Analysis and Discussion....................... 7
Changes in Existing Law Made by the Bill, as Reported............ 9
The Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Foreign Service Overseas Pay Equity
Act of 2008''.
SEC. 2. OVERSEAS COMPARABILITY PAY ADJUSTMENT.
(a) Overseas Comparability Pay Adjustment.--
(1) In general.--Chapter 4 of the Foreign Service Act of 1980
(22 U.S.C. 3961 and following) is amended by adding at the end
the following:
``SEC. 415. OVERSEAS COMPARABILITY PAY ADJUSTMENT.
``(a) In General.--A member of the Service who is designated class 1
or below for purposes of section 403 and whose official duty station is
neither in the continental United States nor in a non-foreign area
shall receive, in accordance with the phase-in schedule set forth in
subsection (c), the same locality-based comparability payment under
section 5304 of title 5, United States Code (stated as a percentage) as
would be payable to such member if such member's official duty station
were in the District of Columbia.
``(b) Treatment as Basic Pay.--The amount of any locality-based
comparability payment which is payable to a member of the Service by
virtue of this section--
``(1) shall be considered to be part of the basic pay of such
member--
``(A) for the same purposes as provided for under
section 5304(c)(2)(A) of title 5, United States Code;
and
``(B) for purposes of chapter 8; and
``(2) shall be subject to any limitations on pay applicable
to locality-based comparability payments under section 5304 of
title 5, United States Code.
``(c) Phase-In.--The locality-based comparability payment payable to
a member of the Service under this section shall--
``(1) beginning on the first day of the first pay period
beginning on or after the date that fiscal year 2009
appropriations are made available by enactment of the
Department of State, Foreign Operations, and Related Programs
Appropriations Act, 2009, or April 1, 2009, whichever is
earlier, be equal to 33.33 percent of the payment which would
otherwise apply under subsection (a);
``(2) beginning on the first day of the first pay period in
fiscal year 2010, be equal to 66.67 percent of the payment
which would otherwise apply under subsection (a); and
``(3) beginning on the first day of the first pay period in
fiscal year 2011 and each subsequent fiscal year, be equal to
the payment determined under subsection (a).
``(d) Non-Foreign Area Defined.--For purposes of this section, the
term `non-foreign area' has the same meaning as is given such term in
regulations carrying out section 5941 of title 5, United States
Code.''.
(2) Conforming amendment.--The table of contents set forth in
section 2 of such Act is amended by inserting after the item
relating to section 414 the following:
``Sec. 415. Overseas comparability pay adjustment.''.
(b) Conforming Amendments Relating to the Foreign Service Retirement
Systems.--
(1) Contributions to the fund.--Effective as of the first pay
period beginning on or after October 1, 2010, section 805(a) of
the Foreign Service Act of 1980 (22 U.S.C. 4045(a)) is
amended--
(A) in paragraph (1)--
(i) in the first sentence, by striking ``7.25
percent'' and inserting ``7 percent''; and
(ii) in the second sentence, by striking
``The contribution by the employing agency''
through ``and shall be made'' and inserting
``An equal amount shall be contributed by the
employing agency'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``, plus
an amount equal to .25 percent of basic pay'';
and
(ii) in subparagraph (B), by striking ``,
plus an amount equal to .25 percent of basic
pay''; and
(C) in paragraph (3), by striking all that follows
``Code'' and inserting a period.
(2) Computation of annuities.--Section 806(a)(9) of such Act
(22 U.S.C. 4046(a)(9)) is amended by striking ``is outside the
continental United States shall'' and inserting ``was outside
the continental United States during the period beginning on
December 29, 2002, and ending on the day before the first day
of the first pay period beginning on or after October 1, 2010
(or during any portion thereof) shall, to the extent that such
computation is based on the basic salary or basic pay of such
member for such period (or portion thereof),''.
(3) Entitlement to annuity.--Section 855(a)(3) of such Act
(22 U.S.C. 4071d(a)(3)) is amended--
(A) by striking ``section 8414'' and inserting
``section 8415''; and
(B) by striking ``is outside the continental United
States shall'' and inserting ``was outside the
continental United States during the period beginning
on December 29, 2002, and ending on the day before the
first day of the first pay period beginning on or after
October 1, 2010 (or during any portion thereof) shall,
to the extent that such computation is based on the
basic salary or basic pay of such member for such
period (or portion thereof),''.
(4) Deductions and withholdings from pay.--Section 856(a)(2)
of such Act (22 U.S.C. 4071e(a)(2)) is amended to read as
follows:
``(2) The applicable percentage under this subsection shall be as
follows:
``Percentage Time Period
7.5 Before January 1, 1999.
7.75 January 1, 1999, to December 31, 1999.
7.9 January 1, 2000, to December 31, 2000.
7.55 January 11, 2003, to the day before the first day of
the first pay period beginning on or after October
1, 2010.
7.5 Beginning on the first day of the first pay period
beginning on or after October 1, 2010.''.
(c) Reporting Requirements.--
(1) In general.--Not later than October 1, 2010, the
Secretary of State shall submit to the appropriate
congressional committees an assessment of all allowances
provided to members of the Foreign Service under the Foreign
Service Act of 1980 or under title 5, United States Code, and
in particular, how such allowances have been or will be
affected by the amendments to the Foreign Service Act of 1980
made by this Act.
(2) Definition.--For purposes of this subsection, the term
``appropriate congressional committees'' means the Committee on
Foreign Affairs of the House of Representatives and the
Committee on Foreign Relations of the Senate.
SEC. 3. DEATH GRATUITY.
The first sentence of section 413(a) of the Foreign Service Act of
1980 (22 U.S.C. 3973(a)) is amended by striking ``at the time of
death'' and inserting ``at level II of the Executive Schedule under
section 5313 of title 5, United States Code, at the time of death,
except that for employees compensated under local compensation plans
established under section 408, the amount shall be equal to the greater
of 1 year's salary at the time of death or 1 year's salary at the
highest step of the highest grade on the local compensation plan from
which the employee was being paid at the time of death''.
Summary
H.R. 3202, the Foreign Service Overseas Pay Equity Act of
2008, establishes an equalized global pay scale for junior
members of the Foreign Service by resolving the pay discrepancy
resulting from Washington D.C. based locality pay that is not
received by Foreign Service personnel stationed overseas. The
bill also amends the current death gratuity benefit to
standardize the amount paid to surviving dependents of a
Foreign Service employee who dies as a result of injuries
sustained while serving abroad.
Background and Purpose for the Legislation
The Foreign Service Overseas Pay Equity Act of 2008 reforms
the Foreign Service compensation system to eliminate, over a
three-year period, wage disparities (currently 20.89%) between
U.S. Government employees who are members of the Foreign
Service based in Washington D.C. who receive locality pay, and
those overseas who do not. Locality-based comparability
payments were initiated for certain Federal Government workers
under the Federal Employees Pay Comparability Act of 1990 in
order to make their salaries competitive with comparable
employment in the private sector.
These payments were extended to employees of the Foreign
Service, but only to those based within the United States. When
low- or mid-level Foreign Service members are transferred from
Washington D.C. to a post overseas, they experience a nearly
21% decrease in basic pay. In order to eliminate current and
future inequalities between Foreign Service members stationed
in the U.S. and those stationed abroad, H.R. 3202 increases
overseas base salaries over a three-year phase-in period to
match those paid to Washington, D.C.-based employees. This
equitable system will make the Foreign Service more competitive
with the private sector in recruiting and retaining employees.
The overseas death gratuity would also be amended to
provide a more standardized benefit to surviving dependents of
any Foreign Service employee who dies as a result of injuries
sustained in the performance of duty abroad. This provision
recognizes the risks that members of the Foreign Service face
while serving in increasingly violent posts and situations.
Hearings
There were no Committee hearings on this legislation.
Committee Consideration
On July 16, 2008, the Committee held a markup and
considered H.R. 3202. A motion to report the bill, as amended,
to the House, a quorum being present, was agreed to by voice
vote.
Votes of the Committee
There were no recorded votes on H.R. 3202.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee reports that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
New Budget Authority and Tax Expenditures
In compliance with Clause 3(c)(2) of House Rule XIII, the
Committee adopts as its own the estimate of new budget
authority, entitlement authority, or tax expenditures or
revenues contained in the cost estimate prepared by the
Director of the Congressional Budget Office, pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 17, 2008.
Hon. Howard L. Berman, Acting Chairman,
Committee on Foreign Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3202, the Foreign
Service Overseas Pay Equity Act of 2008.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sunita
D'Monte, who can be reached at 226-2840.
Sincerely,
Peter R. Orszag.
Enclosure
cc:
Honorable Ileana Ros-Lehtinen
Ranking Member
H.R. 3202--Foreign Service Overseas Pay Equity Act of 2008.
SUMMARY
H.R. 3202 would increase the compensation of certain
employees of the Foreign Service who serve overseas. CBO
estimates that implementing H.R. 3202 would cost $1.3 billion
over the 2009-2013 period, assuming appropriation of the
necessary amounts. Enacting the bill would not affect direct
spending or revenues.
H.R. 3202 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
ESTIMATED COST TO THE FEDERAL GOVERNMENT
The estimated budgetary impact of H.R. 3202 is shown in the
following table. The costs of this legislation fall within
budget function 150 (international affairs).
BASIS OF ESTIMATE
For this estimate, CBO assumes that H.R. 3202 will be
enacted near the start of fiscal year 2009, that the estimated
amounts will be appropriated each year, and that outlays will
follow historical spending patterns for existing programs.
By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
2009 2010 2011 2012 2013 2009-2013
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level 84 191 327 373 427 1,403
Estimated Outlays 72 172 300 355 409 1,309
----------------------------------------------------------------------------------------------------------------
Pay for Overseas Postings
Section 2 would increase compensation for Foreign Service
Officers (FSOs) who are not members of the Senior Foreign
Service and are posted overseas. Under current law, FSOs based
in the United States receive comparability pay in addition to
their base pay, to reduce the pay disparity between federal and
nonfederal workers. FSOs who are posted overseas do not receive
those amounts. (Members of the Senior Foreign Service are
compensated under a pay-for-performance system that does not
differentiate pay by posting.)
Under the bill, FSOs who are posted overseas would be paid
the same comparability pay received by FSOs posted to
Washington, D.C. (That comparability pay represented about 17
percent of total basic pay for D.C. postings in 2008.) The bill
also specifies a phase-in period: FSOs would receive one-third
of the increased compensation in 2009, two-thirds in 2010, and
the full annual amount starting in 2011. (Section 2 would not
increase retirement benefits, because FSOs who retire from
overseas postings have their annuities calculated as though
their official duty station had been Washington, D.C.)
Recent data from the Department of State indicate that
roughly 8,300 FSOs are posted overseas and have an average
basic pay of about $75,000. In comparison, FSOs posted in
Washington have an average basic pay of about $91,000.
Eliminating the difference between pay for overseas and D.C.
postings, and adjusting the new pay level to reflect estimated
growth in comparability pay (which saw average growth of 9.5
percent a year over the past three years) yields an estimated
cost for 2009 of $42 million--one-third of $126 million.
The above increase in basic pay also would lead to an
increase in other benefits paid to FSOs, such as life
insurance, health insurance, hardship pay, and danger pay.
According to the department, those types of compensation have
historically averaged about 71 percent of basic pay. Therefore,
CBO estimates that under the bill, in 2009, the department
would pay another $30 million--one-third of $89 million--in
other compensation, for a total cost of $72 million that year.
After adjusting for inflation, CBO estimates that costs for
implementing section 2 would total $1.3 billion over the 2009-
2013 period, assuming appropriation of the necessary amounts.
Death Gratuities
Section 3 would increase the death gratuities payable to
the surviving dependents of Foreign Service employees who die
as a result of injuries sustained in the performance of their
duty overseas. Under current law, the death gratuity equals an
employee's annual salary at the time of death. Under the bill,
the department would pay one year's salary at level II of the
Executive Schedule at the time of death or, if the employee was
compensated under a local compensation plan, one year's salary
at highest pay level under that plan at the time of their
death. Based on historical data from the department, CBO
estimates that fewer than five death gratuities would be paid
each year and that implementing this section would cost less
than $500,000 a year, and total $1 million, over the 2009-2013
period, assuming the availability of appropriated funds.
INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT
H.R. 3202 contains no intergovernmental or private-sector
mandates as defined in UMRA and would impose no costs on state,
local, or tribal governments.
ESTIMATE PREPARED BY:
Federal Costs: Sunita D'Monte (226-2840)
Impact on State, Local, and Tribal Governments: Neil Hood (225-
3220)
Impact on the Private Sector: MarDestinee Perez (226-2940)
ESTIMATE APPROVED BY:
Peter H. Fontaine
Assistant Director for Budget Analysis
Performance Goals and Objectives
The Act is intended to resolve the current pay discrepancy
resulting from Washington D.C. based locality pay that is not
received by Foreign Service personnel stationed overseas. The
bill also amends the current death gratuity benefit.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds the authority for
this legislation in article I, section 8 of the Constitution.
New Advisory Committees
H.R. 3202 does not establish or authorize any new advisory
committees.
Congressional Accountability Act
H.R. 3202 does not apply to the Legislative Branch.
Earmark Identification
H.R. 3202 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(d), 9(e), or 9(f) of rule XXI.
Section-by-Section Analysis and Discussion
Section 1. Short Title.
This section provides that the short title of the Act is
the, ``Foreign Service Overseas Pay Equity Act of 2008.''
Section 2. Overseas Comparability Pay Adjustment.
This section would amend Chapter 4 of the Foreign Service
Act of 1980 (22 U.S.C. 3961 and following) to stipulate that
Foreign Service Officers designated class 1 or below, stationed
outside the continental United States and not in a non-foreign
area, receive locality-based comparability payments under
section 5304 of title 5, United States Code, that would be paid
to a member if his or her official duty station were in
Washington, D.C.
Since this is a substantial pay increase for approximately
7,000 overseas personnel, the adjustment will be phased in over
3 years. The Congressional Budget Office estimates that the
cost in FY 2009 will be $72 million, in FY 2010 will be $172
million, and an average of $300-400 million in subsequent
years.
The section also makes conforming amendments to Chapter 8
of the Foreign Service Act of 1980 to remove certain provisions
related to the Foreign Service Retirement and Disability Fund
(the ``Fund '') and Foreign Service Pension System. Foreign
Service retirement benefits are computed on the basis of basic
salary, which includes locality pay. Under the current system,
the provision of locality pay and the higher basic salary
levels in Washington, D.C. provide a serious disincentive for
Foreign Service Officers to serve overseas later in their
careers when their basic salary level directly impacts the
level of their retirement benefits. The discrepancy has skewed
incentives to serve overseas.
Certain changes were made to the Fund and Pension System
provisions to remove this disincentive by adjusting basic
salary computations to include locality pay differentials
solely for purposes of determining retirement benefits.
Subsection (b) sunsets the application of this overseas
``virtual locality pay,'' which no longer will be required
after implementation of the global pay scale. However, virtual
locality pay in effect before October 2010 will continue to be
used in computing annuities for employees who retire after the
new global pay scale takes effect.
The reporting requirement to the appropriate congressional
committees includes a specific requirement that the Secretary
of State provide an assessment as to how all allowances
provided to members of the Foreign Service under the Foreign
Service Act of 1980 or under title 5 of the United States Code
have been or will be affected by the amendments to the Foreign
Service Act of 1980 made by this Act. The Committee is
interested in knowing how much the allowances may increase as a
result of global locality pay, both on an individual basis in
each country and in the aggregate. The Committee would also
like the report to include an assessment regarding the level of
allowances that would be required to recruit Foreign Service
Officers to hardship, danger and other relevant posts given
their increased overall salary. The Committee also would like
an analysis as to whether any increase to allowances creates an
unintended distortion in the amount of such allowances in
relation to the purpose for which allowances are intended.
Section 3. Death Gratuity.
This section amends section 413 of the Foreign Service Act
of 1980 to provide a more uniform gratuity to the surviving
dependents of any Foreign Service employee who dies as a result
of injuries sustained in the performance of duty abroad.
Currently, the amount of the gratuity is equal to the
employee's annual salary at the time of death. The amendment
would adjust the gratuity for all Foreign Service Officers to
level II of the Executive Schedule under section 5313 of title
5 of the United States Code at the time of death. Executive-
level II is currently $172,200. Dependents of employees who are
paid in accordance with a local compensation plan under section
408 of the Foreign Service Act of 1980 would be paid one year's
salary at the highest step of the highest grade on that local
compensation plan or one year's actual salary at the time of
death, whichever is greater.
The Committee expects that dependents of personnel at
overseas posts who are employed by private security contractors
and pursuant to personal service agreements will receive the
same gratuity as employees who are paid in accordance with a
local compensation plan under section 408. The requirement that
such death gratuity be provided should be included in all local
contracts covering such personnel.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
FOREIGN SERVICE ACT OF 1980
* * * * * * *
Sec. 2. Table of Contents.--The table of contents for this
Act is as follows:
TABLE OF CONTENTS
* * * * * * *
Chapter 4--Compensation
Sec. 401. Salaries of chiefs of mission.
* * * * * * *
Sec. 415. Overseas comparability pay adjustment.
* * * * * * *
TITLE I--THE FOREIGN SERVICE OF THE UNITED STATES
* * * * * * *
Chapter 4--Compensation
* * * * * * *
Sec. 413. Death Gratuity.--(a) The Secretary may provide for
payment of a gratuity to the surviving dependents of any
Foreign Service employee who dies as a result of injuries
sustained in the performance of duty abroad, in an amount equal
to one year's salary [at the time of death] at level II of the
Executive Schedule under section 5313 of title 5, United States
Code, at the time of death, except that for employees
compensated under local compensation plans established under
section 408, the amount shall be equal to the greater of 1
year's salary at the time of death or 1 year's salary at the
highest step of the highest grade on the local compensation
plan from which the employee was being paid at the time of
death. Any death gratuity payment made under this section shall
be held to have been a gift and shall be in addition to any
other benefit payable from any source.
* * * * * * *
SEC. 415. OVERSEAS COMPARABILITY PAY ADJUSTMENT.
(a) In General.--A member of the Service who is designated
class 1 or below for purposes of section 403 and whose official
duty station is neither in the continental United States nor in
a non-foreign area shall receive, in accordance with the phase-
in schedule set forth in subsection (c), the same locality-
based comparability payment under section 5304 of title 5,
United States Code (stated as a percentage) as would be payable
to such member if such member's official duty station were in
the District of Columbia.
(b) Treatment as Basic Pay.--The amount of any locality-based
comparability payment which is payable to a member of the
Service by virtue of this section--
(1) shall be considered to be part of the basic pay
of such member--
(A) for the same purposes as provided for
under section 5304(c)(2)(A) of title 5, United
States Code; and
(B) for purposes of chapter 8; and
(2) shall be subject to any limitations on pay
applicable to locality-based comparability payments
under section 5304 of title 5, United States Code.
(c) Phase-in.--The locality-based comparability payment
payable to a member of the Service under this section shall--
(1) beginning on the first day of the first pay
period beginning on or after the date that fiscal year
2009 appropriations are made available by enactment of
the Department of State, Foreign Operations, and
Related Programs Appropriations Act, 2009, or April 1,
2009, whichever is earlier, be equal to 33.33 percent
of the payment which would otherwise apply under
subsection (a);
(2) beginning on the first day of the first pay
period in fiscal year 2010, be equal to 66.67 percent
of the payment which would otherwise apply under
subsection (a); and
(3) beginning on the first day of the first pay
period in fiscal year 2011 and each subsequent fiscal
year, be equal to the payment determined under
subsection (a).
(d) Non-Foreign Area Defined.--For purposes of this section,
the term ``non-foreign area'' has the same meaning as is given
such term in regulations carrying out section 5941 of title 5,
United States Code.
* * * * * * *
Chapter 8--Foreign Service Retirement and Disability
subchapter i--foreign service retirement and disability system
* * * * * * *
Sec. 805. Contributions to the Fund.--(a)(1) Except as
otherwise provided in this section, [7.25 percent] 7 percent of
the basic salary received by each participant shall be deducted
from the salary and contributed to the Fund for the payment of
annuities, cash benefits, refunds, and allowances. [The
contribution by the employing agency shall be a percentage of
basic salary equal to the percentage in effect under section
7001(d)(1) of the Balanced Budget Act of 1997 (Public Law 105-
33; 22 U.S.C. 4045 note), and section 505(h) of the Department
of Transportation and Related Agencies Appropriations Act, 2001
(as enacted by Public Law 106-346; 114 Stat. 1356A-54), plus
.25 percent of basic salary, and shall be made] An equal amount
shall be contributed by the employing agency from the
appropriations or fund used for payment of the salary of the
participant. The employing agency shall deposit in the Fund the
amounts deducted and withheld from basic salary and the amounts
contributed by the employing agency.
(2) Notwithstanding the percentage limitation contained in
paragraph (1) of this subsection--
(A) the employing agency shall deduct and withhold from the
basic pay of a Foreign Service criminal investigator/inspector
of the Office of the Inspector General, Agency for
International Development, who is qualified to have his annuity
computed in the same manner as that of a law enforcement
officer pursuant to section 8339(d) of title 5, an amount equal
to that to be withheld from a law enforcement officer pursuant
to section 8334(a)(1) of title 5[, plus an amount equal to .25
percent of basic pay]. The amounts so deducted shall be
contributed to the Fund for the payment of annuities, cash
benefits, refunds, and allowances. An equal amount shall be
contributed by the employing agency from the appropriations or
fund used for payment of the salary of the participant. The
employing agency shall deposit in the Fund the amount deducted
and withheld from basic salary and amounts contributed by the
employing agency.
(B) The employing agency shall deduct and withhold from the
basic pay of a Foreign Service criminal investigator/inspector
of the Office of the Inspector General, Agency for
International Development, who is qualified to have his annuity
computed pursuant to section 8415(d) of title 5, an amount
equal to that to be withheld from a law enforcement officer
pursuant to section 8422(a)(2)(B) of title 5[, plus an amount
equal to .25 percent of basic pay]. The amounts so deducted
shall be contributed to the Fund for the payment of annuities,
cash benefits, refunds, and allowances. An equal amount shall
be contributed by the employing agency from the appropriations
or fund used for payment of the salary of the participant. The
employing agency shall deposit in the Fund the amounts deducted
and withheld from basic salary and amounts contributed by the
employing agency.
(3) For service as a special agent, paragraph (1) shall be
applied by substituting for ``7 percent'' the percentage that
applies to law enforcement officers under section 8334(a)(1) of
title 5, United States Code[, plus .25 percent.].
* * * * * * *
Sec. 806. Computation of Annuities.--(a)(1) * * *
* * * * * * *
(9) For purposes of any annuity computation under this
subsection, the basic salary or basic pay of any member of the
Service whose official duty station [is outside the continental
United States shall] was outside the continental United States
during the period beginning on December 29, 2002, and ending on
the day before the first day of the first pay period beginning
on or after October 1, 2010 (or during any portion thereof)
shall, to the extent that such computation is based on the
basic salary or basic pay of such member for such period (or
portion thereof), be considered to be the salary or pay that
would have been paid to the member had the member's official
duty station been Washington, D.C., including locality-based
comparability payments under section 5304 of title 5, United
States Code, that would have been payable to the member if the
member's official duty station had been Washington, D.C.
* * * * * * *
SUBCHAPTER II--FOREIGN SERVICE PENSION SYSTEM
* * * * * * *
Sec. 855. Entitlement to Annuity.--(a)(1) * * *
* * * * * * *
(3) For purposes of any annuity computation under this
subsection, the average pay (as used in [section 8414] section
8415 of title 5, United States Code) of any member of the
Service whose official duty station [is outside the continental
United States shall] was outside the continental United States
during the period beginning on December 29, 2002, and ending on
the day before the first day of the first pay period beginning
on or after October 1, 2010 (or during any portion thereof)
shall, to the extent that such computation is based on the
basic salary or basic pay of such member for such period (or
portion thereof), be considered to be the salary that would
have been paid to the member had the member's official duty
station been Washington, D.C., including locality-based
comparability payments under section 5304 of title 5, United
States Code, that would have been payable to the member if the
member's official duty station had been Washington, D.C.
* * * * * * *
Sec. 856. Deductions and Withholdings From Pay.--(a)(1) * * *
[(2) The applicable percentage under this subsection shall be
as follows:
7.5.............. Before January 1, 1999.
7.75............. January 1, 1999, to December 31, 1999.
7.9.............. January 1, 2000, to December 31, 2000.
7.55............. After January 11, 2003.]
(2) The applicable percentage under this subsection shall be
as follows:
Percentage Time Period
7.5 Before January 1, 1999.
7.75 January 1, 1999, to December 31, 1999.
7.9 January 1, 2000, to December 31, 2000.
7.55 January 11, 2003, to the day before the first day of
the first pay period beginning on or after October
1, 2010.
7.5 Beginning on the first day of the first pay period
beginning on or after October 1, 2010.
* * * * * * *
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