Repeal of Reductions in Military Retired Pay

Date: Mon, 25 Oct 1999 15:23:51 -0400
To: "USGS Employees"
From: "Leila J. McKamey" 
Subject: Repeal of Reductions in Military Retired Pay

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In Reply Refer To:
Mail Stop 601


MEMORANDUM


To:         All U.S. Geological Survey Employees

From:     Joyce D. Pieritz
               Acting Personnel Officer

Subject:  Repeal of Reductions in Military Retired Pay

On October 5, 1999, President Clinton signed the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106-65).  Section 651
repeals section 5532 of title 5, United States Code. This action ends the
reductions in retired or retainer pay previously required of retired
members of the uniformed service who are employed in a civilian office or
position of the U.S. Government.  The repeal is effective retroactively to
October 1, 1999.  

The repeal ends two former reductions in military retired pay that applied
to some Federal employees:

1) the pay cap that limited the combined total of Federal civilian basic
salary plus military retired pay to $110,700 (Executive Level V) for all
Federal employees who are retirees of a uniformed service; and

2) the partial reduction of retired pay required of retired officers of a
regular component of a uniformed service.

The new law does not, however, repeal other parts of the Dual Compensation
Act of 1964.   Military service of retired members of a uniformed service
does not count as creditable service for retention, annual leave accrual,
and retirement purposes.  However, a retired member can  make a deposit on
their military service and receive credit for retirement purposes if they
waive their retired military pay.  Also, this law does not affect salary
offsets required of reemployed civilian annuitants under the Civil Service
Retirement System and Federal Employees Retirement System.  

Personnel offices and military finance centers will work together to make
all necessary adjustments, so no action is needed on the part of affected
employees.  Questions regarding restoration of retired pay should be
directed to the appropriate uniformed service finance center.