[Federal Register Volume 67, Number 115 (Friday, June 14, 2002)]
[Rules and Regulations]
[Page 40837]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15012]



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  Federal Register / Vol. 67, No. 115 / Friday, June 14, 2002 / Rules 
and Regulations  

[[Page 40837]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 550 and 553

RIN 3206-AI92


Repeal of Dual Compensation Reductions for Military Retirees

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is publishing final 
regulations recognizing the end of reductions in uniformed service 
(military) retired or retainer pay previously required by law of 
military retirees employed by the Federal Government. We are adopting 
the interim regulations as final without change and provide 
supplementary information to answer the questions we received.

EFFECTIVE DATE: The regulations are effective on July 15, 2002.

FOR FURTHER INFORMATION CONTACT: Laurence T. Lorenz on (202) 606-0960, 
FAX (202) 606-2329, or e-mail [email protected].

SUPPLEMENTARY INFORMATION: Section 651 of the National Defense 
Authorization Act for Fiscal Year 2000, Public Law 106-65, repealed 5 
U.S.C. 5532. This repeal ended two reductions in uniformed service 
(military) retired or retainer pay previously required of military 
retirees employed by the Federal Government. This repeal did not change 
other parts of the Dual Compensation Act of 1964 that gave military 
retirees a ``fresh start'' for Federal civilian employment. The law 
continues to limit crediting military service of retirees as civilian 
service for employment benefits. For military retirees, the law allows 
credit only for service in the armed forces during war, or service for 
which a campaign badge is awarded, or when disability retirement is 
based on disability resulting from armed conflict or in the line of 
duty during a war; see 5 U.S.C. 3501 and 3502(a) for retention, 6303(a) 
for annual leave, and 8411(c) for retirement. The law requires agencies 
to credit uniformed service of non-retired service members as civilian 
service. We received many forms of the following four questions:
    1. Do any Federal pay caps count retired military or retainer pay? 
No, the remaining Federal pay caps do not count uniformed service 
(military) retired or retainer pay.
    2. Why can't agencies count the military service of military 
retirees for annual leave, retention and retirement purposes? The Dual 
Compensation Act of 1964 required that retired uniformed (military) 
service members have a ``fresh start'' upon appointment to the Federal 
civil service. As a result, generally agencies may not use the military 
service of a retiree to grant civilian employment benefits. The law 
provides exceptions for service in the armed forces during war and 
campaigns and for retirements based on disability resulting from armed 
conflict or in the line of duty during a war. In 1999, Public Law 106-
65 repealed only the dual pay limitations of the 1964 Act.
    3. What exceptions allow agencies to credit the military service of 
non-retirees and some military retirees as civilian service? The law 
requires agencies to credit uniformed (military) service of non-
retirees as civilian service. For military retirees, the law only 
allows credit for service in the armed forces during a war, service in 
a campaign for which a campaign badge is awarded or when the retirement 
is based on disability resulting from an armed conflict or in the line 
of duty during a period of war. For details about these exceptions see 
5 U.S.C. 3501 and 3502(a)--retention, 6303(a)--annual leave, and 
8411(c)--retirement. Federal agencies use the law and The Guide to 
Processing Personnel Actions, especially Chapter 6, to credit uniformed 
(military) service of retirees. The OPM website, www.opm.gov/feddata/gppa/gppa.htm, contains a copy of the Guide.
    4. May military retirees use their veterans' preference? Yes, 
retirement does not change a service member's entitlement to veterans' 
preference in Federal hiring.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities because it pertains 
only to Federal agencies.

Executive Order 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Order 12866.

List of Subjects

5 CFR Part 550

    Administrative practice and procedure, Government employees, 
Claims, Wages.

5 CFR Part 553

    Administrative practice and procedure, Government employees, 
Military Personnel, Retirement, Wages.

U.S. Office of Personnel Management.
Kay Coles James,
Director.

    Accordingly, the interim regulations amending 5 CFR parts 550 and 
553 which were published at 65 FR 19643, on April 12, 2000, are adopted 
as final regulations without change.

[FR Doc. 02-15012 Filed 6-13-02; 8:45 am]
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