An Act to amend the Foreign Service Act of 1946, as amended, and for other purposes.
PL 86-723 (S.2633), enacted 09/08/1960

74 STAT.] 
PUBLIC L
A
W 86-723-SEPT. 8, 1960 
831 
Public Law 86-723 
AN ACT 
September 8, 1960 
To amend the Foreign Service Act of 1946, as amended, and for otlier purposes. 
^
^
- ^^^^^ 
Be it enacted ly the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Foreign Service Act Amendments of 1960". 
SEC. 2. Section 416 of the Foreign Setvice Act of 1946, as amended, 
is amended to read as follows: 
"SEC. 416. (a) A person appointed as a staff officer or employee 
shall receive basic salary at one of the rates of the class to which he 
is appointed which the Secretary shall, taking into account his quali-
fications and experience and the needs of the Service, determine to 
be appropriate for him to receive. 
"(b) Whenever the Secretary determines that the needs of the 
Service warrant the appointment of staff officers or employees in a 
particular occupational group uniformly at a rate above the minimum 
rate of the applicable class, he may adjust the basic salary of any 
staff officer or employee in the same class and occupational group who 
is receiving less than such established rate." 
SEC. 3. Section 417 of such Act is amended by striking out " (b)" 
in the first sentence. 
SEC. 4. Section 431 of such Act is amended by striking out in the 
first sentence of paragraph (a) the phrase "the termination of time 
spent on authorized leave, whichever shall be later," and inserting 
in lieu thereof the phrase "upon termination of his service in accord-
ance with the provisions of paragraph (b) of this section,"; and by 
amending paragraph (b) of this section to read as follows: 
"(b) The official services of a chief of mission shall not be deemed 
terminated by the appointment of a successor but shall continue until 
he has relinquished charge of the mission and for such additional 
period as may be determined by the Secretary, but in no case shall such 
additional period exceed fifty days, including time spent in transit. 
During such period the Secretary may require him to render such serv-
ices as he may deem necessary in the interests of the Government." 
SEC. 5. Section 441 of such Act and the heading to such section are 
amended to read as follows: 
Foreign Service 
A c t 
Amendment s 
of 1960. 
60 Stat. 1004. 
22 u s e 871. 
Staff 
officer 
employee. 
22 u s e 872. 
22 u s e 88 1. 
Chiefs of mi s-
sions. 
22 u s e 886. 
"CLASSIFICATION 
OF POSITIONS I N THE FOREIGN SERVICE AND I N 
THE 
DEPARTMENT 
"SEC 441. (a) Under such regulations as he may prescribe, and in 
order to facilitate effective management, the Secretary shall classify all 
positions in the Service at posts abroad, excluding positions to be 
occupied by chiefs of mission, and in the case of those occupied by For-
eign Service officers. Reserve officers, and staff officers and employees, 
he shall establish such positions in relation to the classes established by 
sections 412, 414, and 415, respectively. Positions occupied by alien 2 
employees and consular agents, respectively, shall be allocated to such 8
7
o 
classes as the Secretary may establish by regulation. 
"(b) Under such regulations as he mayprescribe. the Secretary may, 
notwithstanding the provisions of the Classification Act of 1949, as 
amended (5 U.S.C. 1071 and the following), classify positions in or 
under the Department which he designates as Foreign service Officer 
positions to be occupied by officers and employees of the Service, and 
establish such positions in relation to the classes established by sections 
412^ 414, and 415." 
SEC. 6. Section 444 of such Act and the heading to such section are 
amended to read as follows: 
Ante, 
p. 299. 
22 u s e 867, 869, 
63 Stat. 954. 
22 u s e 889. 
832 
PUBLIC LAW 86-723-SEPT. 8, 1960 
[74 S T A T . 
60 Stat. 1007. 
22 u s e 901 et 
seq. 
"COMPENSATION PI^VNS FOR ALIEN EMPLOYEES 
"SEC. 444. (a) The Secretary shall, in accordance with such regula-
tions as he may prescribe, establish compensation plans for alien 
employees of the Service: Provided, 
That such compensation plans 
shall be based upon prevailinjr wago rates and compensation practices 
for corresponding types of positions in the locality, to the extent con-
sistent with the public interest. 
"(b) For the purpose of performing functions abroad, other Govern-
ment agencies are authorized to administer alien employee programs in 
accordance with the applicable provisions of this Act.-' 
SEC. 7. Title V of such Act is amended by adding at the beginning 
thereof the following new section: 
22 u s e 911. 
eiass 7 or 8 ap-
pointment s. 
22 u s e 912. 
22 u s e 915. 
Recall to duty. 
Annuitants. 
Reemployment. 
Post, p. 835. 
"POLICY 
"SEC. 500. It is the policy of the Congress that chiefs of mission and 
Foreign Service officers appointed or assigned to serve the United 
States in foreign countries shall have, to the maximum practicable 
extent, among their qualifications, a useful knowledge of the principal 
language or dialect of the country in which they are to serve, and 
knowledge and understanding of the history, the culture, the economic 
and political institutions, and the interests of such country and its 
people." 
SEC. 8. (a) The heading to section 516 of such Act is amended to 
read as follows: "ADMISSION TO CLASS 7 OR S". 
(b) Section 516 of such Act is amended by striking out "SEC. 516." 
and inserting in lieu thereof "SEC. 516. (a)" and by adding at the end 
thereof a new paragraph (b) which shall read as follows: 
"(b) The Secretary may furnish the President with the names of 
those persons who have passed such examinations and are eligible for 
appointment as Foreign Service officers of class 8, whom he recom-
mends for appointment directly to class 7 when in his opinion, their 
age, experience, or other qualifications make such an appointment 
appropriate," 
SEC. 9. (a) Section 517 of such Act is amended by striking out the 
words "A person who has not served in class 8" which appear at the 
beginning of the first sentence, and inserting in place thereof the fol-
lowing: "A person who has not been appointed as a Foreign Service 
officer in accordance with section 516 of this Act". 
(b) Section 517 of such Act is further amended by striking out the 
second and third sentences of such section. 
SEC. 10. (a) The heading to section 520 of such Act is amended by 
striking out the phrase "REINSTATEMENT AND RECALL" and substituting 
in lieu thereof the phrase "REAPPOINTMENT, RECALL, OR REEMPLOYMENT". 
(b) The first sentence of paragraph (a) of section 520 of such Act 
is amended by inserting a period after the w^ord "Service" where it 
appears for the third time, and by striking out the remainder of that 
sentence. 
(c) Paragraph (b) of section 520 of such Act is amended to read 
as follows: 
"(b) The Secretary may recall any retired Foreign Service officer 
temporarily to duty in the Service w^henever he shall determine such 
recall is in the public interest." 
(d) Section 520 of such Act is further amended by adding at the 
end thereof a new paragraph (c) which shall read as follows: 
"(c) Notwithstanding the provisions of title 5, United States Code, 
section 62, and title 5, I%ited States Code, section 7l5a, a Foreign 
Service officer heretofore or hereafter retired under the provisions of 
section 631 or 632 or a Foreign Service staff officer or employee here-
t4-STA^T.] 
PUBLIC LAW 86-723-SEPT. 8, 1960 
833 
after retired under the provisions of section 803 shall not, by reason 
of his retired status, be barred from employment in Federal Govern-
ment service in any appointive position tor which he is qualified. An 
annuitant so reemployed shall serve at the will of the appointing 
officer." 
SEC. 11. Section 528 of such Act is amended by striking out in the 
second sentence of such section the phrase "subsection (d), section 7, 
of the Classification Act of 1923" and substituting in lieu thereof the 
phrase "the Classification Act of 1949". 
SEC. 12. Section 531 of such Act is amended to read as follows: 
"SEC. 531. The Secretary may, under such regulations as he may 
prescribe, appoint staff officers and employees on the basis of qualifi-
cations and experience. The Secretary may make provisions for tem-
porary, limited, and such other types of appointment as he majr deem 
necessary. He is authorized to establish appropriate probationary 
periods during which newly appointed staff officers or employees, other 
than those appointed for temporary or limited services shall be re-
quired to serve. The Secretary may terminate at any time, without 
regard to the provisions of section 637, or the provisions of any 
other law, the services of staff officers or employees appointed for tem-
porary or limited service and staff officers or employees who have not 
completed j)robationary periods, except that if sucn separation is by 
reason of misconduct the provisions of section 637 shall be applicable.'' 
SEC. 13. Section 532 of such Act is amended to read as follows: 
"SEC. 532. Under such regulations as he may prescribe, the Secre-
tary may assign a staff officer or employee to anj^ post or he may assign 
liim to serve m any position in which he is eligible to serve under the 
terms of this or any other Act. A staff officer or employee may be 
transferred from one post to another by order of the Secretary as the 
interests of the Service may require." 
SEC. 14. (a) Section 571 of such Act is amended by striking out 
paragraphs (a), (b), (c), and (d), and the heading to such section, 
and inserting in lieu thereof the following: 
Post, p. 838. 
22 u s e 928. 
22 u s e 936. 
Appointment s. 
Post, p. 836. 
22 u s e 937. 
Assignments and 
transfers. 
22 u s e 961. 
"ASSIGNMENTS TO ANY GOVERNMENT AGENCY OR INTERNATIONAL 
ORGANIZATION 
"SEC..571. (a) Any officer or employee of the Service may, in the 
discretion of the Secretary, be assigned or detailed for duty in any 
Government agency, or in any international organization, interna-
tional commission, or international body, such an assignment or com-
bination of assignments to be for a period of not more than four years, 
except that under special circumstances the Secretary may extend this 
four-year period for not more than four additional years. 
"(b) If a Foreign Service officer shall be appointed by the Presi-
dent, by and with the advice and consent of the Senate, or by the 
President alone, to a position in any Government agency, any United 
States delegation or mission to any international organization, in any 
international commission, or in any international body, the period of 
his service in such capacity shall be construed as constituting an as-
signment within the meaning of paragraph (a) of this section and 
such person shall not, by virtue of the acceptance of such an assign-
mentj lose his status as a Foreign Service officer. Service in such a 
position shall not, however, be subject to the limitations concerning 
the duration of an assignment contained in that paragraph. 
"(c) If the basic minimum salary of the position to which an officer 
or employee of the Service is assigned pursuant to the terms of this 
section is higher than the salary such officer or employee is entitled to 
I'eceive as an officer or employee of the Service, such officer or employee 
shall, during the period such difference in salary exists, receive the 
48232 0-61-53 
seq, 
834 
PUBLIC LAW 86-723~SEPT. 8, 1960 
[74 STAT. 
salary and allowances of the position in which he is serving in lieu 
of his salary and allowances as an officer or employee of the Service. 
Any salary paid under the provisions of this section shall be the salary 
on the basis of which computations and payments shall be made in 
22 use 801 et accordancc with the provisions of title VIII. No officer or employee 
of the Service who, subsequent to the date of enactment of the Foreign 
Service Act Amendments of 1960, is assigned to, or who, after June 
30, 1961, occupies a position in the Department that is designated as 
a Foreign Service officer position, shall be entitled to receive a salary 
diiferential under the provisions of this paragraph." 
22 use 961. 
(b) Paragraph (e) of section 571 of such Act is amended by strik-
ing the phrase "with heads of Government agencies" where it appears 
in the second sentence and by redesignating the paragraph as "(d)". 
22 use 965. 
gjjQ i^ Section 575 of such Act is amended by striking out all after 
the word "accordance" and inserting in lieu thereof the phrase "with 
the appropriate provisions of titles I I I and I X of Public Law 402, 
Eightieth Congress (62 Stat. 7 and 13; 22 U.S.C. 1451-1453,1478 and 
1479)." 
22 use 901 et 
SEC. 16. Title V of such Act is further amended by adding at the end 
thereof the following new section: 
seq. 
"FOREIGN LANGUAGE KNOWLEDGE PREREQUISITE TO ASSIGNMENT 
"SEC. 578. The Secretary shall designate every Foreign Service 
Officer position in a foreign country whose incumbent should have a 
useful knowledge of a language or dialect common to such country. 
After December 31, 1963, each position so designated shall be filled 
only by an incumbent having such knowledge: Provided, 
That the 
Secretary or Deputy Under Secretary for Administration may make 
exceptions to this requirement for individuals or when special or 
emergency conditions exist. 
The Secretary shall establish foreign 
language standards for assignment abroad of officers and employees of 
the Service, and shall arrange for appropriate language training of 
such officers and employees at the Foreign Service Institute or else-
where." 
22 use 995. 
gEc. 17. Sectiou 625 of such Act and the heading of such section are 
amended to read as follows: 
"WITHIN-CLASS SALARY INCREASES OF FOREIGN SERVICE OFFICERS AND 
RESERVE OFFICERS 
"SEC. 625. Any Foreign Service officer or any Reserve officer, whose 
services meet the standards required for the efficient conduct of the 
work of the Service and who shall have been in a given class for a 
continuous period of nine months or more, shall, on the first day of 
each fiscal year, receive an increase in salary to the next higher rate 
for the class in which he is serving. Without regard to any other law, 
the Secretary is authorized to grant to any such officer additional in-
creases in salary, within the salary range established for the class in 
which he is serving, based upon especially meritorious service." 
SEC. 18. Title VI of such Act is amended by inserting after section 
625 the following new section and the heading thereto: 
" R E L A T I O N S H I P B E T W E E N PROMOTIONS AND FUNCTIONAL AND GEOGRAPHIC 
AREA SPECIALIZATION 
" S E C 626. The achievement of the objectives of this Act requires 
increasing numbers of Foreign Service officers to acquire functional 
and geographic area specializations and to pursue such specializations 
for a substantial part of their careers. Such specialization shall not 
74 S T A T . ] 
PUBLIC LAW 86-723-SEPT. 8, 1960 
835 
in any way inhibit or prejudice the orderly advancement through class 
1 of any such officer in the Foreign Service." 
SEC. 19. The heading "PART D—SEPARATION OF FOREIGN SERVICE 
OFFICERS FROM THE SERVICE" under title VI of such Act is amended 
to read as follows: "PART D—SEPARATION OF OFFICERS AND EMPLOYEES 
FROM THE SERVICE". 
SEC. 20. Section 631 of such Act and the heading to such section are 
amended to read as follows: 
"FOREIGN SERVICE OFFICERS WHO ARE CAREER AMBASSADORS OR CAREER 
MINISTERS 
"SEC. 631. Any Foreign Service officer who is a career ambassador 
or a career minister, other than one occupying a position as chief of 
mission or any other position to which he has been appointed by the 
President, by and with the advice and consent of the Senate, shall upon 
reaching the age of sixty-five, be retired from the Service and receive 
retirement benefits in accordance with the provisions of section 821, 
but whenever the Secretary shall determine it to be in the public 
interest, he may extend such an officer's service for a period not to 
exceed five years." 
SEC. 21. Section 632 of such Act and the heading to such section are 
amended to read as follows: 
22 u s e 100 1. 
Post, 
p. 839. 
22 u s e 1002. 
"PARTICIPANTS IN THE FOREIGN SERVICE RETIREMENT AND DISABILITY 
SYSTEM WHO ARE NOT CAREER AMBASSADORS OR CAREER MINISTERS 
"SEC. 632. Any participant in the Foreign Service Ketirement and 
Disability System, other than one occupying a position as chief of mis-
sion or any other position to which he has been appointed by the Presi-
dent, by and with^the advice and consent of the^enate, who is not a 
career ambassador or a career minister shall, upon reaching the age of 
sixty, be retired from the Service and receive retirement benefits in 
accordance with the provisions of section 821, but whenever the Secre-
tary shall determine it to be in the public interest, he may extend such 
participant's service for a period not to exceed five years." 
SEC. 22. Subparagraphs (1) and (2) of paragraph (b) of section 
634 of such Act are amended to read as follows: 
"(1) one-twelfth of a year's salary at his then current salary 
rate for each year of service and proportionately for a fraction of 
a year, but not exceeding a total of one year's salary at his then 
current salary rate, payable without interest, from the Foreign 
Service Retirement and Disability Fund, in three equal install-
ments on the 1st day of January following the officer's retirement 
and on the two anniversaries oi this date immediately following: 
Provided, That in special cases, the Secretary may in his discre-
tion accelerate or combine the installments; and 
"(2) a refund of the contributions made to the Foreign Service 
Retirement and Disability Fund, with interest as provided in sec-
tion 841(a), except that in lieu of such refund such officer, if he 
has at least five years of service credit toward retirement under 
the Foreign Service Retirement and Disability System, excluding 
military or naval service that is credited in accordance with the 
provisions of section 851 or 852(a), may elect to receive retirement 
benefits on reaching the age of sixty in accordance with the provi-
sions of section 821. In the event that an officer who was separated 
from class 4 or 5 and who has elected to receive retirement benefits 
dies before reaching the age of sixty, his death shall be considered 
a death in service within the meaning of section 832. In the event 
that an officer who was separated from class 6 or 7 and who has 
Post, p. 839. 
22 u s e 1004. 
S e l e c t i o n-out 
benefits. 
Poet, p. 843. 
Post, p. 844. 
Post, 
p. 839. 
PoBt, p. 842. 
836 
PUBLIC LAW 86-723-SEPT. 8, 1960 
[74 STAT. 
elected to receive retirement benefits dies before reaching the age 
of sixty, the total amount of his contributions made to the Foreign 
Service Retirement and Disability Fund, with interest as pro-
vided in section 841(a), shall be paid in accordance with the 
provisions of section 841 (b)." 
SEC. 23. Section 635 of such Act and the heading to such section are 
amended to read as follows: 
Post, p. 843. 
22 u s e 1005. 
Ante, p. 832. 
22 uscnoog. 
22 u s e 1007. 
n 
FOREIGN SERVICE OFFICERS RETIRED FROM CLASS 7 OR 8 
"SEC. 635. Any Foreign Service officer in class 7 who is appointed 
under the provisions of section 516(b) and any Foreign Service officer 
in class 8 shall occupy probationary status. 
The Secretary may termi-
nate his service at any time." 
SEC. 24. Section 636 of such Act is amended by striking out the 
phrase "Any Foreign Service officer" and inserting in lieu thereof 
the phrase "Any participant in the Foreign Service Retirement and 
Disability System". 
SEC. 25. (a) Paragraphs (a), (b), (c), and (d) of section 637 of 
such Act and the heading to such section are amended to read as 
follows: 
"SEPARATION FOR CAUSE 
"SEC. 637. (a) The Secretary may, under such regulations as he may 
prescribe, separate from the Service any Foreign Service officer. 
Reserve officer, or staff officer or employee, on account of the unsatis-
factory performance of his duties, or for such other cause as will 
promote the efficiency of the Service, with reasons given in writing, 
but no such officer or employee shall be so separated until he shall have 
been granted a hearing by the Board of the Foreign Service and the 
unsatisfactory performance of his duties, or other cause for separation, 
shall have been established at such hearing, unless he shall have waived 
in writing his right to a hearing. The provisions of this section shall 
not apply to Foreign Service officers of class 8 or any other officer or 
employee of the Service who is in a probationary status or whose 
appointment is limited or temporary, except when separation is by 
reason of misconduct. 
"(b) Any participant in the Foreign Service Retirement and Dis-
ability System separated under the provisions of paragraph (a) of this 
section shall receive a refund of the contributions made to the Foreign 
Service Retirement and Disability Fund, with interest, as provided in 
Post, p. 843. 
section 841(a) except that in lieu of such refund such officer may 
(except in cases where the Secretary determines that separation was 
based in whole or in part on the ground of disloyalty to the United 
States) if he has at least five years of service credit toward retirement 
under this System, excluding military or naval service that is credited 
gg^os*' pp- 851. in accordance with the provisions of section 851 or 852(a), elect to 
leave his contributions in the Fund and receive an annuity, computed 
Post, p. 839. 
j
j
^
g prescribed in section 821 commencing at the age of sixty years. In 
the event that an officer who has elected under the provisions of this 
section to receive a deferred annuity dies before reaching the a^e of 
sixty, his contributions to the Fund, with interest, shall be paid in 
84^.° ^'' ^^' ^^^' accordance with the provisions of sections 841 and 881. 
"(c) Any officer or employee of the Service separated under the 
provisions of paragraph (a) of this section who is not a participant in 
the Foreign Service Retirement and Disability System shall be entitled 
only to such benefits as shall accrue to him under the retirement system 
in which he is a participant. 
74 S T A T . ] 
PUBLIC LAW 86-723-SEPT. 8, 1960 
837 
"(d) Any payments made in accordance with the provisions of 
paragraph (b) of this section shall be made out of the Foreign Service 
Retirement and Disability Fund." 
SEC. 26. Section 638 of such Act and the heading to such section are 
amended to read as follows: 
22 use 1008. 
Ante, p. 836. 
"TERMINATION OF LIMITED APPOINTMENTS OF FOREIGN SERVICE 
RESERVE OFFICERS AND STAFF OFFICERS AND EMPLOYEES 
"SEC. 638. Notwithstanding the provisions of this or any other la\y, 
the Secretary may, under such regulations as he may prescribe, termi-
nate at any time the services of any Reserve officer or staff officer or 
employee serving under limited appointment, except that, if the termi-
nation is because of misconduct, the provisions of section 637 shall be 
applicable." 
SEC. 27. Section 641 of such Act is amended to read as follows: 
Jroml?ions.' 
"SEC. 641. All promotions of staff officers and employees to a higher 
class shall be made at a higher salary on the basis of performance and 
merit in accordance with such regulations as the Secretary may pre-
72 TT^O 10 1/ 
SEC. 28. Section 642 of such Act and the heading thereto are 
amended to read as follows: 
" W I T H I N 
CLASS AND LONGEVITY SALARY INCREASES 
"SEC. 642. (a) Under such regulations as the Secretary may pre-
scribe, any staff officer or employee whose services meet the standards 
required tor the efficient conduct of the work of the Service shall re-
ceive an increase in salary at periodic intervals to the next higher 
salary rate for the class in which he is serving. Without regard to 
any other law the Secretary is authorized to grant any such officer or 
employee additional increases in salary within the salary range estab-
lished for the class in which he is serving, based upon specially 
meritorious service. 
"(b) Under such regulations as the Secretary may prescribe, any 
staff officer or employee w^ho has attained the maximum salary rate 
prescribed by section 415 for the class in which he is serving may be 
22 u's^"87o?' 
granted from time to time an additional salary increase beyond the 
maximum salary rate for his class in recognition of longevity or pro-
ficiency in the Service. Each such salary increase shall be equal to 
the maximum' salary rate increase of the applicable class and no per-
son shall receive more than four such salary increases while serving 
in the same class." 
SEC. 29. Section 701 of such Act is amended by adding at the end 
lorefg*^ ^service 
thereof the following: "The Secretary may also provide to the extent institute. 
that space is available therefor appropriate orientation and language 
training to spouses of officers and employees of the Government m 
anticipation of the assignment abroad of such officers and employees. 
Other agencies of the Government shall wherever practicable avoid 
duplicating the facilities of the Institute and the training provided 
by the Secretary at the Institute or elsewhere." 
SEC. 30. (a) Paragraph (a) of section 704 of such Act is amended 
^^ "^^ ^°^^' 
by striking out "1923" m the two places where it appears and insert-
ing in lieu thereof "1949". 
(b) Section 704 of such Act is amended by adding at the end of 
such section new paragraphs (e) and (f) which shall read as follows: 
"(e) The Secretary may, under such regulations as he may pre-
scribe, in the absence of suitably qualified United States citizens, em-
ploy persons who are not citizens of the United States by appointment 
PUBLIC L
A
W 86-723-SEPT. 8, 1960 
[74 STAT. 
to the staff of the Institute either on a full- or part-time basis or by 
contract for services in the United States or abroad at rates not in ex-
cess of those provided by the Classification Act of 1949, as amended 
(5U.S.C. 1071). 
"(f) The Secretary may, under such regulations as he may pre-
soriDe, provide special monetary or other incentives not inconsistent 
with this Act to encourage Foreign Service personnel to acquire or 
retain proficiency in esoteric foreign languages or special abilities 
needed in the Service." 
2
2 use 1063. 
g^c. 31. (a) Section 803(b) (2) of such Act is amended to read as 
Retirement and -frkllrkTuc 
Disability Fund. 
x u i n j w » 
"(2) have paid into the Fund a special contribution for each 
year of such service in accordance with the provisions of section 
852(b).'' 
(b) Section 803 is further amended by adding at the end thereof 
a new paragraph (c) which shall read as follows: 
"(c) (1) In accordance with such regulations as the President may 
prescribe, any Foreign Service staff officer or employee appointed by 
the Secretary of State who has completed at least ten years of con-
tinuous service in the Department's Forei^ Service, exclusive of 
military service, shall become a participant in the System and shall 
make a special contribution to the Fund in accordance with the pro-
visions 01 section 852. 
"(2) Any such officer or employee who, under the provisions of 
paragraph (c) (1) of this section, becomes a participant in the Sys-
tem, shall be mandatorily retired for age during the first year after 
the effective date of this paragraph if he attains age sixty-four or if 
he is over age sixty-four; during the second year at age sixty-three; 
during the third year at age sixty-two; during the fourth year at age 
sixty-one, and thereafter at age sixty. 
" (3) Any officer or employee who becomes a participant in the Sys-
tem under the provisions of pai*agraph (c) (1) of this section who is 
age 57 or over on the effective date of this paragraph, may retire vol-
untarily at any time before mandatory retirement under paragraph 
(c) (2) of this section and receive retirement benefits under section 
Post, p. 839. 
821. 
IL'i^t^t s?^' 
SEC. 32. Section 804 of such Act is amended to ,read as follows: 
"SEC. 804. (a) Annuitants shall be persons who are receiving annu-
ities from the Fund and all persons, including surviving wives and 
husbands, widows, dependent widowers, children and beneficiaries of 
participants or annuitants who shall become entitled to receive annu-
ities in accordance with the provisions of this Act, as amended, or 
in accordance with the provisions of section 5 of the Act of May 1, 
22 use 1
0
7
9 et 1956 (70 Stat. 125). 
" j 
b) When used in this title the term— 
"(1) 'Widow' means the surviving wife of a participant who was 
married to such participant for at least two years immediately pre-
ceding his death or is the mother of issue by such marriage. 
"(2) 'Dependent widower' means the surviving husband of a par-
ticipant who was married to such participant for at least two years 
immediately preceding her death or is the father of issue by such 
marriage, 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' means an unmarried child, 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. In addition to the offspring of the participant and 
his or her spouse the term includes (a) an adopted child, and (b) a 
aeq. 
74 S T A T . ] 
PUBLIC LAW 86-723-SEPT. 8, 1960 
889 
step-child or recognized natural child who received more than one-
half of his support from the participant." 
SEC. 33. Section 811 of such Act is amended to read as follows: 
R^tV^of*°cortri-
"SEC. 811. (a) Six and one-half per centum of the basic salary re- bution. 
ceived 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 Department of State in the Treasury of the United States 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 ri^ht to the benefits to which he 
shall be entitled under this Act, notwithstanding any law, rule, or 
regulation affecting the individual's salary." 
SEC. 34. (a) Paragraphs (a), (b), and (c) of section 821 of such Act 
" use io76. 
are amended to read as follows: 
"SEC. 821. (a) The annuity of a participant shall be equal to 2 per 
^^** °* °^""y* 
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 
851,852, and 853. However, the highest five years of service for which 8«f ^'' ^^* ^^^' 
full contributions have been made to the Fund shall be used in com- 
22 use 1093. 
puting the annuity of any participant who serves as chief of mission 
and whose continuity of service as such is interrupted prior to retire-
ment by appointment or assignment to any other position determined 
by the Secretary to be of comparable importance. 
In 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) At the time of retirement, any married participant may elect nu^y.*^""" °' °"" 
to receive a reduced annuity and to provide for an annuity payable to 
his wife or her husband, commencing on the date following such par-
ticipant's death and terminating upon the death of such surviving wife 
or husband. 
The annuity payable to the surviving wife or husband 
after such participant's death shall be 50 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 by 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 $2,400 he specifies as the base for the survivor benefit 
plus 10 per centum of any amount over $2,400 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 (a) 
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; (li) $720; or (iii) $2,160 
divided by the number of children." 
S u r v i v o r ' s ar»» 
nulty. 
840 
PUBLIC LAW 86-723-SEPT. 8, 1960 
[74 S T A T , 
22 u s e 1076. 
B e n e f i c i ary's 
annuity. 
22 u s e 1081. 
Disability retire-
ment. 
Ante, p. 839. 
Physical 
ination. 
(b) Section 821 of such Act is further amended by adding new para-
graphs (d), (e), and (f) which shall read as follows: 
"(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 first day of the next month after the par-
ticipant dies and such annuity or any right thereto shall be terminated 
upon death, marriage, or attainment of the age of eighteen years, ex-
cept that, if a child is incapable of self-support by reasons of mental or 
physical disability, the annuity shall be terminated only when such 
child dies, marries, or recovers irom such disability. 
" (f) At the time of retirement an unmarried participant may elect to 
receive a reduced annuity and to provide for an annuity equal to 50 per 
centum of the reduced annuity payable after his or her death to a bene-
ficiary whose name shall be designated in writing to the Secretary. 
The annuity payable to a 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 retiring participant, but such total reduction shall not exceed 
40 per centum. No such election of a reduced annuity payable to a 
beneficiary shall be valid until the participant shall have satisfactorily 
passed a physical examination as prescribed by the Secretary. 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. 
Upon the death of the surviving beneficiary all payments shall cease 
and no further annuity payments authorized under this paragraph 
shall be due or payable." 
SEC. 35. (a) Paragraphs (a), (b), and (c) of section 831 of such Act 
are amended to read as follows: 
"(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 851 or 852(a) (2), 
and who becomes totally disabled or incapacitated for useful and effi-
cient service by reason of disease, illness, or injury not due to vicious 
habits, intemperance, or willful misconduct on his part, shall, upon 
his own application or upon order of the Secretary, be retired on an 
annuity computed as prescribed in section 821. If the disabled or in-
capacitated participant 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 age at the time of retirement and the mandatory retirement 
age applicable to his class in the Service. 
" (b) In each case, the participant shall be given a physical exami-
nation by one or more duly qualified physicians or surgeons designated 
by the Secretary to conduct examinations, and disability shall be 
determined by the Secretary on the basis of the advice of such physi-
cians or surgeons. Unless the disability is permanent, like examina-
tions shall be made annually until the annuitant has reached the 
statutory mandatory retirement age for his class in the Service. If 
the Secretary 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 reappointment in 
the Service within one year from the date his recovery is determined. 
Post, 
p. 843. 
Post, 
p. 843. 
74 S T A T . ] 
PUBLIC LAW 86-723-SEPT. 8, 1960 
841 
Upon application the Secretary shall reinstate any such recovered 
disability annuitant in the class in which he was serving at time of 
retirement, or the Secretary may, taking into consideration the age, 
qualifications, and experience of such annuitant, and the present class 
of his contemporaries in the Service, appoint him or, in the case of 
an annuitant who is a former Foreign Service officer, recommend 
that the President appoint him, by and with the advice and consent 
of the Senate, to a class 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 Service, 
whichever 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 
annuitant fails to submit to examination as required under this sec-
tion, payment of the annuity shall be suspended until continuance of 
the disability is satisfactorily established. 
"(c) If a recovered disability annuitant whose annuity is discon- biufy a^'uitmt!^" 
tinned is for any reason not reinstated or reappointed in the Service, 
he shall be considered to have been separated within the meaning of 
section 834 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 841(a) except that he may elect 
voluntary retirement in accordance with the provisions of section 636 
if he can qualify under its provisions." 
(b) Section 831 of such Act is further amended by adding new 
22 use losi. 
paragraphs (d) and (e) which shall read as follows: 
"(d) No participant shall be entitled to receive an annuity under 
Dual payments, 
this Act and compensation for injury or disability to himself under 
the Federal Employees' Compensation Act of September 7, 1916, as 
amended, covering the same period of time. This provision shall not 
f^ufc^Vs^fnote 
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 Act of September 7, 1916, as amended, shall 
be so construed as to deny the right of any person to receive an an-
nuity under this Act by reason of his own services and to receive 
concurrently any payment under such Act of September 7, 1916, as 
amended, by r3ason 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 compensa-
tion in a lump sum under section 14 of the Act of September 7, 1916, 
as amended, except that where such annuity is payable on account 
of the same disability for which compensation under such section has 
been paid, so much of such compensation as has been paid for any 
period extended beyond the date such annuity becomes effective, as 
determined by the Secretary of Labor, shall be refunded to the De-
partment of Labor, to be paid into the Federal Employees' Com-
pensation Fund. 
Before such person shall receive such annuity he 
shall (1) refund to the Department of Labor the amount represent-
ing such computed payments for such extended period, or (2) au-
thorize the deduction of such amount from the annuity payable to 
him under this Act, which amount shall be transmitted to such Depart-
ment for reimbursement to such Fund. 
Deductions from such an-
nuity may be made froni accrued and accruing payments, or may 
be prorated against and paid from accruing payments 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." 
846. 
842 
PUBLIC L
A
W 88-723-SEPT. 8, 1960 
[74 STAT. 
22 use 1082. 
SEC. 36. Section 832 of such Act is amended to read as follows: 
Death In Service. 
"SEC. 832. (a) In 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 841(a) and 
Post, pp. 8 4 3, 881(a), shall be paid in the order of precedence shown in section 
841(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 851 
Post, p. 844. 
or 852(a) (2), dies before separation or retirement from the Service 
and is survived by a widow or a dependent widower, as defined in 
Ante, p. 838. 
section 804, such widow or dependent widower shall be entitled to an 
annuity equal to 50 per centum of the annuity computed in accordance 
with the provisions of paragraph (e) of this section and of section 
Ante, p. 839. 
821(a). The annuity of such widow or dependent widower shall 
commence on the date following death of the participant and shall 
terminate upon death 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 jears of service credit 
toward retirement under the System, excluding military or naval 
service that is credited in accordance with the provisions of section 851 
or 852(a) (2), dies before separation or retirement from the Service 
and is survived by a wife or a husband and a child or children, each 
surviving child shall be entitled to an annuity computed in accordance 
with the provisions of section 821(c) (1). The child's annuity shall 
begin and be terminated in accordance with the provisions of section 
821 (e). Upon the death of the surviving wife or husband or termina-
tion of the annuity of a child, the annuities of any remaining chil-
dren 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 jears of service credit 
toward retirement under the System, excluding military or naval 
service that is credited in accordance with the provisions of section 
851 or 852(a) (2), dies before separation or retirement from the Serv-
ice and is not survived by a wife or husband, but by a child or chil-
dren, each surviving child shall be entitled to an annuity computed 
in accordance with the provisions of section 821(c) (2). The child's 
annuity shall begin and terminate in accordance with the provisions 
of section 821 (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. 
"(e) If, at the time of his or her death^ the participant had less than 
twenty years of service credit toward retirement under the System, the 
annuities payable in accordance with paragraph (b) of this section 
shall be computed in accordance with the provisions of section 821 on 
the assumption he or she has had twenty years of service, but the 
additional service credit that may accrue to a deceased participant 
under this provision shall in no case exceed the difference between his 
or her age on the date of death and the mandatory retirement age ap-
plicable to his or her class in the Service. In all cases arising under 
paragraphs (b), (c), (d), or (e) of this section, it shall be assumed 
that the deceased participant was qualified for retirement on the date 
of his death.'* 
SEC. 37. A new section 834 is hereby added to such Act as follows: 
74 
S T A T . ] 
PUBLIC LAW 86-723-SEPT. 8, 1960 
843 
a 
DISCONTINUED SERVICE RETIREMENT 
"SEC. 834. (a) Any participant who voluntarily separates from the 
Service after obtaining at least five years of service credit toward re-
tirement under the System, excluding military or naval service that 
is credited in accordance with the provisions of section 851 or 
852(a)(2), may, upon separation from the Service or at any time 
prior to becoming eligible for an annuity, elect to have his contribu-
tions to the Fund returned to him in accordance with the provisions 
of section 841, or to leave his contributions in the Fund and receive 
an annuity, computed as prescribed in section 821, commencing at the 
age of sixty 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 dies before reaching the age of sixty 
his contributions to the Fund, with interest, shall be paid in accord-
ance with the provisions of sections 841 and 881." 
SEC. 38. Section 841 of such Act is amended to read as follows: 
"SEC. 841. (a) Whenever a participant becomes separated from the buVion* 
Service without becoming eligible for an annuity or a deferred an-
nuity in accordance with the provisions of this Act, the total amount 
of contributions from his salary with interest thereon at 4 per centum 
per annum, compounded annually at the end of each fiscal year 
through June 30, 1960; semiannually as of December 31, 1960; an-
nually thereafter as of December 31, and proportionately for the 
period served during the year of separation including all contribu-
tions made during or for such period, except as provided in section 
881, shall be returned to him. 
"(b) In the event that the total contributions of a retired partici-
pant, other than voluntary contributions made in accordance with the 
provisions of section 881, with interest at 4 per centum per annum 
compounded annually as is provided in paragraph (a) of this section 
added thereto, exceed the total amount returned to such participant 
or to an annuitant claiming through him, in the form of annuities, 
accumulated at the same rate of interest up to the date the annuity 
payments cease under the terms of the annuity, the excess of the 
accumulated contributions over the accumulated annuity payments 
shall be paid in the following order of precedence, upon the establish-
ment 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 the retired 
participant in writing to the Secretary; 
"(2) If there be no such beneficiary, to the surviving wife or hus-
band of such participant; 
"(3) If none of the above, to the child or children of such partici-
pant 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 admin-
istrator of the estate of such participant; 
"(6) If none of the above, to other next of kin of such participant 
as may be determined by the Secretary 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." 
Po»t, p. 844. 
Infra. 
Ante, p. 839. 
22 u s e 1016. 
Return of contrl* 
Post, p. 846. 
844 
PUBLIC LAW 86-723-SEPT. 8, 1960 
[74 ST A T . 
22 u s e 1091. 
Con^ut ation 
o f 
length of service. 
22 u s e 1092. 
Prior 
credit s. s e r v i c e 
T r a n s f e r from 
o t h e r retirement 
systems. 
Ante, p. 839. 
SEC. 39. Section 851 of such Act is amended to read as follows : 
"SEC. 851. For the purposes of this title, the period of service of a 
participant shall be computed from the effective date of appointment 
as a Foreign Service officer, or, if appointed prior to July 1, 1924, as 
an officer or employee of the Diplomatic or Consular Service of the 
United States, or from the date he becomes a participant under the 
provisions of this Act, as amended, but all periods of separation from 
the Service 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 
amended, and leaves of absence granted participants while perform-
ing active and honorable military or naval service in the Army, Navy, 
Air Force, Marine Corps, or Coast Guard of the United States." 
SEC. 40. (a) Paragraphs (a), (b), and (c) of section 852 of such 
Act are amended to read as follows: 
"(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 Co-
lumbia government, prior to becoming a participant; and 
"(2) active and honorable military or naval service in the 
Army, Navy, Marine Corps, Air Force, or Coast Guard of the 
United States. 
"(b) A person may obtain prior civilian service credit in accord-
ance with tne provisions of paragraph (a) (1) of this section by mak-
ing a special contribution to the Fund equal to 5 per centum of his 
basic annual salary for each year of service for which credit is sought 
subsequent to July 1, 1924, and prior to the effective date of the For-
eign Service Act Amendments of 1960, and at 614 per centum there-
after with interest compounded anually at 4 per centum per annum 
to the date of payment. Any such person may, under such conditions 
as may be determined in each instance by the Secretary, pay such 
special contributions in installments. 
"(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 officer or employee, 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 
were made to the other Government retirement fund, nor shall any 
refund be made to any such officer or employee on account of contribu-
tions made during any period to the other Government retirement 
fund, at a higher rate than that fixed by section 811 of this Act for 
contributions to the Fund. 
"(3) No officer or employee, 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 subsequent to 
July 1, 1924, for which a refund of contributions has been made, or 
for which no contributions were made to the other Government retire-
22 u s e 1092. 
Restriction. 
T4 S T A T . ] 
PUBLIC LAW 86-723-SEPT. 8, 1960 
845 
ment fund. A participant may, however, obtain credit for such prior 
service by making a special contribution to the Fund in accordance 
with the provisions of paragraph (b) of this section." 
(b) Section 852 of such Act is further amended by adding at the 
end thereof new paragraphs (d) and (e) which shall read as follows: 
"(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 another retirement system covering civilian person-
nel of the Government. 
" (e) A participant may obtain prior military or naval service credit ser^ice^CTedit*.^^^ 
in accordance with the provisions of paragraph (a) (2) of this sec-
tion by applying for it to the Secretary prior to retirement or separa-
tion from the Service. However, in the case of a participant who 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 
disability 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, 
United States Code), or is awarded under chapter 67 of title 10 of the 
^8 use 30i et 
United States Code, the period of such military or naval service shall 
be included. No contributions to the Fund shall be required in con- ^J^^ '^^^ *^^^ *' 
nection with military or naval service credited to a participant in 
accordance with the provisions of paragraph (a) (2) of this section." 
SM7. 41. Such Act is amended by adding after section 854 a new 
section as follows: 
22 u s e 1094. 
RECOMPUTATION OF ANNUITIES OF CERTAIN FORMER PARTICIPANTS 
"SEC. 855. The annuity of each former participant under the Sys-
tem, who retired prior to July 28, 1956, and who at the time of his 
retirement had creditable service in excess of thirty years, shall be 
recomputed on the basis of actual years of creditable service not in 
excess of thirty-five years. Service which was not creditable under 
the System on the date a former participant retired, shall not be in-
cluded as creditable service for the purpose of this recomputation. 
The annuities payable to such persons shall, when recomputed, be 
paid at the rates so determined, but no such recomputation or any 
other action taken pursuant to this section shall operate to reduce 
the rate of the annuity any such person is entitled to receive under the 
System." 
SEC. 42. The heading "Part 
H—OFFICERS KEINSTATED IN 
THE 
SERVICE" under title VIII of such Act is amended to read as follows: 
"PART 
H—ANNUITANTS 
RECALLED, 
REINSTATED 
OR 
REAPPOINTED 
IN THE SERVICE OR REEMPLOYED I N T H E GOVERNMENT". 
SEC. 43. Section 871 of such Act is amended and a heading is added 
^^ "®^ ^^^^* 
thereto as follows: 
"RECALL 
832. 
"SEC. 871. Any annuitant recalled to duty in the Service in accord-
ance with the provisions of section 520(b) or reinstated or reappointed 
'^'®' ^ 
in accordance with the provisions of section 831(b), shall, while so 
^^^' ^' *'*°' 
serving, be entitled in lieu of his annuity to the full salary of the class 
in which he is serving. During such service, he shall make contribu-
tions to the Fund in accordance with the provisions of section 811. ^^^' P* ^39. 
When he reverts to his retired status, his annuity shall be determined 
anew in accordance with the provisions of section 821." 
^^^' ^' ^^^' 
846 
PUBLIC LAW 86-723-SEPT. 8, 1960 
[74 S T A T . 
SEC. 44. A new section 872 is hereby added to such Act as follows: 
'REEMPLOYMENT 
ii-. 
"SEC. 872. (a) Notwithstanding any other provision of law, any 
officer or employee of the Service, who has retired under this Act, as 
amended, and is receiving an annuity pursuant thereto, and who is 
reemployed in the Federal Government service in any appointive posi-
tion either on a part-time or full-time basis, shall be entitled to receive 
the salary of the position in which he is serving plus so much of his 
annuity payable under this Act, as amended, which when combined 
with such salary does not exceed during any calendar year the basic 
salary such officer or employee was entitled to receive under sections 
^usc'*867,'87o. ^^^ ^^ ^^^ ^^ ^^® ^^^' ^^ amended, on the date of his retirement from 
the Service. Any such reemployed officer or employee who receives 
salary during any calendar year in excess of the maximum amount 
which he may be entitled to receive under this paragraph shall be en-
titled to such salary in lieu of benefits hereunder. 
"(b) When any such retired officer or employee of the Service is re-
employed, the employer shall send a notice to the Department of State 
of such reemployment together with all pertinent information relat-
ing thereto and shall cause to be paid, by transfer or otherwise, to the 
Department of State funds necessary to cover gross salary, employer 
contributions, and gross lump sum leave payment relating to the em-
ployment of the reemployed officer or employee. The Department of 
State shall make to and on behalf of the reemployed officer or em-
ployee payments to which he is entitled under the provisions of para-
graph (a) of this section, and shall make those withholdings and de-
ductions authorized and required by law. 
"(c) In the event of any overpayment under this section the Secre-
tary of State is authorized to withhold the amount of such overpay-
ment from the salary payable to such reemployed officer or employee 
or from his annuity." 
22 use 1116. 
SEC. 45. (a) So much of paragraph (a) of section 881 of such Act 
as precedes subparagraph (1) thereof is amended to read as follows: 
birtkii^**'^ contri- 
«^^^ ^j^y participant mav, at his option and under such regulations 
as may be prescribed by the President, 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 amounts together with interest at 3 
per centum per annum, compounded annually at the end of each fiscal 
year through June 30, 1960; semiannually as of December 31, 1960; 
annually thereafter as of December 31, and proportionately for the 
period served during the year of his retirement, including all con-
tributions made during or for such period, shall, at the date of his re-
tirement and at his election, be—". 
(b) Paragraph (c) of section 881 of such Act is amended by delet-
ing the word "annually" and inserting in lieu thereof the phrase "as 
is provided in paragraph (a) of this section", and by changing the 
words "withdrawal from active service" at the end of such paragraph 
to "separation from the Service". 
22 use 1137. 
gEc^ 46_ Sectioii 912 of such Act is amended by changing the head-
ing thereto to read "LOAN OF HOUSEHOLD FURNISHINGS AND EQUIPMENT" 
and by inserting between the words "with household" the word "basic" 
and by inserting between the words "household equipment" the phrase 
"furnishings and". 
SEC. 47. Section 913 of such Act and the heading thereto is amended 
to read as follows: 
22 use 1138. 
74 S T A T . ] 
P U B U C LAW 86-723~SEPT. 8, 1960 
847 
"TRANSPORTATION OF MOTOR VEHICLES 
"SEC. 913. The Secretary may, notwithstanding the provisions of 
any other law, transport for or on behalf of an officer or employee of 
the Service, a privately owned motor vehicle in any case in which he 
shall determine that water, rail, or air transportation of the motor 
vehicle is necessary or expedient for all or any part of the distance be-
tween points of origin and destination. 
Not more than one motor 
vehicle of any such officer or employee may be transported under 
authority of this section during any four-year period, except that, as a 
replacement for such motor vehicle, one additional motor vehicle of 
any such officer or employee may be so transported during such period 
upon approval, in advance, by the Secretary and upon a determina-
tion, in advance, by the Secretary that such replacement is necessary 
for reasons beyond the control of the officer or employee and is in the 
interest of the Government. After the expiration of a period of four 
years following the date of transportation under authority of this sec-
tion of a privately owned motor vehicle of any officer or employee 
who has remained m continuous service outside the continental United 
States (excluding Alaska and Hawaii) during such period, the trans-
portation of a replacement for such motor vehicle for such officer or 
emj)loyee may be authorized by the Secretary in accordance with this 
section." 
SEC. 48. (a) Section 1021 of such Act is amended by inserting the 
^^ use 809. 
phrase "the Department including" immediately prior to the phrase 
"the Service" wherever it appears in this section. 
(b) Section 1021(a) is further amended by striking out the phrase 
"if recommendedi>y the Director General" and inserting in lieu thereof 
the phrase "at the discretion of the Secretary". 
SEC. 49. Section 4 of the Foreign Service Buildings Act, 1926, as 
amended (22 U.S.C. 295), is amended by adding at the end thereof 
^^ stat. 405. 
the following new subsection: 
"(c) For the purpose of carrying into effect the provisions of this 
Appropriation. 
Act there is hereby authorized to be appropriated, in addition to 
amounts previously authorized, an amount not to exceed $10,000,000, 
which shall remain available until expended." 
SEC. 50. Section 11 of the Act of August 1,1956 (70 Stat. 890), is 
s use i7op. 
hereby amended by inserting after the phrase "Government-owned 
vehicles" the phrase "or taxicabs", and by inserting after the phrase 
"public transportation facilities" the phrase "other than taxicabs". 
SEC. 51. Paragraph (4) of section 104(a) of the Internal Kevenue 
Code of 1954 (26 U.S.C. 104(a) (4)) (relating to the exclusion from 
gross income of compensation for injuries and sickness) is hereby 
amended to read as follows: 
"(4) amounts received as a pension, annuity, or similar allow-
ance for personal injuries or sickness resulting from active service 
in the armed forces of any country or in the Coast and Geodetic 
Survey or the Public Health Service, or as a disability annuity 
payable under the provisions of section 831 of the Foreign Service 
Act of 1946, as amended (22 U.S.C. 1081; 60 Stat. 1021)." 
SEC. 52. The following headings and sections in the Foreign Service 
Act of 1946, as amended, are hereby repealed: 
5^22 u|c 887,925, 
(1) Section 442 of such Act and the heading thereto. 
(2) Section 525 of such Act and the heading thereto. 
(3) Section 576 of such Act and the heading thereto. 
(4) Section 577 of such Act and the heading thereto. 
848 
PUBLIC LAW-723-SEPT. 8, 1960 
[74 ST A T . 
Reinstatement. 
E X i s t i ng rul e s 
and regulations. 
Re s t r i ction on 
c e r t a i n 
separa-
tions. 
Ante, p. 836. 
Effective dates. 
SEC. 53. Any person who occupies a position in the Department of 
State to which he was appointed by the President, by and with the 
advice and consent of the Senate, at the time that he was an active 
Foreign Service officer, and who while holding this position has retired 
for age as a Foreign Service officer, and who on the effective date of 
this section, continues to hold such position is hereby reinstated, effec-
tive as of the date of such retirement, to active status as a Foreign 
Service officer and shall be entitled to all the provisions of the Foreign 
Service Act of 1946, as amended, as though he had never retired. 
SEC. 54. Notwithstanding the provisions of this Act, existing rules 
and regulations of or applicable to the Foreign Service of the United 
States shall remain in effect until revoked or rescinded or until modi-
fied or superseded by regulations made in accordance with the provi-
sions of the Foreign Service Act of 1946, as amended by this Act, 
unless clearly,inconsistent with the provisions of this Act or the pro-
visions so amended. 
SEC. 55. Notwithstanding any other provisions of law, any For-
eign Service staff officer who accepted an appointment as a Foreign 
Service Reserve officer in the Department of State during the period 
beginning September 1, 1958, and ending December 31, 1958, both 
dates inclusive, shall not be separated from the Foreign Service be-
fore the expiration of his original appointment as a Foreign Service 
Reserve officer, except as authorized by section 637 of the Foreign 
Service Act of 1946, as amended. 
SEC. 56. (a) The provisions of this Act shall become effective as of 
the first day of the first pay period which begins more than thirty 
days after the date of enactment of this Act, except as provided in 
paragraph (b), (c), (d), and (e) of this section, and except as other-
wise provided in the text of this Act. 
(b) (1) The provisions of paragraph (c) (1) of section 803 of the 
Foreign Service Act of 1946, as amended by section 31 (b) of this Act, 
shall become effective on the first day of the first month which begins 
more than one year after the date of enactment of this Act, except 
that any Foreign Service staff officer or employee, who at the time this 
Act becomes effective meets the requirements for participation in the 
Foreign Service Retirement and Disability System, may elect to be-
come a participant in the System before the mandatory provisions 
become effective. 
Such Foreign Service staff officers and employees 
shall become participants effective on the first day of the second month 
following the date of their application for earlier participation. 
(2) The provisions of paragraph (c) (2) of section 803 of the For-
eign Service Act of 1946, as amended by section 31(b) of this Act, 
shall become effective on the first day of the first month which begins 
more than three years after the date of enactment of this Act. 
(c) The amendment made by section 33 of this Act, with respect 
to a contribution to the Foreign Service Retirement and Disability 
Fund to be made by the Department, shall become effective July 1, 
1961. 
(d) The amendment made by section 41 of this Act shall take 
effect on the first day of the first month which begins more than thirty 
days after the date of enactment of this Act. 
(e) The amendment made by section 51 of this Act shall be effec-
tive with respect to taxable years ending after the date of enactment 
of this Act. 
Approved September 8, 1960.