An Act to provide for the discontinuance of the Postal Savings System, and for other purposes
PL 89-377 (H.R.8030), enacted 03/28/1966

92 
PUBLIC LAW 89-377-MAR. 28, 1966 
[80 STAT. 
March 28, 1966 
[H. R. 80 30] 
Public Law 89-377 
AN ACT 
To provide for the discontinuance of the Postal Savings System, and for other 
purposes. 
Regulations of 
Board of Trustees, 
Be it enacted hy the Senate and House of Representatwes 
of the 
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United States of America in Congress assembled^ That title 39, United 
Discontinuance. States Codc, is amended by adding the following new sections to 
74 Stat. 68 2. 
chapter 85 thereof: 
"§5225. Discontinuance of Postal Savings System 
" (a) The closing date for the Postal Savings System is the thirtieth 
day immediately following the date of the enactment of this Act. On 
and after the closing date no deposits shall be accepted in existing 
postal savings account and no new postal savings account shall be 
opened. After the closing date the Board of Trustees of the Postal 
Savings System shall not be required to maintain the 5 per centum 
reserve of postal savings funds otherwise required to be maintained by 
section 5214 of this title nor to apportion deposits in banks in accord-
ance with sections 5215 and 5219 of this title. 
"(b) Interest on deposits in the Postal Savings System shall cease 
to accrue on the anniversary dates of the respective certificates occur-
ring in the twelve-month period starting with the closing date. 
"§5226. Liquidation of accounts 
"(a) During the closing period beginning on the closing date and 
ending on the last day of the first fiscal year which shall begin after 
such closing date, the Postmaster General is authorized and directed, 
to the extent practicable, to terminate the business, settle and pay the 
accounts, liquidate the assets, discharge the obligations, and otherwise 
wind up the affairs of the Postal Savings System, in accordance with 
such rules, regulations, and authority as may be prescribed by the 
Board of Trustees of the Postal Savings System. 
"(b) In the settlement and payment of any Postal Savings account, 
including all interest accrued thereon, which is maintained in the 
name of the deceased, presumed dead or incompetent depositor, or 
which is determined payable to— 
"(1) a minor, 
" (2) a person adjudicated mentally incompetent or under other 
legal disability, or 
"(3) the estate of a person who is deceased or presumed dead, 
the payment of such account, or any appropriate share thereof, may 
be made to a legal representative of the depositor, or to a legal rep-
resentative of the person or property of such claimant. Where there 
are no outstanding guardianship or administration proceedings on 
the person or estate of the depositor, or the person or estate of such 
claimant, the Board of Trustees of the Postal Savings System shall 
determine the person who is otherwise qualified to receive payment 
according to theJ laws of descent and distribution of the State where 
the account is held. Payment made under this subsection shall be a 
bar to recovery by any other claimant of amounts so paid. 
" (c) Until the last day of the first fiscal year which shall begin after 
the closing date for the Postal Savings System, the Postmaster Gen-
eral shall continue to cover into the postal revenues the excess of inter-
est and profit accruing from the deposit or investment of postal 
savings funds after the payment of interest due to depositors m the 
Postal Savings System. 
"(d) The annual report of the Post Office Department for the fiscal 
year which includes the closing date shall include a statement with 
Annual report. 
80 STAT.] 
PUBLIC LAW 89-378-MAR. 30, 1966 
93 
respect to the progress, results, and status of the winding up of the 
affairs of the Postal Savings System under this Act, together with 
such recommendations as the Postmaster General deems advisable. 
"§5227. Liquidation of investments 
"To facilitate the winding up of the affairs of the Postal Savings 
System, the Secretary of the Treasury shall redeem or purchase the 
public debt obligations of the United States, which are held for the 
account of the Postal Savings System, at their par value whenever it 
will not be advantageous to sell such public debt obligations on the 
regular market. 
"§5i228. Transfer of deposits to Treasury 
"Effective on the first day of the second fiscal year which shall begin 
after the closing date for the Postal Savings System, the total amount 
of unpaid deposits, including the accrued interest due thereon, as 
shown by the books of the Board of Trustees of the Postal Savings 
System, shall be transferred to the Secretary of the Treasury. 
The 
Secretary of the Treasury shall deposit the amount so transferred 
under authority of this section in the Treasury to the credit of the trust 
fund receipt account 'Unclaimed moneys of individuals whose where-
abouts are unknown'. Expenditures are authorized to be made from 
such account as provided oy section 725p of title 31, United States 
C o d e . 
^8 Stat. 1230. 
"§5229. Regulations 
"The Board of Trustees of the Postal Savings System is authorized 
and directed to prescribe such rules and regulations, and to make such 
delegation of authority, as may be necessary to carry out the purposes 
of sections 5225-5228 of this title." 
SEC. 2. The table of contents of chapter 85 of title 89, United States 
^^ ^'^'- ^82. 
Code, is amended by adding thereto the following: 
"5225. Discontinuance of Postal Savings System. 
"5226. Liquidation of accounts. 
"5227. Liquidation of investments. 
"5228. Transfer of deposits to Treasury. 
"5229. Regulations." 
Approved March 28, 1966. 
Public Law 89-378 
AN ACT 
March 30, 1965 
To authorize redetermination under the Civil Service Retirement Act of annuities 
[H. R. 969] 
of certain reemployed annuitants. 
Be if enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assenibled, That the last sen- 
certain civii 
tence of section 13(b) of the Civil Service Retirement Act, 5 U.S.C. ^Tec'o^mpu'tatiw' 
2263(b), is amended to read as follows: "Notw^ithstanding the restric- 
^s stat. 771. 
tion contained in section 115 of the Social Security Amendments of 
1954, Public Law 83-761, a similar right to redetermination after 
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deposit shall be applicable to an annuitant (1) whose annuity is based 
on an involuntary separation from the service and (2) who is 
separated on or after July 12, 1960, after such period of full-time 
reemployment which began before October 1, 1956.^' 
SEC. 2. Notwithstanding any other provision of law, annuitj^ benefits 
resulting from enactment of this Act shall be paid from the civil service 
retii'ement and disability fund. 
Approved March 30, 1966. 
42 use 4 10 note. 
65-300 0-67—9