An Act to amend the Civil Service Retirement Act vvith respect to interest earnings on special Treasury issues held by the civil service retirement and disability fund, with respect to employees of agricultural stabilization and conservation county committees, and with respect to certain other categories of persons subject to such Act, and for other purposes
PL 87-350 (S.739), enacted 10/04/1961

770 
PUBLIC LAW 87-350-OCT. 4, 1961 
[75 ST A T 
October 4, 1961 
[S. 739] 
Public Law 87-350 
AN ACT 
To amend the Civil Service Retirement Act vv^ith respect to interest earnings 
on special Treasury issues held by the civil service retirement and disability 
fund, with respect to employees of agricultural stabilization and conservation 
county committees, and with respect to certain other categories of persons 
subject to such Act, and for other purposes. 
Civil Service Re-
t i r e m e n t Act, a-
mendment. 
Public debt ob-
ligations. 
40 Stat. 288. 
31 u s e 774, 
5 u s e 2267. 
70 Stat. 748, 753. 
5 u s e 
2 2 5 4 , 
2259. 
7 u s e 610. 
Effective date. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of ATnerica in Congress assembled, That (a) subsection 
(d) of section 17 of the Civil Service Retirement Act, as amended 
(70 Stat. 759; 5 U.S.C. 2267(d)), is amended to read as follows: 
"(d) The purposes for which obligations of the United States may 
be issued under the Second Liberty Bond Act, as amended, are hereby 
extended to authorize the issuance at par of public-debt obligations 
for purchase by the fund. 
Such obligations issued for purchase by 
the fund shall have maturities fixed with due regard for the needs of 
the fund and bear interest at a rate equal to the average market yield 
computed as of the end of the calendar month next preceding the 
date of such issue, borne by all marketable interest-bearing obligations 
of the United States then forming a part of the public debt that are 
not due or callable until after the expiration of four years from the 
end of such calendar month, except that where such average market 
yield is not a multiple of one-eighth of 1 per centum, the rate of 
interest on such obligations shall be the multiple of one-eighth of 1 
per centum nearest such average market yield. 
The Secretary of 
the Treasury may purchase other interest-bearing obligations of the 
United States, or obligations guaranteed as to both principal and 
interest by the United States, on original issue or at the market price 
only if he determines that such purchases are in the public interest." 
(b) All special issues in which the civil service retirement and 
disability fund is invested in accordance with section 17(d) of the 
Civil Service Retirement Act as in effect prior to the enactment of 
this Act shall be redeemed and the moneys reinvested by the Secretary 
of the Treasury, as nearly as may be practicable, in equal annual 
amounts over the period of ten calendar years beginning with the 
calendar year 1962, in accordance with such section 17(d), as amended 
by subsection (a) of this section. 
SEC. 2. (a) Paragraphs (2) and (3) of section 2(h) of the Civil 
Service Retirement Act, as amended (74 Stat. 302; 5 U.S.C. 2252(h) 
(2) and (3)), are amended to read as follows: 
"(2) The Commission is authorized and directed to accept the 
certification of the Secretary of Agriculture or his designee with 
respect to service, for purposes of this Act, of the type rendered 
by employees described in paragraph (3) of this subsection. 
"(3) Subject to the provisions of sections 4(c) and 9(f) of 
this Act, service rendered prior to July 10, 1960, as an employee 
of a county committee established pursuant to section 8(b) of the 
Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h 
(b)) or of a committee or an association of producers described 
in section 10(b) of the Agricultural Adjustment Act of May 12, 
1933 (48 Stat. 37), shall be included in computing length of 
creditable service for the purposes of this Act." 
(b) The amendment made by subsection (a) of this section shall 
become effective as of July 1,1961. 
75 S T A T . ] 
PUBLIC LAW 87-350-OCT. 4, 1961 
771 
SEC. 3. Section 11 (h) of the Civil Service Retirement Act, as 
amended (74 Stat. 409; 5 U.S.C. 2261 (h)), is amended— 
(1) by inserting "(1)" immediately following " ( h ) " ; and 
(2) by adding at the end thereof the following: 
"(2) Any employee— 
"(A) who is separated from the service prior to July 12, 
1960; and 
"(B) who continues in the service after July 12, 1960, 
without break in service of one workday or more, 
shall be granted the benefits of paragraph (1) of this subsection 
as if he were separated after July 12, I960,". 
SEC. 4. (a) Sections 7(d) and 7(e) of the Civil Service Retire-
ment Act, as amended (70 Stat. 750, 751; 5 U.S.C. 2257(d) and (e)), 
are amended to read as follows: 
"(d) If such annuitant, before reaching age sixty, recovers from a^^hiiir^ ^ ^ ° "" 
his disability, payment of the annuity shall cease upon reemployment 
by the Government or one year from the date of the medical examina-
tion showing such recovery, whichever is earlier. If such annuitant, 
before reaching age sixty, is restored to an earning capacity fairly 
comparable to the current rate of compensation of the position occu-
pied at the time of retirement, payment of the annuity shall cease 
upon reemployment by the Government or one year from the end of 
the calendar year in which earning capacity is so restored, whichever 
is earlier. Earning capacity shall be deemed restored if, in each of 
two succeeding calendar years, the income of the annuitant from 
wages or self-employment, or both, shall equal at least 80 per centum 
of the current rate of compensation of the position occupied immedi-
ately prior to retirement. 
"(e) If such annuitant whose annuity is discontinued under sub- ara"^°n""*^^ ^*^' 
section (d) is not reemployed in any position included in the provi-
sions of this Act, he shall be considered except for service credit, as 
having been involuntarily separated from the service for the purposes 
of this Act as of the date of discontinuance of the disability annuity 
and shall, after such discontinuance, be entitled to annuity in accord-
ance with the applicable provision of this Act. 
In the case of an 
annuitant w^iose annuity is heretofore or hereafter discontinued 
because of an earning capacity provision of this or any prior law and 
such annuitant is not reemployed in any position included in the pro-
visions of this Act, annuity at the same rate shall be restored effective 
the first of the year following any calendar year in which his income 
from wages or self-employment, or both, is Jess than 80 per centum 
of the current rate of compensation of the position occupied imme-
diately prior to retirement, if he has not recovered from the disability 
for which he was retired. 
In the case of an annuitant whose annuity 
is heretofore or hereafter discontinued because of a medical finding 
that the annuitant has recovered from disability and such annuitant 
is not reemployed in any position included in the provisions of this 
Act, annuity at the same rate shall be restored effective from the date 
of medical examination showing a recurrence of such disability. 
Neither the second nor third sentence of this subsection shall be appli-
cable in the case of any person receiving or eligible to receive annuity 
under the first sentence hereof and who has reached the age of 62 
years.". 
(b) No annuitv payment shall be made, as a result of the amend-
ment made by subsection (a) of this section, for any period prior to 
January 1 of the year following the year in which this Act is enacted. 
SEC, 5. Section 13(b) of the Civil Service Retirement Act, as 
amended (5 IT,S,C. 2263 (b)), is amended by adding at the end thereof 
7o stat. 757; 74 
the following new sentence: "A similar right to redetermination after ^
*
^
*
* ^'°' 
772 
PUBUC LAW 87-351-OCT. 4, 1961 
[75 ST A T . 
Former congres-
sional employees. 
70 Stat. 752; 74 
Stat. 358. 
70 Stat. 743. 
5 u s e 225 I note. 
deposit shall be applicable to an annuitant (1) whose annuity is based 
on an involuntary separation from the service, and (2) who is sepa-
rated, on or after the date of enactment of this sentence, after a period 
of reemployment on a full-time basis which began before October 1, 
1956.". 
SEC. 6. (a) The first sentence of section 9(b) of the Civil Service 
Ketirement Act, as amended (5 U.S.C. 2259(b)), is amended by in-
serting ", or former congressional employee," immediately following 
the words "congressional employee" where first appearing in such 
sentence. 
(b) The second sentence of such section 9(b) is amended— 
(1) by inserting ", or former congressional employee," im-
mediately following the words "congressional employee" where 
first appearing in such sentence; 
(2) by inserting the word "and" immediately following "serv-
ice," at the end of clause (1) thereof; and 
(3) by striking out ", and (3) has served as a congressional 
employee during the last eleven months of his civilian service". 
SEC. 7. Notwithstanding any other provision of law, annuity bene-
fits under the Civil Service Ketirement Act, as amended, resulting 
from the operation of this Act shall be paid from the civil service 
retirement and disability fund. 
Approved October 4, 1961. 
October 4, 1961 
[S. 302] 
Public Law 87-351 
AN ACT 
To amend the Act of June 22, 1948, as amended, relating to certain areas within 
the Superior National Forest, in the State of Minnesota, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives 
of the 
fo^lst'^ Minn"°"^^ C
^
m
Y
f
i
C
? States of America in Congress assembled, That the Act of June 
ores. 
nn. 
22,1948, as amended (16 U.S.C. 577c-577h) is amended by deleting the 
proviso from section 1 (16 U.S.C. 577c) and by changing the figure 
62 Stat. 568; 70 m section 6 (16 U.S.C 577h) thereof to read $4,500,000. Funds appro-
priated to carry out the purposes of the Act shall remain available until 
expended. 
Approved October 4, 1961. 
Stat. 328. 
October 4, 1961 
[S. 210 2] 
Public Law 87-352 
AN ACT 
To redesignate the .Jefferson Division of the EJastern District of Texas as the 
Marshall Division. 
District courts. 
M a r s h a 11 Divi-
sion, Tex. 
62 Stat. 892. 
Be if enacted by the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 124 
(c) (5) of title 28, United States Code, is amended to read as follows: 
"(5) The Mai-shall Division comprises the counties of Camp, 
Cass, Harrison, Hopkins, Marion, Morris, and Upshur. 
"Court for the Marshall Division shall beheld at Marshall." 
Approved October 4, 1961.