A bill to clarify the application of section 8344 of title 5, United States Code, relating to civil service annuities and pay upon reemployment, and for other purposes.

(Reported to House from the Committee on Post Office and Civil Service with amendment, H. Rept. 94-336)

Provides that an involuntary retiree who is reemployed in a position in which he is not subject to the civil service retirement provisions shall continue to receive his full annuity but his salary will be reduced by an amount equal to his annuity allocable to the period of actual employment. States that if such annuitant serves on a full-time basis, except as President, for at least 1 year, or on a part-time basis for periods equivalent to at least 1 year of full-time service, the annuitant will be entitled to a supplemental annuity based on the period of reemployment. States that if the period of reemployment continues for at least 5 years, or the equivalent of 5 years in the case of part-time employment, the annuitant may elect to deposit in the retirement fund a specified amount computed and have his annuity recomputed on the basis of his total service, including the period of reemployment.

Requires agencies to deposit in the Treasury to the credit of the civil service retirement fund amounts, equal to annuities, that are deducted from the salaries of reemployed annuitants.

Requires that if an annuitant, whose annuity is based on an involuntary separation, is reemployed in a position in which he is subject to the civil service retirement provisions, the payment of his annuity terminates on reemployment.

Provides that the annuitant's annuity will be terminated upon reemployment, the employing agency will withhold retirement deductions from the annuitant's pay, and future annuity rights will be determined under the law in effect at the time of separation from reemployment.

States that if an annuitant (other than a Member receiving an annuity from the fund) is appointed by the President to a position in which he is subject to the civil service retirement provisions, payment of his annuity will terminate upon reemployment.