Federal Annuity and Investment Reform Act of 1983

Federal Annuity and Investment Reform Act of 1983 - Title I: Federal Thrift Plan - Permits a Government employee to elect to contribute in any year up to ten percent of his or her basic annual pay to a thrift retirement account. Requires the employing agency of an employee who is covered as of January 1, 1984, under the Old Age, Survivors and Disability Insurance program and who elects to make contributions to such an account to contribute to such employee's account. Specifies the amount of the employing agency's contribution. Restricts the employing agency's contributions to those years of service completed by such employee after such employee's first year of service beginning after December 31, 1983.

Requires that a thrift retirement account or any account maintained for an employee under this Act be an account in a qualified investment program designated by the employee. Permits an employee to elect to change such designation at least once a year or to request the transfer of funds from an existing account to another one. Requires the transfer, at the direction of an employee or beneficiary under the Federal Thrift Plan, of such employee's or beneficiary's assets attributable to benefits accrued under another retirement plan to a thrift retirement account established under this title.

Requires the Federal Thrift Plan Board, established under this Act, to make available to individuals eligible to participate in the Federal Thrift Plan information with respect to the qualified investment programs available under this Act.

Provides that an investment program shall be considered a qualified investment program for purposes of the Federal Thrift Plan if: (1) such program is established and maintained by an investment or financial institution; (2) such program is operated exclusively to provide benefits to Government employees and their beneficiaries; (3) such program complies with Board regulations and the provisions of ERISA (the Employee Retirement Income Security Act of 1974); (4) information on the status of an employee's account is provided at least annually to the employee as well as a summary plan description; (5) amounts in a thrift retirement account are distributable, upon application, to an employee who is eligible for benefits under another Government pension plan or workers compensation plan, who has been separated from the service for at least 31 consecutive days, or who has reached age 59 and one half, or to surviving beneficiaries. Permits the making of loans under a qualified investment program.

Authorizes the Board to exercise enforcement authority with respect to any investment program.

Authorizes appropriations to Federal agencies to carry out this title.

Title II: Federal Employee Retirement and Disability System - Part A: Coverage - Provides that a Government employee who is covered as of January 1, 1984, under the Old Age, Survivors and Disability Insurance program (under title II of the Social Security Act) shall not be considered "employees" for purposes of this Act.

Provides that Postal Service employees who have been continuously employed by the Postal Service since December 31, 1983, shall be covered by Federal law relating to civil service retirement. Authorizes the Office of Personnel Management (OPM) to transfer, upon the Postal Service's request, accrued or future benefits under the Civil Service Retirement and Disability System of such employees to a pension plan established by the Postal Service pursuant to a collective-bargaining agreement. Terminates coverage of such employees under the civil service retirement system to the extent of the benefits so transferred.

Excludes from the term "employee" for purposes of civil service retirement District of Columbia employees hired after January 1, 1984.

Part B: Contributions to the Civil Service Retirement and Disability Fund and Maintenance of Financial Integrity of Such Fund - Specifies the amount which an employing agency may deduct and withhold for contributions to the Civil Service Retirement and Disability Fund from the basic pay of Government employees who are hired on or after January 1, 1984, and who are covered as of January 1, 1984, under the Old Age, Survivors and Disability Insurance program.

Requires that contributions be made to the Fund for all employees from the appropriation or fund used to pay their salaries. Requires OPM to prescribe regulations which specify the amount of such contributions for employees employed before January 1, 1984, and for employees hired on or after January 1, 1984.

Requires OPM to notify the Secretary of the Treasury each fiscal year in which such regulations are in effect of the amount of the installment for each such year needed to amortize both the unfunded liability of the Fund and the net increase in the unfunded liability of the Fund. Requires the Secretary to credit to the Fund as a Government contribution the amount necessary to carry out such amortization.

Part C: Investment of Contributions and Deduction - Establishes a board of trustees to be known as the Fund Investment Board which shall determine the interest rate at which Fund investments are made.

Specifies the minimum interest rate on obligations issued for purchase by the Fund.

Establishes an Advisory Panel on Fund Investments which shall advise and assist the Fund Investment Board.

Part D: Primary Program Benefits - Provides for an increase in the annuity of an individual separating from service after December 31, 1983, with rights to a deferred annuity and without transferring his or her lump-sum credit.

Requires a reduction in so much of the annuity of an individual as is attributable to service on or after January 1, 1984, for each full month that the individual is under 65 years of age as of the date on which the annuity commences.

Sets forth the formula for computing the annuity of an individual hired on or after January 1, 1984. Eliminates the minimum annuity amount for such individuals.

Permits the transfer of the lump-sum credit of an individual to a thrift retirement account.

Provides that interest shall be included in the lump-sum credit of individuals who, on or after January 1, 1984, separate or transfer to a position not covered under the civil service retirement provisions.

Specifies the amount by which annuity rights of an individual who has five or more years of Government service and who elects to have his or her lump-sum credit transferred to a thrift retirement account will be reduced.

Provides that the cost of living adjustments for annuities under the civil service retirement system shall be the same as the cost of living adjustments for benefits under title II of the Social Security Act.

Gives Government employees hired on or after January 1, 1984, the option of making an election at the time of retirement such that the adjusted amount of the annuity payable to them before the age at which they are eligible for benefits under title II of the Social Security Act is equal to: (1) the estimated benefits they would receive once they become eligible for title II benefits; plus (2) an adjusted amount of annuity which is actuarially determined and payable on and after the age of such eligibility.

Part E: Survivor Benefits - Permits an individual separating from Government service with rights to a deferred annuity to elect at the time of separation a reduced annuity and a survivor annuity for his or her spouse. Entitles the surviving spouse to an annuity, beginning at an age not less than 62, in an amount equal to 50 percent of the individual's reduced annuity.

Requires that the annuity of a surviving spouse or of a surviving child of a Government employee hired on or after January 1, 1984, be reduced by the amount of any survivor benefit received under title II of the Social Security Act by such surviving spouse or child for the same period.

Part F: Disability Annuities - Entitles Government employees hired on or after January 1, 1984, to disability retirement after five years of civilian service if they have become disabled.

Requires that disabled employees be appointed to any Government positions, within a reasonable commuting distance for them, in which they are able to render useful service if there are no positions available for them at their present agencies and at their grade level which they can perform.

Revises the method for computing disability annuities for Government employees hired before January 1, 1984. Sets forth the method for computing disability annuities for Government employees hired on or after January 1, 1984.

Disallows claims for civil service disability benefits unless an applicant has applied also for disability benefits under title II of the Social Security Act or is exempt from such requirement.

Provides that an individual's civil service disability annuity shall be reduced by the amount of any disability insurance benefit received under title II of the Social Security Act by such individual for the same period.

Provides that an individual's civil service disability annuity shall be reduced to the extent that such annuity plus income earned by such individual for personal services performed during any period exceeds such individual's final pay at the time he or she sustained the disability for which the annuity is paid.

Requires the Director of OPM to establish a pilot program to provide vocational rehabilitation and job placement services to Government employees who become disabled. Requires the Director to report to Congress on such program within five years after the enactment of this Act.

Requires the Director to contract with insurance carriers under which any Government employee may purchase illness and accident insurance to provide long-term disability benefits in the event such employee cannot qualify for a civil service disability annuity.

Title III: Amendments to FECA, ERISA, the Social Security Act, and the Internal Revenue Code of 1954 - Revises the time periods for cost of living adjustments with respect to disability and survivor benefits of Government employees so as to conform with cost of living adjustments under title II of the Social Security Act.

Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to provide that governmental plans excluded from coverage under ERISA shall not include a plan established by the U.S. Postal Service for employees excluded from coverage under the Civil Service Retirement and Disability System.

Amends title II of the Social Security Act and the Internal Revenue Code to provide coverage under title II of Government employees who elect to be treated as if they were hired on or after January 1, 1984 (and are thus not covered under the Civil Service Retirement and Disability System).

Provides that the title II benefits of an employee with at least ten years of Government service shall not be reduced.

Title IV: Miscellaneous Provisions - Provides for a reduction in the cost of living adjustments to the retirement or disability benefits of a Government employee in any case where the projected total of all primary benefits payable to such individual during a calendar year exceeds a specified amount.

Makes the Director of OPM responsible for administering the retirement programs applicable to: (1) the U.S. Secret Service Uniformed Division; (2) the U.S. Park Police; (3) the U.S. Secret Service; and (4) other uniformed police services of the Government.