View all text of Subchapter IV [§ 3961 - § 3976]
§ 3968. Local compensation plans
(a) Establishment; rates of pay; leaves of absence; supplemental payments; transfer from Civil Service Retirement and Disability Fund
(1) The Secretary shall establish compensation (including position classification) plans for foreign national employees of the Service and United States citizens employed under section 3951(c)(1) of this title
(2) The Secretary may make supplemental payments to any civil service annuitant who is a former foreign national employee of the Service (or who is receiving an annuity as a survivor of a former foreign national employee of the Service) in order to offset exchange rate losses, if the annuity being paid such annuitant is based on—
(A) a salary that was fixed in a foreign currency that has appreciated in value in terms of the United States dollar; and
(B) service in a country in which (as determined by the Secretary) the average retirement benefits being received by individuals who retired from competitive local organizations are superior to the local currency value of civil service annuities plus any other retirement benefits payable to foreign national employees who retired during similar time periods and after comparable careers with the Government.
(3)
(A) Whenever a foreign national employee so elects during a one-year period established by the Secretary of State with respect to each post abroad, the Secretary of the Treasury (at the direction of the Secretary of State) shall transfer such employee’s interest in the Civil Service Retirement and Disability Fund to a trust or other local retirement plan certified by the United States Government under a local compensation plan established for foreign national employees pursuant to this section (excluding local social security plans).
(B) For purposes of subparagraph (A), the phrase “employee’s interest in the Civil Service Retirement and Disability Fund” means the total contributions of the employee and the employing agency with respect to such employee, pursuant to sections 8331(8) and 8334(a)(1) of title 5, respectively, plus interest at the rate provided in section 8334(e)(3) of such title.
(C) Any such transfer shall void any annuity rights or entitlement to lump-sum credit under subchapter III of chapter 83 of such title.
(b) Employment programs
For the purpose of performing functions abroad, any agency or other Government establishment (including any establishment in the legislative or judicial branch) may administer employment programs for its employees who are foreign nationals, are United States citizens employed in the Service abroad who were hired while residing abroad, or are family members of Government employees assigned abroad, in accordance with the applicable provisions of this chapter.
(c) Regulations
The Secretary of State may prescribe regulations governing the establishment and administration of local compensation plans under this section by all agencies and other Government establishments.
(Pub. L. 96–465, title I, § 408, Oct. 17, 1980, 94 Stat. 2090; Pub. L. 98–164, title I, § 127(a), Nov. 22, 1983, 97 Stat. 1026; Pub. L. 101–246, title I, § 141(a), Feb. 16, 1990, 104 Stat. 35; Pub. L. 102–138, title I, §§ 148, 152, Oct. 28, 1991, 105 Stat. 670, 672; Pub. L. 103–236, title I, § 180(a)(4), Apr. 30, 1994, 108 Stat. 415; Pub. L. 106–113, div. B, § 1000(a)(7) [div. A, title III, § 322], Nov. 29, 1999, 113 Stat. 1536, 1501A–436; Pub. L. 107–228, div. A, title III, § 313, Sept. 30, 2002, 116 Stat. 1378.)