Military Technicians: Proposals to Improve Their Retirement Options

Military Technicians: Proposals to Improve Their Retirement Options

Order Code RL30903
CRS Report for Congress
Received through the CRS Web
Military Technicians: Proposals to Improve Their
Retirement Options
March 19, 2001
name redacted
Analyst in National Defense
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress

Military Technicians: Proposals To Improve Their
Retirement Options
Summary
Military technicians are federal civilian employees who provide support primarily
to wartime deployable units of the Selected Reserve. Unlike regular civilian
employees, however, military technicians are generally required to maintain
membership in the Selected Reserve as a condition of their employment. As members
of the federal civil service, technicians can earn an entitlement to an annuity under
either the Civil Service Retirement System (CSRS) or under the Federal Employee
Retirement System (FERS) in the same manner as most other civil servants.
The civil service retirement options for military technicians are nearly identical
to those available to most other civil servants. However, there are certain categories
of civil servants – federal law enforcement officers, firefighters, air traffic controllers
and nuclear materials couriers – who have been granted more generous retirement
options in recognition of the exceptionally rigorous demands of their professions.
Compared to most other federal employees, these “special category” federal
employees are allowed to retire voluntarily with a lower combination of age and years
of service, and their pensions are computed using a more generous formula. “Special
category” employees are also subject to mandatory retirement and usually contribute
a higher percentage of their pay to CSRS or FERS than do other federal employees.
Representatives of various military technician associations argue that the military
technicians should have the same retirement options as those enjoyed by the “special
category” federal employees. The work conditions of military technicians, they
argue, are exceptionally demanding and similar in rigor to those of law enforcement
officers, firefighters, air traffic controllers, and nuclear materials couriers. Opponents
of this proposal argue that the civilian duties performed by military technicians are
not as arduous as those performed by “special category” employees and are
commensurate with those performed by federal employees generally. While
conceding that most military technicians must meet strict physical fitness requirements
in order to retain their reserve membership and are occasionally deployed in the event
of war or national emergency, opponents argue that technicians are compensated for
these military duties through the military retirement system. Therefore, opponents
argue, military technicians do not deserve the more generous retirement options
enjoyed by “special category” federal civilian employees.
In the 106th Congress, two bills were introduced to improve the civil service
retirement options of military technicians. So far in the 107th Congress, one such bill
has been introduced. This report provides background information on the military
technician program and the retirement options for various categories of federal
employees, including military technicians. It also compares the retirement benefits
available to military technicians with those available to other federal employees, and
presents arguments for and against modifying the retirement benefits for military
technicians. Finally, it outlines and analyzes several bills introduced during the 106th
and 107th Congresses which seek to provide military technicians with more generous
retirement options.

Contents
What is a Military Technician? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Retirement Systems for Military Technician . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Civil Service Retirement Options for Military Technicians . . . . . . . . . . . . . . . . . 3
Comparison of Retirement Options for Different Types of Federal Employees . . 4
Immediate Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Voluntary Retirement Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Involuntary Retirement Requirements: Discontinued Service . . . . . . . 8
Involuntary Retirement Requirements: Disability . . . . . . . . . . . . . . . 11
Deferred Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Bills Introduced in the 106th and 107th Congress to Improve Retirement
Options for Military Technicians . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Analysis of H.R. 1079 (106th Congress) . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Analysis of S. 1883 (106th Congress) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Comment on Section 651 of S. 2549/H.R. 4205 (106th Congress) . . . . . . 15
Comment on S. 155 (107th Congress) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
List of Tables
Table 1: Voluntary Retirement Under CSRS . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Table 2: Voluntary Retirement Under FERS . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 3: Discontinued Service Retirement Under CSRS . . . . . . . . . . . . . . . . . 10
Table 4: Discontinued Service Retirement Under FERS . . . . . . . . . . . . . . . . . 11
Table 5: Deferred Annuity Under CSRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Table 6: Deferred Annuity Under FERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Military Technicians: Proposals To Improve
Their Retirement Options
This report is divided into five parts. The first part provides background
information on the military technician program. This is followed by a brief description
of the three retirement systems which military technicians are potentially eligible to
participate in. The next section discusses the civil service retirement options currently
available to military technicians and presents the arguments for and against modifying
those options. The fourth section provides a comparison of the retirement benefits
available to military technicians with those available to other federal employees.
Finally, the last section analyses several bills that have been introduced in the 106th
and 107th Congresses to provide more generous civil service retirement options to
military technicians.
What is a Military Technician?
The reserve component1 (RC) of the United States armed forces employs a small
core group of full time employees to administer RC units, train RC personnel, and
maintain RC equipment. These employees are known as Full-Time Support (FTS)
personnel. There are four distinct types of FTS personnel: civilian employees, active
duty military personnel, Active Guard and Reserve (AGR) personnel, and military
technicians.2
Military technicians are federal civilian employees, hired under statutes contained
in titles 5 and 32, U.S. Code, who provide support primarily to wartime deployable
units of the Selected Reserve.3 Unlike regular civilian employees, however, military
technicians are usually required to maintain membership in the Selected Reserve as
1The reserve component of the United States military include the Army Reserve, Naval
Reserve, Air Force Reserve, Marine Corps Reserve, Coast Guard Reserve, Army National
Guard, and the Air National Guard.
2Military technicians have also been referred to as “reserve technicians,” “civilian
technicians,” “dual status technicians,” “technicians” and “caretakers and clerks” in the past.
Military technicians serving in the Army or Air National Guard have also been referred to as
“Guard technicians.” The term used in the most recent federal legislation has been “military
technicians” and is the terminology generally used throughout this paper. The term
“technicians,” however, is sometimes used as an abbreviation. It should be considered
synonymous with the term “military technicians” unless stated otherwise.
3The Selected Reserve, a sub-element of the Ready Reserve, contains those units and
individuals most essential to wartime missions. Members of the Selected Reserve generally
perform, at a minimum, one weekend of training each month, and two weeks of training each
year, for which they receive pay and benefits.

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a condition of their employment. They may also be required to fulfill their reserve
obligation (i.e., drilling one weekend a month and attending two weeks of annual
training) in the same unit they work for in their civilian capacity.4
Military technicians who hold membership in the Selected Reserve are referred
to as “dual status technicians” because of their status as both civilian employees and
reservists. However, not all military technicians belong to the Selected Reserve,
either because they were never required to do so when hired, or because they lost
their reserve membership at some point in their technician career.5 These technicians
are referred to as “non-dual-status technicians.”6
Retirement Systems for Military Technician
As members of the federal civil service, technicians can earn an entitlement to an
annuity under either the Civil Service Retirement System (CSRS) or under the Federal
Employee Retirement System (FERS) in the same manner as most other civil
servants.7 Additionally, as members of the Selected Reserve, technicians can earn
entitlement to military retired pay in the same manner as other reservists.8 Thus,
technicians are potentially eligible to receive retirement pay from two different federal
retirement systems – civilian and military – simultaneously. However, it is important
to point out here that the issue of early retirement for military technicians relates only
4A “unit membership requirement” for certain military technicians was enacted November 18,
1997, as part of P. L. 105-85, and is codified in Title 10, U.S. Code, section 10216 (d).
Similar unit membership requirements have existed for many years within the administrative
agreements which govern the military technician programs in the Army Reserve and the Air
Force Reserve. In the case of the Army Reserve, the annual Department of Defense
Appropriations Acts from FY 1984 through FY 1996 also contained language barring funds
to certain technicians who did not hold reserve membership in the same unit which they
worked for in their civilian capacity.
5See footnote 28 for a more detailed discussion of why some military technicians are not
required to maintain their membership in the Selected Reserve.
6They are also sometimes referred to as “status quo” technicians.
7 CSRS applies to those workers who entered federal service before 1984. FERS applies to
those workers who entered federal service in 1984 or later; those hired before 1984 who opted
to switch to FERS from CSRS during a designated “open season;”and workers who were
eligible for CSRS when first hired, but who had a break in federal employment and switched
to FERS upon reemployment. There are a number of major differences between CSRS and
FERS, including (1) the requirements for retirement with an immediate annuity (or pension);
(2) the requirements for retirement with a deferred annuity; (3) required payments into the
retirement system while working; and (4) the formula by which the annuity is calculated.
Some, but not all, of these differences will be discussed below. For more detailed information
on these differences, see the CRS Report 98-810, “Federal Retirement Programs: Benefit
Structure and Financing Concepts” September 21, 1998, by (name redacted).
8 To qualify for military retired pay, reservists normally must have 20 years of qualifying
military service, the last eight of which must have been in the reserves, and be at least 60
years of age. Since the end of the Cold War, however, these requirements have been
temporarily lowered to facilitate reserve force reductions.

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to their retirement options under CSRS and FERS, not to their retirement options
under the military retirement system. Therefore, this report will focus primarily on
describing current retirement options for military technicians under CSRS and FERS
and analyzing how various legislative proposals would modify those options.
Civil Service Retirement Options
for Military Technicians
The civil service retirement options for military technicians are nearly identical
to those available to most other civil servants.9 However, there are certain categories
of civil servants – federal law enforcement officers, firefighters, air traffic controllers
and nuclear materials couriers – who have been granted more generous retirement
options in recognition of the exceptionally rigorous demands of their professions.
Compared to most other federal employees, these “special category” federal
employees are allowed to retire voluntarily with a lower combination of age and years
of service and their pensions are computed using a more generous formula. “Special
category” employees are also subject to mandatory retirement10 and usually contribute
a higher percentage of their pay to CSRS or FERS than do other federal employees.
(A comparative summary of the various retirement options for military technicians,
federal employees in general, and “special category” federal employees is contained
later in this report).
Representatives of various military technician associations argue that military
technicians deserve to be placed in a category similar to that enjoyed by “special
category” federal employees. As members of the Selected Reserve, dual-status
military technicians are required to meet the same physical fitness requirements that
other members of the military, active and reserve, are required to meet. They may
also be called to active duty and deployed in the event of war or national emergency
and, in the case of National Guard technicians, may be mobilized to respond to
domestic disasters and civil disturbances. These work conditions, technicians argue,
are exceptionally demanding and similar in rigor to those of law enforcement officers,
firefighters, air traffic controllers, and nuclear materials couriers. Thus, in their
opinion, military technicians should be allowed to retire with the same combinations
of age and years of service as these “special category” federal employees.
Additionally, some argue, their pensions should be calculated using the higher accrual
rate that “special category” federal employees enjoy. (A more detailed examination
of various proposals to improve the retirement options for military technicians is
contained later in this report).
9There are two exceptions; however, they are both advantageous to military technicians. See
the sections of this report entitled “Involuntary Retirement Requirements: Discontinued
Service” and “Involuntary Retirement Requirements: Disability.”
10The ages at which “special category” federal employees are required to retire are as follows:
57 for law enforcement officers, 56 for air traffic controllers, 55 for firefighters. Dual status
military technicians do not have a mandatory retirement age. Non-dual-status technicians do
not have a mandatory retirement age per se, but are required to retire once they become
eligible for an unreduced annuity provided they are at least 60 years of age.

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Opponents of this proposal argue that military technician duty is not as arduous
as that performed by federal law enforcement officers, fire fighters, nuclear materials
couriers, and air traffic controllers. The civilian duties of most military technicians,
they contend, are about as arduous as those performed by federal civilian employees
generally. Typical civilian duties of military technicians consist of administration,
maintenance, training, and management, and range from sedentary to moderately
active. While conceding that due to their reserve membership, dual-status technicians
must meet strict physical fitness requirements and are occasionally deployed in the
event of war or national emergency, opponents argue that they are compensated for
this through the military retirement system.11 Additionally, as the more arduous
aspects of their jobs result from their reserve membership, they contend that the
situation of military technicians is little different from that of other federal civilian
employees who are members of the reserves. Finally, opponents point out that there
are substantial costs associated with early retirement proposals, including the cost of
replacing and training technicians who retire early.
Comparison of Retirement Options for Different
Types of Federal Employees
Federal employees are covered by one of two retirement plans: The Civil Service
Retirement System (CSRS) or the Federal Employees Retirement System (FERS).
The former covers most federal employees who were initially hired before January 1,
1984. The latter covers all federal employees who were initially hired on or after that
date, along with some federal employees who switched from CSRS to FERS. A key
element of both of these systems is the provision of an “annuity,” also called a
pension, to federal employees who leave federal service after meeting certain
retirement criteria. There are several different types of annuities.
An immediate annuity is one which the employee is eligible to receive
immediately upon separation from federal service. In order to receive an immediate
annuity, a federal employee must meet certain combinations of age and years of
federal service. Usually, federal employees need to meet the age and years of service
combinations classified as “voluntary retirement requirements.” These requirements
can vary depending on the type of work the federal employee does. (See the section
on voluntary retirement requirements below, especially tables 1 and 2). Under certain
circumstances, however, a federal employee may be eligible for an immediate annuity
with a lower combination of age and years of federal service than is required for
voluntary retirement. These are called “involuntary retirement requirements.” (See
the sections on discontinued service retirement and disability retirement below,
including tables 3 and 4). Finally, if a federal employee does not meet the criteria for
an immediate annuity, he or she may still be eligible for a deferred annuity. (See the
section on deferred annuities below, especially tables 5 and 6). A description of the
various retirement options and how they compare follows.
11See footnote 8 for more information on military retirement for reservists.

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Immediate Annuity
Voluntary Retirement Requirements.
Under CSRS, federal employees can voluntarily choose to retire and receive an
immediate annuity after becoming 55 years of age with 30 years of federal service,
after becoming 60 years of age with 20 years of service, or after becoming 62 years
of age with five years of service. Under FERS, federal employees can voluntarily
retire and receive an immediate annuity after reaching the minimum retirement age
(between 55 and 57, depending on the employee’s year of birth) with 30 years of
service, after reaching 60 years of age with 20 years of service, or after reaching 62
years of age with five years of service. Additionally, FERS eligible employees may
voluntarily retire and receive an immediate annuity if they have at least 10 years of
service and have reached the minimum retirement age (55/57). However, this annuity
is reduced by five percent for each year below the age of 62 the employee is at the
time of separation.12
Certain categories of federal employees may voluntarily retire and receive an
immediate annuity with a lower combination of age and years of service than normally
required, in recognition of the exceptionally rigorous demands of their professions.
Under CSRS, a federal employee who chooses to retire after reaching 50 years of age
and completing 20 years of service as a law enforcement officer, firefighter, nuclear
materials courier, or air traffic controller is eligible to receive an immediate annuity.13
Air traffic controllers are also eligible to receive an immediate annuity with 25 years
of service, regardless of age.14 Under FERS, a federal employee who chooses to
retire after reaching 50 years of age and completing 20 years of service as a law
enforcement officer, member of the Capitol Police, firefighter, nuclear materials
courier, or air traffic controller is eligible to receive an immediate annuity.
Additionally, federal employees with 25 years of service in these professions,
regardless of age, may voluntarily retire and receive an immediate annuity.15
12Also, under both CSRS and FERS, agencies may offer voluntary retirement at age 50 with
20 years of service and at any age with 25 years of service if the agency is undergoing a
reorganization or downsizing.
135 USC 8336(c) and (e)
145 USC 8336 (e)
155 USC 8412 (d) and (e)

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Table 1: Voluntary Retirement Under CSRS
“Special Category” Federal Employees
Federal Employees -
Generally
(Includes Military
Law Enforcement, Fire
Technicians)
Fighter, Nuclear
Air Traffic Controller
Material Courier
Age & Years of
55 & 30
Any Age & 25
Service
OR
OR
60 & 20
50 & 20
50 & 20
OR
OR
OR
62 & 5
62 & 5
62 & 5
7.0% of salary
7.5% of salary
7.0% of salary
Required Payments
(No Social Security
(No Social Security
(No Social Security
Towards Retirement16
tax)
tax)
Tax)
Accrual Rate for17
1.5% for first five
2.5% for first 20
1.5% for first five
Annuity
years
years
years
(RATE)
1.75% for second five
2.0% for subsequent
1.75% for second five
years
years
years
2.0% for all
2.0% for all
subsequent years
subsequent years
But annuity may not
be less than 50
percent
Annuity Based On
High-3 Salary
High-3 Salary
High-3 Salary
(BASE)
Annuity Formula
RATE x BASE
RATE x BASE
RATE x BASE
16As of January 1, 2001. Effective until December 31, 2002. 5 USC 8334 (c).
175 USC 8339 (a), 5 USC 8339 (d)(1), and 5 USC 8339(e).

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Table 2: Voluntary Retirement Under FERS
“Special Category” Federal Employees
Federal Employees-
Law Enforcement, Fire
Generally (Includes
Fighter, Nuclear
Military Technicians)
Air Traffic Controller
Materials Courier,
Capitol Police
MRA18 & 30
Any Age & 25
Any Age & 25
Age & Years of
Service
OR
OR
OR
60 & 20
50 & 20
50 & 20
OR
OR
OR
62 & 5
62 & 5
62 & 5
OR
OR
OR
MRA19 & 10
MRA & 10
MRA & 10
(reduced benefits if
(reduced benefits if
(reduced benefits if
under age 62)
under age 62)
under age 62)
0.8% of salary
1.3% of salary
1.3% of salary
Required Payments
(plus Social Security
(plus Social Security
(plus Social Security
Towards Retirement
tax)
tax)
tax)
Accrual Rate for
1.0 % per year if
1.7% per year for
1.7% per year for
Annuity
employee retires
first 20 years
first 20 years
(RATE)
before age 62
1.0% for subsequent
1.0% for subsequent
years20
years21
1.1% per year if
employee retires at
age 62 or later with at
least 20 years of
service
Annuity Based On
High-3 Salary
High-3 Salary
High-3 Salary
(BASE)
Annuity Formula
RATE x BASE
RATE x BASE
RATE x BASE
18MRA stands for minimum retirement age and varies from 55 to 57 depending on the
employees year of birth.
19See footnote 18.
20Does not apply if employee retires with the “62 & 5" or “MRA & 10" options. In those
cases, the annuity accrual is the same as it is for federal employees generally. 5 USC 8415
(d).
21Does not apply if employee retires with the “62 & 5" or “MRA & 10" options. In those
cases, the annuity accrual is the same as it is for federal employees generally. 5 USC 8415
(d).

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Involuntary Retirement Requirements: Discontinued Service.
In certain circumstances, federal employees become eligible for an immediate
annuity with a lower combination of age and years of service than required for
voluntary retirement. One set of circumstances is referred to as “discontinued
service.” This refers to an employee who is involuntarily separated from federal
service, except by removal for cause on charges of misconduct or delinquency.22
Typical causes of involuntary separation include reductions in force (RIF),
abolishment of positions, and unacceptable performance not related to misconduct.23
With respect to military technicians, this would include separations from their civil
service position due to the involuntary loss of their military membership or the loss
of the rank required to hold their military position.24 Involuntary separation could
also occur if the technician were promoted to a military rank in excess of that
specified for the technician position.
Under CSRS, a federal employee who meets the conditions of “discontinued
service” is entitled to an immediate annuity if he or she has 20 years of service and is
at least 50 years of age, or if he or she has 25 years of service regardless of age.
However, if the employee is under the age of 55 at the time of separation, the annuity
rate is reduced by two percent for each year the employee is below the age of 55.
This provision applies to nearly all federal employees,25 including military technicians
and “special category” federal employees.26
Under FERS, a federal employee may qualify for a discontinued service
retirement with the same combinations of age and years of service as under CSRS, but
there is no reduction in annuity if he or she is under the age of 55 at the time of
225 USC 8336 (d)(1) and 5 USC 8414(b).
23CSRS and FERS Handbook, Ch 44 Section 44A, p. 3
24Involuntary loss of reserve membership can include the following: loss of military status due
to non-selection by a retention board, failure to get promoted within the prescribed period of
time, failure to meet certain medical requirements, and failure to meet physical fitness
standards due to a medical condition. A failure to meet physical fitness standards that is not
the result of a medical condition is considered a voluntary action, and does not entitle the
technician to retirement under this section.
25In some circumstances, senior executives of the federal government may be exempted from
the two percent reduction.
26Note, however, that “special category” employees can often retire under the voluntary
retirement provision rather than under the discontinued service retirement provision due to the
lower age and years of service requirements they have for voluntary retirement. In this way,
they can avoid the two percent reduction. However, this is not always the case. For example,
under CSRS, an air traffic controller who was 45 years of age with 25 years of service and
who was involuntarily separated from his job would eligible for a discontinued service
retirement; however, he could choose to retire under the voluntary retirement provisions
instead. A similarly situated federal law enforcement officer, though, would have to accept
retirement under the discontinued service provisions as he or she would not yet be eligible for
voluntary retirement.

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separation. This provision (5 USC 8414(b)) applies to all federal employees,
including military technicians and “special category” federal employees.
However, under FERS, there is an additional provision written specifically for
military technicians (5 USC 8414 (c)) . This provision appears to be redundant with
the general discontinued service provision mentioned in the previous paragraph, but
in one important way the military technician provision is more generous. Under this
special provision, military technicians who are involuntarily separated27 from their
positions “by reason of being separated from the Selected Reserve...or ceasing to hold
the military rank specified” may qualify for an immediate annuity with the following
combinations of age and years of service: 50 years of age and 25 years of service as
a military technician if hired on or before February 10, 1996; 50 years of age and 20
years of service as a dual status technician or at any age with 25 years of service as
a dual status technician if hired after February 10, 1996.28 ( Note that for those hired
on or before February 10,1996, the age and years of service combinations are higher
275 USC 8414(c) does not actually use the word “involuntary” to describe the type of
separation. It says “An employee who was hired as a military reserve technician...and who
is separated from technician service...by reason of being separated from the Selected Reserve
of the employee’s reserve component or ceasing to hold the military grade specified by the
Secretary concerned for the position held by the employee is entitled to an annuity.” However,
in describing the intent of this legislative provision, the conference report which accompanied
it stated “Finally, the conference agreement provides that military reserve technicians
separated from the civil service because of losing military status through no fault of their own
[emphasis added] may retire at age 50 with 25 years of service.” House Conference Report
No. 99-606, May 16, 1986, 133. Thus, the Office of Personnel Management has interpreted
5 USC 8414(c) to apply only to military technicians whose loss of military membership is
involuntary. See footnote 24 for a discussion of what constitutes involuntary loss of military
membership. This provision was amended in 1999 by P.L. 106-65, the National Defense
Authorization Act for Fiscal Year 2000. This act lowered the age and years of service
requirement for retirement under 5 USC 8414(c) for military technicians hired after February
10, 1996. See footnote 28 for a more detailed discussion of that date’s significance.
28The rationale for the date – February 10, 1996 – deserves mention. As mentioned earlier,
military technicians are generally required to maintain membership in the Selected Reserve
as a condition of their federal civilian employment. This is referred to as the “dual status”
requirement. Up until February 10, 1996, the strictness of the “dual status” requirement
varied widely among the various reserve components which employ technicians. In the Air
Force Reserve, for example, technicians who lost their reserve membership almost always lost
their civil service jobs as well. In the Army Reserve, on the other hand, technicians who lost
their reserve membership were often allowed to continue working in their technician positions.
February 10, 1996, was the date of enactment for the National Defense Authorization Act for
Fiscal Year 1996 (P.L. 104-106, 110 Stat. 306). This act contained a provision establishing
a strict dual-status requirement for all newly hired technicians. Under it, technicians who
were hired after February 10, 1996, had to be promptly separated from their technician
positions upon losing reserve membership. Technicians who were hired on or before this date
were not affected by this law in the same way. (For more information on this topic, see the
CRS Report RL30487, “Military Technicians: The Issue of Mandatory Retirement,” March
28, 2000, by (name re dacted)). Thus, the date of February 10, 1996 serves as a demarcation
line between those technicians hired under the strict, congressionally mandated, dual status
requirement, and those hired under the more diverse standards employed by the individual
services.

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than under the general discontinued service provision. The combinations are not
higher for those hired after February 10, 1996, but at least 25 years of their service
must be as a dual status technician if under age 50, or at least 20 years as a dual
status technician if over that age). The benefit of retiring under this provision, rather
than the general discontinued service provision, is that it entitles the military
technician to an “annuity supplement”29 regardless of his or her age. Under the
general discontinued service provision available to all federal employees, an annuity
supplement is payable, but only if the retiree has reached the minimum retirement
age.30
Table 3: Discontinued Service Retirement Under CSRS
All Federal Employees, Including Military Technicians
and “Special Category” Employees31
Age & Years of Service
Any Age & 25
(reduced benefits if under age 55)
OR
50 & 20
(reduced benefits if under age 55)
29An annuity supplement is, as its name indicates, an additional payment to the retiree. The
function of the FERS annuity supplement is to approximate the Social Security benefit earned
during federal employment until the retiree actually becomes eligible for Social Security at age
62; it ceases at that time. The formula for calculating the supplement is complex and varies
from individual to individual, but it can be a significant financial benefit.
30The minimum retirement age varies from 55 to 57 depending on the employees year of birth.
31See footnote 26 for a discussion of how “special category” employees who are eligible for
discontinued service retirement often choose to retire under the voluntary retirement
provisions, thereby avoiding the two percent reduction.

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Table 4: Discontinued Service Retirement Under FERS
All Federal Employees,
Including Military Technicians
Additional Provisions for
and “Special Category”
Military Technicians Only
Employees
Age & Years of Service
IF HIRED AFTER FEB 10,
1996
Any Age & 25
Any Age & 25
(no reduction in benefits if under
(no reduction in benefits if under
age 55; eligible for annuity
age 55; eligible for annuity
s u p p l e m e n t i f m i n i m u m
supplement regardless of age;
retirement age has been reached)
years of service must be as “dual
status” technician)
OR
OR
50 & 20
50 & 20
(no reduction in benefits if under
(no reduction in benefits if under
age 55; eligible for annuity
age 55; eligible for annuity
supplement regardless of age;
s u p p l e m e n t i f m i n i m u m
years of service must be as “dual
retirement age has been reached)
status” technician)
IF HIRED ON OR BEFORE
FEB 10, 1996
50 & 25
(no reduction in benefits if under
age 55; eligible for annuity
supplement regardless of age;
service can be as “dual-status” or
“non-dual-status”)
Involuntary Retirement Requirements: Disability.
Under both CSRS and FERS, federal employees who are unable “to render
useful and efficient service” in their positions “due to a disease or injury” are eligible
for disability retirement if (1) they meet the minimum civilian service requirement and
(2) they cannot be reassigned to a position, of the same grade or level, where they
would be able to perform useful and efficient service.32 With respect to the minimum
service requirement, an employee needs five years of federal civilian service to be
eligible for disability retirement under CSRS. Under FERS, an employee needs 18
months of service.33 All federal employees, including military technicians and “special
32See 5 USC 8337(a) and 5 USC 8451(a).
33FERS was designed to be integrated with the Social Security system. The 18 month service
requirement for disability retirement parallels the service requirement under Social Security
disability rules.

CRS-12
category” employees, are treated the same with respect to these time in service
requirements.
Military technicians, however, do have a special provision in both CSRS and
FERS which provides them with a more generous standard for determining disability.
Specifically, they are eligible for disability retirement if they are separated from
employment as a military technician by reason of a disability that disqualifies the
individual from membership in the Selected Reserve, even if they would not be
considered disabled under the disability standard mentioned in the previous
paragraph.34 Thus, a disability which renders a technician unfit for his or her military
duties, but not for his or her civilian duties, would be able to retire under these
provisions.35 The utility of these provisions for technicians appears to be
considerable, as a sizable percentage of military technician retirements occur under
them.36
Deferred Annuity
Those federal employees who are separated from federal service with more than
5 years of service, but without the required combinations of age and years of service
to be eligible for an immediate annuity, are eligible for a deferred annuity. As the
name implies, the employee does not receive an annuity immediately upon separation
from federal service, but at a later date. Under CSRS, someone who is separated
from federal service with at least five years of service begins receiving an annuity
upon reaching the age of 62. Under FERS, deferred annuities may begin on an
unreduced basis at the minimum retirement age (55/57) with 30 years of service, at
age 60 with 20 years of service, and at age 62 with 5 years of service. Additionally,
under FERS, deferred annuities may begin on a substantially reduced basis at the
minimum retirement age (55/57) if the employee had at least 10 years of service. As
indicated below, all federal employees have the same age and years of service
requirements for a deferred annuity.
345 USC 8337(h) and 5 USC 8456.
35Remember that most military technicians are required to hold membership in the Selected
Reserve as a condition of their employment. These technicians are referred to as “dual-status
technicians.” (See the section entitled “What is a Military Technician” for more information
on this). Thus, in the absence of these special disability provisions, dual-status technicians
who suffered a disability that rendered them unfit for military duty, but not for civilian duty,
would be promptly separated from technician service without any disability retirement
benefits.
36For example, in 1999, a total of 993 military technicians in the National Guard retired. Of
these, 235 (23.6%) retired under the special disability provision for military technicians, while
only 78 (8%) retired under the regular disability provisions applicable to all federal
employees. Source: U.S. Office of Personnel Management, Retirement Policy Division.

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Table 5: Deferred Annuity Under CSRS
All Federal Employees, Including Military Technicians
and “Special Category” Employees
Years of Service
5 or more
Age at Which Annuity Begins
62
Table 6: Deferred Annuity Under FERS
All Federal Employees, Including Military Technicians
FERS
and “Special Category” Employees
Years of Service
5-19
20-29
30 or more
10-29
Age at Which Annuity Begins
62
60
MRA
MRA
(reduced
annuity)
Bills Introduced in the 106th and 107th Congress to
Improve Retirement Options for Military
Technicians
Two bills – H.R. 1079 and S. 1883 – were introduced in the 106th Congress
which, if enacted, would have modified the retirement options available to military
technicians. Both of these bills are analyzed below. The Senate version of the
National Defense Authorization Act for Fiscal Year 2001 (S. 2549/H.R. 4205), a bill
in the 106th Congress, contained a provision nearly identical to S. 1883. It is
mentioned briefly below, but the reader should refer to the section on S. 1883 for
analysis of this provision. One bill – S. 155 – has been introduced in the 107th
Congress. It is virtually identical to S. 1883. It is mentioned briefly below, but refer
to the section on S. 1883 for analysis of its provisions.
Analysis of H.R. 1079 (106th Congress)
This bill, sponsored by Representative Abercrombie, would have modified both
CSRS and FERS to allow military technicians to retire voluntarily after 25 years of
technician service, or after becoming 50 years of age and completing 20 years of
service. Such a change would have been beneficial to technicians in two ways. First,
it would have allowed technicians to retire voluntarily with a lower combination of

CRS-14
age and years of service than is currently required of them. Under this legislation,
FERS-eligible military technicians would have been allowed to retire with the same
combinations of age and years of service as are currently enjoyed by “special
category” employees. Additionally, CSRS-eligible military technicians would have
enjoyed more generous retirement eligibility criteria than most “special category”
employees. Specifically, federal law enforcement officers, firefighters, and nuclear
materials couriers who participate in CSRS can voluntarily retire at age 50 with 20
years of service, but they are not allowed to voluntarily retire at any age with 25 years
of service.37 Second, it would have enhanced the financial benefits for retiring military
technicians, although not to the level enjoyed by “special category” employees.
Specifically, under this legislation, CSRS-eligible military technicians would have been
able to avoid the two percent annuity reduction which sometimes comes with retiring
under the discontinued service retirement (DSR) provisions of CSRS, and FERS-
eligible military technicians would be entitled to the payment of the annuity
supplement described in footnote 29 regardless of age.
In the 106th Congress, H.R. 1079 bill was referred to House Committee on
Government Reform, Subcommittee on Civil Service. The bill was not reported out
of the subcommittee.
Analysis of S. 1883 (106th Congress)
This bill, sponsored by Senator Bingaman, would have modified both CSRS and
FERS to allow military technicians to retire earlier than they are currently allowed to
do. When Senator Bingaman introduced the bill, he specifically stated that it was a
companion bill to the one introduced by Representative Abercrombie (H.R. 1079) and
that “This bill would permit Dual Status Technicians to retire at any age with 25 years
of service or at 50 with 20 years of service. Those benefits are similar to benefits
provided to Federal police and fire employees.”38 Thus, it appears that the intent of
H.R. 1079 and S. 1883 are the same: to allow military technicians to retire voluntarily
with 25 years of service, or at age 50 with 20 years of service, just like H.R. 1079.
However, despite their similar intent, H.R. 1079 and S. 1883 were written
differently. Unlike H.R. 1079, which would have added new provisions to both CSRS
and FERS, S. 1883 would have amended an existing provision of FERS – 5 USC
8414(c) – and then added a new provision to CSRS which applies the newly modified
FERS provision to CSRS as well. As mentioned earlier, 5 USC 8414(c) allows
certain military technicians to qualify for an immediate annuity with the following
combinations of age and years of service: 50 years of age and 25 years of service as
a military technician if hired on or before February 10, 1996; 50 years of age and 20
years of service as a dual status technician or at any age with 25 years of service as
a dual status technician if hired after February 10, 1996. S. 1883 would modify this
37These federal employees would undoubtedly feel that they were being treated unfairly if they
did not enjoy retirement options equal to or superior to those enjoyed by military technicians.
Hence, passage of this type of bill would likely inspire CSRS-eligible law enforcement
officers, firefighters, and nuclear materials couriers to demand improvement of their
retirement options.
38Congressional Record, Senate, November 9, 1999, S14297.

CRS-15
by permitting all those hired on or before February 10, 1996, to qualify for an
immediate annuity at age 50 with 20 years of service or at any age with 25 years of
service. The legislation would not require that the years of service for technicians
hired on or before February 10, 1996, be service as a dual-status technician as is
required for those hired after February 10, 1996.
Additionally, it is important to point out that 5 USC 8414(c) has historically been
interpreted to apply only to those military technicians who have been involuntarily
separated from their civil service positions “by reason of being separated from the
Selected Reserve...or ceasing to hold the military rank specified.” As such, there is
some uncertainty as to whether amending this provision of the law would allow
military technicians to retire under its provisions voluntarily.
S. 1883 was referred to the Committee on Governmental Affairs, Subcommittee
on International Security, Proliferation and Federal Services. It was not reported out
of the subcommittee. (However, Senator Bingaman did offer S. 1883 in amendment
form to S. 2549, the Department of Defense Authorization Act for Fiscal Year 2001.
See below).
Comment on Section 651 of S. 2549/H.R. 4205 (106th Congress)
On the floor of the Senate, Senator Bingaman offered an amendment to S. 2549,
the National Defense Authorization Act for Fiscal Year 2001. The amendment
(#3244) was essentially S. 1883 in amendment form, and it was approved on a voice
vote. See the section on S. 1883 above for analysis. S. 2549 was later amended into
the House version of the Defense Authorization bill, and the bill was thereafter known
as H.R. 4205. A similar provision was not included in the House version of H.R.
4205 and during the House-Senate conference the provision was dropped.
Comment on S. 155 (107th Congress)
S. 155, introduced by Senator Bingaman, is virtually identical to S. 1883, the bill
he introduced in the 106th Congress. See the section on S. 1883 above for analysis.
The bill has been referred to the Committee on Government Affairs.

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