§ 3681. Retirement under special treaty provi-
sions
(a) Purchase of retirement equity; individuals
entitled to participate
(1) Subject to subsection (b) of this section,
and under such regulations as the President may
prescribe, the Secretary of the Treasury shall
pay to the Social Security System of the Repub-
lic of Panama, out of funds deposited in the
Treasury of the United States to the credit of
the Civil Service Retirement and Disability
Fund under section 8334(a)(2) of title 5, such
sums of money as may be necessary to aid in the
purchase of a retirement equity in such System
for each individual who—
(A) meets the requirements of paragraph (2)
of this subsection;
(B) is separated from employment in the
Panama Canal Company, the Canal Zone Gov-
ernment, or the Commission by reason of the
implementation of any provision of the Pan-
ama Canal Treaty of 1977 and related agree-
ments; and
(C) becomes employed in a position covered
by the Social Security System of the Republic
of Panama through the transfer of a function
or activity to the Republic of Panama from
the United States or through a job placement
assistance program.
(2) This subsection applies with respect to any
individual only if the individual—
(A) has been credited with at least 5 years of
civilian service under section 8332 of title 5, re-
lating to creditable service for purposes of
civil service retirement;
(B) is not eligible for an immediate retire-
ment annuity under chapter 83 of title 5, relat-
ing to civil service retirement, and elects not
to receive a deferred annuity under that chap-
ter based on any portion of that service, and
(C) elects to withdraw from the Civil Service
Retirement and Disability Fund the individ-
ual’s entire lump-sum credit (as defined in
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Authority boundary: historical or unconfirmed source not current law verified.
Stable record: federal_law:legal_authorities:uscode2024_7400150429e5e1492d6b34e2 Source file: Laws/federal/codes/united-states-code-2024/title-22/section-3681-retirement-under-special-treaty-provi--5512d6e60f.md Pages: Not recorded – Not recorded Passage SHA-256: 63e7e3770343df59fc8f3c85a1a30331ca2a8f77a27e8088f71070db02f92347 Retained source evidence SHA-256: 9a406a13fb96ab8e7ab6c442b4bba04f86224b7506c5b32c3c70562e72256aef
Page 1392
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
§ 3681
in section 101(f) of division A of Public Law 104–208; 110
Stat. 3009–383), referred to in subsec. (a), is set out as a
note under section 5597 of Title 5, Government Organi-
zation and Employees.
AMENDMENTS
2017—Subsec. (b). Pub. L. 115–91 substituted ‘‘section
2302(d)’’ for ‘‘section 2302(c)’’.
Pub. L. 115–73 substituted ‘‘section 2302(c)’’ for ‘‘sec-
tion 2302(d)’’.
SUBPART IV—RETIREMENT
§ 3681. Retirement under special treaty provi-
sions
(a) Purchase of retirement equity; individuals
entitled to participate
(1) Subject to subsection (b) of this section,
and under such regulations as the President may
prescribe, the Secretary of the Treasury shall
pay to the Social Security System of the Repub-
lic of Panama, out of funds deposited in the
Treasury of the United States to the credit of
the Civil Service Retirement and Disability
Fund under section 8334(a)(2) of title 5, such
sums of money as may be necessary to aid in the
purchase of a retirement equity in such System
for each individual who—
(A) meets the requirements of paragraph (2)
of this subsection;
(B) is separated from employment in the
Panama Canal Company, the Canal Zone Gov-
ernment, or the Commission by reason of the
implementation of any provision of the Pan-
ama Canal Treaty of 1977 and related agree-
ments; and
(C) becomes employed in a position covered
by the Social Security System of the Republic
of Panama through the transfer of a function
or activity to the Republic of Panama from
the United States or through a job placement
assistance program.
(2) This subsection applies with respect to any
individual only if the individual—
(A) has been credited with at least 5 years of
civilian service under section 8332 of title 5, re-
lating to creditable service for purposes of
civil service retirement;
(B) is not eligible for an immediate retire-
ment annuity under chapter 83 of title 5, relat-
ing to civil service retirement, and elects not
to receive a deferred annuity under that chap-
ter based on any portion of that service, and
(C) elects to withdraw from the Civil Service
Retirement and Disability Fund the individ-
ual’s entire lump-sum credit (as defined in sec-
tion 8331(8) of title 5) and to transfer that
amount to the Social Security System of the
Republic of Panama pursuant to the special
regime referred to in paragraph 3 of Article
VIII of the Agreement in Implementation of
Article III of the Panama Canal Treaty of 1977.
(b) Limitation on amount paid to Social Security
System of Republic of Panama
The amount paid to the Social Security Sys-
tem of the Republic of Panama with respect to
any individual under subsection (a) of this sec-
tion shall not exceed the individual’s entire
lump-sum credit (as so defined).
(c) Purchase of nontransferable deferred annu-
ity; employees entitled to participate
(1) Pursuant to paragraph 2(b) of Annex C to
the Agreement in Implementation of Article IV
of the Panama Canal Treaty of 1977, the Presi-
dent, or the President’s designee, shall purchase
from a source determined by the President to be
appropriate, in accordance with such regula-
tions as the President or the President’s des-
ignee may prescribe, and to such extent or in
such amounts as may be provided in advance in
appropriation Acts, a nontransferable deferred
annuity for the benefit of each employee of an
agency or instrumentality of the Government of
the United States in the Republic of Panama—
(A) who is not a citizen of the United States;
(B) who was employed on October 1, 1979, and
during any period before that date by an agen-
cy or instrumentality of the Government of
the United States at any permanent duty sta-
tion in the Republic of Panama (including,
with respect to employment before that date,
the area then known as the Canal Zone);
(C) who, for any period of service with such
agency or instrumentality before October 1,
1979, at any such permanent duty station was
not covered, by reason of that service, by the
United States Civil Service Retirement sys-
tem or any other Federal retirement system
providing benefits similar to those retirement
benefits provided by the Social Security Sys-
tem of the Republic of Panama; and
(D) who, on October 1, 1979, is under a Fed-
eral retirement system and, on or before that
date, has accrued in one or more agencies or
instrumentalities of the United States a total
of 5 years or more of service which—
(i) is creditable toward any Federal retire-
ment system as in effect on October 1, 1979;
(ii) would have been creditable toward any
such retirement system if the retirement
system were in effect at the time of the serv-
ice accrued by the employee; or
(iii) consists of any combination of service
described in clauses (i) and (ii) of this sub-
paragraph.
(2) The retirement annuity referred to in para-
graph (1) of this subsection with respect to any
employee will cover retroactively, from October
1, 1979, all periods of service, described in sub-
paragraph (D) of that paragraph, by that em-
ployee at any permanent duty station in the Re-
public of Panama (including the area known be-
fore that date as the Canal Zone) in agencies
and instrumentalities of the Government of the
United States during which that employee was
not covered by the United States Civil Service
Retirement System or any other Federal retire-
ment system providing benefits similar to those
retirement benefits provided by the Social Secu-
rity System of the Republic of Panama.
(Pub. L. 96–70, title I, § 1243, Sept. 27, 1979, 93
Stat. 473; Pub. L. 105–85, div. C, title XXXV,
§ 3550(d)(6), Nov. 18, 1997, 111 Stat. 2074.)
Editorial Notes
AMENDMENTS
1997—Subsec. (c)(2). Pub. L. 105–85 substituted ‘‘retro-
actively’’ for ‘‘retroactivity’’.
Page 1393
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
§ 3682
Executive Documents
DELEGATION OF FUNCTIONS
Functions vested in President by subsec. (a)(1) dele-
gated to Director of Office of Personnel Management
and function vested in President by subsec. (c)(1) of this
section delegated to Secretary of Defense, see sections
1–105 and 1–403 of Ex. Ord. No. 12215, May 27, 1980, 45
F.R. 36043, 36045, set out as a note under section 3601 of
this title.
§ 3682. Administration of certain disability bene-
fits
(a) Continuation of cash relief payments to em-
ployees under Act of July 8, 1937
(1) The Commission, or any other United
States Government agency or private entity
acting pursuant to an agreement with the Com-
mission, under the Act entitled ‘‘An Act author-
izing cash relief for certain employees of the
Panama Canal not coming within the provisions
of the Canal Zone Retirement Act’’, approved
July 8, 1937 (50 Stat. 478; 68 Stat. 17), may con-
tinue the payments of cash relief to those indi-
vidual former employees of the Canal Zone Gov-
ernment or Panama Canal Company or their
predecessor agencies not coming within the
scope of the former Canal Zone Retirement Act
whose services were terminated prior to October
5, 1958, because of unfitness for further useful
service by reason of mental or physical dis-
ability resulting from age or disease.
(2) Subject to subsection (b), cash relief under
this subsection may not exceed $1.50 per month
for each year of service of the employees so fur-
nished relief, with a maximum of $45 per month,
plus the amount of any cost-of-living increases
in such cash relief granted before October 1,
1979, pursuant to section 181 of title 2 of the
Canal Zone Code (as in effect on September 30,
1979), nor be paid to any employee who, at the
time of termination for disability prior to Octo-
ber 5, 1958, had less than 10 years’ service with
the Canal Zone Government, the Panama Canal
Company, or their predecessor agencies on the
Isthmus of Panama.
(b) Additional amounts for relief under sub-
section (a)
An additional amount of $20 per month shall
be paid to each person who receives payment of
cash relief under subsection (a) of this section
and shall be allowed without regard to the limi-
tations contained therein.
(c) Increases in cash relief payments
Each cash relief payment made pursuant to
this section shall be increased on the same effec-
tive date and by the same percent, adjusted to
the nearest dollar, as civil service retirement
annuities are increased under the cost-of-living
adjustment provisions of section 8340(b) of title
5. Such increase shall apply only to cash relief
payments made after October 1, 1979, as in-
creased by annuity increases made after that
date under such section 8340(b) of title 5.
(d) Cash relief payments to widows
The Commission may pay cash relief to the
widow of any former employee of the Canal Zone
Government or the Panama Canal Company
who, until the time of his death, receives or has
received cash relief under subsection (a) of this
section, under section 181 of title 2 of the Canal
Zone Code (as in effect on September 30, 1979), or
under the Act of July 8, 1937, referred to in such
subsection (a). The term ‘‘widow’’ as used in this
subsection includes only the following:
(1) a woman legally married to such em-
ployee at the time of his termination for dis-
ability and at his death;
(2) a woman who, although not legally mar-
ried to such former employee at the time of
his termination, had resided continuously
with him for at least five years immediately
preceding the employee’s termination under
such circumstances as would at common law
make the relationship a valid marriage and
who continued to reside with him until his
death; and
(3) a woman who has not remarried or as-
sumed a common-law relationship with any
other person.
Cash relief granted to such a widow shall not at
any time exceed 50 percent of the rate at which
cash relief, inclusive of any additional payment
under subsection (b) of this section, would be
payable to the former employee were he then
alive.
(e) Applicability of subchapter III of chapter 83
of title 5
Subchapter III of chapter 83 of title 5 applies
with respect to those individuals who were in
the service of the Canal Zone Government or the
Panama Canal Company on October 5, 1958, and
who, except for the operation of section 13(a)(1)
of the Act entitled ‘‘An Act to implement item
1 of a Memorandum of Understanding attached
to the treaty of January 25, 1955, entered into by
the Government of the United States of America
and the Government of the Republic of Panama
with respect to wage and employment practices
of the Government of the United States of
America in the Canal Zone’’, approved July 25,
1958 (72 Stat. 405), would have been within the
classes of individuals subject to the Act of July
8, 1937, referred to in subsection (a) of this sec-
tion.
(Pub. L. 96–70, title I, § 1245, Sept. 27, 1979, 93
Stat. 475; Pub. L. 104–201, div. C, title XXXV,
§§ 3538, 3548(c)(2), Sept. 23, 1996, 110 Stat. 2864,
2869.)
Editorial Notes
REFERENCES IN TEXT
The reference to the Act of July 8, 1937, in subsecs.
(a)(1), (d), and (e), is act July 8, 1937, ch. 443, 50 Stat.
478, which was classified to section 1372 of Title 48, Ter-
ritories and Insular Possessions, prior to repeal by Pub.
L. 87–845, § 26(b), Oct. 18, 1962, 76A Stat. 701.
The Canal Zone Code, referred to in subsec. (a)(2), was
enacted by Pub. L. 87–845, § 1, Oct. 18, 1962, 76A Stat. 1,
redesignated the Panama Canal Code by Pub. L. 96–70,
title III, § 3303(b), Sept. 27, 1979, 93 Stat. 499, and re-
pealed by Pub. L. 104–201, div. C, title XXXV, § 3549,
Sept. 23, 1996, 110 Stat. 2870.
Section 13(a)(1) of Act July 25, 1958, referred to in sub-
sec. (e), probably means section 13(a) of Pub. L. 85–550,
July 25, 1958, 72 Stat. 405, which is set out as a note
under section 8331 of Title 5, Government Organization
and Employees.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Citizens separated from employment with Panama Canal Company or Canal Zone Government** Any citizen of the United States—
(1) who, on March 31, 1979, was an employee of the Panama Canal Company or the Canal Zone Government;
(2) who separates or is scheduled to separate on or after such date for any reason other than misconduct or delinquency; and
(3) who is not placed in another appropriate position in the Government of the United States in the Republic of Panama;
**(b) Citizens eliminated from employment with Executive agency or Canal Zone Government as a result of implementation of Panama Canal Treaty of 1977** Any citizen of the United States—
(1) who, on March 31, 1979, was employed in the Canal Zone as an employee of an Executive agency (other than the Panama Canal Company or the Canal Zone Government) or the Smithsonian Institution;
(2) whose position is eliminated as the result of the implementation of any provision of the Panama Canal Treaty of 1977 and related agreements; and
(3) who is not appointed to another appropriate position in the Government of the United States in the Republic of Panama;
shall, upon the employee’s request, be accorded appropriate assistance for placement in vacant positions in the Government of the United States in the United States.
**(c) Establishment and administration of program by Office of Personnel Management** The Office of Personnel Management shall establish and administer a Government-wide placement program for all eligible employees who request appointment to positions under this section.
**(d) Effective date** The provisions of this section shall take effect on September 27, 1979.