
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC5518]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                      Subpart D--Pay and Allowances
 
                     CHAPTER 55--PAY ADMINISTRATION
 
                     SUBCHAPTER II--WITHHOLDING PAY
 
Sec. 5518. Deductions for State retirement systems; National 
        Guard employees
        
    When--
        (1) a State statute provides for the payment of employee 
    contributions to a State employee retirement system or to a State 
    sponsored plan providing retirement, disability, or death benefits, 
    by withholding sums from the pay of State employees and making 
    returns of the sums withheld to State authorities or to the person 
    or organization designated by State authorities to receive sums 
    withheld for the program; and
        (2) individuals employed by the Army National Guard and the Air 
    National Guard, except employees of the National Guard Bureau, are 
    eligible for membership in a State employee retirement system or 
    other State sponsored plan;

the Secretary of Defense, under regulations prescribed by the President, 
shall enter into an agreement with the State within 120 days of a 
request for agreement from the proper State official. The agreement 
shall provide that the Department of Defense shall comply with the 
requirements of State statute as to the individuals named by paragraph 
(2) of this section who are eligible for membership in the State 
employee retirement system. The disbursing officials paying these 
individuals shall withhold and pay to the State employee retirement 
system or to the person or organization designated by State authorities 
to receive sums withheld for the program the employee contributions for 
these individuals. For the purpose of this section, ``State'' means a 
State or territory or possession of the United States including the 
Commonwealth of Puerto Rico.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 479.)

                      Historical and Revision Notes
------------------------------------------------------------------------
                                                    Revised Statutes and
     Derivation                U.S. Code             Statutes at Large
------------------------------------------------------------------------
                     5 U.S.C. 84d.                 June 15, 1956, ch.
                                                    390, 70 Stat. 283.
                                                   Sept. 13, 1961, Pub.
                                                    L. 87-224, Sec.  1,
                                                    75 Stat. 496.
------------------------------------------------------------------------

    The words ``individuals employed by'' and the word ``individuals'' 
are substituted for ``civilian employees of'' and ``employees'', 
respectively, in view of the definition of ``employee'' in section 2105 
which is limited to those employed by the Government of the United 
States. The word ``civilian'' is omitted as unnecessary as military 
personnel are not ``employed''. The words ``disbursing officials'' are 
substituted for ``disbursing officers'' as the definition of ``officer'' 
in section 2104 excludes a member of a uniformed service.
    Standard changes are made to conform with the definitions applicable 
and the style of this title as outlined in the preface to the report.

  Ex. Ord. No. 10996. Withholding of Compensation for State and State-
  Sponsored Employee Retirement, Disability, or Death Benefits Programs

    Ex. Ord. No. 10996, Feb. 16, 1962, 27 F.R. 1521, provided:
    By virtue of the authority vested in me by the act of June 15, 1956, 
as amended, 75 Stat. 496 (5 U.S.C. 84d) [now this section], and by 
section 301 of title 3 of the United States Code, and as President of 
the United States, it is ordered as follows:
    Section 1. As used in this order, the term:
    (a) ``Employees'' means civilian employees of the Army National 
Guard or Air National Guard of a State who are employed pursuant to 
section 709 of title 32 of the United States Code, and paid from 
Federal, appropriated funds.
    (b) ``State'' means one of the United States, the Commonwealth of 
Puerto Rico, and any territory of the United States.
    Sec. 2. Each agreement between the Secretary of Defense and the 
Governor or other proper official of a State, pursuant to the provisions 
of the act of June 15, 1956, as amended, with respect to withholding of 
compensation of certain civilian employees of the Army National Guard 
and the Air National Guard for purposes of State or State-sponsored 
employee retirement, disability, or death benefits systems, shall be 
entered into by the Secretary of Defense within one hundred and twenty 
days of the receipt of a request therefor by the Secretary from the 
Governor or any other proper official of any State; Provided, that--
    (a) the law of such State provides for the payment of employee 
contributions to such State or State-sponsored employee retirement, 
disability, or death benefits systems by withholding sums from the 
compensation of such State employees and making returns of such sums to 
officials of such State or organization designated by such officials to 
receive sums withheld for such programs;
    (b) civilian employees of the Army National Guard and the Air 
National Guard, other than those employed by the National Guard Bureau, 
are eligible for membership in a State retirement, disability, or death 
benefits system; and
    (c) each such agreement is consistent with the provisions of the 
said act of June 15, 1956, as amended, and of rules and regulations 
issued thereunder, and contains a clause that it shall be subject to any 
amendments of the said act, including amendments occurring after the 
effective date of such agreement.
    Sec. 3. Each such agreement shall:
    (a) Provide that the Secretary of the Army with respect to civilian 
employees of the Army National Guard, and the Secretary of the Air Force 
with respect to civilian employees of the Air National Guard, shall 
comply with the requirements of such State law in the case of employee 
subject to the said act of June 15, 1956, as amended, who are eligible 
for membership in such retirement, disability, or death benefits system 
for State employees;
    (b) Specify when the withholding of sums from the compensation of 
such State employees shall commence; and
    (c) Provide for procedures for the withholding, the filing of the 
returns, and the payment of the sums withheld from compensation to the 
officials of the State, or organization designated by such officials to 
receive sums withheld for such programs, which procedures shall conform, 
so far as practicable, to the usual fiscal practices of the Department 
of the Army and the Department of the Air Force, respectively.
    Sec. 4. The Secretary of the Army with respect to civilian employees 
of the Army National Guard, and the Secretary of the Air Force with 
respect to civilian employees of the Air National Guard, shall 
designate, or provide for the designation of, the officers or employees 
whose duty it shall be to withhold sums from compensation, file required 
returns, and direct the payment of sums so withheld, in accordance with 
the terms of the agreements entered into between the Secretary of 
Defense and the States.
    Sec. 5. Nothing in this order, or in rules or regulations issued 
thereunder, or in any agreement entered into pursuant thereto, shall be 
construed as giving consent to the application of any provision of law 
of any State which has the effect of imposing more burdensome 
requirements upon the United States than it imposes upon departments, 
agencies, or political subdivisions of the State concerned, with respect 
to employees thereof who are members of the State or State-sponsored 
retirement, disability, or death benefits system, or which has the 
effect of subjecting the United States or any of its officers or 
employees to any penalty or liability.
    Sec. 6. I hereby delegate to the Secretary of Defense authority to 
prescribe such rules and regulations, not inconsistent herewith, as may 
be necessary to effectuate further the provisions of the said act of 
June 15, 1956, as amended, or of this order.
    Sec. 7. Except to the extent that they may be inconsistent with this 
order, all determinations, authorizations, regulations, rulings, 
certificates, orders, directives, contracts, agreements, and other 
actions made, issued, or entered into with respect to any function 
affected by this order and not revoked, superseded, or otherwise made 
inapplicable before the date of this order, shall continue in full force 
and effect until amended, modified, or terminated by appropriate 
authority.
    Sec. 8. This order supersedes Executive Order No. 10679 of September 
20, 1956.
                                                        John F. Kennedy.
