Number: 111- 23
Date: October 29, 2009

President Signs P.L. 111-84, the
“National Defense Authorization Act for Fiscal Year 2010”


On October 28, 2009, President Obama signed into law H.R. 2647 , the “ National Defense Authorization Act for Fiscal Year 2010” (P.L. 111-84). The legislation predominantly provides for military appropriations. However, several provisions related to Federal employee benefits are contained within the bill.

The bill contains the following provisions of interest to SSA:

•  Allows the head of a Federal agency to waive the dual compensation rules for Civil Service Retirement System (CSRS) and the Federal Employee's Retirement System (FERS) annuitants who are re-employed in order to fulfill functions critical to the mission of the agency or any component of the agency. The waiver cannot be applied to annuitants working more than 520 hours in a six month period, 1040 hours in a 12-month period, or for more than a total of 3120 hours. Limits apply to the total number of individuals hired under the waiver. The waiver authority terminates 5 years after enactment. The Office of Personnel Management will promulgate regulations for the administration of this provision.

•  Allows the head of a Federal agency to waive the annual limitations on premium and aggregate pay for Federal civilian employees working overseas.

•  Extends to Federal employees retired under the CSRS the opportunity to work for the Department of Defense and collect an unreduced CSRS pension.

•  Extends to Federal employees who separated before March 1, 1991, eligibility to receive an actuarially reduced annuity under CSRS. (Old law limit on eligibility was October 1, 1990.)

•  Provides Federal employees1 covered under the FERS with credit for unused sick leave for pension computation purposes. The credit is phased-in, with FERS awards before December 31, 2013, receiving 50 percent of unused sick leave. After 2013, 100 percent of sick leave will be credited.

•  Allows Federal employees under FERS to redeposit withdrawn contributions, with interest, into their retirement account. The return of these withdrawals allows the additional service (upon which the withdrawal was based) to be included in the calculation of pensions.

•  Provides Federal employees2 with retirement credit for service performed in the District of Columbia , to be used in the calculation of FERS or CSRS pensions, as applicable.

•  Provisions are effective upon enactment, October 28, 2009.


1 Sick leave credit will not be included in pension calculations for employees who served as Presidential appointees during periods of excepted service.

2 Credit for service will not be included in pension calculations for employees who served judicial or related appointments, during periods where the employee served in an appointed position.