PUBLIC LAW 96-499—DEC. 5, 1980
94 STAT. 2605
TITLE IV—CIVIL SERVICE, POSTAL SERVICE, AND RELATED PROGRAMS Subtitle A—Savings Under the Civil Service Program ELIMINATION OP RETROACTIVE ANNUITY ADJUSTMENT; PRORATION OP INITIAL ADJUSTMENT
SEC. 401. (a) Section 8340(c) of title 5, United States Code, relating to cost-of-living adjustments, is amended— (1) by striking out paragraph (1) thereof; and (2) by inserting in lieu thereof the following new paragraph; "(1) The first increase (if any) made under subsection (b) of this section to an annuity which is payable from the Fund to an employee or Member who retires, or to the widow or widower of a deceased employee or Member, shall be equal to the product (adjusted to the nearest Vio of 1 percent) of— "(A) Ve of the applicable percent change computed under subsection Ob) of this section, multiplied by "(B) the number of full months for which the annuity was payable from the Fund before the effective date of the increase (counting any portion of a month as a full month).". Ob)(l) The amendment made by subsection (a)(1) shall apply with 5 USC 8340 note. respect to annuities commencing after the 45th day after the date of the enactment of this Act, (2) The amendment made by subsection (a)(2) shall take effect with respect to any annuity increase which takes effect after the date of the enactment of this Act. ELIMINATION OF CREDIT FOR HOLIDAYS IN CALCULATING LUMP-SUM L E A V E PAYMENTS
SEC. 402. (a) Section 5551(a) of title 5, United States Code, relating to lump-sum payment at separation for accumulated leave, is amended by adding at the end thereof the following new sentence: "The period of leave used for calculating the lump-sum payment shall not be extended due to any holiday occurring after separation.". (b) The amendment made by subsection (a) shall take effect on the Effective date. date of the enactment of this Act and shall apply to employees ^ ^^^ ^^^^ ^°*^separating from the service on or after such date. DISABILITY RETIREMENT ELIGIBILITY
SEC. 403. (a) Section 8337(a) of title 5, United States Code, relating to disability retirement, is amended to read as follows: "(a) An employee who completes 5 years of civilian service and has become disabled shall be retired on the employee's own application or on application by the employee's agency. Any employee shall be considered to be disabled only if the employee if found by the Office of Personnel Management to be unable, because of disease or injury, to render useful and efficient service in the employee's position and is not qualified for reassignment, under procedures prescribed by the Office, to a vacant position which is in the agency at the same grade or level and in which the employee would be able to render useful and efficient service. For the purpose of the preceding sentence, an employee of the United States Postal Service shall be considered not qualified for a reassignment described in that sentence if the reas-
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