SUPPLEMENTAL RETIREMENT PLAN FOR FSN EMPLOYEES

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                                                 LES COMPENSATION PLAN

                                      STATE, USAID, FAS, DAO, OMC, COE, LOC
                                              FCS, DEA AND NAMRU-3

                                               ATTACHMENT H (a)
                                         SUPPLEMENTAL RETIREMENT PLAN
Under the authority contained in 3 FAM 7341 and consistent with prevailing employment practices in Egypt, Post’s Supplemental
Retirement Plan has been authorized as of December 9, 2001, to eligible Locally Employed Staff (LES) of all U.S. government
agencies following the Mission LES joint local compensation plan. Effective October 1, 1999, the plan was applied for cases of
mandatory retirement and involuntary separations with entitlement to annuity from ESI. As of September 23, 2001, all cases of
involuntary separations are entitled to severance payment.

1.     Applicability

This plan is applicable to full-time and part-time LES enrolled under ESI, FICA or another retirement plan other than CSR, who are
(a) working under non-temporary Direct Hire appointments, Personal Services Agreements (PSA & PSA PLUS), and Personal
Services Contracts and (b) paid under the Local compensation Plan.

Excluded from coverage are employees under temporary appointments; non- personal services contracts personnel and their
employees, supplied by an independent contractor licensed to do business in Egypt who provides services to other local organizations
as well as the U.S. Mission; employees of USAID institutional contractors; Peace Corps personal Services contractors as indicated in
MS 743; and official residence expense (ORE) employees.

Persons separated prior to the effective date of this plan, regardless of type of employment, are not entitled to supplemental retirement
pay for their prior service under the terms of this plan. Supplemental retirement pay entitlements for these employees will be in
accordance with the plan, if any, in effect at the time of their separation.



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2.        Amount of Supplemental Retirement Pay
a.        Eligible employees with a minimum of five years of creditable service who separate at mandatory retirement age (60) or
          voluntarily separate before age 60 with entitlement to an immediate annuity from a retirement plan are entitled to
          Supplemental Retirement benefit as follows:
          LES-1 and LES-2: 7% of salary for each year of creditable service.
          LES-3 through LES-13: 9.5% of salary for each year of creditable service.
          Eligible employees who entered on duty prior to 2/21/82 and who retire at or before age 60 are entitled to the greater of
          either (a) severance pay of half month’s salary for each of the first five years of service plus one month’s salary for each
          subsequent year of service or (b) the benefit payable under the Supplemental Retirement Plan.
b.        A prorated amount will be paid for a partially completed year of service.

c.        The salary basis used to compute the payment is the employee’s annual basic salary in effect on the date of separation. Basic
          salary is exclusive of allowances, bonuses, premium pay, and any other separate benefits or payments.

d.        If an employee is regularly scheduled to work on a part time basis at the time of separation, the salary used to calculate the
          supplemental retirement pay is the full time (40-hour workweek) scheduled basic salary for the employee’s grade and step.
          Creditable service for part time employment is prorated as required by section (4) i.

e.        If an employee returns to duty after retirement, he/she will be entitled to the Over-60 Bonus. No additional payment is made
          under the terms of the Supplemental Retirement Plan.

3.        Eligibility Requirements
All employees paid under the terms of the Joint Local Compensation Plan who retire are eligible for Supplemental Retirement Pay,
except:

     a.      Those who are involuntarily separated for cause or who voluntarily separate to avoid being separated for cause.



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b.     Those who are separated from temporary appointments.

c.     Those with less than five years of creditable service.

d.     Those who voluntarily or involuntarily separate before retirement age and do not qualify for an immediate annuity from a
       retirement plan.

e.     Those who receive payment at separation under the Post’s Severance Pay Plan.

f.     Those who are participating in CSR or another retirement plan, other than ESI or FICA, to which the USG contributes.

g.     Those who die in service or are separated due to disability, with entitlement to life and/or disability insurance benefits.

4.     Creditable Service
The following criteria govern the determination of creditable U.S. Government service for the purposes of payments under this plan.
a.     Creditable service is documented continuous service in Egypt with U.S. Government (USG) agencies (1) under a non-
       temporary direct hire appointment, Personal Services Agreement, or Personal Services Contract for which supplemental
       retirement has not been received, (2) when the employee is separated from full time employment and reemployed, without a
       break in service, on a part time basis, or vice versa. Continuous service is service without a break of more than three calendar
       days.

b.     Creditable service includes employment in Egypt under a temporary direct hire appointment that is converted to a non
       temporary appointment, Personal Services Agreement, or Personal Services Contract without a break in service of more than
       three calendar days.
c.     Creditable service does not include any service of any type performed in a country other than Egypt.

d.     Creditable service does not include any service of any type during which the employee was compensated using a pay plan
       other than the authorized Local Compensation Plan



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e.     Creditable service does not include any service of any type during which the employee was enrolled under CSR. This
       restriction applies even if the employee has withdrawn or stopped participating in CSR.
f.     Creditable service does not include any personal services contract time with Peace Corps as indicated in MS 743
g..    Periods of Leave without pay which accumulate to more than two weeks are deducted from creditable service.
h.     Part-time service will be prorated (reduced) according to the number of regularly scheduled hours in the employee’s
       workweek. For purposes of prorating, 40 hours is a full time workweek.

i.     Creditable service does not include indirect employment or so-called non-personal services with an In-House entity providing
       services exclusively to the Mission unless all of the following criteria are met and documented:
        In the case of non-personal services with an In-House entity, the host government considers the entity to be an integral part
           of the Mission.
        Such service immediately precedes creditable personal services agreement, Personal services contract or direct hire
           employment without a break in service of more than three calendar days, and
        Such service is recognized by local law to be continuous service with the USG.

j.     Creditable service does not include any period during which an individual provided services to the U.S. Mission under a
       purchase order.


5.     Refunds of Payment
Persons who have received supplemental retirement pay from the USG and are reemployed by the USG shall not be permitted to
refund any portion of the payment. There is no entitlement to supplemental retirement pay for periods of reemployment.

6.     Transfers
For purposes of this plan, a transfer means any change in position without a break in service of more than three calendar days.



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a.     Between USG agencies within Egypt
       Supplemental retirement pay is not authorized to employees who are transferred between civilian USG Agencies within Egypt
       without a break in service of more than three calendar days. Service credit toward supplemental retirement pay entitlements
       which has been earned through employment with the losing Agency is transferred to the gaining Agency. The gaining Agency
       will assume all obligations for supplemental retirement pay for prior creditable periods of service with any USG agency, if the
       employee is entitled to supplemental retirement pay on final separation.

b.     Between or within USG Agencies in different countries
       Creditable service for supplemental retirement pay is limited to service performed in Egypt. Therefore, an employee who
       transfers to Egypt from another country receives no service credit for employment at the losing post. An employee who
       transfers to another country from Egypt is not eligible for supplemental retirement pay since the employee is not retiring.

7.     Appeals

If disputes arise involving supplemental retirement pay entitlements or requirements, the employee has the right of appeal to the
Ambassador or designee. The decision of the Ambassador or designee shall be final. However, the rules of this plan may not be
waived or revised without the written authorization of the Department (PER/OE/CMD). Rules governing grievance appeals are on file
at the Mission Personnel Office.




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                                                LES COMPENSATION PLAN
                                            STATE, USAID, FAS DAO, OMC, COE, LOC,
                                                    FCS, DEA AND NAMRU-3

                                                         ATTACHMENT H (b)
                                                  LES SEVERANCE PAY PLAN

Under the authority contained in 3 FAM 7341 and consistent with prevailing employment practices in Egypt, severance pay is
authorized as of January 12, 1992, to eligible Locally Employed Staff (LES) and U.S. citizen employees of all U.S. Government
Agencies following the Mission’s joint local compensation plan. The plan has been revised as follows:
    a) Effective September 23, 2001, increase payment for involuntary separation before retirement, 2001, as per 01 State 14447;
    b) Effective December 9, 2001, include benefits for employees who entered on duty on or after 2/21/82, and who voluntarily
       separate before mandatory retirement age, with a minimum of five years of creditable service, as per 98 State 227844.
    c) As per 3 FAM 7131.3 and 3 FAM 7132, Effective September 15, 2003, include benefits for employees who are assigned or
       reassigned within the Mission to full-time or part-time driver positions and does not meet the Department of Transportation
       (DOT) criteria for safe driving

1.     Applicability
This plan is applicable to full-time and part-time LES and U.S. citizen employees who are: a) working under non-temporary Direct
Hire appointments, personal services agreements, and personal services contracts and, b) paid under the local compensation plan.

Excluded from coverage are employees under temporary appointments; non personal services contract personnel and their employees,
supplied by an independent contractor licensed to do business in Egypt who provides services to other local organizations as well as to
the U.S. Mission; employees of USAID institutional contractors; peace corps personal services contractors as indicated in MS 743;
and official residence expense (ORE).




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Persons separated prior to the effective date of this plan, regardless of type of employment, are not entitled to severance pay for their
prior service under the terms of this plan. Severance pay entitlements for these employees will be in accordance with the plan, if any,
in effect at the time of their separation.


2.     Amount of Severance Payment

a.     (1) Notice by Employer - Involuntary Separation before Mandatory Retirement Age 60:
       Eligible employees who are involuntarily separated before retirement are entitled to severance pay as follows:
       One and a half (1.5) month’s pay from Basic Rate (BR) for each completed year of service.

       An employee who has received an individual specific written notice of separation due to a reduction in force (RIF) and who
       resigns before the scheduled RIF separation date will receive severance pay as if the employee has been involuntary separated
       provided the employee's actual effective date of separation is not more than 90 calendar days prior to the date the employee is
       scheduled to be separated by RIF.

       (2) Partial/Permanent Disability
        Termination for temporary or partial/permanent disability will be considered an involuntary separation. Severance pay
        Benefits will be negotiated up to limits now in place for involuntary separations.

       (3) Involuntary Separation for Drivers who fail to meet the DOT Standards:
        1- Drivers covered by the Egyptian Social Insurance (ESI) system who are approved for medical disability retirement:
            Monthly ESI pension for disability retirement: 9.5% of the Basic Rate (BR) for each year of service.
        2- Drivers covered by the Egyptian Social Insurance (ESI) system who are not approved by ESI for medical disability
            retirement: One and a half (1.5) month’s pay from the Basic Rate (BR) for each completed year of service.
        3- Drivers covered by the Civil Service Retirement System (CSR): Once the applications for disability retirement are
            approved by the Office of Personnel Management (OPM) in the U.S. the driver will be entitled to receive monthly CSRs
            annuity: Severance payment equal to ½ month of Basic Rate (BR) for each of the first five years of service plus one
            month of BR for each subsequent year of service.




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b.   Notice by Employee - Voluntary Separation before Retirement (Mandatory or Early)
     (1) Eligible employees who entered on duty on or after 2/21/82 and who voluntarily separate before retirement with a
         minimum of 5 years of creditable service are entitled to severance pay as follows:
         LES 1 and 2: 4.0% of salary for each year of creditable service.
         LES-3 through 13: 5.0% of salary for each year of creditable service.

     (2) Eligible employees who entered on duty prior to 2/21/82 and voluntarily separate before retirement age 60, are entitled to
         severance pay of 1/2 month’s salary for each of the first five years of service plus one month’s salary for each subsequent
         year of service.

c.    Retirement at or before Age 60 (Mandatory or Early)
     (1) Eligible employees enrolled under ESI who entered on duty prior to 2/21/82 and who retire at or before age 60 are entitled
         to the greater of either (a) severance pay of half month’s salary for each of the first five years of service plus one month’s
         salary for each subsequent year of service with no minimum length of service requirement or (b) the benefit payable under
         the Supplemental Retirement Plan.


     (2) Eligible employees enrolled under CSR who entered on duty prior to 2/21/82 who retire at age 60 are entitled to severance
         pay of half month’s salary for each of the first five years of service plus one month salary for each subsequent year of
         service.
d.   Computation:
     (1) A prorated amount will be paid for a partially completed year of service, if the employee is otherwise eligible for
     severance pay.
     (2) The salary basis used to compute the severance payment is the employee’s annual basic salary in effect on the date of
     separation. Basic salary is exclusive of allowances, bonuses, premium pay, and any other separate benefits or payments.
     (3) If an employee is regularly schedules to work on a part time basis at the time of separation, the salary used to calculate the
     severance payment is the full time (40 hour workweek) scheduled basic salary for the employee’s grade and step. Creditable
     service for part time employment is prorated as required by section (4)g.



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3.     Eligibility Requirements
All employees paid under the terms of the joint Local compensation plan and whose employment with the USG is terminated are
eligible for severance pay, except:
a.     Those who are separated for cause and those who voluntarily separate to avoid being separated for cause.
b.     Those who are separated from temporary appointments.
c.     Those who retire at or before age 60 and receive payment under the LES supplemental Retirement Plan.
d.     Those who entered on duty on or after 09/23/01 and are eligible for an immediate annuity from CSR.
f.     Those with less than five years of creditable service if they entered on duty on or after 12/09/01 and voluntarily separate before
       retirement.
g.     Those who die in service or are separated due to disability, with entitlement to life and/or disability insurance benefits.

4.     Creditable Service

The following criteria govern the determination of creditable U.S. Government service:
a.     Creditable service is documented continuous service with U.S. Government (USG) agencies (1) under a non-temporary direct
       hire appointment, personal services agreement, or personal services contract for which severance pay has not been received,
       (2) when the employee is separated from full time employment and reemployed, without a break in service, on a part time
       basis, or vice versa. Continuous service is service without a break of more than three calendar days

b.     Creditable service includes employment under a temporary direct hire appointment that is converted to a non-temporary
       appointment, personal services agreement, or personal services contract without a break in service of more than three calendar
       days.

c.     Creditable service includes service performed under a personal services agreement or contract. Eligible employees are not
       granted severance pay at the expiration of their agreements or contracts if (1) the agreement or contract is to be renewed, or (2)
       the employee transfers to a direct hire position without a break in service of more than three calendar days.


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d.     Creditable service does not include any personal services contract time with Peace Corps as indicated in MS 743,

e.     Periods of leave without pay which accumulate to more than two weeks are deducted from creditable service.

f.     Part-time service will be prorated (reduced) according to the number of regularly scheduled hours in the employee’s
       workweek. For purposes of prorating, 40 hours is a full time workweek.

g.     Creditable service does not include indirect employment or so-called non-personal services with an In-House entity providing
       services exclusively to the Mission unless all of the following criteria are met and documented:
           In the case of non-personal services with an In-House entity, the host government considers the entity to be an integral
              part of the Mission.
           Such service immediately precedes creditable personal services agreement, Personal services contract or direct hire
              employment without a break in service of more than three calendar days, and
           Such service is recognized by local law to be continuous service with the USG.

h.     Creditable service does not include any period during which an individual provided services to the U.S. Mission under a
       purchase order.

5.     Refunds of Payment

Persons who have received severance pay from the USG and are reemployed by the USG shall not be permitted to refund any portion
of the payment. Eligibility toward new severance pay entitlements shall begin as of the date of reemployment.

6.     Transfers

a.     Between USG agencies within a country:
       Severance pay is not authorized to employees who are transferred between civilian USG agencies within a country. Transfers
       are considered a change in employment from one USG agency to another without a break in service of more than three
       calendar days. Service credit toward severance pay entitlements, which has been earned through employment with the losing
       agency, is transferred to the gaining agency. The gaining agency will assume all obligations for severance pay for prior

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       creditable periods of service with any USG agency, if the employee is entitled to severance pay on final separation. For
       transfers involving service with DOD offices, interagency funding (if necessary) is to be resolved on a case-by-case basis.

b.     Between or within USG agencies in different countries:
       The rules in paragraph (6 a) apply. Under these circumstances, service credit toward severance pay entitlements earned under
       the terms of the losing post’s plan would be transferred to the gaining post. Any severance pay entitlements of such employees
       are based on the terms of the severance pay plan in effect at the gaining post.

7.     Appeals

If disputes arise involving severance pay entitlements or requirements, the employee has the right of appeal to the Ambassador or
designee. The decision of the Ambassador or designee shall be final. However, the rules of this plan may not be waived or revised
without the written authorization of the Department (PER/OE/CMD). Rules governing grievance appeals are on file at the Mission
Personnel Office.




                                                                                                 Authorized: 98 STATE 227844
                                                                                                 Last updated September 14, 2008