Part 2 - Employees

subpart i - panama canal commission personnel

22 USC 3641 - Definitions

As used in this part
(1) Executive agency has the meaning given that term in section 105 of title 5;
(2) uniformed services has the meaning given that term in section 2101 (3) of title 5;
(3) competitive service has the meaning given that term in section 2102 of title 5; and
(4) United States, when used in a geographic sense, means each of the several States and the District of Columbia.

22 USC 3642 - Appointment and compensation; duties

(a) Officers and employees 
In accordance with this part, the Commission may appoint, fix the compensation of, and define the authority and duties of officers and employees (other than the Administrator and Deputy Administrator) necessary for the management, operation, and maintenance of the Panama Canal and its complementary works, installations, and equipment.
(b) Eligibility to serve as officer or employee of Commission 
Individuals serving in any Executive agency (other than the Commission) or the Smithsonian Institution, including individuals in the uniformed services, may, if appointed under this section or section 3614 of this title, serve as officers or employees of the Commission.
(c) Salary protection 
In the case of an individual who is an officer or employee of the Commission on November 17, 1997, and who has not had a break in service with the Commission since that date, the rate of basic pay for that officer or employee may not be less than the rate in effect for that officer or employee on that date except
(1) as provided in a collective bargaining agreement;
(2) as a result of an adverse action against the officer or employee; or
(3) pursuant to a voluntary demotion.

22 USC 3643 - Transfer of Federal employees

(a) Authority to enter into agreements; reemployment rights 
The head of any agency may enter into agreements for the transfer or detail to the Commission of any employee of that agency serving under a permanent appointment. Any employee who so transfers or is so detailed shall, upon completion of the employees tour of duty with the Commission, be entitled to reemployment with the agency from which the employee was transferred or detailed without loss of pay, seniority, or other rights or benefits to which the employee would have been entitled had the employee not been so transferred or been so detailed.
(b) “Agency” defined 
For purposes of this section, the term agency means an Executive agency, the United States Postal Service, and the Smithsonian Institution.
(c) Regulations 
The Office of Personnel Management shall prescribe regulations to carry out the purposes of this section.

22 USC 3644 - Compensation of individuals in uniformed services

(a) Individual serving in a position in Commission 
Except as provided in subsection (b) of this section, any individual who is serving in a position in the Commission and who is a member of a uniformed service shall continue to be paid basic pay by such uniformed service and shall not be paid by the Commission for the period of the service in the uniformed service involved.
(b) Individual appointed as Administrator, Deputy Administrator, or Chief Engineer 
If the individual appointed as Administrator, Deputy Administrator, or Chief Engineer of the Commission is a member of a uniformed service, the amount of basic pay otherwise payable to the individual for service in that position shall be reduced, up to the amount of that basic pay, by the amount of the basic pay payable to the individual as a member of a uniformed service.
(c) Reimbursement to uniformed service 
The Commission shall annually pay to each uniformed service amounts sufficient to reimburse that uniformed service for any basic pay paid by that uniformed service to any member of that service during any period of service in the Commission by the member.

22 USC 3645 - Deduction from basic pay of amounts due for supplies or services

The Commission may deduct from the basic pay otherwise payable by the Commission to any officer or employee of the Commission any amount due from the officer or employee to the Commission or to any contractor of the Commission for transportation, board, supplies, or any other service. Any amount so deducted may be paid by the Commission to any contractor to whom it is due or may be credited by the Commission to any fund from which the Commission has expended such amount.

3646, 3647. Repealed. Pub. L. 105261, div. C, title XXXV, 3507(a), Oct. 17, 1998, 112 Stat. 2269

Section 3646, Pub. L. 96–70, title I, § 1206, Sept. 27, 1979, 93 Stat. 462, related to cost of living allowance. Section 3647, Pub. L. 96–70, title I, § 1207, Sept. 27, 1979, 93 Stat. 462; Pub. L. 99–223, § 5(a), Dec. 28, 1985, 99 Stat. 1739, related to educational travel benefits.

22 USC 3648 - Privileges and immunities of certain employees

The Secretary of Defense shall designate those officers and employees of the Commission and other individuals entitled to the privileges and immunities accorded under paragraph 3 of Article VIII of the Panama Canal Treaty of 1977. The Department of State shall furnish to the Republic of Panama a list of the names of such officers, employees, and other individuals and shall notify the Republic of Panama of any subsequent additions to or deletions from the list.

22 USC 3649 - Applicability of certain benefits

Chapter 81 of title 5, relating to compensation for work injuries, chapters 83 and 84 of such title 5, relating to retirement, chapter 87 of such title 5, relating to life insurance, and chapter 89 of such title 5, relating to health insurance, are applicable to Commission employees, except any individual
(1) who is not a citizen of the United States;
(2) whose initial appointment by the Commission occurs after October 1, 1979; and
(3) who is covered by the Social Security System of the Republic of Panama pursuant to any provision of the Panama Canal Treaty of 1977 and related agreements.

22 USC 3650 - Air transportation

(a) Notwithstanding any other provision of law (except subsection (b) of this section), the Commission may contract with Panamanian carriers registered under the laws of the Republic of Panama to provide air transportation to officials and employees of the Commission who are citizens of the Republic of Panama.
(b) An official or employee of the Commission who is a citizen of the Republic of Panama may elect, for security or other reasons, to travel by an air carrier holding a certificate under section 41102 of title 49.

subpart ii - wage and employment practices

22 USC 3651 - Definitions

As used in this subpart
(1) agency means
(A) the Commission, and
(B) any other Executive agency or the Smithsonian Institution, to the extent of any election in effect under section 3652 (b) of this title;
(2) position means a civilian position in the Commission, or in any other agency if a substantial portion of the duties and responsibilities are performed in the Republic of Panama; and
(3) employee means an individual serving in a position.

22 USC 3652 - Panama Canal Employment System; merit and other employment requirements

(a) Establishment; merit and other employment requirements 
The Commission shall establish a Panama Canal Employment System and prescribe the regulations necessary for its administration. The Panama Canal Employment System shall
(1) be established in accordance with and be subject to the provisions of the Panama Canal Treaty of 1977 and related agreements, the provisions of this part, and any other applicable provision of law;
(2) be based on the consideration of the merit of each employee or candidate for employment and the qualifications and fitness of the employee to hold the position concerned;
(3) conform, to the extent practicable and consistent with the provisions of this chapter, to the policies, principles, and standards applicable to the competitive service;
(4) in the case of employees who are citizens of the United States, provide for the appropriate interchange of those employees between positions under the Panama Canal Employment System and positions in the competitive service; and
(5) not be subject to the provisions of title 5, unless specifically made applicable by this chapter.
(b) Applicability to any Executive agency and Smithsonian Institution 

(1) The head of any Executive agency (other than the Commission) and the Smithsonian Institution may elect to have the Panama Canal Employment System made applicable in whole or in part to personnel of that agency in the Republic of Panama.
(2) Any Executive agency (other than the Commission) and the Smithsonian Institution, to the extent of any election under paragraph (1), shall conduct its employment and pay practices relating to employees in accordance with the Panama Canal Employment System.
(3) Notwithstanding any other provision of this chapter, the Panama Canal Act Amendments of 1996 (subtitle B of title XXXV of Public Law 104201; 110 Stat. 2860), or the Panama Canal Transition Facilitation Act of 1997 (subtitle B of title XXXV of Public Law 10585; 110[1] Stat. 2062), or the Panama Canal Commission Authorization Act for Fiscal Year 1999, this subpart, as in effect on September 22, 1996, shall continue to apply to an Executive agency or the Smithsonian Institution to the extent of an election under paragraph (1) by the head of the agency or the Institution, respectively.
(c) Exclusion of employees or positions from coverage 
The Commission may exclude any employee or position from coverage under any provision of this subpart, other than the interchange rights extended under subsection (a)(4) of this section.
[1] So in original. Probably should be “111”.

22 USC 3653 - Employment standards

The Commission shall establish written standards for
(1) determining the qualifications and fitness of employees and of candidates for employment in positions; and
(2) selecting individuals for appointment, promotion, or transfer to positions.

The standards shall conform to the provisions of this subpart, any regulations prescribed thereunder, and the Panama Canal Employment System.

22 USC 3654 - Repealed. Pub. L. 104201, div. C, title XXXV, 3532, Sept. 23, 1996, 110 Stat. 2863

Section, Pub. L. 96–70, title I, § 1214, Sept. 27, 1979, 93 Stat. 465, related to an interim, continuing application of Canal Zone Merit System, as in effect on Sept. 30, 1979, until Panama Canal Employment System was established and in effect.

22 USC 3655 - Repealed. Pub. L. 10585, div. C, title XXXV, 3523(a)(1), Nov. 18, 1997, 111 Stat. 2064

Section, Pub. L. 96–70, title I, § 1215, Sept. 27, 1979, 93 Stat. 465, related to establishment and revision of basic pay.

22 USC 3656 - Uniform application of standards and rates

The standards established pursuant to section 3653 of this title and the rates of basic pay established pursuant to section 3642 of this title shall be applied without regard to whether the employee or individual concerned is a citizen of the United States or a citizen of the Republic of Panama.

22 USC 3657 - Recruitment and retention remuneration

(a) Repealed. Pub. L. 105–261, div. C, title XXXV, § 3507(a), Oct. 17, 1998, 112 Stat. 2269 
(b) Restriction 
Any employee described in more than one paragraph of subsection (a) of this section may qualify for a recruitment or retention differential under only one of those paragraphs.
(c) Recruitment and relocation bonuses 

(1) The Commission may pay a recruitment bonus to an individual who is newly appointed to a position with the Commission, or a relocation bonus to an employee of the Commission who must relocate to accept a position, if the Commission determines that the Commission would be likely, in the absence of such a bonus, to have difficulty in filling the position.
(2) A recruitment or relocation bonus may be paid to an employee under this subsection only if the employee enters into an agreement with the Commission to complete a period of employment established in the agreement. If the employee voluntarily fails to complete such period of employment or is separated from service in such employment as a result of an adverse action before the completion of such period, the employee shall repay the entire amount of the bonus.
(3) A recruitment or relocation bonus under this subsection may be paid as a lump sum. A bonus under this subsection may not be considered to be part of the basic pay of an employee.
(d) Retention bonuses 

(1) The Commission may pay a retention bonus to an employee of the Commission if the Commission determines that
(A) the employee has unusually high or unique qualifications and those qualifications make it essential for the Commission to retain the employee for a period specified by the Commission ending not later than the Canal Transfer Date, or the Commission otherwise has a special need for the services of the employee making it essential for the Commission to retain the employee for a period specified by the Commission ending not later than the Canal Transfer Date; and
(B) the employee would be likely to leave employment with the Commission before the end of that period if the retention bonus is not paid.
(2) A retention bonus under this subsection
(A) shall be in a fixed amount;
(B) shall be paid on a pro rata basis (over the period specified by the Commission as essential for the retention of the employee), with such payments to be made at the same time and in the same manner as basic pay; and
(C) may not be considered to be part of the basic pay of an employee.
(3) A decision by the Commission to exercise or to not exercise the authority to pay a bonus under this subsection shall not be subject to review under any statutory procedure or any agency or negotiated grievance procedure except under any of the laws referred to in section 2302 (d) of title 5.
(e) Limit on compensation 
Additional compensation provided under this section may not exceed 25 percent of the rate of basic pay of the individual to whom the compensation is paid.

22 USC 3657a - Quarters allowances

(a) “Position” and “employee” defined 
Notwithstanding paragraphs (2) and (3) of section 3651 of this title, as used in this section
(1) position means a civilian position; and
(2) employee means an individual serving in a position in the Department of Defense whose permanent duty station is in the area which, before October 1, 1979, was known as the Canal Zone.
(b) Covered employees 
Under regulations prescribed by or under authority of the President, the Department of Defense may grant a quarters allowance in the case of
(1) any employee who is a citizen of the United States and who, before October 1, 1979, was employed by the Panama Canal Company, the Canal Zone Government, or any other agency, in the area then known as the Canal Zone; and
(2) any other employee who is a citizen of the United States and who (before, on, or after the effective date of this section) is or was recruited within the United States;

for whom adequate Government owned or leased quarters are not made available.

(c) Determination of amount 
The amount of any quarters allowance granted to an employee under this section shall be determined in accordance with the regulations prescribed under subsection (b) of this section, except that such allowance for any period may not exceed the amount, if any, by which
(1) the lesser of
(A) the actual expenses for rent and utilities incurred by the employee during such period while occupying quarters other than Government owned or leased quarters; or
(B) the maximum amount which would be authorized for such employee with respect to such period under the Department of State Standardized Regulations (Government Civilians, Foreign Areas) if such employee were covered by those regulations;

exceeds

(2) the estimated total cost of rent and utilities which the employee would have been charged if Government owned or leased quarters had been provided on a rental basis during such period.
(d) Inapplicability of election under section 3652 (b) of this title 
The provisions of this section shall apply without regard to whether any election by the Department of Defense under section 3652 (b) of this title is then in effect.

22 USC 3658 - Benefits based on basic pay

For the purpose of determining
(1) amounts of compensation for disability or death under chapter 81 of title 5, relating to compensation for work injuries;
(2) benefits under subchapter III of chapter 83 or chapter 84 of title 5, relating to retirement;
(3) amounts of insurance under chapter 87 of title 5, relating to life insurance;
(4) amounts of overtime pay or other premium pay;
(5) annual leave benefits; and
(6) any other benefits related to basic pay; the basic pay of each employee shall include the rate of basic pay established for his position under section 3642 of this title plus the amount of any additional compensation provided under section 3657 (a)1 of this title.
[1] See References in Text note below.

22 USC 3659 - Repealed. Pub. L. 10585, div. C, title XXXV, 3523(a)(2), Nov. 18, 1997, 111 Stat. 2064

Section, Pub. L. 96–70, title I, § 1219, Sept. 27, 1979, 93 Stat. 466, related to salary protection upon conversion of pay rate.

22 USC 3660 - Review and adjustment of classifications, grades, and pay level

An employee may request at any time that the employees agency
(1) review the classification of the employees position or the grade or pay level for the employees position, or both; and
(2) revise or adjust that classification, grade or pay level, or both, as the case may be.

The request for review and revision or adjustment shall be submitted and adjudicated in accordance with the regularly established appeals procedures of the agency.

22 USC 3661 - Panama Canal Board of Appeals; duties

(a) Subject to the provisions of this part, the Commission shall prescribe regulations establishing a Panama Canal Board of Appeals. The regulations shall provide for the number of members of the Board and their appointment, compensation, and terms of office, the selection of a Chairman of the Board, the appointment and compensation of the Boards employees, and other appropriate matters relating to the Board.
(b) The Board shall review and determine the appeals of employees in accordance with section 3662 of this title. The decisions of the Board shall conform to the provisions of this subpart.

22 USC 3662 - Appeals to Board; procedures

(a) Persons entitled to appeal; form; time 
An employee may appeal to the Panama Canal Board of Appeals from an adverse determination made by an agency under section 3660 of this title. The appeal shall be made in writing within a reasonable time (as specified in regulations prescribed by, or under the authority of, the Commission) after the date of the transmittal by the agency to the employee of written notice of the adverse determination.
(b) Personal appearance 
The Board may authorize, in connection with an appeal pursuant to subsection (a) of this section, a personal appearance before the Board by the employee, or by a representative of the employee designated for that purpose.
(c) Consideration of evidence; decision 
After investigation and consideration of the evidence submitted, the Board shall
(1) prepare a written decision on the appeal;
(2) transmit its decision to the agency concerned; and
(3) transmit copies of the decision to the employee concerned or to the designated representative.
(d) Finality of decision 
The decision of the Board on any question or other matter relating to an appeal is final and conclusive. The agency concerned shall take action in accordance with the decision of the Board.

22 USC 3663 - Repealed. Pub. L. 105261, div. C, title XXXV, 3508(a), Oct. 17, 1998, 112 Stat. 2269

Section, Pub. L. 96–70, title I, § 1223, Sept. 27, 1979, 93 Stat. 467; Pub. L. 104–201, div. C, title XXXV, 3535, Sept. 23, 1996, 110 Stat. 2863, related to the Central Examining Office.

22 USC 3664 - Applicability of title 5

The following provisions of title 5 apply to the Panama Canal Commission:
(1) Part I of title 5 (relating to agencies generally).
(2) Chapter 21 (relating to employee definitions).
(3) Section 2302 (b)(8) (relating to whistleblower protection) and all provisions of title 5 relating to the administration or enforcement or any other aspect thereof, as identified in regulations prescribed by the Commission in consultation with the Office of Personnel Management.
(4) All provisions relating to preference eligibles.
(5) Section 5514 (relating to offset from salary).
(6) Section 5520a (relating to garnishments).
(7) Sections 5531–5535 (relating to dual pay and employment).
(8) Subchapter VI of chapter 55 (relating to accumulated and accrued leave).
(9) Subchapter IX of chapter 55 (relating to severance and back pay).
(10) Chapter 59 (relating to allowances).
(11) Repealed. Pub. L. 105–261, div. C, title XXXV, 3507(a), Oct. 17, 1998, 112 Stat. 2269.
(12) Section 6323 (relating to military leave; Reserves and National Guardsmen).
(13) Chapter 71 (relating to labor relations).
(14) Subchapters II and III of chapter 73 (relating to employment limitations and political activities, respectively) and all provisions of title 5 relating to the administration or enforcement or any other aspect thereof, as identified in regulations prescribed by the Commission in consultation with the Office of Personnel Management.
(15) Chapter 81 (relating to compensation for work injuries).
(16) Chapters 83 and 84 (relating to retirement).
(17) Chapter 85 (relating to unemployment compensation).
(18) Chapter 87 (relating to life insurance).
(19) Chapter 89 (relating to health insurance).

22 USC 3665 - Repealed. Pub. L. 10585, div. C, title XXXV, 3523(a)(3), Nov. 18, 1997, 111 Stat. 2065

Section, Pub. L. 96–70, title I, § 1225(b), Sept. 27, 1979, 93 Stat. 468, related to minimum pay level and minimum annual increases.

subpart iii - conditions of employment and placement

22 USC 3671 - Transferred or reemployed employees

(a) Terms and conditions of employment 

(1) With respect to any individual employed in the Panama Canal Company or the Canal Zone Government
(A) who is transferred
(i) to a position in the Commission; or
(ii) to a position in an Executive agency or in the Smithsonian Institution the permanent duty station of which is in the Republic of Panama (including the area known before October 1, 1979, as the Canal Zone); or
(B) who is separated by reason of a reduction in force on September 30, 1979, and is appointed to a position in the Commission before April 1, 1980;

the terms and conditions of employment set forth in paragraph (2) of this subsection shall be generally no less favorable, on or after the date of the transfer referred to in subparagraph (A) of this paragraph or the date of the appointment referred to in subparagraph (B) of this paragraph, as the case may be, than the terms and conditions of employment with the Panama Canal Company and Canal Zone Government on September 30, 1979, or, in the case of a transfer described in subparagraph (A)(ii) of this paragraph which takes place before that date, on the date of the transfer.

(2) The terms and conditions of employment referred to in paragraph (1) of this subsection are the following:
(A) , (B) Repealed. Pub. L. 105–261, div. C, title XXXV, 3507(a), Oct. 17, 1998, 112 Stat. 2269.
(C) premium pay and night differential;
(D) reinstatement and restoration rights;
(E) injury and death compensation benefits;
(F) to (H) Repealed. Pub. L. 105–261, div. C, title XXXV, 3507(a), Oct. 17, 1998, 112 Stat. 2269.
(I) reduction-in-force rights;
(J) an employee grievance system, and the right to appeal adverse and disciplinary actions and position classification actions;
(K) veterans preference eligibility;
(L) holidays;
(M) saved pay provisions; and
(N) severance pay benefits.
(b) Break in service 
Any individual described in subsection (a)(1)(B) of this section who would have met the service requirement for early retirement benefits under section 8336 (i) or 8339 (d)(2) of title 5 (as amended by sections 1241(a) and 1242 of this Act, respectively), but for a break in service of more than 3 days immediately after September 30, 1979, shall be considered to meet that requirement. Any break in service by any such individual for purposes of section 8332 of such title 5 during the period beginning September 30, 1979, and ending on the date of the appointment referred to in such subsection (a)(1)(B) of this section shall be considered a period of creditable service under such section 8332 for such individual, except that such period shall not be taken into account for purposes of determining average pay (as defined in section 8331(4) of such title 5) and no deduction, contribution, or deposit shall be required for that period under section 8334 of such title 5.
(c) Applicability of sections 903 (c) and 904 (a)(2) of title 20; sabbaticals 

(1) Section 903 (c) of title 20 shall not apply with respect to any teacher who was employed by the Canal Zone Government school system on September 30, 1979, and who was transferred from such position to a teaching position which is under the Department of Defense Overseas Dependent School System and the permanent duty station of which is in the Republic of Panama, until the rates of basic compensation established under section 903 (c) of title 20 equal or exceed the rates of basic compensation then in effect for teachers who were so transferred.
(2) Section 904 (a)(2) of title 20 shall not apply with respect to any teacher who was employed by the Canal Zone Government school system on September 30, 1979, and who was transferred from such position to a teaching position which is under the Department of Defense Overseas Dependent School System and the permanent duty station of which is in the Republic of Panama.
(3) 
(A) The head of a department or agency of the United States may grant a sabbatical to any teacher to whom paragraph (1) of this subsection applies for not to exceed 11 months in order to permit the teacher to engage in study or uncompensated work experience which is in the United States and which will contribute to the teachers development and effectiveness. Basic compensation shall be paid to teachers on sabbatical under this section in the same manner and to the same extent as basic compensation would have been paid to teachers on sabbatical while employed in the Canal Zone Government school system on September 30, 1979. A sabbatical shall not result in a loss of, or reduction in, leave to which the teacher is otherwise entitled, credit for time or service, or performance or efficiency rating. The head of the department or agency may authorize in accordance with chapter 57 of title 5 such travel expenses (including per diem allowance) as the head of the department or agency may determine to be essential for the study or experience.
(B) A sabbatical under this paragraph may not be granted to any teacher
(i) more than once in any 10-year period;
(ii) unless the teacher has completed 7 years of service as a teacher; and
(iii) if the teacher is eligible for voluntary retirement with a right to an immediate annuity.
(C) 
(i) Any teacher in a department or agency of the United States may be granted a sabbatical under this paragraph only if the teacher agrees, as a condition of accepting the sabbatical, to serve in the civil service upon the completion of the sabbatical for a period of two consecutive years.
(ii) Each agreement required under clause (i) of this subparagraph shall provide that in the event the teacher fails to carry out the agreement (except for good and sufficient reason as determined by the head of the department or agency that granted the sabbatical) the teacher shall be liable to the United States for payment of all expenses (including salary) of the sabbatical. The amount shall be treated as a debt due the United States.

22 USC 3672 - Placement

(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;

shall, upon the employees request, be accorded appropriate assistance for placement in vacant positions in the Government of the United States in the United States.

(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 employees 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.

22 USC 3673 - Transition separation incentive payments

(a) In applying to the Commission and employees of the Commission the provisions of section 663 of the Treasury, Postal Service, and General Government Appropriations Act, 1997 (as contained in section 101(f) of division A of Public Law 104208; 110 Stat. 3009–383), relating to voluntary separation incentives for employees of certain Federal agencies (in this section referred to as section 663)
(1) the term employee shall mean an employee of the Commission who has served in the Republic of Panama in a position with the Commission for a continuous period of at least three years immediately before the employees separation under an appointment without time limitation and who is covered under the Civil Service Retirement System or the Federal Employees Retirement System under subchapter III of chapter 83 or chapter 84, respectively, of title 5, other than
(A) an employee described in any of subparagraphs (A) through (F) of subsection (a)(2) of section 663; or
(B) an employee of the Commission who, during the 24-month period preceding the date of separation, has received a recruitment or relocation bonus under section 3657 (c) of this title or who, within the 12-month period preceding the date of separation, received a retention bonus under section 3657 (d) of this title;
(2) the strategic plan under subsection (b) of section 663 shall include (in lieu of the matter specified in subsection (b)(2) of that section)
(A) the positions to be affected, identified by occupational category and grade level;
(B) the number and amounts of separation incentive payments to be offered; and
(C) a description of how such incentive payments will facilitate the successful transfer of the Panama Canal to the Republic of Panama;
(3) a separation incentive payment under section 663 may be paid to a Commission employee only to the extent necessary to facilitate the successful transfer of the Panama Canal by the United States of America to the Republic of Panama as required by the Panama Canal Treaty of 1977;
(4) such a payment
(A) may be in an amount determined by the Commission not to exceed $25,000; and
(B) may be made (notwithstanding the limitation specified in subsection (c)(2)(D) of section 663) in the case of an eligible employee who voluntarily separates (whether by retirement or resignation) during the 90-day period beginning on November 18, 1997, or during the period beginning on October 1, 1998, and ending on December 31, 1998;
(5) in the case of not more than 15 employees who (as determined by the Commission) are unwilling to work for the Panama Canal Authority after the Canal Transfer Date and who occupy critical positions for which (as determined by the Commission) at least two years of experience is necessary to ensure that seasoned managers are in place on and after the Canal Transfer Date, such a payment (notwithstanding paragraph (4))
(A) may be in an amount determined by the Commission not to exceed 50 percent of the basic pay of the employee; and
(B) may be made (notwithstanding the limitation specified in subsection (c)(2)(D) of section 663) in the case of such an employee who voluntarily separates (whether by retirement or resignation) during the 90-day period beginning on November 18, 1997; and
(6) the provisions of subsection (f) of section 663 shall not apply.
(b) A decision by the Commission to exercise or to not exercise the authority to pay a transition separation incentive under this section shall not be subject to review under any statutory procedure or any agency or negotiated grievance procedure except under any of the laws referred to in section 2302 (d) of title 5.

subpart iv - retirement

22 USC 3681 - Retirement under special treaty provisions

(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 Republic 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 Government, or the Commission by reason of the implementation of any provision of the Panama Canal Treaty of 1977 and related agreements; 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, relating to creditable service for purposes of civil service retirement;
(B) is not eligible for an immediate retirement annuity under chapter 83 of title 5, relating to civil service retirement, and elects not to receive a deferred annuity under that chapter based on any portion of that service, and
(C) elects to withdraw from the Civil Service Retirement and Disability Fund the individuals entire lump-sum credit (as defined in section 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 System of the Republic of Panama with respect to any individual under subsection (a) of this section shall not exceed the individuals entire lump-sum credit (as so defined).
(c) Purchase of nontransferable deferred annuity; 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 President, or the Presidents designee, shall purchase from a source determined by the President to be appropriate, in accordance with such regulations as the President or the Presidents designee 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 agency or instrumentality of the Government of the United States at any permanent duty station 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 system or any other Federal retirement system providing benefits similar to those retirement benefits provided by the Social Security System of the Republic of Panama; and
(D) who, on October 1, 1979, is under a Federal 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 retirement 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 service accrued by the employee; or
(iii) consists of any combination of service described in clauses (i) and (ii) of this subparagraph.
(2) The retirement annuity referred to in paragraph (1) of this subsection with respect to any employee will cover retroactively, from October 1, 1979, all periods of service, described in subparagraph (D) of that paragraph, by that employee at any permanent duty station in the Republic of Panama (including the area known before 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 retirement system providing benefits similar to those retirement benefits provided by the Social Security System of the Republic of Panama.

22 USC 3682 - Administration of certain disability benefits

(a) Continuation of cash relief payments to employees 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 Commission, under the Act entitled An Act authorizing 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 continue the payments of cash relief to those individual former employees of the Canal Zone Government 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 disability resulting from age or disease.
(2) Subject to subsection (b) of this section, cash relief under this subsection may not exceed $1.50 per month for each year of service of the employees so furnished 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 October 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 subsection (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 limitations contained therein.
(c) Increases in cash relief payments 
Each cash relief payment made pursuant to this section shall be increased on the same effective 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 increased 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) of this section. The term widow as used in this subsection includes only the following:
(1) a woman legally married to such employee at the time of his termination for disability and at his death;
(2) a woman who, although not legally married to such former employee at the time of his termination, had resided continuously with him for at least five years immediately preceding the employees 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 assumed 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 section.

22 USC 3683 - Repealed. Pub. L. 104201, div. C, title XXXV, 3546(a)(6), Sept. 23, 1996, 110 Stat. 2868

Section, Pub. L. 96–70, title I, § 1246, Sept. 27, 1979, 93 Stat. 476; Pub. L. 100–203, title V, § 5428(a), Dec. 22, 1987, 101 Stat. 1330–274, authorized Commission to purchase artificial limbs or other appliances for persons who were injured in service of Isthmian Canal Commission or of Panama Canal before Sept. 7, 1916.

subpart v - application to related personnel

22 USC 3691 - Individuals considered employees

(a) Individuals considered employees for purposes of certain sections 
For the purposes of sections 3646,1 3671, and 3672 of this title, including any amendment made by sections 1231, 1241, and 1242 of this Act, the United States Attorney for the District of the Canal Zone and the Assistant United States Attorneys and their clerical assistants, and the United States Marshal for the District of the Canal Zone and his deputies and clerical assistants shall be considered employees of the Commission.
(b) Individuals considered employees for certain purposes 
For the purposes of this Act, including any amendment made by this Act, the Executive Director of the Canal Zone Civilian Personnel Policy Coordinating Board, the Manager, Central Examining Office, and their staffs shall be considered to have been employees of the Panama Canal Company with respect to service in those positions before October 1, 1979, and as employees of the Commission with respect to service in those positions on or after that date.
[1] See References in Text note below.

subpart vi - labor-management relations

22 USC 3701 - Labor-management relations

(a) Applicability of chapter 71 of title 5 
Nothing in this chapter shall be construed to affect the applicability of chapter 71 of title 5, relating to labor-management and employee relations, with respect to the Commission or the operations of any other Executive agency conducted in that area of the Republic of Panama which, on September 30, 1979, was the Canal Zone, except that in applying those provisions
(1) the definition of employee shall be applied without regard to clause (i) of section 7103(a)(2) of such title 5 which relates to nationality and citizenship;
(2) a unit shall be considered to be appropriate notwithstanding the fact that it includes any supervisor if that supervisors position (or type of position) was, before October 1, 1979, represented before the Panama Canal Company by a labor organization that included employees who were not supervisors; and
(3) any negotiated grievance procedures under section 7121 of title 5, including any provisions relating to binding arbitration, shall, with respect to any personnel action to which subchapter II of chapter 75 of such title applies (as determined under section 7512 of such title), be available to the same extent and in the same manner as if employees of the Panama Canal Commission were not excluded from such subchapter under section 7511(b)(8) of such title.
(b) United States laws applicable 
Labor-management and employee relations of the Commission, other Executive agencies, and the Smithsonian Institution, their employees, and organizations of those employees, in connection with operations conducted in that area of the Republic of Panama which, on September 30, 1979, was the Canal Zone, shall be governed and regulated solely by the applicable laws, rules, and regulations of the United States.
(c) Resolution of collective bargaining impasses 

(1) This subsection applies to any matter that becomes the subject of collective bargaining between the Commission and the exclusive representative for any bargaining unit of employees of the Commission during the period beginning on November 18, 1997, and ending on the Canal Transfer Date.
(2) 
(A) The resolution of impasses resulting from collective bargaining between the Commission and any such exclusive representative during that period shall be conducted in accordance with such procedures as may be mutually agreed upon between the Commission and the exclusive representative (without regard to any otherwise applicable provisions of chapter 71 of title 5). Such mutually agreed upon procedures shall become effective upon transmittal by the Chairman of the Supervisory Board of the Commission to the Congress of notice of the agreement to use those procedures and a description of those procedures.
(B) The Federal Services Impasses Panel shall not have jurisdiction to resolve any impasse between the Commission and any such exclusive representative in negotiations over a procedure for resolving impasses.
(3) If the Commission and such an exclusive representative do not reach an agreement concerning a procedure for resolving impasses with respect to a bargaining unit and transmit notice of the agreement under paragraph (2) on or before July 1, 1998, the following shall be the procedure by which collective bargaining impasses between the Commission and the exclusive representative for that bargaining unit shall be resolved:
(A) If bargaining efforts do not result in an agreement, either party may timely request the Federal Mediation and Conciliation Service to assist in achieving an agreement.
(B) If an agreement is not reached within 45 days after the date on which either party requests the assistance of the Federal Mediation and Conciliation Service in writing (or within such shorter period as may be mutually agreed upon by the parties), the parties shall be considered to be at an impasse and the Federal Mediation and Conciliation Service shall immediately notify the Federal Services Impasses Panel of the Federal Labor Relations Authority, which shall decide the impasse.
(C) If the Federal Services Impasses Panel fails to issue a decision within 90 days after the date on which notice under subparagraph (B) is received by the Panel (or within such shorter period as may be mutually agreed upon by the parties), the efforts of the Panel shall be terminated.
(D) In such a case, the Chairman of the Panel (or another member in the absence of the Chairman) shall immediately determine the matter by a drawing (conducted in such manner as the Chairman (or, in the absence of the Chairman, such other member) determines appropriate) between the last offer of the Commission and the last offer of the exclusive representative, with the offer chosen through such drawing becoming the binding resolution of the matter.
(4) In the case of a notice of agreement described in paragraph (2)(A) that is transmitted to the Congress as described in the second sentence of that paragraph after July 1, 1998, the impasse resolution procedures covered by that notice shall apply to any impasse between the Commission and the other party to the agreement that is unresolved on the date on which that notice is transmitted to the Congress.