Deductions From Retirement Pay for Members Employed by a Foreign Government

As required by the Foreign Relations Authorization Act of 1978, a retired Air Force officer secured approval in October 1977 from the Secretary of State and the Secretary of the Air Force for his employment by the Saudi Arabian government. He began his employment in October 1976, and in November 1976 payment of his retired pay was stopped. The question was raised as to the time deductions from retired pay will cease if a member was employed by a foreign government prior to receiving approval from the Secretary concerned and from the Secretary of State. On the theory that emoluments received by a retired member are received on behalf of the United States, the Constitution of the United States is interpreted as prohibiting retired regular officers of the uniformed services from accepting employment from foreign governments without the consent of Congress. With the enactment of the Foreign Relations Authorization Act of 1978, Congress granted consent to such employment and compensation therefore if the approval of the Secretary of State and the Secretary concerned are secured by the individual seeking such employment. The provisions under the Act have no retroactive effect with respect to retirees employed by foreign governments prior to enactment or with respect to retirees who may enter employment prior to receiving secretarial approvals. An individual who is employed by a foreign government prior to or at the time of enactment of the Act, and who receives approval of his employment, becomes entitled to retired pay once the approval is granted, and the individual is not required to make further payments because of his foreign employment. Accordingly, the retired Air Force officer became entitled to receive his retired pay starting on the date he received the required approvals, notwithstanding the fact that the retired pay withheld did not equal the amount received from the foreign government prior to the granting of the approval.