53 STAT.] 76TH CONG., 1ST SESS.-CH. 545 -AUG. 7, 1939 "The average annual basic salary, pay, or compensation, not to exceed $2,000 per annum, received by the employee during any five consecutive years of allowable service at the option of the employee, multiplied by the number of years of service used in computing the annuity under paragraph (1) hereof, and divided by forty, and the average annual basic salary, pay, or compensation, not to exceed $1,600 per annum, received by the employee during any five consecu- tive years of allowable service at the option of the employee, multi- plied by the number of years of service used in computing the annuity under paragraph (3) hereof, and divided by forty. "The annuity granted under paragraphs (1), (3), and (4) of this section shall not exceed three-fourths of the average annual basic salary, pay, or compensation received by the employee during any five consecutive years of allowable service at the option of the employee. "Any employee at the time of his retirement may elect to receive, in lieu of the life annuity herein described, an increased annuity of equivalent value which shall carry with it a proviso that no unex- pended part of the principal upon the annuitant's death shall be returned. For the purposes of this Act all periods of service shall be computed in accordance with section 7 hereof, and the annuity shall be fixed at the nearest multiple of twelve. "The term 'basic salary, pay, or compensation', wherever used in this Act, shall be so construed as to exclude from the operation of the Act all bonuses, allowances, overtime pay, or salary, pay, or compen- sation given in addition to the base pay of the position as fixed by law or regulation. "SEC. 7. Subject to the provisions of section 8, hereof, the service which shall form the basis for calculating the amount of any benefit provided in this Act shall be computed from the date of original employment, whether as a classified or an unclassified employee in the civil service of the United States or under the municipal government of the District of Columbia, including periods of service at different times and in one or more departments, branches, or independent offices of the Government and service in Alaska with the Alaskan Engineer- ing Commission and the Alaska Railroad, or of either of them, and service on the Isthmus of Panama with the Isthmian Canal Comrnis- sion, the Panlama Canal, or the lPnaIma Rtailroad Company; also periods of service performed overseas under authority of the United States and periods of honorable service in the Army, Navy, Marine Corps or Coast Guard of the United States. In the case of an employee, however, who is eligible for and elects to receive a pension under any law, or retired pay on account of military or naval service, or compensation under the War Risk Insurance Act, the period of his military or naval service upon which such pension, retired pay, or compensation is based shall not be included, but nothing in this Act shall be so construed as to affect in any manner his right to a pension, or to retired pay, or to compensation under the War Risk Insurance Act in addition to the annuity herein provided. "In computing length of service for the purposes of this Act all periods of separations from the service, and so much of any leave of absence without pay as may exceed six months in the aggregate in any calendar year, shall be excluded: Provided, That river-boat employees, who in the past have been, or in the future may be, employed during the navigation season under a working agreement, shall for the purpose of this Act be considered in a leave-of-absence- without-pay status for the time prior and subsequent to the season of navigation during the calendar year in which employed. 1247 Method of compu. tation. Annuity limited to three-fourths of aver- ageannualsalary, pay, etc. Increased annuity at employee's option. Computation of pe- riods of service. "Basic salary, pay, or compensation". bonuses, etc., excluded. Accredited service. Periods included. (Oersrea service, ctc. Deduction of peri- ods for which military, etc., pension based. Periods of separa- tions, etc., excluded. Proviso. River-boat employ- ees engaged during navigation season.