Collapse to view only § 8339. Computation of annuity
- § 8331. Definitions
- § 8332. Creditable service
- § 8333. Eligibility for annuity
- § 8334. Deductions, contributions, and deposits
- § 8335. Mandatory separation
- § 8336. Immediate retirement
- § 8336a. Phased retirement
- § 8337. Disability retirement
- § 8338. Deferred retirement
- § 8339. Computation of annuity
- § 8340. Cost-of-living adjustment of annuities
- § 8341. Survivor annuities
- § 8342. Lump-sum benefits; designation of beneficiary; order of precedence
- § 8343. Additional annuities; voluntary contributions
- § 8343a. Alternative forms of annuities
- § 8344. Annuities and pay on reemployment
- § 8345. Payment of benefits; commencement, termination, and waiver of annuity
- § 8345a. Embezzlement or conversion of payments
- § 8346. Exemption from legal process; recovery of payments
- § 8347. Administration; regulations
- § 8348. Civil Service Retirement and Disability Fund
- § 8349. Offset relating to certain benefits under the Social Security Act
- § 8350. Retirement counseling
- § 8351. Participation in the Thrift Savings Plan
§ 8331. DefinitionsFor the purpose of this subchapter—
(1) “employee” means—
(A) an employee as defined by section 2105 of this title;
(B) the Architect of the Capitol, an employee of the Architect of the Capitol, and an employee of the Botanic Garden;
(C) a Congressional employee as defined by section 2107 of this title (other than the Architect of the Capitol, an employee of the Architect of the Capitol, and an employee of the Botanic Garden), after he gives notice in writing to the official by whom he is paid of his desire to become subject to this subchapter;
(D) a temporary Congressional employee appointed at an annual rate of pay, after he gives notice in writing to the official by whom he is paid of his desire to become subject to this subchapter;
(E) a United States Commissioner whose total pay for services performed as Commissioner is not less than $3,000 in each of the last 3 consecutive calendar years ending after December 31, 1954;
(F) an individual employed by a county committee established under section 590h(b) of title 16;
(G) an individual first employed by the government of the District of Columbia before October 1, 1987;
(H) an individual employed by Gallaudet College;
(I) an individual appointed to a position on the office staff of a former President under section 1(b) of the Act of August 25, 1958 (72 Stat. 838);
(J) an alien (i) who was previously employed by the Government, (ii) who is employed full time by a foreign government for the purpose of protecting or furthering the interests of the United States during an interruption of diplomatic or consular relations, and (iii) for whose services reimbursement is made to the foreign government by the United States;
(K) an individual appointed to a position on the office staff of a former President, or a former Vice President under section 5 of the Presidential Transition Act of 1963, as amended (78 Stat. 153), who immediately before the date of such appointment was an employee as defined under any other subparagraph of this paragraph; and
(L) an employee described in section 2105(c) who has made an election under section 8347(q)(1) to remain covered under this subchapter;
but does not include—
(i) a justice or judge of the United States as defined by section 451 of title 28;
(ii) an employee subject to another retirement system for Government employees (besides any employee excluded by clause (x), but including any employee who has made an election under section 8347(q)(2) to remain covered by a retirement system established for employees described in section 2105(c));
(iii) an employee or group of employees in or under an Executive agency excluded by the Office of Personnel Management under section 8347(g) of this title;
(iv) an individual or group of individuals employed by the government of the District of Columbia excluded by the Office under section 8347(h) of this title;
(v) an employee of the Administrative Office of the United States Courts, the Federal Judicial Center, or a court named by section 610 of title 28, excluded by the Director of the Administrative Office under section 8347(o) of this title;
(vi) a construction employee or other temporary, part-time, or intermittent employee of the Tennessee Valley Authority;
(vii) an employee under the Office of the Architect of the Capitol excluded by the Architect of the Capitol under section 8347(i) of this title;
(viii) an employee under the Library of Congress excluded by the Librarian of Congress under section 8347(j) of this title;
(ix) a student-employee as defined by section 5351 of this title;
(x) an employee subject to the Federal Employees’ Retirement System;
(xi) an employee under the Botanic Garden excluded by the Director or Acting Director of the Botanic Garden under section 8347(l) of this title; or
(xii) a member of the Foreign Service (as described in section 103(6) of the Foreign Service Act of 1980), appointed after December 31, 1987.
Notwithstanding this paragraph, the employment of a teacher in the recess period between two school years in a position other than a teaching position in which he served immediately before the recess period does not qualify the individual as an employee for the purpose of this subchapter. For the purpose of the preceding sentence, “teacher” and “teaching position” have the meanings given them by section 901 of title 20;
(2) “Member” means a Member of Congress as defined by section 2106 of this title, after he gives notice in writing to the official by whom he is paid of his desire to become subject to this subchapter, but does not include any such Member of Congress who is subject to the Federal Employees’ Retirement System or who makes an election under section 8401(20) of this title not to be subject to such System;
(3) “basic pay” includes—
(A) the amount a Member received from April 1, 1954, to February 28, 1955, as expense allowance under section 601(b) of the Legislative Reorganization Act of 1946 (60 Stat. 850), as amended; and that amount from January 3, 1953, to March 31, 1954, if deposit is made therefor as provided by section 8334 of this title;
(B) additional pay provided by—
(i) subsection (a) of section 60e–7 of title 2 and the provisions of law referred to by that subsection; and
(ii) sections 60e–8, 60e–9, 60e–10, 60e–11, 60e–12, 60e–13, and 60e–14 of title 2;
(C) premium pay under section 5545(c)(1) of this title;
(D) with respect to a law enforcement officer, premium pay under section 5545(c)(2) of this title;
(E) availability pay—
(i) received by a criminal investigator under section 5545a of this title; or
(ii) received after September 11, 2001, by a Federal air marshal or criminal investigator (as defined in section 5545a(a)(2)) of the Transportation Security Administration, subject to all restrictions and earning limitations imposed on criminal investigators receiving such pay under section 5545a, including the premium pay limitations under section 5547;
(F) pay as provided in section 5545b(b)(2) and (c)(2);
(G) with respect to a customs officer (referred to in subsection (e)(1) of section 5 of the Act of February 13, 1911), compensation for overtime inspectional services provided for under subsection (a) of such section 5, but not to exceed 50 percent of any statutory maximum in overtime pay for customs officers which is in effect for the year involved;
(H) any amount received under section 5948 (relating to physicians comparability allowances); and
(I) with respect to a border patrol agent, the amount of supplemental pay received through application of the level 1 border patrol rate of pay or the level 2 border patrol rate of pay for scheduled overtime within the regular tour of duty of the border patrol agent as provided in section 5550;
but does not include bonuses, allowances, overtime pay, military pay, pay given in addition to the base pay of the position as fixed by law or regulation except as provided by subparagraphs (B) through (I) of this paragraph 1
1 So in original. Probably should be followed by a comma.
retroactive pay under section 5344 of this title in the case of a retired or deceased employee, uniform allowances under section 5901 of this title, or lump-sum leave payments under subchapter VI of chapter 55 of this title. For an employee paid on a fee basis, the maximum amount of basic pay which may be used is $10,000;(4) “average pay” means the largest annual rate resulting from averaging an employee’s or Member’s rates of basic pay in effect over any 3 consecutive years of creditable service or, in the case of an annuity under subsection (d) or (e)(1) of section 8341 of this title based on service of less than 3 years, over the total service, with each rate weighted by the time it was in effect;
(5) “Fund” means the Civil Service Retirement and Disability Fund;
[(6) Repealed. Pub. L. 96–499, title IV, § 403(b), Dec. 5, 1980, 94 Stat. 2606;]
(7) “Government” means the Government of the United States, the government of the District of Columbia, Gallaudet University, and, in the case of an employee described in paragraph (1)(L), a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard described in section 2105(c);
(8) “lump-sum credit” means the unrefunded amount consisting of—
(A) retirement deductions made from the basic pay of an employee or Member;
(B) amounts deposited by an employee or Member covering earlier service, including any amounts deposited under section 8334(j) of this title; and
(C) interest on the deductions and deposits at 4 percent a year to December 31, 1947, and 3 percent a year thereafter compounded annually to December 31, 1956, or, in the case of an employee or Member separated or transferred to a position in which he does not continue subject to this subchapter before he has completed 5 years of civilian service, to the date of the separation or transfer;
but does not include interest—
(i) if the service covered thereby aggregates 1 year or less; or
(ii) for the fractional part of a month in the total service;
(9) “annuitant” means a former employee or Member who, on the basis of his service, meets all requirements of this subchapter for title to annuity and files claim therefor;
(10) “survivor” means an individual entitled to annuity under this subchapter based on the service of a deceased employee, Member, or annuitant;
(11) “survivor annuitant” means a survivor who files claim for annuity;
(12) “service” means employment creditable under section 8332 of this title;
(13) “military service” means honorable active service—
(A) in the armed forces;
(B) in the Regular or Reserve Corps 2
2 See Change of Name note below.
of the Public Health Service after June 30, 1960; or(C) as a commissioned officer of the Environmental Science Services Administration after June 30, 1961;
and includes service as a cadet at the United States Military Academy, the United States Air Force Academy, or the United States Coast Guard Academy, or as a midshipman at the United States Naval Academy, but does not include service in the National Guard except when ordered to active duty in the service of the United States or full-time National Guard duty (as such term is defined in section 101(d) of title 10) if such service interrupts creditable civilian service under this subchapter and is followed by reemployment in accordance with chapter 43 of title 38 that occurs on or after August 1, 1990;
(14) “Member service” means service as a Member and includes the period from the date of the beginning of the term for which elected or appointed to the date on which he takes office as a Member;
(15) “price index” means the Consumer Price Index (all items—United States city average) published monthly by the Bureau of Labor Statistics;
(16) “base month” means the month for which the price index showed a percent rise forming the basis for a cost-of-living annuity increase;
(17) “normal-cost percentage” means the entry-age normal cost computed by the Office of Personnel Management in accordance with generally accepted actuarial practice and standards (using dynamic assumptions) and expressed as a level percentage of aggregate basic pay;
(18) “Fund balance” means the current net assets of the Fund available for payment of benefits, as determined by the Office in accordance with appropriate accounting standards, but does not include any amount attributable to—
(A) the Federal Employees’ Retirement System; or
(B) contributions made under the Federal Employees’ Retirement Contribution Temporary Adjustment Act of 1983 by or on behalf of any individual who became subject to the Federal Employees’ Retirement System;
(19) “unfunded liability” means the estimated excess of the present value of all benefits payable from the Fund to employees and Members, and former employees and Members, subject to this subchapter, and to their survivors, over the sum of—
(A) the present value of deductions to be withheld from the future basic pay of employees and Members currently subject to this subchapter and of future agency contributions to be made in their behalf; plus
(B) the present value of Government payments to the Fund under section 8348(f) of this title; plus
(C) the Fund balance as of the date the unfunded liability is determined;
(20) “law enforcement officer” means an employee, the duties of whose position are primarily the investigation, apprehension, or detention of individuals suspected or convicted of offenses against the criminal laws of the United States, including an employee engaged in this activity who is transferred to a supervisory or administrative position. For the purpose of this paragraph, “detention” includes the duties of—
(A) employees of the Bureau of Prisons and Federal Prison Industries, Incorporated;
(B) employees of the Public Health Service assigned to the field service of the Bureau of Prisons or of the Federal Prison Industries, Incorporated;
(C) employees in the field service at Army or Navy disciplinary barracks or at confinement and rehabilitation facilities operated by any of the armed forces; and
(D) employees of the Department of Corrections of the District of Columbia, its industries and utilities;
whose duties in connection with individuals in detention suspected or convicted of offenses against the criminal laws of the United States or of the District of Columbia or offenses against the punitive articles of the Uniformed Code of Military Justice (chapter 47 of title 10) require frequent (as determined by the appropriate administrative authority with the concurrence of the Office) direct contact with these individuals in their detention, direction, supervision, inspection, training, employment, care, transportation, or rehabilitation;
(21) “firefighter” means an employee, the duties of whose position are primarily to perform work directly connected with the control and extinguishment of fires or the maintenance and use of firefighting apparatus and equipment, including an employee engaged in this activity who is transferred to a supervisory or administrative position;
(22) “bankruptcy judge” means an individual—
(A) who is appointed under section 34 of the Bankruptcy Act (11 U.S.C. 62) or under section 404(d) of the Act of November 6, 1978 (Public Law 95–598; 92 Stat. 2549), and—
(i) who is serving as a United States bankruptcy judge on March 31, 1984; or
(ii) whose service as a United States bankruptcy judge at any time in the period beginning on October 1, 1979, and ending on July 10, 1984, is terminated by reason of death or disability; or
(B) who is appointed as a bankruptcy judge under section 152 of title 28;
(23) “former spouse” means a former spouse of an individual—
(A) if such individual performed at least 18 months of civilian service covered under this subchapter as an employee or Member, and
(B) if the former spouse was married to such individual for at least 9 months;
(24) “Indian court” means an Indian court as defined by section 201(3) of the Act entitled “An Act to prescribe penalties for certain acts of violence or intimidation, and for other purposes”, approved April 11, 1968 (25 U.S.C. 1301(3); 82 Stat. 77);
(25) “magistrate judge” or “United States magistrate judge” means an individual appointed under section 631 of title 28;
(26) “Court of Federal Claims judge” means a judge of the United States Court of Federal Claims who is appointed under chapter 7 of title 28 or who has served under section 167 of the Federal Courts Improvement Act of 1982;
(27) “Nuclear materials courier”—
(A) means an employee of the Department of Energy, the duties of whose position are primarily to transport, and provide armed escort and protection during transit of, nuclear weapons, nuclear weapon components, strategic quantities of special nuclear materials or other materials related to national security; and
(B) includes an employee who is transferred directly to a supervisory or administrative position within the same Department of Energy organization, after performing duties referred to in subparagraph (A) for at least 3 years;
(28) “Government physician” has the meaning given that term under section 5948;
(29) “dynamic assumptions” means economic assumptions that are used in determining actuarial costs and liabilities of a retirement system and in anticipating the effects of long-term future—
(A) investment yields;
(B) increases in rates of basic pay; and
(C) rates of price inflation;
(30) the term “air traffic controller” or “controller” means—
(A) a controller within the meaning of section 2109(1); and
(B) a civilian employee of the Department of Transportation or the Department of Defense who is the immediate supervisor of a person described in section 2109(1)(B);
(31) “customs and border protection officer” means an employee in the Department of Homeland Security (A) who holds a position within the GS–1895 job series (determined applying the criteria in effect as of September 1, 2007) or any successor position, and (B) whose duties include activities relating to the arrival and departure of persons, conveyances, and merchandise at ports of entry, including any such employee who is transferred directly to a supervisory or administrative position in the Department of Homeland Security after performing such duties (as described in subparagraph (B)) in 1 or more positions (as described in subparagraph (A)) for at least 3 years;
(32) “Director” means the Director of the Office of Personnel Management; and
(33) “representative payee” means a person (including an organization) designated under section 8345(e)(1) to receive payments on behalf of a minor or an individual mentally incompetent or under other legal disability.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 564; Pub. L. 89–737, § 1(2), Nov. 2, 1966, 80 Stat. 1164; Pub. L. 90–83, § 1(72), Sept. 11, 1967, 81 Stat. 213; Pub. L. 90–623, § 1(21), Oct. 22, 1968, 82 Stat. 1313; Pub. L. 91–93, title I, § 101, title II, § 201(a), Oct. 20, 1969, 83 Stat. 136, 138; Pub. L. 92–352, title I, § 105(a), July 13, 1972, 86 Stat. 490; Pub. L. 93–350, § 2, July 12, 1974, 88 Stat. 355; Pub. L. 94–183, § 2(38), Dec. 31, 1975, 89 Stat. 1058; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 95–598, title III, § 338(e), Nov. 6, 1978, 92 Stat. 2681; Pub. L. 96–54, § 2(a)(47), Aug. 14, 1979, 93 Stat. 384; Pub. L. 96–499, title IV, § 403(b), Dec. 5, 1980, 94 Stat. 2606; Pub. L. 97–253, title III, § 306(a), Sept. 8, 1982, 96 Stat. 795; Pub. L. 98–249, § 3(b), Mar. 31, 1984, 98 Stat. 117; Pub. L. 98–271, § 3(b), Apr. 30, 1984, 98 Stat. 163; Pub. L. 98–299, § 3(b), May 25, 1984, 98 Stat. 214; Pub. L. 98–325, § 3(b), June 20, 1984, 98 Stat. 268; Pub. L. 98–353, title I, §§ 116(a), 121(g), July 10, 1984, 98 Stat. 343, 346; Pub. L. 98–531, § 2(a), Oct. 19, 1984, 98 Stat. 2704; Pub. L. 98–615, § 2(1), Nov. 8, 1984, 98 Stat. 3195; Pub. L. 99–335, title II, §§ 202, 207(f), June 6, 1986, 100 Stat. 591, 595; Pub. L. 100–53, § 2(a), June 18, 1987, 101 Stat. 367; Pub. L. 100–238, title I, §§ 112, 123, Jan. 8, 1988, 101 Stat. 1750, 1754; Pub. L. 100–679, § 13(a)(1), Nov. 17, 1988, 102 Stat. 4071; Pub. L. 101–474, § 5(m), Oct. 30, 1990, 104 Stat. 1100;
§ 8332. Creditable service
(a) The total service of an employee or Member is the full years and twelfth parts thereof, excluding from the aggregate the fractional part of a month, if any.
(b) The service of an employee shall be credited from the date of original employment to the date of separation on which title to annuity is based in the civilian service of the Government. Except as provided in paragraph (13) 1
1 So in original. Probably should be paragraph “(14)”.
of this subsection, credit may not be allowed for a period of separation from the service in excess of 3 calendar days. The service includes—(1) employment as a substitute in the postal field service;
(2) service in the Pan American Sanitary Bureau;
(3) subject to sections 8334(c) and 8339(i) of this title, service performed before July 10, 1960, as an employee of a county committee established under section 590h(b) of title 16 or of a committee or an association of producers described by section 610(b) of title 7;
(4) service as a student-employee as defined by section 5351 of this title only if he later becomes subject to this subchapter;
(5) a period of satisfactory service of a volunteer or volunteer leader under chapter 34 of title 22 only if he later becomes subject to this subchapter;
(6) employment under section 709 of title 32 or any prior corresponding provision of law;
(7) a period of service of a volunteer under part A of title VIII of the Economic Opportunity Act of 1964, or a period of service of a full-time volunteer enrolled in a program of at least one year’s duration under part A, B,2
2 See References in Text note below.
or C of title I of the Domestic Volunteer Service Act of 1973 only if he later becomes subject to this subchapter;(8) subject to sections 8334(c) and 8339(i) of this title, service performed after February 18, 1929, and before noon on January 3, 1971, as a United States Capitol Guide;
(9) subject to sections 8334(c) and 8339(i) of this title, service as a substitute teacher for the government of the District of Columbia after July 1, 1955, if such service is not credited for benefits under any other retirement system established by a law of the United States;
(10) periods of imprisonment of a foreign national for which compensation is provided under section 410 of the Foreign Service Act of 1980, if the individual (A) was subject to this subchapter during employment with the Government last preceding imprisonment, or (B) is qualified for an annuity under this subchapter on the basis of other service of the individual;
(11) subject to sections 8334(c) and 8339(i) of this title, service in any capacity of at least 130 days (or its equivalent) per calendar year performed after July 1, 1946, for the National Committee for a Free Europe; Free Europe Committee, Incorporated; Free Europe, Incorporated; Radio Liberation Committee; Radio Liberty Committee; subdivisions of any of those organizations; Radio Free Europe/Radio Liberty, Incorporated, Radio Free Asia; the Asia Foundation; or the Armed Forces Network, Europe (AFN–E), but only if such service is not credited for benefits under any other retirement system which is established for such entities and funded in whole or in part by the Government and only if the individual later becomes subject to this subchapter;
(12) service as a justice or judge of the United States, as defined by section 451 of title 28, and service as a judge of a court created by Act of Congress in a territory which is invested with any jurisdiction of a district court of the United States, but no credit shall be allowed for such service if the employee is entitled to a salary or an annuity under section 371, 372, or 373 of title 28;
(13) subject to sections 8334(c) and 8339(i) of this title, service performed on or after December 6, 1967, and before the effective date of this paragraph as an employee of the House Beauty Shop, only if he serves as such an employee for a period of at least five years after such effective date;
(14) one year of service to be credited for each year in which a Native of the Pribilof Islands performs service in the taking and curing of fur seal skins and other activities in connection with the administration of the Pribilof Islands, notwithstanding any period of separation from the service, and regardless of whether the Native who performs the service retires before, on, or after the effective date of this paragraph;
(15) subject to sections 8334(c) and 8339(i) of this title, service performed on or after January 3, 1969, and before January 4, 1973, as the Washington Representative for Guam or the Washington Representative for the Virgin Islands, only if the individual serves as a Member for a period of at least five years after January 2, 1973;
(16) service performed by any individual as an employee described in section 2105(c) of this title after June 18, 1952, and before January 1, 1966, if (A) such service involved conducting an arts and crafts, drama, music, library, service club, youth activities, sports, or recreation program (including any outdoor recreation program) for personnel of the armed forces, and (B) such individual is an employee subject to this subchapter on the day before the date of the enactment of the Nonappropriated Fund Instrumentalities Employees’ Retirement Credit Act of 1986; and
(17) service performed by any individual as an employee paid from nonappropriated funds of an instrumentality of the Department of Defense or the Coast Guard described in section 2105(c) that is not covered by paragraph (16) and that is not otherwise creditable, if the individual elects (in accordance with regulations prescribed by the Office) to have such service credited under this paragraph.
The Office of Personnel Management shall accept the certification of the Secretary of Agriculture or his designee concerning service for the purpose of this subchapter of the type performed by an employee named by paragraph (3) of this subsection. The Office of Personnel Management shall accept the certification of the Secretary of Commerce or his designee concerning service for the purpose of this subchapter of the type performed by an employee named by paragraph (14) of this subsection. The Office of Personnel Management shall accept the certification of the Capitol Guide Board concerning service for the purpose of this subchapter of the type described in paragraph (8) of this subsection and performed by an employee. The Office of Personnel Management shall accept the certification of the Chief Administrative Officer of the House of Representatives concerning service for the purpose of this subchapter of the type described in paragraph (13) of this subsection. For the purpose of paragraph (5) of this subsection—
(A) a volunteer and a volunteer leader are deemed receiving pay during their service at the respective rates of readjustment allowances payable under sections 2504(c) and 2505(1) of title 22; and
(B) the period of an individual’s service as a volunteer or volunteer leader under chapter 34 of title 22 is the period between enrollment as a volunteer or volunteer leader and the termination of that service by the President or by death or resignation.
The Office of Personnel Management shall accept the certification of the Executive Director of the Board for International Broadcasting, and the Secretary of State with respect to the Asia Foundation and the Secretary of Defense with respect to the Armed Forces Network, Europe (AFN–E), concerning services for the purposes of this subchapter of the type described in paragraph (11) of this subsection. For the purpose of this subchapter, service of the type described in paragraph (15) of this subsection shall be considered Member service. The Office of Personnel Management shall accept, for the purposes of this subchapter, the certification of the head of a nonappropriated fund instrumentality of the United States concerning service of the type described in paragraph (16) or (17) of this subsection which was performed for such appropriated fund instrumentality. Service credited under paragraph (17) may not also be credited under any other retirement system provided for employees paid from nonappropriated funds of a nonappropriated fund instrumentality.
(c)
(1) Except as provided in paragraphs (2) and (4) of this subsection and subsection (d) of this section—
(A) the service of an individual who first becomes an employee or Member before October 1, 1982, shall include credit for each period of military service performed before the date of the separation on which the entitlement to an annuity under this subchapter is based, subject to section 8332(j) of this title; and
(B) the service of an individual who first becomes an employee or Member on or after October 1, 1982, shall include credit for—
(i) each period of military service performed before January 1, 1957, and
(ii) each period of military service performed after December 31, 1956, and before the separation on which the entitlement to annuity under this subchapter is based, only if a deposit (with interest, if any) is made with respect to that period, as provided in section 8334(j) of this title.
(2) If an employee or Member is awarded retired pay based on any period of military service, the service of the employee or Member may not include credit for such period of military service unless the retired pay is awarded—
(A) based on a service-connected disability—
(i) incurred in combat with an enemy of the United States; or
(ii) caused by an instrumentality of war and incurred in line of duty during a period of war as defined by section 1101 of title 38; or
(B) under chapter 1223 of title 10 (or under chapter 67 of that title as in effect before the effective date of the Reserve Officer Personnel Management Act).
(3)
(A) Notwithstanding paragraph (2) of this subsection, for purposes of computing a survivor annuity for a survivor of an employee or Member—
(i) who was awarded retired pay based on any period of military service, and
(ii) whose death occurs before separation from the service,
creditable service of the deceased employee or Member shall include each period of military service includable under subparagraph (A) or (B) of paragraph (1) of this subsection, as applicable. In carrying out this subparagraph, any amount deposited under section 8334(h) of this title shall be taken into account.
(B) A survivor annuity computed based on an amount which, under authority of subparagraph (A), takes into consideration any period of military service shall be reduced by the amount of any survivor’s benefits—
(i) payable to a survivor (other than a child) under a retirement system for members of the uniformed services;
(ii) if, or to the extent that, such benefits are based on such period of military service.
(C) The Office of Personnel Management shall prescribe regulations to carry out this paragraph, including regulations under which—
(i) a survivor may elect not to be covered by this paragraph; and
(ii) this paragraph shall be carried out in any case which involves a former spouse.
(4) If, after January 1, 1997, an employee or Member waives retired pay that is subject to a court order for which there has been effective service on the Secretary concerned for purposes of section 1408 of title 10, the military service on which the retired pay is based may be credited as service for purposes of this subchapter only if the employee or Member authorizes the Director to deduct and withhold from the annuity payable to the employee or Member under this subchapter an amount equal to the amount that, if the annuity payment was instead a payment of the employee’s or Member’s retired pay, would have been deducted and withheld and paid to the former spouse covered by the court order under such section 1408. The amount deducted and withheld under this paragraph shall be paid to that former spouse. The period of civil service employment by the employee or Member shall not be taken into consideration in determining the amount of the deductions and withholding or the amount of the payment to the former spouse. The Director of the Office of Personnel Management shall prescribe regulations to carry out this paragraph.
(d) For the purpose of section 8339(c)(1) of this title, a Member—
(1) shall be allowed credit only for periods of military service not exceeding 5 years, plus military service performed by the Member on leaving his office, for the purpose of performing military service, during a war or national emergency proclaimed by the President or declared by Congress and before his final separation from service as Member; and
(2) may not receive credit for military service for which credit is allowed for purpose of retired pay under other statute.
(e) This subchapter does not affect the right of an employee or Member to retired pay, pension, or compensation in addition to an annuity payable under this subchapter.
(f) Credit shall be allowed for leaves of absence without pay granted an employee while performing military service or while receiving benefits under subchapter I of chapter 81 of this title. An employee or former employee who returns to duty after a period of separation is deemed, for the purpose of this subsection, to have been in a leave of absence without pay for that part of the period in which he was receiving benefits under subchapter I of chapter 81 of this title or any earlier statute on which such subchapter is based. Except for a substitute in the postal field service and service described in paragraph (14) of subsection (b) of this section,,3
3 So in original.
credit may not be allowed for so much of other leaves of absence without pay as exceeds 6 months in the aggregate in a calendar year.(g) An employee who during the period of a war, or of a national emergency as proclaimed by the President or declared by Congress, leaves his position to enter the military service is deemed, for the purpose of this subchapter, as not separated from his civilian position because of that military service, unless he applies for and receives a lump-sum credit under this subchapter. However, the employee is deemed as not retaining his civilian position after December 31, 1956, or after the expiration of 5 years of that military service, whichever is later.
(h) An employee who—
(1) has at least 5 years’ Member service; and
(2) serves as a Member at any time after August 2, 1946;
may not be allowed credit for service which is used in the computation of an annuity under section 8339(c) of this title.
(i) An individual who qualifies as an employee under section 8331(1)(E) of this title is entitled to credit for his service as a United States Commissioner, which is not credited for the purpose of this subchapter for service performed by him in a capacity other than Commissioner, on the basis of—
(1) 1/313 of a year for each day on which he performed service as a Commissioner before July 1, 1945; and
(2) 1/260 of a year for each day on which he performed service as a Commissioner after June 30, 1945.
Credit for service performed as Commissioner may not exceed 313 days in a year before July 1, 1945, or 260 days in a year after June 30, 1945. For the purpose of this subchapter, the employment and pay of a Commissioner is deemed on a daily basis when actually employed.
(j)
(1) Notwithstanding any other provision of this section, military service, except military service covered by military leave with pay from a civilian position, performed by an individual after December 1956, the period of an individual’s services as a volunteer under part A of title VIII of the Economic Opportunity Act of 1964, the period of an individual’s service as a full-time volunteer enrolled in a program of at least 1 year’s duration under part A, B,2 or C of title I of the Domestic Volunteer Service Act of 1973, and the period of an individual’s service as a volunteer or volunteer leader under chapter 34 of title 22, shall be excluded in determining the aggregate period of service on which an annuity payable under this subchapter to the individual or to his spouse, former spouse or child is based, if the individual, spouse, former spouse, or child is entitled, or would on proper application be entitled, at the time of that determination, to monthly old-age or survivors benefits under
(2) The provisions of paragraph (1) of this subsection relating to credit for military service shall not apply to—
(A) any period of military service of an employee or Member with respect to which the employee or Member has made a deposit with interest, if any, under section 8334(j) of this title; or
(B) the service of any employee or Member described in section 8332(c)(1)(B) of this title.
(3) The provisions of paragraph (1) relating to credit for service as a volunteer or volunteer leader under the Economic Opportunity Act of 1964, part A, B,2 or C of title I of the Domestic Volunteer Service Act of 1973, or the Peace Corps Act shall not apply to any period of service as a volunteer or volunteer leader of an employee or Member with respect to which the employee or Member has made the deposit with interest, if any, required by section 8334(l).
(k)
(1) An employee who enters on approved leave without pay to serve as a full-time officer or employee of an organization composed primarily of employees as defined by section 8331(1) of this title, within 60 days after entering on that leave without pay, may file with his employing agency an election to receive full retirement credit for his periods of that leave without pay and arrange to pay currently into the Fund, through his employing agency, amounts equal to the retirement deductions and agency contributions that would be applicable if he were in pay status. If the election and all payments provided by this paragraph are not made, the employee may not receive credit for the periods of leave without pay occurring after July 17, 1966, notwithstanding the third 5
5 See 1986 Amendment note below.
sentence of subsection (f) of this section. For the purpose of the preceding sentence, “employee” includes an employee who was on approved leave without pay and serving as a full-time officer or employee of such an organization on July 18, 1966, and who filed a similar election before September 17, 1966.(2) An employee may deposit with interest an amount equal to retirement deductions representing any period or periods of approved leave without pay while serving, before July 18, 1966, as a full-time officer or employee of an organization composed primarily of employees as defined by section 8331(1) of this title. An employee who makes the deposit shall be allowed full retirement credit for the period or periods of leave without pay. If the employee dies, a survivor as defined by section 8331(10) of this title may make the deposit. If the deposit is not made in full, retirement credit shall be allowed in accordance with the third 5 sentence of subsection (f) of this section.
(l)
(1) Any employee or Member who—
(A) is of Japanese ancestry; and
(B) while a citizen of the United States or an alien lawfully admitted to the United States for permanent residence, was interned or otherwise detained at any time during World War II in any camp, installation, or other facility in the United States, or in any territory or possession of the United States, under any policy or program of the United States respecting individuals of Japanese ancestry which was established during World War II in the interests of national security pursuant to—
(i) Executive Order Numbered 9066, dated February 19, 1942;
(ii) section 67 of the Act entitled “An Act to provide a government for the Territory of Hawaii”, approved April 30, 1900 (chapter 339, Fifty-sixth Congress; 31 Stat. 153);
(iii) Executive Order Numbered 9489, dated October 18, 1944;
(iv) sections 4067 through 4070 of the Revised Statutes of the United States; or
(v) any other statute, rule, regulation, or order; or
(C) is of Aleut ancestry and while a citizen of the United States was interned or otherwise detained in, or relocated to any camp, installation, or other facility in the Territory of Alaska which was established during World War II for the purpose of the internment, detention, or relocation of Aleuts pursuant to any statute, rule, regulation, or order;
shall be allowed credit (as civilian service) for any period during which such employee or Member was so interned or otherwise detained after such employee became 18 years of age.
(2) For the purpose of this subsection, “World War II” means the period beginning on December 7, 1941, and ending on December 31, 1946.
(m)
(1) Upon application to the Office of Personnel Management, any individual who is an employee on the date of the enactment of this subsection, and who has on such date or thereafter acquires 5 years or more of creditable civilian service under this section (exclusive of service for which credit is allowed under this subsection) shall be allowed credit (as service as a Congressional employee) for service before the date of the enactment of this subsection while employed by the Democratic Senatorial Campaign Committee, the Republican Senatorial Campaign Committee, the Democratic National Congressional Committee, or the Republican National Congressional Committee, if—
(A) such employee has at least 4 years and 6 months of service on such committees as of December 12, 1980; and
(B) such employee makes a deposit to the Fund in an amount equal to the amount which would be required under section 8334(c) of this title if such service were service as a Congressional employee.
(2) Upon application to the Office of Personnel Management, any individual who was an employee on the date of enactment of this paragraph, and who has on such date or thereafter acquires 5 years or more of creditable civilian service under this section (exclusive of service for which credit is allowed under this subsection) shall be allowed credit (as service as a congressional employee) for service before December 31, 1990, while employed by the Democratic Senatorial Campaign Committee, the Republican Senatorial Campaign Committee, the Democratic National Congressional Committee, or the Republican National Congressional Committee, if—
(A) such employee has at least 4 years and 6 months of service on such committees as of December 31, 1990; and
(B) such employee makes a deposit to the Fund in an amount equal to the amount which would be required under section 8334(c) if such service were service as a congressional employee.
(3) The Office shall accept the certification of the President of the Senate (or his designee) or the Speaker of the House (or his designee), as the case may be, concerning the service of, and the amount of compensation received by, an employee with respect to which credit is to be sought under this subsection.
(4) An individual receiving credit for service for any period under this subsection shall not be granted credit for such service under the provisions of the Social Security Act.
(n) Any employee who—
(1) served in a position in which the employee was excluded from coverage under this subchapter because the employee was covered under a retirement system established under section 10 of the Federal Reserve Act; and
(2) transferred without a break in service to a position to which the employee was appointed by the President, with the advice and consent of the Senate, and in which position the employee is subject to this subchapter,
shall be treated for all purposes of this subchapter as if any service that would have been creditable under the retirement system established under section 10 of the Federal Reserve Act was service performed while subject to this subchapter if any employee and employer deductions, contributions or rights with respect to the employee’s service are transferred from such retirement system to the Fund.
(o)
(1) Notwithstanding any other provision of this subchapter, the service of an individual finally convicted of an offense described in paragraph (2) shall not be taken into account for purposes of this subchapter, except that this sentence applies only to service rendered as a Member (irrespective of when rendered). Any such individual (or other person determined under section 8342(c), if applicable) shall be entitled to be paid so much of such individual’s lump-sum credit as is attributable to service to which the preceding sentence applies.
(2)
(A) An offense described in this paragraph is any offense described in subparagraph (B) for which the following apply:
(i) Every act or omission of the individual (referred to in paragraph (1)) that is needed to satisfy the elements of the offense occurs while the individual is a Member, the President, the Vice President, or an elected official of a State or local government.
(ii) Every act or omission of the individual that is needed to satisfy the elements of the offense directly relates to the performance of the individual’s official duties as a Member, the President, the Vice President, or an elected official of a State or local government.
(iii) The offense—(I) is committed after the date of enactment of this subsection and—(aa) is described under subparagraph (B)(i), (iv), (xvi), (xix), (xxiii), (xxiv), or (xxvi); or(bb) is described under subparagraph (B)(xxix), (xxx), or (xxxi), but only with respect to an offense described under subparagraph (B)(i), (iv), (xvi), (xix), (xxiii), (xxiv), or (xxvi); or(II) is committed after the date of enactment of the STOCK Act and—(aa) is described under subparagraph (B)(ii), (iii), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii), (xiv), (xv), (xvii), (xviii), (xx), (xxi), (xxii), (xxv), (xxvii), or (xxviii); or(bb) is described under subparagraph (B)(xxix), (xxx), or (xxxi), but only with respect to an offense described under subparagraph (B)(ii), (iii), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii), (xiv), (xv), (xvii), (xviii), (xx), (xxi), (xxii), (xxv), (xxvii), or (xxviii).
(B) An offense described in this subparagraph is only the following, and only to the extent that the offense is a felony:
(i) An offense under section 201 of title 18 (relating to bribery of public officials and witnesses).
(ii) An offense under section 203 of title 18 (relating to compensation to Member of Congress, officers, and others in matters affecting the Government).
(iii) An offense under section 204 of title 18 (relating to practice in the United States Court of Federal Claims or the United States Court of Appeals for the Federal Circuit by Member of Congress).
(iv) An offense under section 219 of title 18 (relating to officers and employees acting as agents of foreign principals).
(v) An offense under section 286 of title 18 (relating to conspiracy to defraud the Government with respect to claims).
(vi) An offense under section 287 of title 18 (relating to false, fictitious or fraudulent claims).
(vii) An offense under section 597 of title 18 (relating to expenditures to influence voting).
(viii) An offense under section 599 of title 18 (relating to promise of appointment by candidate).
(ix) An offense under section 602 of title 18 (relating to solicitation of political contributions).
(x) An offense under section 606 of title 18 (relating to intimidation to secure political contributions).
(xi) An offense under section 607 of title 18 (relating to place of solicitation).
(xii) An offense under section 641 of title 18 (relating to public money, property or records).
(xiii) An offense under section 666 of title 18 (relating to theft or bribery concerning programs receiving Federal funds).
(xiv) An offense under section 1001 of title 18 (relating to statements or entries generally).
(xv) An offense under section 1341 of title 18 (relating to frauds and swindles, including as part of a scheme to deprive citizens of honest services thereby).
(xvi) An offense under section 1343 of title 18 (relating to fraud by wire, radio, or television, including as part of a scheme to deprive citizens of honest services thereby).
(xvii) An offense under section 1503 of title 18 (relating to influencing or injuring officer or juror).
(xviii) An offense under section 1505 of title 18 (relating to obstruction of proceedings before departments, agencies, and committees).
(xix) An offense under section 1512 of title 18 (relating to tampering with a witness, victim, or an informant).
(xx) An offense under section 1951 of title 18 (relating to interference with commerce by threats of violence).
(xxi) An offense under section 1952 of title 18 (relating to interstate and foreign travel or transportation in aid of racketeering enterprises).
(xxii) An offense under section 1956 of title 18 (relating to laundering of monetary instruments).
(xxiii) An offense under section 1957 of title 18 (relating to engaging in monetary transactions in property derived from specified unlawful activity).
(xxiv) An offense under chapter 96 of title 18 (relating to racketeer influenced and corrupt organizations).
(xxv) An offense under section 7201 of the Internal Revenue Code of 1986 (relating to attempt to evade or defeat tax).
(xxvi) An offense under section 104(a) of the Foreign Corrupt Practices Act of 1977 (relating to prohibited foreign trade practices by domestic concerns).
(xxvii) An offense under section 10(b) of the Securities Exchange Act of 1934 (relating to fraud, manipulation, or insider trading of securities).
(xxviii) An offense under section 4c(a) of the Commodity Exchange Act (7 U.S.C. 6c(a)) (relating to fraud, manipulation, or insider trading of commodities).
(xxix) An offense under section 371 of title 18 (relating to conspiracy to commit offense or to defraud United States), to the extent of any conspiracy to commit an act which constitutes—(I) an offense under clause (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii), (xiv), (xv), (xvi), (xvii), (xviii), (xix), (xx), (xxi), (xxii), (xxiii), (xxiv), (xxv), (xxvi), (xxvii), or (xxviii); or(II) an offense under section 207 of title 18 (relating to restrictions on former officers, employees, and elected officials of the executive and legislative branches).
(xxx) Perjury committed under section 1621 of title 18 in falsely denying the commission of an act which constitutes—(I) an offense under clause (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii), (xiv), (xv), (xvi), (xvii), (xviii), (xix), (xx), (xxi), (xxii), (xxiii), (xxiv), (xxv), (xxvi), (xxvii), or (xxviii); or(II) an offense under clause (xxix), to the extent provided in such clause.
(xxxi) Subornation of perjury committed under section 1622 of title 18 in connection with the false denial or false testimony of another individual as specified in clause (xxx).
(3) An individual convicted of an offense described in paragraph (2) shall not, after the date of the final conviction, be eligible to participate in the retirement system under this subchapter or chapter 84 while serving as a Member.
(4) The Office of Personnel Management shall prescribe any regulations necessary to carry out this subsection. Such regulations shall include—
(A) provisions under which interest on any lump-sum payment under the second sentence of paragraph (1) shall be limited in a manner similar to that specified in the last sentence of section 8316(b); and
(B) provisions under which the Office may provide for—
(i) the payment, to the spouse or children of any individual referred to in the first sentence of paragraph (1), of any amounts which (but for this clause) would otherwise have been nonpayable by reason of such first sentence, subject to paragraph (5); and
(ii) an appropriate adjustment in the amount of any lump-sum payment under the second sentence of paragraph (1) to reflect the application of clause (i).
(5) Regulations to carry out clause (i) of paragraph (4)(B) shall include provisions to ensure that the authority to make any payment to the spouse or children of an individual under such clause shall be available only to the extent that the application of such clause is considered necessary and appropriate taking into account the totality of the circumstances, including the financial needs of the spouse or children, whether the spouse or children participated in an offense described in paragraph (2) of which such individual was finally convicted, and what measures, if any, may be necessary to ensure that the convicted individual does not benefit from any such payment.
(6) For purposes of this subsection—
(A) the terms “finally convicted” and “final conviction” refer to a conviction (i) which has not been appealed and is no longer appealable because the time for taking an appeal has expired, or (ii) which has been appealed and the appeals process for which is completed;
(B) the term “Member” has the meaning given such term by section 2106, notwithstanding section 8331(2); and
(C) the term “child” has the meaning given such term by section 8341.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 567; Pub. L. 90–83, § 1(73), Sept. 11, 1967, 81 Stat. 214; Pub. L. 90–486, § 5(a), Aug. 13, 1968, 82 Stat. 757; Pub. L. 91–177, title I, § 112(a), Dec. 30, 1969, 83 Stat. 831; Pub. L. 91–510, title IV, § 442(b), Oct. 26, 1970, 84 Stat. 1191; Pub. L. 91–658, § 1, Jan. 8, 1971, 84 Stat. 1961; Pub. L. 92–297, § 7(1), May 16, 1972, 86 Stat. 144; Pub. L. 92–454, § 1, Oct. 2, 1972, 86 Stat. 760; Pub. L. 93–113, title VI, § 602, Oct. 1, 1973, 87 Stat. 417; Pub. L. 94–183, § 2(32), (33), (39), Dec. 31, 1975, 89 Stat. 1058, 1059; Pub. L. 95–382, § 1(a), Sept. 22, 1978, 92 Stat. 727; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96–54, § 2(a)(48), Aug. 14, 1979, 93 Stat. 384; Pub. L. 96–465, title II, § 2313, Oct. 17, 1980, 94 Stat. 2167; Pub. L. 96–523, § 4(a), Dec. 12, 1980, 94 Stat. 3040; Pub. L. 97–164, title II, § 207(a), Apr. 2, 1982, 96 Stat. 54; Pub. L. 97–253, title III, § 306(b), (c), Sept. 8, 1982, 96 Stat. 795, 796; Pub. L. 97–346, § 3(a), (b), Oct. 15, 1982, 96 Stat. 1647; Pub. L. 98–51, title I, § 111(2), July 14, 1983, 97 Stat. 269; Pub. L. 89–702, title II, § 209(a)–(e), as added Pub. L. 98–129, § 2, Oct. 14, 1983, 97 Stat. 843; Pub. L. 98–369, div. B, title II, § 2208(a), July 18, 1984, 98 Stat. 1060; Pub. L. 99–251, title II, § 202, Feb. 27, 1986, 100 Stat. 23; Pub. L. 99–335, title II, § 207(g), June 6, 1986, 100 Stat. 595; Pub. L. 99–556, title V, § 502(a), Oct. 27, 1986, 100 Stat. 3140; Pub. L. 99–638, § 2(b)(2), Nov. 10, 1986, 100 Stat. 3536; Pub. L. 100–204, title V, § 503, Dec. 22, 1987, 101 Stat. 1383; Pub. L. 101–530, § 1, Nov. 6, 1990, 104 Stat. 2338; Pub. L. 102–83, § 5(c)(2), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102–242, title IV, § 466(a), Dec. 19, 1991, 105 Stat. 2384; Pub. L. 102–378, § 2(58), Oct. 2, 1992, 106 Stat. 1354; Pub. L. 103–82, title III, § 371(a)(1), title IV, § 405(b), Sept. 21, 1993, 107 Stat. 909, 921; Pub. L. 103–337, div. A, title XVI, § 1677(a)(3), Oct. 5, 1994, 108 Stat. 3019; Pub. L. 104–186, title II, § 215(11), Aug. 20, 1996, 110 Stat. 1746; Pub. L. 104–201, div. A, title VI, § 637(a), Sept. 23, 1996, 110 Stat. 2580; Pub. L. 106–57, title III, § 312, Sept. 29, 1999, 113 Stat. 428; Pub. L. 106–554, § 1(a)(4) [div. A, § 901(a)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A–195; Pub. L. 107–107, div. A, title XI, § 1132(a)(1), Dec. 28, 2001, 115 Stat. 1242; Pub. L. 110–81, title IV, § 401(a), Sept. 14, 2007, 121 Stat. 754; Pub. L. 112–105, § 15(a)(1), (b), Apr. 4, 2012, 126 Stat. 301.)
§ 8333. Eligibility for annuity
(a) An employee must complete at least 5 years of civilian service before he is eligible for an annuity under this subchapter.
(b) An employee or Member must complete, within the last 2 years before any separation from service, except a separation because of death or disability, at least 1 year of creditable civilian service during which he is subject to this subchapter before he or his survivors are eligible for annuity under this subchapter based on the separation. If an employee or Member, except an employee or Member separated from the service because of death or disability, fails to meet the service requirement of the preceding sentence, the amounts deducted from his pay during the service for which no eligibility for annuity is established based on the separation shall be returned to him on the separation. Failure to meet this service requirement does not deprive the individual or his survivors of annuity rights which attached on a previous separation.
(c) A Member or his survivor is eligible for an annuity under this subchapter only if the amounts named by section 8334 of this title have been deducted or deposited with respect to his last 5 years of civilian service, or, in the case of a survivor annuity under section 8341(d) or (e)(1) of this title, with respect to his total service.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 569; Pub. L. 91–93, title II, § 201(b), Oct. 20, 1969, 83 Stat. 138; Pub. L. 94–183, § 2(34), Dec. 31, 1975, 89 Stat. 1058.)
§ 8334. Deductions, contributions, and deposits
(a)
(1)
(A) The employing agency shall deduct and withhold from the basic pay of an employee, Member, Congressional employee, law enforcement officer, firefighter, bankruptcy judge, judge of the United States Court of Appeals for the Armed Forces, United States magistrate,1
1 So in original. Probably should be “United States magistrate judge,”.
Court of Federal Claims judge, member of the Capitol Police, member of the Supreme Court Police, nuclear materials courier, or customs and border protection officer, as the case may be, the percentage of basic pay applicable under subsection (c).(B)
(i) Except as provided in clause (ii), an equal amount shall be contributed from the appropriation or fund used to pay the employee or, in the case of an elected official, from an appropriation or fund available for payment of other salaries of the same office or establishment. When an employee in the legislative branch is paid by the Chief Administrative Officer of the House of Representatives, the Chief Administrative Officer may pay from the applicable accounts of the House of Representatives the contribution that otherwise would be contributed from the appropriation or fund used to pay the employee.
(ii) In the case of an employee of the United States Postal Service, no amount shall be contributed under this subparagraph.
(2) The amounts so deducted and withheld, together with the amounts so contributed, shall be deposited in the Treasury of the United States to the credit of the Fund under such procedures as the Secretary of the Treasury may prescribe. Deposits made by an employee or Member also shall be credited to the Fund.
(b) Each employee or Member is deemed to consent and agree to these deductions from basic pay. Notwithstanding any law or regulation affecting the pay of an employee or Member, payment less these deductions is a full and complete discharge and acquittance of all claims and demands for regular services during the period covered by the payment, except the right to the benefits to which the employee or Member is entitled under this subchapter.
(c) Each employee or Member credited with civilian service after July 31, 1920, for which retirement deductions or deposits have not been made, may deposit with interest an amount equal to the following percentages of his basic pay received for that service:
Percentage of basic pay | Service period | |
|---|---|---|
Employee | 2½ | August 1, 1920, to June 30, 1926. |
3½ | July 1, 1926, to June 30, 1942. | |
5 | July 1, 1942, to June 30, 1948. | |
6 | July 1, 1948, to October 31, 1956. | |
6½ | November 1, 1956, to December 31, 1969. | |
7 | January 1, 1970, to December 31, 1998. | |
7.25 | January 1, 1999, to December 31, 1999. | |
7.4 | January 1, 2000, to December 31, 2000. | |
7 | After December 31, 2000. | |
Member or employee for Congressional employee service | 2½ 3½ 5 6 | August 1, 1920, to June 30, 1926. July 1, 1926, to June 30, 1942. July 1, 1942, to June 30, 1948. July 1, 1948, to October 31, 1956. |
6½ | November 1, 1956, to December 31, 1969. | |
7.5 | January 1, 1970, to December 31, 1998. | |
7.75 | January 1, 1999, to December 31, 1999. | |
7.9 | January 1, 2000, to December 31, 2000. | |
7.5 | After December 31, 2000. | |
Member for Member service | 2½ 3½ | August 1, 1920, to June 30, 1926. July 1, 1926, to June 30, 1942. |
5 | July 1, 1942, to August 1, 1946. | |
6 | August 2, 1946, to October 31, 1956. | |
7½ | November 1, 1956, to December 31, 1969. | |
8 | January 1, 1970, to December 31, 1998. | |
8.25 | January 1, 1999, to December 31, 1999. | |
8.4 | January 1, 2000, to December 31, 2000. | |
8.5 | January 1, 2001, to December 31, 2002. | |
8 | After December 31, 2002. | |
Law enforcement officer for law enforcement service, member of the Supreme Court Police for Supreme Court Police service, and firefighter for firefighter service | 2½ 3½ 5 6 6½ 7 | August 1, 1920, to June 30, 1926. July 1, 1926, to June 30, 1942. July 1, 1942, to June 30, 1948. July 1, 1948, to October 31, 1956. November 1, 1956, to December 31, 1969. January 1, 1970, to December 31, 1974. |
7.5 | January 1, 1975, to December 31, 1998. | |
7.75 | January 1, 1999, to December 31, 1999. | |
7.9 | January 1, 2000, to December 31, 2000. | |
7.5 | After December 31, 2000. | |
Bankruptcy judge | 2½ 3½ | August 1, 1920, to June 30, 1926. July 3, 1926, to June 30, 1942. |
5 | July 1, 1942, to June 30, 1948. | |
6 | July 1, 1948, to October 31, 1956. | |
6½ | November 1, 1956, to December 31, 1969. | |
7 | January 1, 1970, to December 31, 1983. | |
8 | January 1, 1984, to December 31, 1998. | |
8.25 | January 1, 1999, to December 31, 1999. | |
8.4 | January 1, 2000, to December 31, 2000. | |
8 | After December 31, 2000. | |
Judge of the United States Court of Appeals for the Armed Forces for service as a judge of that court | 6 6½ 7 | May 5, 1950, to October 31, 1956. November 1, 1956, to December 31, 1969. January 1, 1970, to (but not including) the date of the enactment of the Department of Defense Authorization Act, 1984. |
8 | The date of enactment of the Department of Defense Authorization Act, 1984, to December 31, 1998. | |
8.25 | January 1, 1999, to December 31, 1999. | |
8.4 | January 1, 2000, to December 31, 2000. | |
8 | After December 31, 2000. | |
United States magistrate judge | 2½ 3½ | August 1, 1920, to June 30, 1926. July 1, 1926, to June 30, 1942. |
5 | July 1, 1942, to June 30, 1948. | |
6 | July 1, 1948, to October 31, 1956. | |
6½ | November 1, 1956, to December 31, 1969. | |
7 | January 1, 1970, to September 30, 1987. | |
8 | October 1, 1987, to December 31, 1998. | |
8.25 | January 1, 1999, to December 31, 1999. | |
8.4 | January 1, 2000, to December 31, 2000. | |
8 | After December 31, 2000. | |
Court of Federal Claims Judge | 2½ 3½ | August 1, 1920, to June 30, 1926. July 1, 1926, to June 30, 1942. |
5 | July 1, 1942, to June 30, 1948. | |
6 | July 1, 1948, to October 31, 1956. | |
6½ | November 1, 1956, to December 31, 1969. | |
7 | January 1, 1970, to September 30, 1988. | |
8 | October 1, 1988, to December 31, 1998. | |
8.25 | January 1, 1999, to December 31, 1999. | |
8.4 | January 1, 2000, to December 31, 2000. | |
8 | After December 31, 2000. | |
Member of the Capitol Police | 2.5 3.5 | August 1, 1920, to June 30, 1926. July 1, 1926, to June 30, 1942. |
5 | July 1, 1942, to June 30, 1948. | |
6 | July 1, 1948, to October 31, 1956. | |
6.5 | November 1, 1956, to December 31, 1969. | |
7.5 | January 1, 1970, to December 31, 1998. | |
7.75 | January 1, 1999, to December 31, 1999. | |
7.9 | January 1, 2000, to December 31, 2000. | |
7.5 | After December 31, 2000. | |
Nuclear materials courier | 7 | October 1, 1977 to October 16, 1998. |
7.5 | October 17, 1998 to December 31, 1998. | |
7.75 | January 1, 1999 to December 31, 1999. | |
7.9 | January 1, 2000 to December 31, 2000. | |
7.5 | After December 31, 2000. | |
Customs and border protection officer | 7.5 | After June 29, 2008. |
Notwithstanding the preceding provisions of this subsection and any provision of section 206(b)(3) of the Federal Employees’ Retirement Contribution Temporary Adjustment Act of 1983, the percentage of basic pay required under this subsection in the case of an individual described in section 8402(b)(2) shall, with respect to any covered service (as defined by section 203(a)(3) of such Act) performed by such individual after December 31, 1983, and before January 1, 1987, be equal to 1.3 percent, and, with respect to any such service performed after December 31, 1986, be equal to the amount that would have been deducted from the employee’s basic pay under subsection (k) of this section if the employee’s pay had been subject to that subsection during such period.
(d)
(1) Each employee or Member who has received a refund of retirement deductions under this or any other retirement system established for employees of the Government covering service for which he may be allowed credit under this subchapter may deposit the amount received, with interest. Credit may not be allowed for the service covered by the refund until the deposit is made.
(2)
(A) This paragraph applies with respect to any employee or Member who—
(i) separates before March 1, 1991, and receives (or elects, in accordance with applicable provisions of this subchapter, to receive) a refund (described in paragraph (1)) which relates to a period of service ending before March 1, 1991;
(ii) is entitled to an annuity under this subchapter (other than a disability annuity) which is based on service of such employee or Member, and which commences on or after December 2, 1990; and
(iii) does not make the deposit (described in paragraph (1)) required in order to receive credit for the period of service with respect to which the refund relates.
(B) Notwithstanding the second sentence of paragraph (1), the annuity to which an employee or Member under this paragraph is entitled shall (subject to adjustment under section 8340) be equal to an amount which, when taken together with the unpaid amount referred to in subparagraph (A)(iii), would result in the present value of the total being actuarially equivalent to the present value of the annuity which would otherwise be provided the employee or Member under this subchapter, as computed under subsections (a)–(i) and (n) of section 8339 (treating, for purposes of so computing the annuity which would otherwise be provided under this subchapter, the deposit referred to in subparagraph (A)(iii) as if it had been timely made).
(C) The Office of Personnel Management shall prescribe such regulations as may be necessary to carry out this paragraph.
(e)
(1) Interest under subsection (c), (d)(1), (j), (k), or (l) of this section is computed in accordance with paragraphs (2) and (3) of this subsection and regulations prescribed by the Office of Personnel Management.
(2) Interest accrues annually on the outstanding portion of any amount that may be deposited under subsection (c), (d)(1), (j), (k), or (l) of this section, and is compounded annually, until the portion is deposited. Such interest is computed from the mid-point of each service period included in the computation, or from the date refund was paid. The deposit may be made in one or more installments. Interest may not be charged for a period of separation from the service which began before October 1, 1956.
(3) The rate of interest is 4 percent a year through December 31, 1947, and 3 percent a year beginning January 1, 1948, through December 31, 1984. Thereafter, the rate of interest for any calendar year shall be equal to the overall average yield to the Fund during the preceding fiscal year from all obligations purchased by the Secretary of the Treasury during such fiscal year under section 8348(c), (d), and (e) of this title, as determined by the Secretary.
(f) Under such regulations as the Office of Personnel Management may prescribe, amounts deducted under subsection (a) or (k) of this section and deposited under subsections (c) and (d)(1) of this section shall be entered on individual retirement records.
(g) Deposit may not be required for—
(1) service before August 1, 1920;
(2) military service, except to the extent provided under section 8332(c) or section 8334(j) of this title;
(3) service for the Panama Railroad Company before January 1, 1924;
(4) service performed before October 29, 1983,,2
2 So in original.
by natives of the Pribilof Islands in the taking and curing of fur seal skins and other activities in connection with the administration of the Pribilof Islands except where deductions, contributions, and deposits were made before October 29, 1983;(5) days of unused sick leave credited under section 8339(m) of this title; or
(6) any period for which credit is allowed under section 8332(l) of this title.
(h) For the purpose of survivor annuities, deposits authorized by subsections (c), (d)(1), (j), and (k) of this section may also be made by a survivor of an employee or Member.
(i)
(1) The Director of the Administrative Office of the United States Courts shall pay to the Fund the amount which an employee may deposit under subsection (c) of this section for service creditable under section 8332(b)(12) of this title if such creditable service immediately precedes service as an employee subject to this subchapter with a break in service of no more than ninety working days. The Director shall pay such amount from any appropriation available to him as a necessary expense of the appropriation concerned.
(2) The amount the Director pays in accordance with paragraph (1) of this subsection shall be reduced by the amount of any refund to the employee under section 376 of title 28. Except to the extent of such reduction, the amount the Director pays to the Fund shall satisfy the deposit requirement of subsection (c) of this section.
(3) Notwithstanding any other provision of law, the amount the Director pays under this subsection shall constitute an employer contribution to the Fund, excludable under section 402 of the Internal Revenue Code of 1986 from the employee’s gross income until such time as the contribution is distributed or made available to the employee, and shall not be subject to refund or to lump-sum payment to the employee.
(4) Notwithstanding any other provision of law, a bankruptcy judge or magistrate judge who is covered by section 377 of title 28 or section 2(c) of the Retirement and Survivors’ Annuities for Bankruptcy Judges and Magistrates Act of 1988 shall not be subject to deductions and contributions to the Fund, if the judge or magistrate judge notifies the Director of the Administrative Office of the United States Courts of an election of a retirement annuity under those provisions. Upon such an election, the judge or magistrate judge shall be entitled to a lump-sum credit under section 8342(a) of this title.
(5) Notwithstanding any other provision of law, a judge who is covered by section 7296 of title 38 shall not be subject to deductions and contributions to the Fund, if the judge notifies the Director of the Office of Personnel Management of an election of a retirement annuity under that section. Upon such an election, the judge shall be entitled to a lump-sum credit under section 8342(a) of this title.
(6) Notwithstanding any other provision of law, a judge of the United States Court of Federal Claims who is covered by section 178 of title 28 shall not be subject to deductions and contributions to the Fund if the judge notifies the Director of the Administrative Office of the United States Courts of an election of a retirement annuity under those provisions. Upon such an election, the judge shall be entitled to a lump-sum credit under section 8342(a) of this title.
(j)
(1)
(A) Except as provided in subparagraph (B), and subject to paragraph (5), each employee or Member who has performed military service before the date of the separation on which the entitlement to any annuity under this subchapter is based may pay, in accordance with such regulations as the Office shall issue, to the agency by which the employee is employed, or, in the case of a Member or a Congressional employee, to the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives, as appropriate, an amount equal to 7 percent of the amount of the basic pay paid under section 204 of title 37 to the employee or Member for each period of military service after December 1956. The amount of such payments shall be based on such evidence of basic pay for military service as the employee or Member may provide, or if the Office determines sufficient evidence has not been so provided to adequately determine basic pay for military service, such payment shall be based upon estimates of such basic pay provided to the Office under paragraph (4).
(B) In any case where military service interrupts creditable civilian service under this subchapter and reemployment pursuant to chapter 43 of title 38 occurs on or after August 1, 1990, the deposit payable under this paragraph may not exceed the amount that would have been deducted and withheld under subsection (a)(1) from basic pay during civilian service if the employee had not performed the period of military service.
(2) Any deposit made under paragraph (1) of this subsection more than two years after the later of—
(A)October 1, 1983; or
(B) the date on which the employee or Member making the deposit first becomes an employee or Member following the period of military service for which such deposit is due,
shall include interest on such amount computed and compounded annually beginning on the date of the expiration of the two-year period. The interest rate that is applicable in computing interest in any year under this paragraph shall be equal to the interest rate that is applicable for such year under subsection (e) of this section.
(3) Any payment received by an agency, the Secretary of the Senate, or the Chief Administrative Officer of the House of Representatives under this subsection shall be immediately remitted to the Office for deposit in the Treasury of the United States to the credit of the Fund.
(4) The Secretary of Defense, the Secretary of Transportation, the Secretary of Commerce, or the Secretary of Health and Human Services, as appropriate, shall furnish such information to the Office as the Office may determine to be necessary for the administration of this subsection.
(5) Effective with respect to any period of military service after December 31, 1998, the percentage of basic pay under section 204 of title 37 payable under paragraph (1) shall be equal to the same percentage as would be applicable under subsection (c) of this section for that same period for service as an employee, subject to paragraph (1)(B).
(6)
(A) In calculating and processing the deposit under paragraph (1) with respect to an employee, Member, or annuitant, if the employing agency of such employee, Member, or annuitant makes an administrative error, such employing agency may pay, on behalf of the employee, Member, or annuitant, any additional interest assessed due to the administrative error.
(B) For purposes of subparagraph (A), the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives, as appropriate, shall be considered the employing agency of a Member or Congressional employee.
(C) The Director of the Office of Personnel Management shall issue such regulations as are necessary to carry out this paragraph.
(k)
(1) Effective with respect to pay periods beginning after December 31, 1986, in administering this section in the case of an individual described in section 8402(b)(2) of this title—
(A) the amount to be deducted and withheld by the employing agency shall be determined in accordance with paragraph (2) of this subsection instead of subsection (a)(1)(A); and
(B) the amount of the contribution under subparagraph (B) of subsection (a)(1) shall be the amount which would have been contributed under such subparagraph if this subsection had not been enacted.
(2)
(A) With respect to Federal wages of an employee or Member (or that portion thereof) not exceeding the contribution and benefit base during the calendar year involved, the appropriate amount to be deducted and withheld under this subsection is the amount by which—
(i) the total deduction for those wages (or for that portion) exceeds;
(ii) the OASDI contribution with respect to those wages (or that portion).
(B) With respect to any portion of Federal wages of an employee or Member which exceed the contribution and benefit base during the calendar year involved, the appropriate amount to be deducted and withheld under this subsection is an amount equal to the total deduction for that portion.
(C) For purposes of this paragraph—
(i) the term “Federal wages” means basic pay for service as an employee or Member, as the case may be;
(ii) the term “contribution and benefit base” means the contribution and benefit base in effect with respect to the period involved, as determined under section 230 of the Social Security Act;
(iii) the term “total deduction”, as used with respect to any Federal wages (or portion thereof), means an amount equal to the amount of those wages (or of that portion), multiplied by the percentage which (but for this subsection) would apply under subsection (a)(1)(A) with respect to the individual involved; and
(iv) the term “OASDI contribution”, with respect to any income, means the amount of tax which may be imposed under section 3101(a) of the Internal Revenue Code of 1986 with respect to such income (determined without regard to any income which is not a part of Federal wages).
(3) The amount of a deposit under subsection (c) of this section for any service with respect to which paragraph (1) of this subsection applies shall be equal to an amount determined based on the preceding provisions of this subsection, and shall include interest.
(4) In administering paragraphs (1) through (3)—
(A) the term “an individual described in section 8402(b)(2) of this title” shall be considered to include any individual—
(i) who is subject to this subchapter as a result of a provision of law described in section 8347(o), and
(ii) whose employment (as described in section 8347(o)) is also employment for purposes of title II of the Social Security Act and chapter 21 of the Internal Revenue Code of 1986; and
(B) the term “Federal wages”, as applied with respect to any individual to whom this subsection applies as a result of subparagraph (A), means basic pay for any employment referred to in subparagraph (A)(ii).
(l)
(1) Each employee or Member who has performed service as a volunteer or volunteer leader under part A of title VIII of the Economic Opportunity Act of 1964, as a full-time volunteer enrolled in a program of at least 1 year’s duration under part A, B,3
3 See References in Text note below.
or C of title I of the Domestic Volunteer Service Act of 1973, or as a volunteer or volunteer leader under the Peace Corps Act before the date of the separation on which the entitlement to any annuity under this subchapter is based may pay, in accordance with such regulations as the Office of Personnel Management shall issue, an amount equal to 7 percent of the readjustment allowance paid to the employee or Member under title VIII of the Economic Opportunity Act of 1964 or section 5(c) or 6(1) of the Peace Corps Act or the stipend paid to the employee or Member under part A, B,3 or C of title I of the Domestic Volunteer Service Act of 1973, for each period of service as such a volunteer or volunteer leader. This paragraph shall be subject to paragraph (4).(2) Any deposit made under paragraph (1) more than 2 years after the later of—
(A)October 1, 1993; or
(B) the date on which the employee or Member making the deposit first becomes an employee or Member,
shall include interest on such amount computed and compounded annually beginning on the date of the expiration of the 2-year period. The interest rate that is applicable in computing interest in any year under this paragraph shall be equal to the interest rate that is applicable for such year under subsection (e).
(3) The Director of the Peace Corps and the Chief Executive Officer of the Corporation for National and Community Service shall furnish such information to the Office of Personnel Management as the Office may determine to be necessary for the administration of this subsection.
(4) Effective with respect to any period of service after December 31, 1998, the percentage of the readjustment allowance or stipend (as the case may be) payable under paragraph (1) shall be equal to the same percentage as would be applicable under subsection (c) of this section for the same period for service as an employee.
(5)
(A) In calculating and processing the deposit under paragraph (1) with respect to an employee, Member, or annuitant, if an employing agency of such employee, Member, or annuitant makes an administrative error that causes additional interest assessed to accrue on the deposit, the employing agency may pay, on behalf of the employee, Member, or annuitant, any additional interest assessed due to the administrative error.
(B) In calculating and processing the deposit under paragraph (1) with respect to an employee, Member, or annuitant, if the Office of Personnel Management makes an administrative error that causes additional interest assessed to accrue on the deposit, the Office of Personnel Management may pay, on behalf of the employee, Member, or annuitant, any additional interest assessed due to the administrative error.
(C) For purposes of subparagraph (A), the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives, as appropriate, shall be considered the employing agency of a Member or congressional employee.
(D) The Director of the Office of Personnel Management shall issue such regulations as are necessary to carry out this paragraph.
(m) A Member who has served in a position in the executive branch for which the rate of basic pay was reduced for the duration of the service of the Member to remove the impediment to the appointment of the Member imposed by article I, section 6, clause 2 of the Constitution, or the survivor of such a Member, may deposit to the credit of the Fund an amount equal to the difference between the amount deducted from the basic pay of the Member during that period of service and the amount that would have been deducted if the rate of basic pay which would otherwise have been in effect during that period had been in effect, plus interest computed under subsection (e).
(n) Notwithstanding subsection (c), no deposit may be made with respect to service credited under section 8332(b)(17).
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 569; Pub. L. 90–83, § 1(74), Sept. 11, 1967, 81 Stat. 214; Pub. L. 90–486, § 5(b), Aug. 13, 1968, 82 Stat. 757; Pub. L. 91–93, title I, § 102(a), title II, § 202, Oct. 20, 1969, 83 Stat. 136, 138; Pub. L. 92–297, § 7(2), May 16, 1972, 86 Stat. 144; Pub. L. 93–350, § 3, July 12, 1974, 88 Stat. 356; Pub. L. 94–126, §§ 1(a), 2(a), Nov. 12, 1975, 89 Stat. 679; Pub. L. 95–382, § 1(b), Sept. 22, 1978, 92 Stat. 727; Pub. L. 95–454, title IX, § 906(a)(2), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 95–598, title III, § 338(b), Nov. 6, 1978, 92 Stat. 2681; Pub. L. 97–164, title II, § 207(b), Apr. 2, 1982, 96 Stat. 54; Pub. L. 97–253, title III, §§ 303(a)(1), 306(d), (e), Sept. 8, 1982, 96 Stat. 793, 796, 797; Pub. L. 97–346, § 3(a), (c)–(e)(1), Oct. 15, 1982, 96 Stat. 1647, 1648; Pub. L. 98–94, title XII, §§ 1256(a), 1257, Sept. 24, 1983, 97 Stat. 701, 702; Pub. L. 89–702, title II, § 209(f), as added Pub. L. 98–129, § 2, Oct. 14, 1983, 97 Stat. 843; Pub. L. 98–353, title I, § 116(b), July 10, 1984, 98 Stat. 344; Pub. L. 98–615, § 2(2), Nov. 8, 1984, 98 Stat. 3195; Pub. L. 99–335, title II, § 201(a), (c), June 6, 1986, 100 Stat. 588, 591; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100–53, § 2(b), June 18, 1987, 101 Stat. 367; Pub. L. 100–238, title I, §§ 102, 108(b)(1), Jan. 8, 1988, 101 Stat. 1744, 1748; Pub. L. 100–659, § 6(b), Nov. 15, 1988, 102 Stat. 3919; Pub. L. 101–94, title I, § 102(a), Aug. 16, 1989, 103 Stat. 626; Pub. L. 101–508, title VII, § 7001(b)(1), (2)(A), (B), Nov. 5, 1990, 104 Stat. 1388–328, 1388–329; Pub. L. 101–650, title III, §§ 306(c)(2), (e)(2), 321, Dec. 1, 1990, 104 Stat. 5110, 5112, 5117; Pub. L. 102–40, title IV, § 402(d)(2), May 7, 1991, 105 Stat. 239; Pub. L. 102–378, § 2(59), Oct. 2, 1992, 106 Stat. 1354; Pub. L. 102–572, title IX, § 902(b), Oct. 29, 1992, 106 Stat. 4516; Pub. L. 103–66, title XI, § 11004(a)(3), Aug. 10, 1993, 107 Stat. 412; Pub. L. 103–82, title III, § 371(a)(2), Sept. 21, 1993, 107 Stat. 910; Pub. L. 103–337, div. A, title IX, § 924(d)(1)(A), Oct. 5, 1994, 108 Stat. 2832; Pub. L. 103–353, § 5(b), Oct. 13, 1994, 108 Stat. 3173; Pub. L. 104–186, title II, § 215(12), Aug. 20, 1996, 110 Stat. 1746; Pub. L. 104–316, title I, § 103(g), Oct. 19, 1996, 110 Stat. 3829; Pub. L. 105–33, title VII, § 7001(a)(3), (4), Aug. 5, 1997, 111 Stat. 653, 657; Pub. L. 105–61, title V, § 516(a)(1), Oct. 10, 1997, 111 Stat. 1306; Pub. L. 105–261, div. C, title XXXI, § 3154(c)(1), (2), Oct. 17, 1998, 112 Stat. 2254; Pub. L. 106–65, div. A, title X, § 1066(d)(3), Oct. 5, 1999, 113 Stat. 773; Pub. L. 106–346, § 101(a) [title V, § 505(a)], Oct. 23, 2000, 114 Stat. 1356, 1356A–50; Pub. L. 106–553, § 1(a)(2) [title III, § 308(b)(1)], Dec. 21, 2000, 114 Stat. 2762, 2762A–86; Pub. L. 107–107, div. A, title XI, § 1132(a)(2), Dec. 28, 2001, 115 Stat. 1243; Pub. L. 108–18, § 2(b), Apr. 23, 2003, 117 Stat. 624; Pub. L. 109–435, title VIII, § 802(a)(1), Dec. 20, 2006, 120 Stat. 3249; Pub. L. 110–161, div. E, title V, § 535(a)(2), Dec. 26, 2007, 121 Stat. 2075; Pub. L. 111–84, div. A, title XIX, § 1902(a), Oct. 28, 2009, 123 Stat. 2615; Pub. L. 115–352, §§ 2(a), 3(a), Dec. 21, 2018, 132 Stat. 5067, 5068.)
§ 8335. Mandatory separation
(a) An air traffic controller shall be separated from the service on the last day of the month in which he becomes 56 years of age or completes the age and service requirements for an annuity under section 8336(e), whichever occurs later. The Secretary, under such regulations as he may prescribe, may exempt a controller having exceptional skills and experience as a controller from the automatic separation provisions of this subsection until that controller becomes 61 years of age. The Secretary shall notify the controller in writing of the date of separation at least 60 days before that date. Action to separate the controller is not effective, without the consent of the controller, until the last day of the month in which the 60-day notice expires. For purposes of this subsection, the term “air traffic controller” or “controller” has the meaning given to it under section 8331(29)(A).1
1 See References in Text note below.
(b)
(1) A law enforcement officer, firefighter, nuclear materials courier, or customs and border protection officer who is otherwise eligible for immediate retirement under section 8336(c) shall be separated from the service on the last day of the month in which that officer, firefighter, or courier, as the case may be, becomes 57 years of age or completes 20 years of service if then over that age. The head of the agency, when in his judgment the public interest so requires, may exempt such an employee from automatic separation under this subsection until that employee becomes 60 years of age. The employing office shall notify the employee in writing of the date of separation at least 60 days in advance thereof. Action to separate the employee is not effective, without the consent of the employee, until the last day of the month in which the 60-day notice expires.
(2) In the case of employees of the Federal Bureau of Investigation, the second sentence of paragraph (1) shall be applied by substituting “65 years of age” for “60 years of age”. The authority to grant exemptions in accordance with the preceding sentence shall cease to be available after December 31, 2011.
(c) A member of the Capitol Police who is otherwise eligible for immediate retirement under section 8336(m) shall be separated from the service on the last day of the month in which such member becomes 57 years of age or completes 20 years of service if then over that age. The Capitol Police Board, when in its judgment the public interest so requires, may exempt such a member from automatic separation under this subsection until that member becomes 60 years of age. The Board shall notify the member in writing of the date of separation at least 60 days in advance thereof. Action to separate the member is not effective, without the consent of the member, until the last day of the month in which the 60-day notice expires.
(d) A member of the Supreme Court Police who is otherwise eligible for immediate retirement under section 8336(n) shall be separated from the service on the last day of the month in which such member becomes 57 years of age or completes 20 years of service if then over that age. The Marshal of the Supreme Court of the United States, when in his judgment the public interest so requires, may exempt such a member from automatic separation under this subsection until that member becomes 60 years of age. The Marshal shall notify the member in writing of the date of separation at least 60 days in advance thereof. Action to separate the member is not effective, without the consent of the member, until the last day of the month in which the 60-day notice expires.
(f)2
2 So in original. Probably should be “(e)”.
The President, by Executive order, may exempt an employee (other than a member of the Capitol Police or the Supreme Court Police) from automatic separation under this section when he determines the public interest so requires.(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 571; Pub. L. 92–297, § 4, May 16, 1972, 86 Stat. 144; Pub. L. 93–350, § 4, July 12, 1974, 88 Stat. 356; Pub. L. 95–256, § 5(c), Apr. 6, 1978, 92 Stat. 191; Pub. L. 96–70, title III, § 3302(e)(3), Sept. 27, 1979, 93 Stat. 498; Pub. L. 96–347, § 1(b), Sept. 12, 1980, 94 Stat. 1150; Pub. L. 101–428, § 2(b)(1)(A), (2), Oct. 15, 1990, 104 Stat. 928; Pub. L. 101–509, title V, § 529 [title IV, § 409(a)], Nov. 5, 1990, 104 Stat. 1427, 1468; Pub. L. 102–378, § 2(60), Oct. 2, 1992, 106 Stat. 1354; Pub. L. 103–283, title III, § 307(a), July 22, 1994, 108 Stat. 1441; Pub. L. 105–261, div. C, title XXXI, § 3154(d), Oct. 17, 1998, 112 Stat. 2255; Pub. L. 106–553, § 1(a)(2) [title III, § 308(b)(2)], Dec. 21, 2000, 114 Stat. 2762, 2762A–87; Pub. L. 106–554, § 1(a)(4) [div. B, title I, § 141(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–235; Pub. L. 107–27, § 2(a), Aug. 20, 2001, 115 Stat. 207; Pub. L. 107–67, title VI, § 640(a), Nov. 12, 2001, 115 Stat. 554; Pub. L. 108–7, div. J, title VI, § 648(a), Feb. 20, 2003, 117 Stat. 474; Pub. L. 108–176, title II, § 226(a)(3)(A), Dec. 12, 2003, 117 Stat. 2529; Pub. L. 108–447, div. B, title I, § 112(a), Dec. 8, 2004, 118 Stat. 2868; Pub. L. 108–458, title II, § 2005(a), Dec. 17, 2004, 118 Stat. 3704; Pub. L. 110–161, div. E, title V, § 535(a)(3), Dec. 26, 2007, 121 Stat. 2075; Pub. L. 111–259, title IV, § 444(a), Oct. 7, 2010, 124 Stat. 2733.)
§ 8336. Immediate retirement
(a) An employee who is separated from the service after becoming 55 years of age and completing 30 years of service is entitled to an annuity.
(b) An employee who is separated from the service after becoming 60 years of age and completing 20 years of service is entitled to an annuity.
(c)
(1) An employee who is separated from the service after becoming 50 years of age and completing 20 years of service as a law enforcement officer, firefighter, nuclear materials courier, or customs and border protection officer, or any combination of such service totaling at least 20 years, is entitled to an annuity.
(2) An employee is entitled to an annuity if the employee—
(A) was a law enforcement officer or firefighter employed by the Panama Canal Company or the Canal Zone Government at any time during the period beginning March 31, 1979, and ending September 30, 1979; and
(B) is separated from the service before January 1, 2000, after becoming 48 years of age and completing 18 years of service as a law enforcement officer or firefighter, or any combination of such service totaling at least 18 years.
(3)
(A) In this paragraph—
(i) the term “affected individual” means an individual covered under this subchapter who—(I) is performing service in a covered position;(II) while on duty, becomes ill or is injured as a direct result of the performance of such duties before the date on which the individual becomes entitled to an annuity under paragraph (1) of this subsection or subsection (e), (m), or (n), as applicable;(III) because of the illness or injury described in subclause (II), is permanently unable to render useful and efficient service in the employee’s covered position, as determined by the agency in which the individual was serving when such individual incurred the illness or injury; and(IV) is appointed to a position in the civil service that—(aa) is not a covered position; and(bb) is within an agency that regularly appoints individuals to supervisory or administrative positions related to the activities of the former covered position of the individual;
(ii) the term “covered position” means a position as a law enforcement officer, customs and border protection officer, firefighter, air traffic controller, nuclear materials courier, member of the Capitol Police, or member of the Supreme Court Police.
(B) Unless an affected individual files an election described in subparagraph (E), creditable service by the affected individual in a position described in subparagraph (A)(i)(IV) shall be treated as creditable service in a covered position for purposes of this chapter and determining the amount to be deducted and withheld from the pay of the affected individual under section 8334.
(C) Subparagraph (B) shall only apply if the affected employee transitions to a position described in subparagraph (A)(i)(IV) without a break in service exceeding 3 days.
(D) The service of an affected individual shall no longer be eligible for treatment under subparagraph (B) if such service occurs after the individual—
(i) is transferred to a supervisory or administrative position related to the activities of the former covered position of the individual; or
(ii) meets the age and service requirements that would subject the individual to mandatory separation under section 8335 if such individual had remained in the former covered position.
(E) In accordance with procedures established by the Director of the Office of Personnel Management, an affected individual may file an election to have any creditable service performed by the affected individual treated in accordance with this chapter without regard to subparagraph (B).
(F) Nothing in this paragraph shall be construed to apply to such affected individual any other pay-related laws or regulations applicable to a covered position.
(d) An employee who—
(1) is separated from the service involuntarily, except by removal for cause on charges of misconduct or delinquency; or
(2)
(A) has been employed continuously, by the agency in which the employee is serving, for at least the 31-day period ending on the date on which such agency requests the determination referred to in subparagraph (D);
(B) is serving under an appointment that is not time limited;
(C) has not been duly notified that such employee is to be involuntarily separated for misconduct or unacceptable performance;
(D) is separated from the service voluntarily during a period in which, as determined by the office 1
1 So in original. Probably should be capitalized.
of Personnel Management (upon request of the agency) under regulations prescribed by the Office—(i) such agency (or, if applicable, the component in which the employee is serving) is undergoing substantial delayering, substantial reorganization, substantial reductions in force, substantial transfer of function, or other substantial workforce restructuring (or shaping);
(ii) a significant percentage of employees servicing 2
2 So in original. Probably should be “serving”.
in such agency (or component) are likely to be separated or subject to an immediate reduction in the rate of basic pay (without regard to subchapter VI of chapter 53, or comparable provisions); or(iii) identified as being in positions which are becoming surplus or excess to the agency’s future ability to carry out its mission effectively; and
(E) as determined by the agency under regulations prescribed by the Office, is within the scope of the offer of voluntary early retirement, which may be made on the basis of—
(i) 1 or more organizational units;
(ii) 1 or more occupational series or levels;
(iii) 1 or more geographical locations;
(iv) specific periods;
(v) skills, knowledge, or other factors related to a position; or
(vi) any appropriate combination of such factors;
after completing 25 years of service or after becoming 50 years of age and completing 20 years of service is entitled to an annuity. For purposes of paragraph (1) of this subsection, separation for failure to accept a directed reassignment to a position outside the commuting area of the employee concerned or to accompany a position outside of such area pursuant to a transfer of function shall not be considered to be a removal for cause on charges of misconduct or delinquency. Notwithstanding the first sentence of this subsection, an employee described in paragraph (1) of this subsection is not entitled to an annuity under this subsection if the employee has declined a reasonable offer of another position in the employee’s agency for which the employee is qualified, which is not lower than 2 grades (or pay levels) below the employee’s grade (or pay level), and which is within the employee’s commuting area.
(e) An employee who is voluntarily or involuntarily separated from the service, except by removal for cause on charges of misconduct or delinquency, after completing 25 years of service as an air traffic controller or after becoming 50 years of age and completing 20 years of service as an air traffic controller, is entitled to an annuity.
(f) An employee who is separated from the service after becoming 62 years of age and completing 5 years of service is entitled to an annuity.
(g) A Member who is separated from the service after becoming 62 years of age and completing 5 years of civilian service or after becoming 60 years of age and completing 10 years of Member service is entitled to an annuity. A Member who is separated from the service after becoming 55 years of age (but before becoming 60 years of age) and completing 30 years of service is entitled to a reduced annuity. A Member who is separated from the service, except by resignation or expulsion, after completing 25 years of service or after becoming 50 years of age and (1) completing 20 years of service or (2) serving in 9 Congresses is entitled to an annuity.
(h)
(1) A member of the Senior Executive Service who is removed from the Senior Executive Service for less than fully successful executive performance (as determined under subchapter II of chapter 43 of this title) after completing 25 years of service or after becoming 50 years of age and completing 20 years of service is entitled to an annuity.
(2) A member of the Defense Intelligence Senior Executive Service or the Senior Cryptologic Executive Service who is removed from such service for failure to be recertified as a senior executive or for less than fully successful executive performance after completing 25 years of service or after becoming 50 years of age and completing 20 years of service is entitled to an annuity.
(3) A member of the Federal Bureau of Investigation and Drug Enforcement Administration Senior Executive Service who is removed from such service for failure to be recertified as a senior executive or for less than fully successful executive performance after completing 25 years of service or after becoming 50 years of age and completing 20 years of service is entitled to an annuity.
(i)
(1) An employee of the Panama Canal Commission or of an Executive agency conducting operations in the Canal Zone or Republic of Panama who is separated from the service before January 1, 2000, who was employed by the Canal Zone Government or the Panama Canal Company at any time during the period beginning March 31, 1979, and ending September 30, 1979, and who has had continuous Panama Canal service, without a break in service of more than 3 days, from that time until separation, is entitled to an annuity if the employee is separated—
(A) involuntarily, after completing 20 years of service or after becoming 48 years of age and completing 18 years of service, if the separation is a result of the implementation of any provision of the Panama Canal Treaty of 1977 and related agreements; or
(B) voluntarily, after completing 23 years of service or after becoming 48 years of age and completing 18 years of service.
(2) An employee of the Panama Canal Commission or of an Executive agency conducting operations in the Canal Zone or Republic of Panama who is separated from the service before January 1, 2000, who was employed, at a permanent duty station in the Canal Zone, by any Executive agency other than the Canal Zone Government or the Panama Canal Company at any time during the period beginning March 31, 1979, and ending September 30, 1979, and who has had continuous Panama Canal service, without a break in service of more than 3 days, from that time until separation, is entitled to an annuity if—
(A) the employee is separated involuntarily, after completing 20 years of service or after becoming 48 years of age and completing 18 years of service; and
(B) the separation is the result of the implementation of any provision of the Panama Canal Treaty of 1977 and related agreements.
(3) An employee of the Panama Canal Commission employed by that body after September 30, 1979, who is separated from the Panama Canal Commission before January 1, 2000, and who at the time of separation has a minimum of 11 years of continuous employment with the Commission (disregarding any break in service of 3 days or less) is entitled to an annuity if the employee is separated—
(A) involuntarily, after completing 20 years of service or after becoming 48 years of age and completing 18 years of service, if the separation is a result of the implementation of any provision of the Panama Canal Treaty of 1977 and related agreements; or
(B) voluntarily, after completing 23 years of service or after becoming 48 years of age and completing 18 years of service.
(4) For the purpose of this subsection—
(A) “Panama Canal service” means—
(i) service as an employee of the Canal Zone Government, the Panama Canal Company, or the Panama Canal Commission; or
(ii) service at a permanent duty station in the Canal Zone or Republic of Panama as an employee of an Executive agency conducting operations in the Canal Zone or the Republic of Panama; and
(B) “Executive agency” includes the United States District Court for the District of the Canal Zone and the Smithsonian Institution.
(j)
(1) Except as provided in paragraph (3), an employee is entitled to an annuity if he—
(A)
(i) is separated from the service after completing 25 years of service or after becoming 50 years of age and completing 20 years of service, or
(ii) is involuntarily separated, except by removal for cause on charges of misconduct or delinquency, during the 2-year period before the date on which he would meet the years of service and age requirements under clause (i),
(B) was employed in the Bureau of Indian Affairs, the Indian Health Service, a tribal organization (to the extent provided in paragraph (2)), or any combination thereof, continuously from December 21, 1972, to the date of his separation, and
(C) is not entitled to preference under the Indian preference laws.
(2) Employment in a tribal organization may be considered for purposes of paragraph (1)(B) of this subsection only if—
(A) the employee was employed by the tribal organization after January 4, 1975, and immediately before such employment he was an employee of the Bureau of Indian Affairs or the Indian Health Service, and
(B) at the time of such employment such employee and the tribal organization were eligible to elect, and elected, to have the employee retain the coverage, rights, and benefits of this chapter under section 105(e)(2) of the Indian Self-Determination Act (25 U.S.C. 450i(a)(2); 3
3 See References in Text note below.
88 Stat. 2209).(3)
(A) The provisions of paragraph (1) of this subsection shall not apply with respect to any separation of any employee which occurs after the date 10 years after—
(i) the date the employee first meets the years of service and age requirements of paragraph (1)(A)(i), or
(ii) the date of the enactment of this paragraph, if the employee met those requirements before that date.
(B) For purposes of applying this paragraph with respect to any employee of the Bureau of Indian Affairs in the Department of the Interior or of the Indian Health Service in the Department of Health, Education, and Welfare, the Secretary of the department involved may postpone the date otherwise applicable under subparagraph (A) if—
(i) such employee consents to such postponement, and
(ii) the Secretary finds that such postponement is necessary for the continued effective operation of the agency.
The period of any postponement under this subparagraph shall not exceed 12 months and the total period of all postponements with respect to any employee shall not exceed 5 years.
(4) For the purpose of this subsection—
(A) “Bureau of Indian Affairs” means (i) the Bureau of Indian Affairs and (ii) all other organizational units in the Department of the Interior directly and primarily related to providing services to Indians and in which positions are filled in accordance with the Indian preference laws.
(B) “Indian preference laws” means section 12 of the Act of June 18, 1934 (25 U.S.C. 472; 48 Stat. 986),3 or any other provision of law granting a preference to Indians in promotions or other Federal personnel actions.
(k) A bankruptcy judge, United States magistrate judge, or Court of Federal Claims judge who is separated from service, except by removal, after becoming 62 years of age and completing 5 years of civilian service, or after becoming 60 years of age and completing 10 years of service as a bankruptcy judge, United States magistrate judge, or Court of Federal Claims judge, is entitled to an annuity.
(l) A judge of the United States Court of Appeals for the Armed Forces who is separated from the service after becoming 62 years of age and completing 5 years of civilian service or after completing the term of service for which he was appointed as a judge of such court is entitled to an annuity. A judge who is separated from the service before becoming 60 years of age is entitled to a reduced annuity.
(m) A member of the Capitol Police who is separated from the service after becoming 50 years of age and completing 20 years of service as a member of the Capitol Police as a law enforcement officer, or as a customs and border protection officer, or any combination of such service totaling at least 20 years, is entitled to an annuity.
(n) A member of the Supreme Court Police who is separated from the service after becoming 50 years of age and completing 20 years of service as a member of the Supreme Court Police as a law enforcement officer, or as a customs and border protection officer, or any combination of such service totaling at least 20 years, is entitled to an annuity.
(o) An annuity or reduced annuity authorized by this section is computed under section 8339 of this title.
(p)
(1) The Secretary of Defense may, during fiscal years 2002 and 2003, carry out a program under which an employee of the Department of Defense may be separated from the service entitled to an immediate annuity under this subchapter if the employee—
(A) has—
(i) completed 25 years of service; or
(ii) become 50 years of age and completed 20 years of service; and
(B) is eligible for the annuity under paragraph (2) or (3).
(2)
(A) For the purposes of paragraph (1), an employee referred to in that paragraph is eligible for an immediate annuity under this paragraph if the employee—
(i) is separated from the service involuntarily other than for cause; and
(ii) has not declined a reasonable offer of another position in the Department of Defense for which the employee is qualified, which is not lower than 2 grades (or pay levels) below the employee’s grade (or pay level), and which is within the employee’s commuting area.
(B) For the purposes of paragraph (2)(A)(i), a separation for failure to accept a directed reassignment to a position outside the commuting area of the employee concerned or to accompany a position outside of such area pursuant to a transfer of function may not be considered to be a removal for cause.
(3) For the purposes of paragraph (1), an employee referred to in that paragraph is eligible for an immediate annuity under this paragraph if the employee satisfies all of the following conditions:
(A) The employee is separated from the service voluntarily during a period in which the organization within the Department of Defense in which the employee is serving is undergoing a major organizational adjustment.
(B) The employee has been employed continuously by the Department of Defense for more than 30 days before the date on which the head of the employee’s organization requests the determinations required under subparagraph (A).
(C) The employee is serving under an appointment that is not limited by time.
(D) The employee is not in receipt of a decision notice of involuntary separation for misconduct or unacceptable performance.
(E) The employee is within the scope of an offer of voluntary early retirement, as defined on the basis of one or more of the following objective criteria:
(i) One or more organizational units.
(ii) One or more occupational groups, series, or levels.
(iii) One or more geographical locations.
(iv) Any other similar objective and nonpersonal criteria that the Office of Personnel Management determines appropriate.
(4) Under regulations prescribed by the Office of Personnel Management, the determinations of whether an employee meets—
(A) the requirements of subparagraph (A) of paragraph (3) shall be made by the Office, upon the request of the Secretary of Defense; and
(B) the requirements of subparagraph (E) of such paragraph shall be made by the Secretary of Defense.
(5) A determination of which employees are within the scope of an offer of early retirement shall be made only on the basis of consistent and well-documented application of the relevant criteria.
(6) In this subsection, the term “major organizational adjustment” means any of the following:
(A) A major reorganization.
(B) A major reduction in force.
(C) A major transfer of function.
(D) A workforce restructuring—
(i) to meet mission needs;
(ii) to achieve one or more reductions in strength;
(iii) to correct skill imbalances; or
(iv) to reduce the number of high-grade, managerial, supervisory, or similar positions.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 571; Pub. L. 90–83, § 1(75), Sept. 11, 1967, 81 Stat. 214; Pub. L. 92–297, § 5, May 16, 1972, 86 Stat. 144; Pub. L. 92–382, Aug. 14, 1972, 86 Stat. 539; Pub. L. 93–39, June 12, 1973, 87 Stat. 73; Pub. L. 93–350, § 5, July 12, 1974, 88 Stat. 356; Pub. L. 94–183, § 2(40), (41), Dec. 31, 1975, 89 Stat. 1059; Pub. L. 95–454, title III, § 306, title IV, § 412(a), Oct. 13, 1978, 92 Stat. 1147, 1175; Pub. L. 96–70, title I, § 1241(a), Sept. 27, 1979, 93 Stat. 471; Pub. L. 96–135, § 1(a), Dec. 5, 1979, 93 Stat. 1056; Pub. L. 97–89, title VIII, § 803, Dec. 4, 1981, 95 Stat. 1161; Pub. L. 97–253, title III, § 308(a), Sept. 8, 1982, 96 Stat. 798; Pub. L. 98–94, title XII, § 1256(b), Sept. 24, 1983, 97 Stat. 701; Pub. L. 98–353, title I, § 116(c), July 10, 1984, 98 Stat. 344; Pub. L. 98–531, § 2(b), Oct. 19, 1984, 98 Stat. 2704; Pub. L. 98–615, title III, § 304(d), Nov. 8, 1984, 98 Stat. 3219; Pub. L. 99–190, § 101(d) [title III, § 315], Dec. 19, 1985, 99 Stat. 1224, 1266; Pub. L. 100–53, § 2(c), June 18, 1987, 101 Stat. 368; Pub. L. 100–325, § 2(l), May 30, 1988, 102 Stat. 582; Pub. L. 101–194, title V, § 506(b)(7), Nov. 30, 1989, 103 Stat. 1758; Pub. L. 101–428, § 2(a), Oct. 15, 1990, 104 Stat. 928; Pub. L. 101–510, div. C, title XXXV, § 3506(a), Nov. 5, 1990, 104 Stat. 1846; Pub. L. 101–650, title III, §§ 306(c)(3), 321, Dec. 1, 1990, 104 Stat. 5110, 5117; Pub. L. 102–572, title IX, § 902(b)(2), Oct. 29, 1992, 106 Stat. 4516; Pub. L. 103–337, div. A, title IX, § 924(d)(1)(A), Oct. 5, 1994, 108 Stat. 2832; Pub. L. 105–261, div. A, title XI, § 1109(a), div. C, title XXXI, § 3154(e), Oct. 17, 1998, 112 Stat. 2143, 2255; Pub. L. 106–58, title VI, § 651(b), Sept. 29, 1999, 113 Stat. 480; Pub. L. 106–398, § 1 [[div. A], title XI, § 1152(a)], Oct. 30, 2000, 114 Stat. 1654, 1654A–320; Pub. L. 106–553, § 1(a)(2) [title III, § 308(b)(3)], Dec. 21, 2000, 114 Stat. 2762, 2762A–87; Pub. L. 107–107, div. A, title X, § 1048(i)(5), Dec. 28, 2001, 115 Stat. 1229; Pub. L. 107–296, title XIII, §§ 1313(b)(1), 1321(a)(4)(A), Nov. 25, 2002, 116 Stat. 2294, 2297; Pub. L. 110–161, div. E, title V, § 535(a)(4), Dec. 26, 2007, 121 Stat. 2075; Pub. L. 117–225, § 3(a), Dec. 9, 2022, 136 Stat. 2293.)
§ 8336a. Phased retirement
(a) For the purposes of this section—
(1) the term “composite retirement annuity” means the annuity computed when a phased retiree attains full retirement status;
(2) the term “full retirement status” means that a phased retiree has ceased employment and is entitled, upon application, to a composite retirement annuity;
(3) the term “phased employment” means the less-than-full-time employment of a phased retiree;
(4) the term “phased retiree” means a retirement-eligible employee who—
(A) makes an election under subsection (b); and
(B) has not entered full retirement status;
(5) the term “phased retirement annuity” means the annuity payable under this section before full retirement;
(6) the term “phased retirement percentage” means the percentage which, when added to the working percentage for a phased retiree, produces a sum of 100 percent;
(7) the term “phased retirement period” means the period beginning on the date on which an individual becomes entitled to receive a phased retirement annuity and ending on the date on which the individual dies or separates from phased employment;
(8) the term “phased retirement status” means that a phased retiree is concurrently employed in phased employment and eligible to receive a phased retirement annuity;
(9) the term “retirement-eligible employee”—
(A) means an individual who, if the individual separated from the service, would meet the requirements for retirement under subsection (a) or (b) of section 8336; but
(B) does not include an employee described in section 8335 after the date on which the employee is required to be separated from the service by reason of such section; and
(10) the term “working percentage” means the percentage of full-time employment equal to the quotient obtained by dividing—
(A) the number of hours per pay period to be worked by a phased retiree, as scheduled in accordance with subsection (b)(2); by
(B) the number of hours per pay period to be worked by an employee serving in a comparable position on a full-time basis.
(b)
(1) With the concurrence of the head of the employing agency, and under regulations promulgated by the Director, a retirement-eligible employee who has been employed on a full-time basis for not less than the 3-year period ending on the date on which the retirement-eligible employee makes an election under this subsection may elect to enter phased retirement status.
(2)
(A) Subject to subparagraph (B), at the time of entering phased retirement status, a phased retiree shall be appointed to a position for which the working percentage is 50 percent.
(B) The Director may, by regulation, provide for working percentages different from the percentage specified under subparagraph (A), which shall be not less than 20 percent and not more than 80 percent.
(C) The working percentage for a phased retiree may not be changed during the phased retiree’s phased retirement period.
(D)
(i) Not less than 20 percent of the hours to be worked by a phased retiree shall consist of mentoring.
(ii) The Director may, by regulation, provide for exceptions to the requirement under clause (i).
(iii) Clause (i) shall not apply to a phased retiree serving in the United States Postal Service. Nothing in this clause shall prevent the application of clause (i) or (ii) with respect to a phased retiree serving in the Postal Regulatory Commission.
(3) A phased retiree—
(A) may not be employed in more than one position at any time; and
(B) may transfer to another position in the same or a different agency, only if the transfer does not result in a change in the working percentage.
(4) A retirement-eligible employee may make not more than one election under this subsection during the retirement-eligible employee’s lifetime.
(5) A retirement-eligible employee who makes an election under this subsection may not make an election under section 8343a.
(c)
(1) Except as otherwise provided under this subsection, the phased retirement annuity for a phased retiree is the product obtained by multiplying—
(A) the amount of an annuity computed under section 8339 that would have been payable to the phased retiree if, on the date on which the phased retiree enters phased retirement status, the phased retiree had separated from service and retired under section 8336(a) or (b); by
(B) the phased retirement percentage for the phased retiree.
(2) A phased retirement annuity shall be paid in addition to the basic pay for the position to which a phased retiree is appointed during phased employment.
(3) A phased retirement annuity shall be adjusted in accordance with section 8340.
(4)
(A) A phased retirement annuity shall not be subject to reduction for any form of survivor annuity, shall not serve as the basis of the computation of any survivor annuity, and shall not be subject to any court order requiring a survivor annuity to be provided to any individual.
(B) A phased retirement annuity shall be subject to a court order providing for division, allotment, assignment, execution, levy, attachment, garnishment, or other legal process on the same basis as other annuities.
(5) Any reduction of a phased retirement annuity based on an election under section 8334(d)(2) shall be applied to the phased retirement annuity after computation under paragraph (1).
(6)
(A) Any deposit, or election of an actuarial annuity reduction in lieu of a deposit, for military service or for creditable civilian service for which retirement deductions were not made or refunded shall be made by a retirement-eligible employee at or before the time the retirement-eligible employee enters phased retirement status. No such deposit may be made, or actuarial adjustment in lieu thereof elected, at the time a phased retiree enters full retirement status.
(B) Notwithstanding subparagraph (A), if a phased retiree does not make such a deposit and dies in service as a phased retiree, a survivor of the phased retiree shall have the same right to make such deposit as would have been available had the employee not entered phased retirement status and died in service.
(C) If a phased retiree makes an election for an actuarial annuity reduction under section 8334(d)(2) and dies in service as a phased retiree, the amount of any deposit upon which such actuarial reduction shall have been based shall be deemed to have been fully paid.
(7) A phased retirement annuity shall commence on the date on which a phased retiree enters phased employment.
(8) No unused sick leave credit may be used in the computation of the phased retirement annuity.
(d) All basic pay not in excess of the full-time rate of pay for the position to which a phased retiree is appointed shall be deemed to be basic pay for purposes of section 8334.
(e) Under such procedures as the Director may prescribe, a phased retiree may elect to enter full retirement status at any time. Upon making such an election, a phased retiree shall be entitled to a composite retirement annuity.
(f)
(1) Except as provided otherwise under this subsection, a composite retirement annuity is a single annuity computed under regulations prescribed by the Director, equal to the sum of—
(A) the amount of the phased retirement annuity as of the date of full retirement, before any reduction based on an election under section 8334(d)(2), and including any adjustments made under section 8340; and
(B) the product obtained by multiplying—
(i) the amount of an annuity computed under section 8339 that would have been payable at the time of full retirement if the individual had not elected a phased retirement and as if the individual was employed on a full-time basis in the position occupied during the phased retirement period and before any reduction for survivor annuity or reduction based on an election under section 8334(d)(2); by
(ii) the working percentage.
(2) After computing a composite retirement annuity under paragraph (1), the Director shall adjust the amount of the annuity for any applicable reductions for a survivor annuity and any previously elected actuarial reduction under section 8334(d)(2).
(3) A composite retirement annuity shall be adjusted in accordance with section 8340, except that subsection (c)(1) of that section shall not apply.
(4) In computing a composite retirement annuity under paragraph (1)(B)(i), the unused sick leave to the credit of a phased retiree at the time of entry into full retirement status shall be adjusted by dividing the number of hours of unused sick leave by the working percentage.
(g)
(1) Under such procedures and conditions as the Director may provide, and with the concurrence of the head of the employing agency, a phased retiree may elect to terminate phased retirement status and return to a full-time work schedule.
(2) Upon entering a full-time work schedule based upon an election under paragraph (1), the phased retirement annuity of a phased retiree shall terminate.
(3) After the termination of a phased retirement annuity under this subsection, the individual’s rights under this subchapter shall be determined based on the law in effect at the time of any subsequent separation from service. For purposes of this subchapter or chapter 84, at time of the subsequent separation from service, the phased retirement period shall be treated as if it had been a period of part-time employment with the work schedule described in subsection (b)(2).
(h) For purposes of section 8341—
(1) the death of a phased retiree shall be deemed to be the death in service of an employee; and
(2) the phased retirement period shall be deemed to have been a period of part-time employment with the work schedule described in subsection (b)(2).
(i) Employment of a phased retiree shall not be deemed to be part-time career employment, as defined in section 3401(2).
(j) A phased retiree is not eligible to apply for an annuity under section 8337.
(k) For purposes of section 8341(h)(4), retirement shall be deemed to occur on the date on which a phased retiree enters into full retirement status.
(l) For purposes of sections 8343 and 8351, and subchapter III of chapter 84, a phased retiree shall be deemed to be an employee.
(m) A phased retiree is not subject to section 8344.
(n) For purposes of chapter 87, a phased retiree shall be deemed to be receiving basic pay at the rate of a full-time employee in the position to which the phased retiree is appointed.
(Added Pub. L. 112–141, div. F, title I, § 100121(a)(2), July 6, 2012, 126 Stat. 907.)
§ 8337. Disability retirement
(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 is 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 reassignment is to a position in a different craft or is inconsistent with the terms of a collective bargaining agreement covering the employee. A judge of the United States Court of Appeals for the Armed Forces who completes 5 years of civilian service and who is found by the Office to be disabled for useful and efficient service as a judge of such court or who is removed for mental or physical disability under section 942(c) of title 10 shall be retired on the judge’s own application or upon such removal. A Member who completes 5 years of Member service and is found by the Office to be disabled for useful and efficient service as a Member because of disease or injury shall be retired on the Member’s own application. An annuity authorized by this section is computed under section 8339(g) of this title, unless the employee or Member is eligible for a higher annuity computed under section 8339(a) through (e), (n), (q), (r), or (s).
(b) A claim may be allowed under this section only if the application is filed with the Office before the employee or Member is separated from the service or within 1 year thereafter. This time limitation may be waived by the Office for an employee or Member who at the date of separation from service or within 1 year thereafter is mentally incompetent, if the application is filed with the Office within 1 year from the date of restoration of the employee or Member to competency or the appointment of a fiduciary, whichever is earlier.
(c) An annuitant receiving disability retirement annuity from the Fund shall be examined under the direction of the Office—
(1) at the end of 1 year from the date of the disability retirement; and
(2) annually thereafter until he becomes 60 years of age;
unless his disability is permanent in character. If the annuitant fails to submit to examination as required by this section, payment of the annuity shall be suspended until continuance of the disability is satisfactorily established.
(d) If an annuitant receiving disability retirement annuity from the Fund, before becoming 60 years of age, recovers from his disability, payment of the annuity terminates on reemployment by the Government or 1 year after the date of the medical examination showing the recovery, whichever is earlier. If an annuitant receiving disability retirement annuity from the Fund, before becoming 60 years of age, is restored to an earning capacity fairly comparable to the current rate of pay of the position occupied at the time of retirement, payment of the annuity terminates on reemployment by the Government or 180 days after the end of the calendar year in which earning capacity is so restored, whichever is earlier. Earning capacity is deemed restored if in any calendar year the income of the annuitant from wages or self-employment or both equals at least 80 percent of the current rate of pay of the position occupied immediately before retirement.
(e) If an annuitant whose annuity is terminated under subsection (d) of this section is not reemployed in a position in which he is subject to this subchapter, he is deemed, except for service credit, to have been involuntarily separated from the service for the purpose of this subchapter as of the date of termination of the disability annuity, and after that termination is entitled to annuity under the applicable provisions of this subchapter. If an annuitant whose annuity is heretofore or hereafter terminated because of an earning capacity provision of this subchapter or an earlier statute—
(1) is not reemployed in a position in which he is subject to this subchapter; and
(2) has not recovered from the disability for which he was retired;
his annuity shall be restored at the same rate effective the first of the year following any calendar year in which his income from wages or self-employment or both is less than 80 percent of the current rate of pay of the position occupied immediately before retirement. If an annuitant whose annuity is heretofore or hereafter terminated because of a medical finding that he has recovered from disability is not reemployed in a position in which he is subject to this subchapter, his annuity shall be restored at the same rate effective from the date of medical examination showing a recurrence of the disability. The second and third sentences of this subsection do not apply to an individual who has become 62 years of age and is receiving or is eligible to receive annuity under the first sentence of this subsection.
(f)
(1) An individual is not entitled to receive—
(A) an annuity under this subchapter, and
(B) compensation for injury to, or disability of, such individual under subchapter I of chapter 81, other than compensation payable under section 8107,
covering the same period of time.
(2) An individual is not entitled to receive an annuity under this subchapter and a concurrent benefit under subchapter I of chapter 81 on account of the death of the same person.
(3) Paragraphs (1) and (2) do not bar the right of a claimant to the greater benefit conferred by either this subchapter or subchapter I of chapter 81.
(g) If an individual is entitled to an annuity under this subchapter, and the individual receives a lump-sum payment for compensation under section 8135 based on the disability or death of the same person, so much of the compensation as has been paid for a period extended beyond the date payment of the annuity commences, as determined by the Department of Labor, shall be refunded to that Department for credit to the Employees’ Compensation Fund. Before the individual may receive the annuity, the individual shall—
(1) refund to the Department of Labor the amount representing the commuted compensation payments for the extended period; or
(2) authorize the deduction of the amount from the annuity.
Deductions from the annuity may be made from accrued or accruing payments. The amounts deducted and withheld from the annuity shall be transmitted to the Department of Labor for reimbursement to the Employees’ Compensation Fund. When the Department of Labor finds that the financial circumstances of an individual entitled to an annuity under this subchapter warrant deferred refunding, deductions from the annuity may be prorated against and paid from accruing payments in such manner as the Department determines appropriate.
(h)
(1) As used in this subsection, the term “technician” means an individual employed under section 709(a) of title 32 or section 10216 of title 10 who, as a condition of the employment, is required under section 709(b) of title 32 or section 10216 of title 10, respectively, to be a member of the Selected Reserve.
(2)
(A) Except as provided in subparagraph (B) of this paragraph, an individual shall be retired under this section if the individual—
(i) is separated from employment as a technician under section 709(e)(1) of title 32 or section 10216 of title 10 by reason of a disability that disqualifies the individual from membership in the Selected Reserve;
(ii) is not considered to be disabled under the second sentence of subsection (a) of this section;
(iii) is not appointed to a position in the Government (whether under paragraph (3) of this subsection or otherwise); and
(iv) has not declined an offer of an appointment to a position in the Government under paragraph (3) of this subsection.
(B) Payment of any annuity for an individual pursuant to this subsection terminates—
(i) on the date the individual is appointed to a position in the Government (whether pursuant to paragraph (3) of this subsection or otherwise);
(ii) on the date the individual declines an offer of appointment to a position in the Government under paragraph (3); or
(iii) as provided under subsection (d).
(3) Any individual applying for or receiving any annuity pursuant to this subsection shall, in accordance with regulations prescribed by the Office, be considered by any agency of the Government before any vacant position in the agency is filled if—
(A) the position is located within the commuting area of the individual’s former position;
(B) the individual is qualified to serve in such position, as determined by the head of the agency; and
(C) the position is at the same grade or equivalent level as the position from which the individual was separated under section 709(e)(1) of title 32 or section 10216 of title 10.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 572; Pub. L. 90–83, § 1(76), Sept. 11, 1967, 81 Stat. 214; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96–499, title IV, § 403(a), Dec. 5, 1980, 94 Stat. 2605; Pub. L. 97–253, title III, § 302(a), Sept. 8, 1982, 96 Stat. 792; Pub. L. 98–94, title XII, § 1256(c), Sept. 24, 1983, 97 Stat. 701; Pub. L. 100–238, title I, § 124(a)(1)(A), Jan. 8, 1988, 101 Stat. 1755; Pub. L. 101–189, div. A, title XIII, § 1304(b)(2), Nov. 29, 1989, 103 Stat. 1577; Pub. L. 101–428, § 2(d)(1), Oct. 15, 1990, 104 Stat. 929; Pub. L. 102–378, § 2(61), Oct. 2, 1992, 106 Stat. 1354; Pub. L. 103–337, div. A, title IX, § 924(d)(1)(A), Oct. 5, 1994, 108 Stat. 2832; Pub. L. 105–61, title V, § 516(a)(2), Oct. 10, 1997, 111 Stat. 1306; Pub. L. 106–65, div. A, title V, § 522(d), Oct. 5, 1999, 113 Stat. 597; Pub. L. 106–553, § 1(a)(2) [title III, § 308(h)(1)], Dec. 21, 2000, 114 Stat. 2762, 2762A–88.)
§ 8338. Deferred retirement
(a) An employee who is separated from the service or transferred to a position in which he does not continue subject to this subchapter after completing 5 years of civilian service is entitled to an annuity beginning at the age of 62 years.
(b) A Member who, after December 31, 1955, is separated from the service as a Member after completing 5 years of civilian service is entitled to an annuity beginning at the age of 62 years. A Member who is separated from the service after completing 10 or more years of Member service is entitled to an annuity beginning at the age of 60 years. A Member who is separated from the service after completing 20 or more years of service, including 10 or more years of Member service, is entitled to a reduced annuity beginning at the age of 50 years.
(c) A judge of the United States Court of Appeals for the Armed Forces who is separated from the service after completing 5 years of civilian service is entitled to an annuity beginning at the age of 62 years. A judge of such court who is separated from the service after completing the term of service for which he was appointed is entitled to an annuity. If an annuity is elected before the judge becomes 60 years of age, it shall be a reduced annuity.
(d) An annuity or reduced annuity authorized by this section is computed under section 8339 of this title.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 574; Pub. L. 90–83, § 1(77), Sept. 11, 1967, 81 Stat. 214; Pub. L. 98–94, title XII, § 1256(d), Sept. 24, 1983, 97 Stat. 702; Pub. L. 103–337, div. A, title IX, § 924(d)(1)(A), Oct. 5, 1994, 108 Stat. 2832.)
§ 8339. Computation of annuity
(a) Except as otherwise provided by this section, the annuity of an employee retiring under this subchapter is—
(1) 1½ percent of his average pay multiplied by so much of his total service as does not exceed 5 years; plus
(2) 1¾ percent of his average pay multiplied by so much of his total service as exceeds 5 years but does not exceed 10 years; plus
(3) 2 percent of his average pay multiplied by so much of his total service as exceeds 10 years.
However, when it results in a larger annuity, 1 percent of his average pay plus $25 is substituted for the percentage specified by paragraph (1), (2), or (3) of this subsection, or any combination thereof.
(span) The annuity of a Congressional employee, or former Congressional employee, retiring under this subchapter is computed under subsection (a) of this section, except, if he has had—
(1) at least 5 years’ service as a Congressional employee or Member or any combination thereof; and
(2) deductions withheld from his pay or has made deposit covering his last 5 years of civilian service;
his annuity is computed with respect to his service as a Congressional employee, his military service not exceeding 5 years, and any Member service, by multiplying 2½ percent of his average pay by the years of that service.
(c) The annuity of a Member, or former Member with title to Member annuity, retiring under this subchapter is computed under subsection (a) of this section, except, if he has had at least 5 years’ service as a Member or Congressional employee or any combination thereof, his annuity is computed with respect to—
(1) his service as a Member and so much of his military service as is creditable for the purpose of this paragraph; and
(2) his Congressional employee service;
by multiplying 2½ percent of his average pay by the years of that service.
(d)
(1) The annuity of an employee retiring under section 8335(span) or 8336(c) of this title is—
(A) 2½ percent of his average pay multiplied by so much of his total service as does not exceed 20 years; plus
(B) 2 percent of his average pay multiplied by so much of his total service as exceeds 20 years.
(2) The annuity of an employee retiring under this subchapter who was employed by the Panama Canal Company or Canal Zone Government on September 30, 1979, is computed with respect to the period of continuous Panama Canal service from that date, disregarding any break in service of not more than 3 days, by adding—
(A) 2½ percent of the employee’s average pay multiplied by so much of that service as does not exceed 20 years; plus
(B) 2 percent of the employee’s average pay multiplied by so much of that service as exceeds 20 years.
(3) The annuity of an employee retiring under this subchapter who is employed by the Panama Canal Commission at any time during the period beginning October 1, 1990, and ending December 31, 1999, is computed, with respect to any period of service with the Panama Canal Commission, by adding—
(A) 2½ percent of the employee’s average pay multiplied by so much of that service as does not exceed 20 years; plus
(B) 2 percent of the employee’s average pay multiplied by so much of that service as exceeds 20 years.
(4)
(A) In the case of an employee who has service as a law enforcement officer or firefighter to which paragraph (2) of this subsection applies, the annuity of that employee is increased by $8 for each full month of that service which is performed in the Republic of Panama.
(B) In the case of an employee retiring under this subchapter who—
(i) was employed as a law enforcement officer or firefighter by the Panama Canal Company or Canal Zone Government at any time during the period beginning March 31, 1979, and ending September 30, 1979; and
(ii) does not meet the age and service requirements of section 8336(c) of this title;
the annuity of that employee is increased by $12 for each full month of that service which occurred before October 1, 1979.
(C) An annuity increase under this paragraph does not apply with respect to service performed after completion of 20 years of service (or any combination of service) as a law enforcement officer or firefighter.
(5) For the purpose of this subsection—
(A) “Panama Canal service” means—
(i) service as an employee of the Panama Canal Commission; or
(ii) service at a permanent duty station in the Canal Zone or Republic of Panama as an employee of an Executive agency conducting operations in the Canal Zone or Republic of Panama; and
(B) “Executive agency” includes the Smithsonian Institution.
(6) The annuity of an employee retiring under section 8336(j) of this title is computed under subsection (a) of this section, except that with respect to service on or after December 21, 1972, the employee’s annuity is—
(A) 2½ percent of the employee’s average pay multiplied by so much of the employee’s service on or after that date as does not exceed 20 years; plus
(B) 2 percent of the employee’s average pay multiplied by so much of the employee’s service on or after that date as exceeds 20 years.
(7) The annuity of an employee who is a judge of the United States Court of Appeals for the Armed Forces, or a former judge of such court, retiring under this subchapter is computed under subsection (a) of this section, except, with respect to his service as a judge of such court, his service as a Member, his congressional employee service, and his military service (not exceeding 5 years) creditable under section 8332 of this title, his annuity is computed by multiplying 2½ percent of his average pay by the years of that service.
(e) The annuity of an employee retiring under section 8336(e) of this title is computed under subsection (a) of this section. That annuity may not be less than 50 percent of the average pay of the employee unless such employee has received, pursuant to section 8342 of this title, payment of the lump-sum credit attributable to deductions under section 8334(a) of this title during any period of employment as an air traffic controller and such employee has not deposited in the Fund the amount received, with interest, pursuant to section 8334(d)(1) of this title.
(f) The annuity computed under subsections (a) through (e), (n), (q), (r), and (s) may not exceed 80 percent of—
(1) the average pay of the employee; or
(2) the greatest of—
(A) the final basic pay of the Member;
(B) the average pay of the Member; or
(C) the final basic pay of the appointive position of a former Member who elects to have his annuity computed or recomputed under section 8344(d)(1) of this title.
(g) The annuity of an employee or Member retiring under section 8337 of this title is at least the smaller of—
(1) 40 percent of his average pay; or
(2) the sum obtained under subsections (a) through (c), (n), (q), (r), or (s) after increasing his service of the type last performed by the period elapsing between the date of separation and the date he becomes 60 years of age.
However, if an employee or Member retiring under section 8337 of this title is receiving retired pay or retainer pay for military service (except that specified in section 8332(c)(1) or (2) of this title) or pension or compensation from the Department of Veterans Affairs in lieu of such retired or retainer pay, the annuity of that employee or Member shall be computed under subsection (a), (span), (c), (n), (q), (r), or (s), as appropriate, excluding credit for military service from that computation. If the amount of the annuity so computed, plus the retired or retainer pay which is received, or which would be received but for the pension or compensation from the Department of Veterans Affairs in lieu of such retired or retainer pay, is less than the smaller of the annuity otherwise payable under paragraph (1) or (2) of this subsection, an amount equal to the difference shall be added to the annuity payable under subsection (a), (span), (c), (n), (q), (r), or (s), as appropriate.
(h) The annuity computed under subsections (a), (span), (d)(5), and (f) of this section for an employee retiring under section 8336(d), (h), (j), or (o) of this title is reduced by ⅙ of 1 percent for each full month the employee is under 55 years of age at the date of separation. The annuity computed under subsections (c) and (f) of this section for a Member retiring under the second or third sentence of section 8336(g) of this title or the third sentence of section 8338(span) of this title is reduced by 1⁄12 of 1 percent for each full month not in excess of 60 months, and ⅙ of 1 percent for each full month in excess of 60 months, the Member is under 60 years of age at the date of separation. The annuity computed under subsections (a), (d)(6), and (f) of this section for a judge of the United States Court of Appeals for the Armed Forces retiring under the second sentence of section 8336(k) of this title or the third sentence of section 8338(c) of this title is reduced by 1⁄12 of 1 percent for each full month not in excess of 60 months, and ⅙ of 1 percent for each full month in excess of 60 months, the judge is under 60 years of age at the date of separation.
(i) For the purposes of subsections (a)–(h), (n), (q), (r), or (s), the total service of any employee or Member shall not include any period of civilian service after July 31, 1920, for which retirement deductions or deposits have not been made under section 8334(a) of this title unless—
(1) the employee or Member makes a deposit for such period as provided in section 8334(c) or (d)(1) of this title; or
(2) no deposit is required for such service, as provided under section 8334(g) of this title or under any statute.
(j)
(1) The annuity computed under subsections (a)–(i), (n), (q), (r), and (s) (or a portion of the annuity, if jointly designated for this purpose by the employee or Member and the spouse of the employee or Member under procedures prescribed by the Office of Personnel Management) for an employee or Member who is married at the time of retiring under this subchapter is reduced as provided in paragraph (4) of this subsection in order to provide a survivor annuity for the spouse under section 8341(span) of this title, unless the employee or Member and the spouse jointly waive the spouse’s right to a survivor annuity in a written election filed with the Office at the time that the employee or Member retires. Each such election shall be made in accordance with such requirements as the Office shall, by regulation, prescribe, and shall be irrevocable. The Office shall provide, by regulation, that an employee or Member may waive the survivor annuity without the spouse’s consent if the employee or Member establishes to the satisfaction of the Office—
(A) that the spouse’s whereabouts cannot be determined, or
(B) that, due to exceptional circumstances, requiring the employee or Member to seek the spouse’s consent would otherwise be inappropriate.
(2) If an employee or Member has a former spouse who is entitled to a survivor annuity as provided in section 8341(h) of this title, the annuity of the employee or Member computed under subsections (a)–(i), (n), (q), (r), and (s) (or any designated portion of the annuity, in the event that the former spouse is entitled to less than 55 percent of the employee or Member’s annuity) is reduced as provided in paragraph (4) of this subsection.
(3) An employee or Member who has a former spouse may elect, under procedures prescribed by the Office, to have the annuity computed under subsections (a)–(i), (n), (q), (r), and (s) or a portion thereof reduced as provided in paragraph (4) of this subsection in order to provide a survivor annuity for such former spouse under section 8341(h) of this title, unless all rights to survivor benefits for such former spouse under this subchapter based on marriage to such employee or Member were waived under paragraph (1) of this subsection. An election under this paragraph shall be made at the time of retirement or, if later, within 2 years after the date on which the marriage of the former spouse to the employee or Member is dissolved, subject to a deposit in the Fund by the retired employee or Member of an amount determined by the Office, as nearly as may be administratively feasible, to reflect the amount by which the annuity of such employee or Member would have been reduced if the election had been continuously in effect since the date the annuity commenced, plus interest. For the purposes of the preceding sentence, the annual rate of interest for each year during which the annuity would have been reduced if the election had been in effect since the date the annuity commenced shall be 6 percent. The Office shall, by regulation, provide for payment of the deposit required under this paragraph by a reduction in the annuity of the employee or Member. The reduction shall, to the extent practicable, be designed so that the present value of the future reduction is actuarially equivalent to the deposit required under this paragraph, except that the total reductions in the annuity of an employee or Member to pay deposits required by the provisions of this paragraph, paragraph (5), or subsection (k)(2) shall not exceed 25 percent of the annuity computed under subsections (a) through (i), (n), (q), and (r), including adjustments under section 8340. The reduction, which shall be effective on the same date as the election under this paragraph, shall be permanent and unaffected by any future termination of the entitlement of the former spouse. Such reduction shall be independent of and in addition to the reduction required under the first sentence of this paragraph. An election under this paragraph—
(A) shall not be effective to the extent that it—
(i) conflicts with—(I) any court order or decree referred to in subsection (h)(1) of section 8341 of this title, which was issued before the date of such election; or(II) any agreement referred to in such subsection which was entered into before such date; or
(ii) would cause the total of survivor annuities payable under subsections (span), (d), (f), and (h) of section 8341 of this title based on the service of the employee or Member to exceed 55 percent of the annuity to which the employee or Member is entitled under subsections (a)–(i), (n), (q), (r), and (s); and
(B) shall not be effective, in the case of an employee or Member who is then married, unless it is made with the spouse’s written consent.
The Office shall provide by regulation that subparagraph (B) of this paragraph may be waived for either of the reasons set forth in the last sentence of paragraph (1) of this subsection. In the case of a retired employee or Member whose annuity is being reduced in order to provide a survivor annuity for a former spouse, an election to provide or increase a survivor annuity for any other former spouse (and to continue an appropriate reduction) may be made within the same period that, and subject to the same conditions under which, an election could be made under paragraph (5)(B) of this subsection for a current spouse (subject to the provisions of this paragraph relating to consent of a current spouse, if the retired employee or Member is then married). The opportunity to make an election under the preceding sentence is in addition to any opportunity otherwise afforded under this paragraph.
(4) In order to provide a survivor annuity or combination of survivor annuities under subsections (span), (d), (f), and (h) of section 8341 of this title, the annuity of an employee or Member (or any designated portion or portions thereof) is reduced by 2½ percent of the first $3,600 thereof plus 10 percent of so much thereof as exceeds $3,600.
(5)
(A) Any reduction in an annuity for the purpose of providing a survivor annuity for the current spouse of a retired employee or Member shall be terminated for each full month—
(i) after the death of the spouse, or
(ii) after the dissolution of the spouse’s marriage to the employee or Member, except that an appropriate reduction shall be made thereafter if the spouse is entitled, as a former spouse, to a survivor annuity under section 8341(h) of this title.
(B) Any reduction in an annuity for the purpose of providing a survivor annuity for a former spouse of a retired employee or Member shall be terminated for each full month after the former spouse remarries before reaching age 55 or dies. This reduction shall be replaced by an appropriate reduction or reductions under paragraph (4) of this subsection if the retired employee or Member has (i) another former spouse who is entitled to a survivor annuity under section 8341(h) of this title, (ii) a current spouse to whom the employee or Member was married at the time of retirement and with respect to whom a survivor annuity was not jointly waived under paragraph (1) of this subsection, or (iii) a current spouse whom the employee or Member married after retirement and with respect to whom an election has been made under subparagraph (C) of this paragraph or subsection (k)(2) of this section.
(C)
(i) Upon remarriage, a retired employee or Member who was married at the time of retirement (including an employee or Member whose annuity was not reduced to provide a survivor annuity for the employee or Member’s spouse or former spouse as of the time of retirement) may irrevocably elect during such marriage, in a signed writing received by the Office within 2 years after such remarriage or, if later, within 2 years after the death or remarriage of any former spouse of such employee or Member who was entitled to a survivor annuity under section 8341(h) of this title (or of the last such surviving former spouse, if there was more than one), a reduction in the employee or Member’s annuity under paragraph (4) of this subsection for the purpose of providing an annuity for such employee or Member’s spouse in the event such spouse survives the employee or Member.
(ii) Such election and reduction shall be effective the first day of the second month after the election is received by the Office, but not less than 9 months after the date of the remarriage, and the retired employee or Member shall deposit in the Fund an amount determined by the Office of Personnel Management, as nearly as may be administratively feasible, to reflect the amount by which the annuity of such retired employee or Member would have been reduced if the election had been in effect since the date of retirement or, if later, the date the previous reduction in such retired employee or Member’s annuity was terminated under subparagraph (A) or (B) of this paragraph, plus interest. For the purposes of the preceding sentence, the annual rate of interest for each year during which an annuity would have been reduced if the election had been in effect on and after the applicable date referred to in such sentence shall be 6 percent.
(iii) The Office shall, by regulation, provide for payment of the deposit required under clause (ii) by a reduction in the annuity of the employee or Member. The reduction shall, to the extent practicable, be designed so that the present value of the future reduction is actuarially equivalent to the deposit required under clause (ii), except that total reductions in the annuity of an employee or Member to pay deposits required by the provisions of this paragraph or paragraph (3) shall not exceed 25 percent of the annuity computed under subsections (a) through (i), (n), (q), and (r), including adjustments under section 8340. The reduction required by this clause, which shall be effective on the same date as the election under clause (i), shall be permanent and unaffected by any future termination of the marriage. Such reduction shall be independent of and in addition to the reduction required under clause (i).
(iv) Notwithstanding any other provision of this subparagraph, an election under this subparagraph may not be made for the purpose of providing an annuity in the case of a spouse by remarriage if such spouse was married to the employee or Member at the time of such employee or Member’s retirement, and all rights to survivor benefits for such spouse under this subchapter based on marriage to such employee or Member were then waived under paragraph (1) of this subsection or a similar prior provision of law.
(v) An election to provide a survivor annuity to a person under this subparagraph—(I) shall prospectively void any election made by the employee or Member under subsection (k)(1) of this section with respect to such person; or(II) shall, if an election was made by the employee or Member under such subsection (k)(1) with respect to a different person, prospectively void such election if appropriate written application is made by such employee or Member at the time of making the election under this subparagraph.
(vi) The deposit provisions of clauses (ii) and (iii) of this subparagraph shall not apply if—(I) the employee or Member makes an election under this subparagraph after having made an election under subsection (k)(1) of this section; and(II) the election under such subsection (k)(1) becomes void under clause (v) of this subparagraph.
(k)
(1) At the time of retiring under section 8336 or 8338 of this title, an employee or Member who is found to be in good health by the Office may elect a reduced annuity instead of an annuity computed under subsections (a)–(i), (n), (q), (r), and (s) and name in writing an individual having an insurable interest in the employee or Member to receive an annuity under section 8341(c) of this title after the death of the retired employee or Member. The annuity of the employee or Member making the election is reduced by 10 percent, and by 5 percent for each full 5 years the individual named is younger than the retiring employee or Member. However, the total reduction may not exceed 40 percent. An annuity which is reduced under this paragraph or any similar prior provision of law shall, effective the first day of the month following the death of the individual named under this paragraph, be recomputed and paid as if the annuity had not been so reduced. In the case of a married employee or Member, an election under this paragraph on behalf of the spouse may be made only if any right of such spouse to a survivor annuity based on the service of such employee or Member is waived in accordance with subsection (j)(1) of this section.
(2)
(A) An employee or Member, who is unmarried at the time of retiring under a provision of law which permits election of a reduced annuity with a survivor annuity payable to such employee or Member’s spouse and who later marries, may irrevocably elect, in a signed writing received in the Office within 2 years after such employee or Member marries or, if later, within 2 years after the death or remarriage of any former spouse of such employee or Member who was entitled to a survivor annuity under section 8341(h) of this title (or of the last such surviving former spouse, if there was more than one), a reduction in the retired employee or Member’s current annuity as provided in subsection (j) of this section.
(B)
(i) The election and reduction shall take effect on the first day of the first month beginning after the expiration of the 9-month period beginning on the date of marriage. Any such election to provide a survivor annuity for a person—(I) shall prospectively void any election made by the employee or Member under paragraph (1) of this subsection with respect to such person; or(II) shall, if an election was made by the employee or Member under such paragraph with respect to a different person, prospectively void such election if appropriate written application is made by such employee or Member at the time of making the election under this paragraph.
(ii) The retired employee or Member shall deposit in the Fund an amount determined by the Office of Personnel Management, as nearly as may be administratively feasible, to reflect the amount by which the retired employee or Member’s annuity would have been reduced under subsection (j)(4) of this section since the commencing date of the annuity, if the employee or Member had been married at the time of retirement and had elected to provide a survivor annuity at that time, plus interest. For the purposes of the preceding sentence, the annual rate of interest for each year during which the annuity would have been reduced if the election had been in effect since the date of the annuity commenced shall be 6 percent.
(C) The Office shall, by regulation, provide for payment of the deposit required under subparagraph (B)(ii) by a reduction in the annuity of the employee or Member. The reduction shall, to the extent practicable, be designed so that the present value of the future reduction is actuarially equivalent to the deposit required under subparagraph (B)(ii), except that total reductions in the annuity of an employee or Member to pay deposits required by this subsection or subsection (j)(3) shall not exceed 25 percent of the annuity computed under subsections (a) through (i), (n), (q), and (r), including adjustments under section 8340. The reduction required by this subparagraph, which shall be effective on the same date as the election under subparagraph (A), shall be permanent and unaffected by any future termination of the marriage. Such reduction shall be independent of and in addition to the reduction required under subparagraph (A).
(D) Subparagraphs (B)(ii) and (C) of this paragraph shall not apply if—
(i) the employee or Member makes an election under this paragraph after having made an election under paragraph (1) of this subsection; and
(ii) the election under such paragraph (1) becomes void under subparagraph (B)(i) of this paragraph.
(l) The annuity computed under subsections (a)–(k), (n), (q), (r), and (s) for an employee who is a citizen of the United States is increased by $36 for each year of service in the employ of—
(1) the Alaska Engineering Commission, or The Alaska Railroad, in Alaska between March 12, 1914, and July 1, 1923; or
(2) the Isthmian Canal Commission, or the Panama Railroad Company, on the Isthmus of Panama between May 4, 1904, and April 1, 1914.
(m) In computing any annuity under subsections (a) through (e), (n), (q), (r), and (s), the total service of an employee who retires on an immediate annuity or dies leaving a survivor or survivors entitled to annuity includes, without regard to the limitations imposed by subsection (f) of this section, the days of unused sick leave to his credit under a formal leave system, except that these days will not be counted in determining average pay or annuity eligibility under this subchapter. For the purpose of this subsection, in the case of any such employee who is excepted from subchapter I of chapter 63 of this title under section 6301(2)(x)–(xiii) of this title, the days of unused sick leave to his credit include any unused sick leave standing to his credit when he was excepted from such subchapter.
(n) The annuity of an employee who is a Court of Federal Claims judge, bankruptcy judge, or United States magistrate judge is computed, with respect to service as a Court of Federal Claims judge, as a commissioner of the Court of Claims, as a referee in bankruptcy, as a bankruptcy judge, as a United States magistrate judge, and as a United States commissioner, and with respect to the military service of any such individual (not exceeding 5 years) creditable under section 8332 of this title, by multiplying 2½ percent of the individual’s average pay by the years of that service.
(o)
(1)
(A) An employee or Member—
(i) who, at the time of retirement, is married, and
(ii) who notifies the Office at such time (in accordance with subsection (j)) that a survivor annuity under section 8341(span) of this title is not desired,
may, during the 18-month period beginning on the date of the retirement of such employee or Member, elect to have a reduction under subsection (j) made in the annuity of the employee or Member (or in such portion thereof as the employee or Member may designate) in order to provide a survivor annuity for the spouse of such employee or Member.
(B) An employee or Member—
(i) who, at the time of retirement, is married, and
(ii) who at such time designates (in accordance with subsection (j)) that a limited portion of the annuity of such employee or Member is to be used as the base for a survivor annuity under section 8341(span) of this title,
may, during the 18-month period beginning on the date of the retirement of such employee or Member, elect to have a greater portion of the annuity of such employee or Member so used.
(2)
(A) An election under subparagraph (A) or (B) of paragraph (1) of this subsection shall not be considered effective unless the amount specified in subparagraph (B) of this paragraph is deposited into the Fund before the expiration of the applicable 18-month period under paragraph (1).
(B) The amount to be deposited with respect to an election under this subsection is an amount equal to the sum of—
(i) the additional cost to the System which is associated with providing a survivor annuity under subsection (span)(2) of this section and results from such election taking into account (I) the difference (for the period between the date on which the annuity of the participant or former participant commences and the date of the election) between the amount paid to such participant or former participant under this subchapter and the amount which would have been paid if such election had been made at the time the participant or former participant applied for the annuity, and (II) the costs associated with providing for the later election; and
(ii) interest on the additional cost determined under clause (i) of this subparagraph computed using the interest rate specified or determined under
(3) An election by an employee or Member under this subsection voids prospectively any election previously made in the case of such employee or Member under subsection (j).
(4) An annuity which is reduced in connection with an election under this subsection shall be reduced by the same percentage reductions as were in effect at the time of the retirement of the employee or Member whose annuity is so reduced.
(5) Rights and obligations resulting from the election of a reduced annuity under this subsection shall be the same as the rights and obligations which would have resulted had the employee or Member involved elected such annuity at the time of retiring.
(6) The Office shall, on an annual basis, inform each employee or Member who is eligible to make an election under this subsection of the right to make such election and the procedures and deadlines applicable to such election.
(p)
(1) In computing an annuity under this subchapter for an employee whose service includes service that was performed on a part-time basis—
(A) the average pay of the employee, to the extent that it includes pay for service performed in any position on a part-time basis, shall be determined by using the annual rate of basic pay that would be payable for full-time service in the position; and
(B) the benefit so computed shall then be multiplied by a fraction equal to the ratio which the employee’s actual service, as determined by prorating an employee’s total service to reflect the service that was performed on a part-time basis, bears to the total service that would be creditable for the employee if all of the service had been performed on a full-time basis.
(2) For the purpose of this subsection, employment on a part-time basis shall not be considered to include employment on a temporary or intermittent basis.
(3) In the administration of paragraph (1)—
(A) subparagraph (A) of such paragraph shall apply with respect to service performed before, on, or after April 7, 1986; and
(B) subparagraph (B) of such paragraph—
(i) shall apply with respect to that portion of any annuity which is attributable to service performed on or after April 7, 1986; and
(ii) shall not apply with respect to that portion of any annuity which is attributable to service performed before April 7, 1986.
(q) The annuity of a member of the Capitol Police, or former member of the Capitol Police, retiring under this subchapter is computed in accordance with subsection (span), except that, in the case of a member who retires under section 8335(c) or 8336(m), and who meets the requirements of subsection (span)(2), the annuity of such member is—
(1) 2½ percent of the member’s average pay multiplied by so much of such member’s total service as does not exceed 20 years; plus
(2) 2 percent of the member’s average pay multiplied by so much of such member’s total service as exceeds 20 years.
(r) The annuity of a member of the Supreme Court Police, or former member of the Supreme Court Police, retiring under this subchapter is computed in accordance with subsection (d).
(s)1
1 So in original. Two subsecs. (s) have been enacted.
The annuity of a Member who has served in a position in the executive branch for which the rate of basic pay was reduced for the duration of the service of the Member in that position to remove the impediment to the appointment of the Member imposed by article I, section 6, clause 2 of the Constitution, shall, subject to a deposit in the Fund as provided under section 8334(m), be computed as though the rate of basic pay which would otherwise have been in effect during that period of service had been in effect.(s)
(1)1 For purposes of this subsection, the term “physicians comparability allowance” refers to an amount described in section 8331(3)(H).
(2) Except as otherwise provided in this subsection, no part of a physicians comparability allowance shall be treated as basic pay for purposes of any computation under this section unless, before the date of the separation on which entitlement to annuity is based, the separating individual has completed at least 15 years of service as a Government physician (whether performed before, on, or after the date of the enactment of this subsection).
(3) If the condition under paragraph (2) is met, then, any amounts received by the individual in the form of a physicians comparability allowance shall (for the purposes referred to in paragraph (2)) be treated as basic pay, but only to the extent that such amounts are attributable to service performed on or after the date of the enactment of this subsection, and only to the extent of the percentage allowable, which shall be determined as follows:
If the total amount of service performed, on or after the date of the enactment of this subsection, as a Government physician is: | Then, the percentage allowable is: |
|---|---|
Less than 2 years | 0 |
At least 2 but less than 4 years | 25 |
At least 4 but less than 6 years | 50 |
At least 6 but less than 8 years | 75 |
At least 8 years | 100. |
(4) Notwithstanding any other provision of this subsection, 100 percent of all amounts received as a physicians comparability allowance shall, to the extent attributable to service performed on or after the date of the enactment of this subsection, be treated as basic pay (without regard to any of the preceding provisions of this subsection) for purposes of computing—
(A) an annuity under subsection (g); and
(B) a survivor annuity under section 8341, if based on the service of an individual who dies before separating from service.
(u)2
2 So in original. No subsec. (t) has been enacted.
The annuity of an employee retiring under this subchapter with service credited under section 8332(span)(17) shall be reduced by the amount necessary to ensure that the present value of the annuity payable to the employee is actuarially equivalent to the present value of the annuity that would be payable to the employee under this subchapter if it were computed—(1) on the basis of service that does not include service credited under section 8332(span)(17); and
(2) assuming the employee separated from service on the actual date of the separation of the employee.
The amount of the reduction shall be computed under regulations prescribed by the Office of Personnel Management for the administration of this subsection.
(Puspan. L. 89–554, Sept. 6, 1966, 80 Stat. 574; Puspan. L. 90–83, § 1(78), Sept. 11, 1967, 81 Stat. 214; Puspan. L. 90–206, title II, § 224(span), Dec. 16, 1967, 81 Stat. 642; Puspan. L. 90–486, § 5(c), Aug. 13, 1968, 82 Stat. 757; Puspan. L. 91–93, title II, § 203, Oct. 20, 1969, 83 Stat. 139; Puspan. L. 91–658, § 2, Jan. 8, 1971, 84 Stat. 1961; Puspan. L. 92–297, §§ 6, 7(3), May 16, 1972, 86 Stat. 144; Puspan. L. 93–260, § 2(a), Apr. 9, 1974, 88 Stat. 76; Puspan. L. 93–350, § 6, July 12, 1974, 88 Stat. 356; Puspan. L. 93–474, § 1, Oct. 26, 1974, 88 Stat. 1438; Puspan. L. 94–126, § 1(span), Nov. 12, 1975, 89 Stat. 679; Puspan. L. 94–397, § 1(d), Sept. 3, 1976, 90 Stat. 1203; Puspan. L. 95–256, § 5(d), Apr. 6, 1978, 92 Stat. 191; Puspan. L. 95–317, §§ 1(a), (c), 2, July 10, 1978, 92 Stat. 382; Puspan. L. 95–454, title IV, § 412(span), title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1175, 1224; Puspan. L. 95–519, § 3, Oct. 25, 1978, 92 Stat. 1819; Puspan. L. 95–598, title III, § 338(a), Nov. 6, 1978, 92 Stat. 2681; Puspan. L. 96–54, § 2(a)(49), Aug. 14, 1979, 93 Stat. 384; Puspan. L. 96–70, title I, § 1242(a), Sept. 27, 1979, 93 Stat. 472; Puspan. L. 96–135, § 1(span), (c), Dec. 5, 1979, 93 Stat. 1057; Puspan. L. 96–391, § 1, Oct. 7, 1980, 94 Stat. 1557; Puspan. L. 96–499, title IV, § 404(a), Dec. 5, 1980, 94 Stat. 2606; Puspan. L. 97–253, title III, § 303(span), Sept. 8, 1982, 96 Stat. 794; Puspan. L. 97–276, § 151(f), Oct. 2, 1982, 96 Stat. 1202; Puspan. L. 98–94, title XII, § 1256(e), Sept. 24, 1983, 97 Stat. 702; Puspan. L. 98–249, § 3(a), Mar. 31, 1984, 98 Stat. 117; Puspan. L. 98–271, § 3(a), Apr. 30, 1984, 98 Stat. 163; Puspan. L. 98–299, § 3(a), May 25, 1984, 98 Stat. 214; Puspan. L. 98–325, § 3(a), June 20, 1984, 98 Stat. 268; Puspan. L. 98–353, title I, §§ 112, 116(d), 121(f), July 10, 1984, 98 Stat. 343, 344, 346; Puspan. L. 98–531, § 2(c), Oct. 19, 1984, 98 Stat. 2704; Puspan. L. 98–615, § 2(3), Nov. 8, 1984, 98 Stat. 3195; Puspan. L. 99–251, title II, § 203(a)–(c), title III, § 307(a), Fespan. 27, 1986, 100 Stat. 23, 24, 28; Puspan. L. 99–272, title XV, § 15204(a)(1), Apr. 7, 1986, 100 Stat. 334; Puspan. L. 100–53, § 2(d), June 18, 1987, 101 Stat. 368; Puspan. L. 101–194, title V, § 506(span)(8), Nov. 30, 1989, 103 Stat. 1759; Puspan. L. 101–428, § 2(c)(1), (d)(2)–(6), Oct. 15, 1990, 104 Stat. 928, 929; Puspan. L. 101–508, title VII, § 7001(span)(2)(B), (C), Nov. 5, 1990, 104 Stat. 1388–329; Puspan. L. 101–510, div. C, title XXXV, § 3506(span), Nov. 5, 1990, 104 Stat. 1847; Puspan. L. 101–650, title III, §§ 306(c)(4), 321, Dec. 1, 1990, 104 Stat. 5110, 5117; Puspan. L. 102–54, § 13(span)(4), June 13, 1991, 105 Stat. 274; Puspan. L. 102–198, § 7(span), Dec. 9, 1991, 105 Stat. 1624; Puspan. L. 102–378, § 2(62), Oct. 2, 1992, 106 Stat. 1354; Puspan. L. 102–572, title IX, § 902(span)(2), Oct. 29, 1992, 106 Stat. 4516; Puspan. L. 103–66, title XI, § 11004(a)(1), (2), Aug. 10, 1993, 107 Stat. 410, 411; Puspan. L. 103–337, div. A, title IX, § 924(d)(1)(A), Oct. 5, 1994, 108 Stat. 2832; Puspan. L. 104–106, div. A, title XV, § 1505(span)(3), Fespan. 10, 1996, 110 Stat. 514; Puspan. L. 105–61, title V, § 516(a)(3), Oct. 10, 1997, 111 Stat. 1306; Puspan. L. 105–261, div. A, title XI, § 1109(c)(1), Oct. 17, 1998, 112 Stat. 2145; Puspan. L. 106–58, title VI, § 651(span), Sept. 29, 1999, 113 Stat. 480; Puspan. L. 106–398, § 1 [[div. A], title X, § 1087(f)(4), title XI, § 1152(c)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–293, 1654A–322; Puspan. L. 106–553, § 1(a)(2) [title III, § 308(span)(4), (h)(2)–(6)], Dec. 21, 2000, 114 Stat. 2762, 2762A–87 to 2762A–89; Puspan. L. 106–554, § 1(a)(4) [div. B, title I, § 141(span)], Dec. 21, 2000, 114 Stat. 2763, 2763A–235; Puspan. L. 106–571, § 3(span)(1), Dec. 28, 2000, 114 Stat. 3055; Puspan. L. 107–107, div. A, title XI, § 1132(a)(3), Dec. 28, 2001, 115 Stat. 1243; Puspan. L. 107–296, title XIII, § 1321(a)(4)(B), Nov. 25, 2002, 116 Stat. 2297; Puspan. L. 111–84, div. A, title XIX, § 1903(a), Oct. 28, 2009, 123 Stat. 2616.)
§ 8340. Cost-of-living adjustment of annuities
(a) For the purpose of this section—
(1) the term “base quarter”, as used with respect to a year, means the calendar quarter ending on September 30, of such year; and
(2) the price index for a base quarter is the arithmetical mean of such index for the 3 months comprising such quarter.
(b) Except as provided in subsection (c) of this section, effective December 1 of each year, each annuity payable from the Fund having a commencing date not later than such December 1 shall be increased by the percent change in the price index for the base quarter of such year over the price index for the base quarter of the preceding year in which an adjustment under this subsection was made, adjusted to the nearest ⅒ of 1 percent.
(c) Eligibility for an annuity increase under this section is governed by the commencing date of each annuity payable from the Fund as of the effective date of an increase, except as follows:
(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, to the widow, widower, or former spouse,1
1 So in original. The comma probably should not appear.
of a deceased employee or Member, or to the widow, widower, former spouse, or insurable interest designee of a deceased annuitant whose annuity has not been increased under this subsection or subsection (b) of this section, shall be equal to the product (adjusted to the nearest ⅒ of 1 percent) of—(A)1⁄12 of the applicable percent change computed under subsection (b) of this section, multiplied by
(B) the number of months (not to exceed 12 months, counting any portion of a month as a month)—
(i) for which the annuity was payable from the Fund before the effective date of the increase, or
(ii) in the case of a widow, widower, former spouse, or insurable interest designee of a deceased annuitant whose annuity has not been so increased, since the annuity was first payable to the deceased annuitant.
(2) Effective from its commencing date, an annuity payable from the Fund to an annuitant’s survivor (except a child entitled under section 8341(e) of this title), which annuity commences the day after the death of the annuitant and after the effective date of the first increase under this section, shall be increased by the total percent increase the annuitant was receiving under this section at death. However, the increase in a survivor annuity authorized by section 8 of the Act of May 29, 1930, as amended to July 6, 1950, shall be computed as if the annuity commencing date had been the effective date of the first increase under this section.
(3) For the purpose of computing the annuity of a child under section 8341(e) of this title that commences after October 31, 1969, the items $900, $1,080, $2,700, and $3,240 appearing in section 8341(e) of this title shall be increased by the total percent increases allowed and in force under this section on or after such day and, in case of a deceased annuitant, the items 60 percent and 75 percent appearing in section 8341(e) of this title shall be increased by the total percent allowed and in force to the annuitant under this section on or after such day.
(d) This section does not authorize an increase in an additional annuity purchased at retirement by voluntary contributions.
(e) The monthly installment of annuity after adjustment under this section shall be rounded to the next lowest dollar. However, the monthly installment shall after adjustment reflect an increase of at least $1.
(f) Effective September 1, 1966, or on the commencing date of annuity, whichever is later, the annuity of each surviving spouse whose entitlement to annuity payable from the Fund resulted from the death of—
(1) an employee or Member before October 11, 1962; or
(2) a retired employee or Member whose retirement was based on a separation from service before October 11, 1962;
is increased by 10 percent.
(g)
(1) An annuity shall not be increased by reason of any adjustment under this section to an amount which exceeds the greater of—
(A) the maximum pay payable for GS–15 30 days before the effective date of the adjustment under this section; or
(B) the final pay (or average pay, if higher) of the employee or Member with respect to whom the annuity is paid, increased by the overall annual average percentage adjustments (compounded) in rates of pay of the General Schedule under subchapter I of chapter 53 of this title during the period—
(i) beginning on the date the annuity commenced (or, in the case of a survivor of the retired employee or Member, the date the employee’s or Member’s annuity commenced), and
(ii) ending on the effective date of the adjustment under this section.
(2) For the purposes of paragraph (1) of this subsection, “pay” means the rate of salary or basic pay as payable under any provision of law, including any provision of law limiting the expenditure of appropriated funds.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 576; Pub. L. 90–83, § 1(79), Sept. 11, 1967, 81 Stat. 215; Pub. L. 91–93, title II, § 204, Oct. 20, 1969, 83 Stat. 139; Pub. L. 93–136, § 1, Oct. 24, 1973, 87 Stat. 490; Pub. L. 94–126, § 2(b), Nov. 12, 1975, 89 Stat. 679; Pub. L. 94–183, § 2(35), Dec. 31, 1975, 89 Stat. 1058; Pub. L. 94–440, title XIII, § 1306(a), (c)(1), Oct. 1, 1976, 90 Stat. 1462; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96–499, title IV, § 401(a), Dec. 5, 1980, 94 Stat. 2605; Pub. L. 97–35, title XVII, § 1702(a), (b), Aug. 13, 1981, 95 Stat. 754; Pub. L. 97–253, title III, §§ 304(a), 309(a), Sept. 8, 1982, 96 Stat. 795, 798; Pub. L. 98–270, title II, § 201(a), Apr. 18, 1984, 98 Stat. 157; Pub. L. 98–369, div. B, title II, § 2201(b), July 18, 1984, 98 Stat. 1058; Pub. L. 99–251, title II, § 204, Feb. 27, 1986, 100 Stat. 25.)
§ 8341. Survivor annuities
(a) For the purpose of this section—
(1) “widow” means the surviving wife of an employee or Member who—
(A) was married to him for at least 9 months immediately before his death; or
(B) is the mother of issue by that marriage;
(2) “widower” means the surviving husband of an employee or Member who—
(A) was married to her for at least 9 months immediately before her death; or
(B) is the father of issue by that marriage;
(3) “dependent”, in the case of any child, means that the employee or Member involved was, at the time of the employee or Member’s death, either living with or contributing to the support of such child, as determined in accordance with such regulations as the Office of Personnel Management shall prescribe; and
(4) “child” means—
(A) an unmarried dependent child under 18 years of age, including (i) an adopted child, and (ii) a stepchild but only if the stepchild lived with the employee or Member in a regular parent-child relationship, and (iii) a recognized natural child, and (iv) a child who lived with and for whom a petition of adoption was filed by an employee or Member, and who is adopted by the surviving spouse of the employee or Member after his death;
(B) such unmarried dependent child regardless of age who is incapable of self-support because of mental or physical disability incurred before age 18; or
(C) such unmarried dependent child between 18 and 22 years of age who is a student regularly pursuing a full-time course of study or training in residence in a high school, trade school, technical or vocational institute, junior college, college, university, or comparable recognized educational institution.
For the purpose of this paragraph and subsection (e) of this section, a child whose 22nd birthday occurs before July 1 or after August 31 of a calendar year, and while he is regularly pursuing such a course of study or training, is deemed to have become 22 years of age on the first day of July after that birthday. A child who is a student is deemed not to have ceased to be a student during an interim between school years if the interim is not more than 5 months and if he shows to the satisfaction of the Office of Personnel Management that he has a bona fide intention of continuing to pursue a course of study or training in the same or different school during the school semester (or other period into which the school year is divided) immediately after the interim.
(b)
(1) Except as provided in paragraph (2) of this subsection, if an employee or Member dies after having retired under this subchapter and is survived by a widow or widower, the widow or widower is entitled to an annuity equal to 55 percent (or 50 percent if retired before October 11, 1962) of an annuity computed under section 8339(a)–(i), (n), (p), (q), (r), and (s) as may apply with respect to the annuitant, or of such portion thereof as may have been designated for this purpose under section 8339(j)(1) of this title, unless the right to a survivor annuity was waived under such section 8339(j)(1) or, in the case of remarriage, the employee or Member did not file an election under section 8339(j)(5)(C) or section 8339(k)(2) of this title, as the case may be.
(2) If an annuitant—
(A) who retired before April 1, 1948; or
(B) who elected a reduced annuity provided in paragraph (2) of section 8339(k) of this title;
dies and is survived by a widow or widower, the widow or widower is entitled to an annuity in an amount which would have been paid had the annuitant been married to the widow or widower at the time of retirement.
(3) A spouse acquired after retirement is entitled to a survivor annuity under this subsection only upon electing this annuity instead of any other survivor benefit to which he may be entitled under this subchapter or another retirement system for Government employees. The annuity of the widow or widower under this subsection commences on the day after the annuitant dies. This annuity and the right thereto terminate on the last day of the month before the widow or widower—
(A) dies; or
(B) except as provided in subsection (k), remarries before becoming 55 years of age.
(4) Notwithstanding the preceding provisions of this subsection, the annuity payable under this subsection to the widow or widower of a retired employee or Member may not exceed the difference between—
(A) the amount which would otherwise be payable to such widow or widower under this subsection (determined without regard to any waiver or designation under section 8339(j)(1) of this title or a prior similar provision of law), and
(B) the amount of the survivor annuity payable to any former spouse of such employee or Member under subsection (h) of this section.
(c) The annuity of a survivor named under section 8339(k)(1) of this title is 55 percent of the reduced annuity of the retired employee or Member. The annuity of the survivor commences on the day after the retired employee or Member dies. This annuity and the right thereto terminate on the last day of the month before the survivor dies.
(d) If an employee or Member dies after completing at least 18 months of civilian service, his widow or widower is entitled to an annuity equal to 55 percent of an annuity computed under section 8339(a)–(f), (i), (n), (p), (q), (r), and (s) as may apply with respect to the employee or Member, except that, in the computation of the annuity under such section, the annuity of the employee or Member shall be at least the smaller of—
(1) 40 percent of his average pay; or
(2) the sum obtained under such section after increasing his service of the type last performed by the period elapsing between the date of death and the date he would have become 60 years of age.
Notwithstanding the preceding sentence, the annuity payable under this subsection to the widow or widower of an employee or Member may not exceed the difference between—
(A) the amount which would otherwise be payable to such widow or widower under this subsection, and
(B) the amount of the survivor annuity payable to any former spouse of such employee or Member under subsection (h) of this section.
The annuity of the widow or widower commences on the day after the employee or Member dies. This annuity and the right thereto terminate on the last day of the month before the widow or widower—
(i) dies; or
(ii) except as provided in subsection (k), remarries before becoming 55 years of age.
(e)
(1) For the purposes of this subsection, “former spouse” includes a former spouse who was married to an employee or Member for less than 9 months and a former spouse of an employee or Member who completed less than 18 months of service covered by this subchapter.
(2) If an employee or Member dies after completing at least 18 months of civilian service, or an employee or Member dies after retiring under this subchapter, and is survived by a spouse or a former spouse who is the natural or adoptive parent of a surviving child of the employee or Member, that surviving child is entitled to an annuity equal to the smallest of—
(A) 60 percent of the average pay of the employee or Member divided by the number of children;
(B) $900; or
(C) $2,700 divided by the number of children;
subject to section 8340 of this title. If the employee or Member is not survived by a spouse or a former spouse who is the natural or adoptive parent of a surviving child of the employee or Member, that surviving child is entitled to an annuity equal to the smallest of—
(i) 75 percent of the average pay of the employee or Member divided by the number of children;
(ii) $1,080; or
(iii) $3,240 divided by the number of children;
subject to section 8340 of this title.
(3) The annuity of a child under this subchapter or under the Act of May 29, 1930, as amended from and after February 28, 1948, commences on the day after the employee or Member dies, or commences or resumes on the first day of the month in which the child later becomes or again becomes a student as described by subsection (a)(3) of this section, if any lump sum paid is returned to the Fund. This annuity and the right thereto terminate on the last day of the month before the child—
(A) becomes 18 years of age unless he is then a student as described or incapable of self-support;
(B) becomes capable of self-support after becoming 18 years of age unless he is then such a student;
(C) becomes 22 years of age if he is then such a student and capable of self-support;
(D) ceases to be such a student after becoming 18 years of age unless he is then incapable of self-support; or
(E) dies or marries;
whichever first occurs. On the death of the surviving spouse or former spouse or termination of the annuity of a child, the annuity of any other child or children shall be recomputed and paid as though the spouse, former spouse, or child had not survived the employee or Member.
(4) If the annuity of a child under this subchapter terminates under paragraph (3)(E) because of marriage, then, if such marriage ends, such annuity shall resume on the first day of the month in which it ends, but only if—
(A) any lump sum paid is returned to the Fund; and
(B) that individual is not otherwise ineligible for such annuity.
(f) If a Member heretofore or hereafter separated from the service with title to deferred annuity from the Fund hereafter dies before having established a valid claim for annuity and is survived by a spouse to whom married at the date of separation, the surviving spouse—
(1) is entitled to an annuity equal to 55 percent of the deferred annuity of the Member commencing on the day after the Member dies and terminating on the last day of the month before the surviving spouse dies or remarries; or
(2) may elect to receive the lump-sum credit instead of annuity if the spouse is the individual who would be entitled to the lump-sum credit and files application therefor with the Office before the award of the annuity.
Notwithstanding the preceding sentence, an annuity payable under this subsection to the surviving spouse of a Member may not exceed the difference between—
(A) the annuity which would otherwise be payable to such surviving spouse under this subsection, and
(B) the amount of the survivor annuity payable to any former spouse of such Member under subsection (h) of this section.
(g) In the case of a surviving spouse whose annuity under this section is terminated because of remarriage before becoming 55 years of age, annuity at the same rate shall be restored commencing on the day the remarriage is dissolved by death, annulment, or divorce, if—
(1) the surviving spouse elects to receive this annuity instead of a survivor benefit to which he may be entitled, under this subchapter or another retirement system for Government employees, by reason of the remarriage; and
(2) any lump sum paid on termination of the annuity is returned to the Fund.
(h)
(1) Subject to paragraphs (2) through (5) of this subsection, a former spouse of a deceased employee, Member, annuitant, or former Member who was separated from the service with title to a deferred annuity under section 8338(b) of this title is entitled to a survivor annuity under this subsection, if and to the extent expressly provided for in an election under section 8339(j)(3) of this title, or in the terms of any decree of divorce or annulment or any court order or court-approved property settlement agreement incident to such decree.
(2)
(A) The annuity payable to a former spouse under this subsection may not exceed the difference between—
(i) the amount applicable in the case of such former spouse, as determined under subparagraph (B) of this paragraph, and
(ii) the amount of any annuity payable under this subsection to any other former spouse of the employee, Member, or annuitant, based on an election previously made under section 8339(j)(3) of this title, or a court order previously issued.
(B) The applicable amount, for purposes of subparagraph (A)(i) of this paragraph in the case of a former spouse, is the amount which would be applicable—
(i) under subsection (b)(4)(A) of this section in the case of a widow or widower, if the deceased was an employee or Member who died after retirement;
(ii) under subparagraph (A) of subsection (d) of this section in the case of a widow or widower, if the deceased was an employee or Member described in the first sentence of such subsection; or
(iii) under subparagraph (A) of subsection (f) of this section in the case of a surviving spouse, if the deceased was a Member described in the first sentence of such subsection.
(3) The commencement and termination of an annuity payable under this subsection shall be governed by the terms of the applicable order, decree, agreement, or election, as the case may be, except that any such annuity—
(A) shall not commence before—
(i) the day after the employee, Member, or annuitant dies, or
(ii) the first day of the second month beginning after the date on which the Office receives written notice of the order, decree, agreement, or election, as the case may be, together with such additional information or documentation as the Office may prescribe,
whichever is later, and
(B) shall terminate—
(i) except as provided in subsection (k), in the case of an annuity computed by reference to clause (i) or (ii) of paragraph (2)(B) of this subsection, no later than the last day of the month before the former spouse remarries before becoming 55 years of age or dies; or
(ii) in the case of an annuity computed by reference to clause (iii) of such paragraph, no later than the last day of the month before the former spouse remarries or dies.
(4) For purposes of this subchapter, a modification in a decree, order, agreement, or election referred to in paragraph (1) of this subsection shall not be effective—
(A) if such modification is made after the retirement or death of the employee or Member concerned, and
(B) to the extent that such modification involves an annuity under this subsection.
(5) For purposes of this subchapter, a decree, order, agreement, or election referred to in paragraph (1) of this subsection shall not be effective, in the case of a former spouse, to the extent that it is inconsistent with any joint designation or waiver previously executed with respect to such former spouse under section 8339(j)(1) of this title or a similar prior provision of law.
(6) Any payment under this subsection to a person bars recovery by any other person.
(7) As used in this subsection, “court” means any court of any State, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, or the Virgin Islands, and any Indian court.
(i) The requirement in subsections (a)(1)(A) and (a)(2)(A) of this section that the surviving spouse of an employee or Member have been married to such employee or Member for at least 9 months immediately before the employee or Member’s death in order to qualify as the widow or widower of such employee or Member shall be deemed satisfied in any case in which the employee or Member dies within the applicable 9-month period, if—
(1) the death of the employee or Member was accidental; or
(2) the surviving spouse of such individual had been previously married to the individual and subsequently divorced, and the aggregate time married is at least 9 months.
(k)
(1)1
1 So in original. No subsec. (j) has been enacted.
Subsections (b)(3)(B), (d)(ii), and (h)(3)(B)(i) (to the extent that they provide for termination of a survivor annuity because of a remarriage before age 55) shall not apply if the widow, widower, or former spouse was married for at least 30 years to the individual on whose service the survivor annuity is based.(2) A remarriage described in paragraph (1) shall not be taken into account for purposes of section 8339(j)(5)(B) or (C) or any other provision of this chapter which the Office may by regulation identify in order to carry out the purposes of this subsection.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 577; Pub. L. 90–83, § 1(80), Sept. 11, 1967, 81 Stat. 216; Pub. L. 91–93, title II, § 206, Oct. 20, 1969, 83 Stat. 140; Pub. L. 91–658, § 3, Jan. 8, 1971, 84 Stat. 1961; Pub. L. 92–243, § 1, Mar. 9, 1972, 86 Stat. 56; Pub. L. 92–297, § 7(4), May 16, 1972, 86 Stat. 145; Pub. L. 93–260, § 1(a), Apr. 9, 1974, 88 Stat. 76; Pub. L. 94–183, § 2(36), Dec. 31, 1975, 89 Stat. 1058; Pub. L. 95–317, § 1(b), July 10, 1978, 92 Stat. 382; Pub. L. 95–318, § 2, July 10, 1978, 92 Stat. 384; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 95–598, title III, § 338(c), Nov. 6, 1978, 92 Stat. 2681; Pub. L. 96–179, § 1, Jan. 2, 1980, 93 Stat. 1299; Pub. L. 98–353, title I, § 112, July 10, 1984, 98 Stat. 343; Pub. L. 98–615, § 2(4), Nov. 8, 1984, 98 Stat. 3199; Pub. L. 99–251, title II, §§ 205–207, Feb. 27, 1986, 100 Stat. 25; Pub. L. 99–272, title XV, § 15204(a)(2), Apr. 7, 1986, 100 Stat. 335; Pub. L. 101–428, § 2(d)(7), Oct. 15, 1990, 104 Stat. 929; Pub. L. 102–378, § 2(63), Oct. 2, 1992, 106 Stat. 1354; Pub. L. 104–208, div. A, title I, § 101(f) [title VI, § 633(a)(1)], Sept. 30, 1996, 110 Stat. 3009–314, 3009–362; Pub. L. 105–61, title V, §§ 516(a)(4), 518(a), Oct. 10, 1997, 111 Stat. 1306, 1307; Pub. L. 106–553, § 1(a)(2) [title III, § 308(h)(7)], Dec. 21, 2000, 114 Stat. 2762, 2762A–89.)
§ 8342. Lump-sum benefits; designation of beneficiary; order of precedence
(a) Subject to subsection (j) of this section, an employee or Member who—
(1)
(A) is separated from the service for at least thirty-one consecutive days; or
(B) is transferred to a position in which he is not subject to this subchapter, or chapter 84 of this title, and remains in such a position for at least thirty-one consecutive days;
(2) files an application with the Office of Personnel Management for payment of the lump-sum credit;
(3) is not reemployed in a position in which he is subject to this subchapter, or chapter 84 of this title, at the time he files the application; and
(4) will not become eligible to receive an annuity within thirty-one days after filing the application,
is entitled to be paid the lump-sum credit. Except as provided in section 8343a or 8334(d)(2) of this title, the receipt of the payment of the lump-sum credit by the employee or Member voids all annuity rights under this subchapter based on the service on which the lump-sum credit is based, until the employee or Member is reemployed in the service subject to this subchapter. In applying this subsection to an employee or Member who becomes subject to chapter 84 (other than by an election under title III of the Federal Employees’ Retirement System Act of 1986) and who, while subject to such chapter, files an application with the Office for a payment under this subsection—
(i) entitlement to payment of the lump-sum credit shall be determined without regard to paragraph (1) or (3) if, or to the extent that, such lump-sum credit relates to service of a type described in clauses (i) through (iii) of section 302(a)(1)(C) of the Federal Employees’ Retirement System Act of 1986; and
(ii) if, or to the extent that, the lump-sum credit so relates to service of a type referred to in clause (i), it shall (notwithstanding section 8331(8)) consist of—(I) the amount by which any unrefunded amount described in section 8331(8)(A) or (B) relating to such service, exceeds 1.3 percent of basic pay for such service; and(II) interest on the amount payable under subclause (I), computed in a manner consistent with applicable provisions of section 8331(8).
(b) Under regulations prescribed by the Office, a present or former employee or Member may designate a beneficiary or beneficiaries for the purpose of this subchapter.
(c) Lump-sum benefits authorized by subsections (d)–(f) of this section shall be paid to the person or persons surviving the employee or Member and alive at the date title to the payment arises in the following order of precedence, and the payment bars recovery by any other person:
First, to the beneficiary or beneficiaries designated by the employee or Member in a signed and witnessed writing received in the Office before his death. For this purpose, a designation, change, or cancellation of beneficiary in a will or other document not so executed and filed has no force or effect.
Second, if there is no designated beneficiary, to the widow or widower of the employee or Member.
Third, if none of the above, to the child or children of the employee or Member and descendants of deceased children by representation.
Fourth, if none of the above, to the parents of the employee or Member or the survivor of them.
Fifth, if none of the above, to the duly appointed executor or administrator of the estate of the employee or Member.
Sixth, if none of the above, to such other next of kin of the employee or Member as the Office determines to be entitled under the laws of the domicile of the employee or Member at the date of his death.
For the purpose of this subsection, “child” includes a natural child and an adopted child, but does not include a stepchild.
For the purpose of this subsection, “child” includes a natural child and an adopted child, but does not include a stepchild.
(d) If an employee or Member dies—
(1) without a survivor; or
(2) with a survivor or survivors and the right of all survivors terminates before a claim for survivor annuity is filed;
or if a former employee or Member not retired dies, the lump-sum credit shall be paid.
(e) If all annuity rights under this subchapter based on the service of a deceased employee or Member terminate before the total annuity paid equals the lump-sum credit, the difference shall be paid.
(f) If an annuitant dies, annuity accrued and unpaid shall be paid.
(g) Annuity accrued and unpaid on the termination, except by death, of the annuity of an annuitant or survivor annuitant shall be paid to that individual. Annuity accrued and unpaid on the death of a survivor annuitant shall be paid in the following order of precedence, and the payment bars recovery by any other person:
First, to the duly appointed executor or administrator of the estate of the survivor annuitant.
Second, if there is no executor or administrator, payment may be made, after 30 days from the date of death of the survivor annuitant, to such next of kin of the survivor annuitant as the Office determines to be entitled under the laws of the domicile of the survivor annuitant at the date of his death.
(h) Amounts deducted and withheld from the basic pay of an employee or Member from the first day of the first month which begins after he has performed sufficient service (excluding service which the employee or Member elects to eliminate for the purpose of annuity computation under section 8339 of this title) to entitle him to the maximum annuity provided by section 8339 of this title, together with interest on the amounts at the rate of 3 percent a year compounded annually from the date of the deductions to the date of retirement or death, shall be applied toward any deposit due under section 8334 of this title, and any balance not so required is deemed a voluntary contribution for the purpose of section 8343 of this title.
(i) An employee who—
(1) is separated from the service before July 12, 1960; and
(2) continues in the service after July 12, 1960, without break in service of 1 workday or more;
is entitled to the benefits of subsection (h) of this section.
(j)
(1)
(A) Payment of the lump-sum credit under subsection (a) may be made only if the spouse, if any, and any former spouse of the employee or Member are notified of the employee or Member’s application.
(B) The Office shall prescribe regulations under which the lump-sum credit shall not be paid without the consent of a spouse or former spouse of the employee or Member where the Office has received such additional information and documentation as the Office may require that—
(i) a court order bars payment of the lump-sum credit in order to preserve the court’s ability to award an annuity under section 8341(h) or section 8345(j); or
(ii) payment of the lump-sum credit would extinguish the entitlement of the spouse or former spouse, under a court order on file with the Office, to a survivor annuity under section 8341(h) or to any portion of an annuity under section 8345(j).
(2)
(A) Notification of a spouse or former spouse under this subsection shall be made in accordance with such requirements as the Office shall by regulation prescribe.
(B) Under the regulations, the Office may provide that paragraph (1)(A) of this subsection may be waived with respect to a spouse or former spouse if the employee or Member establishes to the satisfaction of the Office that the whereabouts of such spouse or former spouse cannot be determined.
(3) The Office shall prescribe regulations under which this subsection shall be applied in any case in which the Office receives two or more such orders or decrees.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 579; Pub. L. 90–83, § 1(81), Sept. 11, 1967, 81 Stat. 217; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 97–253, title III, § 303(c), Sept. 8, 1982, 96 Stat. 794; Pub. L. 97–346, § 3(f), Oct. 15, 1982, 96 Stat. 1648; Pub. L. 98–615, § 2(5), Nov. 8, 1984, 98 Stat. 3201; Pub. L. 99–251, title II, § 208, Feb. 27, 1986, 100 Stat. 25; Pub. L. 99–335, title II, §§ 204(b)(2), 207(h), June 6, 1986, 100 Stat. 592, 596; Pub. L. 100–238, title I, § 105(b), Jan. 8, 1988, 101 Stat. 1746; Pub. L. 101–508, title VII, § 7001(b)(2)(D), Nov. 5, 1990, 104 Stat. 1388–329; Pub. L. 106–361, § 3(a), Oct. 27, 2000, 114 Stat. 1402.)
§ 8343. Additional annuities; voluntary contributions
(a) Under regulations prescribed by the Office of Personnel Management, an employee or Member may voluntarily contribute additional sums in multiples of $25, but the total may not exceed 10 percent of his basic pay for creditable service after July 31, 1920. The voluntary contribution account in each case is the sum of unrefunded contributions, plus interest at 3 percent a year through December 31, 1984, and thereafter at the rate computed under section 8334(e) of this title, compounded annually to—
(1) the date of payment under subsection (d) of this section, separation, or transfer to a position in which he does not continue subject to this subchapter, whichever is earliest; or
(2) the commencing date fixed for a deferred annuity or date of death, whichever is earlier, in the case of an individual who is separated with title to deferred annuity and does not claim the voluntary contribution account.
(b) The voluntary contribution account is used to purchase at retirement an annuity in addition to the annuity otherwise provided. For each $100 in the voluntary contribution account, the additional annuity consists of $7, increased by 20 cents for each full year, if any, the employee or Member is over 55 years of age at the date of retirement.
(c) A retiring employee or Member may elect a reduced additional annuity instead of the additional annuity described by subsection (b) of this section and designate in writing an individual to receive after his death an annuity of 50 percent of his reduced additional annuity. The additional annuity of the employee or Member making the election is reduced by 10 percent, and by 5 percent for each full 5 years the individual designated is younger than the retiring employee or Member. However, the total reduction may not exceed 40 percent.
(d) A present or former employee or Member is entitled to be paid the voluntary contribution account if he files application for payment with the Office before receiving an additional annuity. An individual who has been paid the voluntary contribution account may not again deposit additional sums under this section until, after a separation from the service of more than 3 calendar days, he again becomes subject to this subchapter.
(e) If a present or former employee or Member not retired dies, the voluntary contribution account is paid under section 8342(c) of this title. If all additional annuities or any right thereto based on the voluntary contribution account of a deceased employee or Member terminate before the total additional annuity paid equals the account, the difference is paid under section 8342(c) of this title.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 580; Pub. L. 90–83, § 1(82), Sept. 11, 1967, 81 Stat. 217; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 97–253, title III, § 303(a)(2), Sept. 8, 1982, 96 Stat. 794.)
§ 8343a. Alternative forms of annuities
(a) The Office of Personnel Management shall prescribe regulations under which any employee or Member who has a life-threatening affliction or other critical medical condition may, at the time of retiring under this subchapter (other than under section 8337 of this title), elect annuity benefits under this section instead of any other benefits under this subchapter (including any benefits under section 8341 of this title) based on the service of the employee or Member.
(b) Subject to subsection (c), the Office shall by regulation provide for such alternative forms of annuities as the Office considers appropriate, except that among the alternatives offered shall be—
(1) an alternative which provides for—
(A) payment of the lump-sum credit to the employee or Member; and
(B) payment of an annuity to the employee or Member for life; and
(2) in the case of an employee or Member who is married at the time of retirement, an alternative which provides for—
(A) payment of the lump-sum credit to the employee or Member; and
(B) payment of an annuity to the employee or Member for life, with a survivor annuity payable for the life of a surviving spouse.
(c) Each alternative provided for under subsection (b) shall, to the extent practicable, be designed such that the present value of the benefits provided under such alternative (including any lump-sum credit) is actuarially equivalent to the present value of the annuity which would otherwise be provided the employee or Member under this subchapter, as computed under subsections (a)–(i), (n), (q), (r), and (s) of section 8339.
(d) An employee or Member who, at the time of retiring under this subchapter—
(1) is married, shall be ineligible to make an election under this section unless a waiver is made under section 8339(j)(1) of this title; or
(2) has a former spouse, shall be ineligible to make an election under this section if the former spouse is entitled to benefits under section 8341(h) or 8345(j) of this title (based on the service of the employee or Member) under the terms of a decree of divorce or annulment, or a court order or court-approved property settlement incident to any such decree, with respect to which the Office has been duly notified.
(e) An employee or Member who is married at the time of retiring under this subchapter and who makes an election under this section may, during the 18-month period beginning on the date of retirement, make the election provided for under section 8339(o) of this title, subject to the deposit requirement thereunder.
(Added Pub. L. 99–335, title II, § 204(a), June 6, 1986, 100 Stat. 591; amended Pub. L. 101–428, § 2(d)(5), Oct. 15, 1990, 104 Stat. 929; Pub. L. 101–508, title VII, § 7001(a)(1), Nov. 5, 1990, 104 Stat. 1388–327; Pub. L. 103–66, title XI, § 11002(a), Aug. 10, 1993, 107 Stat. 409; Pub. L. 105–61, title V, § 516(a)(5), Oct. 10, 1997, 111 Stat. 1306; Pub. L. 106–553, § 1(a)(2) [title III, § 308(h)(5)], Dec. 21, 2000, 114 Stat. 2762, 2762A–89.)
§ 8344. Annuities and pay on reemployment
(a) If an annuitant receiving annuity from the Fund, except—
(1) a disability annuitant whose annuity is terminated because of his recovery or restoration of earning capacity;
(2) an annuitant whose annuity, based on an involuntary separation (other than an automatic separation or an involuntary separation for cause on charges of misconduct or delinquency), is terminated under subsection (b) of this section;
(3) an annuitant whose annuity is terminated under subsection (c) of this section; or
(4) a Member receiving annuity from the Fund;
becomes employed in an appointive or elective position, his service on and after the date he is so employed is covered by this subchapter. Deductions for the Fund may not be withheld from his pay unless the individual elects to have such deductions withheld under subparagraph (A). An amount equal to the annuity allocable to the period of actual employment shall be deducted from his pay, except for lump-sum leave payment purposes under section 5551 of this title. The amounts so deducted shall be deposited in the Treasury of the United States to the credit of the Fund. If the annuitant serves on a full-time basis, except as President, for at least 1 year, or on a part-time basis for periods equivalent to at least 1 year of full-time service, in employment not excluding him from coverage under section 8331(1)(i) or (ii) of this title—
(A) deductions for the Fund may be withheld from his pay (if the employee so elects), and his annuity on termination of employment is increased by an annuity computed under section 8339(a), (b), (d), (e), (h), (i), (n), (q), (r), and (s) as may apply based on the period of employment and the basic pay, before deduction, averaged during that employment; and
(B) his lump-sum credit may not be reduced by annuity paid during that employment.
If the annuitant is receiving a reduced annuity as provided in section 8339(j) or section 8339(k)(2) of this title, the increase in annuity payable under subparagraph (A) of this subsection is reduced by 10 percent and the survivor annuity payable under section 8341(b) of this title is increased by 55 percent of the increase in annuity payable under such subparagraph (A), unless, at the time of claiming the increase payable under such subparagraph (A), the annuitant notifies the Office of Personnel Management in writing that he does not desire the survivor annuity to be increased. If the annuitant dies while still reemployed, the survivor annuity payable is increased as though the reemployment had otherwise terminated. If the described employment of the annuitant continues for at least 5 years, or the equivalent of 5 years in the case of part-time employment, he may elect, instead of the benefit provided by subparagraph (A) of this subsection, to deposit in the Fund (to the extent deposits or deductions have not otherwise been made) an amount computed under section 8334(c) of this title covering that employment and have his rights redetermined under this subchapter. If the annuitant dies while still reemployed and the described employment had continued for at least 5 years, or the equivalent of 5 years in the case of part-time employment, the person entitled to survivor annuity under section 8341(b) of this title may elect to deposit in the Fund and have his rights redetermined under this subchapter.
(b) If an annuitant, other than a Member receiving an annuity from the Fund, whose annuity is based on an involuntary separation (other than an automatic separation or an involuntary separation for cause or charges on misconduct or delinquency) is reemployed in a position in which he is subject to this subchapter, payment of the annuity terminates on reemployment.
(c) If an annuitant, other than a Member receiving an annuity from the Fund, is appointed by the President to a position in which he is subject to this subchapter, or is elected as a Member, payment of the annuity terminates on reemployment. Upon separation from such position, an individual whose annuity is so terminated is entitled to have his rights redetermined under this subchapter, except that the amount of the annuity resulting from such redetermination shall be at least equal to the amount of the terminated annuity plus any increases under section 8340 of this title occurring after the termination and before the commencement of the redetermined annuity.
(d) If a Member receiving annuity from the Fund becomes employed in an appointive or elective position, annuity payments are discontinued during the employment and resumed on termination of the employment in the amount equal to the sum of the amount of the annuity the member was receiving immediately before the commencement of the employment and the amount of the increases which would have been made in the amount of the annuity under section 8340 of this title during the period of the employment if the annuity had been payable during that period, except that—
(1) the retired Member or Member separated with title to immediate or deferred annuity, who serves at any time after separation as a Member in an appointive position in which he is subject to this subchapter, is entitled, if he so elects, to have his Member annuity computed or recomputed as if the service had been performed before his separation as a Member and the annuity as so computed or recomputed is effective—
(A) the day Member annuity commences; or
(B) the day after the date of separation from the appointive position;
whichever is later;
(2) if the retired Member becomes employed after December 31, 1958, in an appointive position on an intermittent-service basis—
(A) his annuity continues during the employment and is not increased as a result of service performed during that employment;
(B) retirement deductions may not be withheld from his pay;
(C) an amount equal to the annuity allocable to the period of actual employment shall be deducted from his pay, except for lump-sum leave payment purposes under section 5551 of this title; and
(D) the amounts so deducted shall be deposited in the Treasury of the United States to the credit of the Fund;
(3) if the retired Member becomes employed after December 31, 1958, in an appointive position without pay on a full-time or substantially full-time basis, his annuity continues during the employment and is not increased as a result of service performed during the employment; and
(4) if the retired Member takes office as Member and gives notice as provided by section 8331(2) of this title, his service as Member during that period shall be credited in determining his right to and the amount of later annuity.
(e) This section does not apply to an individual appointed to serve as a Governor of the Board of Governors of the United States Postal Service.
(f) Notwithstanding the provisions of subsection (a) of this section, if an annuitant receiving annuity from the Fund, except a Member receiving annuity from the Fund, becomes employed as a justice or judge of the United States, as defined by section 451 of title 28, annuity payments are discontinued during such employment and are resumed in the same amount upon resignation or retirement from regular active service as such a justice or judge.
(g) A former employee or a former Member who becomes employed as a justice or judge of the United States, as defined by section 451 of title 28, may, at any time prior to resignation or retirement from regular active service as such a justice or judge, apply for and be paid, in accordance with section 8342(a) of this title, the amount (if any) by which the lump-sum credit exceeds the total annuity paid, notwithstanding the time limitation contained in such section for filing an application for payment.
(h)
(1) Subject to paragraph (2) of this subsection, subsections (a), (b), (c), and (d) of this section shall not apply to any annuitant receiving an annuity from the Fund while such annuitant is employed, during any period described in section 5532(f)(2) of this title (as in effect before the repeal of that section by section 651(a) of Public Law 106–65) or any portion thereof, under the administrative authority of the Administrator, Federal Aviation Administration, or the Secretary of Defense to perform duties in the operation of the air traffic control system or to train other individuals to perform such duties: Provided, however, That the amount such an annuitant may receive in pay, excluding premium pay, in any pay period when aggregated with the annuity payable during that same period shall not exceed the rate payable for level V of the Executive Schedule.
(2) Paragraph (1) of this subsection shall apply only in the case of any annuitant receiving an annuity from the Fund who, before December 31, 1987, applied for retirement or separated from the service while being entitled to an annuity under this chapter.
(i)
(1) The Director of the Office of Personnel Management may, at the request of the head of an Executive agency—
(A) waive the application of the preceding provisions of this section on a case-by-case basis for employees in positions for which there is exceptional difficulty in recruiting or retaining a qualified employee; or
(B) grant authority to the head of such agency to waive the application of the preceding provisions of this section, on a case-by-case basis, for an employee serving on a temporary basis, but only if, and for so long as, the authority is necessary due to an emergency involving a direct threat to life or property or other unusual circumstances.
(2) The Office shall prescribe regulations for the exercise of any authority under this subsection, including criteria for any exercise of authority and procedures for terminating a delegation of authority under paragraph (1)(B).
(j)
(1) If warranted by circumstances described in subsection (i)(1)(A) or (B) (as applicable), the Director of the Administrative Office of the United States Courts shall, with respect to an employee in the judicial branch, have the same waiver authority as would be available to the Director of the Office of Personnel Management, or a duly authorized agency head, under subsection (i) with respect to an employee of an Executive agency.
(2) Authority under this subsection may not be exercised with respect to a justice or judge of the United States, as defined in section 451 of title 28.
(k)
(1) If warranted by circumstances described in subsection (i)(1)(A) or (B) (as applicable), an official or committee designated in paragraph (2) shall, with respect to the employees specified in the applicable subparagraph of such paragraph, have the same waiver authority as would be available to the Director of the Office of Personnel Management, or a duly authorized agency head, under subsection (i) with respect to an employee of an Executive agency.
(2) Authority under this subsection may be exercised—
(A) with respect to an employee of an agency in the legislative branch, by the head of such agency;
(B) with respect to an employee of the House of Representatives, by the Committee on House Oversight of the House of Representatives; and
(C) with respect to an employee of the Senate, by the Committee on Rules and Administration of the Senate.
(3) Any exercise of authority under this subsection shall be in conformance with such written policies and procedures as the agency head, the Committee on House Oversight of the House of Representatives, or the Committee on Rules and Administration of the Senate (as applicable) shall prescribe, consistent with the provisions of this subsection.
(4) For the purpose of this subsection, “agency in the legislative branch”, “employee of the House of Representatives”, “employee of the Senate”, and “congressional employee” each has the meaning given to it in section 5531 of this title.
(l)
(1) For purposes of this subsection—
(A) the term “head of an agency” means—
(i) the head of an Executive agency, other than the Department of Defense or the Government Accountability Office;
(ii) the head of the United States Postal Service;
(iii) the Director of the Administrative Office of the United States Courts, with respect to employees of the judicial branch; and
(iv) any employing authority described under subsection (k)(2), other than the Government Accountability Office; and
(B) the term “limited time appointee” means an annuitant appointed under a temporary appointment limited to 1 year or less.
(2) The head of an agency may waive the application of subsection (a) or (b) with respect to any annuitant who is employed in such agency as a limited time appointee, if the head of the agency determines that the employment of the annuitant is necessary to—
(A) fulfill functions critical to the mission of the agency, or any component of that agency;
(B) assist in the implementation or oversight of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) or the Troubled Asset Relief Program under title I of the Emergency Economic Stabilization Act of 2008 (
(C) assist in the development, management, or oversight of agency procurement actions;
(D) assist the Inspector General for that agency in the performance of the mission of that Inspector General;
(E) promote appropriate training or mentoring programs of employees;
(F) assist in the recruitment or retention of employees; or
(G) respond to an emergency involving a direct threat to life of property or other unusual circumstances.
(3) The head of an agency may not waive the application of subsection (a) or (b) with respect to an annuitant—
(A) for more than 520 hours of service performed by that annuitant during the period ending 6 months following the individual’s annuity commencing date;
(B) for more than 1040 hours of service performed by that annuitant during any 12-month period; or
(C) for more than a total of 3120 hours of service performed by that annuitant.
(4)
(A) The total number of annuitants to whom a waiver by the head of an agency under this subsection or section 8468(i) applies may not exceed 2.5 percent of the total number of full-time employees of that agency.
(B) If the total number of annuitants to whom a waiver by the head of an agency under this subsection or section 8468(i) applies exceeds 1 percent of the total number of full-time employees of that agency, the head of that agency shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Office of Personnel Management—
(i) a report with an explanation that justifies the need for the waivers in excess of that percentage; and
(ii) not later than 180 days after submitting the report under clause (i), a succession plan.
(5)
(A) The Director of the Office of Personnel Management may promulgate regulations providing for the administration of this subsection.
(B) Any regulations promulgated under subparagraph (A) may—
(i) provide standards for the maintenance and form of necessary records of employment under this subsection;
(ii) to the extent not otherwise expressly prohibited by law, require employing agencies to provide records of such employment to the Office of Personnel Management or other employing agencies as necessary to ensure compliance with paragraph (3);
(iii) authorize other administratively convenient periods substantially equivalent to 12 months, such as 26 pay periods, to be used in determining compliance with paragraph (3)(B);
(iv) include such other administrative requirements as the Director of the Office of Personnel Management may find appropriate to provide for the effective operation of, or to ensure compliance with, this subsection; and
(v) encourage the training and mentoring of employees by any limited time appointee employed under this subsection.
(6)
(A) Any hours of training or mentoring of employees by any limited time appointee employed under this subsection shall not be included in the hours of service performed for purposes of paragraph (3), but those hours of training or mentoring may not exceed 520 hours.
(B) If the primary service performed by any limited time appointee employed under this subsection is training or mentoring of employees, the hours of that service shall be included in the hours of service performed for purposes of paragraph (3).
(7) The authority of the head of an agency under this subsection to waive the application of subsection (a) or (b) shall terminate on December 31, 2024.
(m)
(1) For the purpose of subsections (i) through (l), “Executive agency” shall not include the Government Accountability Office.
(2) An employee as to whom a waiver under subsection (i), (j), (k), or (l) is in effect shall not be considered an employee for purposes of this chapter or chapter 84 of this title.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 581; Pub. L. 90–83, § 1(83), Sept. 11, 1967, 81 Stat. 217; Pub. L. 91–375, § 6(c)(20), Aug. 12, 1970, 84 Stat. 776; Pub. L. 91–658, § 4, Jan. 8, 1971, 84 Stat. 1962; Pub. L. 92–297, § 7(5), May 16, 1972, 86 Stat. 145; Pub. L. 94–397, § 1(a)–(c), Sept. 3, 1976, 90 Stat. 1202, 1203; Pub. L. 95–454, title IX, § 906(a)(14), Oct. 13, 1978, 92 Stat. 1226; Pub. L. 95–598, title III, § 338(d), Nov. 6, 1978, 92 Stat. 2681; Pub. L. 96–179, § 4, Jan. 2, 1980, 93 Stat. 1299; Pub. L. 96–504, § 1, Dec. 5, 1980, 94 Stat. 2741; Pub. L. 97–141, § 5(a), Dec. 29, 1981, 95 Stat. 1719; Pub. L. 97–276, § 151(g), Oct. 2, 1982, 96 Stat. 1202; Pub. L. 97–346, § 3(j)(2), Oct. 15, 1982, 96 Stat. 1649; Pub. L. 98–353, title I, § 112, July 10, 1984, 98 Stat. 343; Pub. L. 98–396, title I, Aug. 22, 1984, 98 Stat. 1403; Pub. L. 98–525, title XV, § 1537(e), Oct. 19, 1984, 98 Stat. 2636; Pub. L. 99–88, title I, § 100, Aug. 15, 1985, 99 Stat. 351; Pub. L. 99–500, § 101(l), Oct. 18, 1986, 100 Stat. 1783–308, and Pub. L. 99–591, § 101(l), Oct. 30, 1986, 100 Stat. 3341–308; Pub. L. 100–202, §§ 101(l) [title I], 106, Dec. 22, 1987, 101 Stat. 1329–358, 1329–362, 1329–433; Pub. L. 100–457, title I, Sept. 30, 1988, 102 Stat. 2129; Pub. L. 101–428, § 2(d)(8), Oct. 15, 1990, 104 Stat. 929; Pub. L. 101–509, title V, § 529 [title I, § 108(b)], Nov. 5, 1990, 104 Stat. 1427, 1450; Pub. L. 101–510, div. A, title XII, § 1206(j)(2), Nov. 5, 1990, 104 Stat. 1664; Pub. L. 102–190, div. A, title VI, § 655(b), Dec. 5, 1991, 105 Stat. 1391; Pub. L. 102–378, § 8(a), Oct. 2, 1992, 106 Stat. 1359; Pub. L. 105–55, title I, § 107, Oct. 7, 1997, 111 Stat. 1184; Pub. L. 105–61, title V, § 516(a)(6), Oct. 10, 1997, 111 Stat. 1306; Pub. L. 106–398, § 1 [[div. A], title X, § 1087(f)(5)], Oct. 30, 2000, 114 Stat. 1654, 1654A–293; Pub. L. 106–553, § 1(a)(2) [title III, § 308(h)(8)], Dec. 21, 2000, 114 Stat. 2762, 2762A–89; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814; Pub. L. 111–84, div. A, title XI, § 1122(a), Oct. 28, 2009, 123 Stat. 2505; Pub. L. 111–383, div. A, title X, § 1075(a)(1), Jan. 7, 2011, 124 Stat. 4368; Pub. L. 113–291, div. A, title XI, § 1107(a), Dec. 19, 2014, 128 Stat. 3527; Pub. L. 116–92, div. A, title XI, § 1117(a), Dec. 20, 2019, 133 Stat. 1605.)
§ 8345. Payment of benefits; commencement, termination, and waiver of annuity
(a) Each annuity is stated as an annual amount, one-twelfth of which, rounded to the next lowest dollar, constitutes the monthly rate payable on the first business day of the month after the month or other period for which it has accrued.
(b)
(1) Except as otherwise provided—
(A) an annuity of an employee or Member commences on the first day of the month after—
(i) separation from the service; or
(ii) pay ceases and the service and age requirements for title to annuity are met; and
(B) any other annuity payable from the Fund commences on the first day of the month after the occurrence of the event on which payment thereof is based.
(2) The annuity of—
(A) an employee involuntarily separated from service, except by removal for cause on charges of misconduct or delinquency; and
(B) an employee or Member retiring under section 8337 of this title due to a disability;
shall commence on the day after separation from the service or the day after pay ceases and the service and age or disability requirements for title to annuity are met.
(c) The annuity of a retired employee or Member terminates on the day death or other terminating event provided by this subchapter occurs. The annuity of a survivor terminates on the last day of the month before death or other terminating event occurs.
(d) An individual entitled to annuity from the Fund may decline to accept all or any part of the annuity by a waiver signed and filed with the Office of Personnel Management. The waiver may be revoked in writing at any time. Payment of the annuity waived may not be made for the period during which the waiver was in effect.
(e)
(1) Payment due a minor, or an individual mentally incompetent or under other legal disability, may be made to the person (including an organization) who is constituted guardian or other fiduciary by the law of the State of residence of the claimant or is otherwise legally vested with the care of the claimant or his estate. If a guardian or other fiduciary of the individual under legal disability has not been appointed under the law of the State of residence of the claimant, payment may be made to any person (including an organization) who, in the judgment of the Office, is responsible for the care of the claimant and may appropriately receive such payments on behalf of the claimant, and the payment bars recovery by any other person.
(2) If the Office determines that direct payment of a benefit to an individual mentally incompetent or under other legal disability would cause substantial harm to the individual, the Office may defer or suspend direct payment of the benefit until such time as the appointment of a representative payee is made. The Office shall resume payment as soon as practicable, including all amounts due.
(f) The Office may not authorize a person to receive payments on behalf of a minor or individual of legal disability under subsection (e) if that person has been convicted of a violation of—
(1) section 8345a or 8466a;
(2) section 208 or 1632 of the Social Security Act (42 U.S.C. 408, 1383a); or
(3)section 6101 of title 38.
(g) The Office shall prescribe regulations to provide that the amount of any monthly annuity payable under this section accruing for any month and which is computed with regard to service that includes any service referred to in section 8332(b)(6) performed by an individual prior to January 1, 1969, shall be reduced by the portion of any benefits under any State retirement system to which such individual is entitled (or on proper application would be entitled) for such month which is attributable to such service performed by such individual before such date.
(h) An individual entitled to an annuity from the Fund may make allotments or assignments of amounts from his annuity for such purposes as the Office of Personnel Management in its sole discretion considers appropriate.
(i)
(1) No payment shall be made from the Fund unless an application for benefits based on the service of an employee or Member is received in the Office of Personnel Management before the one hundred and fifteenth anniversary of his birth.
(2) Notwithstanding paragraph (1) of this subsection, after the death of an employee, Member, or annuitant, no benefit based on his service shall be paid from the Fund unless an application therefor is received in the Office of Personnel Management within 30 years after the death or other event which gives rise to title to the benefit.
(j)
(1) Payments under this subchapter which would otherwise be made to an employee, Member, or annuitant based on service of that individual shall be paid (in whole or in part) by the Office to another person if and to the extent expressly provided for in the terms of—
(A) any court decree of divorce, annulment, or legal separation, or the terms of any court order or court-approved property settlement agreement incident to any court decree of divorce, annulment, or legal separation; or
(B) any court order or other similar process in the nature of garnishment for the enforcement of a judgment rendered against such employee, Member, or annuitant, for physically, sexually, or emotionally abusing a child.
In the event that the Office is served with more than 1 decree, order, or other legal process with respect to the same moneys due or payable to any individual, such moneys shall be available to satisfy such processes on a first-come, first-served basis, with any such process being satisfied out of such moneys as remain after the satisfaction of all such processes which have been previously served.
(2) Paragraph (1) shall only apply to payments made by the Office under this subchapter after the date of receipt in the Office of written notice of such decree, order, other legal process, or agreement, and such additional information and documentation as the Office may prescribe.
(3) For the purpose of this subsection—
(A) the term “court” means any court of any State, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, or the Virgin Islands, and any Indian court;
(B) the term “judgment rendered for physically, sexually, or emotionally abusing a child” means any legal claim perfected through a final enforceable judgment, which claim is based in whole or in part upon the physical, sexual, or emotional abuse of a child, whether or not that abuse is accompanied by other actionable wrongdoing, such as sexual exploitation or gross negligence; and
(C) the term “child” means an individual under 18 years of age.
(k)
(1) The Office shall, in accordance with this subsection, enter into an agreement with any State within 120 days of a request for agreement from the proper State official. The agreement shall provide that the Office shall withhold State income tax in the case of the monthly annuity of any annuitant who voluntarily requests, in writing, such withholding. The amounts withheld during any calendar quarter shall be held in the Fund and disbursed to the States during the month following that calendar quarter.
(2) An annuitant may have in effect at any time only one request for withholding under this subsection, and an annuitant may not have more than two such requests in effect during any one calendar year.
(3) Subject to paragraph (2) of this subsection, an annuitant may change the State designated by that annuitant for purposes of having withholdings made, and may request that the withholdings be remitted in accordance with such change. An annuitant also may revoke any request of that annuitant for withholding. Any change in the State designated or revocation is effective on the first day of the month after the month in which the request or the revocation is processed by the Office, but in no event later than on the first day of the second month beginning after the day on which such request or revocation is received by the Office.
(4) This subsection does not give the consent of the United States to the application of a statute which imposes more burdensome requirements on the United States than on employers generally, or which subjects the United States or any annuitant to a penalty or liability because of this subsection. The Office may not accept pay from a State for services performed in withholding State income taxes from annuities. Any amount erroneously withheld from an annuity and paid to a State by the Office shall be repaid by the State in accordance with regulations issued by the Office.
(5) For the purpose of this subsection, “State” means a State, the District of Columbia, or any territory or possession of the United States.
(l) Transfers of contributions and deposits authorized by section 408(a)(3) of the Foreign Service Act of 1980 shall be deemed to be a complete and final payment of benefits under this chapter.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 582; Pub. L. 93–273, § 1, Apr. 26, 1974, 88 Stat. 93; Pub. L. 94–126, § 1(c), Nov. 12, 1975, 89 Stat. 679; Pub. L. 94–166, § 1, Dec. 23, 1975, 89 Stat. 1002; Pub. L. 94–183, § 1, Dec. 31, 1975, 89 Stat. 1057; Pub. L. 95–366, § 1(a), Sept. 15, 1978, 92 Stat. 600; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 97–35, title XVII, § 1705(a), Aug. 13, 1981, 95 Stat. 758; Pub. L. 97–253, title III, §§ 304(b), 305(a), Sept. 8, 1982, 96 Stat. 795; Pub. L. 98–615, § 2(6), Nov. 8, 1984, 98 Stat. 3202; Pub. L. 99–251, title III, § 305(a), Feb. 27, 1986, 100 Stat. 26; Pub. L. 101–246, title I, § 141(b), Feb. 16, 1990, 104 Stat. 35; Pub. L. 103–358, § 2(a), Oct. 14, 1994, 108 Stat. 3420; Pub. L. 116–126, § 2(c)(1), (d)(1), Mar. 18, 2020, 134 Stat. 175, 176.)
§ 8345a. Embezzlement or conversion of payments
(a)Embezzling and Conversion Generally.—
(1)In general.—It shall be unlawful for a representative payee to embezzle or in any manner convert all or any part of the amounts received from payments received as a representative payee to a use other than for the use and benefit of the minor or individual on whose behalf such payments were received.
(2)Revocation.—If the Office determines that a representative payee has embezzled or converted payments as described in paragraph (1), the Office shall promptly—
(A) revoke the certification for payment of benefits to the representative payee; and
(B) certify payment—
(i) to another representative payee; or
(ii) if the interest of the individual under this title would be served thereby, to the individual.
(b)Penalty.—Any person who violates subsection (a)(1) shall be fined under title 18, imprisoned for not more than 5 years, or both.
(Added Pub. L. 116–126, § 2(b)(1), Mar. 18, 2020, 134 Stat. 174.)
§ 8346. Exemption from legal process; recovery of payments
(a) The money mentioned by this subchapter is not assignable, either in law or equity, except under the provisions of subsections (h) and (j) of section 8345 of this title, or subject to execution, levy, attachment, garnishment, or other legal process, except as otherwise may be provided by Federal laws.
(b) Recovery of payments under this subchapter may not be made from an individual when, in the judgment of the Office of Personnel Management, the individual is without fault and recovery would be against equity and good conscience. Withholding or recovery of money mentioned by this subchapter on account of a certification or payment made by a former employee of the United States in the discharge of his official duties may be made only if the head of the agency on behalf of which the certification or payment was made certifies to the Office that the certification or payment involved fraud on the part of the former employee.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 583; Pub. L. 94–166, § 2, Dec. 23, 1975, 89 Stat. 1002; Pub. L. 95–366, § 1(b), Sept. 15, 1978, 92 Stat. 600; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224.)
§ 8347. Administration; regulations
(a) The Office of Personnel Management shall administer this subchapter. Except as otherwise specifically provided herein, the Office shall perform, or cause to be performed, such acts and prescribe such regulations as are necessary and proper to carry out this subchapter.
(b) Applications under this subchapter shall be in such form as the Office prescribes. Agencies shall support the applications by such certificates as the Office considers necessary to the determination of the rights of applicants. The Office shall adjudicate all claims under this subchapter.
(c) The Office shall determine questions of disability and dependency arising under this subchapter. Except to the extent provided under subsection (d) of this section, the decisions of the Office concerning these matters are final and conclusive and are not subject to review. The Office may direct at any time such medical or other examinations as it considers necessary to determine the facts concerning disability or dependency of an individual receiving or applying for annuity under this subchapter. The Office may suspend or deny annuity for failure to submit to examination.
(d)
(1) Subject to paragraph (2) of this subsection, an administrative action or order affecting the rights or interests of an individual or of the United States under this subchapter may be appealed to the Merit Systems Protection Board under procedures prescribed by the Board.
(2) In the case of any individual found by the Office to be disabled in whole or in part on the basis of the individual’s mental condition, and that finding was made pursuant to an application by an agency for purposes of disability retirement under section 8337(a) of this title, the procedures under section 7701 of this title shall apply and the decision of the Board shall be subject to judicial review under section 7703 of this title.
(e) The Office shall fix the fees for examinations made under this subchapter by physicians or surgeons who are not medical officers of the United States. The fees and reasonable traveling and other expenses incurred in connection with the examinations are paid from appropriations for the cost of administering this subchapter.
(f) The Office shall select three actuaries, to be known as the Board of Actuaries of the Civil Service Retirement System. The Office shall fix the pay of the members of the Board, except members otherwise in the employ of the United States. The Board shall report annually on the actuarial status of the System and furnish its advice and opinion on matters referred to it by the Office. The Board may recommend to the Office and to Congress such changes as in the Board’s judgment are necessary to protect the public interest and maintain the System on a sound financial basis. The Office shall keep, or cause to be kept, such records as it considers necessary for making periodic actuarial valuations of the System. The Board shall make actuarial valuations every 5 years, or oftener if considered necessary by the Office.
(g) The Office may exclude from the operation of this subchapter an employee or group of employees in or under an Executive agency whose employment is temporary or intermittent. However, the Office may not exclude any employee who occupies a position on a part-time career employment basis (as defined in section 3401(2) of this title).
(h) The Office, on recommendation by the Mayor of the District of Columbia, may exclude from the operation of this subchapter an individual or group of individuals employed by the government of the District of Columbia whose employment is temporary or intermittent.
(i) The Architect of the Capitol may exclude from the operation of this subchapter an employee under the Office of the Architect of the Capitol whose employment is temporary or of uncertain duration.
(j) The Librarian of Congress may exclude from the operation of this subchapter an employee under the Library of Congress whose employment is temporary or of uncertain duration.
(k) The Secretary of Agriculture shall prescribe regulations to effect the application and operation of this subchapter to an individual named by section 8331(1)(F) of this title.
(l) The Director or Acting Director of the Botanic Garden may exclude from the operation of this subchapter an employee under the Botanic Garden whose employment is temporary or of uncertain duration.
(m) Notwithstanding any other provision of law, for the purpose of ensuring the accuracy of information used in the administration of this chapter, at the request of the Director of the Office of Personnel Management—
(1) the Secretary of Defense or the Secretary’s designee shall provide information on retired or retainer pay provided under title 10;
(2) the Secretary of Veterans Affairs shall provide information on pensions or compensation provided under title 38;
(3) the Commissioner of Social Security or the Secretary’s 1
1 So in original. Probably should be “Commissioner’s”.
designee shall provide information contained in the records of the Social Security Administration; and(4) the Secretary of Labor or the Secretary’s designee shall provide information on benefits paid under subchapter I of chapter 81 of this title.
The Director shall request only such information as the Director determines is necessary. The Director, in consultation with the officials from whom information is requested, shall establish, by regulation and otherwise, such safeguards as are necessary to ensure that information made available under this subsection is used only for the purpose authorized.
(n)
(1) Notwithstanding any other provision of this subchapter, the Director of Central Intelligence shall, in a manner consistent with the administration of this subchapter by the Office, and to the extent considered appropriate by the Director of Central Intelligence—
(A) determine entitlement to benefits under this subchapter based on the service of employees of the Central Intelligence Agency;
(B) maintain records relating to the service of such employees;
(C) compute benefits under this subchapter based on the service of such employees;
(D) collect deposits to the Fund made by such employees, their spouses, and their former spouses;
(E) authorize and direct disbursements from the Fund to the extent based on service of such employees; and
(F) perform such other functions under this subchapter as the Director of Central Intelligence, in consultation with the Director of the Office of Personnel Management, determines to be appropriate.
(2) The Director of the Office of Personnel Management shall furnish such information and, on a reimbursable basis, such services to the Director of Central Intelligence as the Director of Central Intelligence requests to carry out paragraph (1) of this subsection.
(3)
(A) The Director of Central Intelligence, in consultation with the Director of the Office of Personnel Management, shall by regulation prescribe appropriate procedures to carry out this subsection.
(B) The regulations shall provide procedures for the Director of the Office of Personnel Management to inspect and audit disbursements from the Civil Service Retirement and Disability Fund under this subchapter.
(C) The Director of Central Intelligence shall submit the regulations prescribed under subparagraph (A) to the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives before the regulations take effect.
(4)
(A) Section 201(c) of the Central Intelligence Agency Retirement Act shall apply in the administration of this subchapter to the extent that the provisions of this subchapter are administered under this subsection.
(B) Notwithstanding subparagraph (A) of this paragraph, section 8347(d) of this title shall apply with respect to employees of the Central Intelligence Agency who are subject to the Civil Service Retirement System.
(o) Any provision of law outside of this subchapter which provides coverage, service credit, or any other benefit under this subchapter to any individuals who (based on their being employed by an entity other than the Government) would not otherwise be eligible for any such coverage, credit, or benefit, shall not apply with respect to any individual appointed, transferred, or otherwise commencing that type of employment on or after October 1, 1988.
(p) The Director of the Administrative Office of the United States Courts may exclude from the operation of this subchapter an employee of the Administrative Office of the United States Courts, the Federal Judicial Center, or a court named by section 610 of title 28, whose employment is temporary or of uncertain duration.
(q)
(1) Under regulations prescribed by the Office of Personnel Management, an employee who—
(A) has not previously made an election under this subsection or had an opportunity to make an election under this paragraph; and
(B) moves, without a break in service of more than 1 year, to employment in a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard, respectively, described in section 2105(c),
shall be given the opportunity to elect irrevocably, within 30 days after such move, to remain covered as an employee under this subchapter during any employment described in section 2105(c) after such move.
(2) Under regulations prescribed by the Office of Personnel Management, an employee of a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard, described in section 2105(c), who—
(A) has not previously made an election under this subsection or had an opportunity to make an election under this paragraph;
(B) is a participant in a retirement system established for employees described in section 2105(c);
(C) moves, without a break in service of more than 1 year, to a position that is not described in section 2105(c); and
(D) is excluded from coverage under chapter 84 by section 8402(b),
shall be given the opportunity to elect irrevocably, within 30 days after such move, to remain covered, during any subsequent employment as an employee as defined in section 2105(a) or section 2105(c), by the retirement system applicable to such employee’s current or most recent employment described in section 2105(c) rather than be subject to this subchapter.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 583; Pub. L. 90–83, § 1(84), Sept. 11, 1967, 81 Stat. 218; Pub. L. 90–623, § 1(22), Oct. 22, 1968, 82 Stat. 1313; Pub. L. 95–437, § 4(a), Oct. 10, 1978, 92 Stat. 1058; Pub. L. 95–454, title IX, § 906(a)(2), (3), (9), (c)(2)(F), Oct. 13, 1978, 92 Stat. 1224, 1225, 1227; Pub. L. 96–54, § 2(a)(50), Aug. 14, 1979, 93 Stat. 384; Pub. L. 96–499, title IV, § 404(b), Dec. 5, 1980, 94 Stat. 2606; Pub. L. 96–500, § 1, Dec. 5, 1980, 94 Stat. 2696; Pub. L. 97–253, title III, § 302(b), Sept. 8, 1982, 96 Stat. 793; Pub. L. 99–335, title II, § 207(i), June 6, 1986, 100 Stat. 596; Pub. L. 100–238, title I, § 108(a)(1), Jan. 8, 1988, 101 Stat. 1747; Pub. L. 101–474, § 5(n), Oct. 30, 1990, 104 Stat. 1100; Pub. L. 101–508, title VII, § 7202(j)(2), Nov. 5, 1990, 104 Stat. 1388–337; Pub. L. 102–54, § 13(b)(5), June 13, 1991, 105 Stat. 274; Pub. L. 102–378, § 2(64), Oct. 2, 1992, 106 Stat. 1354; Pub. L. 102–496, title VIII, § 803(c), Oct. 24, 1992, 106 Stat. 3253; Pub. L. 103–296, title I, § 108(e)(5), Aug. 15, 1994, 108 Stat. 1486; Pub. L. 104–106, div. A, title X, § 1043(a)(1), Feb. 10, 1996, 110 Stat. 434; Pub. L. 107–107, div. A, title XI, § 1131(a), Dec. 28, 2001, 115 Stat. 1242.)
§ 8348. Civil Service Retirement and Disability Fund
(a) There is a Civil Service Retirement and Disability Fund. The Fund—
(1) is appropriated for the payment of—
(A) benefits as provided by this subchapter or by the provisions of chapter 84 of this title which relate to benefits payable out of the Fund; and
(B) administrative expenses incurred by the Office of Personnel Management in placing in effect each annuity adjustment granted under section 8340 or 8462 of this title, in administering survivor annuities and elections providing therefor under sections 8339 and 8341 of this title or subchapters II and IV of chapter 84 of this title, in administering alternative forms of annuities under sections 8343a and 8420a (and related provisions of law), in making an allotment or assignment made by an individual under section 8345(h) or 8465(b) of this title, in administering fraud prevention under sections 8345, 8345a, 8466, and 8466a of this title, and in withholding taxes pursuant to section 3405 of title 26 or section 8345(k) or 8469 of this title;
(2) is made available, subject to such annual limitation as the Congress may prescribe, for any expenses incurred by the Office in connection with the administration of this chapter, chapter 84 of this title, and other retirement and annuity statutes; and
(3) is made available, subject to such annual limitation as the Congress may prescribe, for any expenses incurred by the Merit Systems Protection Board in the administration of appeals authorized under sections 8347(d) and 8461(e) of this title.
(b) The Secretary of the Treasury may accept and credit to the Fund money received in the form of a donation, gift, legacy, or bequest, or otherwise contributed for the benefit of civil-service employees generally.
(c) The Secretary shall immediately invest in interest-bearing securities of the United States such currently available portions of the Fund as are not immediately required for payments from the Fund. The income derived from these investments constitutes a part of the Fund.
(d) The purposes for which obligations of the United States may be issued under chapter 31 of title 31 are extended to authorize the issuance at par of public-debt obligations for purchase by the Fund. The obligations issued for purchase by the Fund shall have maturities fixed with due regard for the needs of the Fund and bear interest at a rate equal to the average market yield computed as of the end of the calendar month next preceding the date of the issue, borne by all marketable interest-bearing obligations of the United States then forming a part of the public debt which are not due or callable until after the expiration of 4 years from the end of that calendar month. If the average market yield is not a multiple of ⅛ of 1 percent, the rate of interest on the obligations shall be the multiple of ⅛ of 1 percent nearest the average market yield.
(e) The Secretary may purchase other interest-bearing obligations of the United States, or obligations guaranteed as to both principal and interest by the United States, on original issue or at the market price only if he determines that the purchases are in the public interest.
(f) Any statute which authorizes—
(1) new or liberalized benefits payable from the Fund, including annuity increases other than under section 8340 of this title;
(2) extension of the coverage of this subchapter to new groups of employees; or
(3) increases in pay on which benefits are computed;
is deemed to authorize appropriations to the Fund to finance the unfunded liability created by that statute, in 30 equal annual installments with interest computed at the rate used in the then most recent valuation of the Civil Service Retirement System and with the first payment thereof due as of the end of the fiscal year in which each new or liberalized benefit, extension of coverage, or increase in pay is effective.
(g) At the end of each fiscal year, the Office shall notify the Secretary of the Treasury of the amount equivalent to (1) interest on the unfunded liability computed for that year at the interest rate used in the then most recent valuation of the System, and (2) that portion of disbursement for annuities for that year which the Office estimates is attributable to credit allowed for military service, less an amount determined by the Office to be appropriate to reflect the value of the deposits made to the credit of the Fund under section 8334(j) of this title. Before closing the accounts for each fiscal year, the Secretary shall credit to the Fund, as a Government contribution, out of any money in the Treasury of the United States not otherwise appropriated, the following percentages of such amounts: 10 percent for 1971; 20 percent for 1972; 30 percent for 1973; 40 percent for 1974; 50 percent for 1975; 60 percent for 1976; 70 percent for 1977; 80 percent for 1978; 90 percent for 1979; and 100 percent for 1980 and for each fiscal year thereafter.
(h)
(1) In this subsection, the term “Postal surplus or supplemental liability” means the estimated difference, as determined by the Office, between—
(A) the actuarial present value of all future benefits payable from the Fund under this subchapter to current or former employees of the United States Postal Service and attributable to civilian employment with the United States Postal Service; and
(B) the sum of—
(i) the actuarial present value of deductions to be withheld from the future basic pay of employees of the United States Postal Service currently subject to this subchapter under section 8334;
(ii) that portion of the Fund balance, as of the date the Postal surplus or supplemental liability is determined, attributable to payments to the Fund by the United States Postal Service and its employees, minus benefit payments attributable to civilian employment with the United States Postal Service, plus the earnings on such amounts while in the Fund; and
(iii) any other appropriate amount, as determined by the Office in accordance with generally accepted actuarial practices and principles.
(2)
(A) Not later than June 15, 2007, the Office shall determine the Postal surplus or supplemental liability, as of September 30, 2006. If that result is a surplus, the amount of the surplus shall be transferred to the Postal Service Retiree Health Benefits Fund established under section 8909a by June 30, 2007.
(B) The Office shall redetermine the Postal surplus or supplemental liability as of the close of the fiscal year, for each fiscal year beginning after September 30, 2007, through the fiscal year ending September 30, 2038. If the result is a surplus, that amount shall remain in the Fund until distribution is authorized under subparagraph (C). Beginning June 15, 2017, if the result is a supplemental liability, the Office shall establish an amortization schedule, including a series of annual installments commencing on September 30 of the subsequent fiscal year, which provides for the liquidation of such liability by September 30, 2043.
(C) As of the close of the fiscal years ending September 30, 2015, 2025, 2035, and 2039, if the result is a surplus, that amount shall be transferred to the Postal Service Retiree Health Benefits Fund, and any prior amortization schedule for payments shall be terminated.
(D) Amortization schedules established under this paragraph shall be set in accordance with generally accepted actuarial practices and principles, with interest computed at the rate used in the most recent valuation of the Civil Service Retirement System.
(E) The United States Postal Service shall pay the amounts so determined to the Office, with payments due not later than the date scheduled by the Office.
(3) Notwithstanding any other provision of law, in computing the amount of any payment under any other subsection of this section that is based upon the amount of the unfunded liability, such payment shall be computed disregarding that portion of the unfunded liability that the Office determines will be liquidated by payments under this subsection.
(i)
(1) Notwithstanding any other provision of law, the Panama Canal Commission shall be liable for that portion of any estimated increase in the unfunded liability of the fund which is attributable to any benefits payable from the Fund to or on behalf of employees and their survivors to the extent attributable to the amendments made by sections 1241 and 1242, and the provisions of sections 1231(b) and 1243(a)(1), of the Panama Canal Act of 1979, and the amendments made by section 3506 of the Panama Canal Commission Authorization Act for Fiscal Year 1991.
(2) The estimated increase in the unfunded liability referred to in paragraph (1) of this subsection shall be determined by the Office of Personnel Management. The Panama Canal Commission shall pay to the Fund from funds available to it for that purpose the amount so determined in annual installments with interest computed at the rate used in the most recent valuation of the Civil Service Retirement System.
(j)
(1) Notwithstanding subsection (c) of this section, the Secretary of the Treasury may suspend additional investment of amounts in the Fund if such additional investment could not be made without causing the public debt of the United States to exceed the public debt limit.
(2) Any amounts in the Fund which, solely by reason of the public debt limit, are not invested shall be invested by the Secretary of the Treasury as soon as such investments can be made without exceeding the public debt limit.
(3) Upon expiration of the debt issuance suspension period, the Secretary of the Treasury shall immediately issue to the Fund obligations under chapter 31 of title 31 that (notwithstanding subsection (d) of this section) bear such interest rates and maturity dates as are necessary to ensure that, after such obligations are issued, the holdings of the Fund will replicate to the maximum extent practicable the obligations that would then be held by the Fund if the suspension of investment under paragraph (1) of this subsection, and any redemption or disinvestment under subsection (k) of this section for the purpose described in such paragraph, during such period had not occurred.
(4) On the first normal interest payment date after the expiration of any debt issuance suspension period, the Secretary of the Treasury shall pay to the Fund, from amounts in the general fund of the Treasury of the United States not otherwise appropriated, an amount determined by the Secretary to be equal to the excess of—
(A) the net amount of interest that would have been earned by the Fund during such debt issuance suspension period if—
(i) amounts in the Fund that were not invested during such debt issuance suspension period solely by reason of the public debt limit had been invested, and
(ii) redemptions and disinvestments with respect to the Fund which occurred during such debt issuance suspension period solely by reason of the public debt limit had not occurred, over
(B) the net amount of interest actually earned by the Fund during such debt issuance suspension period.
(5) For purposes of this subsection and subsections (k) and (l) of this section—
(A) the term “public debt limit” means the limitation imposed by section 3101(b) of title 31; and
(B) the term “debt issuance suspension period” means any period for which the Secretary of the Treasury determines for purposes of this subsection that the issuance of obligations of the United States may not be made without exceeding the public debt limit.
(k)
(1) Subject to paragraph (2) of this subsection, the Secretary of the Treasury may sell or redeem securities, obligations, or other invested assets of the Fund before maturity in order to prevent the public debt of the United States from exceeding the public debt limit.
(2) The Secretary may sell or redeem securities, obligations, or other invested assets of the Fund under paragraph (1) of this subsection only during a debt issuance suspension period, and only to the extent necessary to obtain any amount of funds not exceeding the amount equal to the total amount of the payments authorized to be made from the Fund under the provisions of this subchapter or chapter 84 of this title or related provisions of law during such period. A sale or redemption may be made under this subsection even if, before the sale or redemption, there is a sufficient amount in the Fund to ensure that such payments are made in a timely manner.
(l)
(1) The Secretary of the Treasury shall report to Congress on the operation and status of the Fund during each debt issuance suspension period for which the Secretary is required to take action under paragraph (3) or (4) of subsection (j) of this section. The report shall be submitted as soon as possible after the expiration of such period, but not later than the date that is 30 days after the first normal interest payment date occurring after the expiration of such period.
(2) Whenever the Secretary of the Treasury determines that, by reason of the public debt limit, the Secretary will be unable to fully comply with the requirements of subsection (c) of this section, the Secretary shall immediately notify Congress of the determination. The notification shall be made in writing.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 584; Pub. L. 90–83, § 1(85), Sept. 11, 1967, 81 Stat. 218; Pub. L. 91–93, title I, § 103(a), Oct. 20, 1969, 83 Stat. 137; Pub. L. 93–349, § 1, July 12, 1974, 88 Stat. 354; Pub. L. 94–183, § 2(37), Dec. 31, 1975, 89 Stat. 1058; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96–70, title I, § 1244, Sept. 27, 1979, 93 Stat. 474; Pub. L. 97–253, title III, § 306(f), Sept. 8, 1982, 96 Stat. 797; Pub. L. 97–346, § 3(g), Oct. 15, 1982, 96 Stat. 1648; Pub. L. 98–216, § 3(a)(5), Feb. 14, 1984, 98 Stat. 6; Pub. L. 98–615, § 2(7), Nov. 8, 1984, 98 Stat. 3202; Pub. L. 99–335, title II, § 207(j), June 6, 1986, 100 Stat. 597; Pub. L. 99–509, title VI, § 6002, Oct. 21, 1986, 100 Stat. 1931; Pub. L. 100–203, title V, § 5428(d), Dec. 22, 1987, 101 Stat. 1330–274; Pub. L. 101–239, title IV, § 4002(a), Dec. 19, 1989, 103 Stat. 2133; Pub. L. 101–508, title VII, §§ 7001(a)(3), 7101(a), Nov. 5, 1990, 104 Stat. 1388–328, 1388–331; Pub. L. 101–510, div. C, title XXXV, § 3506(c), Nov. 5, 1990, 104 Stat. 1847; Pub. L. 103–424, § 10, Oct. 29, 1994, 108 Stat. 4366; Pub. L. 104–52, title IV, § 2, Nov. 19, 1995, 109 Stat. 490; Pub. L. 104–316, title I, § 103(h), Oct. 19, 1996, 110 Stat. 3829; Pub. L. 105–362, title XIII, § 1302(c), Nov. 10, 1998, 112 Stat. 3293; Pub. L. 108–18, § 2(c), (d)(1)(A), Apr. 23, 2003, 117 Stat. 625, 626; Pub. L. 109–435, title VIII, § 802(a)(2), Dec. 20, 2006, 120 Stat. 3249; Pub. L. 116–126, § 3(a), Mar. 18, 2020, 134 Stat. 176.)
§ 8349. Offset relating to certain benefits under the Social Security Act
(a)
(1) Notwithstanding any other provision of this subchapter, if an individual under section 8402(b)(2) is entitled, or would on proper application be entitled, to old-age insurance benefits under title II of the Social Security Act, the annuity otherwise payable to such individual shall be reduced under this subsection.
(2) A reduction under this subsection commences beginning with the first month for which the individual both—
(A) is entitled to an annuity under this subchapter; and
(B) is entitled, or would on proper application be entitled, to old-age insurance benefits under title II of the Social Security Act.
(3)
(A)
(i) Subject to clause (ii) and subparagraphs (B) and (C), the amount of a reduction under this subsection shall be equal to the difference between—(I) the old-age insurance benefit which would be payable to the individual for the month referred to in paragraph (2); and(II) the old-age insurance benefit which would be so payable, excluding all wages derived from Federal service of the individual, and assuming the individual were fully insured (as defined by section 214(a) of the Social Security Act).
(ii) For purposes of this subsection, the amount of a benefit referred to in subclause (I) or (II) of clause (i) shall be determined without regard to subsections (b) through (l) of section 203 of the Social Security Act, and without regard to the requirement that an application for such benefit be filed.
(B) A reduction under this subsection—
(i) may not exceed an amount equal to the product of—(I) the old-age insurance benefit to which the individual is entitled (or would on proper application be entitled) for the month referred to in paragraph (2), determined without regard to subsections (b) through (l) of section 203 of the Social Security Act; and(II) a fraction, as determined under section 8421(b)(3) with respect to the individual, except that the reference to “service” in subparagraph (A) of such section shall be considered to mean Federal service; and
(ii) may not cause the annuity payment for an individual to be reduced below zero.
(C) An amount computed under subclause (I) or (II) of subparagraph (A)(i), or under subparagraph (B)(i)(I), for purposes of determining the amount of a reduction under this subsection shall be adjusted under section 8340 of this title.
(4) A reduction under this subsection applies with respect to the annuity otherwise payable to such individual under this subchapter (other than under section 8337) for the month involved—
(A) based on service of such individual; and
(B) without regard to section 8345(j), if otherwise applicable.
(5) The operation of the preceding paragraphs of this subsection shall not be considered for purposes of applying the provisions of the second sentence of section 215(a)(7)(B)(i) or the provisions of section 215(d)(5)(ii) of the Social Security Act in determining any amount under subclause (I) or (II) of paragraph (3)(A)(i) or paragraph (3)(B)(i)(I) for purposes of this subsection.
(b)
(1) Notwithstanding any other provision of this subchapter—
(A) a disability annuity to which an individual described in section 8402(b)(2) is entitled under this subchapter, and
(B) a survivor annuity to which a person is entitled under this subchapter based on the service of an individual described in section 8402(b)(2),
shall be subject to reduction under this subsection if that individual or person is also entitled (or would on proper application also be entitled) to any similar benefits under title II of the Social Security Act based on the wages and self-employment income of such individual described in section 8402(b)(2).
(2)
(A) Subject to subparagraph (B), reductions under this subsection shall be made in a manner consistent with the manner in which reductions under subsection (a) are computed and otherwise made.
(B) Reductions under this subsection shall be discontinued if, or for so long as, entitlement to the similar benefits under title II of the Social Security Act (as referred to in paragraph (1)) is terminated (or, in the case of an individual who has not made proper application therefor, would be terminated).
(3) For the purpose of applying section 224 of the Social Security Act to the disability insurance benefit used to compute the reduction under this subsection, the amount of the CSRS annuity considered shall be the amount of the CSRS annuity before application of this section.
(4) The Office shall prescribe regulations to carry out this subsection.
(c) For the purpose of this section, the term “Federal service” means service which is employment for the purposes of title II of the Social Security Act and chapter 21 of the Internal Revenue Code of 1986 by reason of the amendments made by section 101 of the Social Security Amendments of 1983.
(d) In administering subsections (a) through (c)—
(1) the terms “an individual under section 8402(b)(2)” and “an individual described in section 8402(b)(2)” shall each be considered to include any individual—
(A) who is subject to this subchapter as a result of any provision of law described in section 8347(o), and
(B) whose employment (as described in section 8347(o)) is also employment for purposes of title II of the Social Security Act and chapter 21 of the Internal Revenue Code of 1986; and
(2) the term “Federal service”, as applied with respect to any individual to whom this section applies as a result of paragraph (1), means any employment referred to in paragraph (1)(B) performed after December 31, 1983.
(Added Pub. L. 99–335, title II, § 201(b)(1), June 6, 1986, 100 Stat. 589; amended Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100–238, title I, § 108(b)(2), Jan. 8, 1988, 101 Stat. 1748.)
§ 8350. Retirement counseling
(a) For the purposes of this section, the term “retirement counselor”, when used with respect to an agency, means an employee of the agency who is designated by the head of the agency to furnish information on benefits under this subchapter and chapter 84 of this title and counseling services relating to such benefits to other employees of the agency.
(b) The Director of the Office of Personnel Management shall establish a training program for all retirement counselors of agencies of the Federal Government.
(c)
(1) The training program established under subsection (b) of this section shall provide for comprehensive training in the provisions and administration of this subchapter and chapter 84 of this title, shall be designed to promote fully informed retirement decisions by employees and Members under this subchapter and individuals subject to chapter 84 of this title, and shall be revised as necessary to assure that the information furnished to retirement counselors of agencies under the program is current.
(2) The Director shall conduct a training session under the training program at least once every 3 months.
(3) Once each year, each retirement counselor of an agency shall successfully complete a training session conducted under the training program.
(Added Pub. L. 99–335, title II, § 205(a), June 6, 1986, 100 Stat. 592; amended Pub. L. 99–556, title II, § 202, Oct. 27, 1986, 100 Stat. 3135.)
§ 8351. Participation in the Thrift Savings Plan
(a)
(1) An employee or Member may elect to contribute to the Thrift Savings Fund established by section 8437 of this title.
(2) An election may be made under paragraph (1) as provided under section 8432(span) for individuals who are subject to chapter 84 of this title.
(span)
(1) Except as otherwise provided in this subsection, the provisions of subchapters III and VII of chapter 84 of this title shall apply with respect to employees and Members making contributions to the Thrift Savings Fund under subsection (a) of this section.
(2)
(A) An employee or Member may contribute to the Thrift Savings Fund in any pay period any amount not exceeding the maximum percentage of such employee’s or Member’s basic pay for such pay period allowable under subparagraph (B).
(B) The maximum percentage allowable under this subparagraph shall be determined in accordance with the following table:
In the case of a pay period beginning in fiscal year: | The maximum percentage allowable is: |
|---|---|
2001 | 6 |
2002 | 7 |
2003 | 8 |
2004 | 9 |
2005 | 10 |
2006 or thereafter | 100. |
(C) Notwithstanding any limitation under this paragraph, an eligible participant (as defined by section 414(v) of the Internal Revenue Code of 1986) may make such additional contributions to the Thrift Savings Fund as are permitted by such section 414(v) and regulations of the Executive Director consistent therewith.
(3) No contributions may be made by an employing agency for the benefit of an employee or Member under section 8432(c) of this title.
(4)Section 8433(span) of this title applies to any employee or Member who elects to make contributions to the Thrift Savings Fund under subsection (a) of this section and separates from Government employment.
(5)
(A) The provisions of section 8435 of this title that require a waiver or consent by the spouse of an employee or Member (or former employee or Member) shall not apply with respect to sums in the Thrift Savings Fund contributed by the employee or Member (or former employee or Member) and earnings in the fund attributable to such sums.
(B) An election or change of election authorized by subchapter III of chapter 84 of this title shall be effective in the case of a married employee or Member, and a loan or withdrawal may be approved under section 8433(g) and (h) of this title in such case, only after the Executive Director notifies the employee’s or Member’s spouse that the election or change of election has been made or that the Executive Director has received an application for such loan or withdrawal, as the case may be.
(C) Subparagraph (B) may be waived with respect to a spouse if the employee or Member establishes to the satisfaction of the Executive Director of the Federal Retirement Thrift Investment Board that the whereabouts of such spouse cannot be determined.
(D) Except with respect to the making of loans or withdrawals under section 8433(g) or (h), none of the provisions of this paragraph requiring notification to a spouse or former spouse of an employee, Member, former employee, or former Member shall apply in any case in which the nonforfeitable account balance of the employee, Member, former employee, or former Member is $3,500 or less.
(6) Notwithstanding paragraph (4), if an employee or Member separates from Government employment and such employee’s or Member’s nonforfeitable account balance is less than an amount that the Executive Director prescribes by regulation, the Executive Director shall pay the nonforfeitable account balance to the participant in a single payment.
(7) For the purpose of this section, the term “nonforfeitable account balance” has the same meaning as under section 8401(32).
(8) In applying section 8432span to an employee contributing to the Thrift Savings Fund after being restored to or reemployed in a position subject to this subchapter, pursuant to chapter 43 of title 38—
(A) any reference in such section to contributions under section 8432(a) shall be considered a reference to employee contributions under this section, except that the reference in section 8432span(span)(2)(B) to employee contributions under section 8432(a) shall be considered a reference to employee contributions under this subchapter and section 8440e;
(B) the contribution rate under section 8432span(span)(2)(A) shall be the maximum percentage allowable under subsection (span)(2) of this section; and
(C) subsections (c) and (d) of section 8432span shall be disregarded.
(9) For the purpose of this section, separation from Government employment includes a transfer described in section 8431.
(c) A member of the Foreign Service described in section 103(6) of the Foreign Service Act of 1980 shall be ineligible to make any election under this section.
(d)
(1) A foreign national employee of the Central Intelligence Agency whose services are performed outside the United States shall be ineligible to make an election under this section.
(2)
(A) Only those employees of the Central Intelligence Agency participating in the pilot project required by section 402(span) of the Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107–306; 50 U.S.C. 403–4 note) 1
1 See References in Text note below.
and making contributions to the Thrift Savings Fund out of basic pay may also contribute (by direct transfer to the Fund) any part of bonus pay received by the employee as part of the pilot project.(B) Contributions under this paragraph are subject to section 8432(d) of this title.
(e) The Executive Director of the Federal Retirement Thrift Investment Board may prescribe regulations to carry out this section.
(Added Puspan. L. 99–335, title II, § 206(a)(1), June 6, 1986, 100 Stat. 593; amended Puspan. L. 100–238, title I, § 111(a), Jan. 8, 1988, 101 Stat. 1750; Puspan. L. 101–335, §§ 3(span)(1), 6(span)(1), July 17, 1990, 104 Stat. 320, 323; Puspan. L. 102–183, title III, § 308(a), Dec. 4, 1991, 105 Stat. 1265; Puspan. L. 102–484, div. D, title XLIV, § 4437(c), Oct. 23, 1992, 106 Stat. 2724; Puspan. L. 103–226, § 9(a), (i)(1), (2), Mar. 30, 1994, 108 Stat. 118, 121; Puspan. L. 103–353, § 4(d), Oct. 13, 1994, 108 Stat. 3172; Puspan. L. 104–208, div. A, title I, § 101(f) [title VI, § 659 [title II, § 202]], Sept. 30, 1996, 110 Stat. 3009–314, 3009–372, 3009–374; Puspan. L. 106–65, div. A, title VI, § 661(a)(3)(B), Oct. 5, 1999, 113 Stat. 671; Puspan. L. 106–168, title II, § 203(span), Dec. 12, 1999, 113 Stat. 1820; Puspan. L. 106–554, § 1(a)(4) [div. B, title I, § 138(span)], Dec. 21, 2000, 114 Stat. 2763, 2763A–234; Puspan. L. 107–304, § 1(a), Nov. 27, 2002, 116 Stat. 2363; Puspan. L. 108–177, title IV, § 405(span)(1), Dec. 13, 2003, 117 Stat. 2632; Puspan. L. 108–469, § 1(d)(1), Dec. 21, 2004, 118 Stat. 3891.)