CHAPTER 83 - RETIREMENT

Title 5 > CHAPTER 83

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§ 8301 Uniform retirement date

(a) Except as otherwise specifically provided by this title or other statute, retirement authorized by statute is effective on the first day of the month following the month in which retirement would otherwise be effective.

(b) Notwithstanding subsection (a) of this section, the rate of active or retired pay or allowance is computed as of the date retirement would have occurred but for subsection (a) of this section.

§ 8311 Definitions

For the purpose of this subchapter— “employee” means— an employee as defined by section 2105 of this title ; a Member of Congress as defined by section 2106 of this title and a Delegate to Congress; a member or former member of a uniformed service; and an individual employed by the government of the District of Columbia; “annuity” means a retirement benefit, including a disability insurance benefit and a dependent’s or survivor’s benefit under subchapter II of chapter 7 of title 42, and a monthly annuity under section 228b or 228e of title 45, payable by an agency of the Government of the United States or the government of the District of Columbia on the basis of service as a civilian employee and other service which is creditable to an employee toward the benefit under the statute, regulation, or agreement which provides the benefit, but does not include— a benefit provided under statutes administered by the Department of Veterans Affairs; pay or compensation which may not be diminished under section 1 of Article III of the Constitution of the United States; that portion of a benefit payable under subchapter II of chapter 7 of title 42 which would be payable without taking into account, for any of the purposes of that subchapter, including determinations of periods of disability under section 416(i) of title 42 , pay for services as an employee; monthly annuity awarded under section 228b or 228e of title 45 before September 26, 1961 , whether or not computed under section 228c(e) of title 45 ; that portion of an annuity awarded under section 228b or 228e of title 45 after September 25, 1961 , which would be payable without taking into account military service creditable under section 228c–1 of title 45 ; a retirement benefit, including a disability insurance benefit and a dependent’s or survivor’s benefit under subchapter II of chapter 7 of title 42, awarded before September 1, 1954 , to an individual or his survivor or beneficiary, insofar as the individual, before September 1, 1954 — was convicted of an offense named by subsection (b) of section 8312 of this title , to the extent provided by that subsection; or violated section 8314 or 8315(a)(1) of this title; or a retirement benefit, including a disability insurance benefit and a dependent’s or survivor’s benefit under subchapter II of chapter 7 of title 42, awarded before September 26, 1961 , to an individual or his survivor or beneficiary, insofar as the individual, before September 26, 1961 — was convicted of an offense named by subsection (c) of section 8312 of this title , to the extent provided by that subsection; or violated section 8315(a)(2) of this title ; and “retired pay” means retired pay, retirement pay, retainer pay, or equivalent pay, payable under a statute to a member or former member of a uniformed service, and an annuity payable to an eligible beneficiary of the member or former member under chapter 73 of title 10 or section 5 of the Uniformed Services Contingency Option Act of 1953 ( 67 Stat. 504 ), but does not include— a benefit provided under statutes administered by the Department of Veterans Affairs; retired pay, retirement pay, retainer pay, or equivalent pay, awarded before September 1, 1954 , to an individual, insofar as the individual, before September 1, 1954 — was convicted of an offense named by subsection (b) of section 8312 of this title , to the extent provided by that subsection; or violated section 8314 or 8315(a)(1) of this title; retired pay, retirement pay, retainer pay, or equivalent pay, awarded before September 26, 1961 , to an individual, insofar as the individual, before September 26, 1961 — was convicted of an offense named by subsection (c) of section 8312 of this title , to the extent provided by that subsection; or violated section 8315(a)(2) of this title ; or an annuity payable to an eligible beneficiary of an individual under chapter 73 of title 10 or section 5 of the Uniformed Services Contingency Option Act of 1953 ( 67 Stat. 504 ), if the annuity was awarded to the beneficiary, or if retired pay was awarded to the individual, before September 26, 1961 , insofar as the individual, on the basis of whose service the annuity was awarded, before September 26, 1961 — was convicted of an offense named by section 8312 of this title , to the extent provided by that section; or violated section 8314 or 8315 of this title. ( Pub. L. 89–554 , Sept. 6, 1966 , 80 Stat. 557 ; Pub. L. 102–54, § 13(b)(1) , June 13, 1991 , 105 Stat. 274 .)

§ 8312 Conviction of certain offenses

(a) An individual, or his survivor or beneficiary, may not be paid annuity or retired pay on the basis of the service of the individual which is creditable toward the annuity or retired pay, subject to the exceptions in section 8311(2) and (3) of this title, if the individual— was convicted, before, on, or after September 1, 1954 , of an offense named by subsection (b) of this section, to the extent provided by that subsection; or was convicted, before, on, or after September 26, 1961 , of an offense named by subsection (c) of this section, to the extent provided by that subsection. The prohibition on payment of annuity or retired pay applies— with respect to the offenses named by subsection (b) of this section, to the period after the date of the conviction or after September 1, 1954 , whichever is later; and with respect to the offenses named by subsection (c) of this section, to the period after the date of conviction or after September 26, 1961 , whichever is later.

(b) The following are the offenses to which subsection (a) of this section applies if the individual was convicted before, on, or after September 1, 1954 : An offense within the purview of— section 792 (harboring or concealing persons), 793 (gathering, transmitting, or losing defense information), 794 (gathering or delivering defense information to aid foreign government), or 798 (disclosure of classified information), of chapter 37 (relating to espionage and censorship) of title 18; chapter 105 (relating to sabotage) of title 18; section 2381 (treason), 2382 (misprision of treason), 2383 (rebellion or insurrection), 2384 (seditious conspiracy), 2385 (advocating overthrow of government), 2387 (activities affecting armed forces generally), 2388 (activities affecting armed forces during war), 2389 (recruiting for service against United States), or 2390 (enlistment to serve against United States), of chapter 115 (relating to treason, sedition, and subversive activities) of title 18; section 10(b)(2), (3), or (4) of the Atomic Energy Act of 1946 ( 60 Stat. 766 , 767), as in effect before August 30, 1954 ; section 16(a) or (b) of the Atomic Energy Act of 1946 ( 60 Stat. 773 ), as in effect before August 30, 1954 , insofar as the offense is committed with intent to injure the United States or with intent to secure an advantage to a foreign nation; or an earlier statute on which a statute named by subparagraph (A), (B), or (C) of this paragraph (1) is based. An offense within the purview of— article 104 (aiding the enemy), article 103a (espionage), or article 106 (spies) of the Uniform Code of Military Justice (chapter 47 of title 10) or an earlier article on which article 104 or article 106, as the case may be, is based; or a current article of the Uniform Code of Military Justice (or an earlier article on which the current article is based) not named by subparagraph (A) of this paragraph (2) on the basis of charges and specifications describing a violation of a statute named by paragraph (1), (3), or (4) of this subsection, if the executed sentence includes death, dishonorable discharge, or dismissal from the service, or if the defendant dies before execution of that sentence as finally approved. Perjury committed under the statutes of the United States or the District of Columbia— in falsely denying the commission of an act which constitutes an offense within the purview of— a statute named by paragraph (1) of this subsection; or an article or statute named by paragraph (2) of this subsection insofar as the offense is within the purview of an article or statute named by paragraph (1) or (2) (A) of this subsection; in falsely testifying before a Federal grand jury, court of the United States, or court-martial with respect to his service as an employee in connection with a matter involving or relating to an interference with or endangerment of, or involving or relating to a plan or attempt to interfere with or endanger, the national security or defense of the United States; or in falsely testifying before a congressional committee in connection with a matter under inquiry before the congressional committee involving or relating to an interference with or endangerment of, or involving or relating to a plan or attempt to interfere with or endanger, the national security or defense of the United States. Subornation of perjury committed in connection with the false denial or false testimony of another individual as specified by paragraph (3) of this subsection.

(c) The following are the offenses to which subsection (a) of this section applies if the individual was convicted before, on, or after September 26, 1961 : An offense within the purview of— section 2272 (violation of specific sections) or 2273 (violation of sections generally of chapter 23 of title 42) of title 42 insofar as the offense is committed with intent to injure the United States or with intent to secure an advantage to a foreign nation; section 2274 (communication of restricted data), 2275 (receipt of restricted data), or 2276 (tampering with restricted data) of title 42; or section 783 (conspiracy and communication or receipt of classified information) of title 50 or section 601 of the National Security Act of 1947 ( 50 U.S.C. 421 ) 1 (relating to intelligence identities). An offense within the purview of a current article of the Uniform Code of Military Justice (chapter 47 of title 10) or an earlier article on which the current article is based, as the case may be, on the basis of charges and specifications describing a violation of a statute named by paragraph (1), (3), or (4) of this subsection, if the executed sentence includes death, dishonorable discharge, or dismissal from the service, or if the defendant dies before execution of that sentence as finally approved. Perjury committed under the statutes of the United States or the District of Columbia in falsely denying the commission of an act which constitutes an offense within the purview of a statute named by paragraph (1) of this subsection. Subornation of perjury committed in connection with the false denial of another individual as specified by paragraph (3) of this subsection.

(d) For purposes of subsections (b)(1) and (c)(1), an offense within the meaning of such subsections is established if the Attorney General of the United States certifies to the agency administering the annuity or retired pay concerned— that an individual subject to this chapter has been convicted by an impartial court of appropriate jurisdiction within a foreign country in circumstances in which the conduct violates the provisions of law enumerated in subsections (b)(1) and (c)(1), or would violate such provisions had such conduct taken place within the United States, and that such conviction is not being appealed or that final action has been taken on such appeal; that such conviction was obtained in accordance with procedures that provided the defendant due process rights comparable to such rights provided by the United States Constitution, and such conviction was based upon evidence which would have been admissible in the courts of the United States; and that such conviction occurred after the date of enactment of this subsection. Any certification made pursuant to this subsection shall be subject to review by the United States Court of Claims based upon the application of the individual concerned, or his or her attorney, alleging that any of the conditions set forth in subparagraphs 2 (A), (B), or (C) of paragraph (1), as certified by the Attorney General, have not been satisfied in his or her particular circumstances. Should the court determine that any of these conditions has not been satisfied in such case, the court shall order any annuity or retirement benefit to which the person concerned is entitled to be restored and shall order that any payments which may have been previously denied or withheld to be paid by the department or agency concerned.

§ 8313 Absence from the United States to avoid prosecution

(a) An individual, or his survivor or beneficiary, may not be paid annuity or retired pay on the basis of the service of the individual which is creditable toward the annuity or retired pay, subject to the exceptions in section 8311(2) and (3) of this title, if the individual— is under indictment, or has outstanding against him charges preferred under the Uniform Code of Military Justice— after July 31, 1956 , for an offense named by section 8312(b) of this title ; or after September 26, 1961 , for an offense named by section 8312(c) of this title ; and willfully remains outside the United States, or its territories and possessions including the Commonwealth of Puerto Rico, for more than 1 year with knowledge of the indictment or charges, as the case may be.

(b) The prohibition on payment of annuity or retired pay under subsection (a) of this section applies to the period after the end of the 1-year period and continues until— a nolle prosequi to the entire indictment is entered on the record or the charges are dismissed by competent authority; the individual returns and thereafter the indictment or charges is or are dismissed; or after trial by court or court-martial, the accused is found not guilty of the offense or offenses.

§ 8314 Refusal to testify

(a) An individual, or his survivor or beneficiary, may not be paid annuity or retired pay on the basis of the service of the individual which is creditable toward the annuity or retired pay, subject to the exceptions in section 8311(2) and (3) of this title, if the individual, before, on, or after September 1, 1954 , refused or refuses, or knowingly and willfully failed or fails, to appear, testify, or produce a book, paper, record, or other document, relating to his service as an employee, before a Federal grand jury, court of the United States, court-martial, or congressional committee, in a proceeding concerning— his past or present relationship with a foreign government; or a matter involving or relating to an interference with or endangerment of, or involving or relating to a plan or attempt to interfere with or endanger, the national security or defense of the United States.

(b) The prohibition on payment of annuity or retired pay under subsection (a) of this section applies to the period after the date of the failure or refusal of the individual, or after September 1, 1954 , whichever is later.

§ 8315 Falsifying employment applications

(a) An individual, or his survivor or beneficiary, may not be paid annuity or retired pay on the basis of the service of the individual which is creditable toward the annuity or retired pay, subject to the exceptions in section 8311(2) and (3) of this title, if the individual knowingly and willfully made or makes a false, fictitious, or fraudulent statement or representation, or knowingly and willfully concealed or conceals a material fact— before, on, or after September 1, 1954 , concerning his— past or present membership in, affiliation or association with, or support of the Communist Party, or a chapter, branch, or subdivision thereof, in or outside the United States, or other organization, party, or group advocating— the overthrow, by force, violence, or other unconstitutional means, of the Government of the United States; the establishment, by force, violence, or other unconstitutional means, of a Communist totalitarian dictatorship in the United States; or the right to strike against the United States; conviction of an offense named by subsection (b) of section 8312 of this title , to the extent provided by that subsection; or failure or refusal to appear, testify, or produce a book, paper, record, or other document, as specified by section 8314 of this title ; or before, on, or after September 26, 1961 , concerning his conviction of an offense named by subsection (c) of section 8312 of this title , to the extent provided by that subsection; in a document executed by the individual in connection with his employment in, or application for, a civilian or military office or position in or under the legislative, executive, or judicial branch of the Government of the United States or the government of the District of Columbia.

(b) The prohibition on the payment of annuity or retired pay applies— with respect to matters specified by subsection (a)(1) of this section, to the period after the statement, representation, or concealment of fact is made or occurs, or after September 1, 1954 , whichever is later; and with respect to matters specified by subsection (a)(2) of this section, to the period after the statement, representation, or concealment of fact is made or occurs, or after September 26, 1961 , whichever is later.

§ 8316 Refund of contributions and deposits

(a) When payment of annuity or retired pay is denied under this subchapter because an individual was convicted of an offense named by section 8312 of this title , to the extent provided by that section, or violated section 8314 or 8315 of this title— the amount, except employment taxes, contributed by the individual toward the annuity, less the amount previously refunded or paid as annuity benefits; and deposits made under section 1438 of title 10 or section 5 of the Uniformed Services Contingency Option Act of 1953 ( 67 Stat. 504 ) to provide the eligible beneficiary with annuity for any period, less the amount previously paid as retired pay benefits; shall be refunded, on appropriate application therefor— to the individual; if the individual is dead, to the beneficiary designated to receive refunds by or under the statute, regulation, or agreement under which the annuity, the benefits of which are denied under this subchapter, would have been payable; or if a beneficiary is not designated, in the order of precedence prescribed by section 8342(c) of this title or section 2771 of title 10 , as the case may be.

(b) A refund under subsection (a) of this section shall be made with interest at the rate and for the period provided under the statute, regulation, or agreement under which the annuity would have been payable. However, interest may not be computed— if the individual was convicted of an offense named by section 8312(b) of this title , or violated section 8314 or 8315(a)(1) of this title, for the period after the conviction or commission of the violation, or after September 1, 1954 , whichever is later; or if the individual was convicted of an offense named by section 8312(c) of this title , or violated section 8315(a)(2) of this title , for the period after the conviction or commission of the violation, or after September 26, 1961 , whichever is later.

§ 8317 Repayment of annuity or retired pay properly paid; waiver

(a) An individual, or his survivor or beneficiary, to whom payment of annuity is denied under this subchapter is not thereafter required to repay that part of the annuity otherwise properly paid to the individual, or to his survivor or beneficiary on the basis of the service of the individual, which is in excess of the aggregate amount of the contributions of the individual toward the annuity, with applicable interest.

(b) An individual, including an eligible beneficiary under chapter 73 of title 10 or section 5 of the Uniformed Services Contingency Option Act of 1953 ( 67 Stat. 504 ), to whom payment of retired pay is denied under this subchapter is not thereafter required to repay retired pay otherwise properly paid to the individual or beneficiary which is paid in violation of this subchapter.

§ 8318 Restoration of annuity or retired pay

(a) If an individual who was convicted, before, on, or after September 1, 1954 , of— an offense named by section 8312 of this title ; or an offense constituting a violation of section 8314 or 8315 of this title; is pardoned by the President, the right of the individual and his survivor or beneficiary to receive annuity or retired pay previously denied under this subchapter is restored as of the date of the pardon.

(b) The President may restore, effective as of the date he prescribes, the right to receive annuity or retired pay which is denied, before, on, or after September 1, 1954 , under section 8314 or 8315 of this title, to the individual and to his survivor or beneficiary.

(c) Payment of annuity or retired pay which results from pardon or restoration by the President under subsection (a) or (b) of this section may not be made for a period before— the date of pardon referred to by subsection (a) of this section; or the effective date of restoration referred to by subsection (b) of this section.

(d) Credit for a period of service covered by a refund under section 8316 of this title is allowed only after the amount refunded has been redeposited.

(e) The spouse of an individual whose annuity or retired pay is forfeited under section 8312 or 8313 after the date of enactment of this subsection shall be eligible for spousal pension benefits if the Attorney General of the United States determines that the spouse fully cooperated with Federal authorities in the conduct of a criminal investigation and subsequent prosecution of the individual which resulted in such forfeiture.

§ 8319 Removal of members of the uniformed services from rolls; restoration; reappointment

(a) The President may drop from the rolls a member of a uniformed service who is deprived of retired pay under this subchapter.

(b) The President may restore— military status to an individual dropped from the rolls to whom retired pay is restored under this subchapter or under section 2 of the Act of September 26, 1961 ( 75 Stat. 648 ); and all rights and privileges to the individual and his beneficiaries of which he or they were deprived because his name was dropped from the rolls.

(c) If the individual restored was a commissioned officer, the President alone may reappoint him to the grade and position on the retired list held when his name was dropped from the rolls.

§ 8320 Offense or violation committed in compliance with orders

When it is established by satisfactory evidence that an individual— was convicted of an offense named by section 8312 of this title ; or violated section 8314 or 8315 of this title; as a result of proper compliance with orders issued, in a confidential relationship, by an agency or other authority of the Government of the United States or the government of the District of Columbia, the right to receive annuity or retired pay may not be denied. ( Pub. L. 89–554 , Sept. 6, 1966 , 80 Stat. 564 .)

§ 8321 Liability of accountable employees

An accountable employee may not be held responsible for a payment made in violation of this subchapter when the payment made is in due course and without fraud, collusion, or gross negligence. ( Pub. L. 89–554 , Sept. 6, 1966 , 80 Stat. 564 .)

§ 8322 Effect on other statutes

This subchapter does not restrict authority under a statute, other than this subchapter, to deny or withhold benefits authorized by statute. ( Pub. L. 89–554 , Sept. 6, 1966 , 80 Stat. 564 .)

§ 8331 Definitions

For the purpose of this subchapter— “employee” means— an employee as defined by section 2105 of this title ; the Architect of the Capitol, an employee of the Architect of the Capitol, and an employee of the Botanic Garden; 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; 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; a United States Commissioner whose total pay for services performed as Commissioner is not less than $3,000ineachofthelast3consecutivecalendaryearsendingafterDecember31,1954;anindividualemployedbyacountycommitteeestablishedundersection590h(b)oftitle16;anindividualfirstemployedbythegovernmentoftheDistrictofColumbiabeforeOctober1,1987;anindividualemployedbyGallaudetCollege;anindividualappointedtoapositionontheofficestaffofaformerPresidentundersection1(b)oftheActofAugust25,1958(72Stat.838);analien(i)whowaspreviouslyemployedbytheGovernment,(ii)whoisemployedfulltimebyaforeigngovernmentforthepurposeofprotectingorfurtheringtheinterestsoftheUnitedStatesduringaninterruptionofdiplomaticorconsularrelations,and(iii)forwhoseservicesreimbursementismadetotheforeigngovernmentbytheUnitedStates;anindividualappointedtoapositionontheofficestaffofaformerPresident,oraformerVicePresidentundersection5ofthePresidentialTransitionActof1963,asamended(78Stat.153),whoimmediatelybeforethedateofsuchappointmentwasanemployeeasdefinedunderanyothersubparagraphofthisparagraph;andanemployeedescribedinsection2105(c)whohasmadeanelectionundersection8347(q)(1)toremaincoveredunderthissubchapter;butdoesnotinclude—ajusticeorjudgeoftheUnitedStatesasdefinedbysection451oftitle28;anemployeesubjecttoanotherretirementsystemforGovernmentemployees(besidesanyemployeeexcludedbyclause(x),butincludinganyemployeewhohasmadeanelectionundersection8347(q)(2)toremaincoveredbyaretirementsystemestablishedforemployeesdescribedinsection2105(c));anemployeeorgroupofemployeesinorunderanExecutiveagencyexcludedbytheOfficeofPersonnelManagementundersection8347(g)ofthistitle;anindividualorgroupofindividualsemployedbythegovernmentoftheDistrictofColumbiaexcludedbytheOfficeundersection8347(h)ofthistitle;anemployeeoftheAdministrativeOfficeoftheUnitedStatesCourts,theFederalJudicialCenter,oracourtnamedbysection610oftitle28,excludedbytheDirectoroftheAdministrativeOfficeundersection8347(o)ofthistitle;aconstructionemployeeorothertemporary,part-time,orintermittentemployeeoftheTennesseeValleyAuthority;anemployeeundertheOfficeoftheArchitectoftheCapitolexcludedbytheArchitectoftheCapitolundersection8347(i)ofthistitle;anemployeeundertheLibraryofCongressexcludedbytheLibrarianofCongressundersection8347(j)ofthistitle;astudent-employeeasdefinedbysection5351ofthistitle;anemployeesubjecttotheFederalEmployees’RetirementSystem;anemployeeundertheBotanicGardenexcludedbytheDirectororActingDirectoroftheBotanicGardenundersection8347(l)ofthistitle;oramemberoftheForeignService(asdescribedinsection103(6)oftheForeignServiceActof1980),appointedafterDecember31,1987.Notwithstandingthisparagraph,theemploymentofateacherintherecessperiodbetweentwoschoolyearsinapositionotherthanateachingpositioninwhichheservedimmediatelybeforetherecessperioddoesnotqualifytheindividualasanemployeeforthepurposeofthissubchapter.Forthepurposeoftheprecedingsentence,“teacher”and“teachingposition”havethemeaningsgiventhembysection901oftitle20;“Member”meansaMemberofCongressasdefinedbysection2106ofthistitle,afterhegivesnoticeinwritingtotheofficialbywhomheispaidofhisdesiretobecomesubjecttothissubchapter,butdoesnotincludeanysuchMemberofCongresswhoissubjecttotheFederalEmployees’RetirementSystemorwhomakesanelectionundersection8401(20)ofthistitlenottobesubjecttosuchSystem;“basicpay”includes—theamountaMemberreceivedfromApril1,1954,toFebruary28,1955,asexpenseallowanceundersection601(b)oftheLegislativeReorganizationActof1946(60Stat.850),asamended;andthatamountfromJanuary3,1953,toMarch31,1954,ifdepositismadethereforasprovidedbysection8334ofthistitle;additionalpayprovidedby—subsection(a)ofsection60e–7oftitle2andtheprovisionsoflawreferredtobythatsubsection;andsections60e–8,60e–9,60e–10,60e–11,60e–12,60e–13,and60e–14oftitle2;premiumpayundersection5545(c)(1)ofthistitle;withrespecttoalawenforcementofficer,premiumpayundersection5545(c)(2)ofthistitle;availabilitypay—receivedbyacriminalinvestigatorundersection5545aofthistitle;orreceivedafterSeptember11,2001,byaFederalairmarshalorcriminalinvestigator(asdefinedinsection5545a(a)(2))oftheTransportationSecurityAdministration,subjecttoallrestrictionsandearninglimitationsimposedoncriminalinvestigatorsreceivingsuchpayundersection5545a,includingthepremiumpaylimitationsundersection5547;payasprovidedinsection5545b(b)(2)and(c)(2);withrespecttoacustomsofficer(referredtoinsubsection(e)(1)ofsection5oftheActofFebruary13,1911),compensationforovertimeinspectionalservicesprovidedforundersubsection(a)ofsuchsection5,butnottoexceed50percentofanystatutorymaximuminovertimepayforcustomsofficerswhichisineffectfortheyearinvolved;anyamountreceivedundersection5948(relatingtophysicianscomparabilityallowances);andwithrespecttoaborderpatrolagent,theamountofsupplementalpayreceivedthroughapplicationofthelevel1borderpatrolrateofpayorthelevel2borderpatrolrateofpayforscheduledovertimewithintheregulartourofdutyoftheborderpatrolagentasprovidedinsection5550;butdoesnotincludebonuses,allowances,overtimepay,militarypay,paygiveninadditiontothebasepayofthepositionasfixedbylaworregulationexceptasprovidedbysubparagraphs(B)through(I)ofthisparagraph1retroactivepayundersection5344ofthistitleinthecaseofaretiredordeceasedemployee,uniformallowancesundersection5901ofthistitle,orlump-sumleavepaymentsundersubchapterVIofchapter55ofthistitle.Foranemployeepaidonafeebasis,themaximumamountofbasicpaywhichmaybeusedis$10,000; “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; “Fund” means the Civil Service Retirement and Disability Fund; Repealed. Pub. L. 96–499, title IV, § 403(b) , Dec. 5, 1980 , 94 Stat. 2606 ;] “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); “lump-sum credit” means the unrefunded amount consisting of— retirement deductions made from the basic pay of an employee or Member; amounts deposited by an employee or Member covering earlier service, including any amounts deposited under section 8334(j) of this title ; and 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— if the service covered thereby aggregates 1 year or less; or for the fractional part of a month in the total service; “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; “survivor” means an individual entitled to annuity under this subchapter based on the service of a deceased employee, Member, or annuitant; “survivor annuitant” means a survivor who files claim for annuity; “service” means employment creditable under section 8332 of this title ; “military service” means honorable active service— in the armed forces; in the Regular or Reserve Corps 2 of the Public Health Service after June 30, 1960 ; or 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 ; “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; “price index” means the Consumer Price Index (all items—United States city average) published monthly by the Bureau of Labor Statistics; “base month” means the month for which the price index showed a percent rise forming the basis for a cost-of-living annuity increase; “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; “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— the Federal Employees’ Retirement System; or 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; “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— 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 the present value of Government payments to the Fund under section 8348(f) of this title ; plus the Fund balance as of the date the unfunded liability is determined; “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— employees of the Bureau of Prisons and Federal Prison Industries, Incorporated; employees of the Public Health Service assigned to the field service of the Bureau of Prisons or of the Federal Prison Industries, Incorporated; 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 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; “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; “bankruptcy judge” means an individual— 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— who is serving as a United States bankruptcy judge on March 31, 1984 ; or 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 who is appointed as a bankruptcy judge under section 152 of title 28 ; “former spouse” means a former spouse of an individual— if such individual performed at least 18 months of civilian service covered under this subchapter as an employee or Member, and if the former spouse was married to such individual for at least 9 months; “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 ); “magistrate judge” or “United States magistrate judge” means an individual appointed under section 631 of title 28 ; “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; “Nuclear materials courier”— 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 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; “Government physician” has the meaning given that term under section 5948; “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— investment yields; increases in rates of basic pay; and rates of price inflation; the term “air traffic controller” or “controller” means— a controller within the meaning of section 2109(1); and 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); “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; “Director” means the Director of the Office of Personnel Management; and “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 ; Pub. L. 101–508, title VII, § 7202(j)(1) , Nov. 5, 1990 , 104 Stat. 1388–337 ; Pub. L. 101–650, title III , §§ 306(c)(1), 321, Dec. 1, 1990 , 104 Stat. 5110 , 5117; Pub. L. 102–378, § 2(57) , 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 XIII, § 13812(a) , Aug. 10, 1993 , 107 Stat. 670 ; Pub. L. 103–353, § 5(a) , Oct. 13, 1994 , 108 Stat. 3173 ; Pub. L. 105–261, div. C, title XXXI, § 3154(b) , Oct. 17, 1998 , 112 Stat. 2254 ; Pub. L. 105–277, div. A, § 101(h) [title VI, § 628(d)] , Oct. 21, 1998 , 112 Stat. 2681–480 , 2681–521; Pub. L. 106–571, § 3(a) , (b)(2), Dec. 28, 2000 , 114 Stat. 3054 , 3055; Pub. L. 107–71, title I, § 105(c) , Nov. 19, 2001 , 115 Stat. 607 ; Pub. L. 108–18, § 2(a) , Apr. 23, 2003 , 117 Stat. 624 ; Pub. L. 108–176, title II, § 226(a)(1) , Dec. 12, 2003 , 117 Stat. 2529 ; Pub. L. 110–161, div. E, title V, § 535(a)(1) , Dec. 26, 2007 , 121 Stat. 2075 ; Pub. L. 110–181, div. A, title XI, § 1115(a) , Jan. 28, 2008 , 122 Stat. 361 ; Pub. L. 112–141, div. F, title I, § 100121(a)(1) , July 6, 2012 , 126 Stat. 906 ; Pub. L. 113–277, § 2(d) , Dec. 18, 2014 , 128 Stat. 3003 ; Pub. L. 114–136, § 2(c)(3) , Mar. 18, 2016 , 130 Stat. 305 ; Pub. L. 115–254, div. K, title I, § 1908(a) , Oct. 5, 2018 , 132 Stat. 3548 ; Pub. L. 116–126, § 2(a)(1) , Mar. 18, 2020 , 134 Stat. 174 .)

“SEC. 2001 SHORT TITLE; TABLE OF CONTENTS.

(“(a) Short Title.— This title may be cited as the ‘Federal Erroneous Retirement Coverage Corrections Act’.

(“(b) Table of Contents.—

“SEC. 2002 DEFINITIONS.

“For purposes of this title: The term ‘annuitant’ has the meaning given such term under section 8331(9) or 8401(2) of title 5, United States Code. The term ‘CSRS’ means the Civil Service Retirement System. The term ‘CSRDF’ means the Civil Service Retirement and Disability Fund. The term ‘CSRS covered’, with respect to any service, means service that is subject to the provisions of subchapter III of chapter 83 of title 5, United States Code, other than service subject to section 8334(k) of such title. The term ‘CSRS-Offset covered’, with respect to any service, means service that is subject to the provisions of subchapter III of chapter 83 of title 5, United States Code, and to section 8334(k) of such title. The term ‘employee’ has the meaning given such term under section 8331(1) or 8401(11) of title 5, United States Code. The term ‘Executive Director of the Federal Retirement Thrift Investment Board’ or ‘Executive Director’ means the Executive Director appointed under section 8474 of title 5 , United States Code. The term ‘FERS’ means the Federal Employees’ Retirement System. The term ‘FERS covered’, with respect to any service, means service that is subject to chapter 84 of title 5, United States Code. The term ‘former employee’ means an individual who was an employee, but who is not an annuitant. The term ‘OASDI taxes’ means the OASDI employee tax and the OASDI employer tax. The term ‘OASDI employee tax’ means the tax imposed under section 3101(a) of the Internal Revenue Code of 1986 [ 26 U.S.C. 3101(a) ] (relating to Old-Age, Survivors and Disability Insurance). The term ‘OASDI employer tax’ means the tax imposed under section 3111(a) of the Internal Revenue Code of 1986 [ 26 U.S.C. 3111(a) ] (relating to Old-Age, Survivors and Disability Insurance). The term ‘OASDI trust funds’ means the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund. The term ‘Office’ means the Office of Personnel Management. The term ‘retirement coverage determination’ means a determination by an employee or agent of the Government as to whether a particular type of Government service is CSRS covered, CSRS-Offset covered, FERS covered, or Social Security-Only covered. The term ‘retirement coverage error’ means an erroneous retirement coverage determination that was in effect for a minimum period of 3 years of service after December 31, 1986 . The term ‘Social Security-Only covered’, with respect to any service, means Government service that— constitutes employment under section 210 of the Social Security Act ( 42 U.S.C. 410 ); and is subject to OASDI taxes; but is not subject to CSRS or FERS. The term ‘survivor’ has the meaning given such term under section 8331(10) or 8401(28) of title 5, United States Code. The term ‘Thrift Savings Fund’ means the Thrift Savings Fund established under section 8437 of title 5 , United States Code.

“SEC. 2003 APPLICABILITY.

(“(a) In General.— This title shall apply with respect to retirement coverage errors that occur before, on, or after the date of the enactment of this Act [ Sept. 19, 2000 ].

(“(b) Limitation.— Except as otherwise provided in this title, this title shall not apply to any erroneous retirement coverage determination that was in effect for a period of less than 3 years of service after December 31, 1986 .

“SEC. 2004 IRREVOCABILITY OF ELECTIONS.

“Any election made (or deemed to have been made) by an employee or any other individual under this title shall be irrevocable.

“SEC. 2101 EMPLOYEES.

(“(a) Applicability.— This section shall apply in the case of any employee or former employee who should be (or should have been) FERS covered but, as a result of a retirement coverage error, is (or was) CSRS covered or CSRS-Offset covered instead.

(“(b) Uncorrected Error.— This subsection applies if the retirement coverage error has not been corrected before the effective date of the regulations described under paragraph (3). As soon as practicable after discovery of the error, and subject to the right of an election under paragraph (2), if CSRS covered or CSRS-Offset covered, such individual shall be treated as CSRS-Offset covered, retroactive to the date of the retirement coverage error. Upon written notice of a retirement coverage error, an individual may elect to be CSRS-Offset covered or FERS covered, effective as of the date of the retirement coverage error. Such election shall be made not later than 180 days after the date of receipt of such notice. If the individual does not make an election by the date provided under subparagraph (A), a CSRS-Offset covered individual shall remain CSRS-Offset covered and a CSRS covered individual shall be treated as CSRS-Offset covered. The Office shall prescribe regulations to carry out this subsection.

(“(c) Corrected Error.— This subsection applies if the retirement coverage error was corrected before the effective date of the regulations described under subsection (b). Not later than 180 days after the date of the enactment of this Act [ Sept. 19, 2000 ], the Office shall prescribe regulations authorizing individuals to elect, during the 18-month period immediately following the effective date of such regulations, to be CSRS-Offset covered, effective as of the date of the retirement coverage error. If under this section an individual elects to be CSRS-Offset covered, all employee contributions to the Thrift Savings Fund made during the period of FERS coverage (and earnings on such contributions) may remain in the Thrift Savings Fund in accordance with regulations prescribed by the Executive Director, notwithstanding any limit under title 5, United States Code, that would otherwise be applicable. An individual who previously received a payment ordered by a court or provided as a settlement of claim for losses resulting from a retirement coverage error shall not be entitled to make an election under this subsection unless that amount is waived in whole or in part under section 2208, and any amount not waived is repaid. An individual who, subsequent to correction of the retirement coverage error, received a refund of retirement deductions under section 8424 of title 5 , United States Code, or a distribution under section 8433(b), (c), or (h)(1)(A) of title 5, United States Code, may not make an election under this subsection. If an individual is ineligible to make an election or does not make an election under paragraph (2) before the end of any time limitation under this subsection, the corrective action taken before such time limitation shall remain in effect.

“SEC. 2102 ANNUITANTS AND SURVIVORS.

(“(a) In General.— This section shall apply in the case of an individual who is— an annuitant who should have been FERS covered but, as a result of a retirement coverage error, was CSRS covered or CSRS-Offset covered instead; or a survivor of an employee who should have been FERS covered but, as a result of a retirement coverage error, was CSRS covered or CSRS-Offset covered instead.

(“(b) Coverage.— Not later than 180 days after the date of the enactment of this Act [ Sept. 19, 2000 ], the Office shall prescribe regulations authorizing an individual described under subsection (a) to elect CSRS-Offset coverage or FERS coverage, effective as of the date of the retirement coverage error. An election under this subsection shall be made not later than 18 months after the effective date of the regulations prescribed under paragraph (1). If the individual elects CSRS-Offset coverage, the amount in the employee’s Thrift Savings Fund account under subchapter III of chapter 84 of title 5, United States Code, on the date of retirement that represents the Government’s contributions and earnings on those contributions (whether or not such amount was subsequently distributed from the Thrift Savings Fund) will form the basis for a reduction in the individual’s annuity, under regulations prescribed by the Office. The reduced annuity to which the individual is entitled shall be equal to an amount which, when taken together with the amount referred to in subparagraph (A), would result in the present value of the total being actuarially equivalent to the present value of an unreduced CSRS-Offset annuity that would have been provided the individual. If— a surviving spouse elects CSRS-Offset benefits; and a FERS basic employee death benefit under section 8442(b) of title 5 , United States Code, was previously paid, then the survivor’s CSRS-Offset benefit shall be subject to a reduction, under regulations prescribed by the Office. The reduced annuity to which the individual is entitled shall be equal to an amount which, when taken together with the amount of the payment referred to under subparagraph (B) would result in the present value of the total being actuarially equivalent to the present value of an unreduced CSRS-Offset annuity that would have been provided the individual. An individual who previously received a payment ordered by a court or provided as a settlement of claim for losses resulting from a retirement coverage error may not make an election under this subsection unless repayment of that amount is waived in whole or in part under section 2208, and any amount not waived is repaid.

(“(c) Nonelection.— If the individual does not make an election under subsection (b) before any time limitation under this section, the retirement coverage shall be subject to the following rules: If corrective action was taken before the end of any time limitation under this section, that corrective action shall remain in effect. If corrective action was not taken before such time limitation, the employee shall be CSRS-Offset covered, retroactive to the date of the retirement coverage error.

“SEC. 2111 APPLICABILITY.

“This chapter shall apply in the case of any employee who— should be (or should have been) FERS covered but, as a result of a retirement coverage error, is (or was) Social Security-Only covered instead; should be (or should have been) CSRS-Offset covered but, as a result of a retirement coverage error, is (or was) Social Security-Only covered instead; or should be (or should have been) CSRS covered but, as a result of a retirement coverage error, is (or was) Social Security-Only covered instead.

“SEC. 2112 CORRECTION MANDATORY.

(“(a) Uncorrected Error.— If the retirement coverage error has not been corrected, as soon as practicable after discovery of the error, such individual shall be covered under the correct retirement coverage, effective as of the date of the retirement coverage error.

(“(b) Corrected Error.— If the retirement coverage error has been corrected, the corrective action previously taken shall remain in effect.

“SEC. 2121 EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-ONLY COVERED, BUT WHO IS ERRONEOUSLY CSRS OR CSRS-OFFSET COVERED INSTEAD.

(“(a) Applicability.— This section applies in the case of a retirement coverage error in which a Social Security-Only covered employee was erroneously CSRS covered or CSRS-Offset covered.

(“(b) Uncorrected Error.— This subsection applies if the retirement coverage error has not been corrected before the effective date of the regulations described in paragraph (3). In the case of an individual who is erroneously CSRS covered, as soon as practicable after discovery of the error, and subject to the right of an election under paragraph (3), such individual shall be CSRS-Offset covered, effective as of the date of the retirement coverage error. Upon written notice of a retirement coverage error, an individual may elect to be CSRS-Offset covered or Social Security-Only covered, effective as of the date of the retirement coverage error. Such election shall be made not later than 180 days after the date of receipt of such notice. If the individual does not make an election before the date provided under subparagraph (A), the individual shall remain CSRS-Offset covered. The Office shall prescribe regulations to carry out this paragraph.

(“(c) Corrected Error.— This subsection applies if the retirement coverage error was corrected before the effective date of the regulations described under subsection (b)(3). Not later than 180 days after the date of the enactment of this Act [ Sept. 19, 2000 ], the Office shall prescribe regulations authorizing individuals to elect, during the 18-month period immediately following the effective date of such regulations, to be CSRS-Offset covered or Social Security-Only covered, effective as of the date of the retirement coverage error. If an eligible individual does not make an election under paragraph (2) before the end of any time limitation under this subsection, the corrective action taken before such time limitation shall remain in effect.

“SEC. 2131 EMPLOYEE WHO SHOULD BE SOCIAL SECURITY-ONLY COVERED, CSRS COVERED, OR CSRS-OFFSET COVERED AND IS NOT FERS-ELIGIBLE, BUT WHO IS ERRONEOUSLY FERS COVERED INSTEAD.

(“(a) Applicability.— This section applies in the case of a retirement coverage error in which a Social Security-Only covered, CSRS covered, or CSRS-Offset covered employee not eligible to elect FERS coverage under authority of section 8402(c) of title 5 , United States Code, was erroneously FERS covered.

(“(b) Uncorrected Error.— This subsection applies if the retirement coverage error has not been corrected before the effective date of the regulations described in paragraph (2). Upon written notice of a retirement coverage error, an individual may elect to remain FERS covered or to be Social Security-Only covered, CSRS covered, or CSRS-Offset covered, as would have applied in the absence of the erroneous retirement coverage determination, effective as of the date of the retirement coverage error. Such election shall be made not later than 180 days after the date of receipt of such notice. An election of FERS coverage under this subsection is deemed to be an election under section 301 of the Federal Employees Retirement System Act of 1986 ( 5 U.S.C. 8331 note; Public Law 99–335 ; 100 Stat. 599 ). If the individual does not make an election before the date provided under subparagraph (A), the individual shall remain FERS covered, effective as of the date of the retirement coverage error. If under this section, an individual elects to be Social Security-Only covered, CSRS covered, or CSRS-Offset covered, all employee contributions to the Thrift Savings Fund made during the period of erroneous FERS coverage (and all earnings on such contributions) may remain in the Thrift Savings Fund in accordance with regulations prescribed by the Executive Director, notwithstanding any limit under section 8351 or 8432 of title 5, United States Code. Except as provided under paragraph (3), the Office shall prescribe regulations to carry out this subsection.

(“(c) Corrected Error.— This subsection applies if the retirement coverage error was corrected before the effective date of the regulations described under paragraph (2). Not later than 180 days after the date of the enactment of this Act [ Sept. 19, 2000 ], the Office shall prescribe regulations authorizing individuals to elect, during the 18-month period immediately following the effective date of such regulations to remain Social Security-Only covered, CSRS covered, or CSRS-Offset covered, or to be FERS covered, effective as of the date of the retirement coverage error. If an eligible individual does not make an election under paragraph (2), the corrective action taken before the end of any time limitation under this subsection shall remain in effect. An election of FERS coverage under this subsection is deemed to be an election under section 301 of the Federal Employees Retirement System Act of 1986 ( 5 U.S.C. 8331 note; Public Law 99–335 ; 100 Stat. 599 ).

“SEC. 2132 FERS-ELIGIBLE EMPLOYEE WHO SHOULD HAVE BEEN CSRS COVERED, CSRS-OFFSET COVERED, OR SOCIAL SECURITY-ONLY COVERED, BUT WHO WAS ERRONEOUSLY FERS COVERED INSTEAD WITHOUT AN ELECTION.

(“(a) In General.— If an individual was prevented from electing FERS coverage because the individual was erroneously FERS covered during the period when the individual was eligible to elect FERS under title III of the Federal Employees Retirement System Act [ Pub. L. 99–335 ] or the Federal Employees’ Retirement System Open Enrollment Act of 1997 ( Public Law 105–61 ; 111 Stat. 1318 et seq.) [ 5 U.S.C. 8331 notes], the individual— is deemed to have elected FERS coverage; and shall remain covered by FERS, unless the individual declines, under regulations prescribed by the Office, to be FERS covered. If an individual described under paragraph (1)(B) declines to be FERS covered, such individual shall be CSRS covered, CSRS-Offset covered, or Social Security-Only covered, as would apply in the absence of a FERS election, effective as of the date of the erroneous retirement coverage determination.

(“(b) Employee Contributions in Thrift Savings Fund.— If under this section, an individual declines to be FERS covered and instead is Social Security-Only covered, CSRS covered, or CSRS-Offset covered, as would apply in the absence of a FERS election, all employee contributions to the Thrift Savings Fund made during the period of erroneous FERS coverage (and all earnings on such contributions) may remain in the Thrift Savings Fund in accordance with regulations prescribed by the Executive Director, notwithstanding any limit under title 5, United States Code, that would otherwise be applicable.

(“(c) Inapplicability of Duration of Erroneous Coverage.— This section shall apply regardless of the length of time the erroneous coverage determination remained in effect.

“SEC. 2133 RETROACTIVE EFFECT.

“This chapter shall be effective as of January 1, 1987 , except that section 2132 shall not apply to individuals who made or were deemed to have made elections similar to those provided in this section under regulations prescribed by the Office before the effective date of this title.

“SEC. 2141 APPLICABILITY.

“This chapter shall apply in the case of any employee who should be (or should have been) CSRS-Offset covered but, as a result of a retirement coverage error, is (or was) CSRS covered instead.

“SEC. 2142 CORRECTION MANDATORY.

(“(a) Uncorrected Error.— If the retirement coverage error has not been corrected, as soon as practicable after discovery of the error, such individual shall be covered under the correct retirement coverage, effective as of the date of the retirement coverage error.

(“(b) Corrected Error.— If the retirement coverage error has been corrected before the effective date of this title, the corrective action taken before such date shall remain in effect.

“SEC. 2151 APPLICABILITY.

“This chapter shall apply in the case of any employee who should be (or should have been) CSRS covered but, as a result of a retirement coverage error, is (or was) CSRS-Offset covered instead.

“SEC. 2152 CORRECTION MANDATORY.

(“(a) Uncorrected Error.— If the retirement coverage error has not been corrected, as soon as practicable after discovery of the error, such individual shall be covered under the correct retirement coverage, effective as of the date of the retirement coverage error.

(“(b) Corrected Error.— If the retirement coverage error has been corrected before the effective date of this title, the corrective action taken before such date shall remain in effect.

“SEC. 2201 IDENTIFICATION AND NOTIFICATION REQUIREMENTS.

“Government agencies shall take all such measures as may be reasonable and appropriate to promptly identify and notify individuals who are (or have been) affected by a retirement coverage error of their rights under this title.

“SEC. 2202 INFORMATION TO BE FURNISHED TO AND BY AUTHORITIES ADMINISTERING THIS TITLE.

(“(a) Applicability.— The authorities identified in this subsection are— the Director of the Office of Personnel Management; the Commissioner of Social Security; and the Executive Director of the Federal Retirement Thrift Investment Board.

(“(b) Authority To Obtain Information.— Each authority identified in subsection (a) may secure directly from any department or agency of the United States information necessary to enable such authority to carry out its responsibilities under this title. Upon request of the authority involved, the head of the department or agency involved shall furnish that information to the requesting authority.

(“(c) Authority To Provide Information.— Each authority identified in subsection (a) may provide directly to any department or agency of the United States all information such authority believes necessary to enable the department or agency to carry out its responsibilities under this title.

(“(d) Limitation; Safeguards.— Each of the respective authorities under subsection (a) shall— request or provide only such information as that authority considers necessary; and establish, by regulation or otherwise, appropriate safeguards to ensure that any information obtained under this section shall be used only for the purpose authorized.

“SEC. 2203 SERVICE CREDIT DEPOSITS.

(“(a) CSRS Deposit.— In the case of a retirement coverage error in which— a FERS covered employee was erroneously CSRS covered or CSRS-Offset covered; the employee made a service credit deposit under the CSRS rules; and there is a subsequent retroactive change to FERS coverage, the excess of the amount of the CSRS civilian or military service credit deposit over the FERS civilian or military service credit deposit, together with interest computed in accordance with paragraphs (2) and (3) of section 8334(e) of title 5 , United States Code, and regulations prescribed by the Office, shall be paid to the employee, the annuitant or, in the case of a deceased employee, to the individual entitled to lump-sum benefits under section 8424(d) of title 5 , United States Code.

(“(b) FERS Deposit.— This subsection applies in the case of an erroneous retirement coverage determination in which— the employee owed a service credit deposit under section 8411(f) of title 5 , United States Code; and there is a subsequent retroactive change to CSRS or CSRS-Offset coverage; or the service becomes creditable under chapter 83 of title 5, United States Code. If at the time of commencement of an annuity there is remaining unpaid CSRS civilian or military service credit deposit for service described under paragraph (1), the annuity shall be reduced based upon the amount unpaid together with interest computed in accordance with section 8334(e)(2) and (3) of title 5, United States Code, and regulations prescribed by the Office. The reduced annuity to which the individual is entitled shall be equal to an amount that, when taken together with the amount referred to under subparagraph (A), would result in the present value of the total being actuarially equivalent to the present value of the unreduced annuity benefit that would have been provided the individual. If at the time of commencement of a survivor annuity, there is remaining unpaid any CSRS service credit deposit described under paragraph (1), and there has been no actuarial reduction in an annuity under paragraph (2), the survivor annuity shall be reduced based upon the amount unpaid together with interest computed in accordance with section 8334(e)(2) and (3) of title 5, United States Code, and regulations prescribed by the Office. The reduced survivor annuity to which the individual is entitled shall be equal to an amount that, when taken together with the amount referred to under subparagraph (A), would result in the present value of the total being actuarially equivalent to the present value of an unreduced survivor annuity benefit that would have been provided the individual.

“SEC. 2204 PROVISIONS RELATED TO SOCIAL SECURITY COVERAGE OF MISCLASSIFIED EMPLOYEES.

(“(a) Definitions.— In this section, the term— ‘covered individual’ means any employee, former employee, or annuitant who— is or was employed erroneously subject to CSRS coverage as a result of a retirement coverage error; and is or was retroactively converted to CSRS-offset coverage, FERS coverage, or Social Security-Only coverage; and ‘excess CSRS deduction amount’ means an amount equal to the difference between the CSRS deductions withheld and the CSRS-Offset or FERS deductions, if any, due with respect to a covered individual during the entire period the individual was erroneously subject to CSRS coverage as a result of a retirement coverage error.

(“(b) Reports to Commissioner of Social Security.— In order to carry out the Commissioner of Social Security’s responsibilities under title II of the Social Security Act [ 42 U.S.C. 401 et seq.], the Commissioner may request the head of each agency that employs or employed a covered individual to report (in coordination with the Office of Personnel Management) in such form and within such timeframe as the Commissioner may specify, any or all of— the total wages (as defined in section 3121(a) of the Internal Revenue Code of 1986 [ 26 U.S.C. 3121(a) ]) paid to such individual during each year of the entire period of the erroneous CSRS coverage; and such additional information as the Commissioner may require for the purpose of carrying out the Commissioner’s responsibilities under title II of the Social Security Act ( 42 U.S.C. 401 et seq.). The head of an agency or the Office shall comply with a request from the Commissioner under paragraph (1). For purposes of section 201 of the Social Security Act ( 42 U.S.C. 401 ), wages reported under this subsection shall be deemed to be wages reported to the Secretary of the Treasury or the Secretary’s delegates pursuant to subtitle F of the Internal Revenue Code of 1986 [ 26 U.S.C. 6001 et seq.].

(“(c) Payment Relating to OASDI Employee Taxes.— The Office shall transfer from the Civil Service Retirement and Disability Fund to the General Fund of the Treasury an amount equal to the lesser of the excess CSRS deduction amount or the OASDI taxes due for covered individuals (as adjusted by amounts transferred relating to applicable OASDI employee taxes as a result of corrections made, including corrections made before the date of the enactment of this Act [ Sept. 19, 2000 ]). If the excess CSRS deductions exceed the OASDI taxes, any difference shall be paid to the covered individual or survivors, as appropriate.

(“(d) Payment of OASDI Employer Taxes.— Each employing agency shall pay an amount equal to the OASDI employer taxes owed with respect to covered individuals during the applicable period of erroneous coverage (as adjusted by amounts transferred for the payment of such taxes as a result of corrections made, including corrections made before the date of the enactment of this Act [ Sept. 19, 2000 ]). Amounts paid under this subsection shall be determined subject to any limitation under section 6501 of the Internal Revenue Code of 1986 [ 26 U.S.C. 6501 ].

“SEC. 2205 THRIFT SAVINGS PLAN TREATMENT FOR CERTAIN INDIVIDUALS.

(“(a) Applicability.— This section applies to an individual who— is eligible to make an election of coverage under section 2101 or 2102, and only if FERS coverage is elected (or remains in effect) for the employee involved; or is described in section 2111, and makes or has made retroactive employee contributions to the Thrift Savings Fund under regulations prescribed by the Executive Director.

(“(b) Payment Into Thrift Savings Fund.— With respect to an individual to whom this section applies, the employing agency shall pay to the Thrift Savings Fund under subchapter III of chapter 84 of title 5, United States Code, for credit to the account of the employee involved, an amount equal to the earnings which are disallowed under section 8432a(a)(2) of such title on the employee’s retroactive contributions to such Fund. Earnings under subparagraph (A) shall be computed in accordance with the procedures for computing lost earnings under section 8432a of title 5 , United States Code. The amount paid by the employing agency shall be treated for all purposes as if that amount had actually been earned on the basis of the employee’s contributions. If an individual made retroactive contributions before the effective date of the regulations under section 2101(c), the Director may provide for an alternative calculation of lost earnings to the extent that a calculation under subparagraph (B) is not administratively feasible. The alternative calculation shall yield an amount that is as close as practicable to the amount computed under subparagraph (B), taking into account earnings previously paid. In cases in which the retirement coverage error was corrected before the effective date of the regulations under section 2101(c), the employee involved shall have an additional opportunity to make retroactive contributions for the period of the retirement coverage error (subject to applicable limits), and such contributions (including any contributions made after the date of the correction) shall be treated in accordance with paragraph (1).

(“(c) Regulations.— The Executive Director shall prescribe regulations appropriate to carry out this section relating to retroactive employee contributions and payments made on or after the effective date of the regulations under section 2101(c). The Office, in consultation with the Federal Retirement Thrift Investment Board, shall prescribe regulations appropriate to carry out this section relating to the calculation of lost earnings on retroactive employee contributions made before the effective date of the regulations under section 2101(c).

“SEC. 2206 CERTAIN AGENCY AMOUNTS TO BE PAID INTO OR REMAIN IN THE CSRDF.

(“(a) Certain Excess Agency Contributions To Remain in the CSRDF.— Any amount described under paragraph (2) shall— remain in the CSRDF; and may not be paid or credited to an agency. Paragraph (1) refers to any amount of contributions made by an agency under section 8423 of title 5 , United States Code, on behalf of any employee, former employee, or annuitant (or survivor of such employee, former employee, or annuitant) who makes an election to correct a retirement coverage error under this title, that the Office determines to be excess as a result of such election.

(“(b) Additional Employee Retirement Deductions To Be Paid by Agency.— If a correction in a retirement coverage error results in an increase in employee deductions under section 8334 or 8422 of title 5, United States Code, that cannot be fully paid by a reallocation of otherwise available amounts previously deducted from the employee’s pay as employment taxes or retirement deductions, the employing agency— shall pay the required additional amount into the CSRDF; and shall not seek repayment of that amount from the employee, former employee, annuitant, or survivor.

“SEC. 2207 CSRS COVERAGE DETERMINATIONS TO BE APPROVED BY OPM.

“No agency shall place an individual under CSRS coverage unless— the individual has been employed with CSRS coverage within the preceding 365 days; or the Office has agreed in writing that the agency’s coverage determination is correct.

“SEC. 2208 DISCRETIONARY ACTIONS BY DIRECTOR.

(“(a) In General.— The Director of the Office of Personnel Management may— extend the deadlines for making elections under this title in circumstances involving an individual’s inability to make a timely election due to a cause beyond the individual’s control; provide for the reimbursement of necessary and reasonable expenses incurred by an individual with respect to settlement of a claim for losses resulting from a retirement coverage error, including attorney’s fees, court costs, and other actual expenses; compensate an individual for monetary losses that are a direct and proximate result of a retirement coverage error, excluding claimed losses relating to forgone contributions and earnings under the Thrift Savings Plan under subchapter III of chapter 84 of title 5, United States Code, and all other investment opportunities; and waive payments required due to correction of a retirement coverage error under this title.

(“(b) Similar Actions.— In exercising the authority under this section, the Director shall, to the extent practicable, provide for similar actions in situations involving similar circumstances.

(“(c) Judicial Review.— Actions taken under this section are final and conclusive, and are not subject to administrative or judicial review.

(“(d) Regulations.— The Office of Personnel Management shall prescribe regulations regarding the process and criteria used in exercising the authority under this section.

(“(e) Report.— The Office of Personnel Management shall, not later than 180 days after the date of the enactment of this Act [ Sept. 19, 2000 ], and annually thereafter for each year in which the authority provided in this section is used, submit a report to each House of Congress on the operation of this section.

“SEC. 2209 REGULATIONS.

(“(a) In General.— In addition to the regulations specifically authorized in this title, the Office may prescribe such other regulations as are necessary for the administration of this title.

(“(b) Former Spouse.— The regulations prescribed under this title shall provide for protection of the rights of a former spouse with entitlement to an apportionment of benefits or to survivor benefits based on the service of the employee.

“SEC. 2301 PROVISIONS TO AUTHORIZE CONTINUED CONFORMITY OF OTHER FEDERAL RETIREMENT SYSTEMS.

(“(a) Foreign Service.— Sections 827 and 851 of the Foreign Service Act of 1980 ( 22 U.S.C. 4067 and 4071) shall apply with respect to this title in the same manner as if this title were part of— the Civil Service Retirement System, to the extent this title relates to the Civil Service Retirement System; and the Federal Employees’ Retirement System, to the extent this title relates to the Federal Employees’ Retirement System.

(“(b) Central Intelligence Agency.— Sections 292 and 301 of the Central Intelligence Agency Retirement Act ( 50 U.S.C. 2141 and 2151) shall apply with respect to this title in the same manner as if this title were part of— the Civil Service Retirement System, to the extent this title relates to the Civil Service Retirement System; and the Federal Employees’ Retirement System, to the extent this title relates to the Federal Employees’ Retirement System.

“SEC. 2302 AUTHORIZATION OF PAYMENTS.

“All payments authorized or required by this title to be paid from the Civil Service Retirement and Disability Fund, together with administrative expenses incurred by the Office in administering this title, shall be deemed to have been authorized to be paid from that Fund, which is appropriated for the payment thereof.

“SEC. 2303 INDIVIDUAL RIGHT OF ACTION PRESERVED FOR AMOUNTS NOT OTHERWISE PROVIDED FOR UNDER THIS TITLE.

“Nothing in this title shall preclude an individual from bringing a claim against the Government of the United States which such individual may have under section 1346(b) or chapter 171 of title 28, United States Code, or any other provision of law (except to the extent the claim is for any amounts otherwise provided for under this title).

“SEC. 2401 EFFECTIVE DATE.

“Except as otherwise provided in this title, this title shall take effect on the date of the enactment of this Act [ Sept. 19, 2000 ].”

“SEC. 301 ELECTIONS.

(“(a) Elections for Individuals Subject to the Civil Service Retirement System.— Any individual (other than an individual under subsection (b)) who, as of June 30, 1987 , is employed by the Federal Government, and who is then subject to subchapter III of chapter 83 of title 5, United States Code, may elect to become subject to chapter 84 of such title. An election under this paragraph may not be made before July 1, 1987 , or after December 31, 1987 . Any individual who, after June 30, 1987 , becomes reemployed by the Federal Government, and who is then subject to subchapter III of chapter 83 of title 5, United States Code, may elect to become subject to chapter 84 of such title. An election under this paragraph shall not be effective unless it is made during the six-month period beginning on the date on which reemployment commences. Except as provided in subparagraph (B), any individual— who is excluded from the operation of subchapter III of chapter 83 of title 5, United States Code, under subsection (g), (i), (j), or ( l ) of section 8347 of such title, and with respect to whom chapter 84 of title 5, United States Code, does not apply because of section 8402(b)(2) of such title, shall, for purposes of an election under paragraph (1) or (2), be treated as if such individual were subject to subchapter III of chapter 83 of title 5, United States Code. An election under this paragraph may not be made by any individual who would be excluded from the operation of chapter 84 of title 5, United States Code, under section 8402(c) of such title (relating to exclusions based on the temporary or intermittent nature of one’s employment). A member of the Foreign Service described in section 103(6) of the Foreign Service Act of 1980 [ 22 U.S.C. 3903(6) ] shall be ineligible to make any election under this subsection.

(“(b) Elections for Certain Individuals Serving Continuously Since December 31, 1983.— The following rules shall apply in the case of any individual described in section 8402(b)(1) of title 5 , United States Code: If, as of December 31, 1986 , the individual is subject to subchapter III of chapter 83 of title 5, United States Code, but is not subject to section 204 of the Federal Employees’ Retirement Contribution Temporary Adjustment Act of 1983 [ section 204 of Pub. L. 98–168 , set out below], the individual shall remain so subject to such subchapter unless the individual elects, after June 30, 1987 , and before January 1, 1988 — to become subject to such subchapter under the same terms and conditions as apply in the case of an individual described in section 8402(b)(2) of such title who is subject to such subchapter; or to become subject to chapter 84 of such title. An individual eligible to make an election under this paragraph may make the election described in subparagraph (A) or (B), but not both. If, as of December 31, 1986 , the individual is subject to subchapter III of chapter 83 of title 5, United States Code, and is also subject to section 204 of the Federal Employees’ Retirement Contribution Temporary Adjustment Act of 1983 [set out below], the individual— shall, as of January 1, 1987 , become subject to such subchapter under the same terms and conditions as apply in the case of an individual described in section 8402(b)(2) of such title who is subject to such subchapter; and may (during the six-month period described in subsection (a)(1)(B)) elect to become subject to chapter 84 of such title. If, as of December 31, 1986 , the individual is not subject to subchapter III of chapter 83 of title 5, United States Code, such individual may, during the 6-month period described in subsection (a)(1)(B)— elect to become subject to chapter 84 of such title; or if such individual has not since made an election described in subparagraph (B), elect to become subject to subchapter III of chapter 83 of such title under the same terms and conditions as apply in the case of an individual described in section 8402(b)(2) of such title who is subject to such subchapter. Nothing in this paragraph shall be considered to preclude the individual from electing to become subject to subchapter III of chapter 83 of such title pursuant to notification under section 8331(2) of such title— during the period after December 31, 1986 , and before July 1, 1987 ; or after December 31, 1987 , if such individual has not since become subject to subchapter III of chapter 83, or chapter 84, of such title. Any individual who becomes subject to subchapter III of chapter 83 of such title pursuant to notification under section 8331(2) of such title after December 31, 1986 , shall become subject to such subchapter under the same terms and conditions as apply in the case of an individual described in section 8402(b)(2) of such title who is subject to such subchapter.

(“(c) Effective Date; Irrevocability.— An election made under this section— shall take effect beginning with the first pay period beginning after the date of the election; and shall be irrevocable.

(“(d) Condition for Making an Election; Extension To Satisfy Condition.— An election under this section to become subject to chapter 84 of title 5, United States Code, shall not be considered effective in the case of an individual having one or more former spouses, unless the election is made with the written consent of such former spouse (or each such former spouse, if there is more than one). This subsection applies with respect to a former spouse who (based on the service of the individual involved) is entitled to benefits under section 8341(h) or 8345(j) of title 5, United States Code, 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 of Personnel Management has been duly notified. This subsection does not apply with respect to a former spouse who has ceased to be so entitled as a result of remarrying before age 55. The requirement under paragraph (1) shall be considered satisfied with respect to a former spouse if the individual seeking to make the election establishes to the satisfaction of the Office (in accordance with regulations prescribed by the Office)— that the former spouse’s whereabouts cannot be determined; or that, due to exceptional circumstances, requiring the individual to seek the former spouse’s consent would otherwise be inappropriate. The Office shall, upon application of an individual, grant an extension for such individual to make an election referred to in paragraph (1) if such individual— files application for extension before the end of the period during which such individual would otherwise be eligible to make such election; and demonstrates to the satisfaction of the Office that the extension is needed to secure the modification of a decree of divorce or annulment (or a court order or court-approved property settlement incident to any such decree) in order to satisfy the consent requirement under paragraph (1). An extension under this paragraph shall be for 6 months or for such longer period as the Office considers appropriate.

(“(e) Exclusions.— This section does not apply to an individual under section 8331(1)(G) of title 5 , United States Code.

“SEC. 302 EFFECT OF AN ELECTION UNDER SECTION 301 TO BECOME SUBJECT TO THE FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.

(“(a) General and Special Rules.— All provisions of chapter 84 of title 5, United States Code (including those relating to disability benefits, survivor benefits, and any reductions to provide for survivor benefits) shall apply with respect to any individual who becomes subject to such chapter pursuant to an election under section 301, except if, or to the extent that, such provisions are inconsistent with the following: Any civilian service which is performed before the effective date of the election under section 301 shall not be creditable under chapter 84 of title 5, United States Code, except as otherwise provided in this subsection. Any service described in subparagraph (A) which is covered service within the meaning of section 203(a)(3) of the Federal Employees’ Retirement Contribution Temporary Adjustment Act of 1983 ( 97 Stat. 1107 ; 5 U.S.C. 8331 note) (hereinafter in this section referred to as ‘covered service’) shall be creditable under chapter 84 of title 5, United States Code, if— with respect to any such service performed before January 1, 1987 , 1.3 percent of basic pay for such service was withheld in accordance with such Act or, if either such withholding was not made or was made, but the amount so withheld was subsequently refunded, 1.3 percent of basic pay for such period is deposited to the credit of the Civil Service Retirement and Disability Fund (hereinafter in this section referred to as the ‘Fund’), with interest (computed under section 8334(e) of such title); and with respect to any such service performed after December 31, 1986 , and before the effective date of the election, an amount equal to the percentage of basic pay for such service which would be required to be withheld under section 8422(a) of title 5 , United States Code, has been contributed to the Fund by the individual involved, whether by withholdings from pay or, if either no withholding was made or was made, but the amount withheld was subsequently refunded, the aforementioned percentage of basic pay for such period is deposited to the credit of the Fund, with interest (computed under section 8334(e) of such title). Any service described in subparagraph (A)— which is not covered service; which constitutes service of a type described in section 8411(b)(3) of title 5 , United States Code (determined without regard to whether such service was performed before, on, or after January 1, 1989 , and without regard to the provisions of section 8411(f) of such title); and which, in the aggregate, is equal to less than 5 years; shall be creditable under chapter 84 of such title, subject to section 8411(f) of such title. Any service described in subparagraph (A)— which is not covered service; which constitutes service of a type described in section 8411(b)(3) of title 5 , United States Code (determined without regard to whether such service was performed before, on, or after January 1, 1989 , and without regard to the provisions of section 8411(f) of such title); and which, in the aggregate, is equal to 5 years or more; shall be creditable for purposes of— section 8410 of such title, relating to the minimum period of civilian service required to be eligible for an annuity; any provision of section 8412 (other than subsection (d) or (e) thereof), 8413, 8414, 8442(b)(1), 8443(a)(1), or 8451 of such title which relates to a minimum period of service for entitlement to an annuity; the provisions of paragraphs (4) and (6); any provision of section 8412(d) of such title which relates to a minimum period of service for entitlement to an annuity, but only if and to the extent that the service described in subparagraph (A) was as a law enforcement officer or firefighter; any provision of section 8412(e) of such title which relates to a minimum period of service for entitlement to an annuity, but only if and to the extent that the service described in subparagraph (A) was as an air traffic controller; and the provision of subsection (h) [now (i)] of section 8415 which relates to the minimum period of service required to qualify for the higher accrual rate under such subsection. Except as provided in subparagraph (B), the creditability under chapter 84 of title 5, United States Code, of any military service which is performed before the effective date of the election under section 301 shall be determined in accordance with applicable provisions of such chapter. If the electing individual has performed service described in clauses (i) through (iii) of paragraph (1)(D), service described in subparagraph (A) which, but for the provisions of subsection (b), would be creditable under subchapter III of chapter 83 of title 5, United States Code, as in effect on December 31, 1986 , shall be creditable for purposes of— any provision of section 8412 (other than subsection (d) or (e) thereof), 8413, or 8414 of such title which relates to a minimum period of service for entitlement to an annuity; and the provisions of paragraph (4). If the electing individual becomes entitled to an annuity under subchapter II of chapter 84 of title 5, United States Code, or dies leaving a survivor or survivors entitled to benefits under subchapter IV of such chapter, the annuity for such individual shall be equal to the sum of the individual’s accrued benefits under the Civil Service Retirement System (as determined under paragraph (4)) and the individual’s accrued benefits under the Federal Employees’ Retirement System (as determined under paragraph (5)). An annuity computed under this subparagraph shall be deemed to be the individual’s annuity computed under section 8415 of title 5 , United States Code. If the electing individual becomes entitled to an annuity under subchapter V of chapter 84 of title 5, United States Code, and if it becomes necessary to compute an annuity under section 8415 of such title with respect to such individual as a result of such individual’s having become so entitled, the methodology set forth in subparagraph (A) shall be used in computing any such annuity under section 8415. Accrued benefits under this paragraph shall be computed in accordance with applicable provisions of subchapter III of chapter 83 of title 5, United States Code (but without regard to subsection (j) or (k), or the second sentence of subsection (e), of section 8339 of such title) using only any civilian service under paragraph (1)(D), and any military service under paragraph (2)(B), which would be creditable for purposes of computing an annuity under such subchapter. Notwithstanding the preceding sentence, in computing accrued benefits under this paragraph for an individual retiring under section 8412(g) or 8413(b) of title 5, United States Code, section 8339(h) of such title (relating to reductions based on age at date of separation) shall not apply. Accrued benefits under this paragraph shall be computed under section 8415 of title 5 , United States Code, using— total service creditable under chapter 84 of such title which is performed on or after the effective date of the election under section 301; and with respect to service performed before such effective date— creditable civilian service (as determined under applicable provisions of this subsection) other than any service described in paragraph (1)(D); and creditable military service (as determined under applicable provisions of this subsection) other than any service described in paragraph (2)(B). For purposes of any computation under paragraph (4) or (5), the average pay to be used shall be the largest annual rate resulting from averaging the individual’s rates of basic pay in effect over any 3 consecutive years of creditable service or, in the case of an annuity based on service of less than 3 years, over the total period of service so creditable, with each rate weighted by the period it was in effect. For purposes of subparagraph (A), service shall be considered creditable if it would be considered creditable for purposes of determining average pay under chapter 83 or 84 of title 5, United States Code. The cost-of-living adjustments for the annuity of the electing individual shall be made as follows: The portion of the annuity attributable to paragraph (4) shall be adjusted at the time and in the amount provided for under section 8340 of title 5 , United States Code. The portion of the annuity attributable to paragraph (5) shall be adjusted at the time and in the amount provided for under section 8462 of title 5 , United States Code. For purposes of any computation under paragraph (4) in the case of an individual who retires under section 8412 or 8414 of title 5, United States Code, or who dies leaving a survivor or survivors entitled to benefits under subchapter IV of such chapter, sick leave creditable under section 8339(m) of such title shall be equal to the number of days of unused sick leave to the individual’s credit as of the date of retirement or as of the effective date of the individual’s election under section 301, whichever is less. In computing the annuity under paragraph (3) for an individual retiring under section 8412(g) or 8413(b) of title 5, United States Code, the reduction under section 8415(g) [now 8415(h)] of such title shall apply with respect to the sum computed under such paragraph. An annuity supplement under section 8421 of title 5 , United States Code, shall be computed using the same service as is used for the computation under paragraph (5). Effective from its commencing date, an annuity payable to an annuitant’s survivor (other than a child under section 8443 of title 5 , United States Code) shall be increased by the total percent by which the deceased annuitant’s annuity was increased under paragraph (7). If the electing individual is a reemployed annuitant under section 8344 of title 5 , United States Code, under conditions allowing the annuity to continue during reemployment, payment of the annuitant’s annuity shall continue after the effective date of the election, and an amount equal to the annuity allocable to the period of actual employment shall continue to be deducted from the annuitant’s pay and deposited as provided in subsection (a) of such section. Deductions from pay under section 8422(a) of such title and contributions under section 8423 of such title shall begin effective on the effective date of the election. Notwithstanding any provision of section 301, an election under such section shall not be available to any reemployed annuitant who would be excluded from the operation of chapter 84 of title 5, United States Code, under section 8402(c) of such title (relating to exclusions based on the temporary or intermittent nature of one’s employment). If the annuitant serves on a full-time basis for at least 1 year, or on a part-time basis for periods equivalent to at least 1 year of full-time service, such annuitant’s annuity, on termination of reemployment, shall be increased by an annuity computed— with respect to reemployment service before the effective date of the election, under section 8339(a), (b), (d), (e), (h), (i), and (n) of title 5, United States Code, as may apply based on the reemployment in which such annuitant was engaged before such effective date; and with respect to reemployment service on or after the effective date of the election, under section 8415(a) through (g) [now 8415(a)–(c), (e)–(h)] of such title, as may apply based on the reemployment in which such annuitant was engaged on or after such effective date; with the ‘average pay’ used in any computation under clause (i) or (ii) being determined (based on rates of pay in effect during the period of reemployment, whether before, on, or after the effective date of the election) in the same way as provided for in paragraph (6). If the annuitant is receiving a reduced annuity as provided in section 8339(j) or section 8339(k)(2) of title 5 , United States Code, the increase in annuity payable under this subparagraph is reduced by 10 percent and the survivor annuity payable under section 8341(b) of such title is increased by 55 percent of the increase in annuity payable under this subparagraph, unless, at the time of claiming the increase payable under this subparagraph, the annuitant notifies the Office of Personnel Management in writing that such annuitant does not desire the survivor annuity to be increased. If the annuitant dies while still reemployed, after having been reemployed for at least 1 full year (or the equivalent thereof, in the case of part-time employment), any survivor annuity payable under section 8341(b) of such title based on the service of such annuitant is increased as though the reemployment had otherwise terminated. In applying paragraph (7) to an amount under this subparagraph, any portion of such amount attributable to clause (i) shall be adjusted under subparagraph (A) of such paragraph, and any portion of such amount attributable to clause (ii) shall be adjusted under subparagraph (B) of such paragraph. If the annuitant serves on a full-time basis for at least 5 years, or on a part-time basis for periods equivalent to at least 5 years of full-time service, such annuitant may elect, instead of the benefit provided by subparagraph (B), to have such annuitant’s rights redetermined, effective upon separation from employment. If the annuitant so elects, the redetermined annuity will become payable as if such annuitant were retiring for the first time based on the separation from reemployment service, and the provisions of this section concerning computation of annuity (other than any provision of this paragraph) shall apply. If the annuitant dies while still reemployed, after having been reemployed for at least 5 full years (or the equivalent thereof, in the case of part-time employment), any person entitled to a survivor annuity under section 8341(b) of title 5 , United States Code, based on the service of such annuitant shall be permitted to elect to have such person’s rights redetermined in accordance with regulations which the Office shall prescribe. Redetermined benefits elected under this clause shall be in lieu of any increased benefits which would otherwise be payable in accordance with the next to last sentence of subparagraph (B). If the annuitant serves on a full-time basis for less than 1 year (or the equivalent thereof, in the case of part-time employment), any amounts withheld under section 8422(a) of title 5 , United States Code, from such annuitant’s pay for the period (or periods) involved shall, upon written application to the Office, be payable to such annuitant (or the appropriate survivor or survivors, determined in the order set forth in section 8342(c) of such title). For purposes of determining the period of an annuitant’s reemployment service under this paragraph, a period of reemployment service shall not be taken into account unless— with respect to service performed before the effective date of the election under section 301, it is service which, if performed for at least 1 full year, would have allowed such annuitant to elect under section 8344(a) of title 5 , United States Code, to have deductions withheld from pay; or with respect to service performed on or after the effective date of the election under section 301, it is service with respect to which deductions from pay would be required to be withheld under the second sentence of section 8468(a) of title 5 , United States Code.

(“(b) Chapter 83 Generally Inapplicable.— Except as provided in subsection (a) or paragraph (2), subchapter III of chapter 83 of title 5, United States Code, shall not apply with respect to any individual who becomes subject to chapter 84 of title 5, United States Code, pursuant to an election under section 301. Nothing in paragraph (1), or in subchapter III of chapter 83 of title 5, United States Code, shall preclude the making of a deposit under such subchapter with respect to any civilian service under subsection (a)(1)(D) or military service under subsection (a)(2)(B) either by the electing individual or, for purposes of survivor annuities, by a survivor of such individual. Nothing in paragraph (1) shall preclude the payment of any lump-sum credit in accordance with section 8342 of title 5 , United States Code.

(“(c) Refunds Relating to Certain Civilian Service.— Any individual who makes an election under section 301 to become subject to chapter 84 and who, with respect to any period before the effective date of the election, has made a contribution to the Civil Service Retirement System (whether by deductions from pay or by a deposit or redeposit) and has not taken a refund of the contribution (as so made), shall be entitled to a refund equal to— for a period of service under clause (i) of subsection (a)(1)(B), the amount by which— the amount contributed with respect to such period, exceeds the amount required under such clause (i) with respect to such period; for a period of service under clause (ii) of subsection (a)(1)(B), the amount by which— the amount so contributed with respect to such period, exceeds the amount required under such clause (ii) with respect to such period; and for a period of service under subparagraph (C) of subsection (a)(1), the amount by which— the amount so contributed with respect to such period, exceeds the amount required under such subparagraph with respect to such period. In accordance with regulations prescribed by the Office of Personnel Management, a refund under this subsection shall be payable upon written application therefor filed with the Office and shall include interest at the rate provided in section 8334(e)(3) of title 5 , United States Code. Interest on the refund shall accrue monthly and shall be compounded annually.

“SEC. 303

(“(a) Refund.— Any individual who makes an election under section 301(b)(1)(A) shall, upon written application to the Office of Personnel Management, be entitled to a refund equal to— for the period beginning on January 1, 1984 , and ending on December 31, 1986 , the amount by which— the total amount deducted from such individual’s basic pay under section 8334(a)(1) of title 5 , United States Code, for such period, exceeds 1.3 percent of such individual’s total basic pay for such period; and for the period beginning on January 1, 1987 , and ending on the day before the effective date of the election, the amount by which— the total amount deducted from such individual’s basic pay under such section 8334(a)(1) for such period, exceeds the total amount which would have been deducted if such individual’s basic pay had instead been subject to section 8334(k) of such title during such period. A refund under this subsection shall be computed with interest in accordance with section 302(c)(2) and regulations prescribed by the Office of Personnel Management.

(“(b) Deposit Requirements.— In the case of an individual who becomes subject to subchapter III of chapter 83 of title 5, United States Code, pursuant to notification as described in the second sentence of section 301(b)(3)(B), service performed by such individual before the effective date of the notification shall not be considered creditable under such subchapter unless— for any service during the period beginning on January 1, 1987 , and ending on the day before such effective date, there is deposited to the credit of the Fund a percentage of basic pay for such period equal to the percentage which would have applied under section 8334(k) of such title if such individual’s pay had been subject to such section during such period; for any period of service beginning on January 1, 1984 , and ending on December 31, 1986 , there is deposited to the credit of the Fund an amount equal to 1.3 percent of basic pay for such period; and for any period of service before January 1, 1984 , there is deposited to the credit of the Fund any amount required with respect to such period under such subchapter. A deposit under this subsection may be made by the individual or, for purposes of survivor annuities, a survivor of such individual.”

“Sec. 201

This title may be cited as the ‘Federal Employees’ Retirement Contribution Temporary Adjustment Act of 1983’.

“Sec. 202

It is the policy of the Government— that the amount required to be contributed to certain public retirement systems by employees and officers of the Government who are also required to pay employment taxes relating to benefits under title II of the Social Security Act [ 42 U.S.C. 401 et seq.] for service performed after December 31, 1983 , be modified until the date on which such employees and officers are covered by a new Government retirement system (the design, structure, and provisions of which have not been determined on the date of enactment of this Act [ Nov. 29, 1983 ]) or January 1, 1987 , whichever is earlier; that the Treasury be required to pay into such retirement systems the remainder of the amount such employees and officers would have contributed during such period but for the temporary modification; that the employing agencies make contributions to the retirement systems with respect to such service in amounts required by law in effect before January 1, 1984 , without reduction in such amounts; that such employees and officers accrue credit for service for the purposes of the public retirement systems in effect on the date of enactment of this Act [ Nov. 29, 1983 ] until a new Government retirement system covering such employees and officers is established; that, where appropriate, deposits to the credit of such a retirement system be required with respect to service performed by an employee or officer of the Government during the period described in clause (1), and, where appropriate, annuities be offset by the amount of certain social security benefits attributable to such service; and that such employees and officers who are first employed in civilian service by the Government or first take office in civilian service in the Government on or after January 1, 1984 , become subject to such new Government retirement system as may be established for employees and officers of the Government on or after January 1, 1984 , and before January 1, 1987 , with credit for service performed after December 31, 1983 , by such employees and officers transferred to such new Government retirement system.

“Sec. 203

(a) For the purposes of this title— the term ‘covered employee’ means any individual whose service is covered service; the term ‘covered retirement system’ means— the Civil Service Retirement and Disability System under subchapter III of chapter 83 of title 5, United States Code; the Foreign Service Retirement and Disability System under chapter 8 of the Foreign Service Act of 1980 ( 22 U.S.C. 4041 et seq.); the Central Intelligence Agency Retirement and Disability System under the Central Intelligence Agency Retirement Act of 1964 for Certain Employees ([former] 50 U.S.C. 403 note); and any other retirement system (other than a new Government retirement system) under which a covered employee who is a participant in the system is required to make contributions to the system in an amount equal to a portion of the participant’s basic pay for covered service, as determined by the President; the term ‘covered service’ means service which is employment for the purposes of title II of the Social Security Act [ 42 U.S.C. 401 et seq.] and chapter 21 of the Internal Revenue Code of 1986 [ 26 U.S.C. 3101 et seq.] by reason of the amendments made by section 101 of the Social Security Amendments of 1983 ( 97 Stat. 67 ) [amending section 3121 of Title 26 , Internal Revenue Code, and sections 409 and 410 of Title 42, The Public Health and Welfare, and enacting provisions set out as notes under section 3121 of Title 26 and section 410 of Title 42 ]; and the term ‘new Government retirement system’ means any retirement system which (A) is established for officers or employees of the Government by or pursuant to a law enacted after December 31, 1983 , and before January 1, 1987 , and (B) takes effect on or before January 1, 1987 .

(“(b) The President shall publish the determinations made for the purpose of subsection (a)(2)(D) in an Executive order.

“Sec. 204

(a) In the case of a covered employee who is participating in a covered retirement system, an employing agency shall deduct and withhold only 1.3 percent of the basic pay of such employee under— section 8334 of title 5 , United States Code; section 805 of the Foreign Service Act of 1980 ( 22 U.S.C. 4045 ); section 211 of the Central Intelligence Agency Retirement Act of 1964 for Certain Employees ([former] 50 U.S.C. 403 note); or any provision of any other covered retirement system which requires a participant in the system to make contributions of a portion of the basic pay of the participant; for covered service which is performed after December 31, 1983 , and before the earlier of the effective date of a new Government retirement system or January 1, 1987 . Deductions shall be made and withheld as provided by such provisions in the case of covered service which is performed on or after such effective date or January 1, 1987 , as the case may be, and is not subject to a new Government retirement system.

(“(b) Employing agencies of the Government shall make contributions with respect to service to which subsection (a) of this section applies under the second sentence of section 8334(a)(1) of title 5 , United States Code, the second sentence of section 805(a) of the Foreign Service Act of 1980 ( 22 U.S.C. 4045(a) ), the second sentence of section 211(a) of the Central Intelligence Agency Retirement Act of 1964 for Certain Employees ([former] 50 U.S.C. 403 note), and any provision of any other covered retirement system requiring a contribution by the employing agency, as if subsection (a) of this section had not been enacted.

“Sec. 205

(a) For purposes of this section— the term ‘contribution deficiency’, when used with respect to a covered retirement system, means the excess of— the total amount which, but for section 204(a) of this Act, would have been deducted and withheld under a provision referred to in such section from the pay of covered employees participating in such retirement system for service to which such section applies, over the total amount which was deducted and withheld from the pay of covered employees for such service as provided in section 204(a) of this Act; and the term ‘appropriate agency head’ means— the Director of the Office of Personnel Management, with respect to the Civil Service Retirement and Disability System under subchapter III of chapter 83 of title 5, United States Code; the Secretary of State, with respect to the Foreign Service Retirement and Disability System under chapter 8 of the Foreign Service Retirement Act of 1980 ( 22 U.S.C. 404 et seq.) [ 22 U.S.C. 4041 et seq.]; the Director of Central Intelligence, with respect to the Central Intelligence Agency Retirement and Disability System under the Central Intelligence Agency Retirement Act of 1964 for Certain Employees ([former] 50 U.S.C. 403 note); and the officer designated by the President for that purpose in the case of any retirement system described in section 203(a)(2)(D) of this Act.

(“(b) At the end of each of fiscal years 1984, 1985, 1986, and 1987, the appropriate agency head— shall determine the amount of the contribution deficiency for such fiscal year in the case of each covered retirement system, including the interest that those contributions would have earned had they been credited to the fund established for the payment of benefits under such retirement system in the same manner and at the same time as deductions under the applicable provision of law referred to in section 204(a) of this Act; and shall notify the Secretary of the Treasury of the amount of the contribution deficiency in each such case.

(“(c) Before closing the accounts for each of fiscal years 1984, 1985, 1986, and 1987, the Secretary of the Treasury shall credit to the fund established for the payment of benefits under each covered retirement system, as a Government contribution, out of any money in the Treasury not otherwise appropriated, an amount equal to the amount determined under subsection (b) with respect to that covered retirement system for the fiscal year involved.

(“(d) Amounts credited to a fund under subsection (c) shall be accounted for separately than amounts credited to such fund under any other provision of law.

“Sec. 206

(a) For the purposes of this section, the term ‘interim covered service’ means covered service to which section 204(a) applies.

(“(b) Paragraphs (2) and (3) apply according to the provisions thereof only with respect to a covered employee who is employed by the Government on December 31, 1983 . Notwithstanding any other provision of law, the interim covered service of such covered employee shall be considered— in determining entitlement to and computing the amount of an annuity (other than a disability or survivor annuity) commencing under a covered retirement system during the period beginning January 1, 1984 , and ending on the earlier of the date a new Government retirement system takes effect or January 1, 1987 , by reason of the retirement of such covered employee during such period only if such covered employee makes a deposit to the credit of such covered retirement system for such covered service in an amount computed as provided in subsection (f); and in computing a disability or survivor annuity which commences under a covered retirement system during such period and is based in any part on such interim covered service. Notwithstanding any other provision of law, an annuity to which subparagraph (A)(ii) applies shall be reduced by the portion of the amount of any benefits which is payable under title II of the Social Security Act [ 42 U.S.C. 401 et seq.] and is attributable to the interim covered service considered in computing the amount of such annuity, as determined under subsection (g), unless, in the case of a survivor annuity, a covered employee has made a deposit with respect to such covered service for the purposes of subparagraph (A)(i) before the date on which payment of such annuity commences. Notwithstanding any other provision of law, if a new Government retirement system is not established or is inapplicable to such a covered employee who retires or dies subject to a covered retirement system after the date on which such new Government retirement system takes effect, the interim covered service of such covered employee shall be considered in determining entitlement to and computing the amount of an annuity under a covered retirement system based on the service of such covered employee only if such covered employee makes a deposit to the credit of such covered retirement system for such covered service in an amount computed as provided in subsection (f).

(“(c) Paragraphs (2) and (3) apply according to the provisions thereof only with respect to a covered employee who was not employed by the Government on December 31, 1983 . Notwithstanding any other provision of law, any annuity which commences under a covered retirement system during the period described in subsection (b)(2)(A)(i) and is based, in any part, on interim covered service shall be reduced by the portion of the amount of any benefits which is payable under title II of the Social Security Act [ 42 U.S.C. 401 et seq.] to the annuitant and is attributable to such service, as determined under subsection (g). Notwithstanding any other provision of law, if a new Government retirement system is not established, the interim covered service of such a covered employee who retires or dies after January 1, 1987 , shall be considered in determining entitlement to and computing the amount of an annuity under a covered retirement system based on the service of such covered employee only if such covered employee makes a deposit to the credit of such covered retirement system for such covered service in an amount computed as provided in subsection (f).

(“(d) If a covered employee with respect to whom subsection (b)(3) or (c)(3) applies dies without having made a deposit pursuant to such subsection, any individual who is entitled to an annuity under a covered retirement system based on the service of such covered employee or who would be entitled to such an annuity if such deposit had been made by the covered employee before death may make such deposit after the date of death of such covered employee. Service covered by a deposit made pursuant to the first sentence shall be considered in determining, in the case of each individual to whom the first sentence applies, the entitlement to and the amount of an annuity under a covered retirement system based on the service of such covered employee.

(“(e) A reduction in annuity under subsection (b)(2)(B) or (c)(2) shall commence on the first day of the first month after the date on which payment of benefits under title II of the Social Security Act [ 42 U.S.C. 401 et seq.] commence and shall be redetermined each time an increase in such benefits takes effect pursuant to section 215(i) of the Social Security Act [ 42 U.S.C. 415(i) ]. In the case of an annuity of a participant or former participant in a covered retirement system, of a surviving spouse or child of such participant or former participant, or of any other person designated by such participant or former participant to receive an annuity, under a covered retirement system (other than a former spouse) the reduction in annuity under subsection (b)(2)(B) or (c)(2) shall be calculated before any reduction in such annuity provided under such system for the purpose of paying an annuity under such system to any former spouse of such participant or former participant based on the service of such participant or former participant.

(“(f) For the purposes of subsection (b) or (c), the amount of a deposit to the credit of the applicable covered retirement system shall be equal to the excess of— the total amount which would have been deducted and withheld from the basic pay of the covered employee for the interim covered service under such covered retirement system but for the application of section 204(a), over the amount which was deducted and withheld from such basic pay for such interim covered service pursuant to section 204(a) and was not refunded to such covered employee.

(“(g) For the purpose of subsections (b)(2)(B) and (c)(2), the portion of the amount of the benefits which is payable under title II of the Social Security Act [ 42 U.S.C. 401 et seq.] to an individual and is attributable to interim covered service shall be determined by— computing the amount of such benefits including credit for such service; computing the amount of such benefits, if any, without including credit for such service; and subtracting the amount computed under clause (2) from the amount computed under clause (1).

(“(h) The Secretary of Health and Human Services shall furnish to the appropriate agency head (as defined in section 205(a)(2)) such information as such agency head considers necessary to carry out this section.

“Sec. 207

“Sec. 208

(a) Any individual performing service of a type referred to in clause (i), (ii), (iii), or (iv) of section 210(a)(5) of the Social Security Act [ 42 U.S.C. 410(a)(5)(i) –(iv)] beginning on or before December 31, 1983 , may— if such individual is then currently a participant in a covered retirement system, elect by written application submitted before January 1, 1984 — to terminate participation in such system, effective after December 31, 1983 ; or to remain under such system, as if the preceding sections of this Act [probably means this ‘title’] and the amendments made by this Act had not been enacted; or if such individual is then currently not a participant in a covered retirement system, elect by written application— to become a participant under such system (if such individual is otherwise eligible to participate in the system), subject to the preceding sections of this Act [probably means this ‘title’] and the amendments made by this Act; or to become a participant under such system (if such individual is otherwise eligible to participate in the system), as if the preceding sections of this Act and the amendments made by this Act had not been enacted.

(“(b) An application by an individual under subsection (a) shall be submitted to the official by whom such covered employee is paid.

(“(c) Any individual who elects to terminate participation in a covered retirement system under subsection (a)(1)(A) is entitled to have such individual’s contributions to the retirement system refunded, in accordance with applicable provisions of law, as if such individual had separated from service as of the effective date of the election.

(“(d) Any individual who is eligible to make an election under subparagraph (A) or (B) of subsection (a)(1), but who does not make an election under either such subparagraph, shall be subject to the preceding sections of this Act [probably means this ‘title’] and the amendments made by this Act.”

§ 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 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— employment as a substitute in the postal field service; service in the Pan American Sanitary Bureau; 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 ; service as a student-employee as defined by section 5351 of this title only if he later becomes subject to this subchapter; 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; employment under section 709 of title 32 or any prior corresponding provision of law; 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 or C of title I of the Domestic Volunteer Service Act of 1973 only if he later becomes subject to this subchapter; 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; 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; 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; 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; 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; 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; 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; 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 ; 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 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 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 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) Except as provided in paragraphs (2) and (4) of this subsection and subsection (d) of this section— 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 the service of an individual who first becomes an employee or Member on or after October 1, 1982 , shall include credit for— each period of military service performed before January 1, 1957 , and 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 . 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— based on a service-connected disability— incurred in combat with an enemy of the United States; or 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 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). Notwithstanding paragraph (2) of this subsection, for purposes of computing a survivor annuity for a survivor of an employee or Member— who was awarded retired pay based on any period of military service, and 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. 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— payable to a survivor (other than a child) under a retirement system for members of the uniformed services; if, or to the extent that, such benefits are based on such period of military service. The Office of Personnel Management shall prescribe regulations to carry out this paragraph, including regulations under which— a survivor may elect not to be covered by this paragraph; and this paragraph shall be carried out in any case which involves a former spouse. 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— 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 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 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— has at least 5 years’ Member service; and 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— 1/313 of a year for each day on which he performed service as a Commissioner before July 1, 1945 ; and 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) 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 section 402 of title 42 based on the individual’s wages and self-employment income. If the military service or service as a volunteer 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, 2 or C of title I of the Domestic Volunteer Service Act of 1973, or as a volunteer or volunteer leader under chapter 34 of title 22 is not excluded by the preceding sentence, but on becoming 62 years of age, the individual or spouse, former spouse 4 becomes entitled, or would on proper application be entitled, to the described benefits, the Office of Personnel Management shall redetermine the aggregate period of service on which the annuity is based, effective as of the first day of the month in which he or she becomes 62 years of age, so as to exclude that service. The Secretary of Health, Education, and Welfare, on request of the Office, shall inform the Office whether or not the individual, spouse, former spouse, or child is entitled at any named time to the described benefits. For the purpose of this subsection, 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 termination of that service by the President or by death or resignation, and the period of an individual’s service as a volunteer under part A of title VIII of the Economic Opportunity Act of 1964 or under part A, B, 2 or C of title I of the Domestic Volunteer Service Act of 1973 is the period between enrollment as a volunteer and termination of that service by the Director of the Office of Economic Opportunity or the Chief Executive Officer of the Corporation for National and Community Service, as appropriate, or by death or resignation. The provisions of paragraph (1) of this subsection relating to credit for military service shall not apply to— 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 the service of any employee or Member described in section 8332(c)(1)(B) of this title . 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) 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 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 . 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) Any employee or Member who— is of Japanese ancestry; and 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— Executive Order Numbered 9066, dated February 19, 1942 ; 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 ); Executive Order Numbered 9489, dated October 18, 1944 ; sections 4067 through 4070 of the Revised Statutes of the United States; or any other statute, rule, regulation, or order; or 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. For the purpose of this subsection, “World War II” means the period beginning on December 7, 1941 , and ending on December 31, 1946 .

(m) 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— such employee has at least 4 years and 6 months of service on such committees as of December 12, 1980 ; and 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. 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— such employee has at least 4 years and 6 months of service on such committees as of December 31, 1990 ; and 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. 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. 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— 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 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) 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. An offense described in this paragraph is any offense described in subparagraph (B) for which the following apply: 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. 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. The offense— is committed after the date of enactment of this subsection and— is described under subparagraph (B)(i), (iv), (xvi), (xix), (xxiii), (xxiv), or (xxvi); or 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 is committed after the date of enactment of the STOCK Act and— 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 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). An offense described in this subparagraph is only the following, and only to the extent that the offense is a felony: An offense under section 201 of title 18 (relating to bribery of public officials and witnesses). An offense under section 203 of title 18 (relating to compensation to Member of Congress, officers, and others in matters affecting the Government). 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). An offense under section 219 of title 18 (relating to officers and employees acting as agents of foreign principals). An offense under section 286 of title 18 (relating to conspiracy to defraud the Government with respect to claims). An offense under section 287 of title 18 (relating to false, fictitious or fraudulent claims). An offense under section 597 of title 18 (relating to expenditures to influence voting). An offense under section 599 of title 18 (relating to promise of appointment by candidate). An offense under section 602 of title 18 (relating to solicitation of political contributions). An offense under section 606 of title 18 (relating to intimidation to secure political contributions). An offense under section 607 of title 18 (relating to place of solicitation). An offense under section 641 of title 18 (relating to public money, property or records). An offense under section 666 of title 18 (relating to theft or bribery concerning programs receiving Federal funds). An offense under section 1001 of title 18 (relating to statements or entries generally). 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). 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). An offense under section 1503 of title 18 (relating to influencing or injuring officer or juror). An offense under section 1505 of title 18 (relating to obstruction of proceedings before departments, agencies, and committees). An offense under section 1512 of title 18 (relating to tampering with a witness, victim, or an informant). An offense under section 1951 of title 18 (relating to interference with commerce by threats of violence). An offense under section 1952 of title 18 (relating to interstate and foreign travel or transportation in aid of racketeering enterprises). An offense under section 1956 of title 18 (relating to laundering of monetary instruments). An offense under section 1957 of title 18 (relating to engaging in monetary transactions in property derived from specified unlawful activity). An offense under chapter 96 of title 18 (relating to racketeer influenced and corrupt organizations). An offense under section 7201 of the Internal Revenue Code of 1986 (relating to attempt to evade or defeat tax). An offense under section 104(a) of the Foreign Corrupt Practices Act of 1977 (relating to prohibited foreign trade practices by domestic concerns). An offense under section 10(b) of the Securities Exchange Act of 1934 (relating to fraud, manipulation, or insider trading of securities). 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). 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— 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 an offense under section 207 of title 18 (relating to restrictions on former officers, employees, and elected officials of the executive and legislative branches). Perjury committed under section 1621 of title 18 in falsely denying the commission of an act which constitutes— 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 an offense under clause (xxix), to the extent provided in such clause. 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). 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. Subject to subparagraph (B), an individual convicted of an offense described in paragraph (2) shall not be eligible to receive any payment of an annuity pursuant to the retirement system under this subchapter or chapter 84, except that this sentence applies only to such payments based on service rendered as a Member (irrespective of when rendered). If the conviction of an individual described in subparagraph (A) is overturned on appeal by a court of competent jurisdiction, the individual shall receive payments that the individual would have received but for the application of subparagraph (A). This paragraph applies only to a conviction that occurs after the date of enactment of the No Congressionally Obligated Recurring Revenue Used as Pensions To Incarcerated Officials Now Act. The Office of Personnel Management shall prescribe any regulations necessary to carry out this subsection. Such regulations shall include— 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 provisions under which the Office may provide for— 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 (6); and 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). Regulations to carry out clause (i) of paragraph (5)(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. For purposes of this subsection— 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; the term “Member” has the meaning given such term by section 2106, notwithstanding section 8331(2); and the term “child” has the meaning given such term by section 8341.

§ 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.

§ 8334 Deductions, contributions, and deposits

(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 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). 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. In the case of an employee of the United States Postal Service, no amount shall be contributed under this subparagraph. 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) 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. This paragraph applies with respect to any employee or Member who— 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 ; 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 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. 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). The Office of Personnel Management shall prescribe such regulations as may be necessary to carry out this paragraph.

(e) 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. 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 . 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— service before August 1, 1920 ; military service, except to the extent provided under section 8332(c) or section 8334(j) of this title ; service for the Panama Railroad Company before January 1, 1924 ; service performed before October 29, 1983 ,, 2 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 ; days of unused sick leave credited under section 8339(m) of this title ; or 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) 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. 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. 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. 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 . 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 . 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) 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). 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. Any deposit made under paragraph (1) of this subsection more than two years after the later of— October 1, 1983 ; or 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. 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. 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. 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). 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. 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. The Director of the Office of Personnel Management shall issue such regulations as are necessary to carry out this paragraph.

(k) 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 — 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 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. 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— the total deduction for those wages (or for that portion) exceeds; the OASDI contribution with respect to those wages (or that portion). 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. For purposes of this paragraph— the term “Federal wages” means basic pay for service as an employee or Member, as the case may be; 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; 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 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). 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. In administering paragraphs (1) through (3)— the term “an individual described in section 8402(b)(2) of this title ” shall be considered to include any individual— who is subject to this subchapter as a result of a provision of law described in section 8347( o ), and 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 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) 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 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). Any deposit made under paragraph (1) more than 2 years after the later of— October 1, 1993 ; or 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). 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. 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. 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. 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. 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. 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).

“Notwithstanding section 8334(a)(1) or (k)(1) of title 5, United States Code, during the period beginning on October 1, 2002 , through December 31, 2002 , each employing agency (other than the United States Postal Service or the Metropolitan Washington Airports Authority) shall contribute— 7.5 percent of the basic pay of an employee; 8 percent of the basic pay of a congressional employee, a law enforcement officer, a member of the Capitol Police, a firefighter, or a nuclear materials courier; and 8.5 percent of the basic pay of a Member of Congress, a Court of Federal Claims judge, a United States magistrate [now United States magistrate judge], a judge of the United States Court of Appeals for the Armed Forces, or a bankruptcy judge, in lieu of the agency contributions otherwise required under section 8334(a)(1) of such title 5.”

§ 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

(b) 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. 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 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.

§ 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) 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. An employee is entitled to an annuity if the employee— 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 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. In this paragraph— the term “affected individual” means an individual covered under this subchapter who— is performing service in a covered position; 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; 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 is appointed to a position in the civil service that— is not a covered position; and 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; 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. 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. 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. The service of an affected individual shall no longer be eligible for treatment under subparagraph (B) if such service occurs after the individual— is transferred to a supervisory or administrative position related to the activities of the former covered position of the individual; or 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. 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). 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— is separated from the service involuntarily, except by removal for cause on charges of misconduct or delinquency; or 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); is serving under an appointment that is not time limited; has not been duly notified that such employee is to be involuntarily separated for misconduct or unacceptable performance; is separated from the service voluntarily during a period in which, as determined by the office 1 of Personnel Management (upon request of the agency) under regulations prescribed by the Office— 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); a significant percentage of employees servicing 2 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 identified as being in positions which are becoming surplus or excess to the agency’s future ability to carry out its mission effectively; and 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— 1 or more organizational units; 1 or more occupational series or levels; 1 or more geographical locations; specific periods; skills, knowledge, or other factors related to a position; or 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) 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. 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. 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) 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— 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 voluntarily, after completing 23 years of service or after becoming 48 years of age and completing 18 years of service. 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— 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 the separation is the result of the implementation of any provision of the Panama Canal Treaty of 1977 and related agreements. 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— 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 voluntarily, after completing 23 years of service or after becoming 48 years of age and completing 18 years of service. For the purpose of this subsection— “Panama Canal service” means— service as an employee of the Canal Zone Government, the Panama Canal Company, or the Panama Canal Commission; or 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 “Executive agency” includes the United States District Court for the District of the Canal Zone and the Smithsonian Institution.

(j) Except as provided in paragraph (3), an employee is entitled to an annuity if he— 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 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), 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 is not entitled to preference under the Indian preference laws. Employment in a tribal organization may be considered for purposes of paragraph (1)(B) of this subsection only if— 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 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 88 Stat. 2209 ). 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— the date the employee first meets the years of service and age requirements of paragraph (1)(A)(i), or the date of the enactment of this paragraph, if the employee met those requirements before that date. 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— such employee consents to such postponement, and 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. For the purpose of this subsection— “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. “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) 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— has— completed 25 years of service; or become 50 years of age and completed 20 years of service; and is eligible for the annuity under paragraph (2) or (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— is separated from the service involuntarily other than for cause; and 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. 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. 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: 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. 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). The employee is serving under an appointment that is not limited by time. The employee is not in receipt of a decision notice of involuntary separation for misconduct or unacceptable performance. 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: One or more organizational units. One or more occupational groups, series, or levels. One or more geographical locations. Any other similar objective and nonpersonal criteria that the Office of Personnel Management determines appropriate. Under regulations prescribed by the Office of Personnel Management, the determinations of whether an employee meets— the requirements of subparagraph (A) of paragraph (3) shall be made by the Office, upon the request of the Secretary of Defense; and the requirements of subparagraph (E) of such paragraph shall be made by the Secretary of Defense. 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. In this subsection, the term “major organizational adjustment” means any of the following: A major reorganization. A major reduction in force. A major transfer of function. A workforce restructuring— to meet mission needs; to achieve one or more reductions in strength; to correct skill imbalances; or to reduce the number of high-grade, managerial, supervisory, or similar positions.

§ 8336a Phased retirement

(a) For the purposes of this section— the term “composite retirement annuity” means the annuity computed when a phased retiree attains full retirement status; the term “full retirement status” means that a phased retiree has ceased employment and is entitled, upon application, to a composite retirement annuity; the term “phased employment” means the less-than-full-time employment of a phased retiree; the term “phased retiree” means a retirement-eligible employee who— makes an election under subsection (b); and has not entered full retirement status; the term “phased retirement annuity” means the annuity payable under this section before full retirement; 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; 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; the term “phased retirement status” means that a phased retiree is concurrently employed in phased employment and eligible to receive a phased retirement annuity; the term “retirement-eligible employee”— 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 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 the term “working percentage” means the percentage of full-time employment equal to the quotient obtained by dividing— the number of hours per pay period to be worked by a phased retiree, as scheduled in accordance with subsection (b)(2); by the number of hours per pay period to be worked by an employee serving in a comparable position on a full-time basis.

(b) 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. 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. 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. The working percentage for a phased retiree may not be changed during the phased retiree’s phased retirement period. Not less than 20 percent of the hours to be worked by a phased retiree shall consist of mentoring. The Director may, by regulation, provide for exceptions to the requirement under clause (i). 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. A phased retiree— may not be employed in more than one position at any time; and 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. A retirement-eligible employee may make not more than one election under this subsection during the retirement-eligible employee’s lifetime. A retirement-eligible employee who makes an election under this subsection may not make an election under section 8343a.

(c) Except as otherwise provided under this subsection, the phased retirement annuity for a phased retiree is the product obtained by multiplying— 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 the phased retirement percentage for the phased retiree. 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. A phased retirement annuity shall be adjusted in accordance with section 8340. 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. 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. 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). 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. 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. 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. A phased retirement annuity shall commence on the date on which a phased retiree enters phased employment. 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) 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— 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 the product obtained by multiplying— 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 the working percentage. 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). A composite retirement annuity shall be adjusted in accordance with section 8340, except that subsection (c)(1) of that section shall not apply. 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) 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. Upon entering a full-time work schedule based upon an election under paragraph (1), the phased retirement annuity of a phased retiree shall terminate. 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— the death of a phased retiree shall be deemed to be the death in service of an employee; and 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.

§ 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— at the end of 1 year from the date of the disability retirement; and 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— is not reemployed in a position in which he is subject to this subchapter; and 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) An individual is not entitled to receive— an annuity under this subchapter, and 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. 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. 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— refund to the Department of Labor the amount representing the commuted compensation payments for the extended period; or 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) 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. Except as provided in subparagraph (B) of this paragraph, an individual shall be retired under this section if the individual— 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; is not considered to be disabled under the second sentence of subsection (a) of this section; is not appointed to a position in the Government (whether under paragraph (3) of this subsection or otherwise); and has not declined an offer of an appointment to a position in the Government under paragraph (3) of this subsection. Payment of any annuity for an individual pursuant to this subsection terminates— on the date the individual is appointed to a position in the Government (whether pursuant to paragraph (3) of this subsection or otherwise); on the date the individual declines an offer of appointment to a position in the Government under paragraph (3); or as provided under subsection (d). 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— the position is located within the commuting area of the individual’s former position; the individual is qualified to serve in such position, as determined by the head of the agency; and 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 .

§ 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 .

§ 8339 Computation of annuity

(a) Except as otherwise provided by this section, the annuity of an employee retiring under this subchapter is— 1½ percent of his average pay multiplied by so much of his total service as does not exceed 5 years; plus 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 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.

(b) 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— at least 5 years’ service as a Congressional employee or Member or any combination thereof; and 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— his service as a Member and so much of his military service as is creditable for the purpose of this paragraph; and his Congressional employee service; by multiplying 2½ percent of his average pay by the years of that service.

(d) The annuity of an employee retiring under section 8335(b) or 8336(c) of this title is— 2½ percent of his average pay multiplied by so much of his total service as does not exceed 20 years; plus 2 percent of his average pay multiplied by so much of his total service as exceeds 20 years. 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— 2½ percent of the employee’s average pay multiplied by so much of that service as does not exceed 20 years; plus 2 percent of the employee’s average pay multiplied by so much of that service as exceeds 20 years. 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— 2½ percent of the employee’s average pay multiplied by so much of that service as does not exceed 20 years; plus 2 percent of the employee’s average pay multiplied by so much of that service as exceeds 20 years. 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 $8foreachfullmonthofthatservicewhichisperformedintheRepublicofPanama.Inthecaseofanemployeeretiringunderthissubchapterwho—wasemployedasalawenforcementofficerorfirefighterbythePanamaCanalCompanyorCanalZoneGovernmentatanytimeduringtheperiodbeginningMarch31,1979,andendingSeptember30,1979;anddoesnotmeettheageandservicerequirementsofsection8336(c)ofthistitle;theannuityofthatemployeeisincreasedby$12 for each full month of that service which occurred before October 1, 1979 . 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. For the purpose of this subsection— “Panama Canal service” means— service as an employee of the Panama Canal Commission; or 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 “Executive agency” includes the Smithsonian Institution. 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— 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 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. 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— the average pay of the employee; or the greatest of— the final basic pay of the Member; the average pay of the Member; or 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— 40 percent of his average pay; or 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), (b), (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), (b), (c), (n), (q), (r), or (s), as appropriate.

(h) The annuity computed under subsections (a), (b), (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(b) 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— the employee or Member makes a deposit for such period as provided in section 8334(c) or (d)(1) of this title; or no deposit is required for such service, as provided under section 8334(g) of this title or under any statute.

(j) 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(b) 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— that the spouse’s whereabouts cannot be determined, or that, due to exceptional circumstances, requiring the employee or Member to seek the spouse’s consent would otherwise be inappropriate. 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. 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— shall not be effective to the extent that it— conflicts with— 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 any agreement referred to in such subsection which was entered into before such date; or would cause the total of survivor annuities payable under subsections (b), (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 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. In order to provide a survivor annuity or combination of survivor annuities under subsections (b), (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 $3,600thereofplus10percentofsomuchthereofasexceeds$3,600. 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— after the death of the spouse, or 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 . 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. 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. 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. 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). 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. An election to provide a survivor annuity to a person under this subparagraph— shall prospectively void any election made by the employee or Member under subsection (k)(1) of this section with respect to such person; or 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. The deposit provisions of clauses (ii) and (iii) of this subparagraph shall not apply if— the employee or Member makes an election under this subparagraph after having made an election under subsection (k)(1) of this section; and the election under such subsection (k)(1) becomes void under clause (v) of this subparagraph.

(k) 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. 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. 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— shall prospectively void any election made by the employee or Member under paragraph (1) of this subsection with respect to such person; or 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. 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. 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). Subparagraphs (B)(ii) and (C) of this paragraph shall not apply if— the employee or Member makes an election under this paragraph after having made an election under paragraph (1) of this subsection; and 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— the Alaska Engineering Commission, or The Alaska Railroad, in Alaska between March 12, 1914 , and July 1, 1923 ; or 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) An employee or Member— who, at the time of retirement, is married, and who notifies the Office at such time (in accordance with subsection (j)) that a survivor annuity under section 8341(b) 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. An employee or Member— who, at the time of retirement, is married, and 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(b) 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. 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). The amount to be deposited with respect to an election under this subsection is an amount equal to the sum of— the additional cost to the System which is associated with providing a survivor annuity under subsection (b)(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 interest on the additional cost determined under clause (i) of this subparagraph computed using the interest rate specified or determined under section 8334(e) of this title for the calendar year in which the amount to be deposited is determined. 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). 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. 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. 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) In computing an annuity under this subchapter for an employee whose service includes service that was performed on a part-time basis— 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 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. 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. In the administration of paragraph (1)— subparagraph (A) of such paragraph shall apply with respect to service performed before, on, or after April 7, 1986 ; and subparagraph (B) of such paragraph— shall apply with respect to that portion of any annuity which is attributable to service performed on or after April 7, 1986 ; and 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 (b), except that, in the case of a member who retires under section 8335(c) or 8336(m), and who meets the requirements of subsection (b)(2), the annuity of such member is— 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 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 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 For purposes of this subsection, the term “physicians comparability allowance” refers to an amount described in section 8331(3)(H). 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). 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. 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— an annuity under subsection (g); and a survivor annuity under section 8341, if based on the service of an individual who dies before separating from service.

(u) 2 The annuity of an employee retiring under this subchapter with service credited under section 8332(b)(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— on the basis of service that does not include service credited under section 8332(b)(17); and 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.

“Sec. 2

The unmarried widow or widower of an employee— who had completed at least ten years of service creditable for civil service retirement purposes. who (A) died February 29, 1948 , or (B), if retired under the Alaska Railroad Retirement Act of June 29, 1936 , as amended, or under sections 91 to 107, inclusive, of title 2 of the Canal Zone Code, approved June 19, 1934 , as amended, died before April 1, 1948 ; and who was at the time of his death (A) subject to an Act under which annuities granted before February 20, 1948 , were or are now payable from the civil service retirement and disability fund or (B) retired under such an Act, shall be entitled to receive an annuity. In order to qualify for such annuity, the widow or widower shall have been married to the employee for at least five years immediately prior to his death and must be not entitled to any other annuity from the civil service retirement and disability fund based on the service of such employee. Such annuity shall be equal to one-half of the annuity which the employee was receiving on the date of his death if retired, or would have been receiving if he had been retired for disability on the date of his death, but shall not exceed $750 per annum and shall not be increased by the provisions of this or any other prior law. Any annuity granted under this section shall cease upon the death or remarriage of the widow or widower.

“Sec. 3

(a) An increase in annuity provided by subsection (a), or clause (1) of subsection (b), of the first section of this Act shall take effect on August 1, 1958 . An increase in annuity provided by clause (2) of such subsection (b) shall take effect on the commencing date of the survivor annuity.

(“(b) An annuity provided by section 2 of this Act shall commence on August 1, 1958 , or on the first day of the month in which application for such annuity is received in the Civil Service Commission, whichever occurs later.

(“(c) The monthly installment of each annuity increased or provided by this Act shall be fixed at the nearest dollar.

“Sec. 4

Notwithstanding any other provision of law, the annuities and increases in annuities provided by the preceding sections of this Act shall be paid from the civil service retirement and disability fund.

“Sec. 5

(a) The amendments made by section 401 of the Civil Service Retirement Act Amendments of 1956 ( 70 Stat. 743–760 ; 5 U.S.C. 2251–226 7) [amending provisions covered by this subchapter] may apply at the option of any employee who, prior to July 31, 1956 , was separated from the service under the automatic separation provisions of the Civil Service Retirement Act [this subchapter] but whose separation would not have taken effect until after July 30, 1965 , if he had been permitted to remain in the service until the expiration of any accumulated or current accrued annual leave to his credit at the time of his separation from the service. Such option shall be exercised by a writing received in the Civil Service Commission before January 1, 1959 .

(“(b) No increase in annuity provided by this Act or any prior provision of law shall apply in the case of any retired employee who exercises the option permitted by subsection (a) of this section.”

§ 8340 Cost-of-living adjustment of annuities

(a) For the purpose of this section— the term “base quarter”, as used with respect to a year, means the calendar quarter ending on September 30, of such year; and 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: 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 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— 1 ⁄ 12 of the applicable percent change computed under subsection (b) of this section, multiplied by the number of months (not to exceed 12 months, counting any portion of a month as a month)— for which the annuity was payable from the Fund before the effective date of the increase, or 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. 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. 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— an employee or Member before October 11, 1962 ; or a retired employee or Member whose retirement was based on a separation from service before October 11, 1962 ; is increased by 10 percent.

(g) An annuity shall not be increased by reason of any adjustment under this section to an amount which exceeds the greater of— the maximum pay payable for GS–15 30 days before the effective date of the adjustment under this section; or 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— 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 ending on the effective date of the adjustment under this section. 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.

§ 8341 Survivor annuities

(a) For the purpose of this section— “widow” means the surviving wife of an employee or Member who— was married to him for at least 9 months immediately before his death; or is the mother of issue by that marriage; “widower” means the surviving husband of an employee or Member who— was married to her for at least 9 months immediately before her death; or is the father of issue by that marriage; “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 “child” means— 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; such unmarried dependent child regardless of age who is incapable of self-support because of mental or physical disability incurred before age 18; or 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) 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. If an annuitant— who retired before April 1, 1948 ; or 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. 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— dies; or except as provided in subsection (k), remarries before becoming 55 years of age. 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— 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 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— 40 percent of his average pay; or 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— the amount which would otherwise be payable to such widow or widower under this subsection, and 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— dies; or except as provided in subsection (k), remarries before becoming 55 years of age.

(e) 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. 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— 60 percent of the average pay of the employee or Member divided by the number of children; $900;or$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— 75 percent of the average pay of the employee or Member divided by the number of children; $1,080;or$3,240 divided by the number of children; subject to section 8340 of this title . 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— becomes 18 years of age unless he is then a student as described or incapable of self-support; becomes capable of self-support after becoming 18 years of age unless he is then such a student; becomes 22 years of age if he is then such a student and capable of self-support; ceases to be such a student after becoming 18 years of age unless he is then incapable of self-support; or 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. 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— any lump sum paid is returned to the Fund; and 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— 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 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— the annuity which would otherwise be payable to such surviving spouse under this subsection, and 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— 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 any lump sum paid on termination of the annuity is returned to the Fund.

(h) 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. The annuity payable to a former spouse under this subsection may not exceed the difference between— the amount applicable in the case of such former spouse, as determined under subparagraph (B) of this paragraph, and 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. 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— 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; 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 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. 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— shall not commence before— the day after the employee, Member, or annuitant dies, or 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 shall terminate— 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 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. 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— if such modification is made after the retirement or death of the employee or Member concerned, and to the extent that such modification involves an annuity under this subsection. 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. Any payment under this subsection to a person bars recovery by any other person. 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— the death of the employee or Member was accidental; or 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 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. 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.

“The foregoing provisions of this Act [amending this section and enacting provisions set out as notes under this section] shall take effect on— the first day of the month following the date of the enactment of this Act [ July 10, 1978 ], or October 1, 1978 , whichever date is later.”

“The provisions of subsection (b)(1), (d)(3), and (g) of section 8341 of title 5 , United States Code, also shall apply in the case of any widow or widower— of an employee who died, retired, or was otherwise finally separated before July 18, 1966 ; who shall have remarried on or after such date; and who, immediately before such remarriage, was receiving annuity from the Civil Service Retirement and Disability Fund; except that no annuity shall be paid by reason of this section for any period prior to the enactment of this section. No annuity shall be terminated solely by reason of the enactment of this section. Notwithstanding the prohibition contained in the first sentence of this section on the payment of annuity for any period prior to the enactment of this section, in any case in which the Civil Service Commission determines that— the remarriage of any widow or widower described in such sentence was entered into by the widow or widower in good faith and in reliance on erroneous information provided by Government authority prior to that remarriage that the then existing survivor annuity of the widow or widower would not be terminated because of the remarriage; and such annuity was terminated by law because of that remarriage; then payment of annuity may be made by reason of this section in such case, beginning as of the effective date of the termination because of the remarriage.”

§ 8342 Lump-sum benefits; designation of beneficiary; order of precedence

(a) Subject to subsection (j) of this section, an employee or Member who— is separated from the service for at least thirty-one consecutive days; or 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; files an application with the Office of Personnel Management for payment of the lump-sum credit; 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 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— 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 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— 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 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.

(d) If an employee or Member dies— without a survivor; or 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— is separated from the service before July 12, 1960 ; and 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) 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. 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— 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 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). 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. 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. 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.

§ 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— 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 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 $100inthevoluntarycontributionaccount,theadditionalannuityconsistsof$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 .

§ 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— an alternative which provides for— payment of the lump-sum credit to the employee or Member; and payment of an annuity to the employee or Member for life; and in the case of an employee or Member who is married at the time of retirement, an alternative which provides for— payment of the lump-sum credit to the employee or Member; and 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— 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 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.

§ 8344 Annuities and pay on reemployment

(a) If an annuitant receiving annuity from the Fund, except— a disability annuitant whose annuity is terminated because of his recovery or restoration of earning capacity; 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; an annuitant whose annuity is terminated under subsection (c) of this section; or 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— 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 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— 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— the day Member annuity commences; or the day after the date of separation from the appointive position; whichever is later; if the retired Member becomes employed after December 31, 1958 , in an appointive position on an intermittent-service basis— his annuity continues during the employment and is not increased as a result of service performed during that employment; retirement deductions may not be withheld from his pay; 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 the amounts so deducted shall be deposited in the Treasury of the United States to the credit of the Fund; 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 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) 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. 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) The Director of the Office of Personnel Management may, at the request of the head of an Executive agency— 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 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. 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) 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. 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) 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. Authority under this subsection may be exercised— with respect to an employee of an agency in the legislative branch, by the head of such agency; with respect to an employee of the House of Representatives, by the Committee on House Oversight of the House of Representatives; and with respect to an employee of the Senate, by the Committee on Rules and Administration of the Senate. 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. 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) For purposes of this subsection— the term “head of an agency” means— the head of an Executive agency, other than the Department of Defense or the Government Accountability Office; the head of the United States Postal Service; the Director of the Administrative Office of the United States Courts, with respect to employees of the judicial branch; and any employing authority described under subsection (k)(2), other than the Government Accountability Office; and the term “limited time appointee” means an annuitant appointed under a temporary appointment limited to 1 year or less. 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— fulfill functions critical to the mission of the agency, or any component of that agency; 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 ( 12 U.S.C. 5211 et seq.); assist in the development, management, or oversight of agency procurement actions; assist the Inspector General for that agency in the performance of the mission of that Inspector General; promote appropriate training or mentoring programs of employees; assist in the recruitment or retention of employees; or respond to an emergency involving a direct threat to life of property or other unusual circumstances. The head of an agency may not waive the application of subsection (a) or (b) with respect to an annuitant— for more than 520 hours of service performed by that annuitant during the period ending 6 months following the individual’s annuity commencing date; for more than 1040 hours of service performed by that annuitant during any 12-month period; or for more than a total of 3120 hours of service performed by that annuitant. 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. 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— a report with an explanation that justifies the need for the waivers in excess of that percentage; and not later than 180 days after submitting the report under clause (i), a succession plan. The Director of the Office of Personnel Management may promulgate regulations providing for the administration of this subsection. Any regulations promulgated under subparagraph (A) may— provide standards for the maintenance and form of necessary records of employment under this subsection; 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); 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); 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 encourage the training and mentoring of employees by any limited time appointee employed under this subsection. 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. 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). 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) For the purpose of subsections (i) through ( l ), “Executive agency” shall not include the Government Accountability Office. 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.

§ 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) Except as otherwise provided— an annuity of an employee or Member commences on the first day of the month after— separation from the service; or pay ceases and the service and age requirements for title to annuity are met; and 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. The annuity of— an employee involuntarily separated from service, except by removal for cause on charges of misconduct or delinquency; and 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) 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. 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— section 8345a or 8466a; section 208 or 1632 of the Social Security Act ( 42 U.S.C. 408 , 1383a); or 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) 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. 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) 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— 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 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. 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. For the purpose of this subsection— 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; 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 the term “child” means an individual under 18 years of age.

(k) 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. 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. 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. 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. 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.

§ 8345a Embezzlement or conversion of payments

(a) Embezzling and Conversion Generally.— 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. If the Office determines that a representative payee has embezzled or converted payments as described in paragraph (1), the Office shall promptly— revoke the certification for payment of benefits to the representative payee; and certify payment— to another representative payee; or 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.

§ 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.

§ 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) 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. 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— the Secretary of Defense or the Secretary’s designee shall provide information on retired or retainer pay provided under title 10; the Secretary of Veterans Affairs shall provide information on pensions or compensation provided under title 38; the Commissioner of Social Security or the Secretary’s 1 designee shall provide information contained in the records of the Social Security Administration; and 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) 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— determine entitlement to benefits under this subchapter based on the service of employees of the Central Intelligence Agency; maintain records relating to the service of such employees; compute benefits under this subchapter based on the service of such employees; collect deposits to the Fund made by such employees, their spouses, and their former spouses; authorize and direct disbursements from the Fund to the extent based on service of such employees; and 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. 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. 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. 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. 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. 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. 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) Under regulations prescribed by the Office of Personnel Management, an employee who— has not previously made an election under this subsection or had an opportunity to make an election under this paragraph; and 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. 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— has not previously made an election under this subsection or had an opportunity to make an election under this paragraph; is a participant in a retirement system established for employees described in section 2105(c); moves, without a break in service of more than 1 year, to a position that is not described in section 2105(c); and 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.

§ 8348 Civil Service Retirement and Disability Fund

(a) There is a Civil Service Retirement and Disability Fund. The Fund— is appropriated for the payment of— 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 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; 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 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— new or liberalized benefits payable from the Fund, including annuity increases other than under section 8340 of this title ; extension of the coverage of this subchapter to new groups of employees; or 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) In this subsection, the term “Postal surplus or supplemental liability” means the estimated difference, as determined by the Office, between— 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 the sum of— 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; 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 any other appropriate amount, as determined by the Office in accordance with generally accepted actuarial practices and principles. 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 . 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 . 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. 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. 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. 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) 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. 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) 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. 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. 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. 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— the net amount of interest that would have been earned by the Fund during such debt issuance suspension period if— 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 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 the net amount of interest actually earned by the Fund during such debt issuance suspension period. For purposes of this subsection and subsections (k) and ( l ) of this section— the term “public debt limit” means the limitation imposed by section 3101(b) of title 31 ; and 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) 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. 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) 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. 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.

§ 8349 Offset relating to certain benefits under the Social Security Act

(a) 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. A reduction under this subsection commences beginning with the first month for which the individual both— is entitled to an annuity under this subchapter; and is entitled, or would on proper application be entitled, to old-age insurance benefits under title II of the Social Security Act. Subject to clause (ii) and subparagraphs (B) and (C), the amount of a reduction under this subsection shall be equal to the difference between— the old-age insurance benefit which would be payable to the individual for the month referred to in paragraph (2); and 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). 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. A reduction under this subsection— may not exceed an amount equal to the product of— 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 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 may not cause the annuity payment for an individual to be reduced below zero. 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 . 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— based on service of such individual; and without regard to section 8345(j), if otherwise applicable. 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) Notwithstanding any other provision of this subchapter— a disability annuity to which an individual described in section 8402(b)(2) is entitled under this subchapter, and 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). 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. 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). 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. 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)— 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— who is subject to this subchapter as a result of any provision of law described in section 8347( o ), and 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 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 .

§ 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) 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. The Director shall conduct a training session under the training program at least once every 3 months. Once each year, each retirement counselor of an agency shall successfully complete a training session conducted under the training program.

§ 8351 Participation in the Thrift Savings Plan

(a) An employee or Member may elect to contribute to the Thrift Savings Fund established by section 8437 of this title . An election may be made under paragraph (1) as provided under section 8432(b) for individuals who are subject to chapter 84 of this title.

(b) 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. 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). 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. 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. No contributions may be made by an employing agency for the benefit of an employee or Member under section 8432(c) of this title . Section 8433(b) 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. 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. 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. 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. 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. 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. For the purpose of this section, the term “nonforfeitable account balance” has the same meaning as under section 8401(32). In applying section 8432b 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— 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 8432b(b)(2)(B) to employee contributions under section 8432(a) shall be considered a reference to employee contributions under this subchapter and section 8440e; the contribution rate under section 8432b(b)(2)(A) shall be the maximum percentage allowable under subsection (b)(2) of this section; and subsections (c) and (d) of section 8432b shall be disregarded. 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) 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. Only those employees of the Central Intelligence Agency participating in the pilot project required by section 402(b) of the Intelligence Authorization Act for Fiscal Year 2003 ( Public Law 107–306 ; 50 U.S.C. 403–4 note) 1 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. 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.