CHAPTER 84 —FEDERAL EMPLOYEES' RETIREMENT SYSTEM
SUBCHAPTER I—GENERAL PROVISIONS
SUBCHAPTER II—BASIC ANNUITY
SUBCHAPTER III—THRIFT SAVINGS PLAN
SUBCHAPTER IV—SURVIVOR ANNUITIES
SUBCHAPTER V—DISABILITY BENEFITS
SUBCHAPTER VI—GENERAL AND ADMINISTRATIVE PROVISIONS
SUBCHAPTER VII—FEDERAL RETIREMENT THRIFT INVESTMENT MANAGEMENT SYSTEM
Editorial Notes
Amendments
2020—
2012—
2009—
2001—
2000—
1999—
1998—
1996—
1994—
1992—
1991—
1990—
1988—
1986—
Statutory Notes and Related Subsidiaries
Change of Name
Words "magistrate judges" substituted for "magistrates" in item 8440b pursuant to section 321 of
SUBCHAPTER I—GENERAL PROVISIONS
§8401. Definitions
For the purpose of this chapter—
(1) the term "account" means an account established and maintained under
(2) the term "annuitant" means a former employee or Member who, on the basis of that individual's service, meets all requirements for title to an annuity under subchapter II or V of this chapter and files claim therefor;
(3) the term "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 service or, in the case of an annuity under this chapter based on service of less than 3 years, over the total service, with each rate weighted by the period it was in effect;
(4) the term "basic pay" has the meaning given such term by section 8331(3);
(5) the term "Board" means the Federal Retirement Thrift Investment Board established by
(6) the term "Civil Service Retirement and Disability Fund" or "Fund" means the Civil Service Retirement and Disability Fund under section 8348;
(7) 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;
(8) the term "Director" means the Director of the Office of Personnel Management;
(9) the term "dynamic assumptions" means economic assumptions that are used in determining actuarial costs and liabilities of a retirement system and in anticipating the effects of long-term future—
(A) investment yields;
(B) increases in rates of basic pay; and
(C) rates of price inflation;
(10) the term "earnings", when used with respect to the Thrift Savings Fund, means the amount of the gain realized or yield received from the investment of sums in such Fund;
(11) the term "employee" means—
(A) an individual referred to in subparagraph (A), (E), (F), (H), (I), (J), or (K) of
(B) a Congressional employee as defined in
(C) an employee described in section 2105(c) who has made an election under section 8461(n)(1) to remain covered under this chapter;
whose civilian service after December 31, 1983, is employment for the purposes of title II of the Social Security Act and
(i) any individual referred to in—
(I) clause (i), (vi), or (ix) of paragraph (1) of section 8331;
(II) clause (ii) of such paragraph; or
(III) the undesignated material after the last clause of such paragraph;
(ii) any individual excluded under
(iii) a member of the Foreign Service described in section 103(6) of the Foreign Service Act of 1980; or
(iv) an employee who has made an election under section 8461(n)(2) to remain covered by a retirement system established for employees described in section 2105(c);
(12) the term "former spouse" means a former spouse of an individual—
(A) if such individual performed at least 18 months of civilian service creditable under section 8411 as an employee or Member; and
(B) if the former spouse was married to such individual for at least 9 months;
(13) the term "Executive Director" means the Executive Director appointed under section 8474(a);
(14) the term "firefighter" means—
(A) an employee, the duties of whose position—
(i) are primarily to perform work directly connected with the control and extinguishment of fires; and
(ii) are sufficiently rigorous that employment opportunities should be limited to young and physically vigorous individuals, as determined by the Director considering the recommendations of the employing agency; and
(B) an employee who is transferred directly to a supervisory or administrative position after performing duties described in subparagraph (A) for at least 3 years;
(15) the term "Government" means the Federal Government, Gallaudet College, and, in the case of an employee described in paragraph (11)(C), a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard described in section 2105(c);
(16) the term "Indian court" has the meaning given such term by section 8331(24);
(17) the term "law enforcement officer" means—
(A) an employee, the duties of whose position—
(i) are primarily—
(I) the investigation, apprehension, or detention of individuals suspected or convicted of offenses against the criminal laws of the United States, or
(II) the protection of officials of the United States against threats to personal safety; and
(ii) are sufficiently rigorous that employment opportunities should be limited to young and physically vigorous individuals, as determined by the Director considering the recommendations of the employing agency;
(B) an employee of the Department of the Interior or the Department of the Treasury (excluding any employee under subparagraph (A)) who occupies a position that, but for the enactment of the Federal Employees' Retirement System Act of 1986, would be subject to the District of Columbia Police and Firefighters' Retirement System, as determined by the Secretary of the Interior or the Secretary of the Treasury, as appropriate;
(C) an employee who is transferred directly to a supervisory or administrative position after performing duties described in subparagraph (A) and (B) for at least 3 years; and
(D) an employee—
(i) of the Bureau of Prisons or Federal Prison Industries, Incorporated;
(ii) of the Public Health Service assigned to the field service of the Bureau of Prisons or of the Federal Prison Industries, Incorporated; or
(iii) in the field service at Army or Navy disciplinary barracks or at any other confinement and rehabilitation facility operated by any of the armed forces;
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 Uniform Code of Military Justice (
(18) the term "loss", as used with respect to the Thrift Savings Fund, includes the amount of any loss resulting from the investment of sums in such Fund, or from the breach of any responsibility, duty, or obligation under section 8477.1
(19) the term "lump-sum credit" means the unrefunded amount consisting of—
(A) retirement deductions made from the basic pay of an employee or Member under
(B) amounts deposited by an employee or Member under section 8422(e);
(C) amounts deposited by an employee, Member, or survivor under section 8411(f) or 8422(i); and
(D) interest on the deductions and deposits which, 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), as determined by the Secretary (compounded annually);
but does not include interest—
(i) if the service covered thereby aggregates 1 year or less; or
(ii) for a fractional part of a month in the total service;
(20) the term "Member" has the same meaning as provided in section 2106, except that such term does not include an individual who irrevocably elects, by written notice to the official by whom such individual is paid, not to participate in the Federal Employees' Retirement System, and who (in the case of an individual who is a Member of the House of Representatives, including a Delegate or Resident Commissioner to the Congress) serves as a Member prior to the date of the enactment of the Legislative Branch Appropriations Act, 2004;
(21) the term "net earnings" means the excess of earnings over losses;
(22) the term "net losses" means the excess of losses over earnings;
(23) the term "normal-cost percentage" means the entry-age normal cost of the provisions of the System which relate to the Fund, computed by the Office in accordance with generally accepted actuarial practice and standards (using dynamic assumptions) and expressed as a level percentage of aggregate basic pay;
(24) the term "Office" means the Office of Personnel Management;
(25) the term "price index" has the same meaning as provided in section 8331(15);
(26) the term "service" means service which is creditable under section 8411;
(27) the term "supplemental liability" means the estimated excess of—
(A) the actuarial present value of all future benefits payable from the Fund under this chapter based on the service of current or former employees or Members, over
(B) the sum of—
(i) the actuarial present value of deductions to be withheld from the future basic pay of employees and Members currently subject to this chapter pursuant to section 8422;
(ii) the actuarial present value of the future contributions to be made pursuant to section 8423(a) with respect to employees and Members currently subject to this chapter;
(iii) the Fund balance as of the date the supplemental liability is determined, to the extent that such balance is attributable—
(I) to the System, or
(II) to contributions made under the Federal Employees' Retirement Contribution Temporary Adjustment Act of 1983 by or on behalf of an individual who became subject to the System; and
(iv) any other appropriate amount, as determined by the Office in accordance with generally accepted actuarial practices and principles;
(28) the term "survivor" means an individual entitled to an annuity under subchapter IV of this chapter;
(29) the term "System" means the Federal Employees' Retirement System described in section 8402(a);
(30) the term "military technician (dual status)" means an employee described in
(31) the term "military service" means honorable active service—
(A) in the armed forces;
(B) in the commissioned corps of the Public Health Service after June 30, 1960; or
(C) in the commissioned corps of the National Oceanic and Atmospheric Administration, or a predecessor entity in function, 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
(32) the term "nonforfeitable account balance" means any amounts in an account, established and maintained under subchapter III, which are nonforfeitable (as determined under section 8432(g));
(33) "Nuclear materials courier" has the meaning given that term in section 8331(27);
(34) the term "Government physician" has the meaning given such term under section 5948;
(35) the term "air traffic controller" or "controller" means—
(A) a controller within the meaning of section 2109(1); and
(B) a civilian employee of the Department of Transportation or the Department of Defense who is the immediate supervisor of a person described in section 2109(1)(B);
(36) the term "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;
(37) the term "revised annuity employee" means any individual who—
(A) on December 31, 2012—
(i) is not an employee or Member covered under this chapter;
(ii) is not performing civilian service which is creditable service under section 8411; and
(iii) has less than 5 years of creditable civilian service under section 8411; and
(B) after December 31, 2012, and before January 1, 2014, becomes employed as an employee or becomes a Member covered under this chapter performing service which is creditable service under section 8411;
(38) the term "further revised annuity employee" means any individual who—
(A) on December 31, 2013—
(i) is not an employee or Member covered under this chapter;
(ii) is not performing civilian service which is creditable service under section 8411; and
(iii) has less than 5 years of creditable civilian service under section 8411; and
(B) after December 31, 2013, becomes employed as an employee or becomes a Member covered under this chapter performing service which is creditable service under section 8411; and
(39) "representative payee" means a person (including an organization) designated under section 8466(c)(1) to receive payments on behalf of a minor or an individual mentally incompetent or under other legal disability.
(Added
Editorial Notes
References in Text
The Social Security Act, referred to in par. (11), is act Aug. 14, 1935, ch. 531,
Section 103(6) of the Foreign Service Act of 1980, referred to in par. (11)(iii), is classified to
The Federal Employees' Retirement System Act of 1986, referred to in par. (17)(B), is
The Federal Employees' Retirement Contribution Temporary Adjustment Act of 1983, referred to in pars. (19)(A) and (27)(B)(iii)(II), is
The date of the enactment of the Legislative Branch Appropriations Act, 2004, referred to in par. (20), is the date of enactment of
Amendments
2020—Par. (39).
2013—Par. (37)(B).
Par. (38).
2012—Par. (37).
2009—Par. (19)(C).
2008—Par. (31).
2007—Par. (36).
2003—Par. (20).
Par. (35).
2000—Par. (34).
1999—Par. (30).
"(A) is assigned to a civilian position as a technician in the administration and training of such reserve components or in the maintenance and repair of supplies issued to such reserve components; and
"(B) as a condition of employment in such position, is required to be a member of one of such reserve components serving in a specified military grade;".
1998—Par. (33).
1996—Par. (4).
1994—Par. (11).
Par. (30).
Par. (31).
1990—Par. (11)(C).
Par. (11)(i)(I).
Par. (11)(iv).
Par. (15).
Par. (32).
1988—Par. (11)(A).
Par. (11)(i)(II).
Par. (11)(iii).
Par. (14)(A)(ii).
Par. (14)(B).
Par. (17).
1986—Par. (11).
Par. (18).
Par. (19)(C), (D).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2008 Amendment
Amendment by
Effective Date of 2007 Amendment; Transition Rules
Amendment by
Effective Date of 2003 Amendment
"(1)
"(A) shall take effect on the 60th day after the date of enactment of this Act [Dec. 12, 2003]; and
"(B) shall apply with respect to—
"(i) any annuity entitlement to which is based on an individual's separation from service occurring on or after the effective date of this section; and
"(ii) any service performed by any such individual before, on, or after the effective date of this section, subject to paragraph (2).
"(2)
"(A)
"(i) the deductions from pay which would have been required for such service if the amendments made by subsection (a)(2) had been in effect when such service was performed, exceeds
"(ii) the unrefunded deductions or deposits actually made under subchapter II of
An amount under this subparagraph shall include interest, computed under paragraphs (2) and (3) of section 8334(e) of such title 5.
"(B)
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1994 Amendments
Amendment by
Amendment by
Effective Date of 1990 Amendments
Amendment by
Amendment by
Effective Date of 1988 Amendment
Amendment by section 103(a)(2), (c), and (d)(2) of
Effective Date
"(a)
"(b)
"(2) Except as provided in section 305 of this Act [enacting and amending provisions set out as notes under
"(3) The amendments made by sections 204 and 205 of this Act [enacting
"(4) Section 701 of this Act [enacting provisions set out as a note under
"(5) Sections 505 [amending provisions formerly set out as a note under
Reference to a specific date in section 702(a) of
Short Title of 1999 Amendment
Short Title of 1998 Amendment
Short Title of 1996 Amendment
Short Title of 1990 Amendment
Short Title of 1987 Amendment
Short Title of 1986 Amendment
Short Title
Regulations
Regulations to carry out amendment by
Transfer of Functions
For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see
Election
"(1) During the 60-day period which begins on the date of the enactment of the Legislative Branch Appropriations Act, 2004 [Sept. 30, 2003], any individual who, as of such date, is serving as a Member of the House of Representatives and on such date is not subject to
"(2) Any election under this paragraph shall be carried out in accordance with such procedures as the Office of Personnel Management may provide.
"(3) In this subsection, the term 'Member of the House of Representatives' includes a Delegate or Resident Commissioner to the Congress."
Service as Law Enforcement Officer
[
Congressional Declaration of Purpose
"(1) to establish a Federal employees' retirement plan which is coordinated with title II of the Social Security Act [
"(2) to ensure a fully funded and financially sound retirement benefits plan for Federal employees;
"(3) to enhance portability of retirement assets earned as an employee of the Federal Government;
"(4) to provide options for Federal employees with respect to retirement planning;
"(5) to assist in building a quality career work force in the Federal Government;
"(6) to encourage Federal employees to increase personal savings for retirement; and
"(7) to extend financial protection from disability to additional Federal employees and to increase such protection for eligible Federal employees."
Use of Normal-Cost Percentage
First Cost-of-Living Adjustment
"(1) For purposes of the first adjustment under subsection (b) of
"(2) As used in paragraph (1), the term 'base quarter' has the meaning provided by
1 So in original. The period probably should be a semicolon.
§8402. Federal Employees' Retirement System; exclusions
(a) The provisions of this chapter comprise the Federal Employees' Retirement System.
(b) The provisions of this chapter shall not apply with respect to—
(1) any individual who has performed service of a type described in subparagraph (C), (D), (E), or (F) of section 210(a)(5) of the Social Security Act continuously since December 31, 1983 (determined in accordance with the provisions of section 210(a)(5)(B) of the Social Security Act, relating to continuity of employment); or
(2)(A) any employee or Member who has separated from the service after—
(i) having been subject to—
(I) subchapter III of
(II) subchapter I of
(III) the benefit structure for employees of the Board of Governors of the Federal Reserve System appointed before January 1, 1984, that is a component of the Retirement Plan for Employees of the Federal Reserve System, established under section 10 of the Federal Reserve Act; and
(ii) having completed—
(I) at least 5 years of civilian service creditable under subchapter III of
(II) at least 5 years of civilian service creditable under subchapter I of
(III) at least 5 years of civilian service (other than any service performed in the employ of a Federal Reserve Bank) creditable under the benefit structure for employees of the Board of Governors of the Federal Reserve System appointed before January 1, 1984, that is a component of the Retirement Plan for Employees of the Federal Reserve System, established under section 10 of the Federal Reserve Act,
determined without regard to any deposit or redeposit requirement under either such subchapter or under such benefit structure, or any requirement that the individual become subject to either such subchapter or to such benefit structure after performing the service involved; or
(B) any employee having at least 5 years of civilian service performed before January 1, 1987, creditable under subchapter III of
except to the extent provided for under subsection (d) of this section or title III of the Federal Employees' Retirement System Act of 1986 pursuant to an election under such title to become subject to this chapter.
(c)(1) The Office may exclude from the operation of this chapter an employee or group of employees in or under an Executive agency, the United States Postal Service, or the Postal Regulatory Commission, whose employment is temporary or intermittent, except an employee whose employment is part-time career employment (as defined in section 3401(2)).
(2) The Architect of the Capitol may exclude from the operation of this chapter an employee under the Office of the Architect of the Capitol whose employment is temporary or of uncertain duration.
(3) The Librarian of Congress may exclude from the operation of this chapter an employee under the Library of Congress whose employment is temporary or of uncertain duration.
(4) The Director or Acting Director of the Botanic Garden may exclude from the operation of this chapter an employee under the Botanic Garden whose employment is temporary or of uncertain duration.
(5) The Chief Administrative Officer of the House of Representatives and the Secretary of the Senate each may exclude from the operation of this chapter a Congressional employee—
(A) whose employment is temporary or intermittent; and
(B) who is paid by such Chief Administrative Officer or Secretary, as the case may be.
(6) The Director of the Office of Technology Assessment may exclude from the operation of this chapter an employee under the Office of Technology Assessment whose employment is temporary or intermittent.
(7) The Director of the Congressional Budget Office may exclude from the operation of this chapter an employee under the Congressional Budget Office whose employment is temporary or intermittent.
(8) The Director of the Administrative Office of the United States Courts may exclude from the operation of this chapter an employee of the Administrative Office of the United States Courts, the Federal Judicial Center, or a court named by
(9) The Joint Committee on Judicial Administration in the District of Columbia may exclude from the operation of this chapter an employee of the District of Columbia Courts whose employment is temporary or of uncertain duration.
(d) Paragraph (2) of subsection (b) shall not apply to an individual who—
(1) becomes subject to—
(A) subchapter II of
(B) the benefit structure in which employees of the Board of Governors of the Federal Reserve System appointed on or after January 1, 1984, participate, which benefit structure is a component of the Retirement Plan for Employees of the Federal Reserve System, established under section 10 of the Federal Reserve Act (and any redesignated or successor version of such benefit structure, if so identified in writing by the Board of Governors of the Federal Reserve System for purposes of this chapter); and
(2) subsequently enters a position in which, but for paragraph (2) of subsection (b), such individual would be subject to this chapter.
(e) A bankruptcy judge or magistrate judge who is covered by
(f) A judge who is covered by
(g) A judge of the United States Court of Federal Claims who is covered by
(Added
Editorial Notes
References in Text
Section 210(a)(5) of the Social Security Act, referred to in subsec. (b)(1), is classified to
The Federal Employees' Retirement System Act of 1986, referred to in subsec. (b), is
The Foreign Service Act of 1980, referred to in subsecs. (b)(2)(A)(i)(II), (ii)(II) and (d)(1)(A), is
Section 10 of the Federal Reserve Act, referred to in subsecs. (b)(2)(A)(i)(III), (ii)(III) and (d)(1)(B), is section 10 of act Dec. 23, 1913, ch. 6,
Section 2(c) of the Retirement and Survivors' Annuities for Bankruptcy Judges and Magistrates Act of 1988, referred to in subsec. (e), is section 2(c) of
Amendments
2006—Subsec. (c)(1).
1999—Subsec. (b)(2)(A).
"(i) having been subject to subchapter III of
"(ii) having completed at least 5 years of civilian service creditable under subchapter III of
Subsec. (d).
1998—Subsec. (c)(9).
1996—Subsec. (c)(5).
1995—Subsec. (c)(7), (8).
1992—Subsec. (g).
1991—Subsec. (f).
Subsec. (g).
1990—Subsec. (c)(7).
Subsec. (g).
1989—Subsec. (f).
1988—Subsec. (b)(2).
Subsec. (d).
Subsec. (e).
1986—Subsec. (c)(5), (6).
Statutory Notes and Related Subsidiaries
Change of Name
Words "magistrate judge" substituted for "magistrate" wherever appearing in subsec. (e) pursuant to section 321 of
Effective Date of 1999 Amendment
"(1)
"(2)
"(3)
Effective Date of 1998 Amendment
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1990 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by
Provisions Relating to Certain Former Employees
"(1) has at least 5 years of civilian service (other than any service performed in the employ of a Federal Reserve Bank) creditable under the benefit structure for employees of the Board of Governors of the Federal Reserve System appointed before January 1, 1984, that is a component of the Retirement Plan for Employees of the Federal Reserve System, established under section 10 of the Federal Reserve Act [Act Dec. 23, 1913, ch. 6, see Codification note set out under
"(2) was subsequently employed subject to the benefit structure in which employees of the Board of Governors of the Federal Reserve System appointed on or after January 1, 1984, participate, which benefit structure is a component of the Retirement Plan for Employees of the Federal Reserve System, established under section 10 of the Federal Reserve Act (and any redesignated or successor version of such benefit structure, if so identified in writing by the Board of Governors of the Federal Reserve System for purposes of
"(3) after service described in paragraph (2), becomes subject to and thereafter entitled to benefits under
shall, for purposes of section 302 of the Federal Employees' Retirement System Act of 1986 [
§8403. Relationship to the Social Security Act
Except as otherwise provided in this chapter, the benefits payable under the System are in addition to the benefits payable under the Social Security Act.
(Added
Editorial Notes
References in Text
The Social Security Act, referred to in text, is act Aug. 14, 1935, ch. 531,
SUBCHAPTER II—BASIC ANNUITY
§8410. Eligibility for annuity
Notwithstanding any other provision of this chapter, an employee or Member must complete at least 5 years of civilian service creditable under section 8411 in order to be eligible for an annuity under this subchapter.
(Added
§8411. Creditable service
(a)(1) 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.
(2) Credit may not be allowed for a period of separation from the service in excess of 3 calendar days.
(b) For the purpose of this chapter, creditable service of an employee or Member includes—
(1) employment as an employee, and any service as a Member (including the period from the date of the beginning of the term for which elected or appointed to the date of taking office as a Member), after December 31, 1986;
(2) except as provided in subsection (f), service with respect to which deductions and withholdings under section 204(a)(1) of the Federal Employees' Retirement Contribution Temporary Adjustment Act of 1983 have been made;
(3) except as provided in subsection (f) or (h), any civilian service (performed before January 1, 1989, other than any service under paragraph (1) or (2)) which, but for the amendments made by subsections (a)(4) and (b) of section 202 of the Federal Employees' Retirement System Act of 1986, would be creditable under subchapter III of
(4) a period of service (other than any service under any other paragraph of this subsection and other than any military service) that was creditable under the Foreign Service Pension System described in subchapter II of
(5) a period of service (other than any service under any other paragraph of this subsection, any military service, and any service performed in the employ of a Federal Reserve Bank) that was creditable under the Bank Plan (as defined in subsection (i)), if the employee waives credit for such service under the Bank Plan and makes a payment to the Fund equal to the amount that would have been deducted from pay under section 8422(a) had the employee been subject to this chapter during such period of service (together with interest on such amount computed under paragraphs (2) and (3) of section 8334(e)); and
(6) 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 otherwise creditable, if the individual elects (in accordance with regulations prescribed by the Office) to have such service credited under this paragraph.
Paragraph (5) shall not apply in the case of any employee as to whom subsection (g) (or, to the extent subchapter III of
(c)(1) Except as provided in paragraphs (2), (3), and (5), an employee or Member shall be allowed credit for—
(A) each period of military service performed before January 1, 1957; and
(B) each period of military service performed after December 31, 1956, and before the separation on which title to annuity is based, if a deposit (including interest, if any) is made with respect to such period in accordance with section 8422(e).
(2) If an employee or Member is awarded retired pay based on any period of military service, the service of the employee or Member may not include credit for such period of military service unless the retired pay is awarded—
(A) based on a service-connected disability—
(i) incurred in combat with an enemy of the United States; or
(ii) caused by an instrumentality of war and incurred in line of duty during a period of war as defined by
(B) under
(3) An employee or Member who has made a deposit under section 8334(j) (or a similar prior provision of law) with respect to a period of military service, and who has not taken a refund of such deposit—
(A) shall be allowed credit for such service without regard to the deposit requirement under paragraph (1)(B); and
(B) shall be entitled, upon filing appropriate application therefor with the Office, to a refund equal to the difference between—
(i) the amount deposited with respect to such period under such section 8334(j) (or prior provision), excluding interest; and
(ii) the amount which would otherwise have been required with respect to such period under paragraph (1)(B).
(4)(A) Notwithstanding paragraph (2), for purposes of computing a survivor annuity for a survivor of an employee or Member—
(i) who was awarded retired pay based on any period of military service, and
(ii) whose death occurs before separation from the service,
creditable service of the deceased employee or Member shall include each period of military service includable under subparagraph (A) or (B) of paragraph (1) or under paragraph (3). In carrying out this subparagraph, any amount deposited under section 8422(e)(5) shall be taken into account.
(B) A survivor annuity computed based on an amount which, under authority of subparagraph (A), takes into consideration any period of military service shall be reduced by the amount of any survivor's benefits—
(i) payable to a survivor (other than a child) under a retirement system for members of the uniformed services;
(ii) if, or to the extent that, such benefits are based on such period of military service.
(C) The Office of Personnel Management shall prescribe regulations to carry out this paragraph, including regulations under which—
(i) a survivor may elect not to be covered by this paragraph; and
(ii) this paragraph shall be carried out in any case which involves a former spouse.
(5) 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
(d) Credit under this chapter shall be allowed for leaves of absence without pay granted an employee while performing military service, or while receiving benefits under subchapter I of
(e) Credit shall be allowed for periods of approved leave without pay granted an employee to serve as a full-time officer or employee of an organization composed primarily of employees (as defined by section 8331(1) or 8401(11)), subject to the employee arranging to pay, through the employee's employing agency, within 60 days after commencement of such leave without pay, amounts equal to the retirement deductions and agency contributions which would be applicable under sections 8422(a) and 8423(a), respectively, if the employee were in pay status. If the election and all payments provided by this subsection are not made, the employee may not receive credit for the periods of leave without pay, notwithstanding the third sentence of subsection (d).
(f)(1) An employee or Member who has received a refund of retirement deductions under subchapter III of
(2) An employee or Member may not be allowed credit under this chapter for any service described in subsection (b)(3) for which retirement deductions under subchapter III of
(3) Interest under paragraph (1) or (2) shall be computed in accordance with paragraphs (2) and (3) of section 8334(e) and regulations prescribed by the Office.
(4) For the purpose of survivor annuities, deposits authorized by the preceding provisions of this subsection may also be made by a survivor of an employee or Member.
(g) Any employee who—
(1) served in a position in which the employee was excluded from coverage under this subchapter because the employee was covered under a retirement system established under section 10 of the Federal Reserve Act; and
(2) transferred without a break in service to a position to which the employee was appointed by the President, with the advice and consent of the Senate, and in which position the employee is subject to this subchapter,
shall be treated for all purposes of this subchapter as if any service that would have been creditable under the retirement system established under section 10 of the Federal Reserve Act was service performed while subject to this subchapter if any employee and employer deductions, contributions or rights with respect to the employee's service are transferred from such retirement system to the Fund.
(h) An employee or Member shall be allowed credit for 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,1 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 performed at any time prior to the separation on which the entitlement to any annuity under this subchapter is based if the employee or Member has made a deposit with interest, if any, with respect to such service under section 8422(f).
(i) 2 For purposes of subsection (b)(5), the term "Bank Plan" means the benefit structure in which employees of the Board of Governors of the Federal Reserve System appointed on or after January 1, 1984, participate, which benefit structure is a component of the Retirement Plan for Employees of the Federal Reserve System, established under section 10 of the Federal Reserve Act (and any redesignated or successor version of such benefit structure, if so identified in writing by the Board of Governors of the Federal Reserve System for purposes of this chapter).
(i)(1) 2 Upon application to the Office of Personnel Management, any individual who was an employee on the date of enactment of this paragraph, and who has on such date or thereafter acquired 5 years or more of creditable civilian service under this section (exclusive of service for which credit is allowed under this subsection) shall be allowed credit (as service as a congressional employee) for service before December 31, 1990, while employed by the Democratic Senatorial Campaign Committee, the Republican Senatorial Campaign Committee, the Democratic National Congressional Committee, or the Republican National Congressional Committee, if—
(A) such employee has at least 4 years and 6 months of service on such committees as of December 31, 1990; and
(B) such employee deposits to the Fund an amount equal to 1.3 percent of the base pay for such service, with interest.
(2) The Office shall accept the certification of the President of the Senate (or the President's designee) or the Speaker of the House of Representatives (or the Speaker's designee), as the case may be, concerning the service of, and the amount of compensation received by, an employee with respect to whom credit is to be sought under this subsection.
(3) An individual shall not be granted credit for such service under this subsection if eligible for credit under section 8332(m) for such service.
(k)(1) 3 The Office of Personnel Management shall accept, for the purposes of this chapter, the certification of the head of a nonappropriated fund instrumentality of the United States concerning service of the type described in subsection (b)(6) that was performed for such nonappropriated fund instrumentality.
(2) Service credited under subsection (b)(6) may not also be credited under any other retirement system provided for employees paid from nonappropriated funds of a nonappropriated fund instrumentality.
(l)(1) Notwithstanding any other provision of this chapter, the service of an individual finally convicted of an offense described in paragraph (2) shall not be taken into account for purposes of this chapter, 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 8424(d), if applicable) shall be entitled to be paid so much of such individual's lump-sum credit as is attributable to service to which the preceding sentence applies.
(2) An offense described in this paragraph is any offense described in section 8332(o)(2)(B) for which the following apply:
(A) 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.
(B) 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.
(C) The offense is committed after the date of enactment of this subsection.
(3) An individual convicted of an offense described in paragraph (2) shall not, after the date of the final conviction, be eligible to participate in the retirement system under this chapter while serving as a Member.
(4) The Office of Personnel Management shall prescribe any regulations necessary to carry out this subsection. Such regulations shall include—
(A) provisions under which interest on any lump-sum payment under the second sentence of paragraph (1) shall be limited in a manner similar to that specified in the last sentence of section 8316(b); and
(B) provisions under which the Office may provide for—
(i) the payment, to the spouse or children of any individual referred to in the first sentence of paragraph (1), of any amounts which (but for this clause) would otherwise have been nonpayable by reason of such first sentence, subject to paragraph (5); and
(ii) an appropriate adjustment in the amount of any lump-sum payment under the second sentence of paragraph (1) to reflect the application of clause (i).
(5) Regulations to carry out clause (i) of paragraph (4)(B) shall include provisions to ensure that the authority to make any payment under such clause to the spouse or children of an individual shall be available only to the extent that the application of such clause is considered necessary and appropriate taking into account the totality of the circumstances, including the financial needs of the spouse or children, whether the spouse or children participated in an offense described in paragraph (2) of which such individual was finally convicted, and what measures, if any, may be necessary to ensure that the convicted individual does not benefit from any such payment.
(6) For purposes of this subsection—
(A) the terms "finally convicted" and "final conviction" refer to a conviction (i) which has not been appealed and is no longer appealable because the time for taking an appeal has expired, or (ii) which has been appealed and the appeals process for which is completed;
(B) the term "Member" has the meaning given such term by section 2106, notwithstanding section 8401(20); and
(C) the term "child" has the meaning given such term by section 8441.
(Added
Editorial Notes
References in Text
Section 204(a)(1) of the Federal Employees' Retirement Contribution Temporary Adjustment Act of 1983 [
Subsections (a)(4) and (b) of section 202 of the Federal Employees' Retirement System Act of 1986 [
The Foreign Service Act of 1980, referred to in subsec. (b)(4), is
Section 10 of the Federal Reserve Act, referred to in subsecs. (g) and (i), is section 10 of act Dec. 23, 1913, ch. 6,
The Economic Opportunity Act of 1964, referred to in subsec. (h), is
The Domestic Volunteer Service Act of 1973, referred to in subsec. (h), is
The Peace Corps Act, referred to in subsec. (h), is
The date of enactment of this paragraph, referred to in subsec. (i)(1), is the date of enactment of
The date of enactment of this subsection, referred to in subsec. (l)(2)(C), is the date of enactment of
Amendments
2012—Subsec. (l)(2)(A), (B).
2007—Subsec. (l).
2001—Subsec. (b)(6).
Subsec. (k).
2000—Subsec. (i).
1999—Subsec. (b).
Subsec. (i).
1996—Subsec. (c)(1).
Subsec. (c)(5).
1994—Subsec. (c)(2)(B).
1993—Subsec. (b)(3).
Subsec. (h).
1991—Subsec. (c)(2)(A)(ii).
Subsec. (g).
1988—Subsec. (c)(4)(A).
Subsec. (f)(1).
1986—Subsec. (b)(2).
Subsec. (c)(4).
Subsec. (f)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 2001 Amendment
Amendment by
Effective Date of 1999 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1991 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by section 502(b) of
Transfer of Functions
For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see
Retirement Credit for Certain Government Service Performed Abroad
"(a)
"(1) it was performed by such individual—
"(A) after December 31, 1988, and before May 24, 1998;
"(B) at a United States diplomatic mission, consular post (other than a consular agency), or other Foreign Service post abroad; and
"(C) under a temporary appointment pursuant to sections 309 and 311 of the Foreign Service Act of 1980 (
"(2) at the time of performing such service, such individual would have satisfied all eligibility requirements under regulations of the Department (as in effect on the date of the enactment of this Act [Sept. 30, 2002]) for a family member limited noncareer appointment (within the meaning of such regulations, as in effect on such date of enactment), except that, in applying this paragraph, an individual not employed by the Department while performing such service shall be treated as if then so employed;
"(3) such service would have been creditable under section 8411(b)(3) of such title 5 if—
"(A) the service had been performed before January 1, 1989; and
"(B) the deposit requirements of section 8411(f) of such title 5 had been met with respect to such service;
"(4) such service would not otherwise be creditable under the Federal Employees' Retirement System or any other retirement system for employees of the United States Government (disregarding title II of the Social Security Act [
"(5) the total amount of service performed by such individual (satisfying paragraphs (1) through (4)) is not less than 90 days.
"(b)
"(1)
"(A) shall file a written application with the Office of Personnel Management not later than 36 months after the effective date of the regulations prescribed to carry out this section (as specified in those regulations); and
"(B) shall remit to the Office (for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund) the total amount that, under section 8422 of such title 5, should have been deducted from the basic pay of such individual for such service if such service had then been creditable under such
"(2)
"(A)
"(B)
"(C)
"(3)
"(A) shall be made in such time, form, and manner as the Office of Personnel Management may by regulation require; and
"(B) shall be computed with interest (in accordance with
"(4)
"(A)
"(B)
"(C)
"(c)
"(1)
"(2)
"(3)
"(4)
"(d)
"(e)
"(1)
"(A) which is based on the service of an individual who performed service described in subsection (a), and
"(B) which commences on or after the effective date of the regulations prescribed to carry out this section (as determined under subsection (b)(1)(A)),
shall (subject to subsection (b)(1)) be computed taking into account all service described in subsection (a) that was performed by such individual.
"(2)
"(A)
"(i) which is based on the service of an individual who performed service described in subsection (a), and
"(ii) which commences before the effective date referred to in paragraph (1)(B),
shall (subject to subsection (b)(1)) be recomputed taking into account all service described in subsection (a) that was performed by such individual.
"(B)
"(i) which is based on the service of an individual who performed service described in subsection (a),
"(ii) the requirements for entitlement which could not be met without taking into account service described in subsection (a), and
"(iii) which (if service described in subsection (a) had been taken into account, and an appropriate application been submitted) would have commenced before the effective date referred to in paragraph (1)(B),
shall (subject to subsection (b)(1)) be computed taking into account all service described in subsection (a) that was performed by such individual.
"(C)
"(i) if pursuant to subparagraph (A), be effective as of the commencement date of the annuity or survivor annuity involved; and
"(ii) if pursuant to subparagraph (B), be effective as of the commencement date that would have applied if application for the annuity or survivor annuity involved had been submitted on the earliest date possible in order for it to have been approved.
"(D)
"(E)
"(f)
[For definitions of "Department" and "Secretary" as used in section 321 of
1 See References in Text note below.
2 So in original. Two subsecs. (i) have been enacted.
3 So in original. No subsec. (j) has been enacted.
§8412. Immediate retirement
(a) An employee or Member who is separated from the service after attaining the applicable minimum retirement age under subsection (h) and completing 30 years of service is entitled to an annuity.
(b) An employee or Member 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 or Member who is separated from the service after becoming 62 years of age and completing 5 years of service is entitled to an annuity.
(d)(1) An employee who is separated from the service, except by removal for cause on charges of misconduct or delinquency—
(A) after completing 25 years of service as a law enforcement officer, member of the Capitol Police or Supreme Court Police, firefighter, nuclear materials courier, or customs and border protection officer, or any combination of such service totaling at least 25 years, or
(B) after becoming 50 years of age and completing 20 years of service as a law enforcement officer, member of the Capitol Police or Supreme Court Police, firefighter, nuclear materials courier, or customs and border protection officer, or any combination of such service totaling at least 20 years,
is entitled to an annuity.
(2)(A) In this paragraph—
(i) the term "affected individual" means an individual covered under this chapter who—
(I) is performing service in a covered position;
(II) while on duty, becomes ill or is injured as a direct result of the performance of such duties before the date on which the individual becomes entitled to an annuity under paragraph (1) of this subsection or subsection (e), as applicable;
(III) because of the illness or injury described in subclause (II), is permanently unable to render useful and efficient service in the employee's covered position, as determined by the agency in which the individual was serving when such individual incurred the illness or injury; and
(IV) is appointed to a position in the civil service that—
(aa) is not a covered position; and
(bb) is within an agency that regularly appoints individuals to supervisory or administrative positions related to the activities of the former covered position of the individual;
(ii) the term "covered position" means a position as a law enforcement officer, customs and border protection officer, firefighter, air traffic controller, nuclear materials courier, member of the Capitol Police, or member of the Supreme Court Police.
(B) Unless an affected individual files an election described in subparagraph (E), creditable service by the affected individual in a position described in subparagraph (A)(i)(IV) shall be treated as creditable service in a covered position for purposes of this chapter and determining the amount to be deducted and withheld from the pay of the affected individual under section 8422.
(C) Subparagraph (B) shall only apply if the affected employee transitions to a position described in subparagraph (A)(i)(IV) without a break in service exceeding 3 days.
(D) The service of an affected individual shall no longer be eligible for treatment under subparagraph (B) if such service occurs after the individual—
(i) is transferred to a supervisory or administrative position related to the activities of the former covered position of the individual; or
(ii) meets the age and service requirements that would subject the individual to mandatory separation under section 8425 if such individual had remained in the former covered position.
(E) In accordance with procedures established by the Director of the Office of Personnel Management, an affected individual may file an election to have any creditable service performed by the affected individual treated in accordance with this chapter without regard to subparagraph (B).
(F) Nothing in this paragraph shall be construed to apply to such affected individual any other pay-related laws or regulations applicable to a covered position.
(e) An employee who is separated from the service, except by removal for cause on charges of misconduct or delinquency—
(1) after completing 25 years of service as an air traffic controller, or
(2) after becoming 50 years of age and completing 20 years of service as an air traffic controller,
is entitled to an annuity.
(f) A Member who is separated from the service, except by resignation or expulsion—
(1) after completing 25 years of service, or
(2) after becoming 50 years of age and completing 20 years of service,
is entitled to an annuity.
(g)(1) An employee or Member who is separated from the service after attaining the applicable minimum retirement age under subsection (h) and completing 10 years of service is entitled to an annuity. This subsection shall not apply to an employee or Member who is entitled to an annuity under any other provision of this section.
(2) An employee or Member entitled to an annuity under this subsection may defer the commencement of such annuity by written election. The date to which the commencement of the annuity is deferred may not precede the 31st day after the date of filing the election, and must precede the date on which the employee or Member becomes 62 years of age.
(3) The Office shall prescribe regulations under which an election under paragraph (2) shall be made.
(h)(1) The applicable minimum retirement age under this subsection is—
(A) for an individual whose date of birth is before January 1, 1948, 55 years of age;
(B) for an individual whose date of birth is after December 31, 1947, and before January 1, 1953, 55 years of age plus the number of months in the age increase factor determined under paragraph (2)(A);
(C) for an individual whose date of birth is after December 31, 1952, and before January 1, 1965, 56 years of age;
(D) for an individual whose date of birth is after December 31, 1964, and before January 1, 1970, 56 years of age plus the number of months in the age increase factor determined under paragraph (2)(B); and
(E) for an individual whose date of birth is after December 31, 1969, 57 years of age.
(2)(A) For an individual whose date of birth occurs during the 5-year period consisting of calendar years 1948 through 1952, the age increase factor shall be equal to two-twelfths times the number of months in the period beginning with January 1948 and ending with December of the year in which the date of birth occurs.
(B) For an individual whose date of birth occurs during the 5-year period consisting of calendar years 1965 through 1969, the age increase factor shall be equal to two-twelfths times the number of months in the period beginning with January 1965 and ending with December of the year in which the date of birth occurs.
(Added
Applicability of Amendment
For provisions relating to delayed applicability of amendment by
Editorial Notes
Amendments
2022—Subsec. (d).
2007—Subsec. (d)(1), (2).
2000—Subsec. (d).
1998—Subsec. (d)(1), (2).
1990—Subsec. (d)(1), (2).
1986—Subsec. (g).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 2007 Amendment; Transition Rules
Amendment by
Effective Date of 2000 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Regulations
For provisions relating to promulgation of regulations to carry out the amendments made by
§8412a. Phased retirement
(a) For the purposes of this section—
(1) the term "composite retirement annuity" means the annuity computed when a phased retiree attains full retirement status;
(2) the term "full retirement status" means that a phased retiree has ceased employment and is entitled, upon application, to a composite retirement annuity;
(3) the term "phased employment" means the less-than-full-time employment of a phased retiree;
(4) the term "phased retiree" means a retirement-eligible employee who—
(A) makes an election under subsection (b); and
(B) has not entered full retirement status;
(5) the term "phased retirement annuity" means the annuity payable under this section before full retirement;
(6) the term "phased retirement percentage" means the percentage which, when added to the working percentage for a phased retiree, produces a sum of 100 percent;
(7) the term "phased retirement period" means the period beginning on the date on which an individual becomes entitled to receive a phased retirement annuity and ending on the date on which the individual dies or separates from phased employment;
(8) the term "phased retirement status" means that a phased retiree is concurrently employed in phased employment and eligible to receive a phased retirement annuity;
(9) the term "retirement-eligible employee"—
(A) means an individual who, if the individual separated from the service, would meet the requirements for retirement under subsection (a) or (b) of section 8412; and
(B) does not include—
(i) an individual who, if the individual separated from the service, would meet the requirements for retirement under subsection (d) or (e) of section 8412; but
(ii) does not include an employee described in section 8425 after the date on which the employee is required to be separated from the service by reason of such section; and
(10) the term "working percentage" means the percentage of full-time employment equal to the quotient obtained by dividing—
(A) the number of hours per pay period to be worked by a phased retiree, as scheduled in accordance with subsection (b)(2); by
(B) the number of hours per pay period to be worked by an employee serving in a comparable position on a full-time basis.
(b)(1) With the concurrence of the head of the employing agency, and under regulations promulgated by the Director, a retirement-eligible employee who has been employed on a full-time basis for not less than the 3-year period ending on the date on which the retirement-eligible employee makes an election under this subsection may elect to enter phased retirement status.
(2)(A) Subject to subparagraph (B), at the time of entering phased retirement status, a phased retiree shall be appointed to a position for which the working percentage is 50 percent.
(B) The Director may, by regulation, provide for working percentages different from the percentage specified under subparagraph (A), which shall be not less than 20 percent and not more than 80 percent.
(C) The working percentage for a phased retiree may not be changed during the phased retiree's phased retirement period.
(D)(i) Not less than 20 percent of the hours to be worked by a phased retiree shall consist of mentoring.
(ii) The Director may, by regulation, provide for exceptions to the requirement under clause (i).
(iii) Clause (i) shall not apply to a phased retiree serving in the United States Postal Service. Nothing in this clause shall prevent the application of clause (i) or (ii) with respect to a phased retiree serving in the Postal Regulatory Commission.
(3) A phased retiree—
(A) may not be employed in more than one position at any time; and
(B) may transfer to another position in the same or a different agency, only if the transfer does not result in a change in the working percentage.
(4) A retirement-eligible employee may make not more than one election under this subsection during the retirement-eligible employee's lifetime.
(5) A retirement-eligible employee who makes an election under this subsection may not make an election under section 8420a.
(c)(1) Except as otherwise provided under this subsection, the phased retirement annuity for a phased retiree is the product obtained by multiplying—
(A) the amount of an annuity computed under section 8415 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 8412 (a) or (b); by
(B) the phased retirement percentage for the phased retiree.
(2) A phased retirement annuity shall be paid in addition to the basic pay for the position to which a phased retiree is appointed during the phased employment.
(3) A phased retirement annuity shall be adjusted in accordance with section 8462.
(4)(A) A phased retirement annuity shall not be subject to reduction for any form of survivor annuity, shall not serve as the basis of the computation of any survivor annuity, and shall not be subject to any court order requiring a survivor annuity to be provided to any individual.
(B) A phased retirement annuity shall be subject to a court order providing for division, allotment, assignment, execution, levy, attachment, garnishment, or other legal process on the same basis as other annuities.
(5)(A) Any deposit, or election of an actuarial annuity reduction in lieu of a deposit, for military service or for creditable civilian service for which retirement deductions were not made or refunded, shall be made by a retirement-eligible employee at or before the time the retirement-eligible employee enters phased retirement status. No such deposit may be made, or actuarial adjustment in lieu thereof elected, at the time a phased retiree enters full retirement status.
(B) Notwithstanding subparagraph (A), if a phased retiree does not make such a deposit and dies in service as a phased retiree, a survivor of the phased retiree shall have the same right to make such deposit as would have been available had the employee not entered phased retirement status and died in service.
(6) A phased retirement annuity shall commence on the date on which a phased retiree enters phased employment.
(7) 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 sections 8422 and 8423.
(e) Under such procedures as the Director may prescribe, a phased retiree may elect to enter full retirement status at any time. Upon making such an election, a phased retiree shall be entitled to a composite retirement annuity.
(f)(1) Except as provided otherwise under this subsection, a composite retirement annuity is a single annuity computed under regulations prescribed by the Director, equal to the sum of—
(A) the amount of the phased retirement annuity as of the date of full retirement, including any adjustments made under section 8462; and
(B) the product obtained by multiplying—
(i) the amount of an annuity computed under section 8412 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 adjustment to provide for a survivor annuity; by
(ii) the working percentage.
(2) After computing a composite retirement annuity under paragraph (1), the Director shall adjust the amount of the annuity for any applicable reductions for a survivor annuity.
(3) A composite retirement annuity shall be adjusted in accordance with section 8462, except that subsection (c)(1) of that section shall not apply.
(4) In computing a composite retirement annuity under paragraph (1)(B)(i), the unused sick leave to the credit of a phased retiree at the time of entry into full retirement status shall be adjusted by dividing the number of hours of unused sick leave by the working percentage.
(g)(1) Under such procedures and conditions as the Director may provide, and with the concurrence of the head of employing agency, a phased retiree may elect to terminate phased retirement status and return to a full-time work schedule.
(2) Upon entering a full-time work schedule based on an election under paragraph (1), the phased retirement annuity of a phased retiree shall terminate.
(3) After termination of the phased retirement annuity under this subsection, the individual's rights under this chapter shall be determined based on the law in effect at the time of any subsequent separation from service. For purposes of this chapter, at the 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 subchapter IV—
(1) the death of a phased retiree shall be deemed to be the death in service of an employee;
(2) except for purposes of section 8442(b)(1)(A)(i), 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) of this section; and
(3) for purposes of section 8442(b)(1)(A)(i), the phased retiree shall be deemed to have been at the full-time rate of pay for the position occupied.
(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 receive an annuity supplement under section 8421.
(k) For purposes of subchapter III, a phased retiree shall be deemed to be an employee.
(l) For purposes of section 8445(d), retirement shall be deemed to occur on the date on which a phased retiree enters into full retirement status.
(m) A phased retiree is not eligible to apply for an annuity under subchapter V.
(n) A phased retiree is not subject to section 8468.
(o) For purposes of
(Added
Statutory Notes and Related Subsidiaries
Effective Date
Section effective on Nov. 6, 2014, see section 100121(d) of
§8413. Deferred retirement
(a) An employee or Member who is separated from the service, or transferred to a position in which the employee or Member does not continue subject to this chapter, after completing 5 years of service is entitled to an annuity beginning at the age of 62 years.
(b)(1) An employee or Member who is separated from the service, or transferred to a position in which the employee or Member does not continue subject to this chapter, after completing 10 years of service but before attaining the applicable minimum retirement age under section 8412(h) is entitled to an annuity beginning on the date designated by the employee or Member in a written election under this subsection. The date designated under this subsection may not precede the date on which the employee or Member attains such minimum retirement age and must precede the date on which the employee or Member becomes 62 years of age.
(2) The election of an annuity under this subsection shall not be effective unless—
(A) it is made at such time and in such manner as the Office shall by regulation prescribe; and
(B) the employee or Member will not otherwise be eligible to receive an annuity within 31 days after filing the election.
(3) The election of an annuity under this subsection extinguishes the right of the employee or Member to receive any other annuity based on the service on which the annuity under this subsection is based.
(Added
Editorial Notes
Amendments
1986—Subsec. (b)(1).
§8414. Early retirement
(a)(1) A member of the Senior Executive Service who is removed from the Senior Executive Service for less than fully successful executive performance (as determined under subchapter II of
(2) A member of the Defense Intelligence Senior Executive Service or the Senior Cryptologic Executive Service who is removed from such service for failure to be recertified as a senior executive or for less than fully successful executive performance after completing 25 years of service, or after becoming 50 years of age and completing 20 years of service, is entitled to an annuity.
(3) A member of the Federal Bureau of Investigation and Drug Enforcement Administration Senior Executive Service who is removed from such service for failure to be recertified as a senior executive or for less than fully successful executive performance after completing 25 years of service or after becoming 50 years of age and completing 20 years of service is entitled to an annuity.
(b)(1) Except as provided in paragraphs (2) and (3), an employee who—
(A) is separated from the service involuntarily, except by removal for cause on charges of misconduct or delinquency; or
(B)(i) 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 clause (iv);
(ii) is serving under an appointment that is not time limited;
(iii) has not been duly notified that such employee is to be involuntarily separated for misconduct or unacceptable performance;
(iv) is separate 1 from the service voluntarily during a period in which, as determined by the Office of Personnel Management (upon request of the agency) under regulations prescribed by the Office—
(I) such agency (or, if applicable, the component in which the employee is serving) is undergoing substantial delayering, substantial reorganization, substantial reductions in force, substantial transfer of function, or other substantial workforce restructuring (or shaping);
(II) a significant percentage of employees serving in such agency (or component) are likely to be separated or subject to an immediate reduction in the rate of basic pay (without regard to subchapter VI of
(III) identified as being in positions which are becoming surplus or excess to the agency's future ability to carry out its mission effectively; and
(v) as determined by the agency under regulations prescribed by the Office, is within the scope of the offer of voluntary early retirement, which may be made on the basis of—
(I) 1 or more organizational units;
(II) 1 or more occupational series or levels;
(III) 1 or more geographical locations;
(IV) specific periods;
(V) skills, knowledge, or other factors related to a position; or
(VI) any appropriate combination of such factors.2
after completing 25 years of service, or after becoming 50 years of age and completing 20 years of service, is entitled to an annuity.
(2) An employee under paragraph (1) who is separated as described in subparagraph (A) of such paragraph 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, and the offered position is not lower than 2 grades (or pay levels) below the employee's grade (or pay level) and is within the employee's commuting area.
(3) Paragraph (1) shall not apply to an employee entitled to an annuity under subsection (d)(1) or (e) of section 8412.
(c)(1) An employee who was hired as a military reserve technician on or before February 10, 1996 (under the provisions of this title in effect before that date), and who is separated from technician service, after becoming 50 years of age and completing 25 years of service, by reason of being separated from the Selected Reserve of the employee's reserve component or ceasing to hold the military grade specified by the Secretary concerned for the position held by the employee is entitled to an annuity.
(2) An employee who is initially hired as a military technician (dual status) after February 10, 1996, and who is separated from the Selected Reserve or ceases to hold the military grade specified by the Secretary concerned for the position held by the technician—
(A) after completing 25 years of service as a military technician (dual status), or
(B) after becoming 50 years of age and completing 20 years of service as a military technician (dual status),
is entitled to an annuity.
(d)(1) The Secretary of Defense may, during fiscal years 2002 and 2003, carry out a program under which an employee of the Department of Defense may be separated from the service entitled to an immediate annuity under this subchapter if the employee—
(A) has—
(i) completed 25 years of service; or
(ii) become 50 years of age and completed 20 years of service; and
(B) is eligible for the annuity under paragraph (2) or (3).
(2)(A) For the purposes of paragraph (1), an employee referred to in that paragraph is eligible for an immediate annuity under this paragraph if the employee—
(i) is separated from the service involuntarily other than for cause; and
(ii) has not declined a reasonable offer of another position in the Department of Defense for which the employee is qualified, which is not lower than 2 grades (or pay levels) below the employee's grade (or pay level), and which is within the employee's commuting area.
(B) For the purposes of paragraph (2)(A)(i), a separation for failure to accept a directed reassignment to a position outside the commuting area of the employee concerned or to accompany a position outside of such area pursuant to a transfer of function may not be considered to be a removal for cause.
(3) For the purposes of paragraph (1), an employee referred to in that paragraph is eligible for an immediate annuity under this paragraph if the employee satisfies all of the following conditions:
(A) The employee is separated from the service voluntarily during a period in which the organization within the Department of Defense in which the employee is serving is undergoing a major organizational adjustment.
(B) The employee has been employed continuously by the Department of Defense for more than 30 days before the date on which the head of the employee's organization requests the determinations required under subparagraph (A).
(C) The employee is serving under an appointment that is not limited by time.
(D) The employee is not in receipt of a decision notice of involuntary separation for misconduct or unacceptable performance.
(E) The employee is within the scope of an offer of voluntary early retirement, as defined on the basis of one or more of the following objective criteria:
(i) One or more organizational units.
(ii) One or more occupational groups, series, or levels.
(iii) One or more geographical locations.
(iv) Any other similar objective and nonpersonal criteria that the Office of Personnel Management determines appropriate.
(4) Under regulations prescribed by the Office of Personnel Management, the determinations of whether an employee meets—
(A) the requirements of subparagraph (A) of paragraph (3) shall be made by the Office upon the request of the Secretary of Defense; and
(B) the requirements of subparagraph (E) of such paragraph shall be made by the Secretary of Defense.
(5) A determination of which employees are within the scope of an offer of early retirement shall be made only on the basis of consistent and well-documented application of the relevant criteria.
(6) In this subsection, the term "major organizational adjustment" means any of the following:
(A) A major reorganization.
(B) A major reduction in force.
(C) A major transfer of function.
(D) A workforce restructuring—
(i) to meet mission needs;
(ii) to achieve one or more reductions in strength;
(iii) to correct skill imbalances; or
(iv) to reduce the number of high-grade, managerial, supervisory, or similar positions.
(Added
Applicability of Amendment
For provisions relating to delayed applicability of amendment by
Editorial Notes
Amendments
2022—Subsec. (b)(3).
2002—Subsec. (a)(1).
Subsec. (b)(1)(B).
"(i) the agency in which the employee is serving is undergoing a major reorganization, a major reduction in force, or a major transfer of function; and
"(ii) a significant percentage of the total number of employees serving in such agency will be separated or subject to an immediate reduction in the rate of basic pay (without regard to subchapter VI of
2000—Subsec. (b)(1)(B).
Subsec. (d).
1999—Subsec. (b)(1)(B).
Subsec. (c).
Subsec. (d).
1998—Subsec. (b)(1)(B).
Subsec. (d).
1989—Subsec. (a)(1).
Subsec. (a)(2), (3).
1988—Subsec. (a)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 2002 Amendment
Amendment by
Effective Date of 1989 Amendment
Amendment by
Government Accountability Office: Voluntary Early Retirement
For provisions relating to the application of subsection (b)(1)(B) of this section to officers and employees of the Government Accountability Office effective Oct. 13, 2000, see section 1 of
Application of Subsection (b)(1)(B)
1 So in original. Probably should be "separated".
2 So in original. Probably should be a semicolon.
§8415. Computation of basic annuity
(a) Except as otherwise provided in this section, the annuity of an employee retiring under this subchapter is 1 percent of that individual's average pay multiplied by such individual's total service.
(b) The annuity of a Member, or former Member with title to a Member annuity, retiring under this subchapter is computed under subsection (a), except that if the individual has had at least 5 years of service as a Member or Congressional employee, or any combination thereof, so much of the annuity as is computed with respect to either such type of service (or a combination thereof), not exceeding a total of 20 years, shall be computed by multiplying 17/10 percent of the individual's average pay by the years of such service.
(c) The annuity of a Congressional employee, or former Congressional employee, retiring under this subchapter is computed under subsection (a), except that if the individual has had at least 5 years of service as a Congressional employee or Member, or any combination thereof, so much of the annuity as is computed with respect to either such type of service (or a combination thereof), not exceeding a total of 20 years, shall be computed by multiplying 17/10 percent of the individual's average pay by the years of such service.
(d) Notwithstanding any other provision of law, the annuity of an individual described in subsection (b) or (c) who is a revised annuity employee or a further revised annuity employee shall be computed in the same manner as in the case of an individual described in subsection (a).
(e) The annuity of an employee retiring under subsection (d)(1) or (e) of section 8412 or under subsection (a), (b), or (c) of section 8425 is—
(1) 17/10 percent of that individual's average pay multiplied by so much of such individual's total service as does not exceed 20 years; plus
(2) 1 percent of that individual's average pay multiplied by so much of such individual's total service as exceeds 20 years.
(f) The annuity of an air traffic controller or former air traffic controller retiring under section 8412(a) is computed under subsection (a), except that if the individual has at least 5 years of service in any combination as—
(1) an air traffic controller as defined by section 2109(1)(A)(i);
(2) a first level supervisor of an air traffic controller as defined by section 2109(1)(A)(i); or
(3) a second level supervisor of an air traffic controller as defined by section 2109(1)(A)(i);
so much of the annuity as is computed with respect to such type of service shall be computed by multiplying 1 7/10 percent of the individual's average pay by the years of such service.
(g)(1) In computing an annuity under this subchapter for an employee whose service includes service performed on a part-time basis—
(A) the average pay of the employee, to the extent that it includes pay for service performed in any position on a part-time basis, shall be determined by using the annual rate of basic pay that would be payable for full-time service in the position; and
(B) the benefit so computed shall then be multiplied by a fraction equal to the ratio which the employee's actual service, as determined by prorating the employee's total service to reflect the service that was performed on a part-time basis, bears to the total service that would be creditable for the employee if all of the service had been performed on a full-time basis.
(2) For the purpose of this subsection, employment on a part-time basis shall not be considered to include employment on a temporary or intermittent basis.
(h)(1) The annuity of an employee or Member retiring under section 8412(g) or 8413(b) is computed in accordance with applicable provisions of this section, except that the annuity shall be reduced by five-twelfths of 1 percent for each full month by which the commencement date of the annuity precedes the sixty-second anniversary of the birth of the employee or Member.
(2)(A) Paragraph (1) does not apply in the case of an employee or Member retiring under section 8412(g) or 8413(b) if the employee or Member would satisfy the age and service requirements for title to an annuity under section 8412(a), (b), (d)(1)(B), (e)(2), or (f)(2), determined as if the employee or Member had, as of the date of separation, attained the age specified in subparagraph (B).
(B) A determination under subparagraph (A) shall be based on how old the employee or Member will be as of the date on which the annuity under section 8412(g) or 8413(b) is to commence.
(i)(1) In applying subsection (a) with respect to an employee under paragraph (2), the percentage applied under such subsection shall be 1.1 percent, rather than 1 percent.
(2) This subsection applies in the case of an employee who—
(A) retires entitled to an annuity under section 8412; and
(B) at the time of the separation on which entitlement to the annuity is based, is at least 62 years of age and has completed at least 20 years of service;
but does not apply in the case of a Congressional employee, military technician (dual status), law enforcement officer, member of the Supreme Court Police, firefighter, nuclear materials courier, air traffic controller, or customs and border protection officer 1
(j) 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 8422(g), 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.
(k)(1) For purposes of this subsection, the term "physicians comparability allowance" refers to an amount described in section 8331(3)(H).
(2) Except as otherwise provided in this subsection, no part of a physicians comparability allowance shall be treated as basic pay for purposes of any computation under this section unless, before the date of the separation on which entitlement to annuity is based, the separating individual has completed at least 15 years of service as a Government physician (whether performed before, on, or after the date of the enactment of this subsection).
(3) If the condition under paragraph (2) is met, then, any amounts received by the individual in the form of a physicians comparability allowance shall (for the purposes referred to in paragraph (2)) be treated as basic pay, but only to the extent that such amounts are attributable to service performed on or after the date of the enactment of this subsection, and only to the extent of the percentage allowable, which shall be determined as follows:
If the total amount of service performed, on or after the date of the enactment of this subsection, as a Government physician is: | Then, the percentage allowable is: |
---|---|
Less than 2 years | 0 |
At least 2 but less than 4 years | 25 |
At least 4 but less than 6 years | 50 |
At least 6 but less than 8 years | 75 |
At least 8 years | 100. |
(4) Notwithstanding any other provision of this subsection, 100 percent of all amounts received as a physicians comparability allowance shall, to the extent attributable to service performed on or after the date of the enactment of this subsection, be treated as basic pay (without regard to any of the preceding provisions of this subsection) for purposes of computing—
(A) an annuity under section 8452; and
(B) a survivor annuity under subchapter IV, if based on the service of an individual who dies before separating from service.
(l) The annuity of an employee retiring under this chapter with service credited under section 8411(b)(6) shall be reduced by the amount necessary to ensure that the present value of the annuity payable to the employee under this subchapter is actuarially equivalent to the present value of the annuity that would be payable to the employee under this subchapter if it were computed—
(1) on the basis of service that does not include service credited under section 8411(b)(6); and
(2) assuming the employee separated from service on the actual date of the separation of the employee.
The amount of the reduction shall be computed under regulations prescribed by the Office of Personnel Management for the administration of this subsection.
(m)(1) In computing an annuity under this subchapter, the total service of an employee who retires from the position of a registered nurse with the Veterans Health Administration on an immediate annuity, or dies while employed in that position leaving any survivor entitled to an annuity, includes the days of unused sick leave to the credit of that employee under a formal leave system, except that such days shall not be counted in determining average pay or annuity eligibility under this subchapter.
(2)(A) Except as provided in paragraph (1), in computing an annuity under this subchapter, the total service of an employee who retires on an immediate annuity or who dies leaving a survivor or survivors entitled to annuity includes the applicable percentage of the days of unused sick leave to his credit under a formal leave system and for which days the employee has not received payment, except that these days will not be counted in determining average pay or annuity eligibility under this subchapter. For purposes of this subsection, in the case of any such employee who is excepted from subchapter I of
(B) For purposes of subparagraph (A), the term "applicable percentage" means—
(i) 50 percent in the case of an annuity, entitlement to which is based on a death or other separation occurring during the period beginning on the date of enactment of this paragraph and ending on December 31, 2013; and
(ii) 100 percent in the case of an annuity, entitlement to which is based on a death or other separation occurring after December 31, 2013.
(n) In the case of any annuity computation under this section that includes, in the aggregate, at least 2 months of credit under section 8411(d) for any period while receiving benefits under subchapter I of
(Added
Applicability of Amendment
For provisions relating to delayed applicability of amendment by
Editorial Notes
References in Text
The date of the enactment of this subsection, referred to in subsec. (k), is the date of enactment of
The date of enactment of this paragraph, referred to in subsec. (m)(2)(B)(i), is the date of enactment of
Amendments
2022—Subsec. (e).
Subsec. (h)(2)(A).
2016—Subsec. (f).
2013—Subsec. (d).
2012—Subsecs. (d) to (n).
2009—Subsecs. (k) to (m).
2007—Subsec. (h)(2).
2003—Subsecs. (e) to (h).
Subsec. (i).
Subsec. (j).
Subsec. (k).
Subsec.(l).
2002—Subsec. (i).
2001—Subsec. (j).
2000—Subsec. (g).
Subsec. (i).
1999—Subsec. (g)(2).
1998—Subsec. (g)(2).
1997—Subsec. (h).
1994—Subsec. (d).
1986—Subsec. (f)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 2016 Amendment
Effective Date of 2009 Amendment
Effective Date of 2007 Amendment; Transition Rules
Amendment by
Effective Date of 2003 Amendments
Amendment by
Effective Date of 2002 Amendment
Effective Date of 2001 Amendment
Amendment by
Effective Date of 2000 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1997 Amendment
Amendment by
Procedures Required
"(1) notification to each annuitant affected by the amendments made by this section [amending this section];
"(2) recalculation of the benefits of affected annuitants;
"(3) an adjustment to applicable monthly benefit amounts pursuant to such recalculation, to begin as soon as is practicable; and
"(4) a lump-sum payment to each affected annuitant equal to the additional total benefit amount that such annuitant would have received had the amendment made by subsection (a) been in effect on December 12, 2003."
Clarification Relating to Consideration of Pre-1987 Service as an Air Traffic Controller for Retirement Purposes
See section 2 of
1 So in original. Probably should be followed by a period.
§8416. Survivor reduction for a current spouse
(a)(1) If an employee or Member is married at the time of retiring under this chapter, the reduction described in section 8419(a) shall be made unless the employee or Member and the spouse jointly waive, by written election, any right which the spouse may have to a survivor annuity under section 8442 based on the service of such employee or Member. A waiver under this paragraph shall be filed with the Office under procedures prescribed by the Office.
(2) Notwithstanding paragraph (1), an employee or Member who is married at the time of retiring under this chapter may waive the annuity for a surviving spouse without the spouse's consent if the employee or Member establishes to the satisfaction of the Office (in accordance with regulations prescribed by the Office)—
(A) that the spouse's whereabouts cannot be determined; or
(B) that, due to exceptional circumstances, requiring the employee or Member to seek the spouse's consent would otherwise be inappropriate.
(3) Except as provided in subsection (d), a waiver made under this subsection shall be irrevocable.
(b)(1) 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's 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 8445 (or of the last such surviving former spouse, if there was more than one), a reduction in the employee's or Member's annuity under section 8419(a) for the purpose of providing an annuity for such employee's or Member's spouse in the event such spouse survives the employee or Member.
(2) The 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.
(3) An election to provide a survivor annuity to an individual under this subsection—
(A) shall prospectively void any election made by the employee or Member under section 8420 with respect to such individual; or
(B) shall, if an election was made by the employee or Member under section 8420 with respect to a different individual, prospectively void such election if appropriate written application is made by such employee or Member at the time of making the election under this subsection.
(4) Any election under this subsection made by an employee or Member on behalf of an individual after the retirement of such employee or Member shall not be effective if—
(A) the employee or Member was married to such individual at the time of retirement; and
(B) the annuity rights of such individual based on the service of such employee or Member were then waived under subsection (a).
(c)(1) An employee or Member who is unmarried at the time of retiring under this chapter and who later marries may irrevocably elect, in a signed writing received by 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 8445 (or of the last such surviving former spouse, if there was more than one), a reduction in the current annuity of the retired employee or Member, in accordance with section 8419(a).
(2) The election and reduction shall take effect the first day of the first month beginning 9 months after the date of marriage. Any such election to provide a survivor annuity for an individual—
(A) shall prospectively void any election made by the employee or Member under section 8420 with respect to such individual; or
(B) shall, if an election was made by the employee or Member under section 8420 with respect to a different individual, prospectively void such election if appropriate written application is made by such employee or Member at the time of making the election under this subsection.
(d)(1) An employee or Member—
(A) who is married on the date of retiring under this chapter, and
(B) with respect to whose spouse a waiver under subsection (a) has been made,
may, during the 18-month period beginning on such date, elect to have a reduction made under section 8419 in order to provide a survivor annuity under section 8442 for such spouse.
(2)(A) An election under this subsection shall not be effective unless the amount described in subparagraph (B) is deposited into the Fund before the expiration of the 18-month period referred to in paragraph (1).
(B) The amount to be deposited under this subparagraph is equal to the sum of—
(i) the difference (for the period between the date on which the annuity of the former employee or Member commences and the date on which reductions pursuant to the election under this subsection commence) between the amount paid to the former employee or Member from the Fund under this chapter and the amount which would have been paid if such election had been made at the time of retirement; and
(ii) the costs associated with providing for the election under this subsection.
The amount to be deposited under clause (i) shall include interest, computed at the rate of 6 percent a year.
(3) An annuity which is reduced pursuant to an election by a former employee or Member under this subsection shall be reduced by the same percentage as was in effect under section 8419 as of the date of the employee's or Member's retirement.
(4) Rights and obligations under this chapter resulting from an election under this subsection shall be the same as the rights and obligations which would have resulted had the election been made at the time of retirement.
(5) The Office shall inform each employee and Member who is eligible to make an election under this subsection of the right to make such election and the procedures and deadlines applicable in making any such election.
(Added
§8417. Survivor reduction for a former spouse
(a) If an employee or Member has a former spouse who is entitled to a survivor annuity as provided in section 8445, the reduction described in section 8419(a) shall be made.
(b)(1) An employee or Member who has a former spouse may elect, under procedures prescribed by the Office, a reduction in the annuity of the employee or Member under section 8419(a) in order to provide a survivor annuity for such former spouse under section 8445.
(2) An election under this subsection shall be made at the time of retirement or, if the marriage is dissolved after the date of retirement, within 2 years after the date on which the marriage of the former spouse to the employee or Member is so dissolved.
(3) An election under this subsection—
(A) shall not be effective to the extent that it—
(i) conflicts with—
(I) any court order or decree referred to in section 8445(a) which was issued before the date of such election; or
(II) any agreement referred to in such section 8445(a) which was entered into before such date; or
(ii) would cause the total of survivor annuities payable under sections 8442 and 8445, respectively, based on the service of the employee or Member to exceed the amount which would be payable to a widow or widower of such employee or Member under such section 8442 (determined without regard to any reduction to provide for an annuity under such section 8445); and
(B) shall not be effective, in the case of an employee or Member who is then married, unless it is made with the spouse's written consent.
The Office shall by regulation provide that subparagraph (B) may be waived for either of the reasons set forth in section 8416(a)(2).
(Added
§8418. Survivor elections; deposit; offsets
(a)(1) An individual who makes an election under subsection (b) or (c) of section 8416 or section 8417(b) which is required to be made within 2 years after the date of a prescribed event shall deposit into the Fund an amount determined by the Office (as nearly as may be administratively feasible) to reflect the amount by which the annuity of such individual would have been reduced if the election had been in effect since the date of retirement (or, if later, and in the case of an election under such section 8416(b), since the date the previous reduction in the annuity of such individual was terminated under paragraph (1) or (2) of section 8419(b)), plus interest.
(2) Interest under paragraph (1) shall be computed at the rate of 6 percent a year.
(b) The Office shall, by regulation, provide for payment of the deposit required under subsection (a) 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 subsection (a), except that the total reductions in the annuity of an employee or Member to pay deposits required by this section shall not exceed 25 percent of the annuity computed under section 8415 or section 8452, including adjustments under section 8462. The reduction required by this subsection, which shall be effective at the same time as the election under section 8416(b) and (c) or section 8417(b), shall be permanent and unaffected by any future termination of the marriage or the entitlement of the former spouse. Such reduction shall be independent of and in addition to the reduction required under section 8416(b) and (c) or section 8417(b).
(c) Subsections (a) and (b) shall not apply if—
(1) the employee or Member makes an election under section 8416(b) or (c) after having made an election under section 8420; and
(2) the election under such section 8420 becomes void under subsection (b)(3) or (c)(2) of such section 8416.
(d) The Office shall prescribe regulations under which the survivor of an employee or Member may make a deposit under this section.
(Added
Editorial Notes
Amendments
1993—Subsec. (a)(1).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1993 Amendment
Amendment by
§8419. Survivor reductions; computation
(a)(1) Except as provided in paragraph (2), the annuity of an annuitant computed under section 8415, or under section 8452 (including subsection (a)(2) of such section, if applicable) or one-half 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, shall be reduced by 10 percent if a survivor annuity, or a combination of survivor annuities, under section 8442 or 8445 (or both) are to be provided for.
(2)(A) If no survivor annuity under section 8442 is to be provided for, but one or more survivor annuities under section 8445 involving a total of less than the entirety of the amount referred to in subsection (b)(2) of such section are to be provided for, the annuity of the annuitant involved (as computed under section 8415, or under section 8452 (including subsection (a)(2) of such section, if applicable)) or one-half 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, shall be reduced by an appropriate percentage determined under subparagraph (B).
(B) The Office shall prescribe regulations under which an appropriate reduction under this paragraph, not to exceed a total of 10 percent, shall be made.
(b)(1) 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—
(A) after the death of the spouse; or
(B) 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 8445.
(2) 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 appropriate reductions under subsection (a) if the retired employee or Member has one or more of the following:
(A) another former spouse who is entitled to a survivor annuity under section 8445;
(B) 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 waived under section 8416(a) (or, if waived, with respect to whom an election under section 8416(d) has been made); or
(C) a current spouse whom the employee or Member married after retirement and with respect to whom an election has been made under subsection (b) or (c) of section 8416.
(Added
Editorial Notes
Amendments
1988—Subsec. (a)(1), (2)(A).
§8420. Insurable interest reductions
(a)(1) At the time of retiring under section 8412, 8413, or 8414, an employee or Member who is found to be in good health by the Office may elect to have such employee's or Member's annuity (as computed under section 8415) reduced under paragraph (2) in order to provide an annuity under section 8444 for an individual having an insurable interest in the employee or Member. Such individual shall be designated by the employee or Member in writing.
(2) 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, except that the total reduction may not exceed 40 percent.
(3) An annuity which is reduced under this subsection shall, effective the first day of the month following the death of the individual named under this subsection, be recomputed and paid as if the annuity had not been so reduced.
(b)(1) In the case of a married employee or Member, an election under this section 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 section 8416(a).
(2) Paragraph (1) does not apply in the case of an employee or Member if such employee or Member has a former spouse who would become entitled to an annuity under section 8445 as a survivor of such employee or Member.
(Added
§8420a. Alternative forms of annuities
(a) The Office 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, elect annuity benefits under this section instead of any other benefits under this subchapter, and any benefits under subchapter IV of this chapter, based on the service of the employee or Member.
(b) Subject to subsection (c), the Office shall by regulation provide for such alternative forms of annuities as the Office considers appropriate, except that among the alternatives offered shall be—
(1) an alternative which provides for—
(A) payment of the lump-sum credit (excluding interest) to the employee or Member; and
(B) payment of an annuity to the employee or Member for life; and
(2) in the case of an employee or Member who is married at the time of retirement, an alternative which provides for—
(A) payment of the lump-sum credit (excluding interest) to the employee or Member; and
(B) payment of an annuity to the employee or Member for life, with a survivor annuity payable for the life of a surviving spouse.
(c) Each alternative provided for under subsection (b) shall, to the extent practicable, be designed such that the present value of the benefits provided under such alternative (including any lump-sum credit) is actuarially equivalent to the sum of—
(1) the present value of the annuity which would otherwise be provided under this subchapter, as computed under section 8415; and
(2) the present value of the annuity supplement which would otherwise be provided (if any) under section 8421.
(d) An employee or Member who, at the time of retiring under this subchapter—
(1) is married, shall be ineligible to make an election under this section unless a waiver is made under section 8416(a); or
(2) has a former spouse, shall be ineligible to make an election under this section if the former spouse is entitled to benefits under section 8445 or 8467 (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 8416(d), subject to the deposit requirement thereunder.
(Added
Editorial Notes
Amendments
1993—Subsec. (a).
Subsec. (f).
1990—Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 1993 Amendment
Amendment by
Applicability of Sections 8343a(f) and 8420a(f) to Individuals Called to or Performing Duty in Connection With Operation Desert Shield
For provisions relating to application of subsec. (f) of this section to certain members of Armed Forces who were called or ordered to active duty in connection with Operation Desert Shield and to certain employees of Department of Defense who are certified to have performed duties essential for support of Operation Desert Shield, see section 7001(a)(4) of
Partial Deferred Payment of Lump-Sum Credit for Certain Individuals Electing Alternative Forms of Annuities
For provisions relating to deferred payment of lump-sum credit for certain individuals electing alternative forms of annuities, see notes set out under
§8421. Annuity supplement
(a)(1) Subject to paragraph (3), an individual shall, if and while entitled to an annuity under subsection (a), (b), (d)(1), or (e) of section 8412, or under section 8414(c), also be entitled to an annuity supplement under this section.
(2) Subject to paragraph (3), an individual shall, if and while entitled to an annuity under section 8412(f), or under subsection (a) or (b) of section 8414, also be entitled to an annuity supplement under this section if such individual is at least the applicable minimum retirement age under section 8412(h).
(3)(A) An individual whose entitlement to an annuity under section 8412 or 8414 does not commence before age 62 is not entitled to an annuity supplement under this section.
(B) An individual entitled to an annuity supplement under this section ceases to be so entitled after the last day of the month preceding the first month for which such individual would, on proper application, be entitled to old-age insurance benefits under title II of the Social Security Act, but not later than the last day of the month in which such individual attains age 62.
(b)(1) The amount of the annuity supplement of an annuitant under this section for any month shall be equal to the product of—
(A) an amount determined under paragraph (2), multiplied by
(B) a fraction, as described in paragraph (3).
(2) The amount under this paragraph for an annuitant is an amount equal to the old-age insurance benefit which would be payable to such annuitant under title II of the Social Security Act (without regard to sections 203, 215(a)(7), and 215(d)(5) of such Act) upon attaining age 62 and filing application therefor, determined as if the annuitant had attained such age and filed application therefor, and were a fully insured individual (as defined in section 214(a) of such Act), on January 1 of the year in which such annuitant's entitlement to any payment under this section commences, except that the reduction of such old-age insurance benefit under section 202(q) of such Act shall be the maximum applicable for an individual born in the same year as the annuitant. In computing the primary insurance amount under section 215 of such Act for purposes of this paragraph, the number of elapsed years (referred to in section 215(b)(2)(B)(iii) of such Act and used to compute the number of benefit computation years) shall not include years beginning with the year in which such annuitant's entitlement to any payment under this section commences, and—
(A) only basic pay for service performed (if any) shall be taken into account in computing the total wages and self-employment income of the annuitant for a benefit computation year;
(B) for a benefit computation year which commences after the date of the separation with respect to which entitlement to the annuitant's annuity under this subchapter is based and before the date as of which such annuitant is treated, under the preceding sentence, to have attained age 62, the total wages and self-employment income of such annuitant for such year shall be deemed to be zero; and
(C) for a benefit computation year after age 21 which precedes the separation referred to in subparagraph (B), and during which the individual did not perform a full year of service, the total wages and self-employment income of such annuitant for such year shall be deemed to have been an amount equal to the product of—
(i) the average total wages of all workers for that year, multiplied by
(ii) a fraction—
(I) the numerator of which is the total basic pay of the individual for service performed in the first year thereafter in which such individual performed a full year of service; and
(II) the denominator of which is the average total wages of all workers for the year referred to in subclause (I).
(3) The fraction under this paragraph for any annuitant is a fraction—
(A) the numerator of which is the annuitant's total years of service (rounding a fraction to the nearest whole number, with ½ being rounded to the next higher number), not to exceed the number under subparagraph (B); and
(B) the denominator of which is 40.
(4) For the purpose of this subsection—
(A) the term "benefit computation year" has the meaning provided in section 215(b)(2)(B)(i) of the Social Security Act;
(B) the term "average total wages of all workers", for a year, means the average of the total wages, as defined and computed under section 215(b)(3)(A)(ii)(I) of the Social Security Act for such year; and
(C) the term "service" does not include military service.
(c) An amount under this section shall, for purposes of section 8467, be treated in the same way as an amount computed under section 8415.
(Added
Applicability of Amendment
For provisions relating to delayed applicability of amendment by
Editorial Notes
References in Text
The Social Security Act, referred to in subsecs. (a)(3)(B) and (b)(2), (4)(A), (B), is act Aug. 14, 1935, ch. 531,
Amendments
2022—Subsec. (a)(1).
2002—Subsec. (a)(2).
1992—Subsec. (a)(2).
1989—Subsec. (a)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 2002 Amendment
Amendment by
Effective Date of 1989 Amendment
Amendment by
§8421a. Reductions on account of earnings from work performed while entitled to an annuity supplement
(a) Except as provided in subsection (c), the amount of the annuity supplement to which an individual is entitled under section 8421 for any month (determined without regard to subsection (c) of such section) shall be reduced by the amount of any excess earnings of such individual which are required to be charged to such supplement for such month, as determined under subsection (b).
(b) The amount of an individual's excess earnings shall be charged to months as follows:
(1)(A) There shall be charged to each month of a year under subsection (a) an amount equal to the individual's excess earnings (as determined under paragraph (2) with respect to such year), divided by the number of the individual's supplement entitlement months for such year (as determined under paragraph (3)).
(B) Notwithstanding subparagraph (A), the amount charged to a month under subsection (a) may not exceed the amount of the annuity supplement to which the individual is entitled under section 8421 for such month (determined without regard to subsection (c) of such section).
(2) The excess earnings based on which reductions under subsection (a) shall be made with respect to an individual in a year—
(A) shall be equal to 50 percent of so much of such individual's earnings for the immediately preceding year as exceeds the applicable exempt amount for such preceding year; but
(B) may not exceed the total amount of the annuity supplement payments to which such individual was entitled for such preceding year under section 8421 (determined without regard to subsection (c) of such section, and without regard to this section).
(3)(A) Subject to subparagraph (B), the number of an individual's supplement entitlement months for a year shall be 12.
(B) The number determined under subparagraph (A) shall be reduced so as not to include any month after which such individual ceases to be entitled to an annuity supplement by reason of section 8421(a)(3)(B), relating to cessation of entitlement upon attaining age 62.
(4)(A) For purposes of this section, and except as provided in subparagraph (B), the "earnings" and the "applicable exempt amount" of an individual shall be determined in a manner consistent with applicable provisions of section 203 of the Social Security Act.
(B) For purposes of this section—
(i) in determining the excess earnings of any individual, only earnings attributable to periods during which such individual was entitled to an annuity supplement under section 8421 shall be considered; and
(ii) any earnings attributable to a period before attaining the applicable retirement age under section 8412(h) shall not be considered in determining the excess earnings of an individual who retires under section 8412(d)(1) or (e), or section 8414(c).
(5) Notwithstanding paragraphs (1) through (4), the reduction required by subsection (a) shall be effective with respect to the annuity supplement payable for each month in the 12-month period beginning on the first day of the seventh month after the end of the calendar year in which the excess earnings were earned.
(c) This section shall not apply to an individual described in section 8412(e) during any period in which the individual, after separating from the service as described in that section, is employed as an—
(1) air traffic control instructor, or supervisor thereof, under contract with the Federal Aviation Administration, including an instructor or supervisor working at an on-site facility (such as an airport); or
(2) air traffic controller pursuant to a contract made with the Secretary of Transportation under
(d) The Office shall prescribe regulations under which this section shall be applied in the case of a reemployed annuitant.
(Added
Applicability of Amendment
For provisions relating to delayed applicability of amendment by
Editorial Notes
References in Text
Section 203 of the Social Security Act, referred to in subsec. (b)(4)(A), is classified to
Amendments
2022—Subsec. (b)(4)(B)(ii).
Subsec. (c).
2019—Subsec. (c).
2016—Subsec. (a).
Subsecs. (c), (d).
2000—Subsec. (b)(5).
1986—Subsecs. (c), (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 2000 Amendment
§8422. Deductions from pay; contributions for other service; deposits
(a)(1) The employing agency shall deduct and withhold from basic pay of each employee and Member a percentage of basic pay determined in accordance with paragraph (2).
(2) The percentage to be deducted and withheld from basic pay for any pay period shall be equal to—
(A) the applicable percentage under paragraph (3), minus
(B) the percentage then in effect under section 3101(a) of the Internal Revenue Code of 1986 (relating to rate of tax for old-age, survivors, and disability insurance).
(3)(A) The applicable percentage under this paragraph for civilian service by employees or Members other than revised annuity employees or further revised annuity employees shall be as follows:
Employee | 7 | January 1, 1987, 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. | |
Congressional employee | 7.5 | January 1, 1987, 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 | 7.5 | January 1, 1987, to December 31, 1998. |
7.75 | January 1, 1999, to December 31, 1999. | |
7.9 | January 1, 2000, to December 31, 2000. | |
8 | January 1, 2001, to December 31, 2002. | |
7.5 | After December 31, 2002. | |
Law enforcement officer, firefighter, member of the Capitol Police, member of the Supreme Court Police, or air traffic controller | 7.5 7.75 7.9 7.5 |
January 1, 1987, to December 31, 1998. January 1, 1999, to December 31, 1999. January 1, 2000, to December 31, 2000. After December 31, 2000. |
Nuclear materials courier | 7 | January 1, 1987, 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. |
(B) The applicable percentage under this paragraph for civilian service by revised annuity employees shall be as follows:
Employee | 9.3 | After December 31, 2012. |
Congressional employee | 9.3 | After December 31, 2012. |
Member | 9.3 | After December 31, 2012. |
Law enforcement officer, firefighter, member of the Capitol Police, member of the Supreme Court Police, or air traffic controller | 9.8 | After December 31, 2012. |
Nuclear materials courier | 9.8 | After December 31, 2012. |
Customs and border protection officer | 9.8 | After December 31, 2012. |
(C) The applicable percentage under this paragraph for civilian service by further revised annuity employees shall be as follows:
Employee | 10.6 | After December 31, 2013. |
Congressional employee | 10.6 | After December 31, 2013. |
Member | 10.6 | After December 31, 2013. |
Law enforcement officer, firefighter, member of the Capitol Police, member of the Supreme Court Police, or air traffic controller | 11.1 | After December 31, 2013. |
Nuclear materials courier | 11.1 | After December 31, 2013. |
Customs and border protection officer | 11.1 | After December 31, 2013. |
(b) Each employee or Member is deemed to consent and agree to the deductions under subsection (a). Notwithstanding any law or regulation affecting the pay of an employee or Member, payment less such 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 any benefits under this subchapter, or under subchapter IV or V of this chapter, based on the service of the employee or Member.
(c) The amounts deducted and withheld under this section 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, Member, or survivor also shall be credited to the Fund.
(d)(1) Under such regulations as the Office may prescribe, amounts deducted under subsection (a) shall be entered on individual retirement records.
(2) Deposit may not be required for days of unused sick leave credited under paragraph (1) or (2) of section 8415(m).
(e)(1)(A) Except as provided in subparagraph (B), and subject to paragraph (6), 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, or subchapter V of this chapter, 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 3 percent of the amount of the basic pay paid under
(B) In any case where military service interrupts creditable civilian service under this subchapter and reemployment pursuant to
(2) Any deposit made under paragraph (1) more than two years after the later of—
(A) January 1, 1987; or
(B) the date on which the employee or Member making the deposit first becomes an employee or Member following the period of military service for which such deposit is due,
shall include interest on such amount computed and compounded annually beginning on the date of the expiration of the two-year period. The interest rate that is applicable in computing interest in any year under this paragraph shall be equal to the interest rate that is applicable for such year under section 8334(e).
(3) Any payment received by an agency, the Secretary of the Senate, or the Chief Administrative Officer of the House of Representatives under this subsection shall be immediately remitted to the Office for deposit in the Treasury of the United States to the credit of the Fund.
(4) The Secretary of Defense, the Secretary of Transportation, the Secretary of Commerce, or the Secretary of Health and Human Services, as appropriate, shall furnish such information to the Office as the Office may determine to be necessary for the administration of this subsection.
(5) For the purpose of survivor annuities, deposits authorized by this subsection may also be made by a survivor of an employee or Member.
(6) The percentage of basic pay under
(A) January 1, 1999, through December 31, 1999, shall be 3.25 percent; and
(B) January 1, 2000, through December 31, 2000, shall be 3.4 percent.
(7)(A) In calculating and processing the deposit under paragraph (1) with respect to an employee, Member, or annuitant, if the employing agency of such employee, Member, or annuitant makes an administrative error, such employing agency may pay, on behalf of the employee, Member, or annuitant, any additional interest assessed due to the administrative error.
(B) For purposes of subparagraph (A), the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives, as appropriate, shall be considered the employing agency of a Member or Congressional employee.
(C) The Director of the Office of Personnel Management shall issue such regulations as are necessary to carry out this paragraph.
(f)(1) Each employee or Member who has performed service as a volunteer or volunteer leader under part A of title VIII of the Economic Opportunity Act of 1964, as a full-time volunteer enrolled in a program of at least 1 year's duration under part A, B,1 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, or subchapter V of this chapter, is based may pay, in accordance with such regulations as the Office of Personnel Management shall issue, an amount equal to 3 percent of the readjustment allowance paid to the employee or Member under title VIII of the Economic Opportunity Service 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,1 or C of title I of the Domestic Volunteer Service Act of 1973, for each period of service as such a volunteer or volunteer leader. This paragraph shall be subject to paragraph (4).
(2) Any deposit made under paragraph (1) more than 2 years after the later of—
(A) October 1, 1993, or
(B) the date on which the employee or Member making the deposit first becomes an employee or Member,
shall include interest on such amount computed and compounded annually beginning on the date of the expiration of the 2-year period. The interest rate that is applicable in computing interest in any year under this paragraph shall be equal to the interest rate that is applicable for such year under section 8334(e).
(3) The Director of the Peace Corps and the Chief Executive Officer of the Corporation for National and Community Service shall furnish such information to the Office of Personnel Management as the Office may determine to be necessary for the administration of this subsection.
(4) The percentage of the readjustment allowance or stipend (as the case may be) payable under paragraph (1), with respect to any period of volunteer service performed during—
(A) January 1, 1999, through December 31, 1999, shall be 3.25 percent; and
(B) January 1, 2000, through December 31, 2000, shall be 3.4 percent.
(5)(A) In calculating and processing the deposit under paragraph (1) with respect to an employee, Member, or annuitant, if an employing agency of such employee, Member, or annuitant makes an administrative error that causes additional interest assessed to accrue on the deposit, the employee, Member, or annuitant's employing agency may pay, on behalf of the employee, Member, or annuitant, any additional interest assessed due to the administrative error.
(B) In calculating and processing the deposit under paragraph (1) with respect to an employee, Member, or annuitant, if the Office of Personnel Management makes an administrative error that causes additional interest assessed to accrue on the deposit, the Office of Personnel Management may pay, on behalf of the employee, Member, or annuitant, any additional interest assessed due to the administrative error.
(C) For purposes of subparagraph (A), the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives, as appropriate, shall be considered the employing agency of a Member or congressional employee.
(D) The Director of the Office of Personnel Management shall issue such regulations as are necessary to carry out this paragraph.
(g) 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 section 8334(e).
(h) No deposit may be made with respect to service credited under section 8411(b)(6).
(i)(1) Each employee or Member who has received a refund of retirement deductions under this or any other retirement system established for employees of the Government covering service for which such employee or Member may be allowed credit under this chapter may deposit the amount received, with interest. Credit may not be allowed for the service covered by the refund until the deposit is made.
(2) Interest under this subsection shall be computed in accordance with paragraphs (2) and (3) of section 8334(e) and regulations prescribed by the Office. The option under the third sentence of section 8334(e)(2) to make a deposit in one or more installments shall apply to deposits under this subsection.
(3) For the purpose of survivor annuities, deposits authorized by this subsection may also be made by a survivor of an employee or Member.
(Added
Editorial Notes
References in Text
Section 3101(a) of the Internal Revenue Code of 1986, referred to in subsec. (a)(2)(B), is classified to
The Economic Opportunity Act of 1964, referred to in subsec. (f)(1), is
The Domestic Volunteer Service Act of 1973, referred to in subsec. (f)(1), is
The Peace Corps Act, referred to in subsec. (f)(1), is
Amendments
2018—Subsec. (e)(7).
Subsec. (f)(5).
2013—Subsec. (a)(3)(A).
Subsec. (a)(3)(C).
2012—Subsec. (a)(3).
Subsec. (d)(2).
2009—
Subsec. (c).
Subsec. (d)(2).
Subsec. (i).
2007—Subsec. (a)(3).
2003—Subsec. (d)(2).
2002—Subsec. (d).
2001—
Subsec. (h).
2000—Subsec. (a)(3).
Subsec. (e)(6).
Subsec. (f)(4).
1999—Subsec. (a)(3).
1998—Subsec. (a)(3).
1997—Subsec. (a)(2), (3).
"(A) in the case of an employee (other than a law enforcement officer, firefighter, air traffic controller, or Congressional employee) a percentage equal to—
"(i) 7 percent, minus
"(ii) the percentage then in effect under section 3101(a) of the Internal Revenue Code of 1986 (relating to rate of tax for old-age, survivors, and disability insurance); and
"(B) in the case of a Member, law enforcement officer, firefighter, air traffic controller, or Congressional employee, a percentage equal to—
"(i) 7½ percent, minus
"(ii) the same percentage as would apply in the case of an employee under subparagraph (A)(ii)."
Subsec. (e)(1)(A).
Subsec. (e)(6).
Subsec. (f)(1).
Subsec. (f)(4).
Subsec. (g).
1996—Subsec. (c).
Subsec. (e)(1)(A), (3).
1994—Subsec. (a)(2)(A)(ii).
Subsec. (e)(1).
Subsec. (e)(2)(B).
1993—Subsec. (f).
1988—Subsec. (e)(5).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by section 1901(b) of
Effective Date of 2007 Amendment; Transition Rules
Amendment by
Effective Date of 2003 Amendments
Amendment by
Amendment by
Effective Date of 2002 Amendment
Amendment by
Effective Date of 2001 Amendment
Amendment by
Effective Date of 2000 Amendments
Amendment by
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1997 Amendments
Amendment by
Amendment by
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Authorization of Payments
Payments from the Office of Personnel Management authorized by section 3(b) of
No Reduction in Agency Contributions
1 See References in Text note below.
§8423. Government contributions
(a)(1) Each employing agency having any employees or Members subject to section 8422(a) shall contribute to the Fund an amount equal to the sum of—
(A) the product of—
(i) the normal-cost percentage, as determined for employees (other than employees covered by subparagraph (B)), multiplied by
(ii) the aggregate amount of basic pay payable by the agency, for the period involved, to employees (under clause (i)) who are within such agency; and
(B) the product of—
(i) the normal-cost percentage, as determined for Members, Congressional employees (including a separate normal-cost percentage for Congressional employees that are members of the Capitol Police covered under subsection (d) of section 8412 and subsection (c) of section 8425), law enforcement officers, members of the Supreme Court Police, firefighters, nuclear materials couriers, customs and border protection officers, air traffic controllers, military reserve technicians, and employees under sections 302 and 303 of the Central Intelligence Agency Retirement Act, multiplied by
(ii) the aggregate amount of basic pay payable by the agency, for the period involved, to employees and Members (under clause (i)) who are within such agency.
(2)(A) In determining any normal-cost percentage to be applied under this subsection, amounts provided for under section 8422 shall be taken into account.
(B)(i) Subject to clauses (ii) and (iii), for purposes of any period in any year beginning after December 31, 2013, the normal-cost percentage under this subsection shall be determined and applied as if section 401(b) of the Bipartisan Budget Act of 2013 had not been enacted.
(ii) Any contributions under this subsection in excess of the amounts which (but for clause (i)) would otherwise have been payable shall be applied toward reducing the unfunded liability of the Civil Service Retirement System.
(iii) After the unfunded liability of the Civil Service Retirement System has been eliminated, as determined by the Office, Government contributions under this subsection shall be determined and made disregarding this subparagraph.
(iv) The preceding provisions of this subparagraph shall be disregarded for purposes of determining the contributions payable by the United States Postal Service and the Postal Regulatory Commission.
(3) Contributions under this subsection shall be paid—
(A) in the case of law enforcement officers, members of the Supreme Court Police, firefighters, nuclear materials couriers, customs and border protection officers, air traffic controllers, military reserve technicians, and other employees, from the appropriation or fund used to pay such law enforcement officers, members of the Supreme Court Police, firefighters, nuclear materials couriers, customs and border protection officers, air traffic controllers, military reserve technicians, or other employees, respectively;
(B) in the case of elected officials, from an appropriation or fund available for payment of other salaries of the same office or establishment; and
(C) in the case of employees of the legislative branch paid by the Chief Administrative Officer of the House of Representatives, from the applicable accounts of the House of Representatives.
(4) A contribution to the Fund under this subsection shall be deposited under such procedures as the Comptroller General of the United States may prescribe.
(b)(1) The Office shall compute—
(A) the amount of the supplemental liability of the Fund with respect to individuals other than those to whom subparagraph (B) relates, and
(B) the amount of the supplemental liability of the Fund with respect to current or former employees of the United States Postal Service (and the Postal Regulatory Commission) and their survivors;
as of the close of each fiscal year beginning after September 30, 1987.
(2) The amount of any supplemental liability computed under paragraph (1)(A) or (1)(B) shall be amortized in 30 equal annual installments, with interest computed at the rate used in the most recent valuation of the System.
(3) At the end of each fiscal year, the Office shall notify—
(A) the Secretary of the Treasury of the amount of the installment computed under this subsection for such year with respect to individuals under paragraph (1)(A); and
(B) the Postmaster General of the United States of the amount of the installment computed under this subsection for such year with respect to individuals under paragraph (1)(B).
(4)(A) Before closing the accounts for a fiscal year, the Secretary of the Treasury shall credit to the Fund, as a Government contribution, out of any money in the Treasury of the United States not otherwise appropriated, the amount under paragraph (3)(A) for such year.
(B) Upon receiving notification under paragraph (3)(B), the United States Postal Service shall pay the amount specified in such notification to the Fund.
(5) For the purpose of carrying out paragraph (1) with respect to any fiscal year, the Office may—
(A) require the Board of Actuaries of the Civil Service Retirement System to make actuarial determinations and valuations, make recommendations, and maintain records in the same manner as provided in section 8347(f); and
(B) use the latest actuarial determinations and valuations made by such Board of Actuaries.
(c) Under regulations prescribed by the Office, the head of an agency may request reconsideration of any amount determined to be payable with respect to such agency under subsection (a) or (b). Any such request shall be referred to the Board of Actuaries of the Civil Service Retirement System. The Board of Actuaries shall review the computations of the Office and may make any adjustment with respect to any such amount which the Board determines appropriate. A determination by the Board of Actuaries under this subsection shall be final.
(Added
Editorial Notes
References in Text
Sections 302 and 303 of the Central Intelligence Agency Retirement Act, referred to in subsec. (a)(1)(B)(i), are classified to sections 2152 and 2153, respectively, of Title 50, War and National Defense.
Section 401(b) of the Bipartisan Budget Act of 2013, referred to in subsec. (a)(2)(B)(i), is section 401(b) of div. A of
Amendments
2019—Subsec. (a)(1)(B)(i).
2013—Subsec. (a)(2).
2007—Subsec. (a)(1)(B)(i), (3)(A).
2006—Subsec. (b)(1)(B).
2000—Subsec. (a).
1998—Subsec. (a)(1)(B)(i), (3)(A).
1996—Subsec. (a)(3)(C).
1992—Subsec. (a)(1)(B)(i).
Statutory Notes and Related Subsidiaries
Effective Date of 2007 Amendment; Transition Rules
Amendment by
Effective Date of 2000 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
Transfer of Functions
Statutory functions, duties, or authority of Chief Administrative Officer of the House of Representatives or Secretary of the Senate as disbursing officers for the Capitol Police transferred to Chief of the Capitol Police, and references in any law or resolution before Feb. 20, 2003, to funds paid or disbursed by Chief Administrative Officer of the House of Representatives and Secretary of the Senate relating to pay and allowances of Capitol Police employees deemed to refer to Chief of the Capitol Police. See
§8424. Lump-sum benefits; designation of beneficiary; order of precedence
(a) Subject to subsection (b), an employee or Member who—
(1)(A) is separated from the service for at least 31 consecutive days; or
(B) is transferred to a position in which the individual is not subject to this chapter and remains in such a position for at least 31 consecutive days;
(2) files an application with the Office for payment of the lump-sum credit;
(3) is not reemployed in a position in which the individual is subject to this chapter at the time of filing the application; and
(4) will not become eligible to receive an annuity within 31 days after filing the application;
is entitled to be paid the lump-sum credit. Except as provided in section 8420a, payment of the lump-sum credit to an employee or Member voids all annuity rights under this subchapter, and subchapters IV and V of this chapter, 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 chapter.
(b)(1)(A) Payment of the lump-sum credit under subsection (a) may be made only if the spouse, if any, and any former spouse of the employee or Member are notified of the employee or Member's application.
(B) The Office shall prescribe regulations under which the lump-sum credit shall not be paid without the consent of a spouse or former spouse of the employee or Member where the Office has received such additional information or documentation as the Office may require that—
(i) a court order bars payment of the lump-sum credit in order to preserve the court's ability to award an annuity under section 8445 or 8467; or
(ii) payment of the lump-sum credit would extinguish the entitlement of the spouse or former spouse, under a court order on file with the Office, to a survivor annuity under section 8445 or to any portion of an annuity under section 8467.
(2)(A) Notification of a spouse or former spouse under this subsection shall be made in accordance with such requirements as the Office shall by regulation prescribe.
(B) Under the regulations, the Office may provide that paragraph (1)(A) may be waived with respect to a spouse or former spouse if the employee or Member establishes to the satisfaction of the Office that the whereabouts of such spouse or former spouse cannot be determined.
(3) The Office shall prescribe regulations under which this subsection shall be applied in any case in which the Office receives two or more orders or decrees referred to in paragraph (1)(B)(i).
(c) Under regulations prescribed by the Office, an employee or Member, or a former employee or Member, may designate one or more beneficiaries under this section.
(d) Lump-sum benefits authorized by subsections (e) through (g) shall be paid to the individual or individuals 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 individual:
First, to the beneficiary or beneficiaries designated by the employee or Member in a signed and witnessed writing received in the Office before the death of such employee or Member. 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 death of the employee or Member.
For the purpose of this subsection, "child" includes a natural child and an adopted child, but does not include a stepchild.
(e) If an employee or Member, or former employee or Member, dies—
(1) without a survivor, or
(2) with a survivor or survivors and the right of all survivors under subchapter IV terminates before a claim for survivor annuity under such subchapter is filed,
the lump-sum credit shall be paid.
(f) If all annuity rights under this chapter (other than under subchapter III of this chapter) 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.
(g) If an annuitant dies, annuity accrued and unpaid shall be paid.
(h) Annuity accrued and unpaid on the termination, except by death, of the annuity of an annuitant or survivor shall be paid to that individual. Annuity accrued and unpaid on the death of a survivor 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.
Second, if there is no executor or administrator, payment may be made, after 30 days from the date of death of the survivor, to such next of kin of the survivor as the Office determines to be entitled under the laws of the domicile of the survivor at the date of death.
(Added
Editorial Notes
Amendments
2009—Subsec. (a).
2000—Subsec. (b)(1).
"(A) may be made only if any current spouse and any former spouse of the employee or Member are notified of the application by the employee or Member; and
"(B) in any case in which there is a former spouse, shall be subject to the terms of a court decree of divorce, annulment, or legal separation issued with respect to such former spouse if—
"(i) the decree expressly relates to any portion of the lump-sum credit involved; and
"(ii) payment of the lump-sum credit would affect any right or interest of the former spouse with respect to a survivor annuity under section 8445, or to any portion of an annuity under section 8467."
§8425. Mandatory separation
(a) An air traffic controller who is otherwise eligible for immediate retirement under section 8412(e) shall be separated from the service on the last day of the month in which that air traffic controller becomes 56 years of age or completes 20 years of service if then over that age. The Secretary, under such regulations as the Secretary 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 8401(35)(A).
(b)(1) A law enforcement officer, firefighter, nuclear materials courier, or customs and border protection officer who is otherwise eligible for immediate retirement under section 8412(d)(1) shall be separated from the service on the last day of the month in which that law enforcement officer, firefighter, nuclear materials courier, or customs and border protection officer 1 as the case may be, becomes 57 years of age or completes 20 years of service if then over that age. If the head of the agency judges that the public interest so requires, that agency head 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 before that date. Action to separate the employee is not effective, without the consent of the employee, until the last day of the month in which the 60-day notice expires.
(2) In the case of employees of the Federal Bureau of Investigation, the second sentence of paragraph (1) shall be applied by substituting "65 years of age" for "60 years of age". The authority to grant exemptions in accordance with the preceding sentence shall cease to be available after December 31, 2011.
(c) A member of the Capitol Police who is otherwise eligible for immediate retirement under section 8412(d)(1) 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 before that date. 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 8412(d)(1) 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 before the date. 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.
(e) The President, by Executive order, may exempt an employee (other than a member of the Capitol Police or Supreme Court Police) from automatic separation under this section if the President determines the public interest so requires.
(Added
Applicability of Amendment
For provisions relating to delayed applicability of amendment by
Editorial Notes
Amendments
2022—Subsecs. (b)(1), (c), (d).
2010—Subsec. (b)(2).
2007—Subsec. (b)(1).
2004—Subsec. (b).
Subsec. (b)(2).
2003—Subsec. (a).
2001—Subsec. (b).
2000—Subsec. (d).
Subsec. (e).
1998—Subsec. (b).
1994—Subsec. (b).
Subsecs. (c), (d).
1992—Subsec. (b).
1990—Subsec. (b).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 2007 Amendment; Transition Rules
Amendment by
Effective Date of 2003 Amendment
Amendment by
Effective Date of 2000 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
Exception to Automatic Separation of Members of Capitol Police
1 So in original. Probably should be followed by a comma.
SUBCHAPTER III—THRIFT SAVINGS PLAN
§8431. Certain transfers to be treated as a separation
(a) For purposes of this subchapter, separation from Government employment includes a transfer from a position that is subject to one of the retirement systems described in subsection (b) to a position that is not subject to any of them.
(b) The retirement systems described in this subsection are—
(1) the retirement system under this chapter;
(2) the retirement system under subchapter III of
(3) any other retirement system under which individuals may contribute to the Thrift Savings Fund through withholdings from pay.
(Added
Editorial Notes
Prior Provisions
A prior section 8431, added
Statutory Notes and Related Subsidiaries
Effective Date
§8432. Contributions
(a)(1) An employee or Member may contribute to the Thrift Savings Fund in any pay period, pursuant to an election under subsection (b), an amount not to exceed the maximum percentage of such employee's or Member's basic pay for such pay period allowable under paragraph (2). Contributions under this subsection pursuant to such an election shall, with respect to each pay period for which such election remains in effect, be made in accordance with a program of regular contributions provided in regulations prescribed by the Executive Director.
(2) The maximum percentage allowable under this paragraph 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 | 11 |
2002 | 12 |
2003 | 13 |
2004 | 14 |
2005 | 15 |
2006 or thereafter | 100. |
(3) Notwithstanding any limitation under this subsection, 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.
(b)(1)(A)(i) The Executive Director shall prescribe regulations under which employees and Members may make contributions under subsection (a), to modify the amount to be contributed under such subsection, or to terminate such contributions.
(ii) An election to make contributions under this paragraph—
(I) may be made at any time;
(II) shall take effect on the earliest date after the election that is administratively feasible; and
(III) shall remain in effect until modified or terminated.
(B) The amount to be contributed pursuant to an election under subparagraph (A) shall be the percentage of basic pay or amount designated by the employee or Member.
(2)(A) The Executive Director shall by regulation provide for an eligible individual to be automatically enrolled to make contributions under subsection (a) at the default percentage of basic pay.
(B) For purposes of this paragraph, the default percentage shall be equal to 3 percent or such other percentage, not less than 2 percent nor more than 5 percent, as the Board may prescribe.
(C) The regulations shall include provisions under which any individual who would otherwise be automatically enrolled in accordance with subparagraph (A) may—
(i) modify the percentage or amount to be contributed pursuant to automatic enrollment, effective not later than the first full pay period following receipt of the election by the appropriate processing entity; or
(ii) decline automatic enrollment altogether.
(D)(i) Except as provided in clause (ii), for purposes of this paragraph, the term "eligible individual" means any individual who, after any regulations under subparagraph (A) first take effect, is appointed, transferred, or reappointed to a position in which that individual becomes eligible to contribute to the Thrift Savings Fund.
(ii) (ii) 1 Except in the case of a full TSP member (as defined in section 8440e(a)), members of the uniformed services shall not be eligible individuals for purposes of this paragraph.
(E) Sections 8351(a)(1), 8440a(a)(1), 8440b(a)(1), 8440c(a)(1), 8440d(a)(1), and 8440e(b)(1) shall be applied in a manner consistent with the purposes of this paragraph.
(F) Notwithstanding any other provision of this paragraph, if a full TSP member (as defined in section 8440e(a)) has declined automatic enrollment into the Thrift Savings Plan for a year, the full TSP member shall be automatically reenrolled on January 1 of the succeeding year, with contributions under subsection (a) at the default percentage of basic pay.
(c)(1)(A) At the time prescribed by the Executive Director, but no later than 12 days after the end of the pay period that includes the first date on which an employee or Member may make contributions under subsection (a) (without regard to whether the employee or Member has elected to make such contributions during such pay period), and within such time as the Executive Director may prescribe with respect to succeeding pay periods (but no later than 12 days after the end of each such pay period), the employing agency shall contribute to the Thrift Savings Fund for the benefit of such employee or Member the amount equal to 1 percent of the basic pay of such employee or Member for such pay period.
(B) In the case of each employee or Member who is an employee or Member on January 1, 1987, and continues as an employee or Member without a break in service through April 1, 1987, the employing agency shall contribute to the Thrift Savings Fund for the benefit of such employee or Member the amount equal to 1 percent of the total basic pay paid to such employee or Member for that period of service.
(C) If an employee or Member—
(i) is an employee or Member on January 1, 1987;
(ii) separates from Government employment before April 1, 1987; and
(iii) before separation, completes the number of years of civilian service applicable to such employee or Member under subparagraph (A) or (B) of subsection (g)(2),
the employing agency shall contribute to the Thrift Savings Fund for the benefit of such employee or Member the amount equal to 1 percent of the total basic pay paid to such employee or Member for service performed on or after January 1, 1987, and before the date of the separation.
(2)(A) In addition to contributions made under paragraph (1), the employing agency of an employee or Member who contributes to the Thrift Savings Fund under subsection (a) for any pay period shall make a contribution to the Thrift Savings Fund for the benefit of such employee or Member. The employing agency's contribution shall be made within such time as the Executive Director may prescribe, but no later than 12 days after the end of each such pay period.
(B) The amount contributed under subparagraph (A) by an employing agency with respect to a contribution of an employee or Member during any pay period shall be the amount equal to the sum of—
(i) such portion of the total amount of the employee's or Member's contribution as does not exceed 3 percent of such employee's or Member's basic pay for such period; and
(ii) one-half of such portion of the amount of the employee's or Member's contribution as exceeds 3 percent, but does not exceed 5 percent, of such employee's or Member's basic pay for such pay period.
(C) Notwithstanding subparagraph (B), the amount contributed under subparagraph (A) by an employing agency with respect to any contribution made by an employee or Member during any pay period which begins after the date on which such employee or Member makes an election under subsection (b)(4) 2 and before July 1, 1987, shall be the amount equal to the sum of—
(i) two times such portion of the total amount of the employee's or Member's contribution as does not exceed 3 percent of such employee's or Member's basic pay for such pay period; and
(ii) such portion of the total amount of the employee's or Member's contributions as exceeds 3 percent, but does not exceed 5 percent, of such employee's or Member's basic pay for such pay period.
(3)(A) There shall be contributed to the Thrift Savings Fund on behalf of each employee or Member described in subparagraph (B) the amount determined under subparagraph (C).
(B) An employee or Member referred to in subparagraph (A) is an employee or Member who—
(i) is an employee or Member on January 1, 1987;
(ii) has creditable service described in
(iii) has not received a refund of the amount of the retirement deductions made with respect to such service under section 204 of the Federal Employees' Retirement Contribution Temporary Adjustment Act of 1983.
(C) The amount referred to in subparagraph (A) in the case of an employee or Member is equal to the sum of—
(i) 1 percent of the total basic pay paid to such employee or Member for service described in
(ii) interest on such amount computed with respect to such service in the manner provided in paragraphs (2) and (3) of
(D) The Secretary of the Treasury shall credit to the Thrift Savings Fund, out of any sums in the Treasury not otherwise appropriated, the amounts determined by the Director to be necessary to carry out this paragraph.
(d) Notwithstanding any other provision of this section, no contribution may be made under this section for any year to the extent that such contribution, when added to prior contributions for such year, exceeds any limitation under section 415 of the Internal Revenue Code of 1986. However, no contribution made under subsection (c)(3) shall be subject to, or taken into account, for purposes of the preceding sentence.
(e) The sums required to be contributed to the Thrift Savings Fund by an employing agency under subsection (c) for the benefit of an employee or Member shall be paid from the appropriation or fund available to such agency for payment of salaries of the employee's or Member's office or establishment. When an employee or Member 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 or Member.
(f) Amounts contributed by an employee or Member under subsection (a) and amounts contributed with respect to such employee or Member under subsection (c) shall be deposited in the Thrift Savings Fund to the credit of that employee's or Member's account in accordance with such procedures as the Secretary of the Treasury may, in consultation with the Executive Director, prescribe in regulations.
(g)(1) Except as otherwise provided in this subsection, all contributions made under this section shall be fully nonforfeitable when made.
(2) Contributions made for the benefit of an employee under subsection (c)(1) and all earnings attributable to such contributions shall be forfeited if the employee separates from Government employment before completing—
(A) 2 years of civilian service in the case of an employee who, at the time of separation, is serving in—
(i) a position in the Senior Executive Service as a noncareer appointee (as defined in
(ii) a position listed in
(iii) a position in the Executive branch which is excepted from the competitive service by the Office by reason of the confidential and policy-determining character of the position;
(B) 3 years of civilian service in the case of an employee who is not serving in a position described in subparagraph (A) at the time of separation; or
(C) 2 years of service in the case of a member of the uniformed services.
(3) Contributions made for the benefit of a Member or Congressional employee under subsection (c)(1) and all earnings attributable to such contributions shall be forfeited if the Member or Congressional employee separates from Government employment before completing 2 years of civilian service.
(4) Nothing in paragraph (2) or (3) shall cause the forfeiture of any contributions made for the benefit of an employee, Member, or Congressional employee under subsection (c)(1), or any earnings attributable thereto, if such employee, Member, or Congressional employee is not separated from Government employment as of date of death.
(5) Notwithstanding any other provision of law, contributions made by the Government for the benefit of an employee or Member under subsection (c), and all earnings attributable to such contributions, shall be forfeited if the annuity of the employee or Member, or that of a survivor or beneficiary, is forfeited under subchapter II of
(h) No transfers or contributions may be made to the Thrift Savings Fund except as provided in this chapter or
(i)(1) This subsection applies to any employee—
(A) to whom section 8432b applies; and
(B) who, during the period of such employee's absence from civilian service (as referred to in section 8432b(b)(2)(B))—
(i) is eligible to make an election described in subsection (b)(1); or
(ii) would be so eligible but for having either elected to terminate individual contributions to the Thrift Savings Fund within 2 months before commencing military service or separated in order to perform military service.
(2) The Executive Director shall prescribe regulations to ensure that any employee to whom this subsection applies shall, within a reasonable time after being restored or reemployed (in the manner described in section 8432b(a)(2)), be afforded the opportunity to make, for purposes of this section, any election which would be allowable during a period described in subsection (b)(1)(A).
(j)(1) For the purpose of this subsection—
(A) the term "eligible rollover distribution" has the meaning given such term by section 402(c)(4) of the Internal Revenue Code of 1986; and
(B) the term "qualified trust" has the meaning given such term by section 402(c)(8) of the Internal Revenue Code of 1986.
(2) An employee or Member may contribute to the Thrift Savings Fund an eligible rollover that a qualified trust could accept under the Internal Revenue Code of 1986. A contribution made under this subsection shall be made in the form described in section 401(a)(31) of the Internal Revenue Code of 1986. In the case of an eligible rollover distribution, the maximum amount transferred to the Thrift Savings Fund shall not exceed the amount which would otherwise have been included in the employee's or Member's gross income for Federal income tax purposes.
(3) The Executive Director shall prescribe regulations to carry out this subsection.
(k)(1) 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 (
(2) Contributions under this subsection are subject to subsection (d).
(3) For purposes of subsection (c), basic pay of an employee of the Central Intelligence Agency participating in the pilot project referred to in paragraph (1) shall include bonus pay received by the employee as part of the pilot project.
(Added
Editorial Notes
References in Text
The Internal Revenue Code of 1986, referred to in subsecs. (a)(3), (d), and (j), is classified generally to Title 26, Internal Revenue Code.
Subsection (b)(4), referred to in subsec. (c)(2)(C), was repealed by section 102(a) of
Section 204 of the Federal Employees' Retirement Contribution Temporary Adjustment Act of 1983 [
The Intelligence Authorization Act for Fiscal Year 2003, referred to in subsec. (k)(1), is
Amendments
2016—Subsec. (g)(6).
2015—Subsec. (b)(2)(D)(ii).
Subsec. (b)(2)(E).
Subsec. (b)(2)(F).
Subsec. (g)(2)(C).
Subsec. (g)(6).
2009—Subsec. (b)(1)(B).
Subsec. (b)(2) to (4).
2004—Subsec. (b)(1)(A).
Subsec. (b)(2)(A), (C).
Subsec. (b)(2)(D).
Subsec. (b)(4)(C).
2003—Subsec. (k).
2002—Subsec. (a)(3).
2000—Subsec. (a).
Subsec. (b)(1)(B).
Subsec. (b)(3).
Subsec. (b)(4).
"(A) Notwithstanding paragraph (2)(A), an employee or Member who is an employee or Member on January 1, 1987, and continues as an employee or Member without a break in service through April 1, 1987, may make the first election for the purpose of subsection (a) during the election period prescribed for such purpose by the Executive Director. The Executive Director shall prescribe an election period for such purpose which shall commence on April 1, 1987. An election by such an employee or Member during that election period shall be effective on the first day of the employee's or Member's first pay period which begins after the date on which the employee or Member makes that election.
"(B) Notwithstanding subsection (a), the maximum amount that an employee or Member may contribute during any pay period which begins on or after April 1, 1987, and before October 1, 1987, pursuant to an election made during the election period provided under subparagraph (A) is the amount equal to 15 percent of such individual's basic pay for such pay period."
Subsec. (j).
1996—Subsec. (e).
Subsec. (f).
Subsec. (g)(5).
1994—Subsec. (d).
Subsec. (i).
1988—Subsec. (c)(1)(A).
Subsec. (c)(2)(A).
Subsec. (d).
Subsec. (g)(1).
Subsec. (g)(4).
1987—Subsec. (b)(4)(A).
1986—Subsec. (b)(4).
Subsec. (c)(1).
Subsec. (c)(2)(C).
Statutory Notes and Related Subsidiaries
Effective Date of 2016 Amendment
Effective Date of 2015 Amendment; Implementation
"(a)
"(b)
"(1)
"(2)
"(c)
"(d)
"(1) The term 'appropriate committees of Congress' means—
"(A) the Committee on Armed Services, the Committee on Energy and Commerce, the Committee on Natural Resources, the Committee on Oversight and Government Reform [now Committee on Oversight and Accountability], and the Committee on Transportation and Infrastructure of the House of Representatives; and
"(B) the Committee on Armed Services, the Committee on Commerce, Science, and Transportation, the Committee on Energy and Natural Resources, the Committee on Homeland Security and Governmental Affairs, and the Committee on Health, Education, Labor, and Pensions of the Senate.
"(2) The term 'Secretary concerned' has the meaning given that term in
Effective Date of 2002 Amendment
Amendment by
Effective Date of 2000 Amendment
Effective Date of 1996 Amendment
Effective Date of 1994 Amendment
Amendment by section 4(c) of
Amendment by section 5(e)(3) of
Effective Date of 1986 Amendment
Regulations
Savings Provisions
Eligibility of Certain Individuals To Participate in Thrift Savings Plan
"(a)
"(1) the term 'Executive Director' means the Executive Director under
"(2) the term 'Thrift Savings Plan' refers to the program under subchapter III of
"(b)
"(1)
"(2)
"(A) in computing a percentage of basic pay to determine an amount to be contributed to the Thrift Savings Fund, the rate of basic pay to be used shall be the same as that used in computing any amount which the individual involved is otherwise required, as a condition for participating in the Civil Service Retirement System or the Federal Employees' Retirement System (as the case may be), to contribute to the Civil Service Retirement and Disability Fund; and
"(B) an employing authority which would not otherwise make contributions to the Thrift Savings Fund shall be allowed, with respect to any individual under subsection (c) who is serving under such authority, and at the sole discretion of such authority, to make any contributions on behalf of such individual which would be permitted or required under the provisions of
"(c)
"(1) any individual participating in the Civil Service Retirement System or the Federal Employees' Retirement System as—
"(A) an individual who has entered on approved leave without pay to serve as a full-time officer or employee of an organization composed primarily of employees (as defined by
"(B) an individual assigned from a Federal agency to a State or local government under subchapter VI of
"(C) an individual appointed or otherwise assigned to one of the cooperative extension services, as defined by section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (
"(D) an individual assigned from a Federal agency to a private sector organization under
"(2) any individual who is participating in the Civil Service Retirement System as a result of a provision of law described in section 8347(o).
"(d)
"(1)
"(2)
Contributions to Thrift Savings Fund
Inapplicability of Limitation on Number of Elections Within a Six-Month Period
Plan for Delayed Contributions to Thrift Savings Fund
2 See References in Text note below.
§8432a. Payment of lost earnings
(a)(1) The Executive Director shall prescribe regulations under which an employing agency shall be required to pay to the Thrift Savings Fund amounts representing lost earnings resulting from errors (including errors of omission) made by such agency in carrying out this subchapter, subject to paragraph (2).
(2) If the error involves an employing agency's failure to deduct from basic pay contributions (in whole or in part) on behalf of an individual in accordance with section 8432(a), the regulations shall not provide for the payment of any lost earnings which would be attributable to—
(A) the contributions that the agency failed to deduct from basic pay in accordance with section 8432(a); or
(B) any related contributions under section 8432(c)(2) that the employing agency is not required (by statute or otherwise) to make up.
(b) The regulations—
(1) shall include—
(A) procedures for computing lost earnings; and
(B) procedures under which amounts paid to the Thrift Savings Fund under this section shall be credited to appropriate accounts;
(2) may provide for exceptions from the requirements of this section to the extent that correction of an error is not administratively feasible;
(3) may require an employing agency to reimburse the Thrift Savings Fund for costs incurred by the Thrift Savings Fund in implementing corrections of employing agency errors under this section; and
(4) may include such other provisions as the Executive Director determines appropriate to carry out this section.
(c) Any amounts required to be paid by an employing agency under this section shall be paid from the appropriation or fund available to the employing agency for payment of salaries of the participant's office or establishment. If a participant 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 amount required to be paid to correct errors relating to the Thrift Savings Fund that otherwise would be paid from the appropriation or fund used to pay the participant.
(Added
Editorial Notes
Amendments
1996—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date
§8432b. Contributions of persons who perform military service
(a) This section applies to any employee who—
(1) separates or enters leave-without-pay status in order to perform military service; and
(2) is subsequently restored to or reemployed in a position which is subject to this chapter, pursuant to
(b)(1) Each employee to whom this section applies may contribute to the Thrift Savings Fund, in accordance with this subsection, an amount not to exceed the amount described in paragraph (2).
(2) The maximum amount which an employee may contribute under this subsection is equal to—
(A) the contributions under section 8432(a) which would have been made, over the period beginning on date of separation or commencement of leave-without-pay status (as applicable) and ending on the day before the date of restoration or reemployment (as applicable); reduced by
(B) any contributions under section 8432(a) or 8440e actually made by such employee over the period described in subparagraph (A).
(3) Contributions under this subsection—
(A) shall be made at the same time and in the same manner as would any contributions under section 8432(a);
(B) shall be made over the period of time specified by the employee under paragraph (4)(B); and
(C) shall be in addition to any contributions then actually being made under section 8432(a).
(4) The Executive Director shall prescribe the time, form, and manner in which an employee may specify—
(A) the total amount such employee wishes to contribute under this subsection with respect to any particular period referred to in paragraph (2)(B); and
(B) the period of time over which the employee wishes to make contributions under this subsection.
The employing agency may place a maximum limit on the period of time referred to in subparagraph (B), which cannot be shorter than two times the period referred to in paragraph (2)(B) and not longer than four times such period.
(c)(1) If an employee makes contributions under subsection (b), the employing agency shall make contributions to the Thrift Savings Fund on such employee's behalf—
(A) in the same manner as would be required under section 8432(c)(2) if the employee contributions were being made under section 8432(a); and
(B) disregarding any contributions then actually being made under section 8432(a) and any agency contributions relating thereto.
(2) An employee to whom this section applies is entitled to have contributed to the Thrift Savings Fund on such employee's behalf an amount equal to—
(A) the total contributions to which that individual would have been entitled under section 8432(c)(2), based on the amounts contributed by such individual under section 8440e (other than under subsection (d)(2) thereof) with respect to the period referred to in subsection (b)(2)(B), if those amounts had been contributed by such individual under section 8432(a); reduced by
(B) any contributions actually made on such employee's behalf under section 8432(c)(2) with respect to the period referred to in subsection (b)(2)(B).
(d) An employee to whom this section applies is entitled to have contributed to the Thrift Savings Fund on such employee's behalf an amount equal to—
(1) 1 percent of such employee's basic pay (as determined under subsection (e)) for the period referred to in subsection (b)(2)(B); reduced by
(2) any contributions actually made on such employee's behalf under section 8432(c)(1) with respect to the period referred to in subsection (b)(2)(B).
(e) For purposes of any computation under this section, an employee shall, with respect to the period referred to in subsection (b)(2)(B), be considered to have been paid at the rate which would have been payable over such period had such employee remained continuously employed in the position which such employee last held before separating or entering leave-without-pay status to perform military service.
(f)(1) The employing agency may be required to pay lost earnings on contributions made pursuant to subsections (c) and (d). Such earnings, if required, shall be calculated retroactively to the date the contribution would have been made had the employee not separated or entered leave without pay status to perform military service.
(2) Procedures for calculating and crediting the earnings payable pursuant to paragraph (1) shall be prescribed by the Executive Director.
(g) Amounts paid under subsection (c), (d), or (f) shall be paid—
(1) by the agency to which the employee is restored or in which such employee is reemployed;
(2) from the same source as would be the case under section 8432(e) with respect to sums required under section 8432(c); and
(3) within the time prescribed by the Executive Director.
(h)(1) For purposes of section 8432(g), in the case of an employee to whom this section applies—
(A) a separation from civilian service in order to perform the military service on which the employee's restoration or reemployment rights are based shall be disregarded; and
(B) such employee shall be credited with a period of civilian service equal to the period referred to in subsection (b)(2)(B).
(2)(A) An employee to whom this section applies may elect, for purposes of subsection (d) or (f) of section 8433, as the case may be, to have such employee's separation (described in subsection (a)(1)) treated as if it had never occurred.
(B) An election under this paragraph shall be made within such period of time after restoration or reemployment (as the case may be) and otherwise in such manner as the Executive Director prescribes.
(i) The Executive Director shall prescribe regulations to carry out this section.
(Added
Editorial Notes
Amendments
2017—Subsec. (h)(2)(A).
2015—Subsec. (c)(2)(B).
1999—Subsec. (b)(2)(B).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Effective Date of 2015 Amendment; Implementation
Amendment by
Effective Date of 1999 Amendment
Amendment by
Effective Date
"(e)
"(1) shall take effect on the date of enactment of this Act [Oct. 13, 1994]; and
"(2) shall apply to any employee whose release from military service, discharge from hospitalization, or other similar event making the individual eligible to seek restoration or reemployment under
"(f)
"(1) The employee shall be deemed not to have been reemployed or restored until—
"(A) the date of enactment of this Act, or
"(B) the first day following such employee's reemployment or restoration on which such employee is or was eligible to make an election relating to contributions to the Thrift Savings Fund,
whichever occurs or occurred first.
"(2) If the employee changed agencies during the period between the date of actual reemployment or restoration and the date of enactment of this Act, the employing agency as of such date of enactment shall be considered the reemploying or restoring agency.
"(3)(A) For purposes of any computation under section 8432b of such title, pay shall be determined in accordance with subsection (e) of such section, except that, with respect to the period described in subparagraph (B), actual pay attributable to such period shall be used.
"(B) The period described in this subparagraph is the period beginning on the first day of the first applicable pay period beginning on or after the date of the employee's actual reemployment or restoration and ending on the day before the date determined under paragraph (1).
"(4) Deem section 8432b(b)(2)(A) of such title to be amended by striking 'ending on the day before the date of restoration or reemployment (as applicable)' and inserting 'ending on the date determined under section 4(f)(1) of the Uniformed Services Employment and Reemployment Rights Act of 1994'."
§8432c. Contributions of certain persons reemployed after service with international organizations
(a) In this section, the term "covered person" means any person who—
(1) transfers from a position of employment covered by
(2) pursuant to section 3582 elects to retain coverage, rights, and benefits under any system established by law for the retirement of persons during the period of employment with the international organization and currently deposits the necessary deductions in payment for such coverage, rights, and benefits in the system's fund; and
(3) is reemployed pursuant to section 3582(b) to a position covered by
(b)(1) Each covered person may contribute to the Thrift Savings Fund, in accordance with this subsection, an amount not to exceed the amount described in paragraph (2).
(2) The maximum amount which a covered person may contribute under paragraph (1) is equal to—
(A) the total amount of all contributions under section 8351(b)(2) or 8432(a), as applicable, which the person would have made over the period beginning on the date of transfer of the person (as described in subsection (a)(1)) and ending on the day before the date of reemployment of the person (as described in subsection (a)(3)), minus
(B) the total amount of all contributions, if any, under section 8351(b)(2) or 8432(a), as applicable, actually made by the person over the period described in subparagraph (A).
(3) Contributions under paragraph (1)—
(A) shall be made at the same time and in the same manner as would any contributions under section 8351(b)(2) or 8432(a), as applicable;
(B) shall be made over the period of time specified by the person under paragraph (4)(B); and
(C) shall be in addition to any contributions actually being made by the person during that period under section 8351(b)(2) or 8432(a), as applicable.
(4) The Executive Director shall prescribe the time, form, and manner in which a covered person may specify—
(A) the total amount the person wishes to contribute with respect to any period described in paragraph (2)(A); and
(B) the period of time over which the covered person wishes to make contributions under this subsection.
(c) If a covered person who makes contributions under section 8432(a) makes contributions under subsection (b), the agency employing the person shall make those contributions to the Thrift Savings Fund on the person's behalf in the same manner as contributions are made for an employee described in section 8432b(a) under sections 8432b(c), 8432b(d), and 8432b(f). Amounts paid under this subsection shall be paid in the same manner as amounts are paid under section 8432b(g).
(d) For purposes of any computation under this section, a covered person shall, with respect to the period described in subsection (b)(2)(A), be considered to have been paid at the rate which would have been payable over such period had the person remained continuously employed in the position that the person last held before transferring to the international organization.
(e) For purposes of section 8432(g), a covered person shall be credited with a period of civilian service equal to the period beginning on the date of transfer of the person (as described in subsection (a)(1)) and ending on the day before the date of reemployment of the person (as described in subsection (a)(3)).
(f) The Executive Director shall prescribe regulations to carry out this section.
(Added
Editorial Notes
References in Text
The Foreign Service Act of 1980, referred to in subsec. (a)(1), (3), is
Statutory Notes and Related Subsidiaries
Effective Date
1 See References in Text note below.
§8432d. Qualified Roth contribution program
(a)
(1) the term "qualified Roth contribution program" means a program described in paragraph (1) of section 402A(b) of the Internal Revenue Code of 1986 which meets the requirements of paragraph (2) of such section; and
(2) the terms "designated Roth contribution" and "elective deferral" have the meanings given such terms in section 402A of the Internal Revenue Code of 1986.
(b)
(c)
(1) provisions under which an election to make designated Roth contributions may be made—
(A) by any individual who is eligible to make contributions under section 8351, 8432(a), 8440a, 8440b, 8440c, 8440d, or 8440e; and
(B) by any individual, not described in subparagraph (A), who is otherwise eligible to make elective deferrals under the Thrift Savings Plan;
(2) any provisions which may, as a result of enactment of this section, be necessary in order to clarify the meaning of any reference to an "account" made in section 8432(f), 8433, 8434(d), 8435, 8437, or any other provision of law; and
(3) any other provisions which may be necessary to carry out this section.
(Added
Editorial Notes
References in Text
Section 402A of the Internal Revenue Code of 1986, referred to in subsec. (a), is classified to
§8433. Benefits and election of benefits
(a) An employee or Member who separates from Government employment is entitled to the amount of the balance in the employee's or Member's account (except for the portion of such amount forfeited under
(b) Subject to
(1) an annuity;
(2) a single payment;
(3) 2 or more substantially equal payments to be made not less frequently than annually; or
(4) any combination of payments as provided under paragraphs (1) through (3) as the Executive Director may prescribe by regulation.
(c)(1) In addition to the right provided under subsection (b) to withdraw the balance of the account, an employee or Member who separates from Government service may make one or more withdrawals of any amount in the same manner as a single payment is made in accordance with subsection (b)(2) from the employee's or Member's account.
(2) An employee or Member may request that the amount withdrawn from the Thrift Savings Fund in accordance with subsection (b)(2) be transferred to an eligible retirement plan.
(3) The Executive Director shall make each transfer elected under paragraph (2) directly to an eligible retirement plan or plans (as defined in section 402(c)(8) of the Internal Revenue Code of 1986) identified by the employee, Member, former employee, or former Member for whom the transfer is made.
(4) A transfer may not be made for an employee, Member, former employee, or former Member under paragraph (2) until the Executive Director receives from that individual the information required by the Executive Director specifically to identify the eligible retirement plan or plans to which the transfer is to be made.
(5) Withdrawals under this subsection shall be subject to such other limitations or conditions as the Executive Director may prescribe by regulation.
(d)(1) Subject to paragraph (2) and subsections (a) and (c) of
(2) A former employee or Member may not return a payment that was made pursuant to an election under this section.
(e)(1) If an employee or Member (or former employee or Member) dies without having made an election under this section or after having elected an annuity under this section but before making an election under
(2) Notwithstanding section 8424(d), if an employee, Member, former employee, or former Member dies and has designated as sole or partial beneficiary his or her spouse at the time of death, or, if an employee, Member, former employee, or former Member, dies with no designated beneficiary and is survived by a spouse, the spouse may maintain the portion of the employee's or Member's account to which the spouse is entitled in accordance with the following terms:
(A) Subject to the limitations of subparagraph (B), the spouse shall have the same withdrawal options under subsection (b) as the employee or Member were the employee or Member living.
(B) The spouse may not make withdrawals under subsection (g) or (h).
(C) The spouse may not make contributions or transfers to the account.
(D) The account shall be disbursed upon the death of the surviving spouse. A beneficiary or surviving spouse of a deceased spouse who has inherited an account is ineligible to maintain the inherited spousal account.
(3) The Executive Director shall prescribe regulations to carry out this subsection.
(f) Notwithstanding subsection (b), 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, unless an election under section 8432b(h)(2) is made to treat such separation for purposes of this subsection as if it had never occurred.
(g)(1) At any time before separation, an employee or Member may apply to the Board for permission to borrow from the employee's or Member's account an amount not exceeding the value of that portion of such account which is attributable to contributions made by the employee or Member. Before a loan is issued, the Executive Director shall provide in writing the employee or Member with appropriate information concerning the cost of the loan relative to other sources of financing, as well as the lifetime cost of the loan, including the difference in interest rates between the funds offered by the Thrift Savings Fund, and any other effect of such loan on the employee's or Member's final account balance.
(2) Loans under this subsection shall be available to all employees and Members on a reasonably equivalent basis, and shall be subject to such other conditions as the Board may by regulation prescribe. The restrictions of
(3) A loan may not be made under this subsection to the extent that the loan would be treated as a taxable distribution under section 72(p) of the Internal Revenue Code of 1986.
(4) A loan may not be made under this subsection unless the requirements of
(h)(1) An employee or Member may apply, before separation, to the Board for permission to withdraw an amount from the employee's or Member's account based upon—
(A) the employee or Member having attained age 59½; or
(B) financial hardship.
(2) A withdrawal under paragraph (1)(B) shall be available only for an amount not exceeding the value of that portion of such account which is attributable to contributions made by the employee or Member.
(3) Withdrawals under paragraph (1) shall be subject to such other limitations or conditions as the Executive Director may prescribe by regulation.
(4) A withdrawal may not be made under this subsection unless the requirements of
(Added
Editorial Notes
References in Text
Sections 72(p) and 402(c)(8) of the Internal Revenue Code of 1986, referred to in subsecs. (c)(3) and (g)(3), are classified to sections 72(p) and 402(c)(8), respectively, of Title 26, Internal Revenue Code.
Amendments
2017—Subsec. (c)(1).
Subsec. (c)(5).
Subsec. (d)(1).
Subsec. (d)(2).
Subsec. (f).
"(A) the employee, Member, former employee, or former Member becomes 70½ years of age; or
"(B) the employee, Member, former employee, or former Member separates from Government employment."
Subsec. (h)(2).
Subsec. (h)(3).
Subsec. (h)(4), (5).
2009—Subsec. (e).
2004—Subsec. (d)(1).
1999—Subsecs. (g)(1), (h)(3).
1996—Subsec. (b).
"(1) to receive an immediate annuity from the Thrift Savings Fund;
"(2) to defer the commencement of the payment of an annuity from the Thrift Savings Fund until such date as the employee or Member specifies, but not later than April 1 of the year following the year in which the employee or Member becomes 70½ years of age;
"(3) to withdraw the amount of the balance in the employee's or Member's account in the Thrift Savings Fund in one or more substantially equal payments to be made not less frequently than annually and to commence before April 1 of the year following the year in which the employee or Member becomes 70½ years of age; or
"(4) to transfer the amount of the balance in the employee's or Member's account to an eligible retirement plan as provided in subsection (c)."
Subsec. (c).
"(1) The Executive Director shall make each transfer elected under subsection (b)(4) directly to an eligible retirement plan or plans (as defined in section 402(c)(8) of the Internal Revenue Code of 1986) identified by the employee, Member, former employee, or former Member for whom the transfer is made.
"(2) A transfer may not be made for an employee, Member, former employee, or former Member under paragraph (1) until the Executive Director receives from that individual the information required by the Executive Director specifically to identify the eligible retirement plan or plans to which the transfer is to be made."
Subsec. (d)(1).
Subsec. (d)(2).
Subsec. (d)(3).
Subsec. (f)(1).
Subsec. (f)(2).
Subsec. (g)(1).
Subsec. (g)(2) to (5).
"(A) the purchase of a primary residence;
"(B) educational expenses;
"(C) medical expenses; or
"(D) financial hardship."
Subsec. (h).
1994—Subsec. (b).
Subsec. (b)(4).
Subsec. (c).
Subsec. (c)(1).
Subsec. (d).
Subsec. (d)(1).
Subsec. (d)(2).
Subsec. (e).
Subsec. (f).
Subsec. (f)(1).
Subsec. (f)(2).
Subsec. (f)(3).
Subsec. (g).
Subsec. (g)(5).
Subsec. (h).
Subsec. (h)(1), (2).
Subsec. (i).
Subsec. (i)(4).
1992—Subsec. (b).
1990—Subsec. (f)(3)(A).
Subsec. (f)(3)(B).
Subsec. (h).
"(1) the employee, Member, former employee, or former Member becomes 65 years of age;
"(2) occurs the tenth anniversary of the year in which the employee, Member, former employee, or former Member became subject to this subchapter; or
"(3) the employee, Member, former employee, or former Member separates from Government employment."
1988—Subsec. (i)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 2017 Amendment
Amendment by
Effective Date of 1999 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1994 Amendments
Amendment by section 4(b) of
Amendment by section 5(e)(4) of
Amendment by
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1990 Amendment
Amendment by section 6(a)(2) of
Regulations
[Regulations referred to by section 2(f) of
Invalidity of Certain Prior Elections
§8434. Annuities: methods of payment; election; purchase
(a)(1) The Board shall prescribe methods of payment of annuities under this subchapter.
(2) The methods of payment prescribed under paragraph (1) shall include, but not be limited to—
(A) a method which provides for the payment of a monthly annuity only to an annuitant during the life of the annuitant;
(B) a method which provides for the payment of a monthly annuity to an annuitant for the joint lives of the annuitant and the spouse of the annuitant and an appropriate monthly annuity to the one of them who survives the other of them for the life of the survivor;
(C) a method described in subparagraph (A) which provides for automatic adjustments in the amount of the annuity payable so long as the amount of the annuity payable in any one year shall not be less than the amount payable in the previous year;
(D) a method described in subparagraph (B) which provides for automatic adjustments in the amount of the annuity payable so long as the amount of the annuity payable in any one year shall not be less than the amount payable in the previous year; and
(E) a method which provides for the payment of a monthly annuity—
(i) to the annuitant for the joint lives of the annuitant and an individual who is designated by the annuitant under regulations prescribed by the Executive Director and (I) is a former spouse of the annuitant, or (II) has an insurable interest in the annuitant; and
(ii) to the one of them who survives the other of them for the life of the survivor.
(b) Subject to
(c) Notwithstanding the elimination of a method of payment by the Board, an employee, Member, former employee, or former Member may elect the eliminated method if the elimination of such method becomes effective less than 5 years before the date on which that individual's annuity commences.
(d)(1) Not earlier than 90 days (or such shorter period as the Executive Director may by regulation prescribe) before an annuity is to commence under this subchapter, the Executive Director shall expend the balance in the annuitant's account to purchase an annuity contract from any entity which, in the normal course of its business, sells and provides annuities.
(2) The Executive Director shall assure, by contract entered into with each entity from which an annuity contract is purchased under paragraph (1), that the annuity shall be provided in accordance with the provisions of this subchapter and subchapter VII of this chapter.
(3) An annuity contract purchased under paragraph (1) shall include such terms and conditions as the Executive Director requires for the protection of the annuitant.
(4) The Executive Director shall require, from each entity from which an annuity contract is purchased under paragraph (1), a bond or proof of financial responsibility sufficient to protect the annuitant.
(e)(1) No tax, fee, or other monetary payment may be imposed or collected by any State, the District of Columbia, or the Commonwealth of Puerto Rico, or by any political subdivision or other governmental authority thereof, on, or with respect to, any amount paid to purchase an annuity contract under this section.
(2) Paragraph (1) shall not be construed to exempt any company or other entity issuing an annuity contract under this section from the imposition, payment, or collection of a tax, fee, or other monetary payment on the net income or profit accruing to or realized by that entity from the sale of an annuity contract under this section if that tax, fee, or payment is applicable to a broad range of business activity.
(Added
Editorial Notes
Amendments
1994—Subsec. (b).
Subsec. (c).
"(1) an employee, Member, former employee, or former Member who is entitled under
"(2) any other employee, Member, former employee, or former Member may elect such method of payment for amounts contributed by or on behalf of the employee, Member, former employee, or former Member under
1990—Subsec. (b).
Subsec. (d)(1).
Subsec. (e).
1988—Subsec. (a)(2)(C), (D).
"(C) a method described in subparagraph (A) which provides annual increases in the amount of the annuity payable;
"(D) a method described in subparagraph (B) which provides annual increases in the amount of the annuity payable; and".
Statutory Notes and Related Subsidiaries
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1990 Amendment
Amendment by section 5(b) of
§8435. Protections for spouses and former spouses
(a)(1)(A) A married employee or Member (or former employee or Member) may withdraw all or part of a Thrift Savings Fund account under subsection (b)(2), (3), or (4) of
(B) An employee or Member (or former employee or Member) may make an election or change referred to in subparagraph (A) if the employee or Member and the employee's or Member's spouse (or the former employee or Member and the former employee's or Member's spouse) jointly waive, by written election, any right which the spouse may have to a survivor annuity with respect to such employee or Member (or former employee or Member) under
(2) Paragraph (1) shall not apply to an election or change of election by an employee or Member (or former employee or Member) who establishes to the satisfaction of the Executive Director (at the time of the election or change and in accordance with regulations prescribed by the Executive Director)—
(A) that the spouse's whereabouts cannot be determined; or
(B) that, due to exceptional circumstances, requiring the spouse's waiver would otherwise be inappropriate.
(b)(1) Notwithstanding any election under subsection (b) of
(2) Paragraph (1) shall not apply if—
(A) a joint waiver of such method is made, in writing, by the employee or Member and the spouse; or
(B) the employee or Member waives such method, in writing, after establishing to the satisfaction of the Executive Director that circumstances described under subsection (a)(2)(A) or (B) make the requirement of a joint waiver inappropriate.
(c)(1) An election or change of election shall not be effective under this subchapter to the extent that the election, change, or transfer conflicts with any court decree, order, or agreement described in paragraph (2).
(2) A court decree, order, or agreement referred to in paragraph (1) is, with respect to an employee or Member (or former employee or Member), a court decree of divorce, annulment, or legal separation issued in the case of such employee or Member (or former employee or Member) and any former spouse of the employee or Member (or former employee or Member) or any court order or court-approved property settlement agreement incident to such decree if—
(A) the decree, order, or agreement expressly relates to any portion of the balance in the employee's or Member's (or former employee's or Member's) account; and
(B) notice of the decree, order, or agreement was received by the Executive Director before—
(i) the date on which payment is made, or
(ii) in the case of an annuity, the date on which an annuity contract is purchased to provide for the annuity,
in accordance with the election, change, or contribution referred to in paragraph (1).
(3) The Executive Director shall prescribe regulations under which this subsection shall be applied in any case in which the Executive Director receives two or more decrees, orders, or agreements referred to in paragraph (1).
(d)(1) Subject to paragraphs (2) through (7), a former spouse of a deceased employee or Member (or a deceased former employee or Member) who died after performing 18 or more months of service and a former spouse of a deceased former employee or Member who died entitled to an immediate or deferred annuity under subchapter II of this chapter is entitled to a survivor annuity under this subsection if and to the extent that—
(A) an election under
(B) any court decree, order, or agreement (described in subsection (c)(2), without regard to subparagraph (B) of such subsection) which relates to such deceased individual and such former spouse,
expressly provides for such survivor annuity.
(2) Paragraph (1) shall apply only to payments made by the Executive Director after the date on which the Executive Director receives written notice of the election, decree, order, or agreement, and such additional information and documentation as the Executive Director may require.
(3) The amount of the survivor annuity payable from the Thrift Savings Fund to a former spouse of a deceased employee, Member, former employee, or former Member under this section may not exceed the excess, if any, of—
(A) the amount of the survivor annuity determined for a surviving spouse of the deceased employee, Member, former employee, or former Member under the method described in subsection (b)(1), over
(B) the total amount of all other survivor annuities payable under this subchapter to other former spouses of such deceased employee, Member, former employee, or former Member based on the order of precedence provided in paragraph (4).
(4) If more than one former spouse of a deceased employee, Member, former employee, or former Member is entitled to a survivor annuity pursuant to this subsection, the amount of each such survivor annuity shall be limited appropriately to carry out paragraph (3) in the order of precedence established for the entitlements by the chronological order of the dates on which elections are properly made pursuant to
(5) Subsections (c) and (d) of
(6) For the purposes of this section, a court decree, order, or agreement or an election referred to in subsection (a) of this section shall not be effective, in the case of a former spouse, to the extent that the election is inconsistent with any joint waiver previously executed with respect to such former spouse under subsection (a)(2) or (b)(2).
(7) Any payment under this subsection to any individual bars recovery by any other individual.
(e)(1)(A) A loan or withdrawal may be made to a married employee or Member under section 8433(g) and (h) of this title only if the employee's or Member's spouse consents to such loan or withdrawal in writing.
(B) A consent under subparagraph (A) shall be irrevocable with respect to the loan or withdrawal to which the consent relates.
(C) Subparagraph (A) shall not apply to a loan or withdrawal to an employee or Member who establishes to the satisfaction of the Executive Director (at the time the employee or Member applies for such loan or withdrawal and in accordance with regulations prescribed by the Executive Director)—
(i) that the spouse's whereabouts cannot be determined; or
(ii) that, due to exceptional circumstances, requiring the employee or Member to seek the spouse's consent would otherwise be inappropriate.
(2) An application for a loan or withdrawal under section 8433(g) and (h) of this title shall not be approved if approval would have the result described under subsection (c)(1).
(f) Waivers and notifications required by this section and waivers of the requirements for such waivers and notifications (as authorized by this section) may be made only in accordance with procedures prescribed by the Executive Director.
(g) Except with respect to the making of loans or withdrawals under section 8433(g) and (h), none of the provisions of this section requiring notification to, or the consent or waiver of, 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.
(h) The protections provided by this section are in addition to the protections provided by
(Added
Editorial Notes
Amendments
1996—Subsec. (a)(1)(A).
Subsec. (c)(1).
Subsec. (c)(2)(B).
Subsec. (e)(1).
Subsec. (e)(2).
Subsec. (g).
1994—Subsec. (a)(1)(A).
Subsec. (a)(1)(B).
Subsec. (b).
"(A) in the case of an employee or Member retiring under
"(i) a joint waiver of such method is made, in writing, by the employee or Member and the spouse; or
"(ii) the employee or Member waives such method, in writing, after establishing to the satisfaction of the Executive Director that circumstances described in subsection (a)(2)(A) or (a)(2)(B) make the requirement of a joint waiver inappropriate; or
"(B) in the case of an employee or Member not covered by subparagraph (A), if the employee or Member waives such method after—
"(i) having provided notification to the spouse of intent to waive; or
"(ii) establishing to the satisfaction of the Executive Director that the whereabouts of such spouse cannot be determined."
"(b)(1) Except as provided in paragraph (2), a transfer may be made by an employee or Member (or former employee or Member) under
"(2) Paragraph (1) may be waived with respect to a spouse or former spouse if the employee or Member (or former employee or Member) establishes to the satisfaction of the Executive Director that the whereabouts of such spouse or former spouse cannot be determined."
Subsec. (c).
Subsec. (d).
Subsec. (d)(1)(B).
Subsec. (d)(3)(A).
Subsec. (d)(6).
Subsec. (e).
Subsec. (e)(1)(A).
Subsec. (e)(2).
Subsec. (f).
Subsec. (g).
Subsecs. (h), (i).
1992—Subsec. (c)(2)(A).
1990—Subsec. (c)(1).
Subsec. (d)(2)(B)(ii).
Subsecs. (h), (i).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1990 Amendment
Amendment by section 5(c) of
Amendment by section 6(a)(3) of
§8436. Administrative provisions
(a) The Executive Director shall make or provide for payments and transfers in accordance with an election of an employee or Member under
(b) Any election, change of election, or modification of a deferred annuity commencement date made under this subchapter shall be in writing and shall be filed with the Executive Director in accordance with regulations prescribed by the Executive Director.
(Added
§8437. Thrift Savings Fund
(a) There is established in the Treasury of the United States a Thrift Savings Fund.
(b) The Thrift Savings Fund consists of the sum of all amounts contributed under
(c) The sums in the Thrift Savings Fund are appropriated and shall remain available without fiscal year limitation—
(1) to invest under
(2) to pay benefits or purchase annuity contracts under this subchapter;
(3) to pay the administrative expenses of the Federal Retirement Thrift Investment Management System prescribed in subchapter VII of this chapter;
(4) to make distributions for the purposes of
(5) to make loans to employees and Members as authorized under
(6) to purchase insurance as provided in
(d) Administrative expenses incurred to carry out this subchapter and subchapter VII of this chapter shall be paid first out of any sums in the Thrift Savings Fund forfeited under
(e)(1) Subject to subsection (d) and paragraphs (2) and (3), sums in the Thrift Savings Fund credited to the account of an employee, Member, former employee, or former Member may not be used for, or diverted to, purposes other than for the exclusive benefit of the employee, Member, former employee, or former Member or his beneficiaries under this subchapter.
(2) Except as provided in paragraph (3), sums in the Thrift Savings Fund may not be assigned or alienated and are not subject to execution, levy, attachment, garnishment, or other legal process. For the purposes of this paragraph, a loan made from such Fund to an employee or Member shall not be considered to be an assignment or alienation.
(3) Moneys due or payable from the Thrift Savings Fund to any individual and, in the case of an individual who is an employee or Member (or former employee or Member), the balance in the account of the employee or Member (or former employee or Member) shall be subject to legal process for the enforcement of the individual's legal obligations to provide child support or make alimony payments as provided in section 459 of the Social Security Act (
(f) The sums in the Thrift Savings Fund shall not be appropriated for any purpose other than the purposes specified in this section and may not be used for any other purpose.
(g) All sums contributed to the Thrift Savings Fund by an employee or Member or by an employing agency for the benefit of such employee or Member and all net earnings in such Fund attributable to investment of such sums are held in such Fund in trust for such employee or Member.
(Added
Editorial Notes
References in Text
Section 6331 of the Internal Revenue Code of 1986, referred to in subsec. (e)(3), is classified to
Amendments
2018—Subsec. (e)(3).
2013—Subsec. (e)(3).
2009—Subsec. (e)(3).
1994—Subsec. (c)(5).
Subsec. (e)(3).
1988—Subsec. (d).
Subsec. (e)(1).
Subsec. (e)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Effective Date of 1994 Amendments
Amendment by
Amendment by
Effective Date of 1988 Amendment
Disposition of Amounts
"(1) shall be deposited in the general fund of the Treasury of the United States; and
"(2) shall be used solely for purposes of deficit reduction."
§8438. Investment of Thrift Savings Fund
(a) For the purposes of this section—
(1) the term "Common Stock Index Investment Fund" means the Common Stock Index Investment Fund established under subsection (b)(1)(C);
(2) the term "equity capital" means common and preferred stock, surplus, undivided profits, contingency reserves, and other capital reserves;
(3) the term "Fixed Income Investment Fund" means the Fixed Income Investment Fund established under subsection (b)(1)(B);
(4) the term "Government Securities Investment Fund" means the Government Securities Investment Fund established under subsection (b)(1)(A);
(5) the term "International Stock Index Investment Fund" means the International Stock Index Investment Fund established under subsection (b)(1)(E);
(6) the term "net worth" means capital, paid-in and contributed surplus, unassigned surplus, contingency reserves, group contingency reserves, and special reserves;
(7) the term "plan" means an employee benefit plan, as defined in section 3(3) of the Employee Retirement Income Security Act of 1974 (
(8) the term "qualified professional asset manager" means—
(A) a bank, as defined in section 202(a)(2) of the Investment Advisers Act of 1940 (
(i) has the power to manage, acquire, or dispose of assets of a plan; and
(ii) has, as of the last day of its latest fiscal year ending before the date of a determination for the purpose of this clause, equity capital in excess of $1,000,000;
(B) a savings and loan association, the accounts of which are insured by the Federal Deposit Insurance Corporation, which—
(i) has applied for and been granted trust powers to manage, acquire, or dispose of assets of a plan by a State or Government authority having supervision over savings and loan associations; and
(ii) has, as of the last day of its latest fiscal year ending before the date of a determination for the purpose of this clause, equity capital or net worth in excess of $1,000,000;
(C) an insurance company which—
(i) is qualified under the laws of more than one State to manage, acquire, or dispose of any assets of a plan;
(ii) has, as of the last day of its latest fiscal year ending before the date of a determination for the purpose of this clause, net worth in excess of $1,000,000; and
(iii) is subject to supervision and examination by a State authority having supervision over insurance companies; or
(D) an investment adviser registered under section 203 of the Investment Advisers Act of 1940 (
(i) the investment adviser has, on such day, shareholder's or partner's equity in excess of $750,000; or
(ii) payment of all of the investment adviser's liabilities, including any liabilities which may arise by reason of a breach or violation of a duty described in
(I) a person (as defined in
(II) a qualified professional asset manager described in subparagraph (A), (B), or (C); or
(III) a broker or dealer registered under section 15 of the Securities Exchange Act of 1934 (
(9) the term "shareholder's or partner's equity", as used in paragraph (8)(D) with respect to an investment adviser or a person (as defined in
(10) the term "Small Capitalization Stock Index Investment Fund" means the Small Capitalization Stock Index Investment Fund established under subsection (b)(1)(D).
(b)(1) The Board shall establish—
(A) a Government Securities Investment Fund under which sums in the Thrift Savings Fund are invested in securities of the United States Government issued as provided in subsection (e);
(B) a Fixed Income Investment Fund under which sums in the Thrift Savings Fund are invested in—
(i) insurance contracts;
(ii) certificates of deposits; or
(iii) other instruments or obligations selected by qualified professional asset managers,
which return the amount invested and pay interest, at a specified rate or rates, on that amount during a specified period of time;
(C) a Common Stock Index Investment Fund as provided in paragraph (2);
(D) a Small Capitalization Stock Index Investment Fund as provided in paragraph (3);
(E) an International Stock Index Investment Fund as provided in paragraph (4); and
(F) a service that enables participants to invest in mutual funds, if the Board authorizes the mutual fund window under paragraph (5).
(2)(A) The Board shall select an index which is a commonly recognized index comprised of common stock the aggregate market value of which is a reasonably complete representation of the United States equity markets.
(B) The Common Stock Index Investment Fund shall be invested in a portfolio designed to replicate the performance of the index selected under subparagraph (A). The portfolio shall be designed such that, to the extent practicable, the percentage of the Common Stock Index Investment Fund that is invested in each stock is the same as the percentage determined by dividing the aggregate market value of all shares of that stock by the aggregate market value of all shares of all stocks included in such index.
(3)(A) The Board shall select an index which is a commonly recognized index comprised of common stock the aggregate market value of which represents the United States equity markets excluding the common stocks included in the Common Stock Index Investment Fund.
(B) The Small Capitalization Stock Index Investment Fund shall be invested in a portfolio designed to replicate the performance of the index in subparagraph (A). The portfolio shall be designed such that, to the extent practicable, the percentage of the Small Capitalization Stock Index Investment Fund that is invested in each stock is the same as the percentage determined by dividing the aggregate market value of all shares of that stock by the aggregate market value of all shares of all stocks included in such index.
(4)(A) The Board shall select an index which is a commonly recognized index comprised of stock the aggregate market value of which is a reasonably complete representation of the international equity markets excluding the United States equity markets.
(B) The International Stock Index Investment Fund shall be invested in a portfolio designed to replicate the performance of the index in subparagraph (A). The portfolio shall be designed such that, to the extent practicable, the percentage of the International Stock Index Investment Fund that is invested in each stock is the same as the percentage determined by dividing the aggregate market value of all shares of that stock by the aggregate market value of all shares of all stocks included in such index.
(5)(A) The Board may authorize the addition of a mutual fund window under the Thrift Savings Plan if the Board determines that such addition would be in the best interests of participants.
(B) The Board shall ensure that any expenses charged for use of the mutual fund window are borne solely by the participants who use such window.
(C) The Board may establish such other terms and conditions for the mutual fund window as the Board considers appropriate to protect the interests of participants, including requirements relating to risk disclosure.
(D) The Board shall consult with the Employee Thrift Advisory Council (established under section 8473) before authorizing the addition of a mutual fund window or establishing a service that enables participants to invest in mutual funds.
(c)(1) The Executive Director shall invest the sums available in the Thrift Savings Fund for investment as provided in elections made under subsection (d).
(2) If an election has not been made with respect to any sums available for investment in the Thrift Savings Fund, the Executive Director shall invest such sums in an age-appropriate target date asset allocation investment fund, as determined by the Executive Director. Such investment fund shall consist of any of the funds described in subsection (b).
(d)(1) At least twice each year, an employee or Member (or former employee or Member) may elect the investment funds and options referred to in subsection (b) into which the sums in the Thrift Savings Fund credited to such individual's account are to be invested or reinvested.
(2) An election may be made under paragraph (1) only in accordance with regulations prescribed by the Executive Director and within such period as the Executive Director shall provide in such regulations.
(e)(1) The Secretary of the Treasury is authorized to issue special interest-bearing obligations of the United States for purchase by the Thrift Savings Fund for the Government Securities Investment Fund.
(2)(A) Obligations issued for the purpose of this subsection shall have maturities fixed with due regard to the needs of such Fund as determined by the Executive Director, and shall bear interest at a rate equal to the average market yield (computed by the Secretary of the Treasury on the basis of market quotations as of the end of the calendar month next preceding the date of issue of such obligations) on all marketable interest-bearing obligations of the United States then forming a part of the public debt which are not due or callable earlier than 4 years after the end of such calendar month.
(B) Any average market yield computed under subparagraph (A) which is not a multiple of one-eighth of 1 percent, shall be rounded to the nearest multiple of one-eighth of 1 percent.
(f) The Board, other Government agencies, the Executive Director, an employee, a Member, a former employee, and a former Member may not exercise voting rights associated with the ownership of securities by the Thrift Savings Fund.
(g)(1) Notwithstanding subsection (e) of this section, the Secretary of the Treasury may suspend the issuance of additional amounts of obligations of the United States, if such issuances could not be made without causing the public debt of the United States to exceed the public debt limit, as determined by the Secretary of the Treasury.
(2) Any issuances of obligations to the Government Securities Investment Fund which, solely by reason of the public debt limit are not issued, shall be issued under subsection (e) by the Secretary of the Treasury as soon as such issuances can be issued without exceeding the public debt limit.
(3) Upon expiration of the debt issuance suspension period, the Secretary of the Treasury shall immediately issue to the Government Securities Investment Fund obligations under
(4) On the first business day after the expiration of any debt issuance suspension period, the Secretary of the Treasury shall pay to the Government Securities Investment Fund, from amounts in the general fund of the Treasury of the United States not otherwise appropriated, an amount equal to the excess of the net amount of interest that would have been earned by the Government Securities Investment Fund from obligations of the United States during such debt issuance suspension period if—
(A) amounts in the Government Securities Investment Fund that were available for investment in obligations of the United States and were not invested during such debt issuance suspension period solely by reason of the public debt limit had been invested under the procedure set forth in paragraph (5), over
(B) the net amount of interest actually earned by the Government Securities Investment Fund from obligations of the United States during such debt issuance suspension period.
(5) On each business day during the debt limit suspension period, the Executive Director shall notify the Secretary of the Treasury of the amounts, by maturity, that would have been invested or redeemed each day had the debt issuance suspension period not occurred.
(6) For purposes of this subsection and subsection (h) of this section—
(A) the term "public debt limit" means the limitation imposed by
(B) the term "debt issuance suspension period" means any period for which the Secretary of the Treasury determines for purposes of this subsection that the issuance of obligations of the United States may not be made without exceeding the public debt limit.
(h)(1) The Secretary of the Treasury shall report to Congress on the operation and status of the Thrift Savings Fund during each debt issuance suspension period for which the Secretary is required to take action under paragraph (3) or (4) of subsection (g) of this section. The report shall be submitted as soon as possible after the expiration of such period, but not later than 30 days after the first business day after the expiration of such period. The Secretary shall concurrently transmit a copy of such report to the Executive Director.
(2) Whenever the Secretary of the Treasury determines that, by reason of the public debt limit, the Secretary will be unable to fully comply with the requirements of subsection (e) of this section, the Secretary shall immediately notify Congress and the Executive Director of the determination. The notification shall be made in writing.
(Added
Editorial Notes
Amendments
2015—Subsec. (c)(2).
2014—Subsec. (c)(2).
2009—Subsec. (b)(1)(F).
Subsec. (b)(5).
Subsec. (d)(1).
1996—Subsec. (a).
Subsec. (b).
Subsec. (h)(1).
1992—Subsec. (a)(7)(B).
1990—Subsec. (b)(1)(A).
Subsec. (c)(1).
Subsec. (d)(1).
Subsec. (e).
Subsec. (f).
Subsec. (g).
Subsecs. (h), (i).
1988—Subsec. (e)(3)(A).
1987—Subsecs. (h), (i).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment; Implementation
Amendment by
Effective Date of 2014 Amendment
"(1) take effect on the date that the Executive Director issues guidance under subsection (d) [guidance published Aug. 28, 2015, effective Sept. 5, 2015, see section 2(d) of
"(2) apply to individuals enrolled in the Thrift Savings Plan on or after such date."
Effective Date of 1996 Amendment
Section 101(f) [title VI, §659 [title I, §104]] provided that: "This title [title I (§§101–104) of section 659 of section 101(f) of
Effective Date of 1990 Amendment
Amendment by
Effective Date of 1988 Amendment
Guidance
[Guidance issued in the form of a final rule published Aug. 28, 2015, effective Sept. 5, 2015, see 80 F.R. 52173.]
Removal of Investment Restrictions
§8439. Accounting and information
(a)(1) The Executive Director shall establish and maintain an account for each individual who makes contributions or for whom contributions are made under
(2) The balance in an individual's account at any time is the excess of—
(A) the sum of—
(i) all contributions made to the Thrift Savings Fund by the individual;
(ii) all contributions made to such Fund for the benefit of the individual; and
(iii) the total amount of the allocations made to and reductions made in the account pursuant to paragraph (3), over
(B) the amounts paid out of the Thrift Savings Fund with respect to such individual under this subchapter.
(3) Pursuant to regulations prescribed by the Executive Director, the Executive Director shall allocate to each account an amount equal to a pro rata share of the net earnings and net losses from each investment of sums in the Thrift Savings Fund attributable to sums credited to such account, reduced by an appropriate share of the administrative expenses paid out of the net earnings under
(b)(1) For the purposes of this subsection, the term "qualified public accountant" shall have the same meaning as provided in section 103(a)(3)(D) of the Employee Retirement Income Security Act of 1974 (
(2) The Executive Director shall annually engage, on behalf of all individuals for whom an account is maintained, an independent qualified public accountant, who shall conduct an examination of all accounts and other books and records maintained in the administration of this subchapter and subchapter VII as the public accountant considers necessary to enable the public accountant to make the determination required by paragraph (3). The examination shall be conducted in accordance with generally accepted auditing standards and shall involve such tests of the accounts, books, and records as the public accountant considers necessary.
(3) The public accountant conducting an examination under paragraph (2) shall determine whether the accounts, books, and records referred to in such paragraph have been maintained in conformity with generally accepted accounting principles applied on a basis consistent with the manner in which such principles were applied during the examination conducted under such paragraph during the preceding year. The public accountant shall transmit to the Board a report on his examination, including his determination under this paragraph.
(4) In making a determination under paragraph (3), a public accountant may rely on the correctness of any actuarial matter certified by an enrolled actuary if the public accountant states his reliance in the report transmitted to the Board under such paragraph.
(c)(1) The Board shall prescribe regulations under which each individual for whom an account is maintained shall be furnished with—
(A) a periodic statement relating to the individual's account; and
(B) a summary description of the investment options under
(2) Information under this subsection shall be provided on a regular basis, and in a manner designed to facilitate informed decisionmaking with respect to elections under
(d)(1) Each employee, Member, former employee, or former Member who elects to invest in any investment fund or option under this chapter, other than the Government Securities Investment Fund, shall sign an acknowledgement prescribed by the Executive Director which states that the employee, Member, former employee, or former Member understands that an investment in any such fund or option is made at the employee's, Member's, former employee's, or former Member's risk, that the employee, Member, former employee, or former Member is not protected by the Government against any loss on such investment, and that a return on such investment is not guaranteed by the Government.
(2) Prior to enrollment in the Thrift Savings Fund, or as soon as practicable thereafter, an individual who is automatically enrolled pursuant to section 8432(b)(2) shall receive the risk acknowledgment information described under paragraph (1).
(Added
Editorial Notes
Amendments
2014—Subsec. (d).
2009—Subsec. (d).
2004—Subsec. (c)(2).
2000—Subsec. (a)(1).
Subsec. (c)(2).
1999—Subsec. (a)(1).
Subsec. (a)(2)(A)(i).
Subsec. (a)(2)(A)(ii).
1996—Subsec. (b)(3).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2000 Amendment
Amendment by
Effective Date of 1999 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Reporting Requirements
"(a)
"(b)
"(1)
"(2)
"(c)
"(1) the term 'Board' has the meaning given such term by 8401(5) of
"(2) the term 'participant' has the meaning given such term by
"(3) the term 'account' means an account established under
§8440. Tax treatment of the Thrift Savings Fund
(a) For purposes of the Internal Revenue Code of 1986—
(1) the Thrift Savings Fund shall be treated as a trust described in section 401(a) of such Code which is exempt from taxation under section 501(a) of such Code;
(2) any contribution to, or distribution from, the Thrift Savings Fund shall be treated in the same manner as contributions to or distributions from such a trust; and
(3) subject to section 401(k)(4)(B) of such Code and any dollar limitation on the application of section 402(a)(8) of such Code, contributions to the Thrift Savings Fund shall not be treated as distributed or made available to an employee or Member nor as a contribution made to the Fund by an employee or Member merely because the employee or Member has, under the provisions of this subchapter and
(b)
(c) Subsection (a) shall not be construed to provide that any amount of the employee's or Member's basic pay which is contributed to the Thrift Savings Fund shall not be included in the term "wages" for the purposes of section 209 of the Social Security Act or section 3121(a) of the Internal Revenue Code of 1986.
(Added
Editorial Notes
References in Text
The Internal Revenue Code of 1986, referred to in subsecs. (a) and (c), is classified generally to Title 26, Internal Revenue Code.
Section 209 of the Social Security Act, referred to in subsec. (c), is classified to
Amendments
1994—Subsecs. (a), (c).
1992—Subsec. (a)(3).
1988—Subsec. (a)(3).
1987—Subsec. (a)(3).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by
§8440a. Justices and judges
(a)(1) A justice or judge of the United States as defined by
(2) An election may be made under paragraph (1) as provided under section 8432(b) for individuals subject to this chapter.
(b)(1) Except as otherwise provided in this subsection, the provisions of this subchapter and subchapter VII shall apply with respect to justices and judges making contributions to the Thrift Savings Fund.
(2) The amount contributed by a justice or judge for any pay period shall not exceed the maximum percentage of such justice's or judge's basic pay for such pay period allowable under section 8440f.
(3) No contributions shall be made for the benefit of a justice or judge under
(4)
(5)
(6) The provisions of
(7) Notwithstanding paragraphs (4) and (5), if any justice or judge retires under subsection (a) or (b) of section 371 or
(Added
Editorial Notes
Codification
Another section 8440a was renumbered
Amendments
2004—Subsec. (a)(2).
2000—Subsec. (a)(2).
Subsec. (b)(2).
1996—Subsec. (b)(7).
1994—Subsec. (b)(5).
Subsec. (b)(6).
Subsec. (b)(7), (8).
"(7) Notwithstanding paragraph (5), if any justice or judge who elects to make contributions to the Thrift Savings Fund under subsection (a) resigns without having met the age and service requirements set forth in
"(8) Notwithstanding paragraph (4), if any justice or judge retires under subsection (a) or (b) of section 371 or
1992—Subsec. (b)(1).
1990—Subsec. (b)(6).
Subsec. (b)(7), (8).
Statutory Notes and Related Subsidiaries
Effective Date of 2000 Amendment
Amendment by
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1990 Amendment
Amendment by section 3(b)(2) of
Amendment by section 6(b)(2) of
§8440b. Bankruptcy judges and magistrate judges
(a)(1) A bankruptcy judge or magistrate judge who is covered by
(2) An election may be made under paragraph (1) as provided under section 8432(b) for individuals subject to this chapter.
(b)(1) Except as otherwise provided in this subsection, the provisions of this subchapter and subchapter VII shall apply with respect to bankruptcy judges and magistrate judges who make contributions to the Thrift Savings Fund under subsection (a) of this section.
(2) The amount contributed by a bankruptcy judge or magistrate judge for any pay period shall not exceed the maximum percentage of such bankruptcy judge's or magistrate judge's basic pay for such pay period allowable under section 8440f.
(3) No contributions shall be made under
(4)(A)
(B)
(C)
(5) With respect to bankruptcy judges and magistrate judges to whom this section applies, any of the actions described under paragraph (4)(A), (B), or (C) shall be considered a separation from service for purposes of this subchapter and subchapter VII.
(6) For purposes of this section, the terms "retirement" and "retire" include removal from office under
(7) In the case of a bankruptcy judge or magistrate judge who receives a distribution from the Thrift Savings Plan and who later receives an annuity under
(8) Notwithstanding paragraph (4), if any bankruptcy judge or magistrate judge retires under circumstances making such bankruptcy judge or magistrate judge eligible to make an election under subsection (b) of section 8433, and such bankruptcy judge's or magistrate judge'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.
(Added
Editorial Notes
References in Text
Section 2(c) of the Retirement and Survivors' Annuities for Bankruptcy Judges and Magistrates Act of 1988, referred to in subsecs. (a)(1) and (b)(4), is section 2(c) of
Codification
Another section 8440b was renumbered
Amendments
2004—Subsec. (a)(2).
Subsec. (b)(2).
Subsec. (b)(4)(B).
Subsec. (b)(8).
2000—Subsec. (b)(2).
1996—Subsec. (b)(7).
Subsec. (b)(8).
1994—Subsec. (b)(4)(B).
Subsec. (b)(4)(C).
Subsec. (b)(5).
Subsec. (b)(8).
Subsec. (b)(9).
1990—
Subsec. (b)(7).
Subsec. (b)(8), (9).
Statutory Notes and Related Subsidiaries
Change of Name
Words "magistrate judge", "magistrate judges", and "magistrate judge's" substituted for "magistrate", "magistrates", and "magistrate's", respectively, in section catchline and in subsecs. (a)(1) and (b)(1)–(3), (4)(A), (C), (5), (7), and (8), pursuant to section 321 of
Effective Date of 1996 Amendment
Amendment by
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1990 Amendment
Amendment by section 3(b)(3) of
Amendment by section 6(b)(3) of