US (United States) Code. Title 5. Part III: Employees. Subpart G: Insurance and annuities. Chapter 84: Federal

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-CITE-

5 USC CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

.

-HEAD-

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

-MISC1-

SUBCHAPTER I - GENERAL PROVISIONS

Sec.

8401. Definitions.

8402. Federal Employees' Retirement System; exclusions.

8403. Relationship to the Social Security Act.

SUBCHAPTER II - BASIC ANNUITY

8410. Eligibility for annuity.

8411. Creditable service.

8412. Immediate retirement.

8413. Deferred retirement.

8414. Early retirement.

8415. Computation of basic annuity.

8416. Survivor reduction for a current spouse.

8417. Survivor reduction for a former spouse.

8418. Survivor elections; deposit; offsets.

8419. Survivor reductions; computation.

8420. Insurable interest reductions.

8420a. Alternative forms of annuities.

8421. Annuity supplement.

8421a. Reductions on account of earnings from work performed while

entitled to an annuity supplement.

8422. Deductions from pay; contributions for other service.

8423. Government contributions.

8424. Lump-sum benefits; designation of beneficiary; order of

precedence.

8425. Mandatory separation.

SUBCHAPTER III - THRIFT SAVINGS PLAN

8431. Certain transfers to be treated as a separation.

8432. Contributions.

8432a. Payment of lost earnings.

8432b. Contributions of persons who perform military service.

8432c. Contributions of certain persons reemployed after service

with international organizations.

8433. Benefits and election of benefits.

8434. Annuities: methods of payment; election; purchase.

8435. Protections for spouses and former spouses.

8436. Administrative provisions.

8437. Thrift Savings Fund.

8438. Investment of Thrift Savings Fund.

8439. Accounting and information.

8440. Tax treatment of the Thrift Savings Fund.

8440a. Justices and judges.

8440b. Bankruptcy judges and magistrate judges.

8440c. Court of Federal Claims judges.

8440d. Judges of the United States Court of Appeals for Veterans

Claims.

8440e. Members of the uniformed services.

8440f. Maximum percentage allowable for certain participants.

SUBCHAPTER IV - SURVIVOR ANNUITIES

8441. Definitions.

8442. Rights of a widow or widower.

8443. Rights of a child.

8444. Rights of a named individual with an insurable interest.

8445. Rights of a former spouse.

SUBCHAPTER V - DISABILITY BENEFITS

8451. Disability retirement.

8452. Computation of disability annuity.

8453. Application.

8454. Medical examination.

8455. Recovery; restoration of earning capacity.

8456. Military reserve technicians.

SUBCHAPTER VI - GENERAL AND ADMINISTRATIVE PROVISIONS

8461. Authority of the Office of Personnel Management.

8462. Cost-of-living adjustments.

8463. Rate of benefits.

8464. Commencement and termination of annuities of employees and

Members.

8464a. Relationship between annuity and workers' compensation.

8465. Waiver, allotment, and assignment of benefits.

8466. Application for benefits.

8467. Court orders.

8468. Annuities and pay on reemployment.

8469. Withholding of State income taxes.

8470. Exemption from legal process; recovery of payments.

SUBCHAPTER VII - FEDERAL RETIREMENT THRIFT INVESTMENT MANAGEMENT

SYSTEM

8471. Definitions.

8472. Federal Retirement Thrift Investment Board.

8473. Employee Thrift Advisory Council.

8474. Executive Director.

8475. Investment policies.

8476. Administrative provisions.

8477. Fiduciary responsibilities; liability and penalties.

8478. Bonding.

8478a. Investigative authority.

8479. Exculpatory provisions; insurance.

AMENDMENTS

2001 - Pub. L. 107-107, div. A, title XI, Sec. 1132(b)(2)(C),

Dec. 28, 2001, 115 Stat. 1244, substituted ''other service'' for

''military service'' in item 8422.

2000 - Pub. L. 106-554, Sec. 1(a)(4) (div. B, title I, Sec.

138(a)(7)(B)), Dec. 21, 2000, 114 Stat. 2763, 2763A-234, added item

8440f.

1999 - Pub. L. 106-168, title II, Sec. 203(a)(2), Dec. 12, 1999,

113 Stat. 1820, added item 8431.

Pub. L. 106-113, div. B, Sec. 1000(a)(7) (div. A, title III,

Sec. 334(b)), Nov. 29, 1999, 113 Stat. 1536, 1501A-441, added item

8432c.

Pub. L. 106-65, div. A, title VI, Sec. 661(a)(2)(B), 663, Oct.

5, 1999, 113 Stat. 671, 673, as amended by Pub. L. 106-398, Sec. 1

((div. A), title VI, Sec. 661(a)), Oct. 30, 2000, 114 Stat. 1654,

1654A-167, added item 8440e, effective 180 days after Oct. 30,

2000, unless postponed.

1998 - Pub. L. 105-368, title V, Sec. 512(b)(2)(B), Nov. 11,

1998, 112 Stat. 3342, substituted ''Judges of the United States

Court of Appeals for Veterans Claims'' for ''Judges of the United

States Court of Veterans Appeals'' in item 8440d.

1996 - Pub. L. 104-208, div. A, title I, Sec. 101(f) (title VI,

Sec. 659 (title II, Sec. 206(b)(1))), Sept. 30, 1996, 110 Stat.

3009-314, 3009-372, 3009-378, struck out item 8431 ''Definition''.

1994 - Pub. L. 103-353, Sec. 4(a)(2), Oct. 13, 1994, 108 Stat.

3172, added item 8432b.

1992 - Pub. L. 102-572, title IX, Sec. 902(b)(2), Oct. 29, 1992,

106 Stat. 4516, substituted ''Court of Federal Claims'' for

''Claims Court'' in item 8440c.

Pub. L. 102-378, Sec. 5(d)(2), Oct. 2, 1992, 106 Stat. 1358,

amended directory language of Pub. L. 101-198, Sec. 7(c)(4)(B). See

1991 Amendment note below.

1991 - Pub. L. 102-198, Sec. 7(c)(2), Dec. 9, 1991, 105 Stat.

1625, redesignated item 8440b ''Claims Court judges'' as item

8440c.

Pub. L. 102-198, Sec. 7(c)(4)(B), Dec. 9, 1991, 105 Stat. 1625,

as amended by Pub. L. 102-378, Sec. 5(d)(2), Oct. 2, 1992, 106

Stat. 1358, redesignated item 8440c ''Judges of the United States

Court of Veterans Appeals'' as item 8440d.

Pub. L. 102-82, Sec. 5(a)(2), Aug. 6, 1991, 105 Stat. 376, added

item 8440c ''Judges of the United States Court of Veterans

Appeals''.

1990 - Pub. L. 101-650, title III, Sec. 306(d)(2), Dec. 1, 1990,

104 Stat. 5111, which directed the amendment of the table of

sections for this chapter by adding at the end thereof item 8440b

''Claims Court judges'', was executed by adding that item after the

first item 8440b.

Pub. L. 101-335, Sec. 2(a)(2), 9(b), July 17, 1990, 104 Stat.

320, 326, added item 8432a and redesignated item 8440a ''Bankruptcy

judges and magistrates'' as item 8440b.

1988 - Pub. L. 100-659, Sec. 7(b), Nov. 15, 1988, 102 Stat. 3920,

added item 8440a ''Bankruptcy judges and magistrates''.

Pub. L. 100-654, title IV, Sec. 401(b), Nov. 14, 1988, 102 Stat.

3847, added item 8440a ''Justices and judges''.

Pub. L. 100-238, title I, Sec. 124(a)(2), (b)(2), Jan. 8, 1988,

101 Stat. 1756, added item 8464a, redesignated item 8457 as 8456,

and struck out former item 8456 ''Relationship to workers'

compensation''.

1986 - Pub. L. 99-556, title I, Sec. 110(b), Oct. 27, 1986, 100

Stat. 3132, added item 8478a.

-CHANGE-

CHANGE OF NAME

Words ''magistrate judges'' substituted for ''magistrates'' in

item 8440b pursuant to section 321 of Pub. L. 101-650, set out as a

note under section 631 of Title 28, Judiciary and Judicial

Procedure.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 2105, 3329, 5304, 5362,

5541, 5597, 5724, 8116, 8342, 8344, 8347, 8348, 8350, 8351, 8432c,

8901, 9001 of this title; title 2 sections 60c-5, 92, 162b, 2064;

title 7 section 7657; title 10 section 942; title 20 section 4416;

title 22 sections 3649, 3658, 3664, 3673, 3951, 4009, 4064, 4067,

4069, 4071, 4071c, 4071d, 4071h, 7002; title 25 section 450i; title

26 sections 3121, 6103; title 28 sections 155, 178, 364, 375, 376,

377, 611, 627, 636, 753, 797; title 31 sections 732a, 772; title 37

section 211; title 38 sections 7257, 7297, 7438, 7453, 7458; title

39 section 1005; title 42 sections 402, 410, 3020e-1, 7237, 10704;

title 49 sections 40122, 49107; title 50 sections 409a, 2021, 2151,

2152, 2153, 2154, 2155, 2157, 2442.

-CITE-

5 USC SUBCHAPTER I - GENERAL PROVISIONS 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER I - GENERAL PROVISIONS

.

-HEAD-

SUBCHAPTER I - GENERAL PROVISIONS

-CITE-

5 USC Sec. 8401 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER I - GENERAL PROVISIONS

-HEAD-

Sec. 8401. Definitions

-STATUTE-

For the purpose of this chapter -

(1) the term ''account'' means an account established and

maintained under section 8439(a) of this title;

(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 section 8472(a) of this title;

(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 section 8331(1) of this title;

(B) a Congressional employee as defined in section 2107 of

this title, including a temporary Congressional employee and an

employee of the Congressional Budget Office; and

(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 chapter

21 of the Internal Revenue Code of 1986, except that such term

does not include -

(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 section 8402(c) of this

title;

(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 (chapter 47 of title 10) require frequent direct

contact with these individuals in their detention and are

sufficiently rigorous that employment opportunities should be

limited to young and physically vigorous individuals, as

determined by the head of the employing agency;

(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. (FOOTNOTE

1)

(FOOTNOTE 1) So in original. The period probably should be a

semicolon.

(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 section 8422(a) of this title (or

under section 204 of the Federal Employees' Retirement

Contribution Temporary Adjustment Act of 1983);

(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); 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;

(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 section 10216 of title 10;

(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;

but does not include service in the National Guard except when

ordered to active duty in the service of the United States or

full-time National Guard duty (as such term is defined in section

101(d) of title 10) if such service interrupts creditable

civilian service under this subchapter and is followed by

reemployment in accordance with chapter 43 of title 38 that

occurs on or after August 1, 1990;

(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); and

(34) the term ''Government physician'' has the meaning given

such term under section 5948.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 517; amended Pub. L. 99-556, title I, Sec. 107, 109, 119,

Oct. 27, 1986, 100 Stat. 3132, 3134; Pub. L. 100-238, title I, Sec.

103(a)(2), (c), (d)(2), 113(b)(1), Jan. 8, 1988, 101 Stat. 1744,

1745, 1750; Pub. L. 100-679, Sec. 13(a)(2), Nov. 17, 1988, 102

Stat. 4071; Pub. L. 101-335, Sec. 6(a)(1), July 17, 1990, 104 Stat.

322; Pub. L. 101-474, Sec. 5(o), Oct. 30, 1990, 104 Stat. 1100;

Pub. L. 101-508, title VII, Sec. 7202(k)(1), Nov. 5, 1990, 104

Stat. 1388-338; Pub. L. 103-337, div. A, title XVI, Sec.

1677(a)(4), Oct. 5, 1994, 108 Stat. 3019; Pub. L. 103-353, Sec.

5(c), (e)(1), Oct. 13, 1994, 108 Stat. 3174; Pub. L. 104-208, div.

A, title I, Sec. 101(f) (title VI, Sec. 659 (title II, Sec.

206(a)(1))), Sept. 30, 1996, 110 Stat. 3009-314, 3009-372,

3009-378; Pub. L. 105-261, div. C, title XXXI, Sec. 3154(f), Oct.

17, 1998, 112 Stat. 2255; Pub. L. 106-65, div. A, title V, Sec.

522(c)(2), Oct. 5, 1999, 113 Stat. 597; Pub. L. 106-571, Sec.

3(c)(2), Dec. 28, 2000, 114 Stat. 3056.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in par. (11), is act Aug.

14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of the

Social Security Act is classified generally to subchapter II (Sec.

401 et seq.) of chapter 7 of Title 42, The Public Health and

Welfare. For complete classification of this Act to the Code, see

section 1305 of Title 42 and Tables.

Chapter 21 of the Internal Revenue Code of 1986, referred to in

par. (11), is classified to chapter 21 (Sec. 3101 et seq.) of Title

26, Internal Revenue Code.

Section 103(6) of the Foreign Service Act of 1980, referred to in

par. (11)(iii), is classified to section 3903(6) of Title 22,

Foreign Relations and Intercourse.

The Federal Employees' Retirement System Act of 1986, referred to

in par. (17)(B), is Pub. L. 99-335, June 6, 1986, 100 Stat. 514, as

amended. For complete classification of this Act to the Code, see

Short Title note set out under section 8401 of this title and

Tables.

The Federal Employees' Retirement Contribution Temporary

Adjustment Act of 1983, referred to in pars. (19)(A) and

(27)(B)(iii)(II), is Pub. L. 98-168, title II, Nov. 29, 1983, 97

Stat. 1106, as amended, which is set out as a note under section

8331 of this title.

-MISC2-

AMENDMENTS

2000 - Par. (34). Pub. L. 106-571 added par. (34).

1999 - Par. (30). Pub. L. 106-65 amended par. (30) generally.

Prior to amendment, par. (30) read as follows: ''the term 'military

reserve technician' means a member of one of the reserve components

of the armed forces specified in section 10101 of title 10 who -

''(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). Pub. L. 105-261 added par. (33).

1996 - Par. (4). Pub. L. 104-208 struck out ''except as provided

in subchapter III of this chapter,'' before ''the term''.

1994 - Par. (11). Pub. L. 103-353, Sec. 5(e)(1), in flush

provisions before cl. (i), substituted ''Internal Revenue Code of

1986'' for ''Internal Revenue Code of 1954''.

Par. (30). Pub. L. 103-337 substituted ''section 10101'' for

''section 261(a)'' in introductory provisions.

Par. (31). Pub. L. 103-353, Sec. 5(c), in closing provisions,

inserted before semicolon ''or full-time National Guard duty (as

such term is defined in section 101(d) of title 10) if such service

interrupts creditable civilian service under this subchapter and is

followed by reemployment in accordance with chapter 43 of title 38

that occurs on or after August 1, 1990''.

1990 - Par. (11)(C). Pub. L. 101-508, Sec.

7202(k)(1)(A)(i)-(iii), added subpar. (C).

Par. (11)(i)(I). Pub. L. 101-474 struck out ''(v),'' after

''(i),''.

Par. (11)(iv). Pub. L. 101-508, Sec. 7202(k)(1)(A)(iv)-(vi),

added cl. (iv).

Par. (15). Pub. L. 101-508, Sec. 7202(k)(1)(B), substituted '',

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);'' for ''and Gallaudet College;''.

Par. (32). Pub. L. 101-335 added par. (32).

1988 - Par. (11)(A). Pub. L. 100-679 substituted ''(J), or (K)''

for ''or (J)''.

Par. (11)(i)(II). Pub. L. 100-238, Sec. 103(d)(2), struck out

''(other than an employee of the United States Park Police, or the

United States Secret Service, whose civilian service after December

31, 1983, is such employment)''.

Par. (11)(iii). Pub. L. 100-238, Sec. 113(b)(1), added cl. (iii).

Par. (14)(A)(ii). Pub. L. 100-238, Sec. 103(a)(2), substituted

''should be'' for ''are required to be''.

Par. (14)(B). Pub. L. 100-238, Sec. 103(c)(2), substituted ''for

at least 3 years'' for ''for at least 10 years''.

Par. (17). Pub. L. 100-238, Sec. 103(a)(2), (c)(1), in subpar.

(A)(ii), substituted ''should be'' for ''are required to be'',

added subpar. (B), redesignated former subpar. (B) as (C) and

amended it generally, substituting ''subparagraph (A) and (B) for

at least 3 years'' for ''subparagraph (A) for at least 10 years'',

redesignated former subpar. (C) as (D), and in concluding

provisions, substituted ''should be'' for ''are required to be''.

1986 - Par. (11). Pub. L. 99-556, Sec. 119, struck out ''any of''

before ''whose civilian service'' in two places.

Par. (18). Pub. L. 99-556, Sec. 109, amended par. (18)

generally. Prior to amendment, par. (18) read as follows: ''the

term 'loss', when used with respect to the Thrift Savings Fund,

means the amount of the loss resulting from the investment of sums

in such Fund;''.

Par. (19)(C), (D). Pub. L. 99-556, Sec. 107, added subpar. (C)

and redesignated former subpar. (C) as (D).

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-261 effective at the beginning of the

first pay period that begins after Oct. 17, 1998, and applicable

only to an individual who is employed as a nuclear materials

courier, as defined by section 8331(27) or 8401(33) of this title,

after Oct. 17, 1998, see section 3154(m), (n) of Pub. L. 105-261,

set out as a note under section 8331 of this title.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-208 effective Sept. 30, 1996, and

withdrawals and elections as provided under such amendment to be

made at earliest practicable date as determined by Executive

Director in regulations, see section 101(f) (title VI, Sec. 659

(title II, Sec. 207)) of Pub. L. 104-208, set out as a note under

section 5545a of this title.

EFFECTIVE DATE OF 1994 AMENDMENTS

Amendment by Pub. L. 103-353 effective with respect to

reemployments initiated on or after the first day after the 60-day

period beginning Oct. 13, 1994, with transition rules, see section

8 of Pub. L. 103-353, set out as an Effective Date note under

section 4301 of Title 38, Veterans' Benefits.

Amendment by Pub. L. 103-337 effective Dec. 1, 1994, except as

otherwise provided, see section 1691 of Pub. L. 103-337, set out as

an Effective Date note under section 10001 of Title 10, Armed

Forces.

EFFECTIVE DATE OF 1990 AMENDMENTS

Amendment by Pub. L. 101-508 applicable with respect to any

individual who, on or after Jan. 1, 1987, moves from employment in

nonappropriated fund instrumentality of Department of Defense or

Coast Guard, that is described in section 2105(c) of this title, to

employment in Department or Coast Guard, that is not described in

section 2105(c), or who moves from employment in Department or

Coast Guard, that is not described in section 2105(c), to

employment in nonappropriated fund instrumentality of Department or

Coast Guard, that is described in section 2105(c), see section

7202(m)(1) of Pub. L. 101-508, set out as a note under section 2105

of this title.

Amendment by Pub. L. 101-335 effective as of second election

period described in section 8432(b) of this title beginning after

July 17, 1990, or such earlier date as Executive Director may by

regulation prescribe, and applicable with respect to separations

occurring before, on, or after that effective date, see section

6(c) of Pub. L. 101-335, set out as a note under section 8351 of

this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by section 103(a)(2), (c), and (d)(2) of Pub. L.

100-238, effective Jan. 1, 1987, see section 103(f) of Pub. L.

100-238, set out as a note under section 3307 of this title.

Section 113(b)(2) of Pub. L. 100-238 provided that: ''The

amendments made by paragraph (1) (amending this section) shall be

effective as of January 1, 1987. Any refund which becomes payable

as a result of the preceding sentence shall, to the extent that

such refund involves an individual's contributions to the Thrift

Savings Fund (established under section 8437 of title 5, United

States Code), be adjusted to reflect any earnings attributable

thereto.''

EFFECTIVE DATE

Section 702(a), (b) of Pub. L. 99-335 provided that:

''(a) In General. - Except as provided in subsection (b), this

Act and the amendments made by this Act (see Short Title note

below) shall take effect on January 1, 1987.

''(b) Exceptions. - (1) Subchapter VII of chapter 84 of title 5,

United States Code, as added by section 101 of this Act, shall take

effect on the date of the enactment of this Act (June 6, 1986).

''(2) Except as provided in section 305 of this Act (enacting and

amending provisions set out as notes under section 8331 of this

title), title III of this Act, and the amendments made by such

title (amending sections 3121 and 6103 of Title 26, Internal

Revenue Code, section 1005 of Title 39, Postal Service, and section

410 of Title 42, The Public Health and Welfare, enacting provisions

set out as notes under this section and sections 8331, 8432, and

8472 of this title and section 6103 of Title 26, and amending

provisions set out as a note under section 8331 of this title),

shall take effect on the date of the enactment of this Act.

''(3) The amendments made by sections 204 and 205 of this Act

(enacting sections 8343a and 8350 of this title and amending

section 8342 of this title) shall take effect on the date of the

enactment of this Act.

''(4) Section 701 of this Act (enacting provisions set out as a

note under section 8472 of this title) shall take effect on the

date of the enactment of this Act.

''(5) Sections 505 (amending provisions formerly set out as a

note under section 403 of Title 50, War and National Defense) and

601 of this Act and the amendments made by such section 601 (not

classified to the Code) shall take effect on the date of the

enactment of this Act.''

Reference to a specific date in section 702(a) of Pub. L. 99-335,

set out above, for certain purposes, deemed to be a reference to

the first day of the first pay period beginning after such date, or

to the day before such day, as appropriate, see section 505 of Pub.

L. 99-556, set out as a Coordination With Pay Periods note under

section 8331 of this title.

SHORT TITLE OF 1999 AMENDMENT

Pub. L. 106-168, title II, Sec. 201, Dec. 12, 1999, 113 Stat.

1817, provided that: ''This title (enacting section 8431 of this

title, amending sections 8351, 8402, and 8411 of this title, and

enacting provisions set out as notes under sections 8402 and 8431

of this title) may be cited as the 'Federal Reserve Board

Retirement Portability Act'.''

SHORT TITLE OF 1998 AMENDMENT

Pub. L. 105-274, Sec. 1, Oct. 21, 1998, 112 Stat. 2419, provided

that: ''This Act (amending section 8402 of this title and enacting

provisions set out as a note under section 8402 of this title) may

be cited as the 'District of Columbia Courts and Justice Technical

Corrections Act of 1998'.''

SHORT TITLE OF 1996 AMENDMENT

Section 101(f) (title VI, Sec. 659 (title I, Sec. 101)) of Pub.

L. 104-208 provided that: ''This title (title I (Sec. 101-104) of

section 659 of section 101(f) of Pub. L. 104-208, amending sections

8438 and 8439 of this title and enacting provisions set out as a

note under section 8438 of this title) may be cited as the 'Thrift

Savings Investment Funds Act of 1996'.''

Section 101(f) (title VI, Sec. 659 (title II, Sec. 201)) of Pub.

L. 104-208 provided that: ''This title (title II (Sec. 201-207) of

section 659 of section 101(f) of Pub. L. 104-208, amending this

section and sections 5545a, 8351, 8433, 8435, and 8440a to 8440c of

this title, repealing section 8431 of this title, enacting

provisions set out as notes under sections 5545a and 8433 of this

title, and amending provisions set out as a note under section 5343

of this title) may be cited as the 'Thrift Savings Plan Act of

1996'.''

SHORT TITLE OF 1990 AMENDMENT

Section 1 of Pub. L. 101-335 provided that: ''This Act (enacting

section 8432a of this title, amending this section and sections

3392, 8351, 8433 to 8435, 8438, 8440a, 8440b, and 8477 of this

title, renumbering former section 8440a of this title as section

8440b, enacting provisions set out as notes under sections 3392,

8351, 8432a, 8433, 8434, and 8438 of this title, and amending

provisions set out as a note under section 8477 of this title) may

be cited as the 'Thrift Savings Plan Technical Amendments Act of

1990'.''

SHORT TITLE OF 1987 AMENDMENT

Pub. L. 100-43, Sec. 1, May 22, 1987, 101 Stat. 315, provided:

''That this Act (amending section 8438 of this title) may be cited

as the 'Thrift Savings Fund Investment Act of 1987'.''

SHORT TITLE OF 1986 AMENDMENT

Section 1 of Pub. L. 99-556 provided that: ''This Act (enacting

section 8478a of this title and section 4069 of Title 22, Foreign

Relations and Intercourse, amending this section and sections 6301,

8332, 8350, 8402, 8411 to 8413, 8415, 8421a, 8442, 8443, 8452,

8457, 8461, 8462, 8477, 8478, and 8901 of this title and sections

4046, 4064, 4071c, 4071d, and 4071j of Title 22, enacting

provisions set out as notes under sections 6301, 8331, 8332, 8335,

8341, 8477, and 8478 of this title and section 4046 of Title 22,

and amending provisions set out as notes under sections 8331 and

8341 of this title) may be cited as the 'Federal Employees'

Retirement System Technical Corrections Act of 1986'.''

SHORT TITLE

Section 100(a) of Pub. L. 99-335 provided that: ''This Act

(enacting this chapter, sections 8343a, 8349, 8350, and 8351 of

this title, and sections 4068 and 4071 to 4071k of Title 22,

Foreign Relations and Intercourse, amending sections 2105, 2109,

5102, 5314, 6301, 6303, 8116, 8331, 8332, 8334, 8342, 8347, 8348,

8701, 8706, 8714, 8714b, 8714c, 8901, and 8905 of this title,

section 1605 of Title 10, Armed Forces, sections 4041 to 4049, 4054

to 4056, 4058, 4060, 4061, 4063, 4064, 4066, and 4067 of Title 22,

sections 3121 and 6103 of Title 26, Internal Revenue Code, section

1005 of Title 39, Postal Service, and section 410 of Title 42, The

Public Health and Welfare, enacting provisions set out as notes

under this section and sections 8331, 8351, 8432, and 8472 of this

title, sections 3901 and 4046 of Title 22, and section 6103 of

Title 26, and amending provisions set out as notes under section

8331 of this title and sections 402 and 403 of Title 50, War and

National Defense) may be cited as the 'Federal Employees'

Retirement System Act of 1986'.''

-TRANS-

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

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.

-MISC5-

SERVICE AS LAW ENFORCEMENT OFFICER

Pub. L. 104-52, title VI, Sec. 640, Nov. 19, 1995, 109 Stat. 513,

as amended by Pub. L. 104-208, div. A, title I, Sec. 101(f) (title

VI, Sec. 629(a)), Sept. 30, 1996, 110 Stat. 3009-314, 3009-362,

provided that: ''Hereafter, service performed during the period

January 1, 1984, through December 31, 1986, which would, if

performed after that period, be considered service as a law

enforcement officer, as defined in section 8401(17)(A)(i)(II) and

(B) of title 5, United States Code, shall be deemed service as a

law enforcement officer for the purposes of chapter 84 of such

title.''

(Pub. L. 104-208, div. A, title I, Sec. 101(f) (title VI, Sec.

629(b)), Sept. 30, 1996, 110 Stat. 3009-314, 3009-362, provided

that: ''The amendment made by subsection (a) (amending section 640

of Pub. L. 104-52, set out above) shall take effect as if included

in Public Law 104-52 on the date of its enactment (Nov. 19,

1995).'')

CONGRESSIONAL DECLARATION OF PURPOSE

Section 100A of Pub. L. 99-335 provided that: ''The purposes of

this Act (see Short Title note above) are -

''(1) to establish a Federal employees' retirement plan which

is coordinated with title II of the Social Security Act (42

U.S.C. 401 et seq.);

''(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

Section 307 of Pub. L. 99-335, as amended by Pub. L. 100-366,

Sec. 1, July 13, 1988, 102 Stat. 826, provided that:

''Notwithstanding any other provision of law, the normal-cost

percentage (as defined by section 8401(23) of title 5, United

States Code, as added by this Act) of the Federal Employees'

Retirement System shall be used to value the cost of such System to

the Civil Service Retirement and Disability Fund for all purposes

in which the cost of the System is required to be determined by the

Federal Government. For any comparisons between the cost of

performing commercial activities under the contract with commercial

sources and the cost of performing such activities using Government

facilities and personnel, the cost of the System shall include the

cost of such System to the Civil Service Retirement and Disability

Fund as specified in the preceding sentence, the cost of the thrift

savings plan under subchapter III of chapter 84 of title 5, United

States Code, and the cost of social security.''

FIRST COST-OF-LIVING ADJUSTMENT

Section 702(c) of Pub. L. 99-335 provided that:

''(1) For purposes of the first adjustment under subsection (b)

of section 8462 of title 5, United States Code (as added by section

101 of this Act), the base quarter ending on September 30, 1986,

shall be considered to have been the base quarter for a year in

which an adjustment under such subsection was made.

''(2) As used in paragraph (1), the term 'base quarter' has the

meaning provided by section 8462(a)(1) of title 5, United States

Code (as added by section 101 of this Act).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3307, 3323, 3329, 5541,

6323, 7371, 8331, 8351, 8411, 8440e, 8477, 8704 of this title;

title 10 sections 2467, 10217; title 22 section 4046; title 38

sections 7296, 7426, 7438; title 50 sections 2152, 2154.

-CITE-

5 USC Sec. 8402 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER I - GENERAL PROVISIONS

-HEAD-

Sec. 8402. Federal Employees' Retirement System; exclusions

-STATUTE-

(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 chapter 83 of this title;

(II) subchapter I of chapter 8 of title I of the Foreign

Service Act of 1980; or

(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 chapter 83 of this title;

(II) at least 5 years of civilian service creditable under

subchapter I of chapter 8 of title I of the Foreign Service

Act of 1980; or

(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 chapter 83 of this title (determined without regard to any

deposit or redeposit requirement under such subchapter, any

requirement that the individual become subject to such subchapter

after performing the service involved, or any requirement that

the individual give notice in writing to the official by whom

such individual is paid of such individual's desire to become

subject to such subchapter);

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 Rate 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 section 610 of

title 28, whose employment is temporary or of uncertain duration.

(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 chapter 8 of title I of the Foreign

Service Act of 1980 (relating to the Foreign Service Pension

System) pursuant to an election; or

(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

section 377 of title 28 or section 2(c) of the Retirement and

Survivors' Annuities for Bankruptcy Judges and Magistrates Act of

1988 shall be excluded from the operation of this chapter, other

than subchapters III and VII of such chapter, if the judge or

magistrate judge notifies the Director of the Administrative Office

of the United States Courts of an election of a retirement annuity

under those provisions. Upon such election, the judge or

magistrate judge shall be entitled to a lump-sum credit under

section 8424 of this title.

(f) A judge who is covered by section 7296 of title 38 shall be

excluded from the operation of this chapter if the judge notifies

the Director of the Office of Personnel Management of an election

of a retirement annuity under that section. Upon such election,

the judge shall be entitled to a lump-sum credit under section 8424

of this title.

(g) A judge of the United States Court of Federal Claims who is

covered by section 178 of title 28 shall be excluded from the

operation of this chapter, other than subchapters III and VII of

such chapter, if the judge notifies the Director of the

Administrative Office of the United States Courts of an election of

a retirement annuity under those provisions. Upon such election,

the judge shall be entitled to a lump-sum credit under section 8424

of this title.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 521; amended Pub. L. 99-556, title I, Sec. 116, Oct. 27,

1986, 100 Stat. 3134; Pub. L. 100-238, title I, Sec. 130, Jan. 8,

1988, 101 Stat. 1759; Pub. L. 100-659, Sec. 6(c), Nov. 15, 1988,

102 Stat. 3919; Pub. L. 101-94, title I, Sec. 102(b), Aug. 16,

1989, 103 Stat. 626; Pub. L. 101-474, Sec. 5(p), Oct. 30, 1990, 104

Stat. 1100; Pub. L. 101-650, title III, Sec. 306(e)(3), 321, Dec.

1, 1990, 104 Stat. 5112, 5117; Pub. L. 102-40, title IV, Sec.

402(d)(2), May 7, 1991, 105 Stat. 239; Pub. L. 102-198, Sec. 7(d),

Dec. 9, 1991, 105 Stat. 1625; Pub. L. 102-572, title IX, Sec.

902(b)(1), Oct. 29, 1992, 106 Stat. 4516; Pub. L. 104-53, title I,

Sec. 115, Nov. 19, 1995, 109 Stat. 527; Pub. L. 104-186, title II,

Sec. 215(13), Aug. 20, 1996, 110 Stat. 1746; Pub. L. 105-274, Sec.

6(a), Oct. 20, 1998, 112 Stat. 2424; Pub. L. 106-168, title II,

Sec. 202(b), Dec. 12, 1999, 113 Stat. 1818.)

-REFTEXT-

REFERENCES IN TEXT

Section 210(a)(5) of the Social Security Act, referred to in

subsec. (b)(1), is classified to section 410(a)(5) of Title 42, The

Public Health and Welfare.

The Federal Employees' Retirement System Act of 1986, referred to

in subsec. (b), is Pub. L. 99-335, June 6, 1986, 100 Stat. 514.

Title III of the Federal Employees' Retirement System Act of 1986

amended sections 3121 and 6103 of Title 26, Internal Revenue Code,

section 1005 of Title 39, Postal Service, and section 410 of Title

42, enacted provisions set out as notes under sections 8331, 8401,

8432, and 8472 of this title and section 6103 of Title 26, and

amended provisions set out as a note under section 8331 of this

title. For complete classification of this Act to the Code, see

Short Title note set out under section 8401 of this title and

Tables.

The Foreign Service Act of 1980, referred to in subsecs.

(b)(2)(A)(i)(II), (ii)(II) and (d)(1)(A), is Pub. L. 96-465, Oct.

17, 1980, 94 Stat. 2071. Subchapters I and II of chapter 8 of title

I of the Act are classified generally to parts I (Sec. 4041 et

seq.) and II (Sec. 4071 et seq.), respectively, of subchapter VIII

of chapter 52 of Title 22, Foreign Relations and Intercourse. For

complete classification of this Act to the Code, see Short Title

note set out under section 3901 of Title 22 and Tables.

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, 38 Stat. 260, as amended. For classification

of section 10 to the Code, see Codification note set out under

section 241 of Title 12, Banks and Banking, and Tables.

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 Pub. L. 100-659, which is set out

as a note under section 377 of Title 28, Judiciary and Judicial

Procedure.

-MISC2-

AMENDMENTS

1999 - Subsec. (b)(2)(A). Pub. L. 106-168, Sec. 202(b)(1), added

subpar. (A) and struck out former subpar. (A) which read as

follows: ''any employee or Member who has separated from the

service after -

''(i) having been subject to subchapter III of chapter 83 of

this title, or subchapter I of chapter 8 of the Foreign Service

Act of 1980; and

''(ii) having completed at least 5 years of civilian service

creditable under subchapter III of chapter 83 of this title, or

at least 5 years of civilian service creditable under subchapter

I of the Foreign Service Act of 1980 (determined without regard

to any deposit or redeposit requirement under either such

subchapter, or any requirement that the individual become subject

to either such subchapter after performing the service involved);

or''.

Subsec. (d). Pub. L. 106-168, Sec. 202(b)(2), amended subsec. (d)

generally. Prior to amendment, text read as follows: ''Paragraph

(2) of subsection (b) shall not apply to an individual who becomes

subject to subchapter II of chapter 8 of title I of the Foreign

Service Act of 1980 (relating to the Foreign Service Pension

System) pursuant to an election and who subsequently enters a

position in which, but for such paragraph (2), he would be subject

to this chapter.''

1998 - Subsec. (c)(9). Pub. L. 105-274 added par. (9).

1996 - Subsec. (c)(5). Pub. L. 104-186 substituted ''Chief

Administrative Officer'' for ''Clerk'' in introductory provisions

and subpar. (B).

1995 - Subsec. (c)(7), (8). Pub. L. 104-53 added par. (7) and

redesignated former par. (7) as (8).

1992 - Subsec. (g). Pub. L. 102-572 substituted ''United States

Court of Federal Claims'' for ''United States Claims Court''.

1991 - Subsec. (f). Pub. L. 102-40 substituted ''section 7296 of

title 38'' for ''section 4096 of title 38''.

Subsec. (g). Pub. L. 102-198 inserted a comma after ''such

chapter''.

1990 - Subsec. (c)(7). Pub. L. 101-474 added par. (7).

Subsec. (g). Pub. L. 101-650 added subsec. (g).

1989 - Subsec. (f). Pub. L. 101-94 added subsec. (f).

1988 - Subsec. (b)(2). Pub. L. 100-238, Sec. 130(1), inserted

''subsection (d) of this section or'' before ''title III'' in

concluding provisions.

Subsec. (d). Pub. L. 100-238, Sec. 130(2), added subsec. (d).

Subsec. (e). Pub. L. 100-659 added subsec. (e).

1986 - Subsec. (c)(5), (6). Pub. L. 99-556 added pars. (5) and

(6).

-CHANGE-

CHANGE OF NAME

Words ''magistrate judge'' substituted for ''magistrate''

wherever appearing in subsec. (e) pursuant to section 321 of Pub.

L. 101-650, set out as a note under section 631 of Title 28,

Judiciary and Judicial Procedure.

-MISC4-

EFFECTIVE DATE OF 1999 AMENDMENT

Pub. L. 106-168, title II, Sec. 202(d), Dec. 12, 1999, 113 Stat.

1819, provided that:

''(1) In general. - Subject to succeeding provisions of this

subsection, this section (amending this section and section 8411 of

this title and enacting provisions set out as a note under this

section) and the amendments made by this section shall take effect

on the date of the enactment of this Act (Dec. 12, 1999).

''(2) Provisions relating to creditability and certain former

employees. - The amendments made by subsection (a) (amending

section 8411 of this title) and the provisions of subsection (c)

(set out as a note below) shall apply only to individuals who

separate from service subject to chapter 84 of title 5, United

States Code, on or after the date of the enactment of this Act

(Dec. 12, 1999).

''(3) Provisions relating to exclusion from chapter. - The

amendments made by subsection (b) (amending this section) shall not

apply to any former employee of the Board of Governors of the

Federal Reserve System who, subsequent to his or her last period of

service as an employee of the Board of Governors of the Federal

Reserve System and prior to the date of the enactment of this Act

(Dec. 12, 1999), became subject to subchapter III of chapter 83 or

chapter 84 of title 5, United States Code, under the law in effect

at the time of the individual's appointment.''

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-274, Sec. 10, Oct. 20, 1998, 112 Stat. 2429, provided

that: ''Except as otherwise specifically provided, this Act

(amending this section and enacting provisions set out as a note

under section 8401 of this title) and the amendments made by this

Act shall take effect as if included in the enactment of title XI

of the Balanced Budget Act of 1997 (Pub. L. 105-33).''

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-572 effective Oct. 29, 1992, see section

911 of Pub. L. 102-572, set out as a note under section 171 of

Title 28, Judiciary and Judicial Procedure.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-650 applicable to judges of, and senior

judges in active service with, the United States Court of Federal

Claims on or after Dec. 1, 1990, see section 306(f) of Pub. L.

101-650, set out as a note under section 8331 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-659 effective Nov. 15, 1988, and

applicable to bankruptcy judges and magistrate judges who retire on

or after Nov. 15, 1988, with exception for judges and magistrate

judges retiring on or after July 31, 1987, see section 9 of Pub. L.

100-659, as amended, set out as an Effective Date note under

section 377 of Title 28, Judiciary and Judicial Procedure.

PROVISIONS RELATING TO CERTAIN FORMER EMPLOYEES

Pub. L. 106-168, title II, Sec. 202(c), Dec. 12, 1999, 113 Stat.

1819, provided that: ''A former employee of the Board of Governors

of the Federal Reserve System who -

''(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 12 U.S.C. 241);

''(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 chapter 84 of title 5, United

States Code); and

''(3) after service described in paragraph (2), becomes subject

to and thereafter entitled to benefits under chapter 84 of title

5, United States Code,

shall, for purposes of section 302 of the Federal Employees'

Retirement System Act of 1986 (Pub. L. 99-335) (100 Stat. 601; 5

U.S.C. 8331 note) be considered to have become subject to chapter

84 of title 5, United States Code, pursuant to an election under

section 301 of such Act (5 U.S.C. 8331 note).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8334, 8347, 8349, 8401 of

this title; title 50 section 2151.

-CITE-

5 USC Sec. 8403 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER I - GENERAL PROVISIONS

-HEAD-

Sec. 8403. Relationship to the Social Security Act

-STATUTE-

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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 522.)

-REFTEXT-

REFERENCES IN TEXT

The Social Security Act, referred to in text, is act Aug. 14,

1935, ch. 531, 49 Stat. 620, as amended, which is classified

generally to chapter 7 (Sec. 301 et seq.) of Title 42, The Public

Health and Welfare. For complete classification of this Act to the

Code, see section 1305 of Title 42 and Tables.

-CITE-

5 USC SUBCHAPTER II - BASIC ANNUITY 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

.

-HEAD-

SUBCHAPTER II - BASIC ANNUITY

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 5595, 8348, 8401,

8435, 8455, 8461, 8464, 8464a, 8466, 8470 of this title; title 10

sections 942, 945; title 22 section 4071j; title 38 section 7426;

title 39 section 1005; title 50 sections 2153, 2154.

-CITE-

5 USC Sec. 8410 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8410. Eligibility for annuity

-STATUTE-

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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 522.)

-CITE-

5 USC Sec. 8411 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8411. Creditable service

-STATUTE-

(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 chapter 83 of this title (determined

without regard to any deposit or redeposit requirement under such

subchapter, any requirement that the individual become subject to

such subchapter after performing the service involved, or any

requirement that the individual give notice in writing to the

official by whom such individual is paid of such individual's

desire to become subject to such subchapter);

(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 chapter 8 (FOOTNOTE 1) of the

Foreign Service Act of 1980, if the employee or Member waives

credit for such service under the Foreign Service Pension System

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));

(FOOTNOTE 1) See References in Text note below.

(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 chapter 83

is involved, section 8332(n)) otherwise applies.

(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 section 1101 of

title 38; or

(B) under chapter 1223 of title 10 (or under chapter 67 of that

title as in effect before the effective date of the Reserve

Officer Personnel Management Act).

(3) 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

section 1408 of title 10, the military service on which the retired

pay is based may be credited as service for purposes of this

chapter only if the employee or Member authorizes the Director to

deduct and withhold from the annuity payable to the employee or

Member under this subchapter an amount equal to the amount that, if

the annuity payment was instead a payment of the employee's or

Member's retired pay, would have been deducted and withheld and

paid to the former spouse covered by the court order under such

section 1408. The amount deducted and withheld under this paragraph

shall be paid to that former spouse. The period of civil service

employment by the employee or Member shall not be taken into

consideration in determining the amount of the deductions and

withholding or the amount of the payment to the former spouse. The

Director of the Office of Personnel Management shall prescribe

regulations to carry out this paragraph.

(d) 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 chapter

81. An employee or former employee who returns to duty after a

period of separation is deemed, for the purpose of this subsection,

to have been on leave of absence without pay for that part of the

period in which that individual was receiving benefits under

subchapter I of chapter 81. Credit may not be allowed for so much

of other leaves of absence without pay as exceeds 6 months in the

aggregate in a calendar year.

(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 chapter 83 with

respect to any service described in subsection (b)(2) or (b)(3) may

not be allowed credit for such service under this chapter unless

such employee or Member deposits an amount equal to 1.3 percent of

basic pay for such service, with interest. A deposit under this

paragraph may be made only with respect to a refund received

pursuant to an application filed with the Office before the date on

which the employee or Member first becomes subject to this chapter.

(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 chapter 83 have not

been made, unless such employee or Member deposits an amount equal

to 1.3 percent of basic pay for such service, with interest.

(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, 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) (FOOTNOTE 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).

(FOOTNOTE 2) So in original. Two subsecs. (i) have been

enacted.

(i)(1) (FOOTNOTE 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) (FOOTNOTE 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.

(FOOTNOTE 3) So in original. No subsec. (j) has been enacted.

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 522; amended Pub. L. 99-556, title I, Sec. 103, title V, Sec.

502(b), Oct. 27, 1986, 100 Stat. 3131, 3140; Pub. L. 100-238, title

I, Sec. 104(b), 105(a), Jan. 8, 1988, 101 Stat. 1746; Pub. L.

102-83, Sec. 5(c)(2), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-242,

title IV, Sec. 466(b), Dec. 19, 1991, 105 Stat. 2385; Pub. L.

103-82, title III, Sec. 371(b)(1), Sept. 21, 1993, 107 Stat. 910;

Pub. L. 103-337, div. A, title XVI, Sec. 1677(a)(3), Oct. 5, 1994,

108 Stat. 3019; Pub. L. 104-201, div. A, title VI, Sec. 637(b),

Sept. 23, 1996, 110 Stat. 2580; Pub. L. 106-168, title II, Sec.

202(a), Dec. 12, 1999, 113 Stat. 1817; Pub. L. 106-554, Sec.

1(a)(4) (div. A, Sec. 901(a)(2)), Dec. 21, 2000, 114 Stat. 2763,

2763A-196; Pub. L. 107-107, div. A, title XI, Sec. 1132(b)(1),

Dec. 28, 2001, 115 Stat. 1243.)

-REFTEXT-

REFERENCES IN TEXT

Section 204(a)(1) of the Federal Employees' Retirement

Contribution Temporary Adjustment Act of 1983 (Pub. L. 98-168),

referred to in subsec. (b)(2), is set out as a note under section

8331 of this title.

Subsections (a)(4) and (b) of section 202 of the Federal

Employees' Retirement System Act of 1986 (Pub. L. 99-335), referred

to in subsec. (b)(3), amended section 8331(1) and (2) of this

title.

The Foreign Service Act of 1980, referred to in subsec. (b)(4),

is Pub. L. 96-465, Oct. 17, 1980, 94 Stat. 2071, as amended.

Subchapter II of chapter 8 of the Act probably means subchapter II

of chapter 8 of title I of the Act which is classified generally to

part II (Sec. 4071 et seq.) of subchapter VIII of chapter 52 of

Title 22, Foreign Relations and Intercourse. For complete

classification of this Act to the Code, see Short Title note set

out under section 3901 of Title 22 and Tables.

Chapter 67 of that title as in effect before the effective date

of the Reserve Officer Personnel Management Act, referred to in

subsec. (c)(2)(B), means chapter 67 (Sec. 1331 et seq.) of Title

10, Armed Forces, prior to its transfer to part II of subtitle E of

Title 10, its renumbering as chapter 1223, and its general revision

by section 1662(j)(1) of Pub. L. 103-337. A new chapter 67 (Sec.

1331) of Title 10 was added by section 1662(j)(7) of Pub. L.

103-337. For effective date of the Reserve Officer Personnel

Management Act (Pub. L. 103-337, title XVI), see section 1691 of

Pub. L. 103-337, set out as an Effective Date note under section

10001 of Title 10.

Section 10 of the Federal Reserve Act, referred to in subsecs.

(g) and (i), is section 10 of act Dec. 23, 1913, ch. 6, 38 Stat.

260, as amended. For classification of section 10 to the Code, see

Codification note set out under section 241 of Title 12, Banks and

Banking, and Tables.

The Economic Opportunity Act of 1964, referred to in subsec. (h),

is Pub. L. 88-452, Aug. 20, 1964, 73 Stat. 508, as amended. Part A

of title VIII of that Act is part A of title VIII of Pub. L. 88-452

as added by Pub. L. 90-222, title I, Sec. 110, Dec. 23, 1967, 81

Stat. 722, which was classified generally to part A (Sec. 2992 et

seq.) of subchapter VIII of chapter 34 of Title 42, The Public

Health and Welfare, prior to its repeal by Pub. L. 93-113, title

VI, Sec. 603, Oct. 1, 1973, 87 Stat. 417. See sections 4951 et seq.

and 5055 of Title 42.

Parts A, B, and C of title I of the Domestic Volunteer Service

Act of 1973, referred to in subsec. (h), are classified to part A

(Sec. 4951 et seq.), part B (Sec. 4971 et seq.), and part C (Sec.

4991 et seq.), respectively, of subchapter I of chapter 66 of Title

42.

The Peace Corps Act, referred to in subsec. (h), is Pub. L.

87-293, Sept. 22, 1961, 75 Stat. 612, as amended, which is

classified principally to chapter 34 (Sec. 2501 et seq.) of Title

22, Foreign Relations and Intercourse. For complete classification

of this Act to the Code, see Short Title note set out under section

2501 of Title 22 and Tables.

The date of enactment of this paragraph, referred to in subsec.

(i)(1), is the date of enactment of Pub. L. 106-554, which was

approved Dec. 21, 2000.

-MISC2-

AMENDMENTS

2001 - Subsec. (b)(6). Pub. L. 107-107, Sec. 1132(b)(1)(A), added

par. (6).

Subsec. (k). Pub. L. 107-107, Sec. 1132(b)(1)(B), added subsec.

(k).

2000 - Subsec. (i). Pub. L. 106-554 added subsec. (i) relating to

credit for service as congressional employee for certain service

before Dec. 31, 1990.

1999 - Subsec. (b). Pub. L. 106-168, Sec. 202(a)(1), in par. (3),

struck out ''and'' at end, in par. (4), substituted ''other

paragraph'' for ''of the preceding provisions'' and ''; and'' for

period at end, and added par. (5) and concluding provisions.

Subsec. (i). Pub. L. 106-168, Sec. 202(a)(2), added subsec. (i)

defining ''Bank Plan'' for purposes of subsec. (b)(5).

1996 - Subsec. (c)(1). Pub. L. 104-201, Sec. 637(b)(2), in

introductory provisions, substituted ''Except as provided in

paragraphs (2), (3), and (5)'' for ''Except as provided in

paragraph (2) or (3)''.

Subsec. (c)(5). Pub. L. 104-201, Sec. 637(b)(1), added par. (5).

1994 - Subsec. (c)(2)(B). Pub. L. 103-337 substituted ''chapter

1223 of title 10 (or under chapter 67 of that title as in effect

before the effective date of the Reserve Officer Personnel

Management Act)'' for ''chapter 67 of title 10''.

1993 - Subsec. (b)(3). Pub. L. 103-82, Sec. 371(b)(1)(A),

substituted ''subsection (f) or (h)'' for ''subsection (f)''.

Subsec. (h). Pub. L. 103-82, Sec. 371(b)(1)(B), added subsec.

(h).

1991 - Subsec. (c)(2)(A)(ii). Pub. L. 102-83 substituted

''section 1101 of title 38'' for ''section 301 of title 38''.

Subsec. (g). Pub. L. 102-242 added subsec. (g).

1988 - Subsec. (c)(4)(A). Pub. L. 100-238, Sec. 104(b),

substituted ''section 8422(e)(5)'' for ''subsection (f)(4)'' in

concluding provisions.

Subsec. (f)(1). Pub. L. 100-238, Sec. 105(a), inserted at end ''A

deposit under this paragraph may be made only with respect to a

refund received pursuant to an application filed with the Office

before the date on which the employee or Member first becomes

subject to this chapter.''

1986 - Subsec. (b)(2). Pub. L. 99-556, Sec. 103(1), inserted

''except as provided in subsection (f),''.

Subsec. (c)(4). Pub. L. 99-556, Sec. 502(b), added par. (4).

Subsec. (f)(1). Pub. L. 99-556, Sec. 103(2), inserted ''(b)(2)

or''.

EFFECTIVE DATE OF 2001 AMENDMENT

Amendment by Pub. L. 107-107 applicable only to separations from

service as an employee of the United States on or after Dec. 28,

2001, see section 1132(c) of Pub. L. 107-107, set out as a note

under section 8332 of this title.

EFFECTIVE DATE OF 1999 AMENDMENT

Amendment by Pub. L. 106-168 effective Dec. 12, 1999, and

applicable only to individuals who separate from service subject to

chapter 84 of this title on or after Dec. 12, 1999, see section

202(d) of Pub. L. 106-168, set out as a note under section 8402 of

this title.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-201 effective Jan. 1, 1997, see section

637(c) of Pub. L. 104-201, set out as a note under section 8332 of

this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-337 effective Dec. 1, 1994, except as

otherwise provided, see section 1691 of Pub. L. 103-337, set out as

an Effective Date note under section 10001 of Title 10, Armed

Forces.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-82 effective Oct. 1, 1993, and

applicable with respect to any individual entitled to an annuity on

the basis of a separation from service occurring before, on, or

after Oct. 1, 1993, subject to rule relating to annuities based on

earlier separations, see sections 371(c) and 392 of Pub. L. 103-82,

set out as notes under section 8332 of this title and section 4951

of Title 42, The Public Health and Welfare, respectively.

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by Pub. L. 102-242 applicable with respect to any

individual who transfers to a position in which he or she is

subject to subchapter III of chapter 83 of this title or chapter 84

of this title, on or after Oct. 1, 1991, see section 466(c) of Pub.

L. 102-242, set out as a note under section 8332 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by section 502(b) of Pub. L. 99-556 applicable to a

survivor of an employee or member who dies on or after the 180th

day after Oct. 27, 1986, and to other survivors upon application,

see section 502(c) of Pub. L. 99-556, set out as a note under

section 8332 of this title.

-TRANS-

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

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.

-MISC5-

RETIREMENT CREDIT FOR CERTAIN GOVERNMENT SERVICE PERFORMED ABROAD

Pub. L. 107-228, div. A, title III, Sec. 321, Sept. 30, 2002,

116 Stat. 1380, provided that:

''(a) Retirement Credit for Certain Government Service Performed

Abroad. - Subject to subsection (b)(1), credit under chapter 84 of

title 5, United States Code, shall be allowed for any service

performed by an individual if or to the extent that -

''(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 (22 U.S.C. 3949 and

3951);

''(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 (42 U.S.C. 401

et seq.)); and

''(5) the total amount of service performed by such individual

(satisfying paragraphs (1) through (4)) is not less than 90 days.

''(b) Requirements. -

''(1) Requirements of the individual. - In order to receive

credit under chapter 84 of title 5, United States Code, for any

service described in subsection (a), the individual who performed

such service (or, if deceased, any person who is or would be

eligible for a survivor annuity under the Federal Employees'

Retirement System based on the service of such individual) -

''(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 chapter 84.

''(2) Government contributions. -

''(A) In general. - In addition to any other payment that it

is required to make under chapter 84 of title 5, United States

Code, a department, agency, or other instrumentality of the

United States shall remit to the Office of Personnel Management

(for deposit in the Treasury of the United States to the credit

of the Fund) the amount described in subparagraph (B).

''(B) Amount described. - The amount described in this

subparagraph is, with respect to a remittance under paragraph

(1), the total amount of Government contributions that would,

under section 8423 of title 5, United States Code, have been

required of the instrumentality involved (to the extent that it

was the employing entity during the period of service to which

such remittance relates) in connection with such service.

''(C) Special rule. - If an amount cannot be remitted under

this paragraph because an instrumentality has ceased to exist,

such amount shall instead be treated as part of the

supplemental liability referred to in section 8423(b)(1)(A) or

(B) of title 5, United States Code (whichever would be

appropriate).

''(3) Related requirements. - Any remittance under paragraph

(1) or (2) -

''(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

section 8334(e) of title 5, United States Code, and such

requirements as the Office may by regulation prescribe).

''(4) Notification and assistance requirements. -

''(A) In general. - The Office of Personnel Management shall

take such action as may be necessary and appropriate to inform

individuals entitled to have any service credited under this

section, or to have any annuity computed or recomputed under

this section, of their entitlement to such credit, computation,

or recomputation.

''(B) Assistance to individuals. - The Office shall, on

request, assist any individual referred to in subparagraph (A)

in obtaining from any department, agency, or other

instrumentality of the United States such information in the

possession of such instrumentality as may be necessary to

verify the entitlement of such individual to have any service

credited, or to have any annuity computed or recomputed,

pursuant to this section.

''(C) Assistance from instrumentalities. - Any department,

agency, or other instrumentality of the United States that

possesses any information with respect to any service described

in subsection (a) shall, at the request of the Office, furnish

such information to the Office.

''(c) Definitions. - In this section:

''(1) Abroad. - The term 'abroad' has the meaning given such

term under section 102 of the Foreign Service Act of 1980 (22

U.S.C. 3902).

''(2) Basic pay. - The term 'basic pay' has the meaning given

such term under section 8401 of title 5, United States Code.

''(3) Civil service retirement and disability fund. - The term

'Civil Service Retirement and Disability Fund' or 'Fund' means

the Civil Service Retirement and Disability Fund under section

8348 of title 5, United States Code.

''(4) Temporary appointment. - The term 'temporary appointment'

means an appointment that is limited by its terms to a period of

one year or less.

''(d) Rule of Construction. - Nothing in this section shall be

considered to permit or require the making of any contributions to

the Thrift Savings Fund that would not otherwise have been

permitted or required had this section not been enacted.

''(e) Applicability. -

''(1) Annuities commencing on or after effective date of

implementing regulations. - An annuity or survivor annuity -

''(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) Annuities with commencement date preceding effective date

of implementing regulations. -

''(A) Recomputation cases. - An annuity or survivor annuity -

''(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) Other cases. - An annuity or survivor annuity -

''(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) Retroactive effect. - Any computation or recomputation

of an annuity or survivor annuity pursuant to this paragraph

shall -

''(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) Lump-sum payment. - Any amounts which by virtue of

subparagraph (C) are payable for any months preceding the first

month (on or after the effective date referred to in paragraph

(1)(B)) as of which annuity or survivor annuity payments become

payable fully reflecting the computation or recomputation under

subparagraph (A) or (B) (as the case may be) shall be payable

in the form of a lump-sum payment.

''(E) Order of precedence. - Section 8424(d) of title 5,

United States Code, shall apply in the case of any payment

under subparagraph (D) payable to an individual who has died.

''(f) Implementation. - The Office of Personnel Management, in

consultation with the Secretary, shall prescribe such regulations

and take such action as may be necessary and appropriate to

implement this section.''

(For definitions of ''Department'' and ''Secretary'' as used in

section 321 of Pub. L. 107-228, set out above, see section 3 of

Pub. L. 107-228, set out as a note under section 2651 of Title 22,

Foreign Relations and Intercourse.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8401, 8410, 8415, 8422,

8432, 8442, 8443, 8451 of this title; title 2 sections 121b, 162b,

2064; title 16 section 460lll-47; title 38 section 7426; title 50

section 2154.

-CITE-

5 USC Sec. 8412 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8412. Immediate retirement

-STATUTE-

(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) 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 a law enforcement

officer, member of the Capitol Police or Supreme Court Police,

firefighter, or nuclear materials courier, or any combination of

such service totaling at least 25 years, or

(2) 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, or nuclear materials

courier, or any combination of such service totaling at least 20

years,

is entitled to an annuity.

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 524; amended Pub. L. 99-556, title I, Sec. 105(a), Oct. 27,

1986, 100 Stat. 3131; Pub. L. 101-428, Sec. 3(a), Oct. 15, 1990,

104 Stat. 929; Pub. L. 105-261, div. C, title XXXI, Sec. 3154(g),

Oct. 17, 1998, 112 Stat. 2255; Pub. L. 106-553, Sec. 1(a)(2) (title

III, Sec. 308(c)(1)), Dec. 21, 2000, 114 Stat. 2762, 2762A-87.)

-MISC1-

AMENDMENTS

2000 - Subsec. (d). Pub. L. 106-553 inserted ''or Supreme Court

Police'' after ''Capitol Police'' in pars. (1) and (2).

1998 - Subsec. (d)(1), (2). Pub. L. 105-261 substituted

''firefighter, or nuclear materials courier'' for ''or

firefighter''.

1990 - Subsec. (d)(1), (2). Pub. L. 101-428 substituted

''officer, member of the Capitol Police,'' for ''officer''.

1986 - Subsec. (g). Pub. L. 99-556 designated existing provisions

as par. (1) and added par. (2).

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-553 effective on the first day of the

first applicable pay period that begins on Dec. 21, 2000, and

applicable only to an individual who is employed as a member of the

Supreme Court Police after Dec. 21, 2000, see section 1(a)(2)

(title III, Sec. 308(i), (j)) of Pub. L. 106-553, set out in a

Supreme Court Police Retirement note under section 8331 of this

title.

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-261 effective at the beginning of the

first pay period that begins after Oct. 17, 1998, and applicable

only to an individual who is employed as a nuclear materials

courier, as defined by section 8331(27) or 8401(33) of this title,

after Oct. 17, 1998, see section 3154(m), (n) of Pub. L. 105-261,

set out as a note under section 8331 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5597, 6302, 8413, 8414,

8415, 8420, 8421, 8421a, 8425, 8442, 8452, 8462, 8464, 8901 of this

title; title 10 section 10218; title 22 sections 4045, 4046, 4052,

4071d.

-CITE-

5 USC Sec. 8413 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8413. Deferred retirement

-STATUTE-

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 525; amended Pub. L. 99-556, title I, Sec. 105(b)(1), Oct.

27, 1986, 100 Stat. 3132.)

-MISC1-

AMENDMENTS

1986 - Subsec. (b)(1). Pub. L. 99-556 inserted ''but before

attaining the applicable minimum retirement age under section

8412(h)'' in first sentence and substituted ''such minimum

retirement age'' for ''the applicable minimum retirement age under

section 8412(h)'' in second sentence.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8415, 8420, 8442, 8445,

8462, 8464 of this title; title 22 section 4071d.

-CITE-

5 USC Sec. 8414 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8414. Early retirement

-STATUTE-

(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 chapter

43 of this title) after completing 25 years of service, or after

becoming 50 years of age and completing 20 years of service, is

entitled to an annuity.

(2) A member of the Defense Intelligence Senior Executive Service

or the Senior Cryptologic Executive Service who is removed from

such service for failure to be recertified as a senior executive or

for less than fully successful executive performance after

completing 25 years of service, or after becoming 50 years of age

and completing 20 years of service, is entitled to an annuity.

(3) A member of the Federal Bureau of Investigation and Drug

Enforcement Administration Senior Executive Service who is removed

from such service for failure to be recertified as a senior

executive or for less than fully successful executive performance

after completing 25 years of service or after becoming 50 years of

age and completing 20 years of service is entitled to an annuity.

(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 (FOOTNOTE 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 -

(FOOTNOTE 1) So in original. Probably should be ''separated''.

(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 chapter 53, or comparable provisions); or

(III) identified as being in positions which are becoming

surplus or excess to the agency's future ability to carry out

its mission effectively; and

(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. (FOOTNOTE

2)

(FOOTNOTE 2) So in original. Probably should be a semicolon.

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) 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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 526; amended Pub. L. 100-325, Sec. 2(m), May 30, 1988, 102

Stat. 583; Pub. L. 101-194, title V, Sec. 506(b)(9), Nov. 30, 1989,

103 Stat. 1759; Pub. L. 105-261, div. A, title XI, Sec. 1109(b),

Oct. 17, 1998, 112 Stat. 2144; Pub. L. 106-58, title VI, Sec.

651(b), Sept. 29, 1999, 113 Stat. 480; Pub. L. 106-65, div. A,

title V, Sec. 522(b), Oct. 5, 1999, 113 Stat. 597; Pub. L. 106-398,

Sec. 1 ((div. A), title XI, Sec. 1152(b)), Oct. 30, 2000, 114 Stat.

1654, 1654A-321; Pub. L. 107-296, title XIII, Sec. 1313(b)(2),

1321(a)(5)(A), Nov. 25, 2002, 116 Stat. 2295, 2297.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a)(1). Pub. L. 107-296, Sec. 1321(a)(5)(A),

struck out ''for failure to be recertified as a senior executive

under section 3393a or'' before ''for less than fully''.

Subsec. (b)(1)(B). Pub. L. 107-296, Sec. 1313(b)(2), added

subpar. (B) and struck out former subpar. (B) which read as

follows: ''except in the case of an employee who is separated from

the service under a program carried out under subsection (d), while

serving in a geographic area designated by the Director, is

separated from the service voluntarily during a period in which (as

determined by the Director) -

''(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 chapter 53 of this title or comparable

provisions);''.

2000 - Subsec. (b)(1)(B). Pub. L. 106-398, Sec. 1 ((div. A),

title XI, Sec. 1152(b)(1)), inserted ''except in the case of an

employee who is separated from the service under a program carried

out under subsection (d),'' before ''while serving'' in

introductory provisions.

Subsec. (d). Pub. L. 106-398, Sec. 1 ((div. A), title XI, Sec.

1152(b)(2)), added subsec. (d).

1999 - Subsec. (b)(1)(B). Pub. L. 106-58 repealed Pub. L.

105-261, Sec. 1109(b)(1). See 1998 Amendment note below.

Subsec. (c). Pub. L. 106-65 amended subsec. (c) generally. Prior

to amendment, subsec. (c) read as follows: ''A military reserve

technician who is separated from technician service, after becoming

50 years of age and completing 25 years of service, by reason of

ceasing to satisfy the condition described in section 8401(30)(B)

is entitled to an annuity.''

Subsec. (d). Pub. L. 106-58 repealed Pub. L. 105-261, Sec.

1109(b)(2). See 1998 Amendment note below.

1998 - Subsec. (b)(1)(B). Pub. L. 105-261, Sec. 1109(b)(1), which

directed insertion of ''except in the case of an employee described

in subsection (d)(1),'' after ''(B)'', was repealed by Pub. L.

106-58.

Subsec. (d). Pub. L. 105-261, Sec. 1109(b)(2), which directed

addition of subsec. (d), relating to authority of Department of

Defense to offer employees voluntary early retirement, was repealed

by Pub. L. 106-58.

1989 - Subsec. (a)(1). Pub. L. 101-194, Sec. 506(b)(9)(A),

substituted ''for failure to be recertified as a senior executive

under section 3393a or for'' for ''for''.

Subsec. (a)(2), (3). Pub. L. 101-194, Sec. 506(b)(9)(B), (C),

substituted ''for failure to be recertified as a senior executive

or for'' for ''for''.

1988 - Subsec. (a)(3). Pub. L. 100-325 added par. (3).

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by Pub. L. 107-296 effective 60 days after Nov. 25,

2002, see section 4 of Pub. L. 107-296, set out as an Effective

Date note under section 101 of Title 6, Domestic Security.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101-194 effective Jan. 1, 1991, see section

506(d) of Pub. L. 101-194, set out as a note under section 3151 of

this title.

GENERAL ACCOUNTING OFFICE: VOLUNTARY EARLY RETIREMENT

For provisions relating to the application of subsection

(b)(1)(B) of this section to officers and employees of the General

Accounting Office during the period beginning on Oct. 13, 2000 and

ending on Dec. 31, 2003, see section 1 of Pub. L. 106-303, set out

as a note under section 8336 of this title.

APPLICATION OF SUBSECTION (B)(1)(B)

Pub. L. 105-174, title III, Sec. 7001(b), May 1, 1998, 112 Stat.

91, as amended by Pub. L. 106-58, title VI, Sec. 651(a), Sept. 29,

1999, 113 Stat. 480, which provided that, effective May 1, 1998,

subsec. (b)(1)(B) of this section was to be applied as if it read

as specified in Pub. L. 105-174, Sec. 7001(b), was repealed by Pub.

L. 107-296, title XIII, Sec. 1313(b)(4), Nov. 25, 2002, 116 Stat.

2296.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5597, 6302, 8420, 8421,

8421a, 8456, 8462, 8464, 8901 of this title; title 10 section

10218; title 50 sections 2053, 2442.

-CITE-

5 USC Sec. 8415 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8415. Computation of basic annuity

-STATUTE-

(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

1 7/10 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

1 7/10 percent of the individual's average pay by the years of such

service.

(d) The annuity of an employee retiring under subsection (d) or

(e) of section 8412 or under subsection (a), (b), or (c) of section

8425 is -

(1) 1 7/10 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.

(e)(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.

(f)(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)(2), (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.

(g)(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, or air traffic controller.

(h) 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.

(i) (FOOTNOTE 1) (1) For purposes of this subsection, the term

''physicians comparability allowance'' refers to an amount

described in section 8331(3)(H).

(FOOTNOTE 1) So in original. Two subsecs. (i) have been

enacted.

(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 Then, the percent-

the enactment of this subsection, age allowable is:

as a Government physician 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.

(j) 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.

(i) (FOOTNOTE 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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 527; amended Pub. L. 99-556, title I, Sec. 105(b)(2), Oct.

27, 1986, 100 Stat. 3132; Pub. L. 103-283, title III, Sec.

307(b)(2), July 22, 1994, 108 Stat. 1442; Pub. L. 105-61, title V,

Sec. 516(a)(7), Oct. 10, 1997, 111 Stat. 1306; Pub. L. 105-261,

div. C, title XXXI, Sec. 3154(h), Oct. 17, 1998, 112 Stat. 2255;

Pub. L. 106-65, div. A, title V, Sec. 522(c)(1), Oct. 5, 1999, 113

Stat. 597; Pub. L. 106-553, Sec. 1(a)(2) (title III, Sec.

308(c)(2)), Dec. 21, 2000, 114 Stat. 2762, 2762A-87; Pub. L.

106-571, Sec. 3(c)(1), Dec. 28, 2000, 114 Stat. 3055; Pub. L.

107-107, div. A, title XI, Sec. 1132(b)(3), Dec. 28, 2001, 115

Stat. 1244; Pub. L. 107-135, title I, Sec. 122(a), Jan. 23, 2002,

115 Stat. 2451.)

-REFTEXT-

REFERENCES IN TEXT

The date of the enactment of this subsection, referred to in

subsec. (i), is the date of enactment of Pub. L. 106-571, which was

approved Dec. 28, 2000.

-MISC2-

AMENDMENTS

2002 - Subsec. (i). Pub. L. 107-135 added subsec. (i) relating to

inclusion of unused sick leave in computing an annuity of a

registered nurse with the Veterans Health Administration.

2001 - Subsec. (j). Pub. L. 107-107 added subsec. (j).

2000 - Subsec. (g). Pub. L. 106-553 inserted ''member of the

Supreme Court Police,'' after ''law enforcement officer,'' in

concluding provisions.

Subsec. (i). Pub. L. 106-571 added subsec. (i).

1999 - Subsec. (g)(2). Pub. L. 106-65 substituted ''military

technician (dual status)'' for ''military reserve technician'' in

concluding provisions.

1998 - Subsec. (g)(2). Pub. L. 105-261 inserted ''nuclear

materials courier,'' after ''firefighter,'' in concluding

provisions.

1997 - Subsec. (h). Pub. L. 105-61 added subsec. (h).

1994 - Subsec. (d). Pub. L. 103-283 substituted ''(a), (b), or

(c)'' for ''(a) or (b)''.

1986 - Subsec. (f)(2). Pub. L. 99-556 inserted ''8412(g) or'' in

subpars. (A) and (B).

EFFECTIVE DATE OF 2002 AMENDMENT

Pub. L. 107-135, title I, Sec. 122(c), Jan. 23, 2002, 115 Stat.

2451, provided that: ''The amendments made by this section

(amending this section and section 8422 of this title) shall take

effect 60 days after the date of the enactment of this Act (Jan.

23, 2002) and shall apply to individuals who separate from service

on or after that effective date.''

EFFECTIVE DATE OF 2001 AMENDMENT

Amendment by Pub. L. 107-107 applicable only to separations from

service as an employee of the United States on or after Dec. 28,

2001, see section 1132(c) of Pub. L. 107-107, set out as a note

under section 8332 of this title.

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-553 effective on the first day of the

first applicable pay period that begins on Dec. 21, 2000, and

applicable only to an individual who is employed as a member of the

Supreme Court Police after Dec. 21, 2000, see section 1(a)(2)

(title III, Sec. 308(i), (j)) of Pub. L. 106-553, set out in a

Supreme Court Police Retirement note under section 8331 of this

title.

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-261 effective at the beginning of the

first pay period that begins after Oct. 17, 1998, and applicable

only to an individual who is employed as a nuclear materials

courier, as defined by section 8331(27) or 8401(33) of this title,

after Oct. 17, 1998, see section 3154(m), (n) of Pub. L. 105-261,

set out as a note under section 8331 of this title.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-61 applicable to any annuity commencing

before, on, or after Oct. 10, 1997, and effective with regard to

any payment made after the first month following Oct. 10, 1997, see

section 516(b) of Pub. L. 105-61, set out as a note under section

8334 of this title.

CLARIFICATION RELATING TO CONSIDERATION OF PRE-1987 SERVICE AS AN

AIR TRAFFIC CONTROLLER FOR RETIREMENT PURPOSES

See section 2 of Pub. L. 100-92, set out as a note under section

8332 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8418, 8419, 8420, 8420a,

8421, 8422, 8442, 8452, 8468 of this title; title 22 sections 4045,

4046, 4071d; title 38 section 7426; title 50 section 2153.

-CITE-

5 USC Sec. 8416 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8416. Survivor reduction for a current spouse

-STATUTE-

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 528.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8417, 8418, 8419, 8420,

8420a, 8442, 8445 of this title; title 50 section 2154.

-CITE-

5 USC Sec. 8417 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8417. Survivor reduction for a former spouse

-STATUTE-

(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).

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 530.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8418, 8442, 8445, 8901,

8905 of this title; title 22 section 4071j; title 50 section 2154.

-CITE-

5 USC Sec. 8418 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8418. Survivor elections; deposit; offsets

-STATUTE-

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 530; amended Pub. L. 103-66, title XI, Sec. 11004(b), Aug.

10, 1993, 107 Stat. 412.)

-MISC1-

AMENDMENTS

1993 - Subsec. (a)(1). Pub. L. 103-66, Sec. 11004(b)(1), struck

out '', before the expiration of the 2-year period involved,''

after ''into the Fund''.

Subsec. (b). Pub. L. 102-66, Sec. 11004(b)(2), amended subsec.

(b) generally. Prior to amendment, subsec. (b) read as follows:

''If the electing individual does not make the deposit required

under subsection (a), the Office shall collect such amount by

offset against such individual's annuity, up to a maximum of 25

percent of the net annuity otherwise payable, and the individual is

deemed to consent to such offset.''

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-66 effective on first day of first month

beginning at least 30 days after Aug. 10, 1993, and applicable to

all deposits required under section 8339(j)(3) or (5), 8339(k)(2),

or 8418 of this title, on which no payment has been made prior to

such effective date, with provision for partial deposit, see

section 11004(c) of Pub. L. 103-66, set out as a note under section

8339 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 22 section 4071j; title 50

section 2154.

-CITE-

5 USC Sec. 8419 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8419. Survivor reductions; computation

-STATUTE-

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 531; amended Pub. L. 100-238, title I, Sec. 131(a), Jan. 8,

1988, 101 Stat. 1759.)

-MISC1-

AMENDMENTS

1988 - Subsec. (a)(1), (2)(A). Pub. L. 100-238 inserted ''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''

before '', shall be reduced''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8416, 8417, 8418, 8442,

8445, 8468 of this title.

-CITE-

5 USC Sec. 8420 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8420. Insurable interest reductions

-STATUTE-

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 532.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8416, 8418, 8444 of this

title.

-CITE-

5 USC Sec. 8420a 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8420a. Alternative forms of annuities

-STATUTE-

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 532; amended Pub. L. 101-508, title VII, Sec. 7001(a)(1),

Nov. 5, 1990, 104 Stat. 1388-327; Pub. L. 103-66, title XI, Sec.

11002(a), Aug. 10, 1993, 107 Stat. 409.)

-MISC1-

AMENDMENTS

1993 - Subsec. (a). Pub. L. 103-66, Sec. 11002(a)(1), substituted

''any employee or Member who has a life-threatening affliction or

other critical medical condition'' for ''an employee or Member''.

Subsec. (f). Pub. L. 103-66, Sec. 11002(a)(2), struck out subsec.

(f) which prohibited election of alternative form of annuity where

commencement date would be after Dec. 1, 1990, with certain

exceptions.

1990 - Subsec. (f). Pub. L. 101-508 added subsec. (f).

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-66 effective Oct. 1, 1994, and

applicable with respect to any annuity commencing on or after that

date, see section 11002(d) of Pub. L. 103-66, set out as a note

under section 8343a of this title.

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 Pub. L. 101-508, set out as a

note under section 8343a of this title.

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 section 8343a of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8348, 8424 of this title.

-CITE-

5 USC Sec. 8421 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8421. Annuity supplement

-STATUTE-

(a)(1) Subject to paragraph (3), an individual shall, if and

while entitled to an annuity under subsection (a), (b), (d), 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

1/2 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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 533; amended Pub. L. 101-194, title V, Sec. 506(b)(10), Nov.

30, 1989, 103 Stat. 1759; Pub. L. 102-378, Sec. 2(65), Oct. 2,

1992, 106 Stat. 1354; Pub. L. 107-296, title XIII, Sec.

1321(a)(5)(B), Nov. 25, 2002, 116 Stat. 2297.)

-REFTEXT-

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, 49 Stat. 620,

as amended. Title II of the Social Security Act is classified

generally to subchapter II (Sec. 401 et seq.) of chapter 7 of Title

42, The Public Health and Welfare. Sections 202, 203, 214, and 215

of the Social Security Act are classified to sections 402, 403,

414, and 415, respectively, of Title 42. For complete

classification of this Act to the Code, see section 1305 of Title

42 and Tables.

-MISC2-

AMENDMENTS

2002 - Subsec. (a)(2). Pub. L. 107-296, which directed amendment

of par. (2) by striking '', except that an individual entitled to

an annuity under section 8414(a) for failure to be recertified as a

senior executive shall be entitled to an annuity supplement without

regard to such applicable retirement age'', was executed by

striking out '', except that an individual entitled to an annuity

under section 8414(a) for failure to be recertified as a senior

executive shall be entitled to an annuity supplement without regard

to such applicable minimum retirement age'' before period at end,

to reflect the probable intent of Congress.

1992 - Subsec. (a)(2). Pub. L. 102-378 inserted period at end.

1989 - Subsec. (a)(2). Pub. L. 101-194 substituted '', except

that an individual entitled to an annuity under section 8414(a) for

failure to be recertified as a senior executive shall be entitled

to an annuity supplement without regard to such applicable minimum

retirement age'' for period at end.

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by Pub. L. 107-296 effective 60 days after Nov. 25,

2002, see section 4 of Pub. L. 107-296, set out as an Effective

Date note under section 101 of Title 6, Domestic Security.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101-194 effective Jan. 1, 1991, see section

506(d) of Pub. L. 101-194, set out as a note under section 3151 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8349, 8420a, 8421a, 8442

of this title; title 22 section 4071d; title 50 section 2154.

-CITE-

5 USC Sec. 8421a 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8421a. Reductions on account of earnings from work performed

while entitled to an annuity supplement

-STATUTE-

(a) 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) 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) The Office shall prescribe regulations under which this

section shall be applied in the case of a reemployed annuitant.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 535; amended Pub. L. 99-556, title I, Sec. 121, Oct. 27,

1986, 100 Stat. 3134; Pub. L. 106-394, Sec. 3(a), Oct. 30, 2000,

114 Stat. 1630.)

-REFTEXT-

REFERENCES IN TEXT

Section 203 of the Social Security Act, referred to in subsec.

(b)(4)(A), is classified to section 403 of Title 42, The Public

Health and Welfare.

-MISC2-

AMENDMENTS

2000 - Subsec. (b)(5). Pub. L. 106-394 added par. (5).

1986 - Subsecs. (c), (d). Pub. L. 99-556 redesignated subsec. (d)

as (c) and struck out former subsec. (c) which read as follows:

''If, after an individual ceases to be entitled to an annuity

supplement under section 8421 by reason of subsection (a)(3)(B) of

such section, any portion of the individual's excess earnings

remains outstanding, an amount not to exceed 25 percent of the

amount otherwise payable to such individual under this chapter for

each month shall be deducted from such monthly payment until the

full amount of that outstanding portion has been accounted for. To

the extent practicable, reductions under this subsection shall be

made by a level percentage.''

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-394, Sec. 3(b), Oct. 30, 2000, 114 Stat. 1630,

provided that: ''The amendment made by subsection (a) (amending

this section) shall apply with respect to reductions required to be

made in calendar years beginning after the date of the enactment of

this Act (Oct. 30, 2000).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 22 section 4071d; title 50

section 2154.

-CITE-

5 USC Sec. 8422 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8422. Deductions from pay; contributions for other service

-STATUTE-

(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) The applicable percentage under this paragraph for civilian

service 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 7.5 January 1, 1987, to

employee 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 7.5 7.75 7.9 7.5 January 1, 1987, to

officer, December 31, 1998.

firefighter, member January 1, 1999, to

of the Capitol December 31, 1999.

Police, member of January 1, 2000, to

the Supreme Court December 31, 2000.

Police, or air After December 31,

traffic controller 2000.

Nuclear materials 7 January 1, 1987, to

courier 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.

-------------------------------

(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.

(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 section 8415(i). (FOOTNOTE 1)

(FOOTNOTE 1) See References in Text note below.

(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 section 204 of

title 37 to the employee or Member for each period of military

service after December 1956. The amount of such payments shall be

based on such evidence of basic pay for military service as the

employee or Member may provide, or if the Office determines

sufficient evidence has not been so provided to adequately

determine basic pay for military service, such payment shall be

based on estimates of such basic pay provided to the Office under

paragraph (4).

(B) In any case where military service interrupts creditable

civilian service under this subchapter and reemployment pursuant to

chapter 43 of title 38 occurs on or after August 1, 1990, the

deposit payable under this paragraph may not exceed the amount that

would have been deducted and withheld under subsection (a)(1) from

basic pay during civilian service if the employee had not performed

the period of military service.

(2) Any deposit made under paragraph (1) 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 section 204 of title 37

payable under paragraph (1), with respect to any period of military

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.

(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, 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, 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.

(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).

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 536; amended Pub. L. 100-238, title I, Sec. 104(a), Jan. 8,

1988, 101 Stat. 1746; Pub. L. 103-82, title III, Sec. 371(b)(2),

Sept. 21, 1993, 107 Stat. 911; Pub. L. 103-353, Sec. 5(d), (e)(2),

Oct. 13, 1994, 108 Stat. 3174; Pub. L. 104-186, title II, Sec.

215(14), Aug. 20, 1996, 110 Stat. 1746; Pub. L. 104-316, title I,

Sec. 103(g), Oct. 19, 1996, 110 Stat. 3829; Pub. L. 105-33, title

VII, Sec. 7001(b)(1), Aug. 5, 1997, 111 Stat. 657; Pub. L. 105-61,

title V, Sec. 516(a)(8), Oct. 10, 1997, 111 Stat. 1307; Pub. L.

105-261, div. C, title XXXI, Sec. 3154(i)(1), Oct. 17, 1998, 112

Stat. 2255; Pub. L. 106-65, div. A, title X, Sec. 1066(d)(3), Oct.

5, 1999, 113 Stat. 773; Pub. L. 106-346, Sec. 101(a) (title V, Sec.

505(b)), Oct. 23, 2000, 114 Stat. 1356, 1356A-52; Pub. L. 106-553,

Sec. 1(a)(2) (title III, Sec. 308(c)(3)), Dec. 21, 2000, 114 Stat.

2762, 2762A-87; Pub. L. 107-107, div. A, title XI, Sec.

1132(b)(2)(A), (B), Dec. 28, 2001, 115 Stat. 1243, 1244; Pub. L.

107-135, title I, Sec. 122(b), Jan. 23, 2002, 115 Stat. 2451.)

-REFTEXT-

REFERENCES IN TEXT

Section 3101(a) of the Internal Revenue Code of 1986, referred to

in subsec. (a)(2)(B), is classified to section 3101(a) of Title 26,

Internal Revenue Code.

Section 8415(i), referred to in subsec. (d)(2), probably means

the section 8415(i) added by Pub. L. 107-135, title I, Sec. 122(a),

Jan. 23, 2002, 115 Stat. 2451, relating to inclusion of unused sick

leave in computing an annuity of a registered nurse with the

Veterans Health Administration.

The Economic Opportunity Act of 1964, referred to in subsec.

(f)(1), is Pub. L. 88-452, Aug. 20, 1964, 78 Stat. 508, as

amended. Title VIII of the Act probably means title VIII of Pub.

L. 88-452 as added by Pub. L. 89-794, title VIII, Sec. 801, Nov. 8,

1966, 80 Stat. 1472, and generally revised and amended by Pub. L.

90-222, title I, Sec. 110, Dec. 23, 1967, 81 Stat. 722, which was

classified generally to subchapter VIII (Sec. 2991 et seq.) of

chapter 34 of Title 42, The Public Health and Welfare, prior to its

repeal by Pub. L. 93-113, title VI, Sec. 603, Oct. 1, 1973, 87

Stat. 417. Part A of title VIII of the Act is part A of title VIII

of Pub. L. 88-452 as added by Pub. L. 90-222, Sec. 110, which was

classified generally to part A (Sec. 2992 et seq.) of subchapter

VIII of chapter 34 of Title 42, prior to its repeal by Pub. L.

93-113, Sec. 603. See sections 4951 et seq. and 5055 of Title 42.

For complete classification of this Act to the Code, see Tables.

Parts A, B, and C of title I of the Domestic Volunteer Service

Act of 1973, referred to in subsec. (f)(1), are classified to part

A (Sec. 4951 et seq.), part B (Sec. 4971 et seq.), and part C (Sec.

4991 et seq.), respectively, of subchapter I of chapter 66 of Title

42.

The Peace Corps Act, referred to in subsec. (f)(1), is Pub. L.

87-293, Sept. 22, 1961, 75 Stat. 612, as amended, which is

classified principally to chapter 34 (Sec. 2501 et seq.) of Title

22, Foreign Relations and Intercourse. Sections 5(c) and 6(1) of

the Act are classified to sections 2504(c) and 2505(1),

respectively, of Title 22. For complete classification of this Act

to the Code, see Short Title note set out under section 2501 of

Title 22 and Tables.

-MISC2-

AMENDMENTS

2002 - Subsec. (d). Pub. L. 107-135 designated existing

provisions as par. (1) and added par. (2).

2001 - Pub. L. 107-107, Sec. 1132(b)(2)(B), substituted ''other

service'' for ''military service'' in section catchline.

Subsec. (h). Pub. L. 107-107, Sec. 1132(b)(2)(A), added subsec.

(h).

2000 - Subsec. (a)(3). Pub. L. 106-553 inserted ''member of the

Supreme Court Police,'' after ''member of the Capitol Police,'' in

table for law enforcement officer, firefighter, member of the

Capitol Police, or air traffic controller.

Pub. L. 106-346, Sec. 101(a) (title V, Sec. 505(b)(1)), added

par. (3) and struck out former par. (3), which set out tables of

applicable percentages for employee, Congressional employee,

Member, law enforcement officer, firefighter, member of the Capitol

Police, air traffic controller, and nuclear materials courier.

Subsec. (e)(6). Pub. L. 106-346, Sec. 101(a) (title V, Sec.

505(b)(2)), inserted ''and'' at end of subpar. (A), substituted a

period for ''; and'' at end of subpar. (B), and struck out subpar.

(C) which read as follows: ''January 1, 2001, through December 31,

2002, shall be 3.5 percent.''

Subsec. (f)(4). Pub. L. 106-346, Sec. 101(a) (title V, Sec.

505(b)(3)), inserted ''and'' at end of subpar. (A), substituted a

period for ''; and'' at end of subpar. (B), and struck out subpar.

(C) which read as follows: ''January 1, 2001, through December 31,

2002, shall be 3.5 percent.''

1999 - Subsec. (a)(3). Pub. L. 106-65, in table for nuclear

materials courier, substituted ''October 16, 1998'' for ''the day

before the date of the enactment of the Strom Thurmond National

Defense Authorization Act for Fiscal Year 1999'' and ''October 17,

1998'' for ''The date of the enactment of the Strom Thurmond

National Defense Authorization Act for Fiscal Year 1999''.

1998 - Subsec. (a)(3). Pub. L. 105-261 inserted table for nuclear

materials courier.

1997 - Subsec. (a)(2), (3). Pub. L. 105-33, Sec. 7001(b)(1)(A),

added pars. (2) and (3) and struck out former par. (2) which read

as follows: ''The applicable percentage under this subsection for

any pay period shall be -

''(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) 7 1/2 percent, minus

''(ii) the same percentage as would apply in the case of an

employee under subparagraph (A)(ii).''

Subsec. (e)(1)(A). Pub. L. 105-33, Sec. 7001(b)(1)(B)(i),

inserted ''and subject to paragraph (6),'' after ''Except as

provided in subparagraph (B),''.

Subsec. (e)(6). Pub. L. 105-33, Sec. 7001(b)(1)(B)(ii), added

par. (6).

Subsec. (f)(1). Pub. L. 105-33, Sec. 7001(b)(1)(C)(i), inserted

at end ''This paragraph shall be subject to paragraph (4).''

Subsec. (f)(4). Pub. L. 105-33, Sec. 7001(b)(1)(C)(ii), added

par. (4).

Subsec. (g). Pub. L. 105-61 added subsec. (g).

1996 - Subsec. (c). Pub. L. 104-316 substituted ''Secretary of

the Treasury'' for ''Comptroller General of the United States''.

Subsec. (e)(1)(A), (3). Pub. L. 104-186 substituted ''Chief

Administrative Officer'' for ''Clerk''.

1994 - Subsec. (a)(2)(A)(ii). Pub. L. 103-353, Sec. 5(e)(2),

substituted ''Internal Revenue Code of 1986'' for ''Internal

Revenue Code of 1954''.

Subsec. (e)(1). Pub. L. 103-353, Sec. 5(d)(1), designated

existing provisions as subpar. (A) and substituted ''Except as

provided in subparagraph (B), each employee'' for ''Each employee''

and added subpar. (B).

Subsec. (e)(2)(B). Pub. L. 103-353, Sec. 5(d)(2), inserted before

comma at end ''following the period of military service for which

such deposit is due''.

1993 - Subsec. (f). Pub. L. 103-82 added subsec. (f).

1988 - Subsec. (e)(5). Pub. L. 100-238 added par. (5).

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by Pub. L. 107-135 effective 60 days after Jan. 23,

2002, and applicable to individuals who separate from service on or

after that effective date, see section 122(c) of Pub. L. 107-135,

set out as a note under section 8415 of this title.

EFFECTIVE DATE OF 2001 AMENDMENT

Amendment by Pub. L. 107-107 applicable only to separations from

service as an employee of the United States on or after Dec. 28,

2001, see section 1132(c) of Pub. L. 107-107, set out as a note

under section 8332 of this title.

EFFECTIVE DATE OF 2000 AMENDMENTS

Amendment by Pub. L. 106-553 effective on the first day of the

first applicable pay period that begins on Dec. 21, 2000, and

applicable only to an individual who is employed as a member of the

Supreme Court Police after Dec. 21, 2000, see section 1(a)(2)

(title III, Sec. 308(i), (j)) of Pub. L. 106-553, set out in a

Supreme Court Police Retirement note under section 8331 of this

title.

Amendment by Pub. L. 106-346 effective upon the close of calendar

year 2000 and applicable thereafter, see section 101(a) (title V,

Sec. 505(i)) of Pub. L. 106-346, set out as a note under section

8334 of this title.

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-261 effective at the beginning of the

first pay period that begins after Oct. 17, 1998, and applicable

only to an individual who is employed as a nuclear materials

courier, as defined by section 8331(27) or 8401(33) of this title,

after Oct. 17, 1998, see section 3154(m), (n) of Pub. L. 105-261,

set out as a note under section 8331 of this title.

EFFECTIVE DATE OF 1997 AMENDMENTS

Amendment by Pub. L. 105-61 applicable to any annuity commencing

before, on, or after Oct. 10, 1997, and effective with regard to

any payment made after the first month following Oct. 10, 1997, see

section 516(b) of Pub. L. 105-61, set out as a note under section

8334 of this title.

Amendment by Pub. L. 105-33 effective Oct. 1, 1997, see section

7001(f) of Pub. L. 105-33, set out as a note under section 8334 of

this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-353 effective with respect to

reemployments initiated on or after the first day after the 60-day

period beginning Oct. 13, 1994, with transition rules, see section

8 of Pub. L. 103-353, set out as an Effective Date note under

section 4301 of Title 38, Veterans' Benefits.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-82 effective Oct. 1, 1993, and

applicable with respect to any individual entitled to an annuity on

the basis of a separation from service occurring before, on, or

after Oct. 1, 1993, subject to rule relating to annuities based on

earlier separations, see sections 371(c) and 392 of Pub. L. 103-82,

set out as notes under section 8332 of this title and section 4951

of Title 42, The Public Health and Welfare, respectively.

NO REDUCTION IN AGENCY CONTRIBUTIONS

Pub. L. 105-261, div. C, title XXXI, Sec. 3154(i)(2), Oct. 17,

1998, 112 Stat. 2256, provided that: ''Contributions under

subsections (a) and (b) of section 8423 of title 5, United States

Code, shall not be reduced as a result of that portion of the

amendment made by paragraph (1) (amending this section) requiring

employee deductions at a rate in excess of 7.5 percent for the

period beginning on January 1, 1999, and ending on December 31,

2002.''

Section 7001(b)(2) of Pub. L. 105-33 provided that:

''Contributions under section 8423(a) and (b) of title 5, United

States Code, shall not be reduced as a result of the amendments

made under paragraph (1) (amending this section) of this

subsection.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8401, 8411, 8415, 8423,

8468 of this title; title 2 sections 121b, 162b, 2064; title 10

section 942; title 22 section 4045; title 28 sections 611, 627;

title 42 section 2297h-8; title 50 section 2152.

-CITE-

5 USC Sec. 8423 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8423. Government contributions

-STATUTE-

(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, law enforcement officers, members of

the Supreme Court Police, firefighters, nuclear materials

couriers, 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) In determining any normal-cost percentage to be applied under

this subsection, amounts provided for under section 8422 shall be

taken into account.

(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,

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, 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 Rate 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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 537; amended Pub. L. 102-378, Sec. 2(66), Oct. 2, 1992, 106

Stat. 1354; Pub. L. 102-496, title VIII, Sec. 803(c), Oct. 24,

1992, 106 Stat. 3253; Pub. L. 104-186, title II, Sec. 215(15), Aug.

20, 1996, 110 Stat. 1746; Pub. L. 105-261, div. C, title XXXI,

Sec. 3154(j), Oct. 17, 1998, 112 Stat. 2256; Pub. L. 106-553, Sec.

1(a)(2) (title III, Sec. 308(c)(4)), Dec. 21, 2000, 114 Stat. 2762,

2762A-87.)

-REFTEXT-

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.

-MISC2-

AMENDMENTS

2000 - Subsec. (a). Pub. L. 106-553 inserted ''members of the

Supreme Court Police,'' after ''law enforcement officers,''

wherever appearing.

1998 - Subsec. (a)(1)(B)(i), (3)(A). Pub. L. 105-261 inserted

''nuclear materials couriers,'' after ''firefighters,'' wherever

appearing.

1996 - Subsec. (a)(3)(C). Pub. L. 104-186 substituted ''Chief

Administrative Officer of the House of Representatives, from the

applicable accounts of the House of Representatives'' for ''Clerk

of the House of Representatives, from the contingent fund of the

House''.

1992 - Subsec. (a)(1)(B)(i). Pub. L. 102-496 substituted ''the

Central Intelligence Agency Retirement Act'' for ''the Central

Intelligence Agency Retirement Act of 1964 for Certain Employees''.

Pub. L. 102-378 substituted ''multiplied'' for ''multipled''.

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-553 effective on the first day of the

first applicable pay period that begins on Dec. 21, 2000, and

applicable only to an individual who is employed as a member of the

Supreme Court Police after Dec. 21, 2000, see section 1(a)(2)

(title III, Sec. 308(i), (j)) of Pub. L. 106-553, set out in a

Supreme Court Police Retirement note under section 8331 of this

title.

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-261 effective at the beginning of the

first pay period that begins after Oct. 17, 1998, and applicable

only to an individual who is employed as a nuclear materials

courier, as defined by section 8331(27) or 8401(33) of this title,

after Oct. 17, 1998, see section 3154(m), (n) of Pub. L. 105-261,

set out as a note under section 8331 of this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-496 effective first day of fourth month

beginning after Oct. 24, 1992, see section 805 of Pub. L. 102-496,

set out as an Effective Date note under section 2001 of Title 50,

War and National Defense.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8401, 8411, 8468 of this

title; title 2 sections 162b, 2064; title 22 section 4071f; title

42 section 2297h-8.

-CITE-

5 USC Sec. 8424 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8424. Lump-sum benefits; designation of beneficiary; order of

precedence

-STATUTE-

(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.

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 539; amended Pub. L. 106-361, Sec. 3(b), Oct. 27, 2000, 114

Stat. 1402.)

-MISC1-

AMENDMENTS

2000 - Subsec. (b)(1). Pub. L. 106-361 amended par. (1)

generally. Prior to amendment, par. (1) read as follows: ''Payment

of the lump-sum credit under subsection (a) -

''(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.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8402, 8433, 8442, 8468 of

this title; title 50 section 2154.

-CITE-

5 USC Sec. 8425 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER II - BASIC ANNUITY

-HEAD-

Sec. 8425. Mandatory separation

-STATUTE-

(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.

(b) A law enforcement officer, firefighter, or nuclear materials

courier who is otherwise eligible for immediate retirement under

section 8412(d) shall be separated from the service on the last day

of the month in which that law enforcement officer, firefighter, or

nuclear materials courier, 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.

(c) A member of the Capitol Police who is otherwise eligible for

immediate retirement under section 8412(d) 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) 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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 540; amended Pub. L. 101-428, Sec. 3(b)(1)(A), (2), Oct. 15,

1990, 104 Stat. 929, 930; Pub. L. 101-509, title V, Sec. 529 (title

IV, Sec. 409(b)), Nov. 5, 1990, 104 Stat. 1427, 1468; Pub. L.

102-378, Sec. 2(67), Oct. 2, 1992, 106 Stat. 1354; Pub. L. 103-283,

title III, Sec. 307(b)(1), July 22, 1994, 108 Stat. 1441; Pub. L.

105-261, div. C, title XXXI, Sec. 3154(k), Oct. 17, 1998, 112

Stat. 2256; Pub. L. 106-553, Sec. 1(a)(2) (title III, Sec.

308(c)(5)), Dec. 21, 2000, 114 Stat. 2762, 2762A-87; Pub. L.

107-27, Sec. 2(b), Aug. 20, 2001, 115 Stat. 207.)

-MISC1-

AMENDMENTS

2001 - Subsec. (b). Pub. L. 107-27 struck out first sentence

which read ''A firefighter who is otherwise eligible for immediate

retirement under section 8412(d) shall be separated from the

service on the last day of the month in which such firefighter

becomes 55 years of age or completes 20 years of service if then

over that age.'' and, in second sentence, inserted '',

firefighter,'' after ''law enforcement officer'' in two places and

substituted ''courier, as the case may be, becomes 57 years of

age'' for ''courier becomes 57 years of age''.

2000 - Subsec. (d). Pub. L. 106-553, Sec. 1(a)(2) (title III,

Sec. 308(c)(5)(A)), added subsec. (d). Former subsec. (d)

redesignated (e).

Subsec. (e). Pub. L. 106-553, Sec. 1(a)(2) (title III, Sec.

308(c)(5)), redesignated subsec. (d) as (e) and substituted

''Police or Supreme Court Police)'' for ''Police)''.

1998 - Subsec. (b). Pub. L. 105-261, in second sentence, inserted

''or nuclear materials courier'' after ''law enforcement officer''

in two places.

1994 - Subsec. (b). Pub. L. 103-283, Sec. 307(b)(1)(A), struck

out ''member of the Capitol Police or'' before ''firefighter who

is'' and ''member or'' before ''firefighter becomes'' in first

sentence.

Subsecs. (c), (d). Pub. L. 103-283, Sec. 307(b)(1)(B), (C), added

subsec. (c) and redesignated former subsec. (c) as (d).

1992 - Subsec. (b). Pub. L. 102-378 amended first sentence

generally and, in second sentence, substituted ''becomes'' for

''become''. Prior to amendment, first sentence read as follows: ''A

law enforcement officer, member of the Capitol Police, or

firefighter who is otherwise eligible for immediate retirement

under section 8412(d) shall be separated from the service on the

last day of the month in which that law enforcement officer, member

of the Capitol Police, or firefighter becomes 55 years of age or

completes 20 years of service if then over that age.''

1990 - Subsec. (b). Pub. L. 101-509, Sec. 529 (title IV, Sec.

409(b)(1)), which directed the amendment of subsec. (b) by striking

out ''law enforcement officer or'' wherever appearing in first

sentence, could not be executed because of a prior amendment by

Pub. L. 101-428, Sec. 3(b)(1)(A), see below.

Pub. L. 101-509, Sec. 529 (title IV, Sec. 409(b)(2)), inserted

after first sentence ''A law enforcement officer who is otherwise

eligible for immediate retirement under section 8412(d) shall be

separated from the service on the last day of the month in which

that law enforcement officer become 57 years of age or completes 20

years of service if then over that age.''

Pub. L. 101-428, Sec. 3(b)(1)(A), substituted ''officer, member

of the Capitol Police, or'' for ''officer or'' in two places.

Subsec. (c). Pub. L. 101-428, Sec. 3(b)(2), inserted ''(other

than a member of the Capitol Police)'' after ''employee''.

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-553 effective on the first day of the

first applicable pay period that begins on Dec. 21, 2000, and

applicable only to an individual who is employed as a member of the

Supreme Court Police after Dec. 21, 2000, see section 1(a)(2)

(title III, Sec. 308(i), (j)) of Pub. L. 106-553, set out in a

Supreme Court Police Retirement note under section 8331 of this

title.

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-261 effective 1 year after Oct. 17,

1998, and applicable only to an individual who is employed as a

nuclear materials courier, as defined by section 8331(27) or

8401(33) of this title, after Oct. 17, 1998, see section 3154(m),

(n) of Pub. L. 105-261, set out as a note under section 8331 of

this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-378 effective Nov. 5, 1990, see section

9(b)(6) of Pub. L. 102-378, set out as a note under section 6303 of

this title.

EXCEPTION TO AUTOMATIC SEPARATION OF MEMBERS OF CAPITOL POLICE

Section 3(b)(1)(B) of Pub. L. 101-428 provided that: ''Nothing in

section 8425(b) of title 5, United States Code, as amended by

subparagraph (A), shall require the automatic separation of any

member of the Capitol Police before the end of the 2-year period

beginning on the date of enactment of this Act (Oct. 15, 1990).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 8415 of this title.

-CITE-

5 USC SUBCHAPTER III - THRIFT SAVINGS PLAN 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER III - THRIFT SAVINGS PLAN

.

-HEAD-

SUBCHAPTER III - THRIFT SAVINGS PLAN

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 3521, 8116, 8351,

8402, 8424, 8461, 8471, 8472, 8473, 8474, 8477 of this title; title

2 sections 162b, 2064; title 10 sections 945, 2467; title 22

sections 4069, 4071h; title 26 sections 3121, 7701; title 28

sections 178, 377, 611, 627; title 31 section 9503; title 37

section 211; title 39 section 1005; title 50 section 2154.

-CITE-

5 USC Sec. 8431 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER III - THRIFT SAVINGS PLAN

-HEAD-

Sec. 8431. Certain transfers to be treated as a separation

-STATUTE-

(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 chapter 83;

and

(3) any other retirement system under which individuals may

contribute to the Thrift Savings Fund through withholdings from

pay.

-SOURCE-

(Added Pub. L. 106-168, title II, Sec. 203(a)(1), Dec. 12, 1999,

113 Stat. 1820.)

-MISC1-

PRIOR PROVISIONS

A prior section 8431, added Pub. L. 99-335, title I, Sec. 101(a),

June 6, 1986, 100 Stat. 541; amended Pub. L. 101-509, title V, Sec.

529 (title I, Sec. 101(b)(6)(B)), Nov. 5, 1990, 104 Stat. 1427,

1440, provided a definition of ''basic pay'' for this subchapter,

prior to repeal by Pub. L. 104-208, div. A, title I, Sec. 101(f)

(title VI, Sec. 659 (title II, Sec. 206(a)(2), 207)), Sept. 30,

1996, 110 Stat. 3009-314, 3009-372, 3009-378, effective Sept. 30,

1996.

EFFECTIVE DATE

Pub. L. 106-168, title II, Sec. 203(c), Dec. 12, 1999, 113 Stat.

1820, provided that: ''The amendments made by this section

(enacting this section and amending section 8351 of this title)

shall apply with respect to transfers occurring before, on, or

after the date of the enactment of this Act (Dec. 12, 1999), except

that, for purposes of applying such amendments with respect to any

transfer occurring before such date of enactment, the date of such

transfer shall be considered to be the date of the enactment of

this Act. The Executive Director (within the meaning of section

8401(13) of title 5, United States Code) may prescribe any

regulations necessary to carry out this subsection.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 8351 of this title.

-CITE-

5 USC Sec. 8432 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER III - THRIFT SAVINGS PLAN

-HEAD-

Sec. 8432. Contributions

-STATUTE-

(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 The maximum percent-

beginning in fiscal year: age 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) The Executive Director shall prescribe regulations

under which employees and Members shall be afforded a reasonable

period every 6 months to elect to make contributions under

subsection (a), to modify the amount to be contributed under such

subsection, or to terminate such contributions. An election to

make such contributions shall remain in effect until modified or

terminated.

(B) The amount to be contributed pursuant to an election under

subparagraph (A) (or any election allowable by virtue of paragraph

(4)) shall be the percentage of basic pay or amount designated by

the employee or Member.

(2) Under the regulations -

(A) an employee or Member who has not previously been eligible

to make an election under this subsection shall not become so

eligible until the second period (described in paragraph (1))

beginning after the date of commencing service as an employee or

Member;

(B) an employee or Member whose appointment or election to a

position or office in the Federal Government follows a previous

period of service during which that individual met the

requirements of subparagraph (A) shall be eligible to make an

election under this subsection notwithstanding any period of

separation;

(C) an employee or Member who elects under subparagraph (D) to

terminate contributions shall not again become eligible to make

an election under this subsection until the second period

(described in paragraph (1)) commencing after the election to

terminate; and

(D) an election to terminate may be made under this

subparagraph at any time other than during a period afforded

under paragraph (1).

(3) An employee or Member who elects to become subject to this

chapter under section 301 of the Federal Employees' Retirement

System Act of 1986 may make the first election for the purpose of

subsection (a) during the period prescribed for such purpose by the

Executive Director. The period prescribed by the Executive Director

shall commence on the date on which the employee or Member makes

the election to become subject to this chapter.

(4) The Executive Director shall prescribe such regulations as

may be necessary to carry out the following:

(A) Notwithstanding subparagraph (A) of paragraph (2), an

employee or Member described in such subparagraph shall be

afforded a reasonable opportunity to first make an election under

this subsection beginning on the date of commencing service or,

if that is not administratively feasible, beginning on the

earliest date thereafter that such an election becomes

administratively feasible, as determined by the Executive

Director.

(B) An employee or Member described in subparagraph (B) of

paragraph (2) shall be afforded a reasonable opportunity to first

make an election under this subsection (based on the appointment

or election described in such subparagraph) beginning on the date

of commencing service pursuant to such appointment or election

or, if that is not administratively feasible, beginning on the

earliest date thereafter that such an election becomes

administratively feasible, as determined by the Executive

Director.

(C) Notwithstanding the preceding provisions of this paragraph,

contributions under paragraphs (1) and (2) of subsection (c)

shall not be payable with respect to any pay period before the

earliest pay period for which such contributions would otherwise

be allowable under this subsection if this paragraph had not been

enacted.

(D) Sections 8351(a)(2), 8440a(a)(2), 8440b(a)(2), 8440c(a)(2),

and 8440d(a)(2) shall be applied in a manner consistent with the

purposes of subparagraphs (A) and (B), to the extent those

subparagraphs can be applied with respect thereto.

(E) Nothing in this paragraph shall affect paragraph (3).

(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) 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 section 8411(b)(2) of

this title; and

(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 section 8411(b)(2) of this title;

and

(ii) interest on such amount computed with respect to such

service in the manner provided in paragraphs (2) and (3) of

section 8334(e) of this title.

(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 section 3132(a)(7) of this title);

(ii) a position listed in section 5312, 5313, 5314, 5315, or

5316 of this title or a position placed in level IV or V of the

Executive Schedule under section 5317 of this title; or

(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;

or

(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.

(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 chapter 83.

(h) No transfers or contributions may be made to the Thrift

Savings Fund except as provided in this chapter or section 8351 of

this title.

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 541; amended Pub. L. 99-509, title VI, Sec. 6001(a)(1), (2),

Oct. 21, 1986, 100 Stat. 1929, 1930; Pub. L. 100-20, Sec. 1(b),

Apr. 7, 1987, 101 Stat. 265; Pub. L. 100-238, title I, Sec. 114,

115, 121, Jan. 8, 1988, 101 Stat. 1751, 1752; Pub. L. 103-353, Sec.

4(c), 5(e)(3), Oct. 13, 1994, 108 Stat. 3172, 3174; Pub. L. 104-93,

title III, Sec. 304(a), Jan. 6, 1996, 109 Stat. 965; Pub. L.

104-186, title II, Sec. 215(16), Aug. 20, 1996, 110 Stat. 1746;

Pub. L. 104-316, title I, Sec. 103(g), Oct. 19, 1996, 110 Stat.

3829; Pub. L. 106-361, Sec. 1(a), 2(a), (b)(1)-(3), Oct. 27, 2000,

114 Stat. 1400, 1401; Pub. L. 106-554, Sec. 1(a)(4) (div. B, title

I, Sec. 138(a)(1)), Dec. 21, 2000, 114 Stat. 2763, 2763A-233; Pub.

L. 107-304, Sec. 1(b)(1), Nov. 27, 2002, 116 Stat. 2363.)

-REFTEXT-

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.

Section 301 of the Federal Employees' Retirement System Act of

1986 (Pub. L. 99-335), referred to in subsec. (b)(3), is set out as

a note under section 8331 of this title.

Section 204 of the Federal Employees' Retirement Contribution

Temporary Adjustment Act of 1983 (Pub. L. 98-168), referred to in

subsec. (c)(3)(B)(iii), is set out as a note under section 8331 of

this title.

-MISC2-

AMENDMENTS

2002 - Subsec. (a)(3). Pub. L. 107-304 added par. (3).

2000 - Subsec. (a). Pub. L. 106-554 designated existing

provisions as par. (1), substituted ''the maximum percentage of

such employee's or Member's basic pay for such pay period allowable

under paragraph (2).'' for ''10 percent of such individual's basic

pay for such period.'', and added par. (2).

Pub. L. 106-361, Sec. 2(b)(1), substituted ''(b)'' for ''(b)(1)''

and ''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'' for ''Contributions made under this subsection

during any 6-month period for which an election period is provided

under subsection (b)(1) shall be made each pay period during such

6-month period pursuant to a program of regular contributions

provided in regulations prescribed by the Executive Director''.

Subsec. (b)(1)(B). Pub. L. 106-361, Sec. 2(b)(2), inserted ''(or

any election allowable by virtue of paragraph (4))'' after

''subparagraph (A)''.

Subsec. (b)(3). Pub. L. 106-361, Sec. 2(b)(3), substituted ''An''

for ''Notwithstanding paragraph (2)(A), an''.

Subsec. (b)(4). Pub. L. 106-361, Sec. 2(a), amended par. (4)

generally. Prior to amendment, par. (4) read as follows:

''(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). Pub. L. 106-361, Sec. 1(a), added subsec. (j).

1996 - Subsec. (e). Pub. L. 104-186 substituted ''Chief

Administrative Officer of the House of Representatives, the Chief

Administrative Officer may pay from the applicable accounts'' for

''Clerk of the House of Representatives, the Clerk may pay from the

contingent fund''.

Subsec. (f). Pub. L. 104-316 substituted ''Secretary of the

Treasury'' for ''Comptroller General of the United States''.

Subsec. (g)(5). Pub. L. 104-93 added par. (5).

1994 - Subsec. (d). Pub. L. 103-353, Sec. 5(e)(3), substituted

''Internal Revenue Code of 1986'' for ''Internal Revenue Code of

1954''.

Subsec. (i). Pub. L. 103-353, Sec. 4(c), added subsec. (i).

1988 - Subsec. (c)(1)(A). Pub. L. 100-238, Sec. 121(a),

substituted ''At the time prescribed by the Executive Director, but

no later than 12 days after the end of'' for ''At the end of'' 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)'' for ''at the end of each

succeeding pay period''.

Subsec. (c)(2)(A). Pub. L. 100-238, Sec. 121(b), substituted

''within such time as the Executive Director may prescribe, but no

later than 12 days after the end of each such pay period'' for ''at

the end of such pay period''.

Subsec. (d). Pub. L. 100-238, Sec. 114, inserted at end

''However, no contribution made under subsection (c)(3) shall be

subject to, or taken into account, for purposes of the preceding

sentence.''

Subsec. (g)(1). Pub. L. 100-238, Sec. 115(1), substituted

''Except as otherwise provided in this subsection'' for ''Except as

provided in paragraphs (2) and (3)''.

Subsec. (g)(4). Pub. L. 100-238, Sec. 115(2), added par. (4).

1987 - Subsec. (b)(4)(A). Pub. L. 100-20 substituted

''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'' for ''Notwithstanding paragraph (2)(A), an employee or

Member who is an employee or Member on January 1, 1987, continues

as an employee or Member without a break in service through April

1, 1987, and has creditable service described in section 8411(b)(2)

of this title may make the first election for the purpose of

subsection (a) during the election period prescribed for such

purpose by the Executive Director''.

1986 - Subsec. (b)(4). Pub. L. 99-509, Sec. 6001(a)(1),

designated existing provisions as subpar. (A), inserted ''continues

as an employee or Member without a break in service through April

1, 1987,'' substituted ''April 1, 1987'' for ''January 1, 1987'',

substituted ''the date on which the employee or Member makes that

election'' for ''the last day of that election period'', and added

subpar. (B).

Subsec. (c)(1). Pub. L. 99-509, Sec. 6001(a)(2)(A), designated

existing provisions as subpar. (A) and added subpars. (B) and (C).

Subsec. (c)(2)(C). Pub. L. 99-509, Sec. 6001(a)(2)(B), added

subpar. (C).

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by Pub. L. 107-304 effective as of the earliest

practicable date determined by the Executive Director in

regulations, see section 1(c) of Pub. L. 107-304, set out as a note

under secton 8351 of this title.

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-361, Sec. 1(b), Oct. 27, 2000, 114 Stat. 1400,

provided that: ''The amendment made by this section (amending this

section) shall take effect at the earliest practicable date after

September 30, 2000, as determined by the Executive Director in

regulations.'' (Final regulations implementing the amendments

became effective May 2, 2001. See 66 F.R. 22088.)

Pub. L. 106-361, Sec. 2(c)(1), Oct. 27, 2000, 114 Stat. 1401,

provided that: ''The amendments made by this section (amending this

section and sections 8439, 8440a, and 8440d of this title) shall

take effect at the earliest practicable date after September 30,

2000, as determined by the Executive Director in regulations.''

(Final regulations implementing the amendments became effective May

2, 2001. See 66 F.R. 22088.)

EFFECTIVE DATE OF 1996 AMENDMENT

Section 304(b) of Pub. L. 104-93 provided that: ''The amendment

made by subsection (a) (amending this section) shall apply to

offenses upon which the requisite annuity forfeitures are based

occurring on or after the date of the enactment of this Act (Jan.

6, 1996).''

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by section 4(c) of Pub. L. 103-353 effective Oct. 13,

1994, and applicable 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 chapter 43 of Title 38, Veterans' Benefits, occurs on or

after Aug. 2, 1990, with special rules for applying amendment to

employees restored or reemployed before effective date, see section

4(e), (f) of Pub. L. 103-353, set out as an Effective Date note

under section 8432b of this title.

Amendment by section 5(e)(3) of Pub. L. 103-353 effective with

respect to reemployments initiated on or after the first day after

the 60-day period beginning Oct. 13, 1994, with transition rules,

see section 8 of Pub. L. 103-353, set out as an Effective Date note

under section 4301 of Title 38.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 6001(f) of Pub. L. 99-509 provided that: ''This section

(amending this section and section 8472 of this title, enacting

provisions set out as notes under this section, and amending

provisions set out as a note under section 8351 of this title),

other than subsection (d) (set out below), and the amendments made

by this section shall take effect on January 1, 1987.''

REGULATIONS

Section 6001(d) of Pub. L. 99-509 provided that: ''The Executive

Director of the Federal Retirement Thrift Investment Board may

prescribe regulations to carry out subsections (a), (b), and (c)

(amending this section, enacting provisions set out as notes under

this section, and amending provisions set out as a note under

section 8351 of this title) and the amendments made by subsections

(a) and (b).''

SAVINGS PROVISIONS

Pub. L. 106-361, Sec. 2(c)(2), Oct. 27, 2000, 114 Stat. 1401,

provided that: ''Notwithstanding any other provision of this

section (amending this section and sections 8439, 8440a, and 8440d

of this title and enacting provisions set out as a note under this

section), until the amendments made by this section take effect

(see Effective Date of 2000 Amendment note above), title 5, United

States Code, shall be applied as if this section had not been

enacted.''

ELIGIBILITY OF CERTAIN INDIVIDUALS TO PARTICIPATE IN THRIFT SAVINGS

PLAN

Section 125 of Pub. L. 100-238, as amended by Pub. L. 107-347,

title II, Sec. 209(g)(3), Dec. 17, 2002, 116 Stat. 2932, provided

that:

''(a) Definitions. - For purposes of this section -

''(1) the term 'Executive Director' means the Executive

Director under section 8474 of title 5, United States Code; and

''(2) the term 'Thrift Savings Plan' refers to the program

under subchapter III of chapter 84 of title 5, United States

Code.

''(b) Regulations. -

''(1) In general. - The Executive Director shall prescribe

regulations relating to participation in the Thrift Savings Plan

by an individual described in subsection (c).

''(2) Specific matters to be included. - Under the regulations

-

''(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 section 8432(c) of title 5, United States Code,

if such authority were the individual's employing agency under

such provisions.

''(c) Applicability. - This section applies with respect to -

''(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

section 8331(1) or 8401(11) of title 5, United States Code);

''(B) an individual assigned from a Federal agency to a State

or local government under subchapter VI of chapter 33 of title

5, United States Code;

''(C) an individual appointed or otherwise assigned to one of

the cooperative extension services, as defined by section

1404(5) of the National Agricultural Research, Extension, and

Teaching Policy Act of 1977 (7 U.S.C. 3103(5)); or

''(D) an individual assigned from a Federal agency to a

private sector organization under chapter 37 of title 5, United

States Code; and

''(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) Effective Date. -

''(1) In general. - Except as provided in paragraph (2), the

regulations prescribed under this section shall become effective

in accordance with the provisions of such regulations.

''(2) Exception. - The regulations prescribed under this

section shall, with respect to individuals under subsection

(c)(1)(C), be effective as of January 1, 1987.''

CONTRIBUTIONS TO THRIFT SAVINGS FUND

Section 6001(a)(3) of Pub. L. 99-509 directed that contributions

made to Thrift Savings Fund under 5 U.S.C. 8432(c)(1)(B), (C) and

(3) be made as soon as practicable during the 15-day period which

began on Apr. 1, 1987.

INAPPLICABILITY OF LIMITATION ON NUMBER OF ELECTIONS WITHIN A

SIX-MONTH PERIOD

Section 6001(c) of Pub. L. 99-509 provided that the requirement

that contributions be made for a 6-month period after an election,

as provided in 5 U.S.C. 8432(a), did not apply to contributions

made pursuant to an election made during the period provided in 5

U.S.C. 8432(b)(4) or 206(b) of the Federal Employees' Retirement

System Act of 1986; that the first election period prescribed under

5 U.S.C. 8432(b)(1) commence on July 1, 1987; and that each

employee or Member who made such an election could make an election

under 5 U.S.C. 8432(b)(1) during the election period that began on

July 1, 1987.

PLAN FOR DELAYED CONTRIBUTIONS TO THRIFT SAVINGS FUND

Section 312 of Pub. L. 99-335 directed Executive Director of

Federal Retirement Thrift Investment Board to transmit to Congress,

not later than Jan. 1, 1988, a plan to afford Federal employees and

Members of Congress who make less than maximum amount of authorized

contributions to Thrift Savings Fund in any period an opportunity

to contribute to such Fund, in a later period, the excess of such

amount over the amount contributed during such period, with plan to

include such recommendations for legislation as Executive Director

considered appropriate.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8351, 8401, 8432a, 8432b,

8432c, 8433, 8437, 8439, 8440a, 8440b, 8440c, 8440d, 8440e, 8479 of

this title; title 2 sections 162b, 2064; title 10 section 942;

title 37 section 211; title 42 section 2297h-8.

-CITE-

5 USC Sec. 8432a 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER III - THRIFT SAVINGS PLAN

-HEAD-

Sec. 8432a. Payment of lost earnings

-STATUTE-

(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.

-SOURCE-

(Added Pub. L. 101-335, Sec. 2(a)(1), July 17, 1990, 104 Stat. 319;

amended Pub. L. 104-186, title II, Sec. 215(17), Aug. 20, 1996, 110

Stat. 1746.)

-MISC1-

AMENDMENTS

1996 - Subsec. (c). Pub. L. 104-186 substituted ''Chief

Administrative Officer of the House of Representatives, the Chief

Administrative Officer may pay from the applicable accounts'' for

''Clerk of the House of Representatives, the Clerk may pay from the

contingent fund''.

EFFECTIVE DATE

Section 2(b) of Pub. L. 101-335 provided that: ''The amendments

made by this section (enacting this section) shall apply with

respect to lost earnings attributable to errors made before, on, or

after the date of enactment of this Act (July 17, 1990).''

-CITE-

5 USC Sec. 8432b 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER III - THRIFT SAVINGS PLAN

-HEAD-

Sec. 8432b. Contributions of persons who perform military service

-STATUTE-

(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 chapter 43 of title

38.

(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) (including pursuant to an agreement

under section 211(d) of title 37) 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 section 8433(d), or paragraph (1) or (2) of section

8433(h), (FOOTNOTE 1) as the case may be, to have such employee's

separation (described in subsection (a)(1)) treated as if it had

never occurred.

(FOOTNOTE 1) See References in Text note below.

(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.

-SOURCE-

(Added Pub. L. 103-353, Sec. 4(a)(1), Oct. 13, 1994, 108 Stat.

3170; amended Pub. L. 106-65, div. A, title VI, Sec. 661(a)(3)(A),

(C), Oct. 5, 1999, 113 Stat. 671.)

-REFTEXT-

REFERENCES IN TEXT

Section 8433(h), referred to in subsec. (h)(2)(A), was

redesignated section 8433(f) by Pub. L. 103-226, Sec. 9(b)(2), Mar.

30, 1994, 108 Stat. 119.

-MISC2-

AMENDMENTS

1999 - Subsec. (b)(2)(B). Pub. L. 106-65, Sec. 661(a)(3)(A),

inserted ''or 8440e'' after ''section 8432(a)''.

Subsec. (c). Pub. L. 106-65, Sec. 661(a)(3)(C), designated

existing provisions as par. (1), redesignated former pars. (1) and

(2) as subpars. (A) and (B), respectively, of par. (1), and added

par. (2).

EFFECTIVE DATE OF 1999 AMENDMENT

Amendment by Pub. L. 106-65 effective 180 days after Oct. 30,

2000, unless postponed, see section 663 of Pub. L. 106-65, as

amended, set out as an Effective Date note under section 8440e of

this title.

EFFECTIVE DATE

Section 4(e), (f) of Pub. L. 103-353 provided that:

''(e) Effective Date; Applicability. - This section (enacting

this section and amending sections 8351, 8432, and 8433 of this

title) and the amendments made by this section -

''(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 chapter 43 of title 38, United States Code,

occurs on or after August 2, 1990.

''(f) Rules for Applying Amendments to Employees Restored or

Reemployed Before Effective Date. - In the case of any employee

(described in subsection (e)(2)) who is reemployed or restored (in

the circumstances described in section 8432b(a) of title 5, United

States Code, as amended by this section) before the date of

enactment of this Act (Oct. 13, 1994), the amendments made by this

section (enacting this section and amending sections 8351, 8432,

and 8433 of this title) shall apply to such employee, in accordance

with their terms, subject to the following:

''(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'.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8351, 8432, 8432c, 8433

of this title; title 38 section 4318.

-CITE-

5 USC Sec. 8432c 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER III - THRIFT SAVINGS PLAN

-HEAD-

Sec. 8432c. Contributions of certain persons reemployed after

service with international organizations

-STATUTE-

(a) In this section, the term ''covered person'' means any person

who -

(1) transfers from a position of employment covered by chapter

83 or 84 or subchapter I or II of chapter 8 (FOOTNOTE 1) of the

Foreign Service Act of 1980 to a position of employment with an

international organization pursuant to section 3582;

(FOOTNOTE 1) See References in Text note below.

(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 chapter 83 or 84 or subchapter I or II of chapter 8

(FOOTNOTE 1) of the Foreign Service Act of 1980 after separation

from the international organization.

(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.

-SOURCE-

(Added Pub. L. 106-113, div. B, Sec. 1000(a)(7) (div. A, title

III, Sec. 334(a)), Nov. 29, 1999, 113 Stat. 1536, 1501A-440.)

-REFTEXT-

REFERENCES IN TEXT

The Foreign Service Act of 1980, referred to in subsec. (a)(1),

(3), is Pub. L. 96-465, Oct. 17, 1980, 94 Stat. 2071, as amended.

Subchapters I and II of chapter 8 of the Act probably mean

subchapters I and II of chapter 8 of title I of the Act which are

classified generally to parts I (Sec. 4041 et seq.) and II (Sec.

4071 et seq.), respectively, of subchapter VIII of chapter 52 of

Title 22, Foreign Relations and Intercourse. For complete

classification of this Act to the Code, see Short Title note set

out under section 3901 of Title 22 and Tables.

-MISC2-

EFFECTIVE DATE

Pub. L. 106-113, div. B, Sec. 1000(a)(7) (div. A, title III,

Sec. 334(c)), Nov. 29, 1999, 113 Stat. 1536, 1501A-441, provided

that: ''The amendment made by subsection (a) (enacting this

section) shall apply to persons reemployed on or after the date of

enactment of this Act (Nov. 29, 1999).''

-CITE-

5 USC Sec. 8433 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER III - THRIFT SAVINGS PLAN

-HEAD-

Sec. 8433. Benefits and election of benefits

-STATUTE-

(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 section 8432(g) of this title, if any) as

provided in this section.

(b) Subject to section 8435 of this title, any employee or Member

who separates from Government employment is entitled and may elect

to withdraw from the Thrift Savings Fund the balance of the

employee's or Member's account as -

(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 and who has not made a withdrawal

under subsection (h)(1)(A) may make one withdrawal of any amount as

a single payment 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.

(d)(1) Subject to paragraph (3) (FOOTNOTE 1) and subsections (a)

and (c) of section 8435 of this title, an employee or Member may

change an election previously made under this subchapter.

(FOOTNOTE 1) So in original. Probably should be paragraph

''(2)''.

(2) A former employee or Member may not change an election under

this section on or after the date on which a payment is made in

accordance with such election or, in the case of an election to

receive an annuity, the date on which an annuity contract is

purchased to provide for the annuity elected by the former employee

or Member.

(e) 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 section 8434 of this title, an amount equal to the value of

that individual's account (as of death) shall, subject to any

decree, order, or agreement referred to in section 8435(c)(2) of

this title be paid in a manner consistent with section 8424(d) of

this title.

(f)(1) 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

paragraph as if it had never occurred.

(2) Unless otherwise elected under this section, and subject to

paragraph (1), benefits under this subchapter shall be paid as an

annuity commencing for an employee, Member, former employee, or

former Member on April 1 of the year following the latest of the

year in which -

(A) the employee, Member, former employee, or former Member

becomes 70 1/2 years of age; or

(B) the employee, Member, former employee, or former Member

separates from Government employment.

(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 section 8477(c)(1) of this title

shall not apply to loans made under this subsection.

(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 section 8435(e) of this title are satisfied.

(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 59 1/2; or

(B) financial hardship.

(2) A withdrawal under paragraph (1)(A) shall be available to

each eligible participant one time only.

(3) 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.

(4) Withdrawals under paragraph (1) shall be subject to such

other conditions as the Executive Director may prescribe by

regulation.

(5) A withdrawal may not be made under this subsection unless the

requirements of section 8435(e) of this title are satisfied.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 544; amended Pub. L. 100-238, title I, Sec. 132, Jan. 8,

1988, 101 Stat. 1760; Pub. L. 101-335, Sec. 5(a), 6(a)(2), July 17,

1990, 104 Stat. 321, 322; Pub. L. 102-484, div. D, title XLIV,

Sec. 4437(a), Oct. 23, 1992, 106 Stat. 2724; Pub. L. 103-226, Sec.

9(b), (i)(3)-(7), Mar. 30, 1994, 108 Stat. 119, 121, 122; Pub. L.

103-353, Sec. 4(b), 5(e)(4), Oct. 13, 1994, 108 Stat. 3172, 3174;

Pub. L. 104-208, div. A, title I, Sec. 101(f) (title VI, Sec. 659

(title II, Sec. 203(a))), Sept. 30, 1996, 110 Stat. 3009-314,

3009-372, 3009-374; Pub. L. 106-65, div. A, title VI, Sec.

661(a)(4), Oct. 5, 1999, 113 Stat. 672.)

-REFTEXT-

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.

-MISC2-

AMENDMENTS

1999 - Subsecs. (g)(1), (h)(3). Pub. L. 106-65 struck out ''under

section 8432(a) of this title'' after ''by the employee or

Member''.

1996 - Subsec. (b). Pub. L. 104-208, Sec. 101(f) (title VI, Sec.

659 (title II, Sec. 203(a)(1))), added subsec. (b) and struck out

former subsec. (b) which read as follows: ''Subject to section 8435

of this title, any employee or Member who separates from Government

employment is entitled and may elect -

''(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 70 1/2

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 70 1/2 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). Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659

(title II, Sec. 203(a)(1))), added subsec. (c) and struck out

former subsec. (c) which read as follows:

''(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). Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659

(title II, Sec. 203(a)(2)(A))), substituted ''(3)'' for ''(3)(A)''

after ''Subject to paragraph''.

Subsec. (d)(2). Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659

(title II, Sec. 203(a)(2)(C))), struck out subpar. (A) designation

before ''A former employee'' and struck out subpar. (B) which read

as follows: ''A modification of a date may not be made under

paragraph (2) on or after the date on which an annuity contract is

purchased to provide for the annuity involved, and may not specify

a date for the commencement of an annuity earlier than 90 days

after the date on which the modification is submitted to the

Executive Director (or such period shorter than 90 days as the

Executive Director may by regulation prescribe).''

Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659 (title II, Sec.

203(a)(2)(B))), redesignated par. (3) as (2) and struck out former

par. (2) which read as follows: ''Subject to paragraph (3)(B) and

section 8435(c) of this title, a former employee or Member who has

made an election pursuant to subsection (b)(2) may modify the date

specified in such election or in a previous modification under this

paragraph.''

Subsec. (d)(3). Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659

(title II, Sec. 203(a)(2)(B))), redesignated par. (3) as (2).

Subsec. (f)(1). Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659

(title II, Sec. 203(a)(3))), substituted ''less than an amount that

the Executive Director prescribes by regulation'' for ''$3,500 or

less'' and substituted a comma for ''unless the employee or Member

elects, at such time and otherwise in such manner as the Executive

Director prescribes, one of the options available under subsection

(b), or''.

Subsec. (f)(2). Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659

(title II, Sec. 203(a)(4))), in introductory provisions substituted

''April 1'' for ''February 1'', in subpar. (A) substituted ''70

1/2'' for ''65'' and inserted ''or'' after semicolon, redesignated

subpar. (C) as (B), and struck out former subpar. (B) which read as

follows: ''occurs the tenth anniversary of the year in which the

employee, Member, former employee, or former Member became subject

to this subchapter; or''.

Subsec. (g)(1). Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659

(title II, Sec. 203(a)(5)(A))), struck out ''after December 31,

1987, and'' after ''At any time'', and inserted at end ''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.''

Subsec. (g)(2) to (5). Pub. L. 104-208, Sec. 101(f) (title VI,

Sec. 659 (title II, Sec. 203(a)(5)(B))), redesignated pars. (3) to

(5) as (2) to (4), respectively, and struck out former par. (2)

which read as follows: ''An application under this subsection may

be approved only for -

''(A) the purchase of a primary residence;

''(B) educational expenses;

''(C) medical expenses; or

''(D) financial hardship.''

Subsec. (h). Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659

(title II, Sec. 203(a)(6))), added subsec. (h).

1994 - Subsec. (b). Pub. L. 103-226, Sec. 9(b)(1), amended

introductory provisions generally, substituting ''Subject to

section 8435 of this title, any employee or Member who separates

from Government employment is entitled and may elect - '' for

''Subject to section 8435 of this title, any employee or Member who

separates from Government employment entitled to an immediate

annuity under subchapter II of this chapter, any employee or Member

who separates from Government employment entitled to benefits under

subchapter I of chapter 81 of this title, any employee who

separates from Government employment pursuant to regulations under

section 3502(a) of this title or procedures under section 3595(a)

of this title in a reduction in force, and any employee or Member

who is entitled to receive disability benefits under subchapter V

of this chapter is entitled and may elect - ''.

Subsec. (b)(4). Pub. L. 103-226, Sec. 9(i)(3), substituted

''subsection (c)'' for ''subsection (e)''.

Subsec. (c). Pub. L. 103-226, Sec. 9(b)(2), redesignated subsec.

(e) as (c) and struck out former subsec. (c) which related to

permissible elections by employees separating from Government who

are entitled to a deferred annuity.

Subsec. (c)(1). Pub. L. 103-226, Sec. 9(b)(3), substituted

''directly to an eligible retirement plan or plans (as defined in

section 402(c)(8) of the Internal Revenue Code of 1986)'' for ''or

(c)(4) or required under subsection (d) directly to an eligible

retirement plan or plans (as defined in section 402(a)(5)(E) of the

Internal Revenue Code of 1954)''.

Subsec. (d). Pub. L. 103-353, Sec. 4(b)(1), inserted before

period at end '', 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''.

Pub. L. 103-226, Sec. 9(b)(2), redesignated subsec. (f) as (d)

and struck out former subsec. (d) which read as follows: ''Subject

to section 8435 of this title, any employee or Member who separates

from Government employment before becoming entitled to a deferred

annuity under subchapter II of this chapter shall transfer the

amount of the balance in the employee's or Member's account to an

eligible retirement plan as provided in subsection (e), 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.''

Subsec. (d)(1). Pub. L. 103-226, Sec. 9(i)(4), substituted ''(c)

of section 8435'' for ''(d) of section 8435''.

Subsec. (d)(2). Pub. L. 103-226, Sec. 9(b)(4), (i)(5),

substituted ''section 8435(c)'' for ''section 8435(d)'' and struck

out ''or (c)(2)'' after ''subsection (b)(2)''.

Subsec. (e). Pub. L. 103-226, Sec. 9(b)(2), (i)(6), redesignated

subsec. (g) as (e) and substituted ''section 8435(c)(2)'' for

''section 8435(d)(2)''. Former subsec. (e) redesignated (c).

Subsec. (f). Pub. L. 103-226, Sec. 9(b)(2), redesignated subsec.

(h) as (f). Former subsec. (f) redesignated (d).

Subsec. (f)(1). Pub. L. 103-226, Sec. 9(b)(5)(A), (B),

redesignated par. (2) as (1), substituted ''Notwithstanding

subsection (b), if an employee or Member separates from Government

employment, and such employee's or Member's'' for ''Notwithstanding

subsections (b) and (c), if an employee or Member separates from

Government employment under circumstances making such employee or

Member eligible to make an election under either of those

subsections, and such employee's or Member's'', struck out ''or

(c), as applicable'' before period at end, and struck out former

par. (1) which read as follows: ''Notwithstanding subsection (d),

if an employee or Member separates from Government employment

before becoming entitled to a deferred annuity under subchapter II,

and such employee's or Member's nonforfeitable account balance is

$3,500 or less, the Executive Director shall pay the nonforfeitable

account balance to the participant in a single payment unless the

employee or Member elects, at such time and otherwise in such

manner as the Executive Director prescribes, to have the

nonforfeitable account balance transferred to an eligible

retirement plan as provided in subsection (e), or unless an

election under section 8432b(h)(2) is made to treat such separation

for purposes of this paragraph as if it had never occurred.''

Subsec. (f)(2). Pub. L. 103-226, Sec. 9(b)(5)(A), (C),

redesignated par. (3) as (2) and substituted ''paragraph (1)'' for

''paragraphs (1) and (2)'' before '', benefits under this

chapter''. Former par. (2) redesignated (1).

Subsec. (f)(3). Pub. L. 103-226, Sec. 9(b)(5)(A), redesignated

par. (3) as (2).

Subsec. (g). Pub. L. 103-226, Sec. 9(b)(2), redesignated subsec.

(i) as (g). Former subsec. (g) redesignated (e).

Subsec. (g)(5). Pub. L. 103-226, Sec. 9(i)(7), substituted

''section 8435(e)'' for ''section 8435(f)''.

Subsec. (h). Pub. L. 103-226, Sec. 9(b)(2), redesignated subsec.

(h) as (f).

Subsec. (h)(1), (2). Pub. L. 103-353, Sec. 4(b)(2), inserted

before period at end '', or unless an election under section

8432b(h)(2) is made to treat such separation for purposes of this

paragraph as if it had never occurred''.

Subsec. (i). Pub. L. 103-226, Sec. 9(b)(2), redesignated subsec.

(i) as (g).

Subsec. (i)(4). Pub. L. 103-353, Sec. 5(e)(4), substituted

''Internal Revenue Code of 1986'' for ''Internal Revenue Code of

1954''.

1992 - Subsec. (b). Pub. L. 102-484 inserted ''any employee who

separates from Government employment pursuant to regulations under

section 3502(a) of this title or procedures under section 3595(a)

of this title in a reduction in force,'' after ''chapter 81 of this

title,''.

1990 - Subsec. (f)(3)(A). Pub. L. 101-335, Sec. 5(a)(1),

substituted ''an annuity contract is purchased to provide for the

annuity elected by the former employee or Member'' for ''an annuity

elected by the former employee or Member commences''.

Subsec. (f)(3)(B). Pub. L. 101-335, Sec. 5(a)(2), amended subpar.

(B) generally. Prior to amendment, subpar. (B) read as follows:

''A modification of a date may not be made under paragraph (2) on

or after such date and may not specify a date for the commencement

of an annuity earlier than 1 month after the date on which the

modification is submitted to the Executive Director.''

Subsec. (h). Pub. L. 101-335, Sec. 6(a)(2), amended subsec. (h)

generally. Prior to amendment, subsec. (h) read as follows:

''Unless otherwise elected under this section, benefits under this

subchapter shall be paid as an annuity commencing for an employee,

Member, former employee, or former Member on February 1 of the year

following the latest of the year in which -

''(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). Pub. L. 100-238 amended par. (3)

generally. Prior to amendment, par. (3) read as follows: ''Loans

under this subsection shall be subject to such conditions as the

Board may prescribe consistent with section 408(b)(1) of the

Employee Retirement Income Security Act of 1974 (29 U.S.C.

1108(b)(1)). The conditions shall be included in regulations issued

by the Executive Director.''

EFFECTIVE DATE OF 1999 AMENDMENT

Amendment by Pub. L. 106-65 effective 180 days after Oct. 30,

2000, unless postponed, see section 663 of Pub. L. 106-65, as

amended, set out as an Effective Date note under section 8440e of

this title.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-208 effective Sept. 30, 1996, and

withdrawals and elections as provided under such amendment to be

made at earliest practicable date as determined by Executive

Director in regulations, see section 101(f) (title VI, Sec. 659

(title II, Sec. 207)) of Pub. L. 104-208, set out as a note under

section 5545a of this title.

EFFECTIVE DATE OF 1994 AMENDMENTS

Amendment by section 4(b) of Pub. L. 103-353 effective Oct. 13,

1994, and applicable 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 chapter 43 of Title 38, Veterans' Benefits, occurs on or

after Aug. 2, 1990, with special rules for applying amendment to

employees restored or reemployed before effective date, see section

4(e), (f) of Pub. L. 103-353, set out as an Effective Date note

under section 8432b of this title.

Amendment by section 5(e)(4) of Pub. L. 103-353 effective with

respect to reemployments initiated on or after the first day after

the 60-day period beginning Oct. 13, 1994, with transition rules,

see section 8 of Pub. L. 103-353, set out as an Effective Date note

under section 4301 of Title 38.

Amendment by Pub. L. 103-226 effective Mar. 10, 1995, see section

9(j) of Pub. L. 103-226, set out as a note under section 8351 of

this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-484 applicable with respect to

separations occurring after Dec. 31, 1993, or such earlier date as

Executive Director (appointed under section 8474 of this title) may

by regulation prescribe, see section 4437(d) of Pub. L. 102-484,

set out as a note under section 8351 of this title.

EFFECTIVE DATE OF 1990 AMENDMENT

Section 5(d) of Pub. L. 101-335 provided that: ''The amendments

made by this section (amending this section and sections 8434, and

8435 of this title) shall be effective as of April 1, 1987.''

Amendment by section 6(a)(2) of Pub. L. 101-335 effective as of

second election period described in section 8432(b) of this title

beginning after July 17, 1990, or such earlier date as Executive

Director may by regulation prescribe, and applicable with respect

to separations occurring before, on, or after that effective date,

see section 6(c) of Pub. L. 101-335, set out as a note under

section 8351 of this title.

REGULATIONS

Section 6(b)(4) of Pub. L. 101-335 provided that: ''The Executive

Director (as appointed under section 8474(a) of title 5, United

States Code) shall prescribe regulations under which the purposes

of the amendments made by this section (amending this section and

sections 8351, 8401, 8435, 8440a, and 8440b of this title) shall be

carried out with respect to any individuals participating in the

Thrift Savings Plan who would not otherwise be affected by this

section.''

INVALIDITY OF CERTAIN PRIOR ELECTIONS

Section 101(f) (title VI, Sec. 659 (title II, Sec. 203(b))) of

Pub. L. 104-208 provided that: ''Any election made under section

8433(b)(2) of title 5, United States Code (as in effect before the

effective date of this title (Sept. 30, 1996)), with respect to an

annuity which has not commenced before the implementation date of

this title as provided by regulation by the Executive Director in

accordance with section 207 of this title (5 U.S.C. 5545a note),

shall be invalid.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8351, 8434, 8432b, 8435,

8436, 8437, 8440a, 8440b, 8440c, 8440d of this title; title 22

section 4071j; title 50 section 2154.

-CITE-

5 USC Sec. 8434 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER III - THRIFT SAVINGS PLAN

-HEAD-

Sec. 8434. Annuities: methods of payment; election; purchase

-STATUTE-

(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 section 8435(b) of this title, under such

regulations as the Executive Director shall prescribe, an employee,

Member, former employee, or former Member who elects under section

8433 of this title to receive an annuity under this subchapter

shall elect, on or before the date on which an annuity contract is

purchased to provide for that annuity, one of the methods of

payment prescribed under subsection (a).

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 546; amended Pub. L. 100-238, title I, Sec. 129, Jan. 8,

1988, 101 Stat. 1759; Pub. L. 101-335, Sec. 4(a), 5(b), July 17,

1990, 104 Stat. 321; Pub. L. 103-226, Sec. 9(c), (i)(8), Mar. 30,

1994, 108 Stat. 120, 122.)

-MISC1-

AMENDMENTS

1994 - Subsec. (b). Pub. L. 103-226, Sec. 9(i)(8), substituted

''section 8435(b)'' for ''section 8435(c)''.

Subsec. (c). Pub. L. 103-226, Sec. 9(c), amended subsec. (c)

generally. Prior to amendment, subsec. (c) read as follows:

''Notwithstanding an elimination of a method of payment by the

Board -

''(1) an employee, Member, former employee, or former Member

who is entitled under section 8412 of this title to an immediate

annuity not reduced under section 8415(f) of this title may elect

the eliminated method if the elimination of such method became

effective less than 5 years before the date on which the annuity

commences; and

''(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 section 8432 of this title before such

effective date and for earnings attributable to such amounts.''

1990 - Subsec. (b). Pub. L. 101-335, Sec. 5(b)(1), substituted

''an annuity contract is purchased to provide for that annuity,''

for ''the annuity commences,''.

Subsec. (d)(1). Pub. L. 101-335, Sec. 5(b)(2), substituted ''Not

earlier than 90 days (or such shorter period as the Executive

Director may by regulation prescribe) before an annuity'' for ''At

the time an annuity''.

Subsec. (e). Pub. L. 101-335, Sec. 4(a), added subsec. (e).

1988 - Subsec. (a)(2)(C), (D). Pub. L. 100-238 amended subpars.

(C) and (D) generally. Prior to amendment, subpars. (C) and (D)

read as follows:

''(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''.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-226 effective Mar. 10, 1995, see section

9(j) of Pub. L. 103-226, set out as a note under section 8351 of

this title.

EFFECTIVE DATE OF 1990 AMENDMENT

Section 4(b) of Pub. L. 101-335 provided that: ''The amendment

made by subsection (a) (amending this section) shall take effect 30

days after the date of enactment of this Act (July 17, 1990).''

Amendment by section 5(b) of Pub. L. 101-335 effective Apr. 1,

1987, see section 5(d) of Pub. L. 101-335, set out as a note under

section 8433 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8433, 8435, 8436 of this

title.

-CITE-

5 USC Sec. 8435 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER III - THRIFT SAVINGS PLAN

-HEAD-

Sec. 8435. Protections for spouses and former spouses

-STATUTE-

(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 section 8433 of this title

or change a withdrawal election only if the employee or Member (or

former employee or Member) satisfies the requirements of

subparagraph (B). A married employee or Member (or former employee

or Member) may make a withdrawal from a Thrift Savings Fund account

under subsection (c)(1) of section 8433 of this title only if the

employee or Member (or former employee or Member) satisfies the

requirements of subparagraph (B).

(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 section 8434 of this

title or subsection (b).

(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

section 8434 of this title, the method described in subsection

(a)(2)(B) of such section (or, if more than one form of such method

is available, the form which the Board determines to be the one

which provides for a surviving spouse a survivor annuity most

closely approximating the annuity of a surviving spouse under

section 8442 of this title) shall be deemed the applicable method

under such subsection (b) in the case of an employee, Member,

former employee, or former Member who is married on the date on

which an annuity contract is purchased to provide for the

employee's, Member's, former employee's, or former Member's annuity

under this subchapter.

(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 section 8434(a)(2)(E) of this title, or

(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 section 8434(a)(2)(E) of

this title and the dates on which the court decrees, orders, or

agreements applicable to the entitlement were issued, as the case

may be.

(5) Subsections (c) and (d) of section 8445 of this title shall

apply to an entitlement of a former spouse to a survivor annuity

under this subsection.

(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 section 8467 of this title.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 547; amended Pub. L. 101-335, Sec. 5(c), 6(a)(3), July 17,

1990, 104 Stat. 322, 323; Pub. L. 102-484, div. D, title XLIV,

Sec. 4437(b), Oct. 23, 1992, 106 Stat. 2724; Pub. L. 103-226, Sec.

9(d), (i)(9)-(15), Mar. 30, 1994, 108 Stat. 120, 122; Pub. L.

104-208, div. A, title I, Sec. 101(f) (title VI, Sec. 659 (title

II, Sec. 204)), Sept. 30, 1996, 110 Stat. 3009-314, 3009-372,

3009-376.)

-MISC1-

AMENDMENTS

1996 - Subsec. (a)(1)(A). Pub. L. 104-208, Sec. 101(f) (title VI,

Sec. 659 (title II, Sec. 204(1))), substituted ''may withdraw all

or part of a Thrift Savings Fund account under subsection (b)(2),

(3), or (4) of section 8433 of this title or change a withdrawal

election'' for ''may make an election under subsection (b)(3) or

(b)(4) of section 8433 of this title or change an election

previously made under subsection (b)(1) or (b)(2) of such section''

and inserted at end ''A married employee or Member (or former

employee or Member) may make a withdrawal from a Thrift Savings

Fund account under subsection (c)(1) of section 8433 of this title

only if the employee or Member (or former employee or Member)

satisfies the requirements of subparagraph (B).''

Subsec. (c)(1). Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659

(title II, Sec. 204(2)(A))), substituted ''An election or change of

election'' for ''An election, change of election, or modification

of the commencement date of a deferred annuity'' and ''or

transfer'' for ''modification, or transfer''.

Subsec. (c)(2)(B). Pub. L. 104-208, Sec. 101(f) (title VI, Sec.

659 (title II, Sec. 204(2)(B))), struck out ''modification,'' after

''change,'' in closing provisions.

Subsec. (e)(1). Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659

(title II, Sec. 204(3)(A))), in subpar. (A) inserted ''or

withdrawal'' after ''A loan'', ''and (h)'' after ''8433(g)'', and

''or withdrawal'' after ''such loan'', in subpar. (B) inserted ''or

withdrawal'' after ''loan'', and in subpar. (C) inserted ''or

withdrawal'' after ''to a loan'' and after ''for such loan''.

Subsec. (e)(2). Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659

(title II, Sec. 204(3)(B)(i))), inserted ''or withdrawal'' after

''loan''.

Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659 (title II, Sec.

204(3)(B)(ii))), which directed insertion of ''and (h)'' after

''8344(g)'', was executed by making the insertion after ''8433(g)''

to reflect the probable intent of Congress.

Subsec. (g). Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659

(title II, Sec. 204(4)(A))), inserted ''or withdrawals'' after

''loans''.

Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659 (title II, Sec.

204(4)(B))), which directed insertion of ''and (h)'' after

''8344(g)'' was executed by making the insertion after ''8433(g)''

to reflect the probable intent of Congress.

1994 - Subsec. (a)(1)(A). Pub. L. 103-226, Sec. 9(d)(1),

substituted ''subsection (b)(3) or (b)(4) of section 8433 of this

title or change an election previously made under subsection (b)(1)

or (b)(2)'' for ''subsection (b)(3), (b)(4), (c)(3), or (c)(4) of

section 8433 of this title or change an election previously made

under subsection (b)(1), (b)(2), (c)(1), or (c)(2)''.

Subsec. (a)(1)(B). Pub. L. 103-226, Sec. 9(i)(9), substituted

''subsection (b)'' for ''subsection (c)''.

Subsec. (b). Pub. L. 103-226, Sec. 9(d)(4), amended par. (2)

generally. Prior to amendment, par. (2) read as follows:

''Paragraph (1) shall not apply -

''(A) in the case of an employee or Member retiring under

section 8412, 8413, 8414, or 8451 of this title, or who separates

from Government employment pursuant to regulations under section

3502(a) of this title or procedures under section 3595(a) of this

title in a reduction in force, if -

''(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.''

Pub. L. 103-226, Sec. 9(d)(2), redesignated subsec. (c) as (b)

and struck out former subsec. (b) which read as follows:

''(b)(1) Except as provided in paragraph (2), a transfer may be

made by an employee or Member (or former employee or Member) under

section 8433(d) of this title only after the Executive Director

notifies any current spouse and each former spouse of the employee

or Member (or former employee or Member), if any, that the transfer

is to be made.

''(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). Pub. L. 103-226, Sec. 9(d)(3), (5), redesignated

subsec. (d) as (c) and, in par. (1), struck out ''and a transfer

may not be made under section 8433(d) of this title'' after

''effective under this subchapter''. Former subsec. (c)

redesignated (b).

Subsec. (d). Pub. L. 103-226, Sec. 9(d)(3), redesignated subsec.

(e) as (d). Former subsec. (d) redesignated (c).

Subsec. (d)(1)(B). Pub. L. 103-226, Sec. 9(i)(10), substituted

''subsection (c)(2)'' for ''subsection (d)(2)''.

Subsec. (d)(3)(A). Pub. L. 103-226, Sec. 9(i)(11), substituted

''subsection (b)(1)'' for ''subsection (c)(1)''.

Subsec. (d)(6). Pub. L. 103-226, Sec. 9(i)(12), substituted ''or

(b)(2)'' for ''or (c)(2)''.

Subsec. (e). Pub. L. 103-226, Sec. 9(d)(3), redesignated subsec.

(f) as (e). Former subsec. (e) redesignated (d).

Subsec. (e)(1)(A). Pub. L. 103-226, Sec. 9(i)(13), substituted

''section 8433(g)'' for ''section 8433(i)''.

Subsec. (e)(2). Pub. L. 103-226, Sec. 9(i)(14), substituted

''section 8433(g) of this title shall not be approved if approval

would have the result described under subsection (c)(1)'' for

''section 8433(i) of this title shall not be approved if approval

would have the result described in subsection (d)(1)''.

Subsec. (f). Pub. L. 103-226, Sec. 9(d)(3), redesignated subsec.

(g) as (f). Former subsec. (f) redesignated (e).

Subsec. (g). Pub. L. 103-226, Sec. 9(d)(3), (i)(15), redesignated

subsec. (h) as (g) and substituted ''section 8433(g)'' for

''section 8433(i)''. Former subsec. (g) redesignated (f).

Subsecs. (h), (i). Pub. L. 103-226, Sec. 9(d)(3), redesignated

subsec. (i) as (h). Former subsec. (h) redesignated (g).

1992 - Subsec. (c)(2)(A). Pub. L. 102-484 inserted '', or who

separates from Government employment pursuant to regulations under

section 3502(a) of this title or procedures under section 3595(a)

of this title in a reduction in force,'' after ''8451 of this

title''.

1990 - Subsec. (c)(1). Pub. L. 101-335, Sec. 5(c)(1), inserted

''an annuity contract is purchased to provide for'' after ''the

date on which'' and struck out ''commences'' after ''former

Member's annuity''.

Subsec. (d)(2)(B)(ii). Pub. L. 101-335, Sec. 5(c)(2), substituted

''an annuity contract is purchased to provide for the annuity'' for

''the annuity commences''.

Subsecs. (h), (i). Pub. L. 101-335, Sec. 6(a)(3), added subsec.

(h) and redesignated former subsec. (h) as (i).

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-208 effective Sept. 30, 1996, and

withdrawals and elections as provided under such amendment to be

made at earliest practicable date as determined by Executive

Director in regulations, see section 101(f) (title VI, Sec. 659

(title II, Sec. 207)) of Pub. L. 104-208, set out as a note under

section 5545a of this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-226 effective Mar. 10, 1995, see section

9(j) of Pub. L. 103-226, set out as a note under section 8351 of

this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-484 applicable with respect to

separations occurring after Dec. 31, 1993, or such earlier date as

Executive Director (appointed under section 8474 of this title) may

by regulation prescribe, see section 4437(d) of Pub. L. 102-484,

set out as a note under section 8351 of this title.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by section 5(c) of Pub. L. 101-335 effective Apr. 1,

1987, see section 5(d) of Pub. L. 101-335, set out as a note under

section 8433 of this title.

Amendment by section 6(a)(3) of Pub. L. 101-335 effective as of

second election period described in section 8432(b) of this title

beginning after July 17, 1990, or such earlier date as Executive

Director may by regulation prescribe, and applicable with respect

to separations occurring before, on, or after that effective date,

see section 6(c) of Pub. L. 101-335, set out as a note under

section 8351 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8351, 8433, 8434, 8436 of

this title.

-CITE-

5 USC Sec. 8436 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER III - THRIFT SAVINGS PLAN

-HEAD-

Sec. 8436. Administrative provisions

-STATUTE-

(a) The Executive Director shall make or provide for payments and

transfers in accordance with an election of an employee or Member

under section 8433 or 8434(b) of this title or, if applicable, in

accordance with section 8435 of this title.

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 550.)

-CITE-

5 USC Sec. 8437 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER III - THRIFT SAVINGS PLAN

-HEAD-

Sec. 8437. Thrift Savings Fund

-STATUTE-

(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 section 8432 of this title and all amounts

deposited under section 8479(b) of this title, increased by the

total net earnings from investments of sums in the Thrift Savings

Fund or reduced by the total net losses from investments of the

Thrift Savings Fund, and reduced by the total amount of payments

made from the Thrift Savings Fund (including payments for

administrative expenses).

(c) The sums in the Thrift Savings Fund are appropriated and

shall remain available without fiscal year limitation -

(1) to invest under section 8438 of this title;

(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 section 8440(b)

of this title;

(5) to make loans to employees and Members as authorized under

section 8433(g) of this title; and

(6) to purchase insurance as provided in section 8479(b)(2) of

this title.

(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 section 8432(g) of

this title and then out of net earnings in such Fund.

(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 (42 U.S.C.

659) or relating to the enforcement of a judgment for physically,

sexually, or emotionally abusing a child as provided under section

8467(a). For the purposes of this paragraph, an amount contributed

for the benefit of an individual under section 8432(c)(1)

(including any earnings attributable thereto) shall not be

considered part of the balance in such individual's account unless

such amount is nonforfeitable, as determined under applicable

provisions of section 8432(g).

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 550; amended Pub. L. 100-238, title I, Sec. 116, 117(a), Jan.

8, 1988, 101 Stat. 1751; Pub. L. 103-226, Sec. 9(i)(16), Mar. 30,

1994, 108 Stat. 122; Pub. L. 103-358, Sec. 2(b)(4), Oct. 14, 1994,

108 Stat. 3421.)

-MISC1-

AMENDMENTS

1994 - Subsec. (c)(5). Pub. L. 103-226 substituted ''section

8433(g)'' for ''section 8433(i)''.

Subsec. (e)(3). Pub. L. 103-358 substituted ''or relating to the

enforcement of a judgment for physically, sexually, or emotionally

abusing a child as provided under section 8467(a).'' for period at

end of first sentence.

1988 - Subsec. (d). Pub. L. 100-238, Sec. 117(a)(1), struck out

''attributable to sums contributed to such Fund under section

8432(c) of this title'' after ''such Fund''.

Subsec. (e)(1). Pub. L. 100-238, Sec. 117(a)(2), inserted

''subsection (d) and'' after ''Subject to''.

Subsec. (e)(3). Pub. L. 100-238, Sec. 116, inserted at end ''For

the purposes of this paragraph, an amount contributed for the

benefit of an individual under section 8432(c)(1) (including any

earnings attributable thereto) shall not be considered part of the

balance in such individual's account unless such amount is

nonforfeitable, as determined under applicable provisions of

section 8432(g).''

EFFECTIVE DATE OF 1994 AMENDMENTS

Amendment by Pub. L. 103-358 effective Oct. 14, 1994, and

applicable with respect to any decree, order, or other legal

process, or notice of agreement received by Office of Personnel

Management or Executive Director of Federal Retirement Thrift

Investment Board on or after Oct. 14, 1994, see section 3 of Pub.

L. 103-358, set out as a note under section 8345 of this title.

Amendment by Pub. L. 103-226 effective Mar. 10, 1995, see section

9(j) of Pub. L. 103-226, set out as a note under section 8351 of

this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Section 117(b) of Pub. L. 100-238 provided that: ''The amendments

made by subsection (a) (amending this section) shall take effect on

the first day of the first month beginning on or after the date of

the enactment of this Act (Jan. 8, 1988).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8351, 8439, 8471 of this

title.

-CITE-

5 USC Sec. 8438 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER III - THRIFT SAVINGS PLAN

-HEAD-

Sec. 8438. Investment of Thrift Savings Fund

-STATUTE-

(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 (29 U.S.C. 1002(3));

(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 (15 U.S.C. 80b-2(a)(2)) which -

(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 (15 U.S.C. 80b-3) if the

investment adviser has, on the last day of its latest fiscal

year ending before the date of a determination for the purpose

of this subparagraph, total client assets under its management

and control in excess of $50,000,000, and -

(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

section 8477 of this title, is unconditionally guaranteed by

-

(I) a person (as defined in section 8471(4) of this

title) who directly or indirectly, through one or more

intermediaries, controls, is controlled by, or is under

common control with the investment adviser and who has, on

the last day of the person's latest fiscal year ending

before the date of a determination for the purpose of this

clause, shareholder's or partner's equity in an amount

which, when added to the amount of the shareholder's or

partner's equity of the investment adviser on such day,

exceeds $750,000;

(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 (15 U.S.C. 78o) that

has, on the last day of the broker's or dealer's latest

fiscal year ending before the date of a determination for

the purpose of this clause, net worth in excess of

$750,000;

(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 section 8471(4) of this title) who is

affiliated with the investment adviser in a manner described in

clause (ii)(I) of such paragraph (8)(D), means the equity shown

in the most recent balance sheet prepared for such investment

adviser or affiliated person, in accordance with generally

accepted accounting principles, within 2 years before the date on

which the investment adviser's status as a qualified professional

asset manager is determined for the purposes of this section; and

(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); and

(E) an International Stock Index Investment Fund as provided in

paragraph (4).

(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.

(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 in

the Thrift Savings Fund available for investment, the Executive

Director shall invest such sums in the Government Securities

Investment Fund.

(d)(1) At least twice each year, an employee or Member (or former

employee or Member) may elect the investment funds 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 chapter 31 of title 31

that (notwithstanding subsection (e)(2) of this section) bear such

interest rates and maturity dates as are necessary to ensure that,

after such obligations are issued, the holdings of obligations of

the United States by the Government Securities Investment Fund will

replicate the obligations that would then be held by the Government

Securities Investment Fund under the procedure set forth in

paragraph (5), if the suspension of issuances under paragraph (1)

of this subsection had not occurred.

(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 section 3101(b) of title 31; and

(B) the term ''debt issuance suspension period'' means any

period for which the Secretary of the Treasury determines for

purposes of this subsection that the issuance of obligations of

the United States may not be made without exceeding the public

debt limit.

(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.

-SOURCE-

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100

Stat. 551; amended Pub. L. 100-43, Sec. 2, May 22, 1987, 101 Stat.

315; Pub. L. 100-366, Sec. 2(a), July 13, 1988, 102 Stat. 826; Pub.

L. 101-335, Sec. 3(a), July 17, 1990, 104 Stat. 320; Pub. L.

102-378, Sec. 2(68), Oct. 2, 1992, 106 Stat. 1355; Pub. L. 104-208,

div. A, title I, Sec. 101(f) (title VI, Sec. 659 (title I, Sec.

102)), Sept. 30, 1996, 110 Stat. 3009-314, 3009-372; Pub. L.

104-316, title I, Sec. 103(i), Oct. 19, 1996, 110 Stat. 3829.)

-MISC1-

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-208, Sec. 101(f) (title VI, Sec.

659 (title I, Sec. 102(1))), added par. (5), redesignated former

pars. (5) to (8) as (6) to (9), respectively, in par. (9)

substituted ''paragraph (8)(D)'' for ''paragraph (7)(D)'' in two

places, and added par. (10).

Subsec. (b). Pub. L. 104-208, Sec. 101(f) (title VI, Sec. 659

(title I, Sec. 102(2))), in par. (1) added subpars. (D) and (E) and

added pars. (3) and (4).

Subsec. (h)(1). Pub. L. 104-316 struck out ''and the Comptroller

General of the United States'' before period at end.

1992 - Subsec. (a)(7)(B). Pub. L. 102-378 substituted ''Deposit''

for ''Savings and Loan''.

1990 - Subsec. (b)(1)(A). Pub. L. 101-335, Sec. 3(a)(2),

substituted ''subsection (e)'' for ''subsection (f)''.

Subsec. (c)(1). Pub. L. 101-335, Sec. 3(a)(3), substituted

''The'' for ''Subject to subsection (e), the''.

Subsec. (d)(1). Pub. L. 101-335, Sec. 3(a)(4), struck out ''and

not subject to subsection (e)'' after ''individual's account''.

Subsec. (e). Pub. L. 101-335, Sec. 3(a)(1), redesignated subsec.

(f) as (e) and struck out former subsec. (e) which related to

minimum percentages to be invested in Government Securities

Investment Fund and limitations on reinvestment of sums invested in

Government Securities Investment Fund prior to years 1992 and 1997.

Subsec. (f). Pub. L. 101-335, Sec. 3(a)(1), redesignated subsec.

(g) as (f). Former subsec. (f) redesignated (e).

Subsec. (g). Pub. L. 101-335, Sec. 3(a)(1), (5), (6),

redesignated subsec. (h) as (g) and substituted ''subsection (e)''

for ''subsection (f)'' in pars. (1) and (2), ''subsection (e)(2)''

for ''subsection (f)(2)'' in par. (3), and ''subsection (h)'' for

''subsection (i)'' in par. (6). Former subsec. (g) redesignated

(f).

Subsecs. (h), (i). Pub. L. 101-335, Sec. 3(a)(1), (7),

redesignated subsec. (i) as (h) and substituted ''subsection (g)''

for ''subsection (h)'' in par. (1) and ''subsection (e)'' for

''subsection (f)'' in par. (2). Former subsec. (h) redesignated

(g).

1988 - Subsec. (e)(3)(A). Pub. L. 100-366 struck out ''and the

earnings attributable to the investment of such sums'' after

''paragraph (1)''.

1987 - Subsecs. (h), (i). Pub. L. 100-43 added subsecs. (h) and

(i).

EFFECTIVE DATE OF 1996 AMENDMENT

Section 101(f) (title VI, Sec. 659 (title I, Sec. 104)) provided

that: ''This title (title I (Sec. 101-104) of section 659 of

section 101(f) of Pub. L. 104-208, amending this section and

section 8439 of this title and enacting provisions set out as a

note under section 8401 of this title) shall take effect on the

date of enactment of this Act (Sept. 30, 1996), and the Funds

established under this title shall be offered for investment at the

earliest practicable election period (described in section 8432(b)

of title 5, United States Code) as determined by the Executive

Director in regulations.''

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-335 effective as of second election

period described in section 8432(b) of this title beginning after

July 17, 1990, or as of such earlier date as Executive Director may

by regulation prescribe, see section 3(c) of Pub. L. 101-335, set

out as a note under section 8351 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Section 2(b) of Pub. L. 100-366 provided that: ''The amendment

made by subsection (a) (amending this section) shall apply with

respect to earnings attributable to contributions made to the

Thrift Savings Fund on or after April 1, 1987.''

REMOVAL OF INVESTMENT RESTRICTIONS

Section 3(b)(4) of Pub. L. 101-335 provided that: ''Any other

provision of law, in effect on the date of enactment of this Act

(July 17, 1990), which provides that any amounts contributed to the

Thrift Savings Fund, or earnings thereon, may be invested or

reinvested only in the Government Securities Investment Fund

established under section 8438(b)(1)(A) of title 5, United States

Code, shall cease to be effective.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8437, 8439, 8472, 8477 of

this title.

-CITE-

5 USC Sec. 8439 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 84 - FEDERAL EMPLOYEES' RETIREMENT SYSTEM

SUBCHAPTER III - THRIFT SAVINGS PLAN

-HEAD-

Sec. 8439. Accounting and information

-STATUTE-

(a)(1) The Executive Director shall establish and maintain an

account for each individual who makes contributions or for whom

contributions are made under section 8432 of this title or who

makes contributions to the Thrift Savings Fund.

(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

section 8437(d) of this title, as determined by the Executive

Director.

(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 (29 U.S.C. 1023(a)(3)(D)).

(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

section 8438 of this title covering, and an evaluation of, each

such option the 5-year period preceding the date as of which such

evaluation is made.

(2) Information under this subsection shall be provided at least

30 calendar days before the beginning of each election period under

section 8432(b)(1)(A) of this title, and in a manner designed to

facilitate informed decisionmaking with respect to elections under

sections 8432 and 8438 of this title. Nothing in this paragraph

shall be considered to limit the dissemination of information only

to the times required under the preceding sentence.

(d) Each employee, Member, former employee, or former Member who

elects to invest in the Common Stock Index Investment Fund, the

Fixed Income Investment Fund, the International Stock Index

Investment Fund, or the Small Capitalization Stock Index Investment

Fund, defined in paragraphs (1), (3), (5), and (10), respectively,