Title III — Benefits relating to United States Tax Court

“(B) Contributions for benefit of judge—No contributions under section 8432(c) of title 5, United States Code, shall be made for the benefit of a judge who has filed an election to receive retired pay under subsection (e).”

“(F) Offset—In the case of a judge who receives a distribution from the Thrift Savings Plan and who later receives retired pay under subsection (d), the retired pay shall be offset by an amount equal to the amount of the distribution which represents the Government’s contribution to the individual’s Thrift Savings Account during years of service as a full-time judicial officer under the Federal Employees Retirement System, without regard to earnings attributable to such amount. Where such an offset would exceed 50 percent of the retired pay to be received in the first year, the offset may be divided equally over the first 2 years in which the individual receives the annuity.”

“(h) Entitlement to annuity

“(1) In general

“(A) Annuity to surviving spouse—If a judge or magistrate judge of the Tax Court described in paragraph (2) is survived by a surviving spouse but not by a dependent child, there shall be paid to such surviving spouse an annuity beginning with the day of the death of the judge or magistrate judge of the Tax Court or following the surviving spouse’s attainment of age 50, whichever is the later, in an amount computed as provided in subsection (m).

“(B) Annuity to surviving spouse and child—If a judge or magistrate judge of the Tax Court described in paragraph (2) is survived by a surviving spouse and dependent child or children, there shall be paid to such surviving spouse an annuity, beginning on the day of the death of the judge or magistrate judge of the Tax Court, in an amount computed as provided in subsection (m), and there shall also be paid to or on behalf of each such child an immediate annuity equal to the lesser of—

“(i) 10 percent of the average annual salary of such judge or magistrate judge of the Tax Court (determined in accordance with subsection (m)), or

“(ii) 20 percent of such average annual salary, divided by the number of such children.

“(C) Annuity to surviving dependent children—If a judge or magistrate judge of the Tax Court described in paragraph (2) leaves no surviving spouse but leaves a surviving dependent child or children, there shall be paid to or on behalf of each such child an immediate annuity equal to the lesser of—

“(i) 20 percent of the average annual salary of such judge or magistrate judge of the Tax Court (determined in accordance with subsection (m)), or

“(ii) 40 percent of such average annual salary divided by the number of such children.

“(2) Covered judges—Paragraph (1) applies to any judge or magistrate judge of the Tax Court electing under subsection (b)—

“(A) who dies while a judge or magistrate judge of the Tax Court after having rendered at least 18 months of civilian service computed as prescribed in subsection (n), for the last 18 months of which the salary deductions provided for by subsection (c)(1) or the deposits required by subsection (d) have actually been made or the salary deductions required by the civil service retirement laws have actually been made, or

“(B) who dies by assassination after having rendered less than 18 months of civilian service computed as prescribed in subsection (n) if, for the period of such service, the salary deductions provided for by subsection (c)(1) or the deposits required by subsection (d) have actually been made.

“(3) Termination of annuity

“(A) Surviving spouse—The annuity payable to a surviving spouse under this subsection shall be terminable upon such surviving spouse’s death or such surviving spouse’s remarriage before attaining age 55.

“(B) Surviving child—Any annuity payable to a child under this subsection shall be terminable upon the earliest of—

“(i) the child attainment of age 18,

“(ii) the child’s marriage, or

“(iii) the child’s death,

“(C) Dependent child after death of surviving spouse—In case of the death of a surviving spouse of a judge or magistrate judge of the Tax Court leaving a dependent child or children of the judge or magistrate judge of the Tax Court surviving such spouse, the annuity of such child or children shall be recomputed and paid as provided in paragraph (1)(C).

“(D) Recomputation with respect to other dependent children—In any case in which the annuity of a dependent child is terminated under this subsection, the annuities of any remaining dependent child or children based upon the service of the same judge or magistrate judge of the Tax Court shall be recomputed and paid as though the child whose annuity was so terminated had not survived such judge.

“(E) Special rule for assassinated judges—In the case of a survivor of a judge or magistrate judge of the Tax Court described in paragraph (2)(B), there shall be deducted from the annuities otherwise payable under this section an amount equal to the amount of salary deductions that would have been made if such deductions had been made for 18 months prior to the death of the judge or magistrate judge of the Tax Court.”

“(10) The terms assassinated and assassination mean the killing of a judge or magistrate judge of the Tax Court that is motivated by the performance by the judge or magistrate judge of the Tax Court of his or her official duties.”

“(u) Other benefits in case of assassination—In the case of a judge or magistrate judge of the Tax Court who is assassinated, an annuity shall be paid under this section notwithstanding a survivor’s eligibility for or receipt of benefits under chapter 81 of title 5, United States Code, except that the annuity for which a surviving spouse is eligible under this section shall be reduced to the extent that the total benefits paid under this section and chapter 81 of that title for any year would exceed the current salary for that year of the office of the judge or magistrate judge of the Tax Court.”

“(k) Teaching compensation of retired judges—For purposes of the limitation under section 501(a) of the Ethics in Government Act of 1978 (5 U.S.C. App.), any compensation for teaching approved under section 502(a)(5) of such Act shall not be treated as outside earned income when received by a judge of the United States Tax Court who has retired under subsection (b) for teaching performed during any calendar year for which such a judge has met the requirements of subsection (c), as certified by the chief judge.”

“(a) Appointment, tenure, and removal

“(1) Appointment—The chief judge may, from time to time, appoint and reappoint magistrate judges of the Tax Court for a term of 8 years. The magistrate judges of the Tax Court shall proceed under such rules as may be promulgated by the Tax Court.

“(2) Removal

“(A) In general—Except as provided in subparagraph (B), removal of a magistrate judge of the Tax Court during the term for which such magistrate judge is appointed shall be only for incompetency, misconduct, neglect of duty, or physical or mental disability. Removal shall not occur unless a majority of all the judges of the Tax Court concur in the order of removal. Before any order of removal shall be entered, a full specification of the charges shall be furnished to the magistrate judge of the Tax Court, and such magistrate judge shall be accorded by the judges of the Tax Court an opportunity to be heard on the charges.

“(B) Termination of office—The office of a magistrate judge of the Tax Court shall be terminated if the judges of the Tax Court determine that the services performed by such magistrate judge of the Tax Court are no longer needed.”

“(d) Salary—Each magistrate judge of the Tax Court shall receive salary—

“(1) at a rate equal to 92 percent of the rate for judges of the Tax Court, and

“(2) in the same installments as such judges.”

“(f) Exemption from Federal leave provisions

“(1) In general—A magistrate judge of the Tax Court shall be exempt from the provisions of subchapter I of chapter 63 of title 5, United States Code.

“(2) Treatment of unused leave

“(A) After service as magistrate judge of the Tax Court—If an individual who is exempted under paragraph (1) from the subchapter referred to in such paragraph was previously subject to such subchapter and, without a break in service, again becomes subject to such subchapter on completion of the individual’s service as a magistrate judge of the Tax Court, the unused annual leave and sick leave standing to the individual’s credit at the time such individual became a magistrate judge of the Tax Court is deemed to have remained to the individual’s credit.

“(B) Computation of annuity—In computing an annuity under section 8339 or 8415 of title 5, United States Code, the total service of an individual specified in subparagraph (A) who retires on an immediate annuity or dies leaving a survivor or survivors entitled to an annuity includes, without regard to the limitations imposed by subsection (f) of section 8339 of such title 5, the days of unused sick leave standing to the individual’s credit at the time such individual became a magistrate judge of the Tax Court, except that such days will not be counted in determining average pay or annuity eligibility.

“(C) Lump sum payment—Any accumulated and current accrued annual leave or vacation balances credited to a magistrate judge of the Tax Court as of the date of the enactment of this subsection shall be paid in a lump sum at the time of separation from service pursuant to the provisions and restrictions set forth in section 5551 of such title 5 and related provisions referred to in such section.”

“(g) Incidental powers—A magistrate judge of the Tax Court appointed under this section shall have the power to punish for contempt of the authority of the Tax Court as provided in section 7456(c), except the sentence imposed by such a magistrate judge of the Tax Court for any contempt shall not exceed the penalties for a Class C misdemeanor as set forth in sections 3571(b)(6) and 3581(b)(8) of title 18, United States Code. This subsection shall not be construed to limit the authority of a magistrate judge of the Tax Court to order sanctions under any other statute or any rule of the Tax Court prescribed pursuant to section 7453.”

“7443B. Retirement for magistrate judges of the Tax Court

“(a) Retirement

“(1) In general—Each magistrate judge of the Tax Court who makes an election under this section shall receive an annuity at the same rate and in the same manner as magistrate judges of the district courts of the United States pursuant to section 377 of title 28, United States Code.

“(2) Rules of application—For purposes of subsection (a), section 377 of title 28, United States Code, shall be applied with the following modifications:

“(A) By substituting—

“(i) “magistrate judge of the Tax Court” for “judicial official”, “judicial officer”, and “magistrate judge” each place such terms appear,

“(ii) “magistrate judge of the Tax Court’s” for “magistrate judge's” each place it appears,

“(iii) “chief judge of the Tax Court” for “Administrative Office of the United States Courts”, “Director of the Administrative Office of the United States Courts”, “Director”, and “chief judge of the district court” each place such terms appear,

“(iv) “Tax Court Judicial Officers’ Retirement Fund” for “Judicial Officers’ Retirement Fund” each place it appears,

“(v) “under section 7443A of the Internal Revenue Code of 1986” for “under section 631 of this title” in subsection (h)(2),

“(vi) “under section 7443C of the Internal Revenue Code of 1986” for “under section 155(b), 375, or 636(h) of this title” each place it appears in paragraphs (2) and (3) of subsection (m), and

“(vii) “from the date of appointment, for those individuals appointed pursuant to section 7443A of the Internal Revenue Code of 1986 prior to, and in active service on, the date of enactment of the Retirement Enhancement and Savings Act of 2019” for “on or after October 1, 1979” in subsection (h).

“(B) By disregarding subsection (m)(2) and subsection (o).

“(b) 1-Year forfeiture for failure To perform judicial duties—Subject to subparagraph (B) of section 377(m)(1) of title 28, United States Code, any magistrate judge of the Tax Court who retires under this section and who fails to perform judicial duties required of such individual by section 7443C shall forfeit all rights to an annuity under this section for a 1-year period which begins on the 1st day on which such individual fails to perform such duties.

“(c) Tax Court Judicial Officers’ Retirement Fund

“(1) Establishment—There is established in the Treasury of the United States a fund which shall be known as the “Tax Court Judicial Officers' Retirement Fund”. The Fund is appropriated for the payment of annuities, refunds, and other payments under this section.

“(2) Investment of Fund—The Secretary shall invest, in interest-bearing securities of the United States, such currently available portions of the Tax Court Judicial Officers’ Retirement Fund as are not immediately required for payments from the Fund. The income derived from these investments constitutes a part of the Fund.

“(3) Unfunded liability

“(A) In general—Not later than the close of each fiscal year, there shall be deposited in the Tax Court Judicial Officers’ Retirement Fund amounts required to reduce to zero the unfunded liability, if any, of such Fund.

“(B) Unfunded liability—For purposes of subparagraph (A), the term unfunded liability means the amount estimated by the Secretary to be equal to the excess (as of the close of the fiscal year involved) of—

“(i) the present value of all benefits payable from the Tax Court Judicial Officers’ Retirement Fund, over

“(ii) the sum of—

“(I) the present value of future deductions to be withheld under this section from the basic pay of magistrate judges of the Tax Court, plus

“(II) the balance in such Fund as of the close of such fiscal year.

“(d) Participation in Thrift Savings Plan

“(1) Election to contribute—A magistrate judge of the Tax Court may elect to contribute out of such individual’s basic pay to the Thrift Savings Fund established by section 8437 of title 5, United States Code.

“(2) Applicability of title 5 provisions—Except as otherwise provided in this subsection, the provisions of subchapters III and VII of chapter 84 of such title 5 shall apply with respect to a magistrate judge of the Tax Court who makes an election under paragraph (1).

“(3) Special rules

“(A) Amount contributed—The amount contributed by a magistrate judge of the Tax Court to the Thrift Savings Plan in any pay period shall not exceed the maximum percentage of such magistrate judge’s basic pay for such period as allowable under section 8440f of such title 5.

“(B) Contributions for benefit of magistrate judge of the Tax Court—No contributions under section 8432(c) of such title 5 shall be made for the benefit of a magistrate judge of the Tax Court who has filed an election to receive an annuity under this section.

“(C) Applicability of rules relating to annuity of a child—Section 8433(b) of such title 5 applies with respect to a magistrate judge of the Tax Court who makes an election under paragraph (1) and who—

“(i) retires entitled to an immediate annuity under this section (including a disability annuity under this section),

“(ii) retires before attaining age 65 but is entitled, upon attaining age 65, to an annuity under this section, or

“(iii) retires before becoming entitled to an immediate annuity, or an annuity upon attaining age 65, under this section.

“(D) Retirement as separation from service—With respect to a magistrate judge of the Tax Court to whom this subsection applies, retirement under this section is a separation from service for purposes of subchapters III and VII of chapter 84 of such title 5.

“(4) Definitions—For purposes of this subsection, the terms retirement and retire include removal from office under section 7443A(a)(2) on the sole ground of mental or physical disability.

“(5) Offset—In the case of a magistrate judge of the Tax Court who receives a distribution from the Thrift Savings Plan and who later receives an annuity under this section, the annuity shall be offset by an amount equal to the amount which represents the Government’s contribution to the individual’s Thrift Savings Account during years of service as a full-time judicial officer under the Federal Employees Retirement System, without regard to earnings attributable to such amount. Where such an offset would exceed 50 percent of the annuity to be received in the first year, the offset may be divided equally over the first 2 years in which the individual receives the annuity.

“(6) Exception—Notwithstanding clauses (i) and (ii) of paragraph (3)(C), if any magistrate judge of the Tax Court retires under circumstances making such magistrate judge of the Tax Court eligible to make an election under subsection (b) of section 8433 of such title 5, and the nonforfeitable account balance of such magistrate judge of the Tax Court is less than an amount which the Executive Director of the Office of Personnel Management prescribes by regulation, the Executive Director shall pay the nonforfeitable account balance to the participant in a single payment.

“(e) Coordination with title 5—A magistrate judge of the Tax Court who elects to receive an annuity under this section—

“(1) shall not be subject to deductions and contributions otherwise required by section 8334(a) of title 5 United States Code,

“(2) shall be excluded from the application of chapter 84 (other than subchapters III and VII) of such title 5, and

“(3) is entitled to a lump-sum credit under section 8342(a) or 8424 of such title 5, as the case may be.”

“7443C. Recall of magistrate judges of the Tax Court

“(a) Recalling of retired magistrate judges of the Tax Court—Any individual who has retired pursuant to section 7443B or the applicable provisions of title 5 or 28, United States Code, upon reaching the age and service requirements established under such titles 5 and 28, may be called upon by the chief judge to perform such judicial duties with the Tax Court as may be requested of such individual for a period or periods specified by the chief judge, except that in the case of any such individual—

“(1) the aggregate of such periods in any 1 calendar year shall not (without the consent of such individual) exceed 90 calendar days, and

“(2) such individual shall be relieved of performing such duties during any period in which illness or disability precludes the performance of such duties.

“(b) Compensation—For the year in which a period of recall occurs, the magistrate judge of the Tax Court shall receive, in addition to the annuity provided under the provisions of section 7443B, an amount equal to the difference between that annuity and the current salary of the office to which the magistrate judge of the Tax Court is recalled (and allowances for travel and other expenses of the magistrate judge of the Tax Court). The annuity for years after the year in which a period of recall occurs of the magistrate judge of the Tax Court who completes such a period of service, who is not recalled in a subsequent year, and who retired under section 7443B, shall be equal to the salary in effect at the end of the year in which the period of recall occurred for the office from which such magistrate judge of the Tax Court retired.

“(c) Rulemaking authority—The provisions of this section shall be implemented under such rules and regulations as may be promulgated by the Tax Court.”