--- kind: "section" citation: "5 C.F.R. § 831.1742" title: "5" number: "831.1742" heading: "Computation of composite annuity at final retirement." url: "https://uscodex.org/cfr/5/831.1742" --- # §831.1742. Computation of composite annuity at final retirement. - (a) Subject to the adjustment described in [paragraph (c)](#c) of this section, a phased retiree's composite retirement annuity at final retirement equals the sum obtained by adding— - (1) The amount computed under [§ 831.1741(a)](/cfr/5/831.1741.md?p=a) without adjustment under § [831.1741(b)](/cfr/5/831.1741.md?p=b) and [(c)](/cfr/5/831.1741.md?p=c), increased by cost-of-living adjustments under [§ 831.1743(c)](/cfr/5/831.1743.md?p=c); and - (2) **The “fully retired phased component” computed under paragraph (b) of this section.** - (b) - (1) Subject to the requirements described in paragraphs [(b)(2)](#b-2) and [(b)(3)](#b-3) of this section, a “fully retired phased component” equals the product obtained by multiplying— - (i) The working percentage; by - (ii) The amount of an annuity computed under [5 U.S.C. 8339](/usc/5/8339.md) that would have been payable at the time of full retirement if the individual had not elected phased retirement status and as if the individual was employed on a full-time basis in the position occupied during the phased retirement period and before any reduction for survivor annuity. - (2) In applying [paragraph (b)(1)(ii)](#b-1-ii) of this section, the individual must be deemed to have a full-time schedule during the period of phased retirement. The deemed full-time schedule will consist of five 8-hour workdays each workweek, resulting in a 40-hour workweek. In determining the individual's deemed rate of basic pay during phased retirement, only basic pay for hours within the deemed full-time schedule will be considered, consistent with the definition of “full-time” in [§ 831.1702](/cfr/5/831.1702.md). Any premium pay creditable as basic pay for retirement purposes for overtime work or hours outside the full-time schedule that an employee was receiving before phased retirement, such as standby duty pay under [5 U.S.C. 5545(c)(1)](/usc/5/5545.md?p=c-1) or customs officer overtime pay under [19 U.S.C. 267(a)](/usc/19/267.md?p=a), may not be considered in determining a phased retiree's deemed rate of basic pay during phased retirement. - (3) **In computing the annuity amount under paragraph (b)(1) of this section—** - (i) The amount of unused sick leave equals the result of dividing the days of unused sick leave to the individual's credit at separation for full retirement by the working percentage; and - (ii) The reduction for any unpaid deposit for non-deduction service performed before October 1, 1982, is based on the amount of unpaid deposit, with interest computed to the commencing date of the composite annuity. - (c) The composite retirement annuity computed under [paragraph (a)](#a) of this section is adjusted by applying any reduction for any survivor annuity benefit. - (d) The monthly installment derived from a composite retirement annuity computed under [paragraph (a)](#a) of this section and adjusted under [paragraph (c)](#c) is adjusted by any— - (1) Actuarial reduction applied to the phased retirement annuity under [§ 831.1741(b)](/cfr/5/831.1741.md?p=b), increased by cost-of-living adjustments under [§ 831.1743(d)](/cfr/5/831.1743.md?p=d); and - (2) Offset under [§ 831.1005](/cfr/5/831.1005.md) (i.e., the offset based on all service, including service during the phased retirement period, performed by the individual that was subject to mandatory Social Security coverage). ## Notes ### Source Source: 79 FR 46619, Aug. 8, 2014, unless otherwise noted. ### Authority Authority: 5 U.S.C. 8347; Sec. 831.102 also issued under 5 U.S.C. 8334; Sec. 831.106 also issued under 5 U.S.C. 552a; Sec. 831.108 also issued under 5 U.S.C. 8336(d)(2); Sec. 831.114 also issued under 5 U.S.C. 8336(d)(2) and Sec. 1313(b)(5) of Pub. L. 107-296, 116 Stat. 2135; Sec. 831.201(b)(1) also issued under 5 U.S.C. 8347(g); Sec. 831.201(b)(6) also issued under 5 U.S.C. 7701(b)(2); Sec. 831.201(g) also issued under Secs. 11202(f), 11232(e), and 11246(b) of Pub. L. 105-33, 111 Stat. 251; Sec. 831.201(g) also issued under Secs. 7(b) and (e) of Pub. L. 105-274, 112 Stat. 2419; Sec. 831.201(i) also issued under Secs. 3 and 7(c) of Pub. L. 105-274, 112 Stat. 2419; Sec. 831.202 also issued under Sec. 111 of Pub. L. 99-500, 100 Stat. 1783, and Sec. 111 of Pub. L. 99-591, 100 Stat. 3341-348, and also Sec. 1 of Pub. L. 110-279, 122 Stat. 2602, as amended by Sec. 1(a) of Pub. L. 116-21, 133 Stat. 903; Sec. 831.204 also issued under Sec. 102(e) of Pub. L. 104-8, 109 Stat. 102, as amended by Sec. 153 of Pub. L. 104-134, 110 Stat. 1321; Sec. 831.205 also issued under Sec. 2207 of Pub. L. 106-265, 114 Stat. 784; Sec. 831.206 also issued under Sec. 1622(b) of Pub. L. 104-106, 110 Stat. 515; Sec. 831.301 also issued under Sec. 2203 of Pub. L. 106-265, 114 Stat. 780; Sec. 831.303 also issued under 5 U.S.C. 8334(d)(2) and Sec. 2203 of Pub. L. 106-235, 114 Stat. 780; Sec. 831.502 also issued under 5 U.S.C. 8337, and under Sec. 1(3), E.O. 11228, 3 CFR 1965-1965 Comp. p. 317; Sec. 831.663 also issued under 5 U.S.C. 8339(j) and (k)(2); Secs. 831.663 and 831.664 also issued under Sec. 11004(c)(2) of Pub. L. 103-66, 107 Stat. 412; Sec. 831.682 also issued under Sec. 201(d) of Pub. L. 99-251, 100 Stat. 23; Sec. 831.912 also issued under Sec. 636 of Appendix C to Pub. L. 106-554, 114 Stat. 2763A-164; Subpart P also issued under Sec. 535(d) of Title V of Division E of Pub. L. 110-161, 121 Stat. 2042; Subpart Q also issued under 5 U.S.C. 8336a; Subpart V also issued under 5 U.S.C. 8343a and Sec. 6001 of Pub. L. 100-203, 101 Stat. 1330-275; Sec. 831.2203 also issued under Sec. 7001(a)(4) of Pub. L. 101-508, 104 Stat. 1388-328; Pub. L. 115-352, 132 Stat. 5067 (5 U.S.C. 101). ### Source Source: 33 FR 12498, Sept. 4, 1968, unless otherwise noted.