---
kind: "section"
citation: "5 C.F.R. § 847.604"
title: "5"
number: "847.604"
heading: "Methodology for determining deficiency."
url: "https://uscodex.org/cfr/5/847.604"
---

# §847.604. Methodology for determining deficiency.

- (a) When an event listed in the left column of the table in Appendix A to this subpart occurs, OPM will compute the deficiency, as follows:
  - (1) As of the date of computation under [§ 847.603](/cfr/5/847.603.md), OPM will determine—
    - (i) The present value of the annuity including credit for the NAFI service under [§ 847.605](/cfr/5/847.605.md);
    - (ii) The present value of the annuity without credit for the NAFI service under [§ 847.606](/cfr/5/847.606.md) or [§ 847.607](/cfr/5/847.607.md), as applicable; and
    - (iii) The amount credited to the employee from a transfer to the Fund under [subpart E](/cfr/5/subpartE.md) of this part including earnings under [§ 847.507](/cfr/5/847.507.md).
  - (2) OPM will add the amount determined under paragraphs [(a)(1)(ii)](#a-1-ii) and [(iii)](#a-1-iii) of this section and subtract that sum from the amount determined under [paragraph (a)(1)(i)](#a-1-i) of this section.
- (b) If the amount determined under [paragraph (a)(2)](#a-2) of this section is greater than zero, the deficiency is equal to that amount.
- (c) If no event listed in the left column of the table in Appendix A to this subpart occurs—that is, the additional service credit does not cause an increase in an employee annuity or a survivor annuity actually paid—or, if the amount determined under [paragraph (a)(2)](#a-2) of this section is less than or equal to zero, the deficiency equals zero.

## Notes

### Authority

Authority: 5 U.S.C. 8332(b)(17) and 8411(b)(6) and sections 1131 and 1132 of Pub. L. 107-107, December 28, 2001, 115 Stat 1242; 5 U.S.C. 8347(a) and 8461(g) and section 1043(b) of Pub. L. 104-106, Div. A, Title X, Feb. 10, 1996, 110 Stat. 434. Subpart B also issued under 5 U.S.C. 8347(q) and 8461(n).

### Source

Source: 61 FR 41721, Aug. 9, 1996, unless otherwise noted.