---
kind: "section"
citation: "5 C.F.R. § 848.502"
title: "5"
number: "848.502"
heading: "Computation of composite annuity at final retirement."
url: "https://uscodex.org/cfr/5/848.502"
---

# §848.502. 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 [§ 848.501(a)](/cfr/5/848.501.md?p=a), increased by cost-of-living adjustments under [§ 848.503(c)](/cfr/5/848.503.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. 8415](/usc/5/8415.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 [§ 848.102](/cfr/5/848.102.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)](#b-1) of this section, the amount of unused sick leave credit equals the result of dividing the applicable percentage under [5 U.S.C. 8415(l)](/usc/5/8415.md?p=l) of the days of unused sick leave to the employee's credit at separation for full retirement, by the working percentage.
- (c) The composite retirement annuity computed under [paragraph (a)](#a) of this section is adjusted by applying any reduction for any survivor annuity benefit.

## Notes

### Authority

Authority: 5 U.S.C. 8461; 5 U.S.C. 8412a.

### Source

Source: 79 FR 46632, Aug. 8, 2014, unless otherwise noted.