---
kind: "range"
citation: "5 U.S.C. §§ 8401–8479"
title: "5"
from: "8401"
to: "8479"
count: 76
release: "119-102"
url: "https://uscodex.org/usc/5/8401..8479"
---

# §8401. Definitions


For the purpose of this chapter—

- (1) the term “account” means an account established and maintained under [section 8439(a) of this title](/usc/5/8439.md?p=a);
- (2) the term “annuitant” means a former [employee](#11) or [Member](#20) who, on the basis of that individual’s [service](#26), 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](#11)’s or [Member](#20)’s rates of [basic pay](#4) in effect over any 3 consecutive years of [service](#26) or, in the case of an annuity under this chapter based on [service](#26) of less than 3 years, over the total [service](#26), 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)](/usc/5/8331.md?p=3);
- (5) the term “Board” means the Federal Retirement Thrift Investment Board established by [section 8472(a) of this title](/usc/5/8472.md?p=a);
- (6) the term “Civil Service Retirement and Disability Fund” or “Fund” means the Civil Service Retirement and Disability Fund under [section 8348](/usc/5/8348.md);
- (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](#16);
- (8) the term “Director” means the Director of the [Office](#24) of Personnel Management;
- (9) the term “dynamic assumptions” means economic assumptions that are used in determining actuarial costs and liabilities of a retirement [system](#29) and in anticipating the effects of long-term future—
  - (A) investment yields;
  - (B) increases in rates of [basic pay](#4); and
  - (C) rates of price inflation;
- (10) the term “earnings”, when used with respect to the [Thrift Savings Fund](/usc/5/8471.md?p=5), means the amount of the gain realized or yield received from the investment of sums in such [Fund](#6);
- (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](/usc/5/8331.md?p=1);
  - (B) a [Congressional employee](/usc/5/5531.md?p=7) as defined in [section 2107 of this title](/usc/5/2107.md), including a temporary [Congressional employee](/usc/5/5531.md?p=7) and an [employee](#11) of the Congressional Budget [Office](#24); and
  - (C) an [employee](#11) described in [section 2105(c)](/usc/5/2105.md?p=c) who has made an election under [section 8461(n)(1)](/usc/5/8461.md?p=n-1) to remain covered under this chapter;

  whose civilian [service](#26) after December 31, 1983, is employment for the purposes of title II of the Social Security Act and [chapter 21](/usc/5/chptIII-sptA-ch21.md) 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](/usc/5/8331.md);
    - (II) [clause (ii)](#11-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](/usc/5/8402.md?p=c);
  - (iii) a [member](#20) of the Foreign [Service](#26) described in section 103(6) of the Foreign Service Act of 1980; or
  - (iv) an [employee](#11) who has made an election under [section 8461(n)(2)](/usc/5/8461.md?p=n-2) to remain covered by a retirement [system](#29) established for [employees](#11) described in [section 2105(c)](/usc/5/2105.md?p=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](#26) creditable under [section 8411](/usc/5/8411.md) as an [employee](#11) or [Member](#20); and
  - (B) if the [former spouse](#12) was married to such individual for at least 9 months;
- (13) the term “Executive Director” means the Executive Director appointed under [section 8474(a)](/usc/5/8474.md?p=a);
- (14) the term “firefighter” means—
  - (A) an [employee](#11), the duties of whose [position](/usc/5/5531.md?p=2)—
    - (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](#8) considering the recommendations of the employing [agency](/usc/5/500.md?p=a-1); and
  - (B) an [employee](#11) who is transferred directly to a supervisory or administrative [position](/usc/5/5531.md?p=2) after performing duties described in [subparagraph (A)](#14-A) for at least 3 years;
- (15) the term “Government” means the Federal Government, Gallaudet College, and, in the case of an [employee](#11) described in [paragraph (11)(C)](#11-C), a [nonappropriated fund instrumentality](/usc/5/5595.md?p=h-6-C) of the Department of Defense or the Coast Guard described in [section 2105(c)](/usc/5/2105.md?p=c);
- (16) the term “Indian court” has the meaning given such term by [section 8331(24)](/usc/5/8331.md?p=24);
- (17) the term “law enforcement officer” means—
  - (A) an [employee](#11), the duties of whose [position](/usc/5/5531.md?p=2)—
    - (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](#8) considering the recommendations of the employing [agency](/usc/5/500.md?p=a-1);
  - (B) an [employee](#11) of the Department of the Interior or the Department of the Treasury (excluding any [employee](#11) under [subparagraph (A)](#17-A)) who occupies a [position](/usc/5/5531.md?p=2) that, but for the enactment of the Federal [Employees](#11)’ Retirement System Act of 1986, would be subject to the District of Columbia Police and [Firefighters](#14)’ Retirement [System](#29), as determined by the Secretary of the Interior or the Secretary of the Treasury, as appropriate;
  - (C) an [employee](#11) who is transferred directly to a supervisory or administrative [position](/usc/5/5531.md?p=2) after performing duties described in subparagraph [(A)](#17-A) and [(B)](#17-B) for at least 3 years; and
  - (D) an [employee](#11)—
    - (i) of the Bureau of Prisons or Federal Prison Industries, Incorporated;
    - (ii) of the Public Health [Service](#26) assigned to the field [service](#26) of the Bureau of Prisons or of the Federal Prison Industries, Incorporated; or
    - (iii) in the field [service](#26) at Army or Navy disciplinary barracks or at any other confinement and rehabilitation facility operated by any of the [armed forces](/usc/5/2101.md?p=2);

    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](/usc/10/chstA-ptII-ch47.md) 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](/usc/5/500.md?p=a-1);

- (18) the term “loss”, as used with respect to the [Thrift Savings Fund](/usc/5/8471.md?p=5), includes the amount of any loss resulting from the investment of sums in such [Fund](#6), or from the breach of any responsibility, duty, or obligation under section 8477.[^1]
- (19) the term “lump-sum credit” means the unrefunded amount consisting of—
  - (A) retirement deductions made from the [basic pay](#4) of an [employee](#11) or [Member](#20) under [section 8422(a) of this title](/usc/5/8422.md?p=a) (or under section 204 of the Federal [Employees](#11)’ Retirement Contribution Temporary Adjustment Act of 1983);
  - (B) amounts deposited by an [employee](#11) or [Member](#20) under [section 8422(e)](/usc/5/8422.md?p=e);
  - (C) amounts deposited by an [employee](#11), [Member](#20), or [survivor](#28) under section [8411(f)](/usc/5/8411.md?p=f) or [8422(i)](/usc/5/8422.md?p=i); and
  - (D) interest on the deductions and deposits which, for any calendar year, shall be equal to the overall average yield to the [Fund](#6) during the preceding fiscal year from all obligations purchased by the Secretary of the Treasury during such fiscal year under section [8348(c)](/usc/5/8348.md?p=c), [(d)](/usc/5/8348.md?p=d), and [(e)](/usc/5/8348.md?p=e), as determined by the Secretary (compounded annually);

  but does not include interest—

  - (i) if the [service](#26) covered thereby aggregates 1 year or less; or
  - (ii) for a fractional part of a month in the total [service](#26);
- (20) the term “Member” has the same meaning as provided in [section 2106](/usc/5/2106.md), 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](#11)’ Retirement [System](#29), and who (in the case of an individual who is a Member of the House of Representatives, including a Delegate or Resident Commissioner to the Congress) serves as a Member prior to the date of the enactment of the Legislative Branch Appropriations Act, 2004;
- (21) the term “net earnings” means the excess of [earnings](#10) over [losses](#18);
- (22) the term “net losses” means the excess of [losses](#18) over [earnings](#10);
- (23) the term “normal-cost percentage” means the entry-age normal cost of the provisions of the [System](#29) which relate to the [Fund](#6), computed by the [Office](#24) in accordance with generally accepted actuarial practice and standards (using [dynamic assumptions](#9)) and expressed as a level percentage of aggregate [basic pay](#4);
- (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)](/usc/5/8331.md?p=15);
- (26) the term “service” means service which is creditable under [section 8411](/usc/5/8411.md);
- (27) the term “supplemental liability” means the estimated excess of—
  - (A) the actuarial present value of all future benefits payable from the [Fund](#6) under this chapter based on the [service](#26) of current or former [employees](#11) or [Members](#20), over
  - (B) the sum of—
    - (i) the actuarial present value of deductions to be withheld from the future [basic pay](#4) of [employees](#11) and [Members](#20) currently subject to this chapter pursuant to [section 8422](/usc/5/8422.md);
    - (ii) the actuarial present value of the future contributions to be made pursuant to [section 8423(a)](/usc/5/8423.md?p=a) with respect to [employees](#11) and [Members](#20) currently subject to this chapter;
    - (iii) the [Fund](#6) balance as of the date the [supplemental liability](#27) is determined, to the extent that such balance is attributable—
      - (I) to the [System](#29), or
      - (II) to contributions made under the Federal [Employees](#11)’ Retirement Contribution Temporary Adjustment Act of 1983 by or on behalf of an individual who became subject to the [System](#29); and
    - (iv) any other appropriate amount, as determined by the [Office](#24) 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](#11)’ Retirement System described in [section 8402(a)](/usc/5/8402.md?p=a);
- (30) the term “military technician (dual status)” means an [employee](#11) described in [section 10216 of title 10](/usc/10/10216.md);
- (31) the term “military service” means honorable active [service](#26)—
  - (A) in the [armed forces](/usc/5/2101.md?p=2);
  - (B) in the commissioned corps of the Public Health [Service](#26) 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;

  and includes [service](#26) as a cadet at the United States Military Academy, the United States Air Force Academy, or the United States Coast Guard Academy, or as a midshipman at the United States Naval Academy, but does not include [service](#26) in the National Guard except when ordered to active duty in the [service](#26) of the United States or full-time National Guard duty (as such term is defined in [section 101(d) of title 10](/usc/10/101.md?p=d)) if such [service](#26) interrupts creditable civilian [service](#26) under this subchapter and is followed by reemployment in accordance with [chapter 43](/usc/38/chptIII-ch43.md) of title 38 that occurs on or after August 1, 1990;

- (32) the term “nonforfeitable account balance” means any amounts in an [account](#1), established and maintained under subchapter III, which are nonforfeitable (as determined under [section 8432(g)](/usc/5/8432.md?p=g));
- (33) “Nuclear materials courier” has the meaning given that term in [section 8331(27)](/usc/5/8331.md?p=27);
- (34) the term “Government physician” has the meaning given such term under [section 5948](/usc/5/5948.md);
- (35) the term “air traffic controller” or “controller” means—
  - (A) a [controller](#35) within the meaning of [section 2109(1)](/usc/5/2109.md?p=1); and
  - (B) a civilian [employee](#11) of the Department of Transportation or the Department of Defense who is the immediate supervisor of a person described in [section 2109(1)(B)](/usc/5/2109.md?p=1-B);
- (36) the term “customs and border protection officer” means an [employee](#11) in the Department of Homeland Security (A) who holds a [position](/usc/5/5531.md?p=2) within the GS–1895 job series (determined applying the criteria in effect as of September 1, 2007) or any successor [position](/usc/5/5531.md?p=2), and (B) whose duties include activities relating to the arrival and departure of persons, conveyances, and merchandise at ports of entry, including any such [employee](#11) who is transferred directly to a supervisory or administrative [position](/usc/5/5531.md?p=2) in the Department of Homeland Security after performing such duties (as described in subparagraph (B)) in 1 or more [positions](/usc/5/5531.md?p=2) (as described in subparagraph (A)) for at least 3 years;
- (37) the term “revised annuity employee” means any individual who—
  - (A) on December 31, 2012—
    - (i) is not an [employee](#11) or [Member](#20) covered under this chapter;
    - (ii) is not performing civilian [service](#26) which is creditable [service](#26) under [section 8411](/usc/5/8411.md); and
    - (iii) has less than 5 years of creditable civilian [service](#26) under [section 8411](/usc/5/8411.md); and
  - (B) after December 31, 2012, and before January 1, 2014, becomes employed as an [employee](#11) or becomes a [Member](#20) covered under this chapter performing [service](#26) which is creditable [service](#26) under [section 8411](/usc/5/8411.md);
- (38) the term “further revised annuity employee” means any individual who—
  - (A) on December 31, 2013—
    - (i) is not an [employee](#11) or [Member](#20) covered under this chapter;
    - (ii) is not performing civilian [service](#26) which is creditable [service](#26) under [section 8411](/usc/5/8411.md); and
    - (iii) has less than 5 years of creditable civilian [service](#26) under [section 8411](/usc/5/8411.md); and
  - (B) after December 31, 2013, becomes employed as an [employee](#11) or becomes a [Member](#20) covered under this chapter performing [service](#26) which is creditable [service](#26) under [section 8411](/usc/5/8411.md); and
- (39) “representative payee” means a person (including an organization) designated under [section 8466(c)(1)](/usc/5/8466.md?p=c-1) to receive payments on behalf of a minor or an individual mentally incompetent or under other legal disability.

# §8402. Federal Employees’ Retirement System; exclusions

- (a) The provisions of this chapter comprise the Federal [Employees](/usc/5/8401.md?p=11)’ Retirement [System](/usc/5/8401.md?p=29).
- (b) The provisions of this chapter shall not apply with respect to—
  - (1) any individual who has performed [service](/usc/5/8401.md?p=26) 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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who has separated from the [service](/usc/5/8401.md?p=26) after—
      - (i) having been subject to—
        - (I) subchapter III of [chapter 83](/usc/5/chptIII-sptG-ch83.md) of this title;
        - (II) subchapter I of [chapter 8](/usc/5/chptI-ch8.md) of title I of the Foreign Service Act of 1980; or
        - (III) the benefit structure for [employees](/usc/5/8401.md?p=11) of the [Board](/usc/5/8401.md?p=5) of Governors of the Federal Reserve [System](/usc/5/8401.md?p=29) appointed before January 1, 1984, that is a component of the Retirement Plan for [Employees](/usc/5/8401.md?p=11) of the Federal Reserve [System](/usc/5/8401.md?p=29), established under section 10 of the Federal Reserve Act; and
      - (ii) having completed—
        - (I) at least 5 years of civilian [service](/usc/5/8401.md?p=26) creditable under subchapter III of [chapter 83](/usc/5/chptIII-sptG-ch83.md) of this title;
        - (II) at least 5 years of civilian [service](/usc/5/8401.md?p=26) creditable under subchapter I of [chapter 8](/usc/5/chptI-ch8.md) of title I of the Foreign Service Act of 1980; or
        - (III) at least 5 years of civilian [service](/usc/5/8401.md?p=26) (other than any [service](/usc/5/8401.md?p=26) performed in the employ of a Federal Reserve Bank) creditable under the benefit structure for [employees](/usc/5/8401.md?p=11) of the [Board](/usc/5/8401.md?p=5) of Governors of the Federal Reserve [System](/usc/5/8401.md?p=29) appointed before January 1, 1984, that is a component of the Retirement Plan for [Employees](/usc/5/8401.md?p=11) of the Federal Reserve [System](/usc/5/8401.md?p=29), 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](/usc/5/8401.md?p=26) involved; or

    - (B) any [employee](/usc/5/8401.md?p=11) having at least 5 years of civilian [service](/usc/5/8401.md?p=26) performed before January 1, 1987, creditable under subchapter III of [chapter 83](/usc/5/chptIII-sptG-ch83.md) 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](/usc/5/8401.md?p=26) 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)](#d) of this section or title III of the Federal [Employees](/usc/5/8401.md?p=11)’ Retirement System Act of 1986 pursuant to an election under such title to become subject to this chapter.

- (c)
  - (1) The [Office](/usc/5/8401.md?p=24) may exclude from the operation of this chapter an [employee](/usc/5/8401.md?p=11) or group of [employees](/usc/5/8401.md?p=11) in or under an [Executive agency](/usc/5/3330d.md?p=a-2-A), the United States Postal [Service](/usc/5/8401.md?p=26), or the Postal Regulatory Commission, whose employment is temporary or intermittent, except an [employee](/usc/5/8401.md?p=11) whose employment is part-time career employment (as defined in [section 3401(2)](/usc/5/3401.md?p=2)).
  - (2) The Architect of the Capitol may exclude from the operation of this chapter an [employee](/usc/5/8401.md?p=11) under the [Office](/usc/5/8401.md?p=24) 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](/usc/5/8401.md?p=11) under the Library of Congress whose employment is temporary or of uncertain duration.
  - (4) The [Director](/usc/5/8401.md?p=8) or Acting [Director](/usc/5/8401.md?p=8) of the Botanic Garden may exclude from the operation of this chapter an [employee](/usc/5/8401.md?p=11) 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](/usc/5/5531.md?p=7)—
    - (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](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) of Technology Assessment may exclude from the operation of this chapter an [employee](/usc/5/8401.md?p=11) under the [Office](/usc/5/8401.md?p=24) of Technology Assessment whose employment is temporary or intermittent.
  - (7) The [Director](/usc/5/8401.md?p=8) of the Congressional Budget [Office](/usc/5/8401.md?p=24) may exclude from the operation of this chapter an [employee](/usc/5/8401.md?p=11) under the Congressional Budget [Office](/usc/5/8401.md?p=24) whose employment is temporary or intermittent.
  - (8) The [Director](/usc/5/8401.md?p=8) of the Administrative [Office](/usc/5/8401.md?p=24) of the United States [Courts](/usc/5/8401.md?p=7) may exclude from the operation of this chapter an [employee](/usc/5/8401.md?p=11) of the Administrative [Office](/usc/5/8401.md?p=24) of the United States [Courts](/usc/5/8401.md?p=7), the Federal Judicial Center, or a [court](/usc/5/8401.md?p=7) named by [section 610 of title 28](/usc/28/610.md), 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](/usc/5/8401.md?p=11) of the District of Columbia [Courts](/usc/5/8401.md?p=7) whose employment is temporary or of uncertain duration.
- (d) [Paragraph (2)](#b-2) of subsection (b) shall not apply to an individual who—
  - (1) becomes subject to—
    - (A) subchapter II of [chapter 8](/usc/5/chptI-ch8.md) of title I of the Foreign Service Act of 1980 (relating to the Foreign [Service](/usc/5/8401.md?p=26) Pension [System](/usc/5/8401.md?p=29)) pursuant to an election; or
    - (B) the benefit structure in which [employees](/usc/5/8401.md?p=11) of the [Board](/usc/5/8401.md?p=5) of Governors of the Federal Reserve [System](/usc/5/8401.md?p=29) appointed on or after January 1, 1984, participate, which benefit structure is a component of the Retirement Plan for [Employees](/usc/5/8401.md?p=11) of the Federal Reserve [System](/usc/5/8401.md?p=29), 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](/usc/5/8401.md?p=5) of Governors of the Federal Reserve [System](/usc/5/8401.md?p=29) for purposes of this chapter); and
  - (2) subsequently enters a [position](/usc/5/5531.md?p=2) in which, but for [paragraph (2)](#b-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](/usc/28/377.md) or [section 2(c)](/usc/28/2.md) of the Retirement and [Survivors](/usc/5/8401.md?p=28)’ 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](/usc/5/8401.md?p=8) of the Administrative [Office](/usc/5/8401.md?p=24) of the United States [Courts](/usc/5/8401.md?p=7) 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](/usc/5/8401.md?p=19) under [section 8424 of this title](/usc/5/8424.md).
- (f) A judge who is covered by [section 7296 of title 38](/usc/38/7296.md) shall be excluded from the operation of this chapter if the judge notifies the [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) 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](/usc/5/8401.md?p=19) under [section 8424 of this title](/usc/5/8424.md).
- (g) A judge of the United States [Court](/usc/5/8401.md?p=7) of Federal Claims who is covered by [section 178 of title 28](/usc/28/178.md) shall be excluded from the operation of this chapter, other than subchapters III and VII of such chapter, if the judge notifies the [Director](/usc/5/8401.md?p=8) of the Administrative [Office](/usc/5/8401.md?p=24) of the United States [Courts](/usc/5/8401.md?p=7) of an election of a retirement annuity under those provisions. Upon such election, the judge shall be entitled to a [lump-sum credit](/usc/5/8401.md?p=19) under [section 8424 of this title](/usc/5/8424.md).

# §8403. Relationship to the Social Security Act


Except as otherwise provided in this chapter, the benefits payable under the [System](/usc/5/8401.md?p=29) are in addition to the benefits payable under the Social Security Act.


# §8410. Eligibility for annuity


Notwithstanding any other provision of this chapter, an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) must complete at least 5 years of civilian [service](/usc/5/8401.md?p=26) creditable under [section 8411](/usc/5/8411.md) in order to be eligible for an annuity under this subchapter.


# §8411. Creditable service

- (a)
  - (1) The total [service](/usc/5/8401.md?p=26) of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=26) in excess of 3 calendar days.
- (b) For the purpose of this chapter, creditable [service](/usc/5/8401.md?p=26) of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) includes—
  - (1) employment as an [employee](/usc/5/8401.md?p=11), and any [service](/usc/5/8401.md?p=26) as a [Member](/usc/5/8401.md?p=20) (including the period from the date of the beginning of the term for which elected or appointed to the date of taking [office](/usc/5/8401.md?p=24) as a [Member](/usc/5/8401.md?p=20)), after December 31, 1986;
  - (2) except as provided in [subsection (f)](#f), [service](/usc/5/8401.md?p=26) with respect to which deductions and withholdings under section 204(a)(1) of the Federal [Employees](/usc/5/8401.md?p=11)’ Retirement Contribution Temporary Adjustment Act of 1983 have been made;
  - (3) except as provided in subsection [(f)](#f) or [(h)](#h), any civilian [service](/usc/5/8401.md?p=26) (performed before January 1, 1989, other than any [service](/usc/5/8401.md?p=26) under paragraph [(1)](#b-1) or [(2)](#b-2)) which, but for the amendments made by subsections (a)(4) and (b) of section 202 of the Federal [Employees](/usc/5/8401.md?p=11)’ Retirement System Act of 1986, would be creditable under subchapter III of [chapter 83](/usc/5/chptIII-sptG-ch83.md) 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](/usc/5/8401.md?p=26) 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](/usc/5/8401.md?p=26) (other than any [service](/usc/5/8401.md?p=26) under any other paragraph of this subsection and other than any [military service](/usc/5/8401.md?p=31)) that was creditable under the Foreign [Service](/usc/5/8401.md?p=26) Pension [System](/usc/5/8401.md?p=29) described in subchapter II of [chapter 8](/usc/5/chptI-ch8.md)[^1] of the Foreign Service Act of 1980, if the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) waives credit for such [service](/usc/5/8401.md?p=26) under the Foreign [Service](/usc/5/8401.md?p=26) Pension [System](/usc/5/8401.md?p=29) and makes a payment to the [Fund](/usc/5/8401.md?p=6) equal to the amount that would have been deducted from pay under [section 8422(a)](/usc/5/8422.md?p=a) had the [employee](/usc/5/8401.md?p=11) been subject to this chapter during such period of [service](/usc/5/8401.md?p=26) (together with interest on such amount computed under paragraphs [(2)](/usc/5/8334.md?p=e-2) and [(3)](/usc/5/8334.md?p=e-3) of section 8334(e));
  - (5) a period of [service](/usc/5/8401.md?p=26) (other than any [service](/usc/5/8401.md?p=26) under any other paragraph of this subsection, any [military service](/usc/5/8401.md?p=31), and any [service](/usc/5/8401.md?p=26) performed in the employ of a Federal Reserve Bank) that was creditable under the [Bank Plan](#i) (as defined in [subsection (i)](#i)), if the [employee](/usc/5/8401.md?p=11) waives credit for such [service](/usc/5/8401.md?p=26) under the [Bank Plan](#i) and makes a payment to the [Fund](/usc/5/8401.md?p=6) equal to the amount that would have been deducted from pay under [section 8422(a)](/usc/5/8422.md?p=a) had the [employee](/usc/5/8401.md?p=11) been subject to this chapter during such period of [service](/usc/5/8401.md?p=26) (together with interest on such amount computed under paragraphs [(2)](/usc/5/8334.md?p=e-2) and [(3)](/usc/5/8334.md?p=e-3) of section 8334(e)); and
  - (6) [service](/usc/5/8401.md?p=26) performed by any individual as an [employee](/usc/5/8401.md?p=11) paid from nonappropriated [funds](/usc/5/8401.md?p=6) of an instrumentality of the Department of Defense or the Coast Guard described in [section 2105(c)](/usc/5/2105.md?p=c) that is not otherwise creditable, if the individual elects (in accordance with regulations prescribed by the [Office](/usc/5/8401.md?p=24)) to have such [service](/usc/5/8401.md?p=26) credited under this paragraph.

  [Paragraph (5)](#b-5) shall not apply in the case of any [employee](/usc/5/8401.md?p=11) as to whom [subsection (g)](#g) (or, to the extent subchapter III of [chapter 83](/usc/5/chptIII-sptG-ch83.md) is involved, [section 8332(n)](/usc/5/8332.md?p=n)) otherwise applies.

- (c)
  - (1) Except as provided in paragraphs [(2)](#c-2), [(3)](#c-3), and [(5)](#c-5), an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) shall be allowed credit for—
    - (A) each period of [military service](/usc/5/8401.md?p=31) performed before January 1, 1957; and
    - (B) each period of [military service](/usc/5/8401.md?p=31) 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)](/usc/5/8422.md?p=e).
  - (2) If an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) is awarded retired pay based on any period of [military service](/usc/5/8401.md?p=31), the [service](/usc/5/8401.md?p=26) of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may not include credit for such period of [military service](/usc/5/8401.md?p=31) unless the retired pay is awarded—
    - (A) based on a [service](/usc/5/8401.md?p=26)-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](/usc/38/1101.md); or
    - (B) under [chapter 1223](/usc/10/chstE-ptII-ch1223.md) 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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who has made a deposit under [section 8334(j)](/usc/5/8334.md?p=j) (or a similar prior provision of law) with respect to a period of [military service](/usc/5/8401.md?p=31), and who has not taken a refund of such deposit—
    - (A) shall be allowed credit for such [service](/usc/5/8401.md?p=26) without regard to the deposit requirement under [paragraph (1)(B)](#c-1-B); and
    - (B) shall be entitled, upon filing appropriate application therefor with the [Office](/usc/5/8401.md?p=24), to a refund equal to the difference between—
      - (i) the amount deposited with respect to such period under such [section 8334(j)](/usc/5/8334.md?p=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)](#c-1-B).
  - (4)
    - (A) Notwithstanding [paragraph (2)](#c-2), for purposes of computing a [survivor](/usc/5/8401.md?p=28) annuity for a [survivor](/usc/5/8401.md?p=28) of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)—
      - (i) who was awarded retired pay based on any period of [military service](/usc/5/8401.md?p=31), and
      - (ii) whose death occurs before separation from the [service](/usc/5/8401.md?p=26),

      creditable [service](/usc/5/8401.md?p=26) of the deceased [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) shall include each period of [military service](/usc/5/8401.md?p=31) includable under subparagraph [(A)](#c-1-A) or [(B)](#c-1-B) of paragraph (1) or under [paragraph (3)](#c-3). In carrying out this subparagraph, any amount deposited under [section 8422(e)(5)](/usc/5/8422.md?p=e-5) shall be taken into [account](/usc/5/8401.md?p=1).

    - (B) A [survivor](/usc/5/8401.md?p=28) annuity computed based on an amount which, under [authority](/usc/5/7103.md?p=a-6) of [subparagraph (A)](#c-4-A), takes into consideration any period of [military service](/usc/5/8401.md?p=31) shall be reduced by the amount of any [survivor](/usc/5/8401.md?p=28)’s benefits—
      - (i) payable to a [survivor](/usc/5/8401.md?p=28) (other than a child) under a retirement [system](/usc/5/8401.md?p=29) for [members](/usc/5/8401.md?p=20) of the [uniformed services](/usc/5/2101.md?p=3);
      - (ii) if, or to the extent that, such benefits are based on such period of [military service](/usc/5/8401.md?p=31).
    - (C) The [Office](/usc/5/8401.md?p=24) of Personnel Management shall prescribe regulations to carry out this paragraph, including regulations under which—
      - (i) a [survivor](/usc/5/8401.md?p=28) 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](/usc/5/8401.md?p=12).
  - (5) If, after January 1, 1997, an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) waives retired pay that is subject to a [court](/usc/5/8401.md?p=7) order for which there has been effective [service](/usc/5/8401.md?p=26) on the Secretary concerned for purposes of [section 1408 of title 10](/usc/10/1408.md), the [military service](/usc/5/8401.md?p=31) on which the retired pay is based may be credited as [service](/usc/5/8401.md?p=26) for purposes of this chapter only if the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) authorizes the [Director](/usc/5/8401.md?p=8) to deduct and withhold from the annuity payable to the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under this subchapter an amount equal to the amount that, if the annuity payment was instead a payment of the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s retired pay, would have been deducted and withheld and paid to the [former spouse](/usc/5/8401.md?p=12) covered by the [court](/usc/5/8401.md?p=7) order under such [section 1408](/usc/10/1408.md). The amount deducted and withheld under this paragraph shall be paid to that [former spouse](/usc/5/8401.md?p=12). The period of civil [service](/usc/5/8401.md?p=26) employment by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=12). The [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) 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](/usc/5/8401.md?p=11) while performing [military service](/usc/5/8401.md?p=31), or while receiving benefits under subchapter I of [chapter 81](/usc/5/chptIII-sptG-ch81.md). An [employee](/usc/5/8401.md?p=11) or former [employee](/usc/5/8401.md?p=11) 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](/usc/5/chptIII-sptG-ch81.md). 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](/usc/5/8401.md?p=11) to serve as a full-time officer or [employee](/usc/5/8401.md?p=11) of an organization composed primarily of [employees](/usc/5/8401.md?p=11) (as defined by section [8331(1)](/usc/5/8331.md?p=1) or [8401(11)](/usc/5/8401.md?p=11)), subject to the [employee](/usc/5/8401.md?p=11) arranging to pay, through the [employee](/usc/5/8401.md?p=11)’s employing [agency](/usc/5/500.md?p=a-1), within 60 days after commencement of such leave without pay, amounts equal to the retirement deductions and [agency](/usc/5/500.md?p=a-1) contributions which would be applicable under sections [8422(a)](/usc/5/8422.md?p=a) and [8423(a)](/usc/5/8423.md?p=a), respectively, if the [employee](/usc/5/8401.md?p=11) were in pay status. If the election and all payments provided by this subsection are not made, the [employee](/usc/5/8401.md?p=11) may not receive credit for the periods of leave without pay, notwithstanding the third sentence of [subsection (d)](#d).
- (f)
  - (1) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who has received a refund of retirement deductions under subchapter III of [chapter 83](/usc/5/chptIII-sptG-ch83.md) with respect to any [service](/usc/5/8401.md?p=26) described in subsection [(b)(2)](#b-2) or [(b)(3)](#b-3) may not be allowed credit for such [service](/usc/5/8401.md?p=26) under this chapter unless such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) deposits an amount equal to 1.3 percent of [basic pay](/usc/5/8401.md?p=4) for such [service](/usc/5/8401.md?p=26), 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](/usc/5/8401.md?p=24) before the date on which the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) first becomes subject to this chapter.
  - (2) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may not be allowed credit under this chapter for any [service](/usc/5/8401.md?p=26) described in [subsection (b)(3)](#b-3) for which retirement deductions under subchapter III of [chapter 83](/usc/5/chptIII-sptG-ch83.md) have not been made, unless such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) deposits an amount equal to 1.3 percent of [basic pay](/usc/5/8401.md?p=4) for such [service](/usc/5/8401.md?p=26), with interest.
  - (3) Interest under paragraph [(1)](#f-1) or [(2)](#f-2) shall be computed in accordance with paragraphs [(2)](/usc/5/8334.md?p=e-2) and [(3)](/usc/5/8334.md?p=e-3) of section 8334(e) and regulations prescribed by the [Office](/usc/5/8401.md?p=24).
  - (4) For the purpose of [survivor](/usc/5/8401.md?p=28) annuities, deposits authorized by the preceding provisions of this subsection may also be made by a [survivor](/usc/5/8401.md?p=28) of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
- (g) Any [employee](/usc/5/8401.md?p=11) who—
  - (1) served in a [position](/usc/5/5531.md?p=2) in which the [employee](/usc/5/8401.md?p=11) was excluded from coverage under this subchapter because the [employee](/usc/5/8401.md?p=11) was covered under a retirement [system](/usc/5/8401.md?p=29) established under section 10 of the Federal Reserve Act; and
  - (2) transferred without a break in [service](/usc/5/8401.md?p=26) to a [position](/usc/5/5531.md?p=2) to which the [employee](/usc/5/8401.md?p=11) was appointed by the President, with the advice and consent of the Senate, and in which [position](/usc/5/5531.md?p=2) the [employee](/usc/5/8401.md?p=11) is subject to this subchapter,

  shall be treated for all purposes of this subchapter as if any [service](/usc/5/8401.md?p=26) that would have been creditable under the retirement [system](/usc/5/8401.md?p=29) established under section 10 of the Federal Reserve Act was [service](/usc/5/8401.md?p=26) performed while subject to this subchapter if any [employee](/usc/5/8401.md?p=11) and employer deductions, contributions or rights with respect to the [employee](/usc/5/8401.md?p=11)’s [service](/usc/5/8401.md?p=26) are transferred from such retirement [system](/usc/5/8401.md?p=29) to the [Fund](/usc/5/8401.md?p=6).

- (h) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) shall be allowed credit for [service](/usc/5/8401.md?p=26) 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,[^1] 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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) has made a deposit with interest, if any, with respect to such [service](/usc/5/8401.md?p=26) under [section 8422(f)](/usc/5/8422.md?p=f).
- (i) [^2] For purposes of [subsection (b)(5)](#b-5), the term “Bank Plan” means the benefit structure in which [employees](/usc/5/8401.md?p=11) of the [Board](/usc/5/8401.md?p=5) of Governors of the Federal Reserve [System](/usc/5/8401.md?p=29) appointed on or after January 1, 1984, participate, which benefit structure is a component of the Retirement Plan for [Employees](/usc/5/8401.md?p=11) of the Federal Reserve [System](/usc/5/8401.md?p=29), 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](/usc/5/8401.md?p=5) of Governors of the Federal Reserve [System](/usc/5/8401.md?p=29) for purposes of this chapter).
- (i)
  - (1) [^2] Upon application to the [Office](/usc/5/8401.md?p=24) of Personnel Management, any individual who was an [employee](/usc/5/8401.md?p=11) 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](/usc/5/8401.md?p=26) under this section (exclusive of [service](/usc/5/8401.md?p=26) for which credit is allowed under this subsection) shall be allowed credit (as [service](/usc/5/8401.md?p=26) as a [congressional employee](/usc/5/5531.md?p=7)) for [service](/usc/5/8401.md?p=26) 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](/usc/5/8401.md?p=11) has at least 4 years and 6 months of [service](/usc/5/8401.md?p=26) on such committees as of December 31, 1990; and
    - (B) such [employee](/usc/5/8401.md?p=11) deposits to the [Fund](/usc/5/8401.md?p=6) an amount equal to 1.3 percent of the base pay for such [service](/usc/5/8401.md?p=26), with interest.
  - (2) The [Office](/usc/5/8401.md?p=24) 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](/usc/5/8401.md?p=26) of, and the amount of compensation received by, an [employee](/usc/5/8401.md?p=11) with respect to whom credit is to be sought under this subsection.
  - (3) An individual shall not be granted credit for such [service](/usc/5/8401.md?p=26) under this subsection if eligible for credit under [section 8332(m)](/usc/5/8332.md?p=m) for such [service](/usc/5/8401.md?p=26).
- (k)
  - (1) [^3] The [Office](/usc/5/8401.md?p=24) of Personnel Management shall accept, for the purposes of this chapter, the certification of the head of a [nonappropriated fund instrumentality](/usc/5/5595.md?p=h-6-C) of the United States concerning [service](/usc/5/8401.md?p=26) of the type described in [subsection (b)(6)](#b-6) that was performed for such [nonappropriated fund instrumentality](/usc/5/5595.md?p=h-6-C).
  - (2) [Service](/usc/5/8401.md?p=26) credited under [subsection (b)(6)](#b-6) may not also be credited under any other retirement [system](/usc/5/8401.md?p=29) provided for [employees](/usc/5/8401.md?p=11) paid from nonappropriated [funds](/usc/5/8401.md?p=6) of a [nonappropriated fund instrumentality](/usc/5/5595.md?p=h-6-C).
- (l)
  - (1) Notwithstanding any other provision of this chapter, the [service](/usc/5/8401.md?p=26) of an individual [finally convicted](#l-6-A) of an offense described in [paragraph (2)](#l-2) shall not be taken into [account](/usc/5/8401.md?p=1) for purposes of this chapter, except that this sentence applies only to [service](/usc/5/8401.md?p=26) rendered as a [Member](#l-6-B) (irrespective of when rendered). Any such individual (or other person determined under [section 8424(d)](/usc/5/8424.md?p=d), if applicable) shall be entitled to be paid so much of such individual’s [lump-sum credit](/usc/5/8401.md?p=19) as is attributable to [service](/usc/5/8401.md?p=26) to which the preceding sentence applies.
  - (2) An offense described in this paragraph is any offense described in [section 8332(o)(2)(B)](/usc/5/8332.md?p=o-2-B) for which the following apply:
    - (A) Every act or omission of the individual (referred to in [paragraph (1)](#l-1)) that is needed to satisfy the elements of the offense occurs while the individual is a [Member](#l-6-B), the President, the Vice President, or an elected official of a State or local [government](/usc/5/8401.md?p=15).
    - (B) Every act or omission of the individual that is needed to satisfy the elements of the offense directly relates to the performance of the individual’s official duties as a [Member](#l-6-B), the President, the Vice President, or an elected official of a State or local [government](/usc/5/8401.md?p=15).
    - (C) The offense is committed after the date of enactment of this subsection.
  - (3) An individual convicted of an offense described in [paragraph (2)](#l-2) shall not, after the date of the [final conviction](#l-6-A), be eligible to participate in the retirement [system](/usc/5/8401.md?p=29) under this chapter while serving as a [Member](#l-6-B).
  - (4) The [Office](/usc/5/8401.md?p=24) of Personnel Management shall prescribe any regulations necessary to carry out this subsection. Such regulations shall include—
    - (A) provisions under which interest on any lump-sum payment under the second sentence of [paragraph (1)](#l-1) shall be limited in a manner similar to that specified in the last sentence of [section 8316(b)](/usc/5/8316.md?p=b); and
    - (B) provisions under which the [Office](/usc/5/8401.md?p=24) may provide for—
      - (i) the payment, to the spouse or children of any individual referred to in the first sentence of [paragraph (1)](#l-1), of any amounts which (but for this clause) would otherwise have been nonpayable by reason of such first sentence, subject to [paragraph (5)](#l-5); and
      - (ii) an appropriate adjustment in the amount of any lump-sum payment under the second sentence of [paragraph (1)](#l-1) to reflect the application of [clause (i)](#l-4-B-i).
  - (5) Regulations to carry out [clause (i)](#l-4-B-i) of paragraph (4)(B) shall include provisions to ensure that the [authority](/usc/5/7103.md?p=a-6) to make any payment under such clause to the spouse or children of an individual shall be available only to the extent that the application of such clause is considered necessary and appropriate taking into [account](/usc/5/8401.md?p=1) the totality of the circumstances, including the financial needs of the spouse or children, whether the spouse or children participated in an offense described in [paragraph (2)](#l-2) of which such individual was [finally convicted](#l-6-A), and what measures, if any, may be necessary to ensure that the convicted individual does not benefit from any such payment.
  - (6) For purposes of this subsection—
    - (A) the terms “finally convicted” and “final conviction” refer to a conviction (i) which has not been appealed and is no longer appealable because the time for taking an appeal has expired, or (ii) which has been appealed and the appeals process for which is completed;
    - (B) the term “Member” has the meaning given such term by [section 2106](/usc/5/2106.md), notwithstanding [section 8401(20)](/usc/5/8401.md?p=20); and
    - (C) the term “child” has the meaning given such term by [section 8441](/usc/5/8441.md).

# §8412. Immediate retirement

- (a) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who is separated from the [service](/usc/5/8401.md?p=26) after attaining the applicable minimum retirement age under [subsection (h)](#h) and completing 30 years of [service](/usc/5/8401.md?p=26) is entitled to an annuity.
- (b) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who is separated from the [service](/usc/5/8401.md?p=26) after becoming 60 years of age and completing 20 years of [service](/usc/5/8401.md?p=26) is entitled to an annuity.
- (c) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who is separated from the [service](/usc/5/8401.md?p=26) after becoming 62 years of age and completing 5 years of [service](/usc/5/8401.md?p=26) is entitled to an annuity.
- (d)
  - (1) An [employee](/usc/5/8401.md?p=11) who is separated from the [service](/usc/5/8401.md?p=26), except by removal for cause on charges of misconduct or delinquency—
    - (A) after completing 25 years of [service](/usc/5/8401.md?p=26) as a [law enforcement officer](/usc/5/8401.md?p=17), [member](/usc/5/8401.md?p=20) of the Capitol Police or Supreme [Court](/usc/5/8401.md?p=7) Police, [firefighter](/usc/5/8401.md?p=14), [nuclear materials courier](/usc/5/8401.md?p=33), or [customs and border protection officer](/usc/5/8401.md?p=36), or any combination of such [service](/usc/5/8401.md?p=26) totaling at least 25 years, or
    - (B) after becoming 50 years of age and completing 20 years of [service](/usc/5/8401.md?p=26) as a [law enforcement officer](/usc/5/8401.md?p=17), [member](/usc/5/8401.md?p=20) of the Capitol Police or Supreme [Court](/usc/5/8401.md?p=7) Police, [firefighter](/usc/5/8401.md?p=14), [nuclear materials courier](/usc/5/8401.md?p=33), or [customs and border protection officer](/usc/5/8401.md?p=36), or any combination of such [service](/usc/5/8401.md?p=26) totaling at least 20 years,

    is entitled to an annuity.

  - (2)
    - (A) In this paragraph—
      - (i) the term “affected individual” means an individual covered under this chapter who—
        - (I) is performing [service](/usc/5/8401.md?p=26) in a [covered position](#d-2-A-ii);
        - (II) while on duty, becomes ill or is injured as a direct result of the performance of such duties before the date on which the individual becomes entitled to an annuity under paragraph (1) of this subsection or [subsection (e)](#e), as applicable;
        - (III) because of the illness or injury described in [subclause (II)](#d-2-A-i-II), is permanently unable to render useful and efficient [service](/usc/5/8401.md?p=26) in the [employee](/usc/5/8401.md?p=11)’s [covered position](#d-2-A-ii), as determined by the [agency](/usc/5/500.md?p=a-1) in which the individual was serving when such individual incurred the illness or injury; and
        - (IV) is appointed to a [position](/usc/5/5531.md?p=2) in the civil [service](/usc/5/8401.md?p=26) that—
          - (aa) is not a [covered position](#d-2-A-ii); and
          - (bb) is within an [agency](/usc/5/500.md?p=a-1) that regularly appoints individuals to supervisory or administrative [positions](/usc/5/5531.md?p=2) related to the activities of the former [covered position](#d-2-A-ii) of the individual;
      - (ii) the term “covered position” means a [position](/usc/5/5531.md?p=2) as a [law enforcement officer](/usc/5/8401.md?p=17), [customs and border protection officer](/usc/5/8401.md?p=36), [firefighter](/usc/5/8401.md?p=14), [air traffic controller](/usc/5/8401.md?p=35), [nuclear materials courier](/usc/5/8401.md?p=33), [member](/usc/5/8401.md?p=20) of the Capitol Police, or [member](/usc/5/8401.md?p=20) of the Supreme [Court](/usc/5/8401.md?p=7) Police.
    - (B) Unless an [affected individual](#d-2-A-i) files an election described in [subparagraph (E)](#d-2-E), creditable [service](/usc/5/8401.md?p=26) by the [affected individual](#d-2-A-i) in a [position](/usc/5/5531.md?p=2) described in [subparagraph (A)(i)(IV)](#d-2-A-i-IV) shall be treated as creditable [service](/usc/5/8401.md?p=26) in a [covered position](#d-2-A-ii) for purposes of this chapter and determining the amount to be deducted and withheld from the pay of the [affected individual](#d-2-A-i) under [section 8422](/usc/5/8422.md).
    - (C) [Subparagraph (B)](#d-2-B) shall only apply if the affected [employee](/usc/5/8401.md?p=11) transitions to a [position](/usc/5/5531.md?p=2) described in [subparagraph (A)(i)(IV)](#d-2-A-i-IV) without a break in [service](/usc/5/8401.md?p=26) exceeding 3 days.
    - (D) The [service](/usc/5/8401.md?p=26) of an [affected individual](#d-2-A-i) shall no longer be eligible for treatment under [subparagraph (B)](#d-2-B) if such [service](/usc/5/8401.md?p=26) occurs after the individual—
      - (i) is transferred to a supervisory or administrative [position](/usc/5/5531.md?p=2) related to the activities of the former [covered position](#d-2-A-ii) of the individual; or
      - (ii) meets the age and [service](/usc/5/8401.md?p=26) requirements that would subject the individual to mandatory separation under [section 8425](/usc/5/8425.md) if such individual had remained in the former [covered position](#d-2-A-ii).
    - (E) In accordance with procedures established by the [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) of Personnel Management, an [affected individual](#d-2-A-i) may file an election to have any creditable [service](/usc/5/8401.md?p=26) performed by the [affected individual](#d-2-A-i) treated in accordance with this chapter without regard to [subparagraph (B)](#d-2-B).
    - (F) Nothing in this paragraph shall be construed to apply to such [affected individual](#d-2-A-i) any other pay-related laws or regulations applicable to a [covered position](#d-2-A-ii).
- (e) An [employee](/usc/5/8401.md?p=11) who is separated from the [service](/usc/5/8401.md?p=26), except by removal for cause on charges of misconduct or delinquency—
  - (1) after completing 25 years of [service](/usc/5/8401.md?p=26) as an [air traffic controller](/usc/5/8401.md?p=35), or
  - (2) after becoming 50 years of age and completing 20 years of [service](/usc/5/8401.md?p=26) as an [air traffic controller](/usc/5/8401.md?p=35),

  is entitled to an annuity.

- (f) A [Member](/usc/5/8401.md?p=20) who is separated from the [service](/usc/5/8401.md?p=26), except by resignation or expulsion—
  - (1) after completing 25 years of [service](/usc/5/8401.md?p=26), or
  - (2) after becoming 50 years of age and completing 20 years of [service](/usc/5/8401.md?p=26),

  is entitled to an annuity.

- (g)
  - (1) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who is separated from the [service](/usc/5/8401.md?p=26) after attaining the applicable minimum retirement age under [subsection (h)](#h) and completing 10 years of [service](/usc/5/8401.md?p=26) is entitled to an annuity. This subsection shall not apply to an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who is entitled to an annuity under any other provision of this section.
  - (2) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) becomes 62 years of age.
  - (3) The [Office](/usc/5/8401.md?p=24) shall prescribe regulations under which an election under [paragraph (2)](#g-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)](#h-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)](#h-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.

# §8412a. Phased retirement

- (a) For the purposes of this section—
  - (1) the term “composite retirement annuity” means the annuity computed when a [phased retiree](#a-4) attains [full retirement status](#a-2);
  - (2) the term “full retirement status” means that a [phased retiree](#a-4) has ceased employment and is entitled, upon application, to a [composite retirement annuity](#a-1);
  - (3) the term “phased employment” means the less-than-full-time employment of a [phased retiree](#a-4);
  - (4) the term “phased retiree” means a [retirement-eligible employee](#a-9) who—
    - (A) makes an election under [subsection (b)](#b); and
    - (B) has not entered [full retirement status](#a-2);
  - (5) the term “phased retirement annuity” means the annuity payable under this section before full retirement;
  - (6) the term “phased retirement percentage” means the percentage which, when added to the [working percentage](#a-10) for a [phased retiree](#a-4), produces a sum of 100 percent;
  - (7) the term “phased retirement period” means the period beginning on the date on which an individual becomes entitled to receive a [phased retirement annuity](#a-5) and ending on the date on which the individual dies or separates from [phased employment](#a-3);
  - (8) the term “phased retirement status” means that a [phased retiree](#a-4) is concurrently employed in [phased employment](#a-3) and eligible to receive a [phased retirement annuity](#a-5);
  - (9) the term “retirement-eligible employee”—
    - (A) means an individual who, if the individual separated from the [service](/usc/5/8401.md?p=26), would meet the requirements for retirement under subsection [(a)](/usc/5/8412.md?p=a) or [(b)](/usc/5/8412.md?p=b) of section 8412; and
    - (B) does not include—
      - (i) an individual who, if the individual separated from the [service](/usc/5/8401.md?p=26), would meet the requirements for retirement under subsection [(d)](/usc/5/8412.md?p=d) or [(e)](/usc/5/8412.md?p=e) of section 8412; but
      - (ii) does not include an [employee](/usc/5/8401.md?p=11) described in [section 8425](/usc/5/8425.md) after the date on which the [employee](/usc/5/8401.md?p=11) is required to be separated from the [service](/usc/5/8401.md?p=26) by reason of such section; and
  - (10) the term “working percentage” means the percentage of full-time employment equal to the quotient obtained by dividing—
    - (A) the number of hours per pay period to be worked by a [phased retiree](#a-4), as scheduled in accordance with [subsection (b)(2)](#b-2); by
    - (B) the number of hours per pay period to be worked by an [employee](/usc/5/8401.md?p=11) serving in a comparable [position](/usc/5/5531.md?p=2) on a full-time basis.
- (b)
  - (1) With the concurrence of the head of the employing [agency](/usc/5/500.md?p=a-1), and under regulations promulgated by the [Director](/usc/5/8401.md?p=8), a [retirement-eligible employee](#a-9) who has been employed on a full-time basis for not less than the 3-year period ending on the date on which the [retirement-eligible employee](#a-9) makes an election under this subsection may elect to enter [phased retirement status](#a-8).
  - (2)
    - (A) Subject to [subparagraph (B)](#b-2-B), at the time of entering [phased retirement status](#a-8), a [phased retiree](#a-4) shall be appointed to a [position](/usc/5/5531.md?p=2) for which the [working percentage](#a-10) is 50 percent.
    - (B) The [Director](/usc/5/8401.md?p=8) may, by regulation, provide for [working percentages](#a-10) different from the percentage specified under [subparagraph (A)](#b-2-A), which shall be not less than 20 percent and not more than 80 percent.
    - (C) The [working percentage](#a-10) for a [phased retiree](#a-4) may not be changed during the [phased retiree](#a-4)’s [phased retirement period](#a-7).
    - (D)
      - (i) Not less than 20 percent of the hours to be worked by a [phased retiree](#a-4) shall consist of mentoring.
      - (ii) The [Director](/usc/5/8401.md?p=8) may, by regulation, provide for exceptions to the requirement under [clause (i)](#b-2-D-i).
      - (iii) [Clause (i)](#b-2-D-i) shall not apply to a [phased retiree](#a-4) serving in the United States Postal [Service](/usc/5/8401.md?p=26). Nothing in this clause shall prevent the application of clause [(i)](#b-2-D-i) or [(ii)](#b-2-D-ii) with respect to a [phased retiree](#a-4) serving in the Postal Regulatory Commission.
  - (3) A [phased retiree](#a-4)—
    - (A) may not be employed in more than one [position](/usc/5/5531.md?p=2) at any time; and
    - (B) may transfer to another [position](/usc/5/5531.md?p=2) in the same or a different [agency](/usc/5/500.md?p=a-1), only if the transfer does not result in a change in the [working percentage](#a-10).
  - (4) A [retirement-eligible employee](#a-9) may make not more than one election under this subsection during the [retirement-eligible employee](#a-9)’s lifetime.
  - (5) A [retirement-eligible employee](#a-9) who makes an election under this subsection may not make an election under [section 8420a](/usc/5/8420a.md).
- (c)
  - (1) Except as otherwise provided under this subsection, the [phased retirement annuity](#a-5) for a [phased retiree](#a-4) is the product obtained by multiplying—
    - (A) the amount of an annuity computed under [section 8415](/usc/5/8415.md) that would have been payable to the [phased retiree](#a-4) if, on the date on which the [phased retiree](#a-4) enters [phased retirement status](#a-8), the [phased retiree](#a-4) had separated from [service](/usc/5/8401.md?p=26) and retired under section [8412 (a)](/usc/5/8412.md?p=a) or [(b)](/usc/5/8412.md?p=b); by
    - (B) the [phased retirement percentage](#a-6) for the [phased retiree](#a-4).
  - (2) A [phased retirement annuity](#a-5) shall be paid in addition to the [basic pay](/usc/5/8401.md?p=4) for the [position](/usc/5/5531.md?p=2) to which a [phased retiree](#a-4) is appointed during the [phased employment](#a-3).
  - (3) A [phased retirement annuity](#a-5) shall be adjusted in accordance with [section 8462](/usc/5/8462.md).
  - (4)
    - (A) A [phased retirement annuity](#a-5) shall not be subject to reduction for any form of [survivor](/usc/5/8401.md?p=28) annuity, shall not serve as the basis of the computation of any [survivor](/usc/5/8401.md?p=28) annuity, and shall not be subject to any [court](/usc/5/8401.md?p=7) order requiring a [survivor](/usc/5/8401.md?p=28) annuity to be provided to any individual.
    - (B) A [phased retirement annuity](#a-5) shall be subject to a [court](/usc/5/8401.md?p=7) order providing for division, allotment, assignment, execution, levy, attachment, garnishment, or other legal process on the same basis as other annuities.
  - (5)
    - (A) Any deposit, or election of an actuarial annuity reduction in lieu of a deposit, for [military service](/usc/5/8401.md?p=31) or for creditable civilian [service](/usc/5/8401.md?p=26) for which retirement deductions were not made or refunded, shall be made by a [retirement-eligible employee](#a-9) at or before the time the [retirement-eligible employee](#a-9) enters [phased retirement status](#a-8). No such deposit may be made, or actuarial adjustment in lieu thereof elected, at the time a [phased retiree](#a-4) enters [full retirement status](#a-2).
    - (B) Notwithstanding [subparagraph (A)](#c-5-A), if a [phased retiree](#a-4) does not make such a deposit and dies in [service](/usc/5/8401.md?p=26) as a [phased retiree](#a-4), a [survivor](/usc/5/8401.md?p=28) of the [phased retiree](#a-4) shall have the same right to make such deposit as would have been available had the [employee](/usc/5/8401.md?p=11) not entered [phased retirement status](#a-8) and died in [service](/usc/5/8401.md?p=26).
  - (6) A [phased retirement annuity](#a-5) shall commence on the date on which a [phased retiree](#a-4) enters [phased employment](#a-3).
  - (7) No unused sick leave credit may be used in the computation of the [phased retirement annuity](#a-5).
- (d) All [basic pay](/usc/5/8401.md?p=4) not in excess of the full-time rate of pay for the [position](/usc/5/5531.md?p=2) to which a [phased retiree](#a-4) is appointed shall be deemed to be [basic pay](/usc/5/8401.md?p=4) for purposes of sections [8422](/usc/5/8422.md) and [8423](/usc/5/8423.md).
- (e) Under such procedures as the [Director](/usc/5/8401.md?p=8) may prescribe, a [phased retiree](#a-4) may elect to enter [full retirement status](#a-2) at any time. Upon making such an election, a [phased retiree](#a-4) shall be entitled to a [composite retirement annuity](#a-1).
- (f)
  - (1) Except as provided otherwise under this subsection, a [composite retirement annuity](#a-1) is a single annuity computed under regulations prescribed by the [Director](/usc/5/8401.md?p=8), equal to the sum of—
    - (A) the amount of the [phased retirement annuity](#a-5) as of the date of full retirement, including any adjustments made under [section 8462](/usc/5/8462.md); and
    - (B) the product obtained by multiplying—
      - (i) the amount of an annuity computed under [section 8412](/usc/5/8412.md) that would have been payable at the time of full retirement if the individual had not elected a phased retirement and as if the individual was employed on a full-time basis in the [position](/usc/5/5531.md?p=2) occupied during the [phased retirement period](#a-7) and before any adjustment to provide for a [survivor](/usc/5/8401.md?p=28) annuity; by
      - (ii) the [working percentage](#a-10).
  - (2) After computing a [composite retirement annuity](#a-1) under [paragraph (1)](#f-1), the [Director](/usc/5/8401.md?p=8) shall adjust the amount of the annuity for any applicable reductions for a [survivor](/usc/5/8401.md?p=28) annuity.
  - (3) A [composite retirement annuity](#a-1) shall be adjusted in accordance with [section 8462](/usc/5/8462.md), except that [subsection (c)(1)](/usc/5/8462.md?p=c-1) of that section shall not apply.
  - (4) In computing a [composite retirement annuity](#a-1) under [paragraph (1)(B)(i)](#f-1-B-i), the unused sick leave to the credit of a [phased retiree](#a-4) at the time of entry into [full retirement status](#a-2) shall be adjusted by dividing the number of hours of unused sick leave by the [working percentage](#a-10).
- (g)
  - (1) Under such procedures and conditions as the [Director](/usc/5/8401.md?p=8) may provide, and with the concurrence of the head of employing [agency](/usc/5/500.md?p=a-1), a [phased retiree](#a-4) may elect to terminate [phased retirement status](#a-8) and return to a full-time work schedule.
  - (2) Upon entering a full-time work schedule based on an election under [paragraph (1)](#g-1), the [phased retirement annuity](#a-5) of a [phased retiree](#a-4) shall terminate.
  - (3) After termination of the [phased retirement annuity](#a-5) under this subsection, the individual’s rights under this chapter shall be determined based on the law in effect at the time of any subsequent separation from [service](/usc/5/8401.md?p=26). For purposes of this chapter, at the time of the subsequent separation from [service](/usc/5/8401.md?p=26), the [phased retirement period](#a-7) shall be treated as if it had been a period of part-time employment with the work schedule described in [subsection (b)(2)](#b-2).
- (h) For purposes of subchapter IV—
  - (1) the death of a [phased retiree](#a-4) shall be deemed to be the death in [service](/usc/5/8401.md?p=26) of an [employee](/usc/5/8401.md?p=11);
  - (2) except for purposes of [section 8442(b)(1)(A)(i)](/usc/5/8442.md?p=b-1-A-i), the [phased retirement period](#a-7) shall be deemed to have been a period of part-time employment with the work schedule described in [subsection (b)(2)](#b-2) of this section; and
  - (3) for purposes of [section 8442(b)(1)(A)(i)](/usc/5/8442.md?p=b-1-A-i), the [phased retiree](#a-4) shall be deemed to have been at the full-time rate of pay for the [position](/usc/5/5531.md?p=2) occupied.
- (i) Employment of a [phased retiree](#a-4) shall not be deemed to be part-time career employment, as defined in [section 3401(2)](/usc/5/3401.md?p=2).
- (j) A [phased retiree](#a-4) is not eligible to receive an annuity supplement under [section 8421](/usc/5/8421.md).
- (k) For purposes of subchapter III, a [phased retiree](#a-4) shall be deemed to be an [employee](/usc/5/8401.md?p=11).
- (l) For purposes of [section 8445(d)](/usc/5/8445.md?p=d), retirement shall be deemed to occur on the date on which a [phased retiree](#a-4) enters into [full retirement status](#a-2).
- (m) A [phased retiree](#a-4) is not eligible to apply for an annuity under subchapter V.
- (n) A [phased retiree](#a-4) is not subject to [section 8468](/usc/5/8468.md).
- (o) For purposes of [chapter 87](/usc/5/chptIII-sptG-ch87.md), a [phased retiree](#a-4) shall be deemed to be receiving [basic pay](/usc/5/8401.md?p=4) at the rate of a full-time [employee](/usc/5/8401.md?p=11) in the [position](/usc/5/5531.md?p=2) to which the [phased retiree](#a-4) is appointed.

# §8413. Deferred retirement

- (a) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who is separated from the [service](/usc/5/8401.md?p=26), or transferred to a [position](/usc/5/5531.md?p=2) in which the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) does not continue subject to this chapter, after completing 5 years of [service](/usc/5/8401.md?p=26) is entitled to an annuity beginning at the age of 62 years.
- (b)
  - (1) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who is separated from the [service](/usc/5/8401.md?p=26), or transferred to a [position](/usc/5/5531.md?p=2) in which the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) does not continue subject to this chapter, after completing 10 years of [service](/usc/5/8401.md?p=26) but before attaining the applicable minimum retirement age under [section 8412(h)](/usc/5/8412.md?p=h) is entitled to an annuity beginning on the date designated by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) in a written election under this subsection. The date designated under this subsection may not precede the date on which the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) attains such minimum retirement age and must precede the date on which the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=24) shall by regulation prescribe; and
    - (B) the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) to receive any other annuity based on the [service](/usc/5/8401.md?p=26) on which the annuity under this subsection is based.

# §8414. Early retirement

- (a)
  - (1) A [member](/usc/5/8401.md?p=20) of the Senior Executive [Service](/usc/5/8401.md?p=26) who is removed from the Senior Executive [Service](/usc/5/8401.md?p=26) for less than fully successful executive performance (as determined under subchapter II of [chapter 43](/usc/5/chptIII-sptC-ch43.md) of this title) after completing 25 years of [service](/usc/5/8401.md?p=26), or after becoming 50 years of age and completing 20 years of [service](/usc/5/8401.md?p=26), is entitled to an annuity.
  - (2) A [member](/usc/5/8401.md?p=20) of the Defense Intelligence Senior Executive [Service](/usc/5/8401.md?p=26) or the Senior Cryptologic Executive [Service](/usc/5/8401.md?p=26) who is removed from such [service](/usc/5/8401.md?p=26) for failure to be recertified as a senior executive or for less than fully successful executive performance after completing 25 years of [service](/usc/5/8401.md?p=26), or after becoming 50 years of age and completing 20 years of [service](/usc/5/8401.md?p=26), is entitled to an annuity.
  - (3) A [member](/usc/5/8401.md?p=20) of the Federal Bureau of Investigation and Drug Enforcement Administration Senior Executive [Service](/usc/5/8401.md?p=26) who is removed from such [service](/usc/5/8401.md?p=26) for failure to be recertified as a senior executive or for less than fully successful executive performance after completing 25 years of [service](/usc/5/8401.md?p=26) or after becoming 50 years of age and completing 20 years of [service](/usc/5/8401.md?p=26) is entitled to an annuity.
- (b)
  - (1) Except as provided in paragraphs [(2)](#b-2) and [(3)](#b-3), an [employee](/usc/5/8401.md?p=11) who—
    - (A) is separated from the [service](/usc/5/8401.md?p=26) involuntarily, except by removal for cause on charges of misconduct or delinquency; or
    - (B)
      - (i) has been employed continuously, by the [agency](/usc/5/500.md?p=a-1) in which the [employee](/usc/5/8401.md?p=11) is serving, for at least the 31-day period ending on the date on which such [agency](/usc/5/500.md?p=a-1) requests the determination referred to in [clause (iv)](#b-1-B-iv);
      - (ii) is serving under an appointment that is not time limited;
      - (iii) has not been duly notified that such [employee](/usc/5/8401.md?p=11) is to be involuntarily separated for misconduct or unacceptable performance;
      - (iv) is separate[^1] from the [service](/usc/5/8401.md?p=26) voluntarily during a period in which, as determined by the [Office](/usc/5/8401.md?p=24) of Personnel Management (upon request of the [agency](/usc/5/500.md?p=a-1)) under regulations prescribed by the [Office](/usc/5/8401.md?p=24)—
        - (I) such [agency](/usc/5/500.md?p=a-1) (or, if applicable, the component in which the [employee](/usc/5/8401.md?p=11) is serving) is undergoing substantial delayering, substantial [reorganization](/usc/5/902.md?p=2), substantial reductions in force, substantial transfer of function, or other substantial workforce restructuring (or shaping);
        - (II) a significant percentage of [employees](/usc/5/8401.md?p=11) serving in such [agency](/usc/5/500.md?p=a-1) (or component) are likely to be separated or subject to an immediate reduction in the rate of [basic pay](/usc/5/8401.md?p=4) (without regard to subchapter VI of [chapter 53](/usc/5/chptIII-sptD-ch53.md), or comparable provisions); or
        - (III) identified as being in [positions](/usc/5/5531.md?p=2) which are becoming surplus or excess to the [agency](/usc/5/500.md?p=a-1)’s future ability to carry out its mission effectively; and
      - (v) as determined by the [agency](/usc/5/500.md?p=a-1) under regulations prescribed by the [Office](/usc/5/8401.md?p=24), 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](/usc/5/5531.md?p=2); or
        - (VI) any appropriate combination of such factors.[^2]

    after completing 25 years of [service](/usc/5/8401.md?p=26), or after becoming 50 years of age and completing 20 years of [service](/usc/5/8401.md?p=26), is entitled to an annuity.

  - (2) An [employee](/usc/5/8401.md?p=11) under [paragraph (1)](#b-1) who is separated as described in [subparagraph (A)](#b-1-A) of such paragraph is not entitled to an annuity under this subsection if the [employee](/usc/5/8401.md?p=11) has declined a reasonable offer of another [position](/usc/5/5531.md?p=2) in the [employee](/usc/5/8401.md?p=11)’s [agency](/usc/5/500.md?p=a-1) for which the [employee](/usc/5/8401.md?p=11) is qualified, and the offered [position](/usc/5/5531.md?p=2) is not lower than 2 grades (or pay levels) below the [employee](/usc/5/8401.md?p=11)’s grade (or pay level) and is within the [employee](/usc/5/8401.md?p=11)’s commuting area.
  - (3) [Paragraph (1)](#b-1) shall not apply to an [employee](/usc/5/8401.md?p=11) entitled to an annuity under subsection [(d)(1)](/usc/5/8412.md?p=d-1) or [(e)](/usc/5/8412.md) of section 8412.
- (c)
  - (1) An [employee](/usc/5/8401.md?p=11) 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](/usc/5/8401.md?p=26), after becoming 50 years of age and completing 25 years of [service](/usc/5/8401.md?p=26), by reason of being separated from the Selected Reserve of the [employee](/usc/5/8401.md?p=11)’s reserve component or ceasing to hold the military grade specified by the Secretary concerned for the [position](/usc/5/5531.md?p=2) held by the [employee](/usc/5/8401.md?p=11) is entitled to an annuity.
  - (2) An [employee](/usc/5/8401.md?p=11) who is initially hired as a [military technician (dual status)](/usc/5/8401.md?p=30) 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](/usc/5/5531.md?p=2) held by the technician—
    - (A) after completing 25 years of [service](/usc/5/8401.md?p=26) as a [military technician (dual status)](/usc/5/8401.md?p=30), or
    - (B) after becoming 50 years of age and completing 20 years of [service](/usc/5/8401.md?p=26) as a [military technician (dual status)](/usc/5/8401.md?p=30),

    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](/usc/5/8401.md?p=11) of the Department of Defense may be separated from the [service](/usc/5/8401.md?p=26) entitled to an immediate annuity under this subchapter if the [employee](/usc/5/8401.md?p=11)—
    - (A) has—
      - (i) completed 25 years of [service](/usc/5/8401.md?p=26); or
      - (ii) become 50 years of age and completed 20 years of [service](/usc/5/8401.md?p=26); and
    - (B) is eligible for the annuity under paragraph [(2)](#d-2) or [(3)](#d-3).
  - (2)
    - (A) For the purposes of [paragraph (1)](#d-1), an [employee](/usc/5/8401.md?p=11) referred to in that paragraph is eligible for an immediate annuity under this paragraph if the [employee](/usc/5/8401.md?p=11)—
      - (i) is separated from the [service](/usc/5/8401.md?p=26) involuntarily other than for cause; and
      - (ii) has not declined a reasonable offer of another [position](/usc/5/5531.md?p=2) in the Department of Defense for which the [employee](/usc/5/8401.md?p=11) is qualified, which is not lower than 2 grades (or pay levels) below the [employee](/usc/5/8401.md?p=11)’s grade (or pay level), and which is within the [employee](/usc/5/8401.md?p=11)’s commuting area.
    - (B) For the purposes of [paragraph (2)(A)(i)](#d-2-A-i), a separation for failure to accept a directed reassignment to a [position](/usc/5/5531.md?p=2) outside the commuting area of the [employee](/usc/5/8401.md?p=11) concerned or to accompany a [position](/usc/5/5531.md?p=2) 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)](#d-1), an [employee](/usc/5/8401.md?p=11) referred to in that paragraph is eligible for an immediate annuity under this paragraph if the [employee](/usc/5/8401.md?p=11) satisfies all of the following conditions:
    - (A) The [employee](/usc/5/8401.md?p=11) is separated from the [service](/usc/5/8401.md?p=26) voluntarily during a period in which the organization within the Department of Defense in which the [employee](/usc/5/8401.md?p=11) is serving is undergoing a [major organizational adjustment](#d-6).
    - (B) The [employee](/usc/5/8401.md?p=11) has been employed continuously by the Department of Defense for more than 30 days before the date on which the head of the [employee](/usc/5/8401.md?p=11)’s organization requests the determinations required under [subparagraph (A)](#d-3-A).
    - (C) The [employee](/usc/5/8401.md?p=11) is serving under an appointment that is not limited by time.
    - (D) The [employee](/usc/5/8401.md?p=11) is not in receipt of a decision notice of involuntary separation for misconduct or unacceptable performance.
    - (E) The [employee](/usc/5/8401.md?p=11) 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](/usc/5/8401.md?p=24) of Personnel Management determines appropriate.
  - (4) Under regulations prescribed by the [Office](/usc/5/8401.md?p=24) of Personnel Management, the determinations of whether an [employee](/usc/5/8401.md?p=11) meets—
    - (A) the requirements of [subparagraph (A)](#d-3-A) of paragraph (3) shall be made by the [Office](/usc/5/8401.md?p=24) 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](/usc/5/8401.md?p=11) 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](/usc/5/902.md?p=2).
    - (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](/usc/5/5531.md?p=2).

# §8415. Computation of basic annuity

- (a) Except as otherwise provided in this section, the annuity of an [employee](/usc/5/8401.md?p=11) retiring under this subchapter is 1 percent of that individual’s [average pay](/usc/5/8401.md?p=3) multiplied by such individual’s total [service](/usc/5/8401.md?p=26).
- (b) The annuity of a [Member](/usc/5/8401.md?p=20), or former [Member](/usc/5/8401.md?p=20) with title to a [Member](/usc/5/8401.md?p=20) annuity, retiring under this subchapter is computed under [subsection (a)](#a), except that if the individual has had at least 5 years of [service](/usc/5/8401.md?p=26) as a [Member](/usc/5/8401.md?p=20) or [Congressional employee](/usc/5/5531.md?p=7), or any combination thereof, so much of the annuity as is computed with respect to either such type of [service](/usc/5/8401.md?p=26) (or a combination thereof), not exceeding a total of 20 years, shall be computed by multiplying 1<sup>7</sup>⁄<sub>10</sub> percent of the individual’s [average pay](/usc/5/8401.md?p=3) by the years of such [service](/usc/5/8401.md?p=26).
- (c) The annuity of a [Congressional employee](/usc/5/5531.md?p=7), or former [Congressional employee](/usc/5/5531.md?p=7), retiring under this subchapter is computed under [subsection (a)](#a), except that if the individual has had at least 5 years of [service](/usc/5/8401.md?p=26) as a [Congressional employee](/usc/5/5531.md?p=7) or [Member](/usc/5/8401.md?p=20), or any combination thereof, so much of the annuity as is computed with respect to either such type of [service](/usc/5/8401.md?p=26) (or a combination thereof), not exceeding a total of 20 years, shall be computed by multiplying 1<sup>7</sup>⁄<sub>10</sub> percent of the individual’s [average pay](/usc/5/8401.md?p=3) by the years of such [service](/usc/5/8401.md?p=26).
- (d) Notwithstanding any other provision of law, the annuity of an individual described in subsection [(b)](#b) or [(c)](#c) who is a [revised annuity employee](/usc/5/8401.md?p=37) or a [further revised annuity employee](/usc/5/8401.md?p=38) shall be computed in the same manner as in the case of an individual described in [subsection (a)](#a).
- (e) The annuity of an [employee](/usc/5/8401.md?p=11) retiring under subsection [(d)(1)](/usc/5/8412.md?p=d-1) or [(e)](/usc/5/8412.md) of section 8412 or under subsection [(a)](/usc/5/8425.md?p=a), [(b)](/usc/5/8425.md?p=b), or [(c)](/usc/5/8425.md?p=c) of section 8425 is—
  - (1) 1<sup>7</sup>⁄<sub>10</sub> percent of that individual’s [average pay](/usc/5/8401.md?p=3) multiplied by so much of such individual’s total [service](/usc/5/8401.md?p=26) as does not exceed 20 years; plus
  - (2) 1 percent of that individual’s [average pay](/usc/5/8401.md?p=3) multiplied by so much of such individual’s total [service](/usc/5/8401.md?p=26) as exceeds 20 years.
- (f) The annuity of an [air traffic controller](/usc/5/8401.md?p=35) or former [air traffic controller](/usc/5/8401.md?p=35) retiring under [section 8412(a)](/usc/5/8412.md?p=a) is computed under [subsection (a)](#a), except that if the individual has at least 5 years of [service](/usc/5/8401.md?p=26) in any combination as—
  - (1) an [air traffic controller](/usc/5/8401.md?p=35) as defined by [section 2109(1)(A)(i)](/usc/5/2109.md?p=1-A-i);
  - (2) a first level supervisor of an [air traffic controller](/usc/5/8401.md?p=35) as defined by [section 2109(1)(A)(i)](/usc/5/2109.md?p=1-A-i); or
  - (3) a second level supervisor of an [air traffic controller](/usc/5/8401.md?p=35) as defined by [section 2109(1)(A)(i)](/usc/5/2109.md?p=1-A-i);

  so much of the annuity as is computed with respect to such type of [service](/usc/5/8401.md?p=26) shall be computed by multiplying 1 7/10 percent of the individual’s [average pay](/usc/5/8401.md?p=3) by the years of such [service](/usc/5/8401.md?p=26).

- (g)
  - (1) In computing an annuity under this subchapter for an [employee](/usc/5/8401.md?p=11) whose [service](/usc/5/8401.md?p=26) includes [service](/usc/5/8401.md?p=26) performed on a part-time basis—
    - (A) the [average pay](/usc/5/8401.md?p=3) of the [employee](/usc/5/8401.md?p=11), to the extent that it includes pay for [service](/usc/5/8401.md?p=26) performed in any [position](/usc/5/5531.md?p=2) on a part-time basis, shall be determined by using the annual rate of [basic pay](/usc/5/8401.md?p=4) that would be payable for full-time [service](/usc/5/8401.md?p=26) in the [position](/usc/5/5531.md?p=2); and
    - (B) the benefit so computed shall then be multiplied by a fraction equal to the ratio which the [employee](/usc/5/8401.md?p=11)’s actual [service](/usc/5/8401.md?p=26), as determined by prorating the [employee](/usc/5/8401.md?p=11)’s total [service](/usc/5/8401.md?p=26) to reflect the [service](/usc/5/8401.md?p=26) that was performed on a part-time basis, bears to the total [service](/usc/5/8401.md?p=26) that would be creditable for the [employee](/usc/5/8401.md?p=11) if all of the [service](/usc/5/8401.md?p=26) 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.
- (h)
  - (1) The annuity of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) retiring under section [8412(g)](/usc/5/8412.md?p=g) or [8413(b)](/usc/5/8413.md?p=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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
  - (2)
    - (A) [Paragraph (1)](#h-1) does not apply in the case of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) retiring under section [8412(g)](/usc/5/8412.md?p=g) or [8413(b)](/usc/5/8413.md?p=b) if the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) would satisfy the age and [service](/usc/5/8401.md?p=26) requirements for title to an annuity under section [8412(a)](/usc/5/8412.md?p=a), [(b)](/usc/5/8412.md?p=b), [(d)(1)(B)](/usc/5/8412.md?p=d-1-B), [(e)(2)](/usc/5/8412.md), or [(f)(2)](/usc/5/8412.md), determined as if the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) had, as of the date of separation, attained the age specified in [subparagraph (B)](#h-2-B).
    - (B) A determination under [subparagraph (A)](#h-2-A) shall be based on how old the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) will be as of the date on which the annuity under section [8412(g)](/usc/5/8412.md?p=g) or [8413(b)](/usc/5/8413.md?p=b) is to commence.
- (i)
  - (1) In applying [subsection (a)](#a) with respect to an [employee](/usc/5/8401.md?p=11) under [paragraph (2)](#i-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](/usc/5/8401.md?p=11) who—
    - (A) retires entitled to an annuity under [section 8412](/usc/5/8412.md); 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](/usc/5/8401.md?p=26);

    but does not apply in the case of a [Congressional employee](/usc/5/5531.md?p=7), [military technician (dual status)](/usc/5/8401.md?p=30), [law enforcement officer](/usc/5/8401.md?p=17), [member](/usc/5/8401.md?p=20) of the Supreme [Court](/usc/5/8401.md?p=7) Police, [firefighter](/usc/5/8401.md?p=14), [nuclear materials courier](/usc/5/8401.md?p=33), [air traffic controller](/usc/5/8401.md?p=35), or [customs and border protection officer](/usc/5/8401.md?p=36)[^1]

- (j) The annuity of a [Member](/usc/5/8401.md?p=20) who has served in a [position](/usc/5/5531.md?p=2) in the [executive branch](/usc/5/13101.md?p=4) for which the rate of [basic pay](/usc/5/8401.md?p=4) was reduced for the duration of the [service](/usc/5/8401.md?p=26) of the [Member](/usc/5/8401.md?p=20) in that [position](/usc/5/5531.md?p=2) to remove the impediment to the appointment of the [Member](/usc/5/8401.md?p=20) imposed by article I, section 6, clause 2 of the Constitution, shall, subject to a deposit in the [Fund](/usc/5/8401.md?p=6) as provided under [section 8422(g)](/usc/5/8422.md?p=g), be computed as though the rate of [basic pay](/usc/5/8401.md?p=4) which would otherwise have been in effect during that period of [service](/usc/5/8401.md?p=26) had been in effect.
- (k)
  - (1) For purposes of this subsection, the term “physicians comparability allowance” refers to an amount described in [section 8331(3)(H)](/usc/5/8331.md?p=3-H).
  - (2) Except as otherwise provided in this subsection, no part of a [physicians comparability allowance](#k-1) shall be treated as [basic pay](/usc/5/8401.md?p=4) 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](/usc/5/8401.md?p=26) as a [Government physician](/usc/5/8401.md?p=34) (whether performed before, on, or after the date of the enactment of this subsection).
  - (3) If the condition under [paragraph (2)](#k-2) is met, then, any amounts received by the individual in the form of a [physicians comparability allowance](#k-1) shall (for the purposes referred to in [paragraph (2)](#k-2)) be treated as [basic pay](/usc/5/8401.md?p=4), but only to the extent that such amounts are attributable to [service](/usc/5/8401.md?p=26) 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](/usc/5/8401.md?p=26)<br>performed, on or after the date of<br>the enactment of this subsection,<br>as a [Government physician](/usc/5/8401.md?p=34) is: | Then, the percentage allowable 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](#k-1) shall, to the extent attributable to [service](/usc/5/8401.md?p=26) performed on or after the date of the enactment of this subsection, be treated as [basic pay](/usc/5/8401.md?p=4) (without regard to any of the preceding provisions of this subsection) for purposes of computing—
    - (A) an annuity under [section 8452](/usc/5/8452.md); and
    - (B) a [survivor](/usc/5/8401.md?p=28) annuity under subchapter IV, if based on the [service](/usc/5/8401.md?p=26) of an individual who dies before separating from [service](/usc/5/8401.md?p=26).
- (l) The annuity of an [employee](/usc/5/8401.md?p=11) retiring under this chapter with [service](/usc/5/8401.md?p=26) credited under [section 8411(b)(6)](/usc/5/8411.md?p=b-6) shall be reduced by the amount necessary to ensure that the present value of the annuity payable to the [employee](/usc/5/8401.md?p=11) under this subchapter is actuarially equivalent to the present value of the annuity that would be payable to the [employee](/usc/5/8401.md?p=11) under this subchapter if it were computed—
  - (1) on the basis of [service](/usc/5/8401.md?p=26) that does not include [service](/usc/5/8401.md?p=26) credited under [section 8411(b)(6)](/usc/5/8411.md?p=b-6); and
  - (2) assuming the [employee](/usc/5/8401.md?p=11) separated from [service](/usc/5/8401.md?p=26) on the actual date of the separation of the [employee](/usc/5/8401.md?p=11).

  The amount of the reduction shall be computed under regulations prescribed by the [Office](/usc/5/8401.md?p=24) of Personnel Management for the administration of this subsection.

- (m)
  - (1) In computing an annuity under this subchapter, the total [service](/usc/5/8401.md?p=26) of an [employee](/usc/5/8401.md?p=11) who retires from the [position](/usc/5/5531.md?p=2) of a registered nurse with the [Veterans](/usc/5/2108.md?p=1) Health Administration on an immediate annuity, or dies while employed in that [position](/usc/5/5531.md?p=2) leaving any [survivor](/usc/5/8401.md?p=28) entitled to an annuity, includes the days of unused sick leave to the credit of that [employee](/usc/5/8401.md?p=11) under a formal leave [system](/usc/5/8401.md?p=29), except that such days shall not be counted in determining [average pay](/usc/5/8401.md?p=3) or annuity eligibility under this subchapter.
  - (2)
    - (A) Except as provided in [paragraph (1)](#m-1), in computing an annuity under this subchapter, the total [service](/usc/5/8401.md?p=26) of an [employee](/usc/5/8401.md?p=11) who retires on an immediate annuity or who dies leaving a [survivor](/usc/5/8401.md?p=28) or [survivors](/usc/5/8401.md?p=28) entitled to annuity includes the [applicable percentage](#m-2-B) of the days of unused sick leave to his credit under a formal leave [system](/usc/5/8401.md?p=29) and for which days the [employee](/usc/5/8401.md?p=11) has not received payment, except that these days will not be counted in determining [average pay](/usc/5/8401.md?p=3) or annuity eligibility under this subchapter. For purposes of this subsection, in the case of any such [employee](/usc/5/8401.md?p=11) who is excepted from subchapter I of [chapter 63](/usc/5/chptIII-sptE-ch63.md) under [section 6301(2)(x) through (xiii)](/usc/5/6301.md?p=2-x..2-xiii), the days of unused sick leave to his credit include any unused sick leave standing to his credit when he was excepted from such subchapter.
    - (B) For purposes of [subparagraph (A)](#m-2-A), the term “applicable percentage” means—
      - (i) 50 percent in the case of an annuity, entitlement to which is based on a death or other separation occurring during the period beginning on the date of enactment of this paragraph and ending on December 31, 2013; and
      - (ii) 100 percent in the case of an annuity, entitlement to which is based on a death or other separation occurring after December 31, 2013.
- (n) In the case of any annuity computation under this section that includes, in the aggregate, at least 2 months of credit under [section 8411(d)](/usc/5/8411.md?p=d) for any period while receiving benefits under subchapter I of [chapter 81](/usc/5/chptIII-sptG-ch81.md), the percentage otherwise applicable under this section for that period so credited shall be increased by 1 percentage point.

# §8416. Survivor reduction for a current spouse

- (a)
  - (1) If an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) is married at the time of retiring under this chapter, the reduction described in [section 8419(a)](/usc/5/8419.md?p=a) shall be made unless the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) and the spouse jointly waive, by written election, any right which the spouse may have to a [survivor](/usc/5/8401.md?p=28) annuity under [section 8442](/usc/5/8442.md) based on the [service](/usc/5/8401.md?p=26) of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20). A waiver under this paragraph shall be filed with the [Office](/usc/5/8401.md?p=24) under procedures prescribed by the [Office](/usc/5/8401.md?p=24).
  - (2) Notwithstanding [paragraph (1)](#a-1), an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) establishes to the satisfaction of the [Office](/usc/5/8401.md?p=24) (in accordance with regulations prescribed by the [Office](/usc/5/8401.md?p=24))—
    - (A) that the spouse’s whereabouts cannot be determined; or
    - (B) that, due to exceptional circumstances, requiring the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) to seek the spouse’s consent would otherwise be inappropriate.
  - (3) Except as provided in [subsection (d)](#d), a waiver made under this subsection shall be irrevocable.
- (b)
  - (1) Upon remarriage, a retired [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who was married at the time of retirement (including an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) whose annuity was not reduced to provide a [survivor](/usc/5/8401.md?p=28) annuity for the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s spouse or [former spouse](/usc/5/8401.md?p=12) as of the time of retirement) may irrevocably elect during such marriage, in a signed writing received by the [Office](/usc/5/8401.md?p=24) within 2 years after such remarriage or, if later, within 2 years after the death or remarriage of any [former spouse](/usc/5/8401.md?p=12) of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who was entitled to a [survivor](/usc/5/8401.md?p=28) annuity under [section 8445](/usc/5/8445.md) (or of the last such surviving [former spouse](/usc/5/8401.md?p=12), if there was more than one), a reduction in the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s annuity under [section 8419(a)](/usc/5/8419.md?p=a) for the purpose of providing an annuity for such [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s spouse in the event such spouse survives the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
  - (2) The election and reduction shall be effective the first day of the second month after the election is received by the [Office](/usc/5/8401.md?p=24), but not less than 9 months after the date of the remarriage.
  - (3) An election to provide a [survivor](/usc/5/8401.md?p=28) annuity to an individual under this subsection—
    - (A) shall prospectively void any election made by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under [section 8420](/usc/5/8420.md) with respect to such individual; or
    - (B) shall, if an election was made by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under [section 8420](/usc/5/8420.md) with respect to a different individual, prospectively void such election if appropriate written application is made by such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) at the time of making the election under this subsection.
  - (4) Any election under this subsection made by an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) on behalf of an individual after the retirement of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) shall not be effective if—
    - (A) the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) was married to such individual at the time of retirement; and
    - (B) the annuity rights of such individual based on the [service](/usc/5/8401.md?p=26) of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) were then waived under [subsection (a)](#a).
- (c)
  - (1) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=24) within 2 years after such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) marries or, if later, within 2 years after the death or remarriage of any [former spouse](/usc/5/8401.md?p=12) of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who was entitled to a [survivor](/usc/5/8401.md?p=28) annuity under [section 8445](/usc/5/8445.md) (or of the last such surviving [former spouse](/usc/5/8401.md?p=12), if there was more than one), a reduction in the current annuity of the retired [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), in accordance with [section 8419(a)](/usc/5/8419.md?p=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](/usc/5/8401.md?p=28) annuity for an individual—
    - (A) shall prospectively void any election made by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under [section 8420](/usc/5/8420.md) with respect to such individual; or
    - (B) shall, if an election was made by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under [section 8420](/usc/5/8420.md) with respect to a different individual, prospectively void such election if appropriate written application is made by such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) at the time of making the election under this subsection.
- (d)
  - (1) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)—
    - (A) who is married on the date of retiring under this chapter, and
    - (B) with respect to whose spouse a waiver under [subsection (a)](#a) has been made,

    may, during the 18-month period beginning on such date, elect to have a reduction made under [section 8419](/usc/5/8419.md) in order to provide a [survivor](/usc/5/8401.md?p=28) annuity under [section 8442](/usc/5/8442.md) for such spouse.

  - (2)
    - (A) An election under this subsection shall not be effective unless the amount described in [subparagraph (B)](#d-2-B) is deposited into the [Fund](/usc/5/8401.md?p=6) before the expiration of the 18-month period referred to in [paragraph (1)](#d-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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) commences and the date on which reductions pursuant to the election under this subsection commence) between the amount paid to the former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) from the [Fund](/usc/5/8401.md?p=6) 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)](#d-2-B-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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under this subsection shall be reduced by the same percentage as was in effect under [section 8419](/usc/5/8419.md) as of the date of the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’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](/usc/5/8401.md?p=24) shall inform each [employee](/usc/5/8401.md?p=11) and [Member](/usc/5/8401.md?p=20) 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.

# §8417. Survivor reduction for a former spouse

- (a) If an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) has a [former spouse](/usc/5/8401.md?p=12) who is entitled to a [survivor](/usc/5/8401.md?p=28) annuity as provided in [section 8445](/usc/5/8445.md), the reduction described in [section 8419(a)](/usc/5/8419.md?p=a) shall be made.
- (b)
  - (1) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who has a [former spouse](/usc/5/8401.md?p=12) may elect, under procedures prescribed by the [Office](/usc/5/8401.md?p=24), a reduction in the annuity of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under [section 8419(a)](/usc/5/8419.md?p=a) in order to provide a [survivor](/usc/5/8401.md?p=28) annuity for such [former spouse](/usc/5/8401.md?p=12) under [section 8445](/usc/5/8445.md).
  - (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](/usc/5/8401.md?p=12) to the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=7) order or decree referred to in [section 8445(a)](/usc/5/8445.md?p=a) which was issued before the date of such election; or
        - (II) any agreement referred to in such [section 8445(a)](/usc/5/8445.md?p=a) which was entered into before such date; or
      - (ii) would cause the total of [survivor](/usc/5/8401.md?p=28) annuities payable under sections [8442](/usc/5/8442.md) and [8445](/usc/5/8445.md), respectively, based on the [service](/usc/5/8401.md?p=26) of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) to exceed the amount which would be payable to a widow or widower of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under such [section 8442](/usc/5/8442.md) (determined without regard to any reduction to provide for an annuity under such [section 8445](/usc/5/8445.md)); and
    - (B) shall not be effective, in the case of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who is then married, unless it is made with the spouse’s written consent.

    The [Office](/usc/5/8401.md?p=24) shall by regulation provide that [subparagraph (B)](#b-3-B) may be waived for either of the reasons set forth in [section 8416(a)(2)](/usc/5/8416.md?p=a-2).


# §8418. Survivor elections; deposit; offsets

- (a)
  - (1) An individual who makes an election under subsection [(b)](/usc/5/8416.md?p=b) or [(c)](/usc/5/8416.md?p=c) of section 8416 or [section 8417(b)](/usc/5/8417.md?p=b) which is required to be made within 2 years after the date of a prescribed event shall deposit into the [Fund](/usc/5/8401.md?p=6) an amount determined by the [Office](/usc/5/8401.md?p=24) (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)](/usc/5/8416.md?p=b), since the date the previous reduction in the annuity of such individual was terminated under paragraph [(1)](/usc/5/8419.md?p=b-1) or [(2)](/usc/5/8419.md?p=b-2) of section 8419(b)), plus interest.
  - (2) Interest under [paragraph (1)](#a-1) shall be computed at the rate of 6 percent a year.
- (b) The [Office](/usc/5/8401.md?p=24) shall, by regulation, provide for payment of the deposit required under [subsection (a)](#a) by a reduction in the annuity of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20). 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)](#a), except that the total reductions in the annuity of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) to pay deposits required by this section shall not exceed 25 percent of the annuity computed under [section 8415](/usc/5/8415.md) or [section 8452](/usc/5/8452.md), including adjustments under [section 8462](/usc/5/8462.md). The reduction required by this subsection, which shall be effective at the same time as the election under section [8416(b)](/usc/5/8416.md?p=b) and [(c)](/usc/5/8416.md?p=c) or [section 8417(b)](/usc/5/8417.md?p=b), shall be permanent and unaffected by any future termination of the marriage or the entitlement of the [former spouse](/usc/5/8401.md?p=12). Such reduction shall be independent of and in addition to the reduction required under section [8416(b)](/usc/5/8416.md?p=b) and [(c)](/usc/5/8416.md?p=c) or [section 8417(b)](/usc/5/8417.md?p=b).
- (c) Subsections [(a)](#a) and [(b)](#b) shall not apply if—
  - (1) the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) makes an election under section [8416(b)](/usc/5/8416.md?p=b) or [(c)](/usc/5/8416.md?p=c) after having made an election under [section 8420](/usc/5/8420.md); and
  - (2) the election under such [section 8420](/usc/5/8420.md) becomes void under subsection [(b)(3)](/usc/5/8420.md) or [(c)(2)](/usc/5/8420.md) of such section 8416.
- (d) The [Office](/usc/5/8401.md?p=24) shall prescribe regulations under which the [survivor](/usc/5/8401.md?p=28) of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may make a deposit under this section.

# §8419. Survivor reductions; computation

- (a)
  - (1) Except as provided in [paragraph (2)](#a-2), the annuity of an [annuitant](/usc/5/8401.md?p=2) computed under [section 8415](/usc/5/8415.md), or under [section 8452](/usc/5/8452.md) (including [subsection (a)(2)](/usc/5/8452.md?p=a-2) of such section, if applicable) or one-half of the annuity, if jointly designated for this purpose by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) and the spouse of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under procedures prescribed by the [Office](/usc/5/8401.md?p=24) of Personnel Management, shall be reduced by 10 percent if a [survivor](/usc/5/8401.md?p=28) annuity, or a combination of [survivor](/usc/5/8401.md?p=28) annuities, under section [8442](/usc/5/8442.md) or [8445](/usc/5/8445.md) (or both) are to be provided for.
  - (2)
    - (A) If no [survivor](/usc/5/8401.md?p=28) annuity under [section 8442](/usc/5/8442.md) is to be provided for, but one or more [survivor](/usc/5/8401.md?p=28) annuities under [section 8445](/usc/5/8445.md) involving a total of less than the entirety of the amount referred to in [subsection (b)(2)](/usc/5/8445.md?p=b-2) of such section are to be provided for, the annuity of the [annuitant](/usc/5/8401.md?p=2) involved (as computed under [section 8415](/usc/5/8415.md), or under [section 8452](/usc/5/8452.md) (including [subsection (a)(2)](/usc/5/8452.md?p=a-2) of such section, if applicable)) or one-half of the annuity, if jointly designated for this purpose by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) and the spouse of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under procedures prescribed by the [Office](/usc/5/8401.md?p=24) of Personnel Management, shall be reduced by an appropriate percentage determined under [subparagraph (B)](#a-2-B).
    - (B) The [Office](/usc/5/8401.md?p=24) 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](/usc/5/8401.md?p=28) annuity for the current spouse of a retired [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), except that an appropriate reduction shall be made thereafter if the spouse is entitled, as a [former spouse](/usc/5/8401.md?p=12), to a [survivor](/usc/5/8401.md?p=28) annuity under [section 8445](/usc/5/8445.md).
  - (2) Any reduction in an annuity for the purpose of providing a [survivor](/usc/5/8401.md?p=28) annuity for a [former spouse](/usc/5/8401.md?p=12) of a retired [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) shall be terminated for each full month after the [former spouse](/usc/5/8401.md?p=12) remarries before reaching age 55 or dies. This reduction shall be replaced by appropriate reductions under [subsection (a)](#a) if the retired [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) has one or more of the following:
    - (A) another [former spouse](/usc/5/8401.md?p=12) who is entitled to a [survivor](/usc/5/8401.md?p=28) annuity under [section 8445](/usc/5/8445.md);
    - (B) a current spouse to whom the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) was married at the time of retirement and with respect to whom a [survivor](/usc/5/8401.md?p=28) annuity was not waived under [section 8416(a)](/usc/5/8416.md?p=a) (or, if waived, with respect to whom an election under [section 8416(d)](/usc/5/8416.md?p=d) has been made); or
    - (C) a current spouse whom the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) married after retirement and with respect to whom an election has been made under subsection [(b)](/usc/5/8416.md?p=b) or [(c)](/usc/5/8416.md?p=c) of section 8416.

# §8420. Insurable interest reductions

- (a)
  - (1) At the time of retiring under section [8412](/usc/5/8412.md), [8413](/usc/5/8413.md), or [8414](/usc/5/8414.md), an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who is found to be in good health by the [Office](/usc/5/8401.md?p=24) may elect to have such [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s annuity (as computed under [section 8415](/usc/5/8415.md)) reduced under [paragraph (2)](#a-2) in order to provide an annuity under [section 8444](/usc/5/8444.md) for an individual having an insurable interest in the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20). Such individual shall be designated by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) in writing.
  - (2) The annuity of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), 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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), an election under this section on behalf of the spouse may be made only if any right of such spouse to a [survivor](/usc/5/8401.md?p=28) annuity based on the [service](/usc/5/8401.md?p=26) of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) is waived in accordance with [section 8416(a)](/usc/5/8416.md?p=a).
  - (2) [Paragraph (1)](#b-1) does not apply in the case of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) if such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) has a [former spouse](/usc/5/8401.md?p=12) who would become entitled to an annuity under [section 8445](/usc/5/8445.md) as a [survivor](/usc/5/8401.md?p=28) of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).

# §8420a. Alternative forms of annuities

- (a) The [Office](/usc/5/8401.md?p=24) shall prescribe regulations under which any [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=26) of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
- (b) Subject to [subsection (c)](#c), the [Office](/usc/5/8401.md?p=24) shall by regulation provide for such alternative forms of annuities as the [Office](/usc/5/8401.md?p=24) considers appropriate, except that among the alternatives offered shall be—
  - (1) an alternative which provides for—
    - (A) payment of the [lump-sum credit](/usc/5/8401.md?p=19) (excluding interest) to the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20); and
    - (B) payment of an annuity to the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) for life; and
  - (2) in the case of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who is married at the time of retirement, an alternative which provides for—
    - (A) payment of the [lump-sum credit](/usc/5/8401.md?p=19) (excluding interest) to the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20); and
    - (B) payment of an annuity to the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) for life, with a [survivor](/usc/5/8401.md?p=28) annuity payable for the life of a surviving spouse.
- (c) Each alternative provided for under [subsection (b)](#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](/usc/5/8401.md?p=19)) 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](/usc/5/8415.md); and
  - (2) the present value of the annuity supplement which would otherwise be provided (if any) under [section 8421](/usc/5/8421.md).
- (d) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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)](/usc/5/8416.md?p=a); or
  - (2) has a [former spouse](/usc/5/8401.md?p=12), shall be ineligible to make an election under this section if the [former spouse](/usc/5/8401.md?p=12) is entitled to benefits under section [8445](/usc/5/8445.md) or [8467](/usc/5/8467.md) (based on the [service](/usc/5/8401.md?p=26) of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) under the terms of a decree of divorce or annulment, or a [court](/usc/5/8401.md?p=7) order or [court](/usc/5/8401.md?p=7)-approved property settlement incident to any such decree, with respect to which the [Office](/usc/5/8401.md?p=24) has been duly notified.
- (e) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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)](/usc/5/8416.md?p=d), subject to the deposit requirement thereunder.

# §8421. Annuity supplement

- (a)
  - (1) Subject to [paragraph (3)](#a-3), an individual shall, if and while entitled to an annuity under subsection [(a)](/usc/5/8412.md?p=a), [(b)](/usc/5/8412.md?p=b), [(d)(1)](/usc/5/8412.md?p=d-1), or [(e)](/usc/5/8412.md) of section 8412, or under [section 8414(c)](/usc/5/8414.md?p=c), also be entitled to an annuity supplement under this section.
  - (2) Subject to [paragraph (3)](#a-3), an individual shall, if and while entitled to an annuity under [section 8412(f)](/usc/5/8412.md?p=f), or under subsection [(a)](/usc/5/8414.md?p=a) or [(b)](/usc/5/8414.md?p=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)](/usc/5/8412.md?p=h).
  - (3)
    - (A) An individual whose entitlement to an annuity under section [8412](/usc/5/8412.md) or [8414](/usc/5/8414.md) 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](/usc/5/8401.md?p=2) under this section for any month shall be equal to the product of—
    - (A) an amount determined under [paragraph (2)](#b-2), multiplied by
    - (B) a fraction, as described in [paragraph (3)](#b-3).
  - (2) The amount under this paragraph for an [annuitant](/usc/5/8401.md?p=2) is an amount equal to the old-age insurance benefit which would be payable to such [annuitant](/usc/5/8401.md?p=2) 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](/usc/5/8401.md?p=2) 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](/usc/5/8401.md?p=2)’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](/usc/5/8401.md?p=2). 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](#b-4-A)) shall not include years beginning with the year in which such [annuitant](/usc/5/8401.md?p=2)’s entitlement to any payment under this section commences, and—
    - (A) only [basic pay](/usc/5/8401.md?p=4) for [service](#b-4-C) performed (if any) shall be taken into [account](/usc/5/8401.md?p=1) in computing the total wages and self-employment income of the [annuitant](/usc/5/8401.md?p=2) for a [benefit computation year](#b-4-A);
    - (B) for a [benefit computation year](#b-4-A) which commences after the date of the separation with respect to which entitlement to the [annuitant](/usc/5/8401.md?p=2)’s annuity under this subchapter is based and before the date as of which such [annuitant](/usc/5/8401.md?p=2) is treated, under the preceding sentence, to have attained age 62, the total wages and self-employment income of such [annuitant](/usc/5/8401.md?p=2) for such year shall be deemed to be zero; and
    - (C) for a [benefit computation year](#b-4-A) after age 21 which precedes the separation referred to in [subparagraph (B)](#b-2-B), and during which the individual did not perform a full year of [service](#b-4-C), the total wages and self-employment income of such [annuitant](/usc/5/8401.md?p=2) for such year shall be deemed to have been an amount equal to the product of—
      - (i) the [average total wages of all workers](#b-4-B) for that year, multiplied by
      - (ii) a fraction—
        - (I) the numerator of which is the total [basic pay](/usc/5/8401.md?p=4) of the individual for [service](#b-4-C) performed in the first year thereafter in which such individual performed a full year of [service](#b-4-C); and
        - (II) the denominator of which is the [average total wages of all workers](#b-4-B) for the year referred to in [subclause (I)](#b-2-C-ii-I).
  - (3) The fraction under this paragraph for any [annuitant](/usc/5/8401.md?p=2) is a fraction—
    - (A) the numerator of which is the [annuitant](/usc/5/8401.md?p=2)’s total years of [service](#b-4-C) (rounding a fraction to the nearest whole number, with ½ being rounded to the next higher number), not to exceed the number under [subparagraph (B)](#b-3-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](/usc/5/8401.md?p=31).
- (c) An amount under this section shall, for purposes of [section 8467](/usc/5/8467.md), be treated in the same way as an amount computed under [section 8415](/usc/5/8415.md).

# §8421a. Reductions on account of earnings from work performed while entitled to an annuity supplement

- (a) Except as provided in [subsection (c)](#c), the amount of the annuity supplement to which an individual is entitled under [section 8421](/usc/5/8421.md) for any month (determined without regard to [subsection (c)](/usc/5/8421.md?p=c) of such section) shall be reduced by the amount of any excess [earnings](/usc/5/8401.md?p=10) of such individual which are required to be charged to such supplement for such month, as determined under [subsection (b)](#b).
- (b) The amount of an individual’s excess [earnings](/usc/5/8401.md?p=10) shall be charged to months as follows:
  - (1)
    - (A) There shall be charged to each month of a year under [subsection (a)](#a) an amount equal to the individual’s excess [earnings](/usc/5/8401.md?p=10) (as determined under [paragraph (2)](#b-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-3)).
    - (B) Notwithstanding [subparagraph (A)](#b-1-A), the amount charged to a month under [subsection (a)](#a) may not exceed the amount of the annuity supplement to which the individual is entitled under [section 8421](/usc/5/8421.md) for such month (determined without regard to [subsection (c)](/usc/5/8421.md?p=c) of such section).
  - (2) The excess [earnings](/usc/5/8401.md?p=10) based on which reductions under [subsection (a)](#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](/usc/5/8401.md?p=10) 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](/usc/5/8421.md) (determined without regard to [subsection (c)](/usc/5/8421.md?p=c) of such section, and without regard to this section).
  - (3)
    - (A) Subject to [subparagraph (B)](#b-3-B), the number of an individual’s supplement entitlement months for a year shall be 12.
    - (B) The number determined under [subparagraph (A)](#b-3-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)](/usc/5/8421.md?p=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)](#b-4-B), the “[earnings](/usc/5/8401.md?p=10)” 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](/usc/5/8401.md?p=10) of any individual, only [earnings](/usc/5/8401.md?p=10) attributable to periods during which such individual was entitled to an annuity supplement under [section 8421](/usc/5/8421.md) shall be considered; and
      - (ii) any [earnings](/usc/5/8401.md?p=10) attributable to a period before attaining the applicable retirement age under [section 8412(h)](/usc/5/8412.md?p=h) shall not be considered in determining the excess [earnings](/usc/5/8401.md?p=10) of an individual who retires under section [8412(d)(1)](/usc/5/8412.md?p=d-1) or [(e)](/usc/5/8412.md), or [section 8414(c)](/usc/5/8414.md?p=c).
  - (5) Notwithstanding [paragraphs (1) through (4)](#b-1..b-4), the reduction required by [subsection (a)](#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](/usc/5/8401.md?p=10) were earned.
- (c) This section shall not apply to an individual described in [section 8412(e)](/usc/5/8412.md?p=e) during any period in which the individual, after separating from the [service](/usc/5/8401.md?p=26) as described in that section, is employed as an—
  - (1) air traffic control instructor, or supervisor thereof, under contract with the Federal Aviation Administration, including an instructor or supervisor working at an on-site facility (such as an airport); or
  - (2) [air traffic controller](/usc/5/8401.md?p=35) pursuant to a contract made with the Secretary of Transportation under [section 47124 of title 49](/usc/49/47124.md).
- (d) The [Office](/usc/5/8401.md?p=24) shall prescribe regulations under which this section shall be applied in the case of a reemployed [annuitant](/usc/5/8401.md?p=2).

# §8422. Deductions from pay; contributions for other service; deposits

- (a)
  - (1) The employing [agency](/usc/5/500.md?p=a-1) shall deduct and withhold from [basic pay](/usc/5/8401.md?p=4) of each [employee](/usc/5/8401.md?p=11) and [Member](/usc/5/8401.md?p=20) a percentage of [basic pay](/usc/5/8401.md?p=4) determined in accordance with [paragraph (2)](#a-2).
  - (2) The percentage to be deducted and withheld from [basic pay](/usc/5/8401.md?p=4) for any pay period shall be equal to—
    - (A) the applicable percentage under [paragraph (3)](#a-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](/usc/5/8401.md?p=28), and disability insurance).
  - (3)
    - (A) The applicable percentage under this paragraph for civilian [service](/usc/5/8401.md?p=26) by [employees](/usc/5/8401.md?p=11) or [Members](/usc/5/8401.md?p=20) other than [revised annuity employees](/usc/5/8401.md?p=37) or [further revised annuity employees](/usc/5/8401.md?p=38) shall be as follows:

      |  |  |  |
      | --- | --- | --- |
      | [Employee](/usc/5/8401.md?p=11) | 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 employee](/usc/5/5531.md?p=7) | 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. |
      |  | 7.5 | After December 31, 2000. |
      | [Member](/usc/5/8401.md?p=20) | 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 officer](/usc/5/8401.md?p=17), [firefighter](/usc/5/8401.md?p=14), [member](/usc/5/8401.md?p=20) of the Capitol Police, [member](/usc/5/8401.md?p=20) of the Supreme [Court](/usc/5/8401.md?p=7) Police, or [air traffic controller](/usc/5/8401.md?p=35) | 7.5<br>7.75<br>7.9<br>7.5 | January 1, 1987, to December 31, 1998.<br>January 1, 1999, to December 31, 1999.<br>January 1, 2000, to December 31, 2000.<br>After December 31, 2000. |
      | [Nuclear materials courier](/usc/5/8401.md?p=33) | 7 | January 1, 1987, to 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. |
      | [Customs and border protection officer](/usc/5/8401.md?p=36) | 7.5 | After June 29, 2008. |

    - (B) The applicable percentage under this paragraph for civilian [service](/usc/5/8401.md?p=26) by [revised annuity employees](/usc/5/8401.md?p=37) shall be as follows:

      |  |  |  |
      | --- | --- | --- |
      | [Employee](/usc/5/8401.md?p=11) | 9.3 | After December 31, 2012. |
      | [Congressional employee](/usc/5/5531.md?p=7) | 9.3 | After December 31, 2012. |
      | [Member](/usc/5/8401.md?p=20) | 9.3 | After December 31, 2012. |
      | [Law enforcement officer](/usc/5/8401.md?p=17), [firefighter](/usc/5/8401.md?p=14), [member](/usc/5/8401.md?p=20) of the Capitol Police, [member](/usc/5/8401.md?p=20) of the Supreme [Court](/usc/5/8401.md?p=7) Police, or [air traffic controller](/usc/5/8401.md?p=35) | 9.8 | After December 31, 2012. |
      | [Nuclear materials courier](/usc/5/8401.md?p=33) | 9.8 | After December 31, 2012. |
      | [Customs and border protection officer](/usc/5/8401.md?p=36) | 9.8 | After December 31, 2012. |

    - (C) The applicable percentage under this paragraph for civilian [service](/usc/5/8401.md?p=26) by [further revised annuity employees](/usc/5/8401.md?p=38) shall be as follows:

      |  |  |  |
      | --- | --- | --- |
      | [Employee](/usc/5/8401.md?p=11) | 10.6 | After December 31, 2013. |
      | [Congressional employee](/usc/5/5531.md?p=7) | 10.6 | After December 31, 2013. |
      | [Member](/usc/5/8401.md?p=20) | 10.6 | After December 31, 2013. |
      | [Law enforcement officer](/usc/5/8401.md?p=17), [firefighter](/usc/5/8401.md?p=14), [member](/usc/5/8401.md?p=20) of the Capitol Police, [member](/usc/5/8401.md?p=20) of the Supreme [Court](/usc/5/8401.md?p=7) Police, or [air traffic controller](/usc/5/8401.md?p=35) | 11.1 | After December 31, 2013. |
      | [Nuclear materials courier](/usc/5/8401.md?p=33) | 11.1 | After December 31, 2013. |
      | [Customs and border protection officer](/usc/5/8401.md?p=36) | 11.1 | After December 31, 2013. |

- (b) Each [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) is deemed to consent and agree to the deductions under [subsection (a)](#a). Notwithstanding any law or regulation affecting the pay of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), payment less such deductions is a full and complete discharge and acquittance of all claims and demands for regular [services](/usc/5/8401.md?p=26) 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](/usc/5/8401.md?p=26) of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
- (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](/usc/5/8401.md?p=6) under such procedures as the Secretary of the Treasury may prescribe. Deposits made by an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [survivor](/usc/5/8401.md?p=28) also shall be credited to the [Fund](/usc/5/8401.md?p=6).
- (d)
  - (1) Under such regulations as the [Office](/usc/5/8401.md?p=24) may prescribe, amounts deducted under [subsection (a)](#a) shall be entered on individual retirement records.
  - (2) Deposit may not be required for days of unused sick leave credited under paragraph [(1)](/usc/5/8415.md?p=m-1) or [(2)](/usc/5/8415.md?p=m-2) of section 8415(m).
- (e)
  - (1)
    - (A) Except as provided in [subparagraph (B)](#e-1-B), and subject to [paragraph (6)](#e-6), each [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who has performed [military service](/usc/5/8401.md?p=31) 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](/usc/5/8401.md?p=24) shall issue, to the [agency](/usc/5/500.md?p=a-1) by which the [employee](/usc/5/8401.md?p=11) is employed, or, in the case of a [Member](/usc/5/8401.md?p=20) or a [Congressional employee](/usc/5/5531.md?p=7), 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](/usc/5/8401.md?p=4) paid under [section 204 of title 37](/usc/37/204.md) to the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) for each period of [military service](/usc/5/8401.md?p=31) after December 1956. The amount of such payments shall be based on such evidence of [basic pay](/usc/5/8401.md?p=4) for [military service](/usc/5/8401.md?p=31) as the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may provide, or if the [Office](/usc/5/8401.md?p=24) determines sufficient evidence has not been so provided to adequately determine [basic pay](/usc/5/8401.md?p=4) for [military service](/usc/5/8401.md?p=31), such payment shall be based on estimates of such [basic pay](/usc/5/8401.md?p=4) provided to the [Office](/usc/5/8401.md?p=24) under [paragraph (4)](#e-4).
    - (B) In any case where [military service](/usc/5/8401.md?p=31) interrupts creditable civilian [service](/usc/5/8401.md?p=26) under this subchapter and reemployment pursuant to [chapter 43](/usc/38/chptIII-ch43.md) 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)](#a-1) from [basic pay](/usc/5/8401.md?p=4) during civilian [service](/usc/5/8401.md?p=26) if the [employee](/usc/5/8401.md?p=11) had not performed the period of [military service](/usc/5/8401.md?p=31).
  - (2) Any deposit made under [paragraph (1)](#e-1) more than two years after the later of—
    - (A) January 1, 1987; or
    - (B) the date on which the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) making the deposit first becomes an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) following the period of [military service](/usc/5/8401.md?p=31) 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)](/usc/5/8334.md?p=e).

  - (3) Any payment received by an [agency](/usc/5/500.md?p=a-1), 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](/usc/5/8401.md?p=24) for deposit in the Treasury of the United States to the credit of the [Fund](/usc/5/8401.md?p=6).
  - (4) The Secretary of Defense, the Secretary of Transportation, the Secretary of Commerce, or the Secretary of Health and Human [Services](/usc/5/8401.md?p=26), as appropriate, shall furnish such information to the [Office](/usc/5/8401.md?p=24) as the [Office](/usc/5/8401.md?p=24) may determine to be necessary for the administration of this subsection.
  - (5) For the purpose of [survivor](/usc/5/8401.md?p=28) annuities, deposits authorized by this subsection may also be made by a [survivor](/usc/5/8401.md?p=28) of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
  - (6) The percentage of [basic pay](/usc/5/8401.md?p=4) under [section 204 of title 37](/usc/37/204.md) payable under [paragraph (1)](#e-1), with respect to any period of [military service](/usc/5/8401.md?p=31) 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.
  - (7)
    - (A) In calculating and processing the deposit under [paragraph (1)](#e-1) with respect to an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), if the employing [agency](/usc/5/500.md?p=a-1) of such [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2) makes an administrative error, such employing [agency](/usc/5/500.md?p=a-1) may pay, on behalf of the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), any additional interest assessed due to the administrative error.
    - (B) For purposes of [subparagraph (A)](#e-7-A), the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives, as appropriate, shall be considered the employing [agency](/usc/5/500.md?p=a-1) of a [Member](/usc/5/8401.md?p=20) or [Congressional employee](/usc/5/5531.md?p=7).
    - (C) The [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) of Personnel Management shall issue such regulations as are necessary to carry out this paragraph.
- (f)
  - (1) Each [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who has performed [service](/usc/5/8401.md?p=26) 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,[^1] 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](/usc/5/8401.md?p=24) of Personnel Management shall issue, an amount equal to 3 percent of the readjustment allowance paid to the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under part A, B,[^1] or C of title I of the Domestic Volunteer Service Act of 1973, for each period of [service](/usc/5/8401.md?p=26) as such a volunteer or volunteer leader. This paragraph shall be subject to [paragraph (4)](#f-4).
  - (2) Any deposit made under [paragraph (1)](#f-1) more than 2 years after the later of—
    - (A) October 1, 1993, or
    - (B) the date on which the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) making the deposit first becomes an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20),

    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)](/usc/5/8334.md?p=e).

  - (3) The [Director](/usc/5/8401.md?p=8) of the Peace Corps and the Chief Executive Officer of the Corporation for National and Community [Service](/usc/5/8401.md?p=26) shall furnish such information to the [Office](/usc/5/8401.md?p=24) of Personnel Management as the [Office](/usc/5/8401.md?p=24) 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)](#f-1), with respect to any period of volunteer [service](/usc/5/8401.md?p=26) 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.
  - (5)
    - (A) In calculating and processing the deposit under [paragraph (1)](#f-1) with respect to an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), if an employing [agency](/usc/5/500.md?p=a-1) of such [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2) makes an administrative error that causes additional interest assessed to accrue on the deposit, the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2)’s employing [agency](/usc/5/500.md?p=a-1) may pay, on behalf of the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), any additional interest assessed due to the administrative error.
    - (B) In calculating and processing the deposit under [paragraph (1)](#f-1) with respect to an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), if the [Office](/usc/5/8401.md?p=24) of Personnel Management makes an administrative error that causes additional interest assessed to accrue on the deposit, the [Office](/usc/5/8401.md?p=24) of Personnel Management may pay, on behalf of the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), any additional interest assessed due to the administrative error.
    - (C) For purposes of [subparagraph (A)](#f-5-A), the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives, as appropriate, shall be considered the employing [agency](/usc/5/500.md?p=a-1) of a [Member](/usc/5/8401.md?p=20) or [congressional employee](/usc/5/5531.md?p=7).
    - (D) The [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) of Personnel Management shall issue such regulations as are necessary to carry out this paragraph.
- (g) A [Member](/usc/5/8401.md?p=20) who has served in a [position](/usc/5/5531.md?p=2) in the [executive branch](/usc/5/13101.md?p=4) for which the rate of [basic pay](/usc/5/8401.md?p=4) was reduced for the duration of the [service](/usc/5/8401.md?p=26) of the [Member](/usc/5/8401.md?p=20) to remove the impediment to the appointment of the [Member](/usc/5/8401.md?p=20) imposed by article I, section 6, clause 2 of the Constitution, or the [survivor](/usc/5/8401.md?p=28) of such a [Member](/usc/5/8401.md?p=20), may deposit to the credit of the [Fund](/usc/5/8401.md?p=6) an amount equal to the difference between the amount deducted from the [basic pay](/usc/5/8401.md?p=4) of the [Member](/usc/5/8401.md?p=20) during that period of [service](/usc/5/8401.md?p=26) and the amount that would have been deducted if the rate of [basic pay](/usc/5/8401.md?p=4) which would otherwise have been in effect during that period had been in effect, plus interest computed under [section 8334(e)](/usc/5/8334.md?p=e).
- (h) No deposit may be made with respect to [service](/usc/5/8401.md?p=26) credited under [section 8411(b)(6)](/usc/5/8411.md?p=b-6).
- (i)
  - (1) Each [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who has received a refund of retirement deductions under this or any other retirement [system](/usc/5/8401.md?p=29) established for [employees](/usc/5/8401.md?p=11) of the [Government](/usc/5/8401.md?p=15) covering [service](/usc/5/8401.md?p=26) for which such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may be allowed credit under this chapter may deposit the amount received, with interest. Credit may not be allowed for the [service](/usc/5/8401.md?p=26) covered by the refund until the deposit is made.
  - (2) Interest under this subsection shall be computed in accordance with paragraphs [(2)](/usc/5/8334.md?p=e-2) and [(3)](/usc/5/8334.md?p=e-3) of section 8334(e) and regulations prescribed by the [Office](/usc/5/8401.md?p=24). The option under the third sentence of [section 8334(e)(2)](/usc/5/8334.md?p=e-2) to make a deposit in one or more installments shall apply to deposits under this subsection.
  - (3) For the purpose of [survivor](/usc/5/8401.md?p=28) annuities, deposits authorized by this subsection may also be made by a [survivor](/usc/5/8401.md?p=28) of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).

# §8423. Government contributions

- (a)
  - (1) Each employing [agency](/usc/5/500.md?p=a-1) having any [employees](/usc/5/8401.md?p=11) or [Members](/usc/5/8401.md?p=20) subject to [section 8422(a)](/usc/5/8422.md?p=a) shall contribute to the [Fund](/usc/5/8401.md?p=6) an amount equal to the sum of—
    - (A) the product of—
      - (i) the [normal-cost percentage](/usc/5/8401.md?p=23), as determined for [employees](/usc/5/8401.md?p=11) (other than [employees](/usc/5/8401.md?p=11) covered by [subparagraph (B)](#a-1-B)), multiplied by
      - (ii) the aggregate amount of [basic pay](/usc/5/8401.md?p=4) payable by the [agency](/usc/5/500.md?p=a-1), for the period involved, to [employees](/usc/5/8401.md?p=11) (under [clause (i)](#a-1-A-i)) who are within such [agency](/usc/5/500.md?p=a-1); and
    - (B) the product of—
      - (i) the [normal-cost percentage](/usc/5/8401.md?p=23), as determined for [Members](/usc/5/8401.md?p=20), [Congressional employees](/usc/5/5531.md?p=7) (including a separate [normal-cost percentage](/usc/5/8401.md?p=23) for [Congressional employees](/usc/5/5531.md?p=7) that are [members](/usc/5/8401.md?p=20) of the Capitol Police covered under [subsection (d)](/usc/5/8412.md?p=d) of section 8412 and [subsection (c)](/usc/5/8425.md?p=c) of section 8425), [law enforcement officers](/usc/5/8401.md?p=17), [members](/usc/5/8401.md?p=20) of the Supreme [Court](/usc/5/8401.md?p=7) Police, [firefighters](/usc/5/8401.md?p=14), [nuclear materials couriers](/usc/5/8401.md?p=33), [customs and border protection officers](/usc/5/8401.md?p=36), [air traffic controllers](/usc/5/8401.md?p=35), military reserve technicians, and [employees](/usc/5/8401.md?p=11) under sections 302 and 303 of the Central Intelligence [Agency](/usc/5/500.md?p=a-1) Retirement Act, multiplied by
      - (ii) the aggregate amount of [basic pay](/usc/5/8401.md?p=4) payable by the [agency](/usc/5/500.md?p=a-1), for the period involved, to [employees](/usc/5/8401.md?p=11) and [Members](/usc/5/8401.md?p=20) (under [clause (i)](#a-1-B-i)) who are within such [agency](/usc/5/500.md?p=a-1).
  - (2)
    - (A) In determining any [normal-cost percentage](/usc/5/8401.md?p=23) to be applied under this subsection, amounts provided for under [section 8422](/usc/5/8422.md) shall be taken into [account](/usc/5/8401.md?p=1).
    - (B)
      - (i) Subject to clauses [(ii)](#a-2-B-ii) and [(iii)](#a-2-B-iii), for purposes of any period in any year beginning after December 31, 2013, the [normal-cost percentage](/usc/5/8401.md?p=23) under this subsection shall be determined and applied as if section 401(b) of the Bipartisan Budget Act of 2013 had not been enacted.
      - (ii) Any contributions under this subsection in excess of the amounts which (but for [clause (i)](#a-2-B-i)) would otherwise have been payable shall be applied toward reducing the unfunded liability of the Civil [Service](/usc/5/8401.md?p=26) Retirement [System](/usc/5/8401.md?p=29).
      - (iii) After the unfunded liability of the Civil [Service](/usc/5/8401.md?p=26) Retirement [System](/usc/5/8401.md?p=29) has been eliminated, as determined by the [Office](/usc/5/8401.md?p=24), [Government](/usc/5/8401.md?p=15) contributions under this subsection shall be determined and made disregarding this subparagraph.
      - (iv) The preceding provisions of this subparagraph shall be disregarded for purposes of determining the contributions payable by the United States Postal [Service](/usc/5/8401.md?p=26) and the Postal Regulatory Commission.
  - (3) Contributions under this subsection shall be paid—
    - (A) in the case of [law enforcement officers](/usc/5/8401.md?p=17), [members](/usc/5/8401.md?p=20) of the Supreme [Court](/usc/5/8401.md?p=7) Police, [firefighters](/usc/5/8401.md?p=14), [nuclear materials couriers](/usc/5/8401.md?p=33), [customs and border protection officers](/usc/5/8401.md?p=36), [air traffic controllers](/usc/5/8401.md?p=35), military reserve technicians, and other [employees](/usc/5/8401.md?p=11), from the appropriation or [fund](/usc/5/8401.md?p=6) used to pay such [law enforcement officers](/usc/5/8401.md?p=17), [members](/usc/5/8401.md?p=20) of the Supreme [Court](/usc/5/8401.md?p=7) Police, [firefighters](/usc/5/8401.md?p=14), [nuclear materials couriers](/usc/5/8401.md?p=33), [customs and border protection officers](/usc/5/8401.md?p=36), [air traffic controllers](/usc/5/8401.md?p=35), military reserve technicians, or other [employees](/usc/5/8401.md?p=11), respectively;
    - (B) in the case of elected officials, from an appropriation or [fund](/usc/5/8401.md?p=6) available for payment of other salaries of the same [office](/usc/5/8401.md?p=24) or establishment; and
    - (C) in the case of [employees](/usc/5/8401.md?p=11) of the legislative branch paid by the Chief Administrative Officer of the House of Representatives, from the applicable [accounts](/usc/5/8401.md?p=1) of the House of Representatives.
  - (4) A contribution to the [Fund](/usc/5/8401.md?p=6) under this subsection shall be deposited under such procedures as the Comptroller General of the United States may prescribe.
- (b)
  - (1) The [Office](/usc/5/8401.md?p=24) shall compute—
    - (A) the amount of the [supplemental liability](/usc/5/8401.md?p=27) of the [Fund](/usc/5/8401.md?p=6) with respect to individuals other than those to whom [subparagraph (B)](#b-1-B) relates, and
    - (B) the amount of the [supplemental liability](/usc/5/8401.md?p=27) of the [Fund](/usc/5/8401.md?p=6) with respect to current or former [employees](/usc/5/8401.md?p=11) of the United States Postal [Service](/usc/5/8401.md?p=26) (and the Postal Regulatory Commission) and their [survivors](/usc/5/8401.md?p=28);

    as of the close of each fiscal year beginning after September 30, 1987.

  - (2) The amount of any [supplemental liability](/usc/5/8401.md?p=27) computed under paragraph [(1)(A)](#b-1-A) or [(1)(B)](#b-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](/usc/5/8401.md?p=29).
  - (3) At the end of each fiscal year, the [Office](/usc/5/8401.md?p=24) 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)](#b-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)](#b-1-B).
  - (4)
    - (A) Before closing the [accounts](/usc/5/8401.md?p=1) for a fiscal year, the Secretary of the Treasury shall credit to the [Fund](/usc/5/8401.md?p=6), as a [Government](/usc/5/8401.md?p=15) contribution, out of any money in the Treasury of the United States not otherwise appropriated, the amount under [paragraph (3)(A)](#b-3-A) for such year.
    - (B) Upon receiving notification under [paragraph (3)(B)](#b-3-B), the United States Postal [Service](/usc/5/8401.md?p=26) shall pay the amount specified in such notification to the [Fund](/usc/5/8401.md?p=6).
  - (5) For the purpose of carrying out [paragraph (1)](#b-1) with respect to any fiscal year, the [Office](/usc/5/8401.md?p=24) may—
    - (A) require the [Board](/usc/5/8401.md?p=5) of Actuaries of the Civil [Service](/usc/5/8401.md?p=26) Retirement [System](/usc/5/8401.md?p=29) to make actuarial determinations and valuations, make recommendations, and maintain records in the same manner as provided in [section 8347(f)](/usc/5/8347.md?p=f); and
    - (B) use the latest actuarial determinations and valuations made by such [Board](/usc/5/8401.md?p=5) of Actuaries.
- (c) Under regulations prescribed by the [Office](/usc/5/8401.md?p=24), the head of an [agency](/usc/5/500.md?p=a-1) may request reconsideration of any amount determined to be payable with respect to such [agency](/usc/5/500.md?p=a-1) under subsection [(a)](#a) or [(b)](#b). Any such request shall be referred to the [Board](/usc/5/8401.md?p=5) of Actuaries of the Civil [Service](/usc/5/8401.md?p=26) Retirement [System](/usc/5/8401.md?p=29). The [Board](/usc/5/8401.md?p=5) of Actuaries shall review the computations of the [Office](/usc/5/8401.md?p=24) and may make any adjustment with respect to any such amount which the [Board](/usc/5/8401.md?p=5) determines appropriate. A determination by the [Board](/usc/5/8401.md?p=5) of Actuaries under this subsection shall be final.

# §8424. Lump-sum benefits; designation of beneficiary; order of precedence

- (a) Subject to [subsection (b)](#b), an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who—
  - (1)
    - (A) is separated from the [service](/usc/5/8401.md?p=26) for at least 31 consecutive days; or
    - (B) is transferred to a [position](/usc/5/5531.md?p=2) in which the individual is not subject to this chapter and remains in such a [position](/usc/5/5531.md?p=2) for at least 31 consecutive days;
  - (2) files an application with the [Office](/usc/5/8401.md?p=24) for payment of the [lump-sum credit](/usc/5/8401.md?p=19);
  - (3) is not reemployed in a [position](/usc/5/5531.md?p=2) 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](/usc/5/8401.md?p=19). Except as provided in [section 8420a](/usc/5/8420a.md), payment of the [lump-sum credit](/usc/5/8401.md?p=19) to an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) voids all annuity rights under this subchapter, and subchapters IV and V of this chapter, based on the [service](/usc/5/8401.md?p=26) on which the [lump-sum credit](/usc/5/8401.md?p=19) is based, until the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) is reemployed in the [service](/usc/5/8401.md?p=26) subject to this chapter.

- (b)
  - (1)
    - (A) Payment of the [lump-sum credit](/usc/5/8401.md?p=19) under [subsection (a)](#a) may be made only if the spouse, if any, and any [former spouse](/usc/5/8401.md?p=12) of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) are notified of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)’s application.
    - (B) The [Office](/usc/5/8401.md?p=24) shall prescribe regulations under which the [lump-sum credit](/usc/5/8401.md?p=19) shall not be paid without the consent of a spouse or [former spouse](/usc/5/8401.md?p=12) of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) where the [Office](/usc/5/8401.md?p=24) has received such additional information or documentation as the [Office](/usc/5/8401.md?p=24) may require that—
      - (i) a [court](/usc/5/8401.md?p=7) order bars payment of the [lump-sum credit](/usc/5/8401.md?p=19) in order to preserve the [court](/usc/5/8401.md?p=7)’s ability to award an annuity under section [8445](/usc/5/8445.md) or [8467](/usc/5/8467.md); or
      - (ii) payment of the [lump-sum credit](/usc/5/8401.md?p=19) would extinguish the entitlement of the spouse or [former spouse](/usc/5/8401.md?p=12), under a [court](/usc/5/8401.md?p=7) order on file with the [Office](/usc/5/8401.md?p=24), to a [survivor](/usc/5/8401.md?p=28) annuity under [section 8445](/usc/5/8445.md) or to any portion of an annuity under [section 8467](/usc/5/8467.md).
  - (2)
    - (A) Notification of a spouse or [former spouse](/usc/5/8401.md?p=12) under this subsection shall be made in accordance with such requirements as the [Office](/usc/5/8401.md?p=24) shall by regulation prescribe.
    - (B) Under the regulations, the [Office](/usc/5/8401.md?p=24) may provide that [paragraph (1)(A)](#b-1-A) may be waived with respect to a spouse or [former spouse](/usc/5/8401.md?p=12) if the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) establishes to the satisfaction of the [Office](/usc/5/8401.md?p=24) that the whereabouts of such spouse or [former spouse](/usc/5/8401.md?p=12) cannot be determined.
  - (3) The [Office](/usc/5/8401.md?p=24) shall prescribe regulations under which this subsection shall be applied in any case in which the [Office](/usc/5/8401.md?p=24) receives two or more orders or decrees referred to in [paragraph (1)(B)(i)](#b-1-B-i).
- (c) Under regulations prescribed by the [Office](/usc/5/8401.md?p=24), an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), or a former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), may designate one or more [beneficiaries](/usc/5/8471.md?p=1) under this section.
- (d) Lump-sum benefits authorized by [subsections (e) through (g)](#e..g) shall be paid to the individual or individuals surviving the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8471.md?p=1) or [beneficiaries](/usc/5/8471.md?p=1) designated by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) in a signed and witnessed writing received in the [Office](/usc/5/8401.md?p=24) before the death of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20). For this purpose, a designation, change, or cancellation of [beneficiary](/usc/5/8471.md?p=1) in a will or other document not so executed and filed has no force or effect.

  Second, if there is no designated [beneficiary](/usc/5/8471.md?p=1), to the widow or widower of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).

  Third, if none of the above, to the child or children of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) and descendants of deceased children by representation.

  Fourth, if none of the above, to the parents of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) or the [survivor](/usc/5/8401.md?p=28) of them.

  Fifth, if none of the above, to the duly appointed executor or administrator of the estate of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).

  Sixth, if none of the above, to such other next of kin of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) as the [Office](/usc/5/8401.md?p=24) determines to be entitled under the laws of the domicile of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) at the date of death of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).

  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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), dies—
  - (1) without a [survivor](/usc/5/8401.md?p=28), or
  - (2) with a [survivor](/usc/5/8401.md?p=28) or [survivors](/usc/5/8401.md?p=28) and the right of all [survivors](/usc/5/8401.md?p=28) under subchapter IV terminates before a claim for [survivor](/usc/5/8401.md?p=28) annuity under such subchapter is filed,

  the [lump-sum credit](/usc/5/8401.md?p=19) shall be paid.

- (f) If all annuity rights under this chapter (other than under subchapter III of this chapter) based on the [service](/usc/5/8401.md?p=26) of a deceased [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) terminate before the total annuity paid equals the [lump-sum credit](/usc/5/8401.md?p=19), the difference shall be paid.
- (g) If an [annuitant](/usc/5/8401.md?p=2) 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](/usc/5/8401.md?p=2) or [survivor](/usc/5/8401.md?p=28) shall be paid to that individual. Annuity accrued and unpaid on the death of a [survivor](/usc/5/8401.md?p=28) 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](/usc/5/8401.md?p=28).

  Second, if there is no executor or administrator, payment may be made, after 30 days from the date of death of the [survivor](/usc/5/8401.md?p=28), to such next of kin of the [survivor](/usc/5/8401.md?p=28) as the [Office](/usc/5/8401.md?p=24) determines to be entitled under the laws of the domicile of the [survivor](/usc/5/8401.md?p=28) at the date of death.


# §8425. Mandatory separation

- (a) An air traffic controller who is otherwise eligible for immediate retirement under [section 8412(e)](/usc/5/8412.md?p=e) shall be separated from the [service](/usc/5/8401.md?p=26) on the last day of the month in which that air traffic controller becomes 56 years of age or completes 20 years of [service](/usc/5/8401.md?p=26) 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. For purposes of this subsection, the term “air traffic controller” or “controller” has the meaning given to it under [section 8401(35)(A)](/usc/5/8401.md?p=35-A).
- (b)
  - (1) A [law enforcement officer](/usc/5/8401.md?p=17), [firefighter](/usc/5/8401.md?p=14), [nuclear materials courier](/usc/5/8401.md?p=33), or [customs and border protection officer](/usc/5/8401.md?p=36) who is otherwise eligible for immediate retirement under [section 8412(d)(1)](/usc/5/8412.md?p=d-1) shall be separated from the [service](/usc/5/8401.md?p=26) on the last day of the month in which that [law enforcement officer](/usc/5/8401.md?p=17), [firefighter](/usc/5/8401.md?p=14), [nuclear materials courier](/usc/5/8401.md?p=33), or [customs and border protection officer](/usc/5/8401.md?p=36)[^1] as the case may be, becomes 57 years of age or completes 20 years of [service](/usc/5/8401.md?p=26) if then over that age. If the head of the [agency](/usc/5/500.md?p=a-1) judges that the public interest so requires, that [agency](/usc/5/500.md?p=a-1) head may exempt such an [employee](/usc/5/8401.md?p=11) from automatic separation under this subsection until that [employee](/usc/5/8401.md?p=11) becomes 60 years of age. The employing [office](/usc/5/8401.md?p=24) shall notify the [employee](/usc/5/8401.md?p=11) in writing of the date of separation at least 60 days before that date. Action to separate the [employee](/usc/5/8401.md?p=11) is not effective, without the consent of the [employee](/usc/5/8401.md?p=11), until the last day of the month in which the 60-day notice expires.
  - (2) In the case of [employees](/usc/5/8401.md?p=11) of the Federal Bureau of Investigation, the second sentence of [paragraph (1)](#b-1) shall be applied by substituting “65 years of age” for “60 years of age”. The [authority](/usc/5/7103.md?p=a-6) to grant exemptions in accordance with the preceding sentence shall cease to be available after December 31, 2011.
- (c) A [member](/usc/5/8401.md?p=20) of the Capitol Police who is otherwise eligible for immediate retirement under [section 8412(d)(1)](/usc/5/8412.md?p=d-1) shall be separated from the [service](/usc/5/8401.md?p=26) on the last day of the month in which such [member](/usc/5/8401.md?p=20) becomes 57 years of age or completes 20 years of [service](/usc/5/8401.md?p=26) if then over that age. The Capitol Police [Board](/usc/5/8401.md?p=5), when in its judgment the public interest so requires, may exempt such a [member](/usc/5/8401.md?p=20) from automatic separation under this subsection until that [member](/usc/5/8401.md?p=20) attains an age determined by the [Board](/usc/5/8401.md?p=5), which shall be not less than 57 years of age and not more than 62 years of age. The [Board](/usc/5/8401.md?p=5) shall notify the [member](/usc/5/8401.md?p=20) in writing of the date of separation at least 60 days before that date. Action to separate the [member](/usc/5/8401.md?p=20) is not effective, without the consent of the [member](/usc/5/8401.md?p=20), until the last day of the month in which the 60-day notice expires.
- (d) A [member](/usc/5/8401.md?p=20) of the Supreme [Court](/usc/5/8401.md?p=7) Police who is otherwise eligible for immediate retirement under [section 8412(d)(1)](/usc/5/8412.md?p=d-1) shall be separated from the [service](/usc/5/8401.md?p=26) on the last day of the month in which such [member](/usc/5/8401.md?p=20) becomes 57 years of age or completes 20 years of [service](/usc/5/8401.md?p=26) if then over that age. The Marshal of the Supreme [Court](/usc/5/8401.md?p=7) of the United States, when in his judgment the public interest so requires, may exempt such a [member](/usc/5/8401.md?p=20) from automatic separation under this subsection until that [member](/usc/5/8401.md?p=20) becomes 60 years of age. The Marshal shall notify the [member](/usc/5/8401.md?p=20) in writing of the date of separation at least 60 days before the date. Action to separate the [member](/usc/5/8401.md?p=20) is not effective, without the consent of the [member](/usc/5/8401.md?p=20), until the last day of the month in which the 60-day notice expires.
- (e) The President, by Executive order, may exempt an [employee](/usc/5/8401.md?p=11) (other than a [member](/usc/5/8401.md?p=20) of the Capitol Police or Supreme [Court](/usc/5/8401.md?p=7) Police) from automatic separation under this section if the President determines the public interest so requires.

# §8431. Certain transfers to be treated as a separation

- (a) For purposes of this subchapter, separation from [Government](/usc/5/8401.md?p=15) employment includes a transfer from a [position](/usc/5/5531.md?p=2) that is subject to one of the retirement [systems](/usc/5/8401.md?p=29) described in [subsection (b)](#b) to a [position](/usc/5/5531.md?p=2) that is not subject to any of them.
- (b) The retirement [systems](/usc/5/8401.md?p=29) described in this subsection are—
  - (1) the retirement [system](/usc/5/8401.md?p=29) under this chapter;
  - (2) the retirement [system](/usc/5/8401.md?p=29) under subchapter III of [chapter 83](/usc/5/chptIII-sptG-ch83.md); and
  - (3) any other retirement [system](/usc/5/8401.md?p=29) under which individuals may contribute to the [Thrift Savings Fund](/usc/5/8471.md?p=5) through withholdings from pay.

# §8432. Contributions

- (a)
  - (1) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may contribute to the [Thrift Savings Fund](/usc/5/8471.md?p=5) in any pay period, pursuant to an election under [subsection (b)](#b), an amount not to exceed the maximum percentage of such [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [basic pay](/usc/5/8401.md?p=4) for such pay period allowable under [paragraph (2)](#a-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](/usc/5/8401.md?p=13).
  - (2) The maximum percentage allowable under this paragraph shall be determined in accordance with the following table:

    | In the case of a pay period beginning<br>in fiscal year: | The maximum percentage<br>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](/usc/5/8471.md?p=3) (as defined by section 414(v) of the Internal Revenue Code of 1986) may make such additional contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) as are permitted by such [section 414(v)](/usc/5/414.md) and regulations of the [Executive Director](/usc/5/8401.md?p=13) consistent therewith.
- (b)
  - (1)
    - (A)
      - (i) The [Executive Director](/usc/5/8401.md?p=13) shall prescribe regulations under which [employees](/usc/5/8401.md?p=11) and [Members](/usc/5/8401.md?p=20) may make contributions under [subsection (a)](#a), to modify the amount to be contributed under such subsection, or to terminate such contributions.
      - (ii) An election to make contributions under this paragraph—
        - (I) may be made at any time;
        - (II) shall take effect on the earliest date after the election that is administratively feasible; and
        - (III) shall remain in effect until modified or terminated.
    - (B) The amount to be contributed pursuant to an election under [subparagraph (A)](#b-1-A) shall be the percentage of [basic pay](/usc/5/8401.md?p=4) or amount designated by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
  - (2)
    - (A) The [Executive Director](/usc/5/8401.md?p=13) shall by regulation provide for an [eligible individual](#b-2-D-i) to be automatically enrolled to make contributions under [subsection (a)](#a) at the default percentage of [basic pay](/usc/5/8401.md?p=4).
    - (B) For purposes of this paragraph, the default percentage shall be equal to 3 percent or such other percentage, not less than 2 percent nor more than 5 percent, as the [Board](/usc/5/8401.md?p=5) may prescribe.
    - (C) The regulations shall include provisions under which any individual who would otherwise be automatically enrolled in accordance with [subparagraph (A)](#b-2-A) may—
      - (i) modify the percentage or amount to be contributed pursuant to automatic enrollment, effective not later than the first full pay period following receipt of the election by the appropriate processing entity; or
      - (ii) decline automatic enrollment altogether.
    - (D)
      - (i) Except as provided in [clause (ii)](#b-2-D-ii), for purposes of this paragraph, the term “eligible individual” means any individual who, after any regulations under [subparagraph (A)](#b-2-A) first take effect, is appointed, transferred, or reappointed to a [position](/usc/5/5531.md?p=2) in which that individual becomes eligible to contribute to the [Thrift Savings Fund](/usc/5/8471.md?p=5).
      - (ii)
        - (ii) [^1] Except in the case of a full TSP [member](/usc/5/8401.md?p=20) (as defined in [section 8440e(a)](/usc/5/8440e.md?p=a)), [members](/usc/5/8401.md?p=20) of the [uniformed services](/usc/5/2101.md?p=3) shall not be [eligible individuals](#b-2-D-i) for purposes of this paragraph.
    - (E) Sections [8351(a)(1)](/usc/5/8351.md?p=a-1), [8440a(a)(1)](/usc/5/8440a.md?p=a-1), [8440b(a)(1)](/usc/5/8440b.md?p=a-1), [8440c(a)(1)](/usc/5/8440c.md?p=a-1), [8440d(a)(1)](/usc/5/8440d.md?p=a-1), and [8440e(b)(1)](/usc/5/8440e.md?p=b-1) shall be applied in a manner consistent with the purposes of this paragraph.
    - (F) Notwithstanding any other provision of this paragraph, if a full TSP [member](/usc/5/8401.md?p=20) (as defined in [section 8440e(a)](/usc/5/8440e.md?p=a)) has declined automatic enrollment into the Thrift Savings Plan for a year, the full TSP [member](/usc/5/8401.md?p=20) shall be automatically reenrolled on January 1 of the succeeding year, with contributions under [subsection (a)](#a) at the default percentage of [basic pay](/usc/5/8401.md?p=4).
- (c)
  - (1)
    - (A) At the time prescribed by the [Executive Director](/usc/5/8401.md?p=13), but no later than 12 days after the end of the pay period that includes the first date on which an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may make contributions under [subsection (a)](#a) (without regard to whether the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) has elected to make such contributions during such pay period), and within such time as the [Executive Director](/usc/5/8401.md?p=13) 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](/usc/5/500.md?p=a-1) shall contribute to the [Thrift Savings Fund](/usc/5/8471.md?p=5) for the benefit of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) the amount equal to 1 percent of the [basic pay](/usc/5/8401.md?p=4) of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) for such pay period.
    - (B) In the case of each [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who is an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) on January 1, 1987, and continues as an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) without a break in [service](/usc/5/8401.md?p=26) through April 1, 1987, the employing [agency](/usc/5/500.md?p=a-1) shall contribute to the [Thrift Savings Fund](/usc/5/8471.md?p=5) for the benefit of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) the amount equal to 1 percent of the total [basic pay](/usc/5/8401.md?p=4) paid to such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) for that period of [service](/usc/5/8401.md?p=26).
    - (C) If an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)—
      - (i) is an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) on January 1, 1987;
      - (ii) separates from [Government](/usc/5/8401.md?p=15) employment before April 1, 1987; and
      - (iii) before separation, completes the number of years of civilian [service](/usc/5/8401.md?p=26) applicable to such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under subparagraph [(A)](#g-2-A) or [(B)](#g-2-B) of subsection (g)(2),

      the employing [agency](/usc/5/500.md?p=a-1) shall contribute to the [Thrift Savings Fund](/usc/5/8471.md?p=5) for the benefit of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) the amount equal to 1 percent of the total [basic pay](/usc/5/8401.md?p=4) paid to such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) for [service](/usc/5/8401.md?p=26) performed on or after January 1, 1987, and before the date of the separation.

  - (2)
    - (A) In addition to contributions made under [paragraph (1)](#c-1), the employing [agency](/usc/5/500.md?p=a-1) of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who contributes to the [Thrift Savings Fund](/usc/5/8471.md?p=5) under [subsection (a)](#a) for any pay period shall make a contribution to the [Thrift Savings Fund](/usc/5/8471.md?p=5) for the benefit of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20). The employing [agency](/usc/5/500.md?p=a-1)’s contribution shall be made within such time as the [Executive Director](/usc/5/8401.md?p=13) may prescribe, but no later than 12 days after the end of each such pay period.
    - (B) The amount contributed under [subparagraph (A)](#c-2-A) by an employing [agency](/usc/5/500.md?p=a-1) with respect to a contribution of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) during any pay period shall be the amount equal to the sum of—
      - (i) such portion of the total amount of the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s contribution as does not exceed 3 percent of such [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [basic pay](/usc/5/8401.md?p=4) for such period; and
      - (ii) one-half of such portion of the amount of the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s contribution as exceeds 3 percent, but does not exceed 5 percent, of such [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [basic pay](/usc/5/8401.md?p=4) for such pay period.
    - (C) Notwithstanding [subparagraph (B)](#c-2-B), the amount contributed under [subparagraph (A)](#c-2-A) by an employing [agency](/usc/5/500.md?p=a-1) with respect to any contribution made by an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) during any pay period which begins after the date on which such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) makes an election under subsection (b)(4)[^2] 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](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s contribution as does not exceed 3 percent of such [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [basic pay](/usc/5/8401.md?p=4) for such pay period; and
      - (ii) such portion of the total amount of the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s contributions as exceeds 3 percent, but does not exceed 5 percent, of such [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [basic pay](/usc/5/8401.md?p=4) for such pay period.
  - (3)
    - (A) There shall be contributed to the [Thrift Savings Fund](/usc/5/8471.md?p=5) on behalf of each [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) described in [subparagraph (B)](#c-3-B) the amount determined under [subparagraph (C)](#c-3-C).
    - (B) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) referred to in [subparagraph (A)](#c-3-A) is an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who—
      - (i) is an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) on January 1, 1987;
      - (ii) has creditable [service](/usc/5/8401.md?p=26) described in [section 8411(b)(2) of this title](/usc/5/8411.md?p=b-2); and
      - (iii) has not received a refund of the amount of the retirement deductions made with respect to such [service](/usc/5/8401.md?p=26) under section 204 of the Federal [Employees](/usc/5/8401.md?p=11)’ Retirement Contribution Temporary Adjustment Act of 1983.
    - (C) The amount referred to in [subparagraph (A)](#c-3-A) in the case of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) is equal to the sum of—
      - (i) 1 percent of the total [basic pay](/usc/5/8401.md?p=4) paid to such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) for [service](/usc/5/8401.md?p=26) described in [section 8411(b)(2) of this title](/usc/5/8411.md?p=b-2); and
      - (ii) interest on such amount computed with respect to such [service](/usc/5/8401.md?p=26) in the manner provided in paragraphs (2) and (3) of [section 8334(e) of this title](/usc/5/8334.md?p=e).
    - (D) The Secretary of the Treasury shall credit to the [Thrift Savings Fund](/usc/5/8471.md?p=5), out of any sums in the Treasury not otherwise appropriated, the amounts determined by the [Director](/usc/5/8401.md?p=8) 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)](#c-3) shall be subject to, or taken into [account](/usc/5/8401.md?p=1), for purposes of the preceding sentence.
- (e) The sums required to be contributed to the [Thrift Savings Fund](/usc/5/8471.md?p=5) by an employing [agency](/usc/5/500.md?p=a-1) under [subsection (c)](#c) for the benefit of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) shall be paid from the appropriation or [fund](/usc/5/8401.md?p=6) available to such [agency](/usc/5/500.md?p=a-1) for payment of salaries of the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [office](/usc/5/8401.md?p=24) or establishment. When an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=1) of the House of Representatives the contribution that otherwise would be contributed from the appropriation or [fund](/usc/5/8401.md?p=6) used to pay the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
- (f) Amounts contributed by an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under [subsection (a)](#a) and amounts contributed with respect to such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under [subsection (c)](#c) shall be deposited in the [Thrift Savings Fund](/usc/5/8471.md?p=5) to the credit of that [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [account](/usc/5/8401.md?p=1) in accordance with such procedures as the Secretary of the Treasury may, in consultation with the [Executive Director](/usc/5/8401.md?p=13), 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](/usc/5/8401.md?p=11) under [subsection (c)(1)](#c-1) and all [earnings](/usc/5/8401.md?p=10) attributable to such contributions shall be forfeited if the [employee](/usc/5/8401.md?p=11) separates from [Government](/usc/5/8401.md?p=15) employment before completing—
    - (A) 2 years of civilian [service](/usc/5/8401.md?p=26) in the case of an [employee](/usc/5/8401.md?p=11) who, at the time of separation, is serving in—
      - (i) a [position](/usc/5/5531.md?p=2) in the Senior Executive [Service](/usc/5/8401.md?p=26) as a noncareer appointee (as defined in [section 3132(a)(7) of this title](/usc/5/3132.md?p=a-7));
      - (ii) a [position](/usc/5/5531.md?p=2) listed in section [5312](/usc/5/5312.md), [5313](/usc/5/5313.md), [5314](/usc/5/5314.md), [5315](/usc/5/5315.md), or [5316](/usc/5/5316.md) of this title or a [position](/usc/5/5531.md?p=2) placed in level IV or V of the Executive Schedule under [section 5317 of this title](/usc/5/5317.md); or
      - (iii) a [position](/usc/5/5531.md?p=2) in the [Executive branch](/usc/5/13101.md?p=4) which is excepted from the competitive [service](/usc/5/8401.md?p=26) by the [Office](/usc/5/8401.md?p=24) by reason of the confidential and policy-determining character of the [position](/usc/5/5531.md?p=2);
    - (B) 3 years of civilian [service](/usc/5/8401.md?p=26) in the case of an [employee](/usc/5/8401.md?p=11) who is not serving in a [position](/usc/5/5531.md?p=2) described in [subparagraph (A)](#g-2-A) at the time of separation; or
    - (C) 2 years of [service](/usc/5/8401.md?p=26) in the case of a [member](/usc/5/8401.md?p=20) of the [uniformed services](/usc/5/2101.md?p=3).
  - (3) Contributions made for the benefit of a [Member](/usc/5/8401.md?p=20) or [Congressional employee](/usc/5/5531.md?p=7) under [subsection (c)(1)](#c-1) and all [earnings](/usc/5/8401.md?p=10) attributable to such contributions shall be forfeited if the [Member](/usc/5/8401.md?p=20) or [Congressional employee](/usc/5/5531.md?p=7) separates from [Government](/usc/5/8401.md?p=15) employment before completing 2 years of civilian [service](/usc/5/8401.md?p=26).
  - (4) Nothing in paragraph [(2)](#g-2) or [(3)](#g-3) shall cause the forfeiture of any contributions made for the benefit of an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [Congressional employee](/usc/5/5531.md?p=7) under [subsection (c)(1)](#c-1), or any [earnings](/usc/5/8401.md?p=10) attributable thereto, if such [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [Congressional employee](/usc/5/5531.md?p=7) is not separated from [Government](/usc/5/8401.md?p=15) employment as of date of death.
  - (5) Notwithstanding any other provision of law, contributions made by the [Government](/usc/5/8401.md?p=15) for the benefit of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under [subsection (c)](#c), and all [earnings](/usc/5/8401.md?p=10) attributable to such contributions, shall be forfeited if the annuity of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), or that of a [survivor](/usc/5/8401.md?p=28) or [beneficiary](/usc/5/8471.md?p=1), is forfeited under subchapter II of [chapter 83](/usc/5/chptIII-sptG-ch83.md).
- (h) No transfers or contributions may be made to the [Thrift Savings Fund](/usc/5/8471.md?p=5) except as provided in this chapter or [section 8351 of this title](/usc/5/8351.md).
- (i)
  - (1) This subsection applies to any [employee](/usc/5/8401.md?p=11)—
    - (A) to whom [section 8432b](/usc/5/8432b.md) applies; and
    - (B) who, during the period of such [employee](/usc/5/8401.md?p=11)’s absence from civilian [service](/usc/5/8401.md?p=26) (as referred to in [section 8432b(b)(2)(B)](/usc/5/8432b.md?p=b-2-B))—
      - (i) is eligible to make an election described in [subsection (b)(1)](#b-1); or
      - (ii) would be so eligible but for having either elected to terminate individual contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) within 2 months before commencing [military service](/usc/5/8401.md?p=31) or separated in order to perform [military service](/usc/5/8401.md?p=31).
  - (2) The [Executive Director](/usc/5/8401.md?p=13) shall prescribe regulations to ensure that any [employee](/usc/5/8401.md?p=11) to whom this subsection applies shall, within a reasonable time after being restored or reemployed (in the manner described in [section 8432b(a)(2)](/usc/5/8432b.md?p=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)](#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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may contribute to the [Thrift Savings Fund](/usc/5/8471.md?p=5) an eligible rollover that a [qualified trust](#j-1-B) 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](#j-1-A), the maximum amount transferred to the [Thrift Savings Fund](/usc/5/8471.md?p=5) shall not exceed the amount which would otherwise have been included in the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s gross income for Federal income tax purposes.
  - (3) The [Executive Director](/usc/5/8401.md?p=13) shall prescribe regulations to carry out this subsection.
- (k)
  - (1) Only those [employees](/usc/5/8401.md?p=11) of the Central Intelligence [Agency](/usc/5/500.md?p=a-1) participating in the pilot project required by section 402(b) of the Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107–306; [50 U.S.C. 403–4](/usc/50/403–4.md) note)[^2] and making contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) out of [basic pay](/usc/5/8401.md?p=4) may also contribute (by direct transfer to the [Fund](/usc/5/8401.md?p=6)) any part of bonus pay received by the [employee](/usc/5/8401.md?p=11) as part of the pilot project.
  - (2) Contributions under this subsection are subject to [subsection (d)](#d).
  - (3) For purposes of [subsection (c)](#c), [basic pay](/usc/5/8401.md?p=4) of an [employee](/usc/5/8401.md?p=11) of the Central Intelligence [Agency](/usc/5/500.md?p=a-1) participating in the pilot project referred to in [paragraph (1)](#k-1) shall include bonus pay received by the [employee](/usc/5/8401.md?p=11) as part of the pilot project.

# §8432a. Payment of lost earnings

- (a)
  - (1) The [Executive Director](/usc/5/8401.md?p=13) shall prescribe regulations under which an employing [agency](/usc/5/500.md?p=a-1) shall be required to pay to the [Thrift Savings Fund](/usc/5/8471.md?p=5) amounts representing lost [earnings](/usc/5/8401.md?p=10) resulting from errors (including errors of omission) made by such [agency](/usc/5/500.md?p=a-1) in carrying out this subchapter, subject to [paragraph (2)](#a-2).
  - (2) If the error involves an employing [agency](/usc/5/500.md?p=a-1)’s failure to deduct from [basic pay](/usc/5/8401.md?p=4) contributions (in whole or in part) on behalf of an individual in accordance with [section 8432(a)](/usc/5/8432.md?p=a), the regulations shall not provide for the payment of any lost [earnings](/usc/5/8401.md?p=10) which would be attributable to—
    - (A) the contributions that the [agency](/usc/5/500.md?p=a-1) failed to deduct from [basic pay](/usc/5/8401.md?p=4) in accordance with [section 8432(a)](/usc/5/8432.md?p=a); or
    - (B) any related contributions under [section 8432(c)(2)](/usc/5/8432.md?p=c-2) that the employing [agency](/usc/5/500.md?p=a-1) is not required (by statute or otherwise) to make up.
- (b) The regulations—
  - (1) shall include—
    - (A) procedures for computing lost [earnings](/usc/5/8401.md?p=10); and
    - (B) procedures under which amounts paid to the [Thrift Savings Fund](/usc/5/8471.md?p=5) under this section shall be credited to appropriate [accounts](/usc/5/8401.md?p=1);
  - (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](/usc/5/500.md?p=a-1) to reimburse the [Thrift Savings Fund](/usc/5/8471.md?p=5) for costs incurred by the [Thrift Savings Fund](/usc/5/8471.md?p=5) in implementing corrections of employing [agency](/usc/5/500.md?p=a-1) errors under this section; and
  - (4) may include such other provisions as the [Executive Director](/usc/5/8401.md?p=13) determines appropriate to carry out this section.
- (c) Any amounts required to be paid by an employing [agency](/usc/5/500.md?p=a-1) under this section shall be paid from the appropriation or [fund](/usc/5/8401.md?p=6) available to the employing [agency](/usc/5/500.md?p=a-1) for payment of salaries of the [participant](/usc/5/8471.md?p=3)’s [office](/usc/5/8401.md?p=24) or establishment. If a [participant](/usc/5/8471.md?p=3) 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](/usc/5/8401.md?p=1) of the House of Representatives the amount required to be paid to correct errors relating to the [Thrift Savings Fund](/usc/5/8471.md?p=5) that otherwise would be paid from the appropriation or [fund](/usc/5/8401.md?p=6) used to pay the [participant](/usc/5/8471.md?p=3).

# §8432b. Contributions of persons who perform military service

- (a) This section applies to any [employee](/usc/5/8401.md?p=11) who—
  - (1) separates or enters leave-without-pay status in order to perform [military service](/usc/5/8401.md?p=31); and
  - (2) is subsequently restored to or reemployed in a [position](/usc/5/5531.md?p=2) which is subject to this chapter, pursuant to [chapter 43](/usc/38/chptIII-ch43.md) of title 38.
- (b)
  - (1) Each [employee](/usc/5/8401.md?p=11) to whom this section applies may contribute to the [Thrift Savings Fund](/usc/5/8471.md?p=5), in accordance with this subsection, an amount not to exceed the amount described in [paragraph (2)](#b-2).
  - (2) The maximum amount which an [employee](/usc/5/8401.md?p=11) may contribute under this subsection is equal to—
    - (A) the contributions under [section 8432(a)](/usc/5/8432.md?p=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)](/usc/5/8432.md?p=a) or [8440e](/usc/5/8440e.md) actually made by such [employee](/usc/5/8401.md?p=11) over the period described in [subparagraph (A)](#b-2-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)](/usc/5/8432.md?p=a);
    - (B) shall be made over the period of time specified by the [employee](/usc/5/8401.md?p=11) under [paragraph (4)(B)](#b-4-B); and
    - (C) shall be in addition to any contributions then actually being made under [section 8432(a)](/usc/5/8432.md?p=a).
  - (4) The [Executive Director](/usc/5/8401.md?p=13) shall prescribe the time, form, and manner in which an [employee](/usc/5/8401.md?p=11) may specify—
    - (A) the total amount such [employee](/usc/5/8401.md?p=11) wishes to contribute under this subsection with respect to any particular period referred to in [paragraph (2)(B)](#b-2-B); and
    - (B) the period of time over which the [employee](/usc/5/8401.md?p=11) wishes to make contributions under this subsection.

    The employing [agency](/usc/5/500.md?p=a-1) may place a maximum limit on the period of time referred to in [subparagraph (B)](#b-4-B), which cannot be shorter than two times the period referred to in [paragraph (2)(B)](#b-2-B) and not longer than four times such period.

- (c)
  - (1) If an [employee](/usc/5/8401.md?p=11) makes contributions under [subsection (b)](#b), the employing [agency](/usc/5/500.md?p=a-1) shall make contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) on such [employee](/usc/5/8401.md?p=11)’s behalf—
    - (A) in the same manner as would be required under [section 8432(c)(2)](/usc/5/8432.md?p=c-2) if the [employee](/usc/5/8401.md?p=11) contributions were being made under [section 8432(a)](/usc/5/8432.md?p=a); and
    - (B) disregarding any contributions then actually being made under [section 8432(a)](/usc/5/8432.md?p=a) and any [agency](/usc/5/500.md?p=a-1) contributions relating thereto.
  - (2) An [employee](/usc/5/8401.md?p=11) to whom this section applies is entitled to have contributed to the [Thrift Savings Fund](/usc/5/8471.md?p=5) on such [employee](/usc/5/8401.md?p=11)’s behalf an amount equal to—
    - (A) the total contributions to which that individual would have been entitled under [section 8432(c)(2)](/usc/5/8432.md?p=c-2), based on the amounts contributed by such individual under [section 8440e](/usc/5/8440e.md) (other than under [subsection (d)(2)](#d-2) thereof) with respect to the period referred to in [subsection (b)(2)(B)](#b-2-B), if those amounts had been contributed by such individual under [section 8432(a)](/usc/5/8432.md?p=a); reduced by
    - (B) any contributions actually made on such [employee](/usc/5/8401.md?p=11)’s behalf under [section 8432(c)(2)](/usc/5/8432.md?p=c-2) with respect to the period referred to in [subsection (b)(2)(B)](#b-2-B).
- (d) An [employee](/usc/5/8401.md?p=11) to whom this section applies is entitled to have contributed to the [Thrift Savings Fund](/usc/5/8471.md?p=5) on such [employee](/usc/5/8401.md?p=11)’s behalf an amount equal to—
  - (1) 1 percent of such [employee](/usc/5/8401.md?p=11)’s [basic pay](/usc/5/8401.md?p=4) (as determined under [subsection (e)](#e)) for the period referred to in [subsection (b)(2)(B)](#b-2-B); reduced by
  - (2) any contributions actually made on such [employee](/usc/5/8401.md?p=11)’s behalf under [section 8432(c)(1)](/usc/5/8432.md?p=c-1) with respect to the period referred to in [subsection (b)(2)(B)](#b-2-B).
- (e) For purposes of any computation under this section, an [employee](/usc/5/8401.md?p=11) shall, with respect to the period referred to in [subsection (b)(2)(B)](#b-2-B), be considered to have been paid at the rate which would have been payable over such period had such [employee](/usc/5/8401.md?p=11) remained continuously employed in the [position](/usc/5/5531.md?p=2) which such [employee](/usc/5/8401.md?p=11) last held before separating or entering leave-without-pay status to perform [military service](/usc/5/8401.md?p=31).
- (f)
  - (1) The employing [agency](/usc/5/500.md?p=a-1) may be required to pay lost [earnings](/usc/5/8401.md?p=10) on contributions made pursuant to subsections [(c)](#c) and [(d)](#d). Such [earnings](/usc/5/8401.md?p=10), if required, shall be calculated retroactively to the date the contribution would have been made had the [employee](/usc/5/8401.md?p=11) not separated or entered leave without pay status to perform [military service](/usc/5/8401.md?p=31).
  - (2) Procedures for calculating and crediting the [earnings](/usc/5/8401.md?p=10) payable pursuant to [paragraph (1)](#f-1) shall be prescribed by the [Executive Director](/usc/5/8401.md?p=13).
- (g) Amounts paid under subsection [(c)](#c), [(d)](#d), or [(f)](#f) shall be paid—
  - (1) by the [agency](/usc/5/500.md?p=a-1) to which the [employee](/usc/5/8401.md?p=11) is restored or in which such [employee](/usc/5/8401.md?p=11) is reemployed;
  - (2) from the same source as would be the case under [section 8432(e)](/usc/5/8432.md?p=e) with respect to sums required under [section 8432(c)](/usc/5/8432.md?p=c); and
  - (3) within the time prescribed by the [Executive Director](/usc/5/8401.md?p=13).
- (h)
  - (1) For purposes of [section 8432(g)](/usc/5/8432.md?p=g), in the case of an [employee](/usc/5/8401.md?p=11) to whom this section applies—
    - (A) a separation from civilian [service](/usc/5/8401.md?p=26) in order to perform the [military service](/usc/5/8401.md?p=31) on which the [employee](/usc/5/8401.md?p=11)’s restoration or reemployment rights are based shall be disregarded; and
    - (B) such [employee](/usc/5/8401.md?p=11) shall be credited with a period of civilian [service](/usc/5/8401.md?p=26) equal to the period referred to in [subsection (b)(2)(B)](#b-2-B).
  - (2)
    - (A) An [employee](/usc/5/8401.md?p=11) to whom this section applies may elect, for purposes of subsection [(d)](/usc/5/8433.md?p=d) or [(f)](/usc/5/8433.md?p=f) of section 8433, as the case may be, to have such [employee](/usc/5/8401.md?p=11)’s separation (described in [subsection (a)(1)](#a-1)) treated as if it had never occurred.
    - (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](/usc/5/8401.md?p=13) prescribes.
- (i) The [Executive Director](/usc/5/8401.md?p=13) shall prescribe regulations to carry out this section.

# §8432c. Contributions of certain persons reemployed after service with international organizations

- (a) In this section, the term “covered person” means any person who—
  - (1) transfers from a [position](/usc/5/5531.md?p=2) of employment covered by chapter [83](/usc/5/chptIII-sptG-ch83.md) or [84](/usc/5/chptIII-sptG-ch84.md) or subchapter I or II of [chapter 8](/usc/5/chptI-ch8.md)[^1] of the Foreign Service Act of 1980 to a [position](/usc/5/5531.md?p=2) of employment with an international organization pursuant to [section 3582](/usc/5/3582.md);
  - (2) pursuant to [section 3582](/usc/5/3582.md) elects to retain coverage, rights, and benefits under any [system](/usc/5/8401.md?p=29) 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](/usc/5/8401.md?p=29)’s [fund](/usc/5/8401.md?p=6); and
  - (3) is reemployed pursuant to [section 3582(b)](/usc/5/3582.md?p=b) to a [position](/usc/5/5531.md?p=2) covered by chapter [83](/usc/5/chptIII-sptG-ch83.md) or [84](/usc/5/chptIII-sptG-ch84.md) or subchapter I or II of [chapter 8](/usc/5/chptI-ch8.md)[^1] of the Foreign Service Act of 1980 after separation from the international organization.
- (b)
  - (1) Each [covered person](#a) may contribute to the [Thrift Savings Fund](/usc/5/8471.md?p=5), in accordance with this subsection, an amount not to exceed the amount described in [paragraph (2)](#b-2).
  - (2) The maximum amount which a [covered person](#a) may contribute under [paragraph (1)](#b-1) is equal to—
    - (A) the total amount of all contributions under section [8351(b)(2)](/usc/5/8351.md?p=b-2) or [8432(a)](/usc/5/8432.md?p=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)](#a-1)) and ending on the day before the date of reemployment of the person (as described in [subsection (a)(3)](#a-3)), minus
    - (B) the total amount of all contributions, if any, under section [8351(b)(2)](/usc/5/8351.md?p=b-2) or [8432(a)](/usc/5/8432.md?p=a), as applicable, actually made by the person over the period described in [subparagraph (A)](#b-2-A).
  - (3) Contributions under [paragraph (1)](#b-1)—
    - (A) shall be made at the same time and in the same manner as would any contributions under section [8351(b)(2)](/usc/5/8351.md?p=b-2) or [8432(a)](/usc/5/8432.md?p=a), as applicable;
    - (B) shall be made over the period of time specified by the person under [paragraph (4)(B)](#b-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)](/usc/5/8351.md?p=b-2) or [8432(a)](/usc/5/8432.md?p=a), as applicable.
  - (4) The [Executive Director](/usc/5/8401.md?p=13) shall prescribe the time, form, and manner in which a [covered person](#a) may specify—
    - (A) the total amount the person wishes to contribute with respect to any period described in [paragraph (2)(A)](#b-2-A); and
    - (B) the period of time over which the [covered person](#a) wishes to make contributions under this subsection.
- (c) If a [covered person](#a) who makes contributions under [section 8432(a)](/usc/5/8432.md?p=a) makes contributions under [subsection (b)](#b), the [agency](/usc/5/500.md?p=a-1) employing the person shall make those contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) on the person’s behalf in the same manner as contributions are made for an [employee](/usc/5/8401.md?p=11) described in [section 8432b(a)](/usc/5/8432b.md?p=a) under sections [8432b(c)](/usc/5/8432b.md?p=c), [8432b(d)](/usc/5/8432b.md?p=d), and [8432b(f)](/usc/5/8432b.md?p=f). Amounts paid under this subsection shall be paid in the same manner as amounts are paid under [section 8432b(g)](/usc/5/8432b.md?p=g).
- (d) For purposes of any computation under this section, a [covered person](#a) shall, with respect to the period described in [subsection (b)(2)(A)](#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](/usc/5/5531.md?p=2) that the person last held before transferring to the international organization.
- (e) For purposes of [section 8432(g)](/usc/5/8432.md?p=g), a [covered person](#a) shall be credited with a period of civilian [service](/usc/5/8401.md?p=26) equal to the period beginning on the date of transfer of the person (as described in [subsection (a)(1)](#a-1)) and ending on the day before the date of reemployment of the person (as described in [subsection (a)(3)](#a-3)).
- (f) The [Executive Director](/usc/5/8401.md?p=13) shall prescribe regulations to carry out this section.

# §8432d. Qualified Roth contribution program

- (a) **Definitions.—** For purposes of this section—
  - (1) the term “qualified Roth contribution program” means a program described in paragraph (1) of section 402A(b) of the Internal Revenue Code of 1986 which meets the requirements of paragraph (2) of such section; and
  - (2) the terms “designated Roth contribution” and “elective deferral” have the meanings given such terms in section 402A of the Internal Revenue Code of 1986.
- (b) **Authority To Establish.—** The [Executive Director](/usc/5/8401.md?p=13) shall by regulation provide for the inclusion in the Thrift Savings Plan of a [qualified Roth contribution program](#a-1), under such terms and conditions as the [Board](/usc/5/8401.md?p=5) may prescribe.
- (c) **Required Provisions.—** The regulations under [subsection (b)](#b) shall include—
  - (1) provisions under which an election to make [designated Roth contributions](#a-2) may be made—
    - (A) by any individual who is eligible to make contributions under section [8351](/usc/5/8351.md), [8432(a)](/usc/5/8432.md?p=a), [8440a](/usc/5/8440a.md), [8440b](/usc/5/8440b.md), [8440c](/usc/5/8440c.md), [8440d](/usc/5/8440d.md), or [8440e](/usc/5/8440e.md); and
    - (B) by any individual, not described in [subparagraph (A)](#c-1-A), who is otherwise eligible to make [elective deferrals](#a-2) under the Thrift Savings Plan;
  - (2) any provisions which may, as a result of enactment of this section, be necessary in order to clarify the meaning of any reference to an “[account](/usc/5/8401.md?p=1)” made in section [8432(f)](/usc/5/8432.md?p=f), [8433](/usc/5/8433.md), [8434(d)](/usc/5/8434.md?p=d), [8435](/usc/5/8435.md), [8437](/usc/5/8437.md), or any other provision of law; and
  - (3) any other provisions which may be necessary to carry out this section.

# §8433. Benefits and election of benefits

- (a) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who separates from [Government](/usc/5/8401.md?p=15) employment is entitled to the amount of the balance in the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [account](/usc/5/8401.md?p=1) (except for the portion of such amount forfeited under [section 8432(g) of this title](/usc/5/8432.md?p=g), if any) as provided in this section.
- (b) Subject to [section 8435 of this title](/usc/5/8435.md), any [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who separates from [Government](/usc/5/8401.md?p=15) employment is entitled and may elect to withdraw from the [Thrift Savings Fund](/usc/5/8471.md?p=5) the balance of the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [account](/usc/5/8401.md?p=1) 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)](#b-1..b-3) as the [Executive Director](/usc/5/8401.md?p=13) may prescribe by regulation.
- (c)
  - (1) In addition to the right provided under [subsection (b)](#b) to withdraw the balance of the [account](/usc/5/8401.md?p=1), an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who separates from [Government](/usc/5/8401.md?p=15) [service](/usc/5/8401.md?p=26) may make one or more withdrawals of any amount in the same manner as a single payment is made in accordance with [subsection (b)(2)](#b-2) from the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [account](/usc/5/8401.md?p=1).
  - (2) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may request that the amount withdrawn from the [Thrift Savings Fund](/usc/5/8471.md?p=5) in accordance with [subsection (b)(2)](#b-2) be transferred to an eligible retirement plan.
  - (3) The [Executive Director](/usc/5/8401.md?p=13) shall make each transfer elected under [paragraph (2)](#c-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](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) for whom the transfer is made.
  - (4) A transfer may not be made for an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) under [paragraph (2)](#c-2) until the [Executive Director](/usc/5/8401.md?p=13) receives from that individual the information required by the [Executive Director](/usc/5/8401.md?p=13) specifically to identify the eligible retirement plan or plans to which the transfer is to be made.
  - (5) Withdrawals under this subsection shall be subject to such other limitations or conditions as the [Executive Director](/usc/5/8401.md?p=13) may prescribe by regulation.
- (d)
  - (1) Subject to [paragraph (2)](#d-2) and subsections (a) and (c) of [section 8435 of this title](/usc/5/8435.md), an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may change an election previously made under this subchapter, except that in the case of an election to receive an annuity, a former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may not change an election under this section on or after the date on which an annuity contract is purchased to provide for the annuity elected by the former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
  - (2) A former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may not return a payment that was made pursuant to an election under this section.
- (e)
  - (1) If an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) 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](/usc/5/8434.md), an amount equal to the value of that individual’s [account](/usc/5/8401.md?p=1) (as of death) shall, subject to any decree, order, or agreement referred to in [section 8435(c)(2) of this title](/usc/5/8435.md?p=c-2) be paid in a manner consistent with [section 8424(d) of this title](/usc/5/8424.md?p=d).
  - (2) Notwithstanding [section 8424(d)](/usc/5/8424.md?p=d), if an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) dies and has designated as sole or partial [beneficiary](/usc/5/8471.md?p=1) his or her spouse at the time of death, or, if an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20), dies with no designated [beneficiary](/usc/5/8471.md?p=1) and is survived by a spouse, the spouse may maintain the portion of the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [account](/usc/5/8401.md?p=1) to which the spouse is entitled in accordance with the following terms:
    - (A) Subject to the limitations of [subparagraph (B)](#e-2-B), the spouse shall have the same withdrawal options under [subsection (b)](#b) as the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) were the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) living.
    - (B) The spouse may not make withdrawals under subsection [(g)](#g) or [(h)](#h).
    - (C) The spouse may not make contributions or transfers to the [account](/usc/5/8401.md?p=1).
    - (D) The [account](/usc/5/8401.md?p=1) shall be disbursed upon the death of the surviving spouse. A [beneficiary](/usc/5/8471.md?p=1) or surviving spouse of a deceased spouse who has inherited an [account](/usc/5/8401.md?p=1) is ineligible to maintain the inherited spousal [account](/usc/5/8401.md?p=1).
  - (3) The [Executive Director](/usc/5/8401.md?p=13) shall prescribe regulations to carry out this subsection.
- (f) Notwithstanding [subsection (b)](#b), if an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) separates from [Government](/usc/5/8401.md?p=15) employment, and such [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [nonforfeitable account balance](/usc/5/8401.md?p=32) is less than an amount that the [Executive Director](/usc/5/8401.md?p=13) prescribes by regulation, the [Executive Director](/usc/5/8401.md?p=13) shall pay the [nonforfeitable account balance](/usc/5/8401.md?p=32) to the [participant](/usc/5/8471.md?p=3) in a single payment, unless an election under [section 8432b(h)(2)](/usc/5/8432b.md?p=h-2) is made to treat such separation for purposes of this subsection as if it had never occurred.
- (g)
  - (1) At any time before separation, an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may apply to the [Board](/usc/5/8401.md?p=5) for permission to borrow from the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [account](/usc/5/8401.md?p=1) an amount not exceeding the value of that portion of such [account](/usc/5/8401.md?p=1) which is attributable to contributions made by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20). Before a loan is issued, the [Executive Director](/usc/5/8401.md?p=13) shall provide in writing the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=6) offered by the [Thrift Savings Fund](/usc/5/8471.md?p=5), and any other effect of such loan on the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s final [account](/usc/5/8401.md?p=1) balance.
  - (2) Loans under this subsection shall be available to all [employees](/usc/5/8401.md?p=11) and [Members](/usc/5/8401.md?p=20) on a reasonably equivalent basis, and shall be subject to such other conditions as the [Board](/usc/5/8401.md?p=5) may by regulation prescribe. The restrictions of [section 8477(c)(1) of this title](/usc/5/8477.md?p=c-1) 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](/usc/5/8435.md?p=e) are satisfied.
- (h)
  - (1) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) may apply, before separation, to the [Board](/usc/5/8401.md?p=5) for permission to withdraw an amount from the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [account](/usc/5/8401.md?p=1) based upon—
    - (A) the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) having attained age 59½; or
    - (B) financial hardship.
  - (2) A withdrawal under [paragraph (1)(B)](#h-1-B) shall be available only for an amount not exceeding the value of that portion of such [account](/usc/5/8401.md?p=1) which is attributable to contributions made by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
  - (3) Withdrawals under [paragraph (1)](#h-1) shall be subject to such other limitations or conditions as the [Executive Director](/usc/5/8401.md?p=13) may prescribe by regulation.
  - (4) A withdrawal may not be made under this subsection unless the requirements of [section 8435(e) of this title](/usc/5/8435.md?p=e) are satisfied.

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

- (a)
  - (1) The [Board](/usc/5/8401.md?p=5) shall prescribe methods of payment of annuities under this subchapter.
  - (2) The methods of payment prescribed under [paragraph (1)](#a-1) shall include, but not be limited to—
    - (A) a method which provides for the payment of a monthly annuity only to an [annuitant](/usc/5/8401.md?p=2) during the life of the [annuitant](/usc/5/8401.md?p=2);
    - (B) a method which provides for the payment of a monthly annuity to an [annuitant](/usc/5/8401.md?p=2) for the joint lives of the [annuitant](/usc/5/8401.md?p=2) and the spouse of the [annuitant](/usc/5/8401.md?p=2) and an appropriate monthly annuity to the one of them who survives the other of them for the life of the [survivor](/usc/5/8401.md?p=28);
    - (C) a method described in [subparagraph (A)](#a-2-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)](#a-2-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](/usc/5/8401.md?p=2) for the joint lives of the [annuitant](/usc/5/8401.md?p=2) and an individual who is designated by the [annuitant](/usc/5/8401.md?p=2) under regulations prescribed by the [Executive Director](/usc/5/8401.md?p=13) and (I) is a [former spouse](/usc/5/8401.md?p=12) of the [annuitant](/usc/5/8401.md?p=2), or (II) has an insurable interest in the [annuitant](/usc/5/8401.md?p=2); and
      - (ii) to the one of them who survives the other of them for the life of the [survivor](/usc/5/8401.md?p=28).
- (b) Subject to [section 8435(b) of this title](/usc/5/8435.md?p=b), under such regulations as the [Executive Director](/usc/5/8401.md?p=13) shall prescribe, an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) who elects under [section 8433 of this title](/usc/5/8433.md) 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)](#a).
- (c) Notwithstanding the elimination of a method of payment by the [Board](/usc/5/8401.md?p=5), an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) 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](/usc/5/8401.md?p=13) may by regulation prescribe) before an annuity is to commence under this subchapter, the [Executive Director](/usc/5/8401.md?p=13) shall expend the balance in the [annuitant](/usc/5/8401.md?p=2)’s [account](/usc/5/8401.md?p=1) to purchase an annuity contract from any entity which, in the normal course of its business, sells and provides annuities.
  - (2) The [Executive Director](/usc/5/8401.md?p=13) shall assure, by contract entered into with each entity from which an annuity contract is purchased under [paragraph (1)](#d-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)](#d-1) shall include such terms and conditions as the [Executive Director](/usc/5/8401.md?p=13) requires for the protection of the [annuitant](/usc/5/8401.md?p=2).
  - (4) The [Executive Director](/usc/5/8401.md?p=13) shall require, from each entity from which an annuity contract is purchased under [paragraph (1)](#d-1), a bond or proof of financial responsibility sufficient to protect the [annuitant](/usc/5/8401.md?p=2).
- (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](/usc/5/7103.md?p=a-6) thereof, on, or with respect to, any amount paid to purchase an annuity contract under this section.
  - (2) [Paragraph (1)](#e-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.

# §8435. Protections for spouses and former spouses

- (a)
  - (1)
    - (A) A married [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) may withdraw all or part of a [Thrift Savings Fund](/usc/5/8471.md?p=5) [account](/usc/5/8401.md?p=1) under subsection (b)(2), (3), or (4) of [section 8433 of this title](/usc/5/8433.md) or change a withdrawal election only if the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) satisfies the requirements of [subparagraph (B)](#a-1-B). A married [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) may make a withdrawal from a [Thrift Savings Fund](/usc/5/8471.md?p=5) [account](/usc/5/8401.md?p=1) under subsection (c)(1) of [section 8433 of this title](/usc/5/8433.md) only if the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) satisfies the requirements of [subparagraph (B)](#a-1-B).
    - (B) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) may make an election or change referred to in [subparagraph (A)](#a-1-A) if the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) and the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s spouse (or the former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) and the former [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s spouse) jointly waive, by written election, any right which the spouse may have to a [survivor](/usc/5/8401.md?p=28) annuity with respect to such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) under [section 8434 of this title](/usc/5/8434.md) or [subsection (b)](#b).
  - (2) [Paragraph (1)](#a-1) shall not apply to an election or change of election by an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) who establishes to the satisfaction of the [Executive Director](/usc/5/8401.md?p=13) (at the time of the election or change and in accordance with regulations prescribed by the [Executive Director](/usc/5/8401.md?p=13))—
    - (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](/usc/5/8434.md), the method described in [subsection (a)(2)(B)](/usc/5/8434.md?p=a-2-B) of such section (or, if more than one form of such method is available, the form which the [Board](/usc/5/8401.md?p=5) determines to be the one which provides for a surviving spouse a [survivor](/usc/5/8401.md?p=28) annuity most closely approximating the annuity of a surviving spouse under [section 8442 of this title](/usc/5/8442.md)) shall be deemed the applicable method under such [subsection (b)](#b) in the case of an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) who is married on the date on which an annuity contract is purchased to provide for the [employee](/usc/5/8401.md?p=11)’s, [Member](/usc/5/8401.md?p=20)’s, former [employee](/usc/5/8401.md?p=11)’s, or former [Member](/usc/5/8401.md?p=20)’s annuity under this subchapter.
  - (2) [Paragraph (1)](#b-1) shall not apply if—
    - (A) a joint waiver of such method is made, in writing, by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) and the spouse; or
    - (B) the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) waives such method, in writing, after establishing to the satisfaction of the [Executive Director](/usc/5/8401.md?p=13) that circumstances described under subsection [(a)(2)(A)](#a-2-A) or [(B)](#a-2-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](/usc/5/8401.md?p=7) decree, order, or agreement described in [paragraph (2)](#c-2).
  - (2) A [court](/usc/5/8401.md?p=7) decree, order, or agreement referred to in [paragraph (1)](#c-1) is, with respect to an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)), a [court](/usc/5/8401.md?p=7) decree of divorce, annulment, or legal separation issued in the case of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) and any [former spouse](/usc/5/8401.md?p=12) of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) or any [court](/usc/5/8401.md?p=7) order or [court](/usc/5/8401.md?p=7)-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](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s (or former [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s) [account](/usc/5/8401.md?p=1); and
    - (B) notice of the decree, order, or agreement was received by the [Executive Director](/usc/5/8401.md?p=13) 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)](#c-1).

  - (3) The [Executive Director](/usc/5/8401.md?p=13) shall prescribe regulations under which this subsection shall be applied in any case in which the [Executive Director](/usc/5/8401.md?p=13) receives two or more decrees, orders, or agreements referred to in [paragraph (1)](#c-1).
- (d)
  - (1) Subject to [paragraphs (2) through (7)](#d-2..d-7), a [former spouse](/usc/5/8401.md?p=12) of a deceased [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or a deceased former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) who died after performing 18 or more months of [service](/usc/5/8401.md?p=26) and a [former spouse](/usc/5/8401.md?p=12) of a deceased former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who died entitled to an immediate or deferred annuity under subchapter II of this chapter is entitled to a [survivor](/usc/5/8401.md?p=28) annuity under this subsection if and to the extent that—
    - (A) an election under [section 8434(a)(2)(E) of this title](/usc/5/8434.md?p=a-2-E), or
    - (B) any [court](/usc/5/8401.md?p=7) decree, order, or agreement (described in [subsection (c)(2)](#c-2), without regard to [subparagraph (B)](#d-1-B) of such subsection) which relates to such deceased individual and such [former spouse](/usc/5/8401.md?p=12),

    expressly provides for such [survivor](/usc/5/8401.md?p=28) annuity.

  - (2) [Paragraph (1)](#d-1) shall apply only to payments made by the [Executive Director](/usc/5/8401.md?p=13) after the date on which the [Executive Director](/usc/5/8401.md?p=13) receives written notice of the election, decree, order, or agreement, and such additional information and documentation as the [Executive Director](/usc/5/8401.md?p=13) may require.
  - (3) The amount of the [survivor](/usc/5/8401.md?p=28) annuity payable from the [Thrift Savings Fund](/usc/5/8471.md?p=5) to a [former spouse](/usc/5/8401.md?p=12) of a deceased [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) under this section may not exceed the excess, if any, of—
    - (A) the amount of the [survivor](/usc/5/8401.md?p=28) annuity determined for a surviving spouse of the deceased [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) under the method described in [subsection (b)(1)](#b-1), over
    - (B) the total amount of all other [survivor](/usc/5/8401.md?p=28) annuities payable under this subchapter to other [former spouses](/usc/5/8401.md?p=12) of such deceased [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) based on the order of precedence provided in [paragraph (4)](#d-4).
  - (4) If more than one [former spouse](/usc/5/8401.md?p=12) of a deceased [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) is entitled to a [survivor](/usc/5/8401.md?p=28) annuity pursuant to this subsection, the amount of each such [survivor](/usc/5/8401.md?p=28) annuity shall be limited appropriately to carry out [paragraph (3)](#d-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](/usc/5/8434.md?p=a-2-E) and the dates on which the [court](/usc/5/8401.md?p=7) 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](/usc/5/8445.md) shall apply to an entitlement of a [former spouse](/usc/5/8401.md?p=12) to a [survivor](/usc/5/8401.md?p=28) annuity under this subsection.
  - (6) For the purposes of this section, a [court](/usc/5/8401.md?p=7) decree, order, or agreement or an election referred to in [subsection (a)](#a) of this section shall not be effective, in the case of a [former spouse](/usc/5/8401.md?p=12), to the extent that the election is inconsistent with any joint waiver previously executed with respect to such [former spouse](/usc/5/8401.md?p=12) under subsection [(a)(2)](#a-2) or [(b)(2)](#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](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under section [8433(g)](/usc/5/8433.md?p=g) and [(h)](/usc/5/8433.md?p=h) of this title only if the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s spouse consents to such loan or withdrawal in writing.
    - (B) A consent under [subparagraph (A)](#e-1-A) shall be irrevocable with respect to the loan or withdrawal to which the consent relates.
    - (C) [Subparagraph (A)](#e-1-A) shall not apply to a loan or withdrawal to an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who establishes to the satisfaction of the [Executive Director](/usc/5/8401.md?p=13) (at the time the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) applies for such loan or withdrawal and in accordance with regulations prescribed by the [Executive Director](/usc/5/8401.md?p=13))—
      - (i) that the spouse’s whereabouts cannot be determined; or
      - (ii) that, due to exceptional circumstances, requiring the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) to seek the spouse’s consent would otherwise be inappropriate.
  - (2) An application for a loan or withdrawal under section [8433(g)](/usc/5/8433.md?p=g) and [(h)](/usc/5/8433.md?p=h) of this title shall not be approved if approval would have the result described under [subsection (c)(1)](#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](/usc/5/8401.md?p=13).
- (g) Except with respect to the making of loans or withdrawals under section [8433(g)](/usc/5/8433.md?p=g) and [(h)](/usc/5/8433.md?p=h), none of the provisions of this section requiring notification to, or the consent or waiver of, a spouse or [former spouse](/usc/5/8401.md?p=12) of an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) shall apply in any case in which the [nonforfeitable account balance](/usc/5/8401.md?p=32) of the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) 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](/usc/5/8467.md).

# §8436. Administrative provisions

- (a) The [Executive Director](/usc/5/8401.md?p=13) shall make or provide for payments and transfers in accordance with an election of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under section [8433](/usc/5/8433.md) or [8434(b)](/usc/5/8434.md?p=b) of this title or, if applicable, in accordance with [section 8435 of this title](/usc/5/8435.md).
- (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](/usc/5/8401.md?p=13) in accordance with regulations prescribed by the [Executive Director](/usc/5/8401.md?p=13).

# §8437. Thrift Savings Fund

- (a) There is established in the Treasury of the United States a [Thrift Savings Fund](/usc/5/8471.md?p=5).
- (b) The [Thrift Savings Fund](/usc/5/8471.md?p=5) consists of the sum of all amounts contributed under [section 8432 of this title](/usc/5/8432.md) and all amounts deposited under [section 8479(b) of this title](/usc/5/8479.md?p=b), increased by the total [net earnings](/usc/5/8401.md?p=21) from investments of sums in the [Thrift Savings Fund](/usc/5/8471.md?p=5) or reduced by the total [net losses](/usc/5/8401.md?p=22) from investments of the [Thrift Savings Fund](/usc/5/8471.md?p=5), and reduced by the total amount of payments made from the [Thrift Savings Fund](/usc/5/8471.md?p=5) (including payments for administrative expenses).
- (c) The sums in the [Thrift Savings Fund](/usc/5/8471.md?p=5) are appropriated and shall remain available without fiscal year limitation—
  - (1) to invest under [section 8438 of this title](/usc/5/8438.md);
  - (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](/usc/5/8401.md?p=29) prescribed in subchapter VII of this chapter;
  - (4) to make distributions for the purposes of [section 8440(b) of this title](/usc/5/8440.md?p=b);
  - (5) to make loans to [employees](/usc/5/8401.md?p=11) and [Members](/usc/5/8401.md?p=20) as authorized under [section 8433(g) of this title](/usc/5/8433.md?p=g); and
  - (6) to purchase insurance as provided in [section 8479(b)(2) of this title](/usc/5/8479.md?p=b-2).
- (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](/usc/5/8471.md?p=5) forfeited under [section 8432(g) of this title](/usc/5/8432.md?p=g) and then out of [net earnings](/usc/5/8401.md?p=21) in such [Fund](/usc/5/8401.md?p=6).
- (e)
  - (1) Subject to [subsection (d)](#d) and paragraphs [(2)](#e-2) and [(3)](#e-3), sums in the [Thrift Savings Fund](/usc/5/8471.md?p=5) credited to the [account](/usc/5/8401.md?p=1) of an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) may not be used for, or diverted to, purposes other than for the exclusive benefit of the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) or his [beneficiaries](/usc/5/8471.md?p=1) under this subchapter.
  - (2) Except as provided in [paragraph (3)](#e-3), sums in the [Thrift Savings Fund](/usc/5/8471.md?p=5) 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](/usc/5/8401.md?p=6) to an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) shall not be considered to be an assignment or alienation.
  - (3) Moneys due or payable from the [Thrift Savings Fund](/usc/5/8471.md?p=5) to any individual and, in the case of an individual who is an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)), the balance in the [account](/usc/5/8401.md?p=1) of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) 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](/usc/42/659.md)), the enforcement of an order for restitution under [section 3663A of title 18](/usc/18/3663A.md), forfeiture under [section 8432(g)(5) of this title](/usc/5/8432.md?p=g-5), an obligation of the [Executive Director](/usc/5/8401.md?p=13) to make a transfer under section 415(d)(3) of the Congressional Accountability Act of 1995 ([2 U.S.C. 1415(d)(3)](/usc/2/1415.md?p=d-3)), or an obligation of the [Executive Director](/usc/5/8401.md?p=13) to make a payment to another person under [section 8467 of this title](/usc/5/8467.md), and shall be subject to a Federal tax levy under section 6331 of the Internal Revenue Code of 1986. For the purposes of this paragraph, an amount contributed for the benefit of an individual under [section 8432(c)(1)](/usc/5/8432.md?p=c-1) (including any [earnings](/usc/5/8401.md?p=10) attributable thereto) shall not be considered part of the balance in such individual’s [account](/usc/5/8401.md?p=1) unless such amount is nonforfeitable, as determined under applicable provisions of [section 8432(g)](/usc/5/8432.md?p=g).
- (f) The sums in the [Thrift Savings Fund](/usc/5/8471.md?p=5) 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](/usc/5/8471.md?p=5) by an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) or by an employing [agency](/usc/5/500.md?p=a-1) for the benefit of such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) and all [net earnings](/usc/5/8401.md?p=21) in such [Fund](/usc/5/8401.md?p=6) attributable to investment of such sums are held in such [Fund](/usc/5/8401.md?p=6) in trust for such [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).

# §8438. Investment of Thrift Savings Fund

- (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)](#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)](#b-1-B);
  - (4) the term “Government Securities Investment Fund” means the Government Securities Investment Fund established under [subsection (b)(1)(A)](#b-1-A);
  - (5) the term “International Stock Index Investment Fund” means the International Stock Index Investment Fund established under [subsection (b)(1)(E)](#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](/usc/5/8401.md?p=11) benefit plan, as defined in section 3(3) of the [Employee](/usc/5/8401.md?p=11) Retirement Income Security Act of 1974 ([29 U.S.C. 1002(3)](/usc/29/1002.md?p=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)](/usc/15/80b–2.md?p=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](#a-2) in excess of $1,000,000;
    - (B) a savings and loan association, the [accounts](/usc/5/8401.md?p=1) 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](/usc/5/8401.md?p=15) [authority](/usc/5/7103.md?p=a-6) 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](#a-2) or [net worth](#a-6) 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](#a-6) in excess of $1,000,000; and
      - (iii) is subject to supervision and examination by a State [authority](/usc/5/7103.md?p=a-6) 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](/usc/15/80b–3.md)) 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](#a-9)’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](/usc/5/8477.md), is unconditionally guaranteed by—
        - (I) a person (as defined in [section 8471(4) of this title](/usc/5/8471.md?p=4)) 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](#a-9)’s or partner’s equity in an amount which, when added to the amount of the [shareholder](#a-9)’s or partner’s equity of the investment adviser on such day, exceeds $750,000;
        - (II) a [qualified professional asset manager](#a-8) described in subparagraph [(A)](#a-8-A), [(B)](#a-8-B), or [(C)](#a-8-C); or
        - (III) a broker or dealer registered under section 15 of the Securities Exchange Act of 1934 ([15 U.S.C. 78o](/usc/15/78o.md)) 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](#a-6) in excess of $750,000;
  - (9) the term “shareholder’s or partner’s equity”, as used in [paragraph (8)(D)](#a-8-D) with respect to an investment adviser or a person (as defined in [section 8471(4) of this title](/usc/5/8471.md?p=4)) who is affiliated with the investment adviser in a manner described in [clause (ii)(I)](#a-8-D-ii-I) of such [paragraph (8)(D)](#a-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](#a-8) 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-D).
- (b)
  - (1) The [Board](/usc/5/8401.md?p=5) shall establish—
    - (A) a [Government Securities Investment Fund](#a-4) under which sums in the [Thrift Savings Fund](/usc/5/8471.md?p=5) are invested in securities of the United States [Government](/usc/5/8401.md?p=15) issued as provided in [subsection (e)](#e);
    - (B) a [Fixed Income Investment Fund](#a-3) under which sums in the [Thrift Savings Fund](/usc/5/8471.md?p=5) are invested in—
      - (i) insurance contracts;
      - (ii) certificates of deposits; or
      - (iii) other instruments or obligations selected by [qualified professional asset managers](#a-8),

      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](#a-1) as provided in [paragraph (2)](#b-2);
    - (D) a [Small Capitalization Stock Index Investment Fund](#a-10) as provided in [paragraph (3)](#b-3);
    - (E) an [International Stock Index Investment Fund](#a-5) as provided in [paragraph (4)](#b-4); and
    - (F) a [service](/usc/5/8401.md?p=26) that enables [participants](/usc/5/8471.md?p=3) to invest in mutual [funds](/usc/5/8401.md?p=6), if the [Board](/usc/5/8401.md?p=5) authorizes the mutual [fund](/usc/5/8401.md?p=6) window under [paragraph (5)](#b-5).
  - (2)
    - (A) The [Board](/usc/5/8401.md?p=5) 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](#a-1) shall be invested in a portfolio designed to replicate the performance of the index selected under [subparagraph (A)](#b-2-A). The portfolio shall be designed such that, to the extent practicable, the percentage of the [Common Stock Index Investment Fund](#a-1) 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](/usc/5/8401.md?p=5) 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](#a-1).
    - (B) The [Small Capitalization Stock Index Investment Fund](#a-10) shall be invested in a portfolio designed to replicate the performance of the index in [subparagraph (A)](#b-3-A). The portfolio shall be designed such that, to the extent practicable, the percentage of the [Small Capitalization Stock Index Investment Fund](#a-10) 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](/usc/5/8401.md?p=5) 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](#a-5) shall be invested in a portfolio designed to replicate the performance of the index in [subparagraph (A)](#b-4-A). The portfolio shall be designed such that, to the extent practicable, the percentage of the [International Stock Index Investment Fund](#a-5) 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.
  - (5)
    - (A) The [Board](/usc/5/8401.md?p=5) may authorize the addition of a mutual [fund](/usc/5/8401.md?p=6) window under the Thrift Savings Plan if the [Board](/usc/5/8401.md?p=5) determines that such addition would be in the best interests of [participants](/usc/5/8471.md?p=3).
    - (B) The [Board](/usc/5/8401.md?p=5) shall ensure that any expenses charged for use of the mutual [fund](/usc/5/8401.md?p=6) window are borne solely by the [participants](/usc/5/8471.md?p=3) who use such window.
    - (C) The [Board](/usc/5/8401.md?p=5) may establish such other terms and conditions for the mutual [fund](/usc/5/8401.md?p=6) window as the [Board](/usc/5/8401.md?p=5) considers appropriate to protect the interests of [participants](/usc/5/8471.md?p=3), including requirements relating to risk disclosure.
    - (D) The [Board](/usc/5/8401.md?p=5) shall consult with the [Employee](/usc/5/8401.md?p=11) Thrift Advisory [Council](/usc/5/8471.md?p=2) (established under [section 8473](/usc/5/8473.md)) before authorizing the addition of a mutual [fund](/usc/5/8401.md?p=6) window or establishing a [service](/usc/5/8401.md?p=26) that enables [participants](/usc/5/8471.md?p=3) to invest in mutual [funds](/usc/5/8401.md?p=6).
- (c)
  - (1) The [Executive Director](/usc/5/8401.md?p=13) shall invest the sums available in the [Thrift Savings Fund](/usc/5/8471.md?p=5) for investment as provided in elections made under [subsection (d)](#d).
  - (2) If an election has not been made with respect to any sums available for investment in the [Thrift Savings Fund](/usc/5/8471.md?p=5), the [Executive Director](/usc/5/8401.md?p=13) shall invest such sums in an age-appropriate target date asset allocation investment [fund](/usc/5/8401.md?p=6), as determined by the [Executive Director](/usc/5/8401.md?p=13). Such investment [fund](/usc/5/8401.md?p=6) shall consist of any of the [funds](/usc/5/8401.md?p=6) described in [subsection (b)](#b).
- (d)
  - (1) At least twice each year, an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)) may elect the investment [funds](/usc/5/8401.md?p=6) and options referred to in [subsection (b)](#b) into which the sums in the [Thrift Savings Fund](/usc/5/8471.md?p=5) credited to such individual’s [account](/usc/5/8401.md?p=1) are to be invested or reinvested.
  - (2) An election may be made under [paragraph (1)](#d-1) only in accordance with regulations prescribed by the [Executive Director](/usc/5/8401.md?p=13) and within such period as the [Executive Director](/usc/5/8401.md?p=13) 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](/usc/5/8471.md?p=5) for the [Government Securities Investment Fund](#a-4).
  - (2)
    - (A) Obligations issued for the purpose of this subsection shall have maturities fixed with due regard to the needs of such [Fund](/usc/5/8401.md?p=6) as determined by the [Executive Director](/usc/5/8401.md?p=13), 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)](#e-2-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](/usc/5/8401.md?p=5), other [Government](/usc/5/8401.md?p=15) [agencies](/usc/5/500.md?p=a-1), the [Executive Director](/usc/5/8401.md?p=13), an [employee](/usc/5/8401.md?p=11), a [Member](/usc/5/8401.md?p=20), a former [employee](/usc/5/8401.md?p=11), and a former [Member](/usc/5/8401.md?p=20) may not exercise voting rights associated with the ownership of securities by the [Thrift Savings Fund](/usc/5/8471.md?p=5).
- (g)
  - (1) Notwithstanding [subsection (e)](#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](#g-6-A), as determined by the Secretary of the Treasury.
  - (2) Any issuances of obligations to the [Government Securities Investment Fund](#a-4) which, solely by reason of the [public debt limit](#g-6-A) are not issued, shall be issued under [subsection (e)](#e) by the Secretary of the Treasury as soon as such issuances can be issued without exceeding the [public debt limit](#g-6-A).
  - (3) Upon expiration of the [debt issuance suspension period](#g-6-B), the Secretary of the Treasury shall immediately issue to the [Government Securities Investment Fund](#a-4) obligations under [chapter 31](/usc/31/chstIII-ch31.md) of title 31 that (notwithstanding [subsection (e)(2)](#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](#a-4) will replicate the obligations that would then be held by the [Government Securities Investment Fund](#a-4) under the procedure set forth in [paragraph (5)](#g-5), if the [suspension](/usc/5/7541.md?p=2) 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](#g-6-B), the Secretary of the Treasury shall pay to the [Government Securities Investment Fund](#a-4), from amounts in the general [fund](/usc/5/8401.md?p=6) 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](#a-4) from obligations of the United States during such [debt issuance suspension period](#g-6-B) if—
    - (A) amounts in the [Government Securities Investment Fund](#a-4) that were available for investment in obligations of the United States and were not invested during such [debt issuance suspension period](#g-6-B) solely by reason of the [public debt limit](#g-6-A) had been invested under the procedure set forth in [paragraph (5)](#g-5), over
    - (B) the net amount of interest actually earned by the [Government Securities Investment Fund](#a-4) from obligations of the United States during such [debt issuance suspension period](#g-6-B).
  - (5) On each business day during the debt limit [suspension](/usc/5/7541.md?p=2) period, the [Executive Director](/usc/5/8401.md?p=13) 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](#g-6-B) not occurred.
  - (6) For purposes of this subsection and [subsection (h)](#h) of this section—
    - (A) the term “public debt limit” means the limitation imposed by [section 3101(b) of title 31](/usc/31/3101.md?p=b); 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](#g-6-A).
- (h)
  - (1) The Secretary of the Treasury shall report to Congress on the operation and status of the [Thrift Savings Fund](/usc/5/8471.md?p=5) during each debt issuance suspension period for which the Secretary is required to take action under paragraph [(3)](#g-3) or [(4)](#g-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](/usc/5/8401.md?p=13).
  - (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)](#e) of this section, the Secretary shall immediately notify Congress and the [Executive Director](/usc/5/8401.md?p=13) of the determination. The notification shall be made in writing.

# §8439. Accounting and information

- (a)
  - (1) The [Executive Director](/usc/5/8401.md?p=13) shall establish and maintain an [account](/usc/5/8401.md?p=1) for each individual who makes contributions or for whom contributions are made under [section 8432 of this title](/usc/5/8432.md) or who makes contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5).
  - (2) The balance in an individual’s [account](/usc/5/8401.md?p=1) at any time is the excess of—
    - (A) the sum of—
      - (i) all contributions made to the [Thrift Savings Fund](/usc/5/8471.md?p=5) by the individual;
      - (ii) all contributions made to such [Fund](/usc/5/8401.md?p=6) for the benefit of the individual; and
      - (iii) the total amount of the allocations made to and reductions made in the [account](/usc/5/8401.md?p=1) pursuant to [paragraph (3)](#a-3), over
    - (B) the amounts paid out of the [Thrift Savings Fund](/usc/5/8471.md?p=5) with respect to such individual under this subchapter.
  - (3) Pursuant to regulations prescribed by the [Executive Director](/usc/5/8401.md?p=13), the [Executive Director](/usc/5/8401.md?p=13) shall allocate to each [account](/usc/5/8401.md?p=1) an amount equal to a pro rata share of the [net earnings](/usc/5/8401.md?p=21) and [net losses](/usc/5/8401.md?p=22) from each investment of sums in the [Thrift Savings Fund](/usc/5/8471.md?p=5) attributable to sums credited to such [account](/usc/5/8401.md?p=1), reduced by an appropriate share of the administrative expenses paid out of the [net earnings](/usc/5/8401.md?p=21) under [section 8437(d) of this title](/usc/5/8437.md?p=d), as determined by the [Executive Director](/usc/5/8401.md?p=13).
- (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](/usc/5/8401.md?p=11) Retirement Income Security Act of 1974 ([29 U.S.C. 1023(a)(3)(D)](/usc/29/1023.md?p=a-3-D)).
  - (2) The [Executive Director](/usc/5/8401.md?p=13) shall annually engage, on behalf of all individuals for whom an [account](/usc/5/8401.md?p=1) is maintained, an independent [qualified public accountant](#b-1), who shall conduct an examination of all [accounts](/usc/5/8401.md?p=1) 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)](#b-3). The examination shall be conducted in accordance with generally accepted auditing standards and shall involve such tests of the [accounts](/usc/5/8401.md?p=1), books, and records as the public accountant considers necessary.
  - (3) The public accountant conducting an examination under [paragraph (2)](#b-2) shall determine whether the [accounts](/usc/5/8401.md?p=1), 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](/usc/5/8401.md?p=5) a report on his examination, including his determination under this paragraph.
  - (4) In making a determination under [paragraph (3)](#b-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](/usc/5/8401.md?p=5) under such paragraph.
- (c)
  - (1) The [Board](/usc/5/8401.md?p=5) shall prescribe regulations under which each individual for whom an [account](/usc/5/8401.md?p=1) is maintained shall be furnished with—
    - (A) a periodic statement relating to the individual’s [account](/usc/5/8401.md?p=1); and
    - (B) a summary description of the investment options under [section 8438 of this title](/usc/5/8438.md) 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 on a regular basis, and in a manner designed to facilitate informed decisionmaking with respect to elections under sections [8432](/usc/5/8432.md) and [8438](/usc/5/8438.md) 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)
  - (1) Each [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) who elects to invest in any investment [fund](/usc/5/8401.md?p=6) or option under this chapter, other than the [Government](/usc/5/8401.md?p=15) Securities Investment [Fund](/usc/5/8401.md?p=6), shall sign an acknowledgement prescribed by the [Executive Director](/usc/5/8401.md?p=13) which states that the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) understands that an investment in any such [fund](/usc/5/8401.md?p=6) or option is made at the [employee](/usc/5/8401.md?p=11)’s, [Member](/usc/5/8401.md?p=20)’s, former [employee](/usc/5/8401.md?p=11)’s, or former [Member](/usc/5/8401.md?p=20)’s risk, that the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), former [employee](/usc/5/8401.md?p=11), or former [Member](/usc/5/8401.md?p=20) is not protected by the [Government](/usc/5/8401.md?p=15) against any [loss](/usc/5/8401.md?p=18) on such investment, and that a return on such investment is not guaranteed by the [Government](/usc/5/8401.md?p=15).
  - (2) Prior to enrollment in the [Thrift Savings Fund](/usc/5/8471.md?p=5), or as soon as practicable thereafter, an individual who is automatically enrolled pursuant to [section 8432(b)(2)](/usc/5/8432.md?p=b-2) shall receive the risk acknowledgment information described under [paragraph (1)](#d-1).

# §8440. Tax treatment of the Thrift Savings Fund

- (a) For purposes of the Internal Revenue Code of 1986—
  - (1) the [Thrift Savings Fund](/usc/5/8471.md?p=5) shall be treated as a trust described in [section 401(a)](/usc/5/401.md) of such Code which is exempt from taxation under [section 501(a)](/usc/5/501.md) of such Code;
  - (2) any contribution to, or distribution from, the [Thrift Savings Fund](/usc/5/8471.md?p=5) shall be treated in the same manner as contributions to or distributions from such a trust; and
  - (3) subject to [section 401(k)(4)(B)](/usc/5/401.md) of such Code and any dollar limitation on the application of [section 402(a)(8)](/usc/5/402.md) of such Code, contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) shall not be treated as distributed or made available to an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) nor as a contribution made to the [Fund](/usc/5/8401.md?p=6) by an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) merely because the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) has, under the provisions of this subchapter and [section 8351 of this title](/usc/5/8351.md), an election whether the contribution will be made to the [Thrift Savings Fund](/usc/5/8471.md?p=5) or received by the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) in cash.
- (b) **Nondiscrimination requirements.—** Notwithstanding any other provision of law, the [Thrift Savings Fund](/usc/5/8471.md?p=5) is not subject to the nondiscrimination requirements applicable to arrangements described in [section 401(k) of title 26](/usc/26/401.md?p=k), United States Code, or to matching contributions (as described in [section 401(m) of title 26](/usc/26/401.md?p=m), United States Code), so long as it meets the requirements of this section.
- (c) [Subsection (a)](#a) shall not be construed to provide that any amount of the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s [basic pay](/usc/5/8401.md?p=4) which is contributed to the [Thrift Savings Fund](/usc/5/8471.md?p=5) shall not be included in the term “wages” for the purposes of section 209 of the Social Security Act or section 3121(a) of the Internal Revenue Code of 1986.

# §8440a. Justices and judges

- (a)
  - (1) A justice or judge of the United States as defined by [section 451 of title 28](/usc/28/451.md) may elect to contribute an amount of such individual’s [basic pay](/usc/5/8401.md?p=4) to the [Thrift Savings Fund](/usc/5/8471.md?p=5). [Basic pay](/usc/5/8401.md?p=4) does not include an annuity or salary received by a justice or judge who has retired under section [371(a)](/usc/28/371.md?p=a) or [(b)](/usc/28/371.md?p=b) or [section 372(a) of title 28](/usc/28/372.md?p=a), United States Code.
  - (2) An election may be made under [paragraph (1)](#a-1) as provided under [section 8432(b)](/usc/5/8432.md?p=b) for individuals subject to this chapter.
- (b)
  - (1) Except as otherwise provided in this subsection, the provisions of this subchapter and subchapter VII shall apply with respect to justices and judges making contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5).
  - (2) The amount contributed by a justice or judge for any pay period shall not exceed the maximum percentage of such justice’s or judge’s [basic pay](/usc/5/8401.md?p=4) for such pay period allowable under [section 8440f](/usc/5/8440f.md).
  - (3) No contributions shall be made for the benefit of a justice or judge under [section 8432(c) of this title](/usc/5/8432.md?p=c).
  - (4) [Section 8433(b) of this title](/usc/5/8433.md?p=b) applies with respect to elections available to any justice or judge who retires under section 371(a) or (b) or [section 372(a) of title 28](/usc/28/372.md?p=a). Retirement under section [371(a)](/usc/28/371.md?p=a) or [(b)](/usc/28/371.md?p=b) or [section 372(a) of title 28](/usc/28/372.md?p=a) is a separation from [service](/usc/5/8401.md?p=26) for the purposes of subchapters III and VII of [chapter 84](/usc/5/chptIII-sptG-ch84.md) of this title.
  - (5) [Section 8433(b) of this title](/usc/5/8433.md?p=b) applies to any justice or judge who resigns without having met the age and [service](/usc/5/8401.md?p=26) requirements set forth in [section 371(c) of title 28](/usc/28/371.md?p=c).
  - (6) The provisions of [section 8351(b)(5) of this title](/usc/5/8351.md?p=b-5) shall govern the rights of spouses of justices or judges contributing to the [Thrift Savings Fund](/usc/5/8471.md?p=5) under this section.
  - (7) Notwithstanding paragraphs [(4)](#b-4) and [(5)](#b-5), if any justice or judge retires under subsection (a) or (b) of section 371 or [section 372(a) of title 28](/usc/28/372.md?p=a), or resigns without having met the age and [service](/usc/5/8401.md?p=26) requirements set forth under [section 371(c) of title 28](/usc/28/371.md?p=c), and such justice’s or judge’s [nonforfeitable account balance](/usc/5/8401.md?p=32) is less than an amount that the [Executive Director](/usc/5/8401.md?p=13) prescribes by regulation, the [Executive Director](/usc/5/8401.md?p=13) shall pay the [nonforfeitable account balance](/usc/5/8401.md?p=32) to the [participant](/usc/5/8471.md?p=3) in a single payment.

# §8440b. Bankruptcy judges and magistrate judges

- (a)
  - (1) A bankruptcy judge or magistrate judge who is covered by [section 377 of title 28](/usc/28/377.md) or [section 2(c)](/usc/28/2.md) of the [Retirement](#b-6) and [Survivors](/usc/5/8401.md?p=28)’ Annuities for Bankruptcy Judges and Magistrates Act of 1988 may elect to contribute an amount of such individual’s [basic pay](/usc/5/8401.md?p=4) to the [Thrift Savings Fund](/usc/5/8471.md?p=5).
  - (2) An election may be made under [paragraph (1)](#a-1) as provided under [section 8432(b)](/usc/5/8432.md?p=b) for individuals subject to this chapter.
- (b)
  - (1) Except as otherwise provided in this subsection, the provisions of this subchapter and subchapter VII shall apply with respect to bankruptcy judges and magistrate judges who make contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) under [subsection (a)](#a) of this section.
  - (2) The amount contributed by a bankruptcy judge or magistrate judge for any pay period shall not exceed the maximum percentage of such bankruptcy judge’s or magistrate judge’s [basic pay](/usc/5/8401.md?p=4) for such pay period allowable under [section 8440f](/usc/5/8440f.md).
  - (3) No contributions shall be made under [section 8432(c) of this title](/usc/5/8432.md?p=c) for the benefit of a bankruptcy judge or magistrate judge making contributions under [subsection (a)](#a) of this section.
  - (4)
    - (A) [Section 8433(b) of this title](/usc/5/8433.md?p=b) applies to a bankruptcy judge or magistrate judge who elects to make contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) under [subsection (a)](#a) of this section and who [retires](#b-6) entitled to an immediate annuity under [section 377 of title 28](/usc/28/377.md) (including a disability annuity under [subsection (d)](/usc/28/377.md?p=d) of such section) or [section 2(c)](/usc/28/2.md) of the [Retirement](#b-6) and [Survivors](/usc/5/8401.md?p=28)’ Annuities for Bankruptcy Judges and Magistrates Act of 1988.
    - (B) [Section 8433(b) of this title](/usc/5/8433.md?p=b) applies to any bankruptcy judge or magistrate judge who elects to make contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) under [subsection (a)](#a) of this section and who [retires](#b-6) before attaining age 65 but is entitled, upon attaining age 65, to an annuity under [section 377 of title 28](/usc/28/377.md) or [section 2(c)](/usc/28/2.md) of the [Retirement](#b-6) and [Survivors](/usc/5/8401.md?p=28) Annuities for Bankruptcy Judges and Magistrates Act of 1988.
    - (C) [Section 8433(b) of this title](/usc/5/8433.md?p=b) applies to any bankruptcy judge or magistrate judge who elects to make contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) under [subsection (a)](#a) of this section and who [retires](#b-6) before becoming entitled to an immediate annuity, or an annuity upon attaining age 65, under [section 377 of title 28](/usc/28/377.md) or [section 2(c)](/usc/28/2.md) of the [Retirement](#b-6) and [Survivors](/usc/5/8401.md?p=28)’ Annuities for Bankruptcy Judges and Magistrates Act of 1988.
  - (5) With respect to bankruptcy judges and magistrate judges to whom this section applies, any of the actions described under paragraph [(4)(A)](#b-4-A), [(B)](#b-4-B), or [(C)](#b-4-C) shall be considered a separation from [service](/usc/5/8401.md?p=26) for purposes of this subchapter and subchapter VII.
  - (6) For purposes of this section, the terms “retirement” and “retire” include removal from [office](/usc/5/8401.md?p=24) under [section 377(d) of title 28](/usc/28/377.md?p=d) on the sole ground of mental or physical disability.
  - (7) In the case of a bankruptcy judge or magistrate judge who receives a distribution from the Thrift Savings Plan and who later receives an annuity under [section 377 of title 28](/usc/28/377.md), that annuity shall be offset by an amount equal to the amount of the distribution which represents the [Government](/usc/5/8401.md?p=15)’s contribution to that person’s Thrift Savings [Account](/usc/5/8401.md?p=1), without regard to [earnings](/usc/5/8401.md?p=10) attributable to that 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 that person receives the annuity.
  - (8) Notwithstanding [paragraph (4)](#b-4), if any bankruptcy judge or magistrate judge [retires](#b-6) under circumstances making such bankruptcy judge or magistrate judge eligible to make an election under [subsection (b)](/usc/5/8433.md?p=b) of section 8433, and such bankruptcy judge’s or magistrate judge’s [nonforfeitable account balance](/usc/5/8401.md?p=32) is less than an amount that the [Executive Director](/usc/5/8401.md?p=13) prescribes by regulation, the [Executive Director](/usc/5/8401.md?p=13) shall pay the [nonforfeitable account balance](/usc/5/8401.md?p=32) to the [participant](/usc/5/8471.md?p=3) in a single payment.

# §8440c. Court of Federal Claims judges

- (a)
  - (1) A judge of the United States [Court](/usc/5/8401.md?p=7) of Federal Claims who is covered by [section 178 of title 28](/usc/28/178.md) may elect to contribute an amount of such individual’s [basic pay](/usc/5/8401.md?p=4) to the [Thrift Savings Fund](/usc/5/8471.md?p=5).
  - (2) An election may be made under [paragraph (1)](#a-1) as provided under [section 8432(b)](/usc/5/8432.md?p=b) for individuals subject to this chapter.
- (b)
  - (1) Except as otherwise provided in this subsection, the provisions of this subchapter and subchapter VII shall apply with respect to [Court](/usc/5/8401.md?p=7) of Federal Claims judges who make contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) under [subsection (a)](#a) of this section.
  - (2) The amount contributed by a [Court](/usc/5/8401.md?p=7) of Federal Claims judge for any pay period shall not exceed the maximum percentage of such judge’s [basic pay](/usc/5/8401.md?p=4) for such pay period allowable under [section 8440f](/usc/5/8440f.md).
  - (3) No contributions shall be made under [section 8432(c) of this title](/usc/5/8432.md?p=c) for the benefit of a [Court](/usc/5/8401.md?p=7) of Federal Claims judge making contributions under [subsection (a)](#a) of this section.
  - (4)
    - (A) [Section 8433(b) of this title](/usc/5/8433.md?p=b) applies to a [Court](/usc/5/8401.md?p=7) of Federal Claims judge who elects to make contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) under [subsection (a)](#a) of this section and who [retires](#b-6) entitled to an annuity under [section 178 of title 28](/usc/28/178.md) (including a disability annuity under [subsection (c)](/usc/28/178.md?p=c) of such section).
    - (B) [Section 8433(b) of this title](/usc/5/8433.md?p=b) applies to any [Court](/usc/5/8401.md?p=7) of Federal Claims judge who elects to make contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) under [subsection (a)](#a) of this section and who [retires](#b-6) before becoming entitled to an annuity under [section 178 of title 28](/usc/28/178.md).
  - (5) With respect to [Court](/usc/5/8401.md?p=7) of Federal Claims judges to whom this section applies, any of the actions described in paragraph [(4)(A)](#b-4-A) or [(B)](#b-4-B) shall be considered a separation from [service](/usc/5/8401.md?p=26) for purposes of this subchapter and subchapter VII.
  - (6) For purposes of this section, the terms “retirement” and “retire” include removal from [office](/usc/5/8401.md?p=24) under [section 178(c) of title 28](/usc/28/178.md?p=c) on the sole ground of mental or physical disability.
  - (7) In the case of a [Court](/usc/5/8401.md?p=7) of Federal Claims judge who receives a distribution from the Thrift Savings Plan and who later receives an annuity under [section 178 of title 28](/usc/28/178.md), such annuity shall be offset by an amount equal to the amount of the distribution which represents the [Government](/usc/5/8401.md?p=15)’s contribution to that person’s Thrift Savings [Account](/usc/5/8401.md?p=1), without regard to [earnings](/usc/5/8401.md?p=10) attributable to that 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 that person receives the annuity.
  - (8) Notwithstanding [paragraph (4)](#b-4), if any [Court](/usc/5/8401.md?p=7) of Federal Claims judge [retires](#b-6) under circumstances making such judge eligible to make an election under [section 8433(b)](/usc/5/8433.md?p=b), and such judge’s [nonforfeitable account balance](/usc/5/8401.md?p=32) is less than an amount that the [Executive Director](/usc/5/8401.md?p=13) prescribes by regulation, the [Executive Director](/usc/5/8401.md?p=13) shall pay the [nonforfeitable account balance](/usc/5/8401.md?p=32) to the [participant](/usc/5/8471.md?p=3) in a single payment.

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

- (a)
  - (1) A judge of the United States [Court](/usc/5/8401.md?p=7) of Appeals for [Veterans](/usc/5/2108.md?p=1) Claims may elect to contribute to the [Thrift Savings Fund](/usc/5/8471.md?p=5).
  - (2) An election may be made under [paragraph (1)](#a-1) as provided under [section 8432(b) of this title](/usc/5/8432.md?p=b) for individuals subject to this chapter.
- (b)
  - (1) Except as otherwise provided in this subsection, the provisions of this subchapter and subchapter VII of this chapter shall apply with respect to a judge making contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5).
  - (2) The amount contributed by a judge of the United States [Court](/usc/5/8401.md?p=7) of Appeals for [Veterans](/usc/5/2108.md?p=1) Claims for any pay period may not exceed the maximum percentage of such judge’s [basic pay](/usc/5/8401.md?p=4) for such pay period allowable under [section 8440f](/usc/5/8440f.md). [Basic pay](/usc/5/8401.md?p=4) does not include any retired pay paid pursuant to [section 7296 of title 38](/usc/38/7296.md).
  - (3) No contributions may be made for the benefit of a judge under [section 8432(c) of this title](/usc/5/8432.md?p=c).
  - (4) [Section 8433(b) of this title](/usc/5/8433.md?p=b) applies with respect to a judge who elects to make contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) and retires under [section 7296(b) of title 38](/usc/38/7296.md?p=b).
  - (5) [Section 8433(b) of this title](/usc/5/8433.md?p=b) applies in the case of a judge who elects to make contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) and thereafter ceases to serve as a judge of the United States [Court](/usc/5/8401.md?p=7) of Appeals for [Veterans](/usc/5/2108.md?p=1) Claims but does not retire under [section 7296(b) of title 38](/usc/38/7296.md?p=b).
  - (6) The provisions of [section 8351(b)(7)](/usc/5/8351.md?p=b-7)[^1] of this title shall apply with respect to a judge who has elected to contribute to the [Thrift Savings Fund](/usc/5/8471.md?p=5) under this section.

# §8440e. Members of the uniformed services

- (a) For purposes of this section—
  - (1) the term “basic pay” means basic pay payable under [section 204 of title 37](/usc/37/204.md);
  - (2) the term “full TSP member” means a [member](#a-3) described in [subsection (e)(1)](#e-1);
  - (3) the term “member” has the meaning given the term in [section 211 of title 37](/usc/37/211.md); and
  - (4) the term “Secretary concerned” has the meaning given the term in [section 101 of title 37](/usc/37/101.md).
- (b)
  - (1) Any [member](#a-3) eligible to participate in the Thrift Savings Plan by virtue of [section 211(b) of title 37](/usc/37/211.md?p=b) may contribute to the [Thrift Savings Fund](/usc/5/8471.md?p=5).
  - (2)
    - (A) Except as provided in [subparagraph (B)](#b-2-B), an election to contribute to the [Thrift Savings Fund](/usc/5/8471.md?p=5) under this section may be made as provided under [section 8432(b)](/usc/5/8432.md?p=b).
    - (B)
      - (i) Notwithstanding [subparagraph (A)](#b-2-A), any individual who is a [member](#a-3) as of the effective date that applies with respect to such individual under section 663 of the National Defense Authorization Act for Fiscal Year 2000 may make the first such election during the 60-day period beginning on such effective date.
      - (ii) An election made under this subparagraph shall take effect on the first day of the first applicable pay period beginning after the close of the 60-day period referred to in [clause (i)](#b-2-B-i).
- (c) Except as otherwise provided in this section, the provisions of this subchapter and subchapter VII shall apply with respect to [members](#a-3) making contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5), and such [members](#a-3) shall, for purposes of this subchapter and subchapter VII, be considered [employees](/usc/5/8401.md?p=11) within the meaning of [section 8401(11)](/usc/5/8401.md?p=11).
- (d)
  - (1)
    - (A) The amount contributed by a [member](#a-3) described in [section 211(a)(1) of title 37](/usc/37/211.md?p=a-1) for any pay period out of [basic pay](#a-1) may not exceed the maximum percentage of such [member](#a-3)’s [basic pay](#a-1) for such pay period allowable under [section 8440f](/usc/5/8440f.md).
    - (B) The amount contributed by a [member](#a-3) described in [section 211(a)(2) of title 37](/usc/37/211.md?p=a-2) for any pay period out of any compensation received under [section 206 of title 37](/usc/37/206.md) may not exceed the maximum percentage of such [member](#a-3)’s compensation for such pay period (received under such [section 206](/usc/37/206.md)) allowable under [section 8440f](/usc/5/8440f.md).
  - (2) A [member](#a-3) making contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) out of [basic pay](#a-1), or out of compensation under [section 206 of title 37](/usc/37/206.md), may also contribute (by direct transfer to the [Fund](/usc/5/8401.md?p=6)) any part of any special or incentive pay that such [member](#a-3) receives under [chapter 5](/usc/37/ch5.md) of title 37.
  - (3) Nothing in this section or [section 211 of title 37](/usc/37/211.md) shall be considered to waive any dollar limitation under the Internal Revenue Code of 1986 which otherwise applies with respect to the [Thrift Savings Fund](/usc/5/8471.md?p=5).
- (e) **Modernized Retirement System.—**
  - (1) **TSP contributions.—** Notwithstanding any other provision of law, the [Secretary concerned](#a-4) shall make contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5), in accordance with [section 8432](/usc/5/8432.md) (except to the extent the requirements under such section are modified by this subsection), for the benefit of a [member](#a-3)—
    - (A) who first enters a uniformed [service](/usc/5/8401.md?p=26) on or after January 1, 2018; or
    - (B) who—
      - (i) first entered a uniformed [service](/usc/5/8401.md?p=26) before January 1, 2018;
      - (ii) has completed fewer than 12 years of [service](/usc/5/8401.md?p=26) in the [uniformed services](/usc/5/2101.md?p=3) as of December 31, 2017; and
      - (iii) makes the election described in section [1409(b)(4)(B)](/usc/10/1409.md?p=b-4-B) or 12729(f)(2) of title 10 to receive Thrift Savings Plan contributions under this subsection in exchange for the reduced multipliers described in section [1409(b)(4)(A)](/usc/10/1409.md?p=b-4-A) or [12739(f)(1)](/usc/10/12739.md?p=f-1) of title 10, as applicable, for purposes of calculating the retired pay of the [member](#a-3).
  - (2) **Maximum amount.—** The amount contributed under this subsection by the [Secretary concerned](#a-4) for the benefit of a [full TSP member](#a-2) for any pay period shall not be more than 5 percent of the [member](#a-3)’s [basic pay](#a-1) for such pay period. Any such contribution under this subsection, though in accordance with [section 8432](/usc/5/8432.md) as provided in [paragraph (1)](#e-1), is instead of, and not in addition to, amounts contributable under [section 8432](/usc/5/8432.md) as provided in [section 8432(c)](/usc/5/8432.md?p=c).
  - (3) **Timing and duration of contributions.—**
    - (A) **Automatic contributions.—** The [Secretary concerned](#a-4) shall make a contribution described in [section 8432(c)(1)](/usc/5/8432.md?p=c-1) under this subsection for the benefit of a [member](#a-3) described in [paragraph (1)](#e-1) for any pay period during the period that—
      - (i) begins—
        - (I) on or after the day that is 60 days afer the date the [member](#a-3) first enters a uniformed [service](/usc/5/8401.md?p=26), in the case of a [member](#a-3) described in [paragraph (1)(A)](#e-1-A); or
        - (II) on or after the date the [member](#a-3) makes the election described in [paragraph (1)(B)](#e-1-B), in the case of a [member](#a-3) making such an election; and
      - (ii) ends on the day such [member](#a-3) completes 26 years of [service](/usc/5/8401.md?p=26) as a [member](#a-3) of the [uniformed services](/usc/5/2101.md?p=3).
    - (B) **Matching contributions.—** The [Secretary concerned](#a-4) shall make a contribution described in [section 8432(c)(2)](/usc/5/8432.md?p=c-2) under this subsection for the benefit of a [member](#a-3) described in [paragraph (1)](#e-1) for any pay period during the period that—
      - (i) begins—
        - (I) on or after the day that is 2 years and 1 day after the date the [member](#a-3) first enters a uniformed [service](/usc/5/8401.md?p=26), in the case of a [member](#a-3) described in [paragraph (1)(A)](#e-1-A); or
        - (II) on or after the date the [member](#a-3) makes the election described in [paragraph (1)(B)](#e-1-B), in the case of a [member](#a-3) making such an election; and
      - (ii) ends on the day such [member](#a-3) completes 26 years of [service](/usc/5/8401.md?p=26) as a [member](#a-3) of the [uniformed services](/usc/5/2101.md?p=3).
  - (4) **Protections for spouses and former spouses.—** [Section 8435](/usc/5/8435.md) shall apply to a [full TSP member](#a-2) in the same manner as such section is applied to an [employee](/usc/5/8401.md?p=11) or [Member](#a-3) under such section.

# §8440f. Maximum percentage allowable for certain participants

- (a) The maximum percentage allowable under this section shall be determined in accordance with the following table:

  | In the case of a pay period beginning<br>in fiscal year: | The maximum percentage<br>allowable is: |
  | --- | --- |
  | 2001 | 6 |
  | 2002 | 7 |
  | 2003 | 8 |
  | 2004 | 9 |
  | 2005 | 10 |
  | 2006 or thereafter | 100. |

- (b) Notwithstanding any limitation under this section, an eligible [participant](/usc/5/8471.md?p=3) (as defined by section 414(v) of the Internal Revenue Code of 1986) may make such additional contributions to the [Thrift Savings Fund](/usc/5/8471.md?p=5) as are permitted by such [section 414(v)](/usc/5/414.md) and regulations of the [Executive Director](/usc/5/8401.md?p=13) consistent therewith.

# §8441. Definitions


For the purpose of this subchapter—

- (1) the term “widow” means the surviving wife of an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), or of a former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), who—
  - (A) was married to him for at least 9 months immediately before his death; or
  - (B) is the mother of issue by that marriage;
- (2) the term “widower” means the surviving husband of an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), or of a former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), who—
  - (A) was married to her for at least 9 months immediately before her death; or
  - (B) is the father of issue by that marriage;
- (3) the term “dependent”, in the case of any [child](#4), means that the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2) involved was, at the time of death of the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2) either living with or contributing to the support of such [child](#4), as determined in accordance with such regulations as the [Office](/usc/5/8401.md?p=24) shall prescribe; and
- (4) the term “child” means—
  - (A) an unmarried [dependent](#3) [child](#4) under 18 years of age, including (i) an adopted [child](#4), (ii) a stepchild but only if the stepchild lived with the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2) in a regular parent-[child](#4) relationship, (iii) a recognized natural [child](#4), and (iv) a [child](#4) who lived with and for whom a petition of adoption was filed by an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2) and who is adopted by the [widow](#1) or [widower](#2) of the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2) after the death of such [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2);
  - (B) such unmarried [dependent](#3) [child](#4) regardless of age who is incapable of self-support because of mental or physical disability incurred before age 18; or
  - (C) such unmarried [dependent](#3) [child](#4) between 18 and 22 years of age who is a student regularly pursuing a full-time course of study or training in residence in a high school, trade school, technical or vocational institute, junior college, college, university, or comparable recognized educational institution.

  For the purpose of this paragraph and [section 8443](/usc/5/8443.md), a child whose 22nd birthday occurs before July 1 or after August 31 of a calendar year, and while regularly pursuing such a course of study or training, is deemed to have become 22 years of age on the first day of July after that birthday. A child who is a student is deemed not to have ceased to be a student during an interim between school years if the interim is not more than 5 months and if such child shows to the satisfaction of the [Office](/usc/5/8401.md?p=24) that such child has a bona fide intention of continuing to pursue a course of study or training in the same or different school during the school semester (or other period into which the school year is divided) immediately after the interim.


# §8442. Rights of a widow or widower

- (a)
  - (1) Except as provided in [subsection (g)](#g), if an [annuitant](/usc/5/8401.md?p=2) dies and is survived by a [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2), the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) is entitled to an annuity equal to 50 percent of an annuity computed under [section 8415](/usc/5/8415.md) with respect to the [annuitant](/usc/5/8401.md?p=2), (or one-half thereof, if designated for this purpose under [section 8419 of this title](/usc/5/8419.md)), unless—
    - (A) the right to an annuity was waived under [section 8416(a)](/usc/5/8416.md?p=a) (and no election was subsequently made under [section 8416(d)](/usc/5/8416.md?p=d) nullifying the waiver); or
    - (B) in the case of a marriage after retirement, the [annuitant](/usc/5/8401.md?p=2) did not file an election under section [8416(b)](/usc/5/8416.md?p=b) or [(c)](/usc/5/8416.md?p=c), as the case may be.
  - (2) A spouse acquired after retirement is entitled to an annuity under this subsection (as provided in [paragraph (1)](#a-1)) only upon electing this annuity instead of any other [survivor](/usc/5/8401.md?p=28) benefit to which such spouse may be entitled under this subchapter or [section 8424](/usc/5/8424.md) or under another retirement [system](/usc/5/8401.md?p=29) for [Government](/usc/5/8401.md?p=15) [employees](/usc/5/8401.md?p=11).
- (b)
  - (1) If an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) dies after completing at least 18 months of civilian [service](/usc/5/8401.md?p=26) creditable under [section 8411](/usc/5/8411.md) and is survived by a [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2), the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) is entitled to—
    - (A) an amount equal to the sum of—
      - (i) 50 percent of the final annual rate of [basic pay](/usc/5/8401.md?p=4) (or of the [average pay](/usc/5/8401.md?p=3), if higher) of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20); and
      - (ii) $15,000 as adjusted under [section 8462(e)](/usc/5/8462.md?p=e); and
    - (B) if the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) completed at least 10 years of [service](/usc/5/8401.md?p=26), an annuity equal to 50 percent of an annuity computed under [section 8415](/usc/5/8415.md) with respect to the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), but without regard to [subsection (f)](/usc/5/8415.md?p=f) of such section.
  - (2) The [Office](/usc/5/8401.md?p=24) shall prescribe regulations under which the total amount payable to a [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) under [paragraph (1)(A)](#b-1-A) may, at the election of the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2), be paid—
    - (A) in a lump sum; or
    - (B) on a monthly basis—
      - (i) over a period of 3 years beginning on the day after the [employee](/usc/5/8401.md?p=11)’s or [Member](/usc/5/8401.md?p=20)’s death; or
      - (ii) over any other period established under the regulations.

    Any method of payment provided for under [subparagraph (B)](#b-2-B) shall be designed such that the present value of the benefits provided under such method is actuarially equivalent to the present value of a lump-sum payment under [subparagraph (A)](#b-2-A).

  - (3) An amount payable under [paragraph (1)(A)](#b-1-A) shall not be considered to be part of an annuity for purposes of this chapter.
- (c)
  - (1) If a former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) dies after having separated from the [service](/usc/5/8401.md?p=26) with title to a deferred annuity under [section 8413](/usc/5/8413.md) but before having established a valid claim for an annuity, and is survived by a [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) to whom married on the date of separation, the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) may elect to receive—
    - (A) an annuity under [paragraph (2)](#c-2); or
    - (B) the [lump-sum credit](/usc/5/8401.md?p=19), if the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) is the individual who would be entitled to the [lump-sum credit](/usc/5/8401.md?p=19) and if such [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) files application therefor with the [Office](/usc/5/8401.md?p=24).
  - (2)
    - (A)
      - (i) Subject to [clause (ii)](#c-2-A-ii) and [subparagraph (B)(ii)](#c-2-B-ii), the annuity of the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) is equal to 50 percent of an annuity computed under [section 8415](/usc/5/8415.md) for the former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
      - (ii)
        - (I) In computing an amount under [section 8415](/usc/5/8415.md) for a former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) (described in [subclause (II)](#c-2-A-ii-II)) in order to compute the annuity for a [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) under this subsection, the computation under [section 8415](/usc/5/8415.md) shall be made as if the former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) had attained the applicable minimum retirement age under [section 8412(h)](/usc/5/8412.md?p=h).
        - (II) This clause applies with respect to a former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who dies before having attained the applicable minimum retirement age under [section 8412(h)](/usc/5/8412.md?p=h).
    - (B)
      - (i) Notwithstanding the first sentence of [subsection (d)(1)](#d-1), the annuity of the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) of a former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) under [subparagraph (A)(ii)](#c-2-A-ii) commences—
        - (I) on the day after the date on which the former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) would have attained age 62 (or, if applicable, either age 60 if the former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) completed at least 20 years of [service](/usc/5/8401.md?p=26), or the applicable minimum retirement age (under [section 8412(h)](/usc/5/8412.md?p=h)) if the former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) completed at least 30 years of [service](/usc/5/8401.md?p=26)); or
        - (II) if the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) so designates in the election, as of the day after the death of the former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
      - (ii) The present value of the annuity of a [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) who chooses the earlier commencement date under [clause (i)(II)](#c-2-B-i-II) shall be actuarially equivalent to the present value of an annuity computed for the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2), determined as if the commencement date under [clause (i)(I)](#c-2-B-i-I) were applicable.
  - (3)
    - (A) Paragraphs [(1)](#c-1) and [(2)](#c-2) shall apply only in the case of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who completes at least 10 years of [service](/usc/5/8401.md?p=26).
    - (B) Nothing in this subsection shall be considered to affect the provisions of this chapter relating to a [lump-sum credit](/usc/5/8401.md?p=19) in the case of the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) of a former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who dies after completing less than 10 years of [service](/usc/5/8401.md?p=26).
- (d)
  - (1) The annuity of a [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) under this section commences on the day after the death of the individual on whose [service](/usc/5/8401.md?p=26) such annuity is based. This annuity and the right thereto terminate on the last day of the month before the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2)—
    - (A) dies; or
    - (B) except as provided in [paragraph (3)](#d-3), remarries before becoming 55 years of age.
  - (2) In the case of a [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) whose annuity under this section is terminated because of remarriage before becoming 55 years of age, the annuity shall be restored at the same rate commencing on the day the remarriage is dissolved by death, divorce, or annulment, if—
    - (A) the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) elects to receive this annuity instead of any other [survivor](/usc/5/8401.md?p=28) benefit to which such [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) may be entitled (under this subchapter or [section 8424](/usc/5/8424.md) or under another retirement [system](/usc/5/8401.md?p=29) for [Government](/usc/5/8401.md?p=15) [employees](/usc/5/8401.md?p=11)) by reason of the remarriage; and
    - (B) any lump sum paid on termination of the annuity is returned to the [Fund](/usc/5/8401.md?p=6).
  - (3) [Paragraph (1)(B)](#d-1-B) (relating to termination of a [survivor](/usc/5/8401.md?p=28) annuity because of a remarriage before age 55) shall not apply if the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) was married for at least 30 years to the individual on whose [service](/usc/5/8401.md?p=26) the [survivor](/usc/5/8401.md?p=28) annuity is based.
- (e) The requirement in paragraphs [(1)(A)](/usc/5/8441.md?p=1-A) and [(2)(A)](/usc/5/8441.md?p=2-A) of section 8441 that the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) of an [annuitant](/usc/5/8401.md?p=2), [employee](/usc/5/8401.md?p=11), or [Member](/usc/5/8401.md?p=20), or of a former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), have been married to such individual for at least 9 months immediately before the death of the individual in order to qualify as the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) of such individual shall be deemed satisfied in any case in which the individual dies within the applicable 9-month period, if—
  - (1) the death of the individual was accidental; or
  - (2) the surviving spouse of the individual had been previously married to such individual and subsequently divorced, and the aggregate time married is at least 9 months.
- (f)
  - (1) Subject to [paragraph (4)](#f-4), a [survivor](/usc/5/8401.md?p=28) who is entitled to an annuity under [subsection (a)](#a) shall also be entitled to a supplementary annuity under this subsection.
  - (2) A supplementary annuity under this subsection shall be equal to the lesser of—
    - (A) the amount by which the [survivor](/usc/5/8401.md?p=28)’s [assumed CSRS annuity](#f-5) exceeds the annuity payable to such [survivor](/usc/5/8401.md?p=28) under [subsection (a)](#a); or
    - (B) the amount determined under [paragraph (3)](#f-3).
  - (3)
    - (A) Except as provided in [subparagraph (B)](#f-3-B), the amount under this paragraph for a [survivor](/usc/5/8401.md?p=28) is the amount of [widow](/usc/5/8441.md?p=1)’s or [widower](/usc/5/8441.md?p=2)’s insurance benefits which would be payable to such [survivor](/usc/5/8401.md?p=28) under title II of the Social Security Act (without regard to sections 202(e)(7), 202(f)(2), and 203 of such Act) based on the wages and self-employment income of the deceased [annuitant](/usc/5/8401.md?p=2), and determined—
      - (i) as of the date on which the [annuitant](/usc/5/8401.md?p=2) died; and
      - (ii) as if the [survivor](/usc/5/8401.md?p=28) had attained age 60 and made application for those benefits under subsection (e) or (f) of section 202 of such Act, as the case may be.
    - (B) Any computation or determination under this paragraph shall be made in accordance with the applicable provisions of the Social Security Act, except that in computing any primary insurance amount under section 215 of such Act for purposes of determining an amount under this subsection, subparagraphs [(A)](/usc/5/8421.md?p=b-2-A) and [(C)](/usc/5/8421.md?p=b-2-C) of section 8421(b)(2) shall apply.
  - (4) A supplementary annuity under this subsection—
    - (A) shall be payable to a [survivor](/usc/5/8401.md?p=28) only for calendar months ending before the calendar month in which such [survivor](/usc/5/8401.md?p=28) first satisfies the minimum age requirement under section 202(e)(1)(B)(i) or 202(f)(1)(B)(i) of the Social Security Act, as the case may be;
    - (B) shall not be payable to a [survivor](/usc/5/8401.md?p=28) who would not be entitled to benefits under subsection (e) or (f) of section 202 of the Social Security Act based on the wages and self-employment income of the deceased [annuitant](/usc/5/8401.md?p=2) (determined, as of the date of the [annuitant](/usc/5/8401.md?p=2)’s death, as if the [survivor](/usc/5/8401.md?p=28) had attained age 60 and made appropriate application for benefits, but without regard to any restriction under either such subsection relating to remarriage); and
    - (C) shall not be payable to a [survivor](/usc/5/8401.md?p=28) for any calendar month in which such [survivor](/usc/5/8401.md?p=28) is entitled (or would, on proper application, be entitled) to benefits under section 202(g) of the Social Security Act (relating to mother’s and father’s insurance benefits), or under section 202(e) or (f) of such Act by reason of having become disabled, based on the wages and self-employment income of the deceased [annuitant](/usc/5/8401.md?p=2).
  - (5) For the purpose of this subsection, the term “assumed CSRS annuity”, as used in the case of a [survivor](/usc/5/8401.md?p=28), means the amount of the annuity to which such [survivor](/usc/5/8401.md?p=28) would be entitled under subchapter III of [chapter 83](/usc/5/chptIII-sptG-ch83.md) of this title based on the [service](/usc/5/8401.md?p=26) of the deceased [annuitant](/usc/5/8401.md?p=2), determined—
    - (A) as of the day after the date of the [annuitant](/usc/5/8401.md?p=2)’s death;
    - (B) as if the [survivor](/usc/5/8401.md?p=28) had made appropriate application therefor; and
    - (C) as if the [service](/usc/5/8401.md?p=26) of the deceased [annuitant](/usc/5/8401.md?p=2) were creditable under such subchapter.
  - (6) An amount payable under this subsection shall be adjusted under [section 8462](/usc/5/8462.md) and shall otherwise be treated under this chapter in the same way as an amount payable under [subsection (a)](#a).
- (g)
  - (1) If the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) of an [annuitant](/usc/5/8401.md?p=2) under [section 8452](/usc/5/8452.md) (hereinafter in this subsection referred to as a “disability [annuitant](/usc/5/8401.md?p=2)”) is determined under [subsection (a)](#a) to be entitled to an annuity based on the [service](/usc/5/8401.md?p=26) of such disability [annuitant](/usc/5/8401.md?p=2), the annuity of the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) shall be equal to 50 percent of the amount determined under [paragraph (2)](#g-2) (or one-half thereof if designated for this purpose under [section 8419 of this title](/usc/5/8419.md)), rather than of the amount referred to in [subsection (a)](#a).
  - (2)
    - (A) Except as provided in [subparagraph (B)](#g-2-B), the amount on which the annuity of the [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) of a disability [annuitant](/usc/5/8401.md?p=2) is based shall be the amount of the annuity to which such disability [annuitant](/usc/5/8401.md?p=2) was entitled, as computed under [section 8452](/usc/5/8452.md) (including appropriate reduction under [subsection (a)(2)](/usc/5/8452.md?p=a-2) of such section and any adjustments under [section 8462](/usc/5/8462.md) allowed under [section 8452](/usc/5/8452.md)), as of the day before the date of the disability [annuitant](/usc/5/8401.md?p=2)’s death.
    - (B)
      - (i) In the case of a [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) entitled to an annuity based on the [service](/usc/5/8401.md?p=26) of a disability [annuitant](/usc/5/8401.md?p=2) who dies before age 62, the amount under [clause (ii)](#g-2-B-ii) shall apply instead of the amount which would otherwise apply under [subparagraph (A)](#g-2-A).
      - (ii)
        - (I) Subject to [subclause (II)](#g-2-B-ii-II), the amount of the annuity to which the disability [annuitant](/usc/5/8401.md?p=2) was entitled as of the day before the date of death shall be considered to be the amount which would be computed with respect to such disability [annuitant](/usc/5/8401.md?p=2) under [section 8452(b)](/usc/5/8452.md?p=b) if the disability [annuitant](/usc/5/8401.md?p=2) had attained age 62 on the day before date of death.
        - (II) For purposes of any such computation under [section 8452(b)(2)](/usc/5/8452.md?p=b-2) pursuant to this clause, creditable [service](/usc/5/8401.md?p=26) shall (in addition to the [service](/usc/5/8401.md?p=26) which would otherwise be used under [subparagraph (B)(i)](/usc/5/8452.md?p=b-2-B-i) of such section) include the period of time between date of death and the date of the sixty-second anniversary of the birth of the [annuitant](/usc/5/8401.md?p=2), and [average pay](/usc/5/8401.md?p=3) shall be adjusted in accordance with [subparagraph (B)(ii)](/usc/5/8452.md?p=b-2-B-ii) of such section only through date of death.
- (h) The following rules shall apply notwithstanding any other provision of this section:
  - (1) The annuity payable under this section to a [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) may not exceed the difference between—
    - (A) the amount of the annuity which would otherwise be payable to such [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) under this section; and
    - (B) the amount of the annuity payable to any [former spouse](/usc/5/8401.md?p=12) of the deceased [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), based on an election made under [section 8417(b)](/usc/5/8417.md?p=b) or a [court](/usc/5/8401.md?p=7) order previously issued or agreement previously entered into as described in [section 8445(a)](/usc/5/8445.md?p=a).
  - (2) The amount payable under [subsection (b)(1)(A)](#b-1-A) to a [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) may not exceed the difference between—
    - (A) the amount which would otherwise be payable to such [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) under such subsection; and
    - (B) the portion of such amount payable to any [former spouse](/usc/5/8401.md?p=12) of the deceased [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), based on a [court](/usc/5/8401.md?p=7) order previously issued or agreement previously entered into.
  - (3) A [lump-sum credit](/usc/5/8401.md?p=19) under [subsection (c)(2)](#c-2) shall be subject to the same terms and conditions as apply with respect to a [lump-sum credit](/usc/5/8401.md?p=19) under [section 8424(b)](/usc/5/8424.md?p=b).

# §8443. Rights of a child

- (a)
  - (1) If an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) dies after completing at least 18 months of civilian [service](/usc/5/8401.md?p=26) which is creditable under [section 8411](/usc/5/8411.md), or an [annuitant](/usc/5/8401.md?p=2) dies, each surviving [child](/usc/5/8441.md?p=4) is, for any month, entitled to an annuity equal to—
    - (A) the amount by which the applicable amount under [paragraph (2)](#a-2) for such month exceeds the applicable amount under [paragraph (3)](#a-3) for such month, divided by
    - (B) the number of children entitled to a payment under this section for such month.
  - (2) The applicable amount under this paragraph for any month is the total amount to which the surviving [child](/usc/5/8441.md?p=4) or children (as the case may be) of the [annuitant](/usc/5/8401.md?p=2), [employee](/usc/5/8401.md?p=11), or [Member](/usc/5/8401.md?p=20) would be entitled for such month under subchapter III of [chapter 83](/usc/5/chptIII-sptG-ch83.md) (including any adjustment based on [section 8340](/usc/5/8340.md)) based on the [service](/usc/5/8401.md?p=26) of such [annuitant](/usc/5/8401.md?p=2), [employee](/usc/5/8401.md?p=11), or [Member](/usc/5/8401.md?p=20), if the [service](/usc/5/8401.md?p=26) of such [annuitant](/usc/5/8401.md?p=2), [employee](/usc/5/8401.md?p=11), or [Member](/usc/5/8401.md?p=20) were creditable under such subchapter.
  - (3) The applicable amount under this paragraph for any month is the total amount of [child](/usc/5/8441.md?p=4)’s insurance benefits which are payable (or would, on proper application, be payable) under title II of the Social Security Act for such month based on the wages and self-employment income of such [annuitant](/usc/5/8401.md?p=2), [employee](/usc/5/8401.md?p=11), or [Member](/usc/5/8401.md?p=20).
- (b) The annuity of a [child](/usc/5/8441.md?p=4) under this subchapter—
  - (1) commences on the day after the [annuitant](/usc/5/8401.md?p=2), [employee](/usc/5/8401.md?p=11), or [Member](/usc/5/8401.md?p=20) dies;
  - (2) commences or resumes on the first day of the month in which the [child](/usc/5/8441.md?p=4) later becomes or again becomes a student as described by [section 8441(4)](/usc/5/8441.md?p=4), if any lump sum paid is returned to the [Fund](/usc/5/8401.md?p=6); or
  - (3) commences or resumes on the first day of the month in which the [child](/usc/5/8441.md?p=4) later becomes or again becomes incapable of self-support because of a mental or physical disability incurred before age 18 (or a later recurrence of such disability), if any lump sum paid is returned to the [Fund](/usc/5/8401.md?p=6).

  This annuity and the right thereto terminate on the last day of the month before the [child](/usc/5/8441.md?p=4)—

  - (A) becomes 18 years of age unless then a student as described or incapable of self-support;
  - (B) becomes capable of self-support after becoming 18 years of age unless then such a student;
  - (C) becomes 22 years of age if then such a student and capable of self-support;
  - (D) ceases to be such a student after becoming 18 years of age unless then incapable of self-support; or
  - (E) dies or marries;

  whichever occurs first. On the death of the surviving wife or husband, or former wife or husband, or termination of the annuity of a [child](/usc/5/8441.md?p=4), the annuity of any other [child](/usc/5/8441.md?p=4) or children shall be recomputed and paid as though the wife or husband, former wife or husband, or [child](/usc/5/8441.md?p=4) had not survived the [annuitant](/usc/5/8401.md?p=2), [employee](/usc/5/8401.md?p=11), or [Member](/usc/5/8401.md?p=20). If the annuity of a [child](/usc/5/8441.md?p=4) under this subchapter terminates under [subparagraph (E)](#b-E) because of marriage, then, if such marriage ends, such annuity shall resume on the first day of the month in which it ends, but only if any lump sum paid is returned to the [Fund](/usc/5/8401.md?p=6), and that individual is not otherwise ineligible for such annuity.


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


The annuity of a [survivor](/usc/5/8401.md?p=28) named under [section 8420(a)](/usc/5/8420.md?p=a) is 55 percent of the reduced annuity of the retired [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) determined under [paragraph (2)](/usc/5/8420.md?p=a-2) of such section 8420(a). The annuity of the [survivor](/usc/5/8401.md?p=28) commences on the day after the retired [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) dies. This annuity and the right thereto terminate on the last day of the month before the [survivor](/usc/5/8401.md?p=28) dies.


# §8445. Rights of a former spouse

- (a) Subject to [subsections (b) through (e)](#b..e), a [former spouse](/usc/5/8401.md?p=12) of a deceased [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2) (or of a former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who dies after having separated from the [service](/usc/5/8401.md?p=26) with title to a deferred annuity under [section 8413](/usc/5/8413.md) but before having established a valid claim for annuity) is entitled to an annuity under this section, if and to the extent expressly provided for in an election under [section 8417(b)](/usc/5/8417.md?p=b), or in the terms of any decree of divorce or annulment or any [court](/usc/5/8401.md?p=7) order or [court](/usc/5/8401.md?p=7)-approved property settlement agreement incident to such decree.
- (b)
  - (1) The annuity payable to a [former spouse](/usc/5/8401.md?p=12) under this section may not exceed the difference between—
    - (A) the amount applicable in the case of such [former spouse](/usc/5/8401.md?p=12), as determined under [paragraph (2)](#b-2); and
    - (B) the amount of any annuity payable under this section to any other [former spouse](/usc/5/8401.md?p=12) of the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), based on an election previously made under [section 8417(b)](/usc/5/8417.md?p=b), or a [court](/usc/5/8401.md?p=7) order previously issued or agreement previously entered into as described in [subsection (a)](#a).
  - (2) The applicable amount, for purposes of [paragraph (1)(A)](#b-1-A) in the case of a [former spouse](/usc/5/8401.md?p=12), is the amount of the annuity which would be payable under the provisions of [section 8442](/usc/5/8442.md) (including [subsection (f)](/usc/5/8442.md?p=f) of such section, but without regard to [subsection (h)](/usc/5/8442.md?p=h) of such section) if such [former spouse](/usc/5/8401.md?p=12) were a [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) entitled to an annuity under such provisions based on the [service](/usc/5/8401.md?p=26) of the deceased [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
- (c) The commencement and termination of an annuity payable under this section shall be governed by the terms of the applicable order, decree, agreement, or election, as the case may be, except that any such annuity—
  - (1) shall not commence before—
    - (A) the day after the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), dies; or
    - (B) the first day of the second month beginning after the date on which the [Office](/usc/5/8401.md?p=24) receives written notice of the order, decree, agreement, or election, as the case may be, together with such additional information or documentation as the [Office](/usc/5/8401.md?p=24) may prescribe;

    whichever is later; and

  - (2) except as provided in [subsection (h)](#h), shall terminate no later than the last day of the month before the [former spouse](/usc/5/8401.md?p=12) remarries before becoming 55 years of age or dies.
- (d) For purposes of this chapter, a modification in a decree, order, agreement, or election referred to in [subsection (a)](#a) shall not be effective—
  - (1) if such modification is made after the retirement or death of the [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), concerned; and
  - (2) to the extent that such modification involves an annuity under this section.
- (e) For purposes of this chapter, a decree, order, agreement, or election referred to in [subsection (a)](#a) shall not be effective, in the case of a [former spouse](/usc/5/8401.md?p=12), to the extent that it is inconsistent with any joint waiver previously executed with respect to such [former spouse](/usc/5/8401.md?p=12) under [section 8416(a)](/usc/5/8416.md?p=a).
- (f)
  - (1) Any amount under [section 8442(b)(1)(A)](/usc/5/8442.md?p=b-1-A) which would otherwise be payable to a [widow](/usc/5/8441.md?p=1) or [widower](/usc/5/8441.md?p=2) based on the [service](/usc/5/8401.md?p=26) of another individual shall be paid (in whole or in part) by the [Office](/usc/5/8401.md?p=24) to a [former spouse](/usc/5/8401.md?p=12) of such individual if and to the extent expressly provided for in the terms of a [court](/usc/5/8401.md?p=7) decree of divorce, annulment, or legal separation, or the terms of a [court](/usc/5/8401.md?p=7) order or [court](/usc/5/8401.md?p=7)-approved property settlement incident to any decree of divorce, annulment, or legal separation.
  - (2) [Paragraph (1)](#f-1) shall apply only to payments made by the [Office](/usc/5/8401.md?p=24) after the date of receipt in the [Office](/usc/5/8401.md?p=24) of written notice of such decree, order, or agreement, and such additional information and documentation as the [Office](/usc/5/8401.md?p=24) may prescribe.
- (g) Any payment under this section to a person bars recovery by any other person.
- (h)
  - (1) [Subsection (c)(2)](#c-2) (to the extent that it provides for termination of a [survivor](/usc/5/8401.md?p=28) annuity because of a remarriage before age 55) shall not apply if the [former spouse](/usc/5/8401.md?p=12) was married for at least 30 years to the individual on whose [service](/usc/5/8401.md?p=26) the [survivor](/usc/5/8401.md?p=28) annuity is based.
  - (2) A remarriage described in [paragraph (1)](#h-1) shall not be taken into [account](/usc/5/8401.md?p=1) for purposes of [section 8419(b)(1)(B)](/usc/5/8419.md?p=b-1-B) or any other provision of this chapter which the [Office](/usc/5/8401.md?p=24) may by regulation identify in order to carry out the purposes of this subsection.

# §8451. Disability retirement

- (a)
  - (1)
    - (A) An [employee](/usc/5/8401.md?p=11) who completes at least 18 months of civilian [service](/usc/5/8401.md?p=26) creditable under [section 8411](/usc/5/8411.md) and has become disabled shall be retired on the [employee](/usc/5/8401.md?p=11)’s own application or on application by the [employee](/usc/5/8401.md?p=11)’s [agency](/usc/5/500.md?p=a-1).
    - (B) For purposes of this subsection, an [employee](/usc/5/8401.md?p=11) shall be considered disabled only if the [employee](/usc/5/8401.md?p=11) is found by the [Office](/usc/5/8401.md?p=24) to be unable, because of disease or injury, to render useful and efficient [service](/usc/5/8401.md?p=26) in the [employee](/usc/5/8401.md?p=11)’s [position](/usc/5/5531.md?p=2).
  - (2)
    - (A) Notwithstanding [paragraph (1)](#a-1), an [employee](/usc/5/8401.md?p=11) shall not be eligible for disability retirement under this section if the [employee](/usc/5/8401.md?p=11) has declined a reasonable offer of reassignment to a vacant [position](/usc/5/5531.md?p=2) in the [employee](/usc/5/8401.md?p=11)’s [agency](/usc/5/500.md?p=a-1) for which the [employee](/usc/5/8401.md?p=11) is qualified if the [position](/usc/5/5531.md?p=2)—
      - (i) is at the same grade (or pay level) as the [employee](/usc/5/8401.md?p=11)’s most recent grade (or pay level) or higher;
      - (ii) is within the [employee](/usc/5/8401.md?p=11)’s commuting area; and
      - (iii) is one in which the [employee](/usc/5/8401.md?p=11) would be able to render useful and efficient [service](/usc/5/8401.md?p=26).
    - (B) An [employee](/usc/5/8401.md?p=11) who is applying for disability retirement under this subchapter shall be considered for reassignment by the [employee](/usc/5/8401.md?p=11)’s [agency](/usc/5/500.md?p=a-1) to a vacant [position](/usc/5/5531.md?p=2) described in [subparagraph (A)](#a-2-A) in accordance with such procedures as the [Office](/usc/5/8401.md?p=24) shall by regulation prescribe.
    - (C) An [employee](/usc/5/8401.md?p=11) is entitled to appeal to the Merit [Systems](/usc/5/8401.md?p=29) Protection [Board](/usc/5/8401.md?p=5) under [section 7701](/usc/5/7701.md) any determination that the [employee](/usc/5/8401.md?p=11) is not unable, because of disease or injury, to render useful and efficient [service](/usc/5/8401.md?p=26) in a [position](/usc/5/5531.md?p=2) to which the [employee](/usc/5/8401.md?p=11) has declined reassignment under this section.
    - (D) For purposes of [subparagraph (A)](#a-2-A), an [employee](/usc/5/8401.md?p=11) of the United States Postal [Service](/usc/5/8401.md?p=26) shall not be considered qualified for a [position](/usc/5/5531.md?p=2) if such [position](/usc/5/5531.md?p=2) is in a different craft or if reassignment to such [position](/usc/5/5531.md?p=2) would be inconsistent with the terms of a collective-bargaining agreement covering the [employee](/usc/5/8401.md?p=11).
- (b) A [Member](/usc/5/8401.md?p=20) who completes at least 18 months of [service](/usc/5/8401.md?p=26) as a [Member](/usc/5/8401.md?p=20) and is found by the [Office](/usc/5/8401.md?p=24) to be disabled for useful and efficient [service](/usc/5/8401.md?p=26) as a [Member](/usc/5/8401.md?p=20) because of disease or injury shall be retired on the [Member](/usc/5/8401.md?p=20)’s own application.
- (c) An [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) retiring under this section is entitled to an annuity computed under [section 8452](/usc/5/8452.md).

# §8452. Computation of disability annuity

- (a)
  - (1)
    - (A) Except as provided in [paragraph (2)](#a-2), or subsection [(b)](#b), [(c)](#c), or [(d)](#d), the annuity of an [annuitant](/usc/5/8401.md?p=2) under this subchapter—
      - (i) for the period beginning on the date on which such annuity commences, or is restored (as described in section [8455(b)(2)](/usc/5/8455.md?p=b-2) or [(3)](/usc/5/8455.md?p=b-3)), and ending at the end of the twelfth month beginning on or after such date, shall be equal to 60 percent of the [annuitant](/usc/5/8401.md?p=2)’s [average pay](/usc/5/8401.md?p=3); and
      - (ii) after the end of the period referred to in [clause (i)](#a-1-A-i), shall be equal to 40 percent of the [annuitant](/usc/5/8401.md?p=2)’s [average pay](/usc/5/8401.md?p=3).
    - (B) An annuity computed under this paragraph—
      - (i) shall not, during any period referred to in [subparagraph (A)(i)](#a-1-A-i), be adjusted under [section 8462](/usc/5/8462.md); but
      - (ii) shall, after the end of any period referred to in [subparagraph (A)(i)](#a-1-A-i), be adjusted to reflect all adjustments made under [section 8462(b)](/usc/5/8462.md?p=b) after the end of the period referred to in [subparagraph (A)(i)](#a-1-A-i), whether the amount actually payable to the [annuitant](/usc/5/8401.md?p=2) under this section in any month is determined under this subsection or otherwise.
  - (2)
    - (A) For any month in which an [annuitant](/usc/5/8401.md?p=2) is entitled both to an annuity under this subchapter as computed under [paragraph (1)](#a-1) and to a disability insurance benefit under section 223 of the Social Security Act, the [annuitant](/usc/5/8401.md?p=2)’s annuity for such month (as so computed) shall—
      - (i) if such month occurs during a period referred to in [paragraph (1)(A)(i)](#a-1-A-i), be reduced by 100 percent of the [annuitant](/usc/5/8401.md?p=2)’s assumed disability insurance benefit for such month; or
      - (ii) if such month occurs other than during a period referred to in [paragraph (1)(A)(i)](#a-1-A-i), be reduced by 60 percent of the [annuitant](/usc/5/8401.md?p=2)’s assumed disability insurance benefit for such month;

      except that an annuity may not be reduced below zero by reason of this paragraph.

    - (B)
      - (i) For purposes of this paragraph, the assumed disability insurance benefit of an [annuitant](/usc/5/8401.md?p=2) for any month shall be equal to—
        - (I) the amount of the disability insurance benefit to which the [annuitant](/usc/5/8401.md?p=2) is entitled under section 223 of the Social Security Act for the month in which the annuity under this subchapter commences, or is restored, or, if no entitlement to such disability insurance benefits exists for such month, the first month thereafter for which the [annuitant](/usc/5/8401.md?p=2) is entitled both to an annuity under this subchapter and disability insurance benefits under section 223 of the Social Security Act, adjusted by
        - (II) all adjustments made under [section 8462(b)](/usc/5/8462.md?p=b) after the end of the period referred to in [paragraph (1)(A)(i)](#a-1-A-i) (or, if later, after the end of the month preceding the first month for which the [annuitant](/usc/5/8401.md?p=2) is entitled both to an annuity under this subchapter and disability insurance benefits under section 223 of the Social Security Act) and before the start of the month involved (without regard to whether the [annuitant](/usc/5/8401.md?p=2)’s annuity was affected by any of those adjustments).
      - (ii) For purposes of applying section 224 of the Social Security Act to the assumed disability insurance benefit used to compute the reduction under this paragraph, the amount of the annuity under this subchapter which is considered shall be the amount of the annuity as determined before the application of this paragraph.
  - (3) [Section 8462](/usc/5/8462.md) shall apply with respect to amounts under this subsection only as provided in paragraphs [(1)](#a-1) and [(2)](#a-2).
- (b)
  - (1) Except as provided in [subsection (d)](#d), if an [annuitant](/usc/5/8401.md?p=2) is entitled to an annuity under this subchapter as of the day before the date of the sixty-second anniversary of the [annuitant](/usc/5/8401.md?p=2)’s birth (hereinafter in this section referred to as the [annuitant](/usc/5/8401.md?p=2)’s “redetermination date”), such annuity shall be redetermined by the [Office](/usc/5/8401.md?p=24) in accordance with [paragraph (2)](#b-2). Effective as of the [annuitant](/usc/5/8401.md?p=2)’s redetermination date, the annuity (as so redetermined) shall be in lieu of any annuity to which such [annuitant](/usc/5/8401.md?p=2) would otherwise be entitled under this subchapter.
  - (2)
    - (A) An annuity redetermined under this subsection shall be equal to the amount of the annuity to which the [annuitant](/usc/5/8401.md?p=2) would be entitled under [section 8415](/usc/5/8415.md), taking into [account](/usc/5/8401.md?p=1) the provisions of [subparagraph (B)](#b-2-B).
    - (B) In performing a computation under this paragraph—
      - (i) creditable [service](/usc/5/8401.md?p=26) of an [annuitant](/usc/5/8401.md?p=2) shall be increased by including any period (or periods) before the [annuitant](/usc/5/8401.md?p=2)’s redetermination date during which the [annuitant](/usc/5/8401.md?p=2) was entitled to an annuity under this subchapter; and
      - (ii) the [average pay](/usc/5/8401.md?p=3) which would otherwise be used shall be adjusted to reflect all adjustments made under [section 8462(b)](/usc/5/8462.md?p=b) with respect to any period (or periods) referred to in [clause (i)](#b-2-B-i) (without regard to whether the [annuitant](/usc/5/8401.md?p=2)’s annuity was affected by any of those adjustments).
- (c) Except as provided in [subsection (d)](#d), the annuity of an [annuitant](/usc/5/8401.md?p=2) under this subchapter shall be computed under [section 8415](/usc/5/8415.md) if—
  - (1) such annuity commences, or is restored, beginning on or after the redetermination date of the [annuitant](/usc/5/8401.md?p=2); or
  - (2) as of the day on which such annuity commences, or is restored, the [annuitant](/usc/5/8401.md?p=2) satisfies the age and [service](/usc/5/8401.md?p=26) requirements for entitlement to an annuity under [section 8412](/usc/5/8412.md) (other than [subsection (g)](/usc/5/8412.md?p=g) of such section).
- (d)
  - (1) The annuity to which an [annuitant](/usc/5/8401.md?p=2) is entitled under this section (after the reduction under [subsection (a)(2)](#a-2), if applicable, has been made) shall not be less than the amount of an annuity computed under [section 8415](/usc/5/8415.md) (excluding [subsection (h)](/usc/5/8415.md?p=h) of such section).
  - (2) In applying this subsection with respect to any [annuitant](/usc/5/8401.md?p=2), the amount of an annuity so computed under [section 8415](/usc/5/8415.md) shall be adjusted under [section 8462](/usc/5/8462.md) (including [subsection (c)](#c) thereof)—
    - (A) to the same extent, and otherwise in the same manner, as if it were an annuity—
      - (i) subject to adjustment under such section; and
      - (ii) with a commencement date coinciding with the date the [annuitant](/usc/5/8401.md?p=2)’s annuity commenced or was restored under this subchapter, as the case may be; and
    - (B) whether the amount actually payable to the [annuitant](/usc/5/8401.md?p=2) under this section in any month is determined under this subsection or otherwise.

# §8453. Application


A claim may be allowed under this subchapter only if application is filed with the [Office](/usc/5/8401.md?p=24) before the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) is separated from the [service](/usc/5/8401.md?p=26) or within 1 year thereafter. This time limitation may be waived by the [Office](/usc/5/8401.md?p=24) for an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) who, at the date of separation from [service](/usc/5/8401.md?p=26) or within 1 year thereafter, is mentally incompetent if the application is filed with the [Office](/usc/5/8401.md?p=24) within 1 year from the date of restoration of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) to competency or the appointment of a fiduciary, whichever is earlier.


# §8454. Medical examination


An [annuitant](/usc/5/8401.md?p=2) receiving a disability retirement annuity from the [Fund](/usc/5/8401.md?p=6) shall be examined under the direction of the [Office](/usc/5/8401.md?p=24)—

- (1) at the end of 1 year from the date of the disability retirement; and
- (2) annually thereafter until becoming 60 years of age;

unless the disability is permanent in character. If the [annuitant](/usc/5/8401.md?p=2) fails to submit to examination as required by this section, payment of the annuity shall be suspended until continuance of the disability is satisfactorily established.


# §8455. Recovery; restoration of earning capacity

- (a)
  - (1) If an [annuitant](/usc/5/8401.md?p=2) receiving a disability retirement annuity from the [Fund](/usc/5/8401.md?p=6) recovers from the disability before becoming 60 years of age, payment of the annuity terminates on reemployment by the [Government](/usc/5/8401.md?p=15) or 1 year after the date on which the [Office](/usc/5/8401.md?p=24) determines that the [annuitant](/usc/5/8401.md?p=2) has recovered, whichever is earlier.
  - (2) If an [annuitant](/usc/5/8401.md?p=2) receiving a disability annuity from the [Fund](/usc/5/8401.md?p=6), before becoming 60 years of age, is restored to an earning capacity fairly comparable to the current rate of pay of the [position](/usc/5/5531.md?p=2) occupied at the time of retirement, payment of the annuity terminates 180 days after the end of the calendar year in which earning capacity is so restored. Earning capacity is deemed restored if in any calendar year the income of the [annuitant](/usc/5/8401.md?p=2) from wages or self-employment or both equals at least 80 percent of the current rate of pay of the [position](/usc/5/5531.md?p=2) occupied immediately before retirement.
- (b)
  - (1) If an [annuitant](/usc/5/8401.md?p=2) whose annuity is terminated under [subsection (a)](#a) is not reemployed in a [position](/usc/5/5531.md?p=2) in which that individual is subject to this chapter, such individual is deemed, except for [service](/usc/5/8401.md?p=26) credit, to have been involuntarily separated from the [service](/usc/5/8401.md?p=26) for the purpose of subchapter II of this chapter as of the date of termination of the disability annuity, and after that termination is entitled to annuity under the applicable provisions of such subchapter.
  - (2) If an [annuitant](/usc/5/8401.md?p=2) whose annuity is terminated under [subsection (a)(2)](#a-2)—
    - (A) is not reemployed in a [position](/usc/5/5531.md?p=2) subject to this chapter; and
    - (B) has not recovered from the disability for which that individual was retired;

    the annuity of such individual shall be restored at the applicable rate under [section 8452](/usc/5/8452.md) effective the first of the year following any calendar year in which such individual’s income from wages or self-employment or both is less than 80 percent of the current rate of pay of the [position](/usc/5/5531.md?p=2) occupied immediately before retirement.

  - (3) If an [annuitant](/usc/5/8401.md?p=2) whose annuity is terminated because of a medical finding that the individual has recovered from disability is not reemployed in a [position](/usc/5/5531.md?p=2) in which such individual is subject to this chapter, the annuity of such individual shall be restored at the applicable rate under [section 8452](/usc/5/8452.md) effective from the date on which the [Office](/usc/5/8401.md?p=24) determines that there has been a recurrence of the disability.
  - (4) Paragraphs [(2)](#b-2) and [(3)](#b-3) shall not apply in the case of an [annuitant](/usc/5/8401.md?p=2) receiving an annuity from the [Fund](/usc/5/8401.md?p=6) under subchapter II of this chapter.

# §8456. Military reserve technicians

- (a)
  - (1) Except as provided in paragraph [(2)](#a-2) or [(3)](#a-3), an individual shall be retired under this subchapter if the individual—
    - (A) is separated from employment as a military reserve technician by reason of a disability that disqualifies the individual from membership in a reserve component of the [Armed Forces](/usc/5/2101.md?p=2) specified in [section 10101 of title 10](/usc/10/10101.md) or from holding the military grade required for such employment;
    - (B) is not considered to be disabled under [section 8451(a)(1)(B)](/usc/5/8451.md?p=a-1-B);
    - (C) is not appointed to a [position](/usc/5/5531.md?p=2) in the [Government](/usc/5/8401.md?p=15) (whether under [subsection (b)](#b) or otherwise); and
    - (D) has not declined an offer of an appointment to a [position](/usc/5/5531.md?p=2) in the [Government](/usc/5/8401.md?p=15) under [subsection (b)](#b).
  - (2) Payment of any annuity for an individual pursuant to this section terminates—
    - (A) on the date the individual is appointed to a [position](/usc/5/5531.md?p=2) in the [Government](/usc/5/8401.md?p=15) (whether pursuant to [subsection (b)](#b) or otherwise);
    - (B) on the date the individual declines an offer of appointment to a [position](/usc/5/5531.md?p=2) in the [Government](/usc/5/8401.md?p=15) under [subsection (b)](#b); or
    - (C) as provided under [section 8455(a)](/usc/5/8455.md?p=a).
  - (3) An individual eligible to retire under [section 8414(c)](/usc/5/8414.md?p=c) shall not be eligible to retire under this section.
- (b) Any individual applying for or receiving any annuity pursuant to this section shall, in accordance with regulations prescribed by the [Office](/usc/5/8401.md?p=24), be considered by any [agency](/usc/5/500.md?p=a-1) of the [Government](/usc/5/8401.md?p=15) before any vacant [position](/usc/5/5531.md?p=2) in the [agency](/usc/5/500.md?p=a-1) is filled if—
  - (1) the [position](/usc/5/5531.md?p=2) is located within the commuting area of the individual’s former [position](/usc/5/5531.md?p=2);
  - (2) the individual is qualified to serve in such [position](/usc/5/5531.md?p=2), as determined by the head of the [agency](/usc/5/500.md?p=a-1); and
  - (3) the [position](/usc/5/5531.md?p=2) is at the same grade or equivalent level as the [position](/usc/5/5531.md?p=2) from which the individual was separated.

# [§8457. Renumbered § 8456 — renumbered]



# §8461. Authority of the Office of Personnel Management

- (a) The [Office](/usc/5/8401.md?p=24) shall pay all benefits that are payable under subchapter II, IV, V, or VI of this chapter from the [Fund](/usc/5/8401.md?p=6).
- (b) The [Office](/usc/5/8401.md?p=24) shall administer all provisions of this chapter not specifically required to be administered by the [Board](/usc/5/8401.md?p=5), the [Executive Director](/usc/5/8401.md?p=13), the Secretary of Labor, or any other officer or [agency](/usc/5/500.md?p=a-1).
- (c) The [Office](/usc/5/8401.md?p=24) shall adjudicate all claims under the provisions of this chapter administered by the [Office](/usc/5/8401.md?p=24).
- (d) The [Office](/usc/5/8401.md?p=24) shall determine questions of disability and dependency arising under the provisions of this chapter administered by the [Office](/usc/5/8401.md?p=24). Except to the extent provided under [subsection (e)](#e), the decisions of the [Office](/usc/5/8401.md?p=24) concerning these matters are final and conclusive and are not subject to review. The [Office](/usc/5/8401.md?p=24) may direct at any time such medical or other examinations as it considers necessary to determine the facts concerning disability or dependency of an individual receiving or applying for annuity under the provisions of this chapter administered by the [Office](/usc/5/8401.md?p=24). The [Office](/usc/5/8401.md?p=24) may suspend or deny annuity for failure to submit to examination.
- (e)
  - (1) Subject to [paragraph (2)](#e-2), an administrative action or order affecting the rights or interests of an individual or of the United States under the provisions of this chapter administered by the [Office](/usc/5/8401.md?p=24) may be appealed to the Merit [Systems](/usc/5/8401.md?p=29) Protection [Board](/usc/5/8401.md?p=5) under procedures prescribed by the [Board](/usc/5/8401.md?p=5).
  - (2) In the case of any individual found by the [Office](/usc/5/8401.md?p=24) to be disabled in whole or in part on the basis of the individual’s mental condition, and that finding was made pursuant to an application by an [agency](/usc/5/500.md?p=a-1) for purposes of disability retirement under [section 8451](/usc/5/8451.md), the procedures under [section 7701](/usc/5/7701.md) shall apply and the decision of the [Board](/usc/5/8401.md?p=5) shall be subject to judicial review under [section 7703](/usc/5/7703.md).
- (f) The [Office](/usc/5/8401.md?p=24) shall fix the fees for examinations made under subchapter V of this chapter by physicians or surgeons who are not medical officers of the United States. The fees and reasonable traveling and other expenses incurred in connection with the examinations are paid from appropriations for the cost of administering the provisions of this chapter administered by the [Office](/usc/5/8401.md?p=24).
- (g) The [Office](/usc/5/8401.md?p=24) may prescribe regulations to carry out the provisions of this chapter administered by the [Office](/usc/5/8401.md?p=24).
- (h)
  - (1) Each [Government](/usc/5/8401.md?p=15) [agency](/usc/5/500.md?p=a-1) shall furnish the [Director](/usc/5/8401.md?p=8) with such information as the [Director](/usc/5/8401.md?p=8) determines necessary in order to administer this chapter.
  - (2) The [Director](/usc/5/8401.md?p=8), in consultation with the officials from whom such information is requested, shall establish (by regulation or otherwise) such safeguards as are necessary to ensure that information made available under this subsection is used only for the purpose authorized.
- (i) In making a determination of “actuarial equivalence” under this chapter, the economic assumptions used shall be the same as the economic assumptions most recently used by the [Office](/usc/5/8401.md?p=24) (before the determination of actuarial equivalence involved) in determining the [normal-cost percentage](/usc/5/8401.md?p=23) of the [System](/usc/5/8401.md?p=29).
- (j)
  - (1) Notwithstanding any other provision of this chapter, the [Director](/usc/5/8401.md?p=8) of Central Intelligence shall, in a manner consistent with the administration of this chapter by the [Office](/usc/5/8401.md?p=24), and to the extent considered appropriate by the [Director](/usc/5/8401.md?p=8) of Central Intelligence—
    - (A) determine entitlement to benefits under this chapter based on the [service](/usc/5/8401.md?p=26) of [employees](/usc/5/8401.md?p=11) of the Central Intelligence [Agency](/usc/5/500.md?p=a-1);
    - (B) maintain records relating to the [service](/usc/5/8401.md?p=26) of such [employees](/usc/5/8401.md?p=11);
    - (C) compute benefits under this chapter based on the [service](/usc/5/8401.md?p=26) of such [employees](/usc/5/8401.md?p=11);
    - (D) collect deposits to the [Fund](/usc/5/8401.md?p=6) made by such [employees](/usc/5/8401.md?p=11), their spouses, their [former spouses](/usc/5/8401.md?p=12), and their [survivors](/usc/5/8401.md?p=28);
    - (E) authorize and direct disbursements from the [Fund](/usc/5/8401.md?p=6) to the extent based on [service](/usc/5/8401.md?p=26) of such [employees](/usc/5/8401.md?p=11); and
    - (F) perform such other functions under this chapter (other than under subchapters III and VII of this chapter) with respect to [employees](/usc/5/8401.md?p=11) of the Central Intelligence [Agency](/usc/5/500.md?p=a-1) as the [Director](/usc/5/8401.md?p=8) of Central Intelligence, in consultation with the [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) of Personnel Management, determines to be appropriate.
  - (2) The [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) of Personnel Management shall furnish such information and, on a reimbursable basis, such [services](/usc/5/8401.md?p=26) to the [Director](/usc/5/8401.md?p=8) of Central Intelligence as the [Director](/usc/5/8401.md?p=8) of Central Intelligence requests to carry out [paragraph (1)](#j-1).
- (k)
  - (1) The [Director](/usc/5/8401.md?p=8) of Central Intelligence, in consultation with the [Executive Director](/usc/5/8401.md?p=13) of the Federal Retirement Thrift Investment [Board](/usc/5/8401.md?p=5), may—
    - (A) maintain exclusive records relating to elections, contributions, and [accounts](/usc/5/8401.md?p=1) under the Thrift Savings Plan provided in subchapter III of this chapter in the case of [employees](/usc/5/8401.md?p=11) of the Central Intelligence [Agency](/usc/5/500.md?p=a-1);
    - (B) provide that contributions by, or on behalf of, such [employees](/usc/5/8401.md?p=11) to the Thrift Savings Plan be accounted for by such [Executive Director](/usc/5/8401.md?p=13) in aggregate amounts;
    - (C) make the necessary disbursements from, and the necessary allocations of [earnings](/usc/5/8401.md?p=10), [losses](/usc/5/8401.md?p=18), and charges to, individual [accounts](/usc/5/8401.md?p=1) of such [employees](/usc/5/8401.md?p=11) under the Thrift Savings Plan; and
    - (D) perform such other functions under subchapters III and VII of this chapter (but not including investing sums in the [Thrift Savings Fund](/usc/5/8471.md?p=5)) with respect to [employees](/usc/5/8401.md?p=11) of the Central Intelligence [Agency](/usc/5/500.md?p=a-1) as the [Director](/usc/5/8401.md?p=8) of Central Intelligence, in consultation with the [Executive Director](/usc/5/8401.md?p=13) of the Federal Retirement Thrift Investment [Board](/usc/5/8401.md?p=5), determines to be appropriate.
  - (2) The [Executive Director](/usc/5/8401.md?p=13) of the Federal Retirement Thrift Investment [Board](/usc/5/8401.md?p=5) may not exercise [authority](/usc/5/7103.md?p=a-6) under this chapter in the case of [employees](/usc/5/8401.md?p=11) of the Central Intelligence [Agency](/usc/5/500.md?p=a-1) to the extent that the [Director](/usc/5/8401.md?p=8) of Central Intelligence exercises [authority](/usc/5/7103.md?p=a-6) provided in [paragraph (1)](#k-1).
  - (3) The [Executive Director](/usc/5/8401.md?p=13) of the Federal Retirement Thrift Investment [Board](/usc/5/8401.md?p=5) shall furnish such information and, on a reimbursable basis, such [services](/usc/5/8401.md?p=26) to the [Director](/usc/5/8401.md?p=8) of Central Intelligence as the [Director](/usc/5/8401.md?p=8) of Central Intelligence determines necessary to carry out this subsection.
- (l) [Subsection (h)(1)](#h-1), and sections [8439(b)](/usc/5/8439.md?p=b) and [8474(c)(4)](/usc/5/8474.md?p=c-4), shall be applied with respect to information relating to [employees](/usc/5/8401.md?p=11) of the Central Intelligence [Agency](/usc/5/500.md?p=a-1) in a manner that protects intelligence sources, methods, and activities.
- (m)
  - (1) The [Director](/usc/5/8401.md?p=8) of Central Intelligence, in consultation with the [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) of Personnel Management and the [Executive Director](/usc/5/8401.md?p=13) of the Federal Retirement Thrift Investment [Board](/usc/5/8401.md?p=5), shall by regulation prescribe appropriate procedures to carry out subsections [(j)](#j), [(k)](#k), and [(l)](#l).
  - (2) The regulations shall provide procedures for the [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) of Personnel Management to inspect and audit disbursements from the [Fund](/usc/5/8401.md?p=6) under this chapter.
  - (3) The [Director](/usc/5/8401.md?p=8) of Central Intelligence shall submit the regulations prescribed under [paragraph (1)](#m-1) to the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives before the regulations take effect.
- (n)
  - (1) Under regulations prescribed by the [Office](/usc/5/8401.md?p=24), an [employee](/usc/5/8401.md?p=11) who—
    - (A) has not previously made an election under this subsection or had an opportunity to make an election under this paragraph; and
    - (B) moves, without a break in [service](/usc/5/8401.md?p=26) of more than 1 year, to employment in a [nonappropriated fund instrumentality](/usc/5/5595.md?p=h-6-C) of the Department of Defense or the Coast Guard, respectively, described in [section 2105(c)](/usc/5/2105.md?p=c),

    shall be given the opportunity to elect irrevocably, within 30 days after such move, to remain covered as an [employee](/usc/5/8401.md?p=11) under this chapter during any employment described in [section 2105(c)](/usc/5/2105.md?p=c) after such move.

  - (2) Under regulations prescribed by the [Office](/usc/5/8401.md?p=24), an [employee](/usc/5/8401.md?p=11) of a [nonappropriated fund instrumentality](/usc/5/5595.md?p=h-6-C) of the Department of Defense or the Coast Guard described in [section 2105(c)](/usc/5/2105.md?p=c), who—
    - (A) has not previously made an election under this subsection or had an opportunity to make an election under this paragraph;
    - (B) is a [participant](/usc/5/8471.md?p=3) in a retirement [system](/usc/5/8401.md?p=29) established for [employees](/usc/5/8401.md?p=11) described in [section 2105(c)](/usc/5/2105.md?p=c);
    - (C) moves, without a break in [service](/usc/5/8401.md?p=26) of more than 1 year, to a [position](/usc/5/5531.md?p=2) that is not described by [section 2105(c)](/usc/5/2105.md?p=c); and
    - (D) is not eligible to make an election under [section 8347(q)](/usc/5/8347.md?p=q),

    shall be given the opportunity to elect irrevocably, within 30 days after such move, to remain covered, during any subsequent employment as an [employee](/usc/5/8401.md?p=11) as defined by [section 2105(a)](/usc/5/2105.md?p=a) or [section 2105(c)](/usc/5/2105.md?p=c), by the retirement [system](/usc/5/8401.md?p=29) applicable to such [employee](/usc/5/8401.md?p=11)’s current or most recent employment described by [section 2105(c)](/usc/5/2105.md?p=c) rather than be subject to this chapter.


# §8462. Cost-of-living adjustments

- (a) For the purpose of this section—
  - (1) the term “base quarter”, as used with respect to a year, means the calendar quarter ending on September 30 of such year;
  - (2) the [price index](/usc/5/8401.md?p=25) for a [base quarter](#a-1) is the arithmetical mean of such index for the 3 months comprising such quarter; and
  - (3) the term “percent change in the price index”, as used with respect to a year, means the percentage derived by—
    - (A) reducing—
      - (i) the [price index](/usc/5/8401.md?p=25) for the [base quarter](#a-1) of such year, by
      - (ii) the [price index](/usc/5/8401.md?p=25) for the [base quarter](#a-1) of the preceding year in which an adjustment under this subsection was made;
    - (B) dividing the difference under [subparagraph (A)](#a-3-A) by the [price index](/usc/5/8401.md?p=25) referred to in [subparagraph (A)(ii)](#a-3-A-ii); and
    - (C) multiplying the quotient under [subparagraph (B)](#a-3-B) by 100.
- (b)
  - (1) Except as provided in [subsection (c)](#c), effective December 1 of any year in which an adjustment under this subsection is to be made, as determined under [paragraph (2)](#b-2), each annuity payable from the [Fund](/usc/5/8401.md?p=6) under this chapter (other than an annuity under [section 8443](/usc/5/8443.md)) having a commencing date not later than such December 1 shall be adjusted as follows:
    - (A) If the [percent change in the price index](#a-3) for the year does not exceed 3 percent, each annuity subject to adjustment under this subsection shall be increased by the lesser of—
      - (i) the [percent change in the price index](#a-3) (rounded to the nearest one-tenth of 1 percent); or
      - (ii) 2 percent.
    - (B) If the [percent change in the price index](#a-3) for the year exceeds 3 percent, each annuity subject to adjustment under this subsection shall be increased by the excess of—
      - (i) the [percent change in the price index](#a-3) (rounded to the nearest one-tenth of 1 percent), over
      - (ii) 1 percent.
  - (2) An adjustment under this subsection shall be made in a year only if the [price index](/usc/5/8401.md?p=25) for the [base quarter](#a-1) of such year exceeds the [price index](/usc/5/8401.md?p=25) for the [base quarter](#a-1) of the preceding year in which an adjustment under this subsection was made.
  - (3) An annuity under this chapter shall not be subject to adjustment under [section 8340](/usc/5/8340.md). Nothing in the preceding sentence shall affect the computation of any amount under [section 8443(a)(2)](/usc/5/8443.md?p=a-2).
- (c) Eligibility for an annuity increase under this section is governed by the commencing date of each annuity payable from the [Fund](/usc/5/8401.md?p=6) as of the effective date of an increase, except as follows:
  - (1) The first increase (if any) made under [subsection (b)](#b) to an annuity which is payable from the [Fund](/usc/5/8401.md?p=6) to an [annuitant](/usc/5/8401.md?p=2) or [survivor](/usc/5/8401.md?p=28) (other than a child under [section 8443](/usc/5/8443.md)) whose annuity has not been increased under this subsection or [subsection (b)](#b) shall be equal to the product (adjusted to the nearest one-tenth of 1 percent) of—
    - (A) one-twelfth of the applicable percent change computed under [subsection (b)](#b), multiplied by
    - (B) the number of months (not to exceed 12 months, counting any portion of a month as a month)—
      - (i) for which the annuity was payable from the [Fund](/usc/5/8401.md?p=6) before the effective date of the increase; or
      - (ii) in the case of a [survivor](/usc/5/8401.md?p=28) of a deceased [annuitant](/usc/5/8401.md?p=2) whose annuity has not been so increased, since the annuity was first payable to the deceased [annuitant](/usc/5/8401.md?p=2).
  - (2) Effective from its commencing date, an annuity payable from the [Fund](/usc/5/8401.md?p=6) to an [annuitant](/usc/5/8401.md?p=2)’s [survivor](/usc/5/8401.md?p=28) (other than a widow or widower whose annuity is computed under [section 8442(g)](/usc/5/8442.md?p=g) or a child under [section 8443](/usc/5/8443.md)) shall be increased by the total percentage by which the deceased [annuitant](/usc/5/8401.md?p=2)’s annuity had been increased under this section during the period beginning on the date the deceased [annuitant](/usc/5/8401.md?p=2)’s annuity commenced and ending on the date of the deceased [annuitant](/usc/5/8401.md?p=2)’s death.
  - (3)
    - (A) An adjustment under [subsection (b)](#b) for any year shall not be effective with respect to the annuity of an [annuitant](/usc/5/8401.md?p=2) who is under 62 years of age as of the date on which such adjustment would otherwise first take effect.
    - (B)
      - (i) Except as provided in [clause (ii)](#c-3-B-ii), this paragraph applies only with respect to an [annuitant](/usc/5/8401.md?p=2) under section [8412](/usc/5/8412.md), [8413](/usc/5/8413.md), or [8414](/usc/5/8414.md).
      - (ii) This paragraph does not apply with respect to an [annuitant](/usc/5/8401.md?p=2) under subsection [(d)(1)](/usc/5/8412.md?p=d-1) or [(e)](/usc/5/8412.md) of section 8412 or (in the case of an [annuitant](/usc/5/8401.md?p=2) separated from [service](/usc/5/8401.md?p=26) as a military reserve technician as a result of disability) under [section 8414(c)](/usc/5/8414.md?p=c).
  - (4) The first increase (if any) made under [subsection (b)](#b) to an annuity which is payable from the [Fund](/usc/5/8401.md?p=6) to a widow or widower whose annuity is computed under [section 8442(g)](/usc/5/8442.md?p=g) shall be equal to the product (adjusted to the nearest one-tenth of 1 percent) of—
    - (A) one-twelfth of the applicable percent change computed under [subsection (b)](#b), multiplied by
    - (B) the number of months (not to exceed 12 months, counting any portion of a month as a month) since—
      - (i) the effective date of the adjustment last made under this section in the annuity of the [annuitant](/usc/5/8401.md?p=2) on whose [service](/usc/5/8401.md?p=26) on the widow’s or widower’s annuity is based; or
      - (ii) if the annuity of the [annuitant](/usc/5/8401.md?p=2) (referred to in [clause (i)](#c-4-B-i)) has not been increased under this section, the commencement date of such [annuitant](/usc/5/8401.md?p=2)’s annuity (determined subject to [section 8452(a)(1)(B)](/usc/5/8452.md?p=a-1-B)).
- (d) The monthly installment of an annuity after adjustment under this section shall be rounded to the next lowest dollar. However, the monthly installment shall, after adjustment, reflect an increase of at least $1.
- (e) The $15,000 amount referred to in [section 8442(b)(1)(A)(ii)](/usc/5/8442.md?p=b-1-A-ii) shall be increased at the same time that, and by the same percent as the percentage by which, annuities under subchapter III of [chapter 83](/usc/5/chptIII-sptG-ch83.md) are increased.

# §8463. Rate of benefits


Each annuity payable from the [Fund](/usc/5/8401.md?p=6) is stated as an annual amount, one-twelfth of which, rounded to the next lower dollar, constitutes the monthly rate payable on the first business day of the first month beginning after the month for which it has accrued.


# §8464. Commencement and termination of annuities of employees and Members

- (a)
  - (1) Except as otherwise provided in this chapter—
    - (A) an annuity payable from the [Fund](/usc/5/8401.md?p=6) commences on the first day of the month after—
      - (i) separation from the [service](/usc/5/8401.md?p=26), in the case of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) retiring under [section 8412](/usc/5/8412.md), or subsection [(a)](/usc/5/8414.md?p=a), [(b)(1)(B)](/usc/5/8414.md?p=b-1-B), or [(d)](/usc/5/8414.md) of section 8414; or
      - (ii) pay ceases, and the applicable age and [service](/usc/5/8401.md?p=26) requirements are met, in the case of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) retiring under [section 8413](/usc/5/8413.md);
    - (B) an annuity payable from the [Fund](/usc/5/8401.md?p=6) commences on the day after separation from the [service](/usc/5/8401.md?p=26) in the case of an [employee](/usc/5/8401.md?p=11) retiring under subsection [(b)(1)(A)](/usc/5/8414.md?p=b-1-A) or [(c)](/usc/5/8414.md) of section 8414; and
    - (C) an annuity payable from the [Fund](/usc/5/8401.md?p=6) commences on the day after separation from the [service](/usc/5/8401.md?p=26) or the day after pay ceases and the requirements for title to an annuity are met in the case of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) retiring under [section 8451](/usc/5/8451.md).
  - (2) Notwithstanding [paragraph (1)(A)(i)](#a-1-A-i), an annuity payable from the [Fund](/usc/5/8401.md?p=6) commences on the day after separation from the [service](/usc/5/8401.md?p=26) in the case of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20)—
    - (A) who retires under [section 8412](/usc/5/8412.md); and
    - (B) whose separation occurs upon the expiration of a term (or other period) for which the individual was appointed or elected.
- (b) Except as otherwise provided in this chapter, the annuity of an [annuitant](/usc/5/8401.md?p=2) under subchapter II or V of this chapter terminates on the date death or other terminating event occurs.

# §8464a. Relationship between annuity and workers’ compensation

- (a)
  - (1) An individual is not entitled to receive—
    - (A) an annuity under subchapter II or V, and
    - (B) compensation for injury to, or disability of, such individual under subchapter I of [chapter 81](/usc/5/chptIII-sptG-ch81.md), other than compensation payable under [section 8107](/usc/5/8107.md),

    covering the same period of time.

  - (2) An individual is not entitled to receive an annuity under subchapter IV and a concurrent benefit under subchapter I of [chapter 81](/usc/5/chptIII-sptG-ch81.md) on [account](/usc/5/8401.md?p=1) of the death of the same person.
  - (3) Paragraphs [(1)](#a-1) and [(2)](#a-2) do not bar the right of a claimant to the greater benefit conferred by either this chapter or subchapter I of [chapter 81](/usc/5/chptIII-sptG-ch81.md).
- (b) If an individual is entitled to an annuity under subchapter II, IV, or V, and the individual receives a lump-sum payment for compensation under [section 8135](/usc/5/8135.md) based on the disability or death of the same person, so much of the compensation as has been paid for a period extended beyond the date payment of the annuity commences, as determined by the Department of Labor, shall be refunded to that Department for credit to the [Employees](/usc/5/8401.md?p=11)’ Compensation [Fund](/usc/5/8401.md?p=6). Before the individual may receive the annuity, the individual shall—
  - (1) refund to the Department of Labor the amount representing the commuted compensation payments for the extended period; or
  - (2) authorize the deduction of the amount from the annuity.

  Deductions from the annuity may be made from accrued or accruing payments. The amounts deducted and withheld from the annuity shall be transmitted to the Department of Labor for reimbursement to the [Employees](/usc/5/8401.md?p=11)’ Compensation [Fund](/usc/5/8401.md?p=6). When the Department of Labor finds that the financial circumstances of an individual entitled to an annuity under subchapter II, IV, or V warrant deferred refunding, deductions from the annuity may be prorated against and paid from accruing payments in such manner as the Department determines appropriate.


# §8465. Waiver, allotment, and assignment of benefits

- (a) An individual entitled to an annuity payable from the [Fund](/usc/5/8401.md?p=6) may decline to accept all or any part of the amount of the annuity by a waiver signed and filed with the [Office](/usc/5/8401.md?p=24). The waiver may be revoked in writing at any time. Payment of the annuity waived may not be made for the period during which the waiver is in effect.
- (b) An individual entitled to an annuity payable from the [Fund](/usc/5/8401.md?p=6) may make allotments or assignments of amounts from the annuity for such purposes as the [Office](/usc/5/8401.md?p=24) considers appropriate.

# §8466. Application for benefits

- (a) No payment of benefits based on the [service](/usc/5/8401.md?p=26) of an [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20) shall be made from the [Fund](/usc/5/8401.md?p=6) unless an application for payment of the benefits is received by the [Office](/usc/5/8401.md?p=24) before the one hundred and fifteenth anniversary of the birth of the [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20).
- (b) Notwithstanding [subsection (a)](#a), after the death of an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), a benefit based on the [service](/usc/5/8401.md?p=26) of such [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), or former [employee](/usc/5/8401.md?p=11) or [Member](/usc/5/8401.md?p=20), shall not be paid under subchapter II or IV of this chapter unless an application therefor is received by the [Office](/usc/5/8401.md?p=24) within 30 years after the death or other event which establishes the entitlement to the benefit.
- (c)
  - (1) Payment due a minor, or an individual mentally incompetent or under other legal disability, may be made to the person (including an organization) who is constituted guardian or other fiduciary by the law of the State of residence of the claimant or is otherwise legally vested with the care of the claimant or his estate. If a guardian or other fiduciary of the individual under legal disability has not been appointed under the law of the State of residence of the claimant, payment may be made to any person (including an organization) who, in the judgment of the [Office](/usc/5/8401.md?p=24), is responsible for the care of the claimant and may appropriately receive such payments on behalf of the claimant, and the payment bars recovery by any other person.
  - (2) If the [Office](/usc/5/8401.md?p=24) determines that direct payment of a benefit to an individual mentally incompetent or under other legal disability would cause substantial harm to the individual, the [Office](/usc/5/8401.md?p=24) may defer or suspend direct payment of the benefit until such time as the appointment of a [representative payee](/usc/5/8401.md?p=39) is made. The [Office](/usc/5/8401.md?p=24) shall resume payment as soon as practicable, including all amounts due.
- (d) The [Office](/usc/5/8401.md?p=24) may not authorize a person to receive payments on behalf of a minor or individual of legal disability under [subsection (c)](#c) if that person has been convicted of a violation of—
  - (1) section [8345a](/usc/5/8345a.md) or [8466a](/usc/5/8466a.md);
  - (2) section 208 or 1632 of the Social Security Act ([42 U.S.C. 408](/usc/42/408.md), 1383a); or
  - (3) [section 6101 of title 38](/usc/38/6101.md).

# §8466a. Embezzlement or conversion of payments

- (a) **Embezzling and Conversion Generally.—**
  - (1) **In general.—** It shall be unlawful for a [representative payee](/usc/5/8401.md?p=39) to embezzle or in any manner convert all or any part of the amounts received from payments received as a [representative payee](/usc/5/8401.md?p=39) to a use other than for the use and benefit of the minor or individual on whose behalf such payments were received.
  - (2) **Revocation.—** If the [Office](/usc/5/8401.md?p=24) determines that a [representative payee](/usc/5/8401.md?p=39) has embezzled or converted payments as described in [paragraph (1)](#a-1), the [Office](/usc/5/8401.md?p=24) shall promptly—
    - (A) revoke the certification for payment of benefits to the [representative payee](/usc/5/8401.md?p=39); and
    - (B) certify payment—
      - (i) to another [representative payee](/usc/5/8401.md?p=39); or
      - (ii) if the interest of the individual under this title would be served thereby, to the individual.
- (b) **Penalty.—** Any person who violates [subsection (a)(1)](#a-1) shall be fined under [title 18](/usc/18.md), imprisoned for not more than 5 years, or both.

# §8467. Court orders

- (a) Payments under this chapter which would otherwise be made to an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2) (including an [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2) as defined in [section 8331](/usc/5/8331.md)) based on [service](/usc/5/8401.md?p=26) of that individual shall be paid (in whole or in part) by the [Office](/usc/5/8401.md?p=24) or the [Executive Director](/usc/5/8401.md?p=13), as the case may be, to another person if and to the extent expressly provided for in the terms of—
  - (1) any [court](/usc/5/8401.md?p=7) decree of divorce, annulment, or legal separation, or the terms of any [court](/usc/5/8401.md?p=7) order or [court](/usc/5/8401.md?p=7)-approved property settlement agreement incident to any [court](/usc/5/8401.md?p=7) decree of divorce, annulment, or legal separation; or
  - (2) any [court](/usc/5/8401.md?p=7) order or other similar process in the nature of garnishment for the enforcement of a judgment rendered against such [employee](/usc/5/8401.md?p=11), [Member](/usc/5/8401.md?p=20), or [annuitant](/usc/5/8401.md?p=2), for physically, sexually, or emotionally abusing a [child](#c-2).

  In the event that the [Office](/usc/5/8401.md?p=24) or the [Executive Director](/usc/5/8401.md?p=13), as the case may be, is served with more than 1 decree, order, or other legal process with respect to the same moneys due or payable to any individual, such moneys shall be available to satisfy such processes on a first-come, first-served basis, with any such process being satisfied out of such moneys as remain after the satisfaction of all such processes which have been previously served.

- (b) [Subsection (a)](#a) shall apply only to payments made by the [Office](/usc/5/8401.md?p=24) or the [Executive Director](/usc/5/8401.md?p=13) under this chapter after the date on which the [Office](/usc/5/8401.md?p=24) or the [Executive Director](/usc/5/8401.md?p=13) (as the case may be) receives written notice of such decree, order, other legal process, or agreement, and such additional information and documentation as the [Office](/usc/5/8401.md?p=24) or the [Executive Director](/usc/5/8401.md?p=13) may require.
- (c) For the purpose of this section—
  - (1) the term “judgment rendered for physically, sexually, or emotionally abusing a child” means any legal claim perfected through a final enforceable judgment, which claim is based in whole or in part upon the physical, sexual, or emotional abuse of a [child](#c-2), whether or not that abuse is accompanied by other actionable wrongdoing, such as sexual exploitation or gross negligence; and
  - (2) the term “child” means an individual under 18 years of age.

# §8468. Annuities and pay on reemployment

- (a) If an [annuitant](/usc/5/8401.md?p=2), except a disability [annuitant](/usc/5/8401.md?p=2) whose annuity is terminated because of the [annuitant](/usc/5/8401.md?p=2)’s recovery or restoration of earning capacity, becomes employed in an appointive or elective [position](/usc/5/5531.md?p=2), an amount equal to the annuity allocable to the period of actual employment shall be deducted from the [annuitant](/usc/5/8401.md?p=2)’s pay, except for lump-sum leave payment purposes under [section 5551](/usc/5/5551.md). Unless the [annuitant](/usc/5/8401.md?p=2)’s appointment is on an intermittent basis or is to a [position](/usc/5/5531.md?p=2) as a justice or judge (as defined by [section 451 of title 28](/usc/28/451.md)) or as an [employee](/usc/5/8401.md?p=11) subject to another retirement [system](/usc/5/8401.md?p=29) for [Government](/usc/5/8401.md?p=15) [employees](/usc/5/8401.md?p=11), or unless the [annuitant](/usc/5/8401.md?p=2) is serving as President, deductions for the [Fund](/usc/5/8401.md?p=6) shall be withheld from the [annuitant](/usc/5/8401.md?p=2)’s pay under [section 8422(a)](/usc/5/8422.md?p=a) and contributions under [section 8423](/usc/5/8423.md) shall be made. The deductions and contributions referred to in the preceding provisions of this subsection shall be deposited in the Treasury of the United States to the credit of the [Fund](/usc/5/8401.md?p=6). The [annuitant](/usc/5/8401.md?p=2)’s [lump-sum credit](/usc/5/8401.md?p=19) may not be reduced by annuity paid during the reemployment.
- (b)
  - (1)
    - (A) If an [annuitant](/usc/5/8401.md?p=2) subject to deductions under the second sentence of [subsection (a)](#a) serves on a full-time basis for at least 1 year, or on a part-time basis for periods equivalent to at least 1 year of full-time [service](/usc/5/8401.md?p=26), the [annuitant](/usc/5/8401.md?p=2)’s annuity on termination of reemployment shall be increased by an annuity computed under [section 8415(a) through (i)](/usc/5/8415.md?p=a..i) as may apply based on the period of reemployment and the [basic pay](/usc/5/8401.md?p=4), before deduction, averaged during the reemployment.
    - (B)
      - (i) If the [annuitant](/usc/5/8401.md?p=2) is receiving a reduced annuity as provided in [section 8419](/usc/5/8419.md), the increase in annuity payable under [subparagraph (A)](#b-1-A) is reduced by 10 percent and the [survivor](/usc/5/8401.md?p=28) annuity or combination of [survivor](/usc/5/8401.md?p=28) annuities payable under section [8442](/usc/5/8442.md) or [8445](/usc/5/8445.md) (or both) is increased by 50 percent of the increase in annuity payable under [subparagraph (A)](#b-1-A), unless, at the time of claiming the increase payable under [subparagraph (A)](#b-1-A), the [annuitant](/usc/5/8401.md?p=2) notifies the [Office](/usc/5/8401.md?p=24) in writing that the [annuitant](/usc/5/8401.md?p=2) does not desire the [survivor](/usc/5/8401.md?p=28) annuity to be increased.
      - (ii) If an [annuitant](/usc/5/8401.md?p=2) who is subject to the deductions referred to in [subparagraph (A)](#b-1-A) dies while still reemployed, after having been reemployed for not less than 1 year of full-time [service](/usc/5/8401.md?p=26) (or the equivalent thereof, in the case of full-time[^1] employment), the [survivor](/usc/5/8401.md?p=28) annuity payable is increased as though the reemployment had otherwise terminated.
  - (2)
    - (A) If an [annuitant](/usc/5/8401.md?p=2) subject to deductions under the second sentence of [subsection (a)](#a) serves on a full-time basis for at least 5 years, or on a part-time basis for periods equivalent to at least 5 years of full-time [service](/usc/5/8401.md?p=26), the [annuitant](/usc/5/8401.md?p=2) may elect, instead of the benefit provided by [paragraph (1)](#b-1), to have such [annuitant](/usc/5/8401.md?p=2)’s rights redetermined under this chapter.
    - (B) If an [annuitant](/usc/5/8401.md?p=2) who is subject to the deductions referred to in [subparagraph (A)](#b-2-A) dies while still reemployed, after having been reemployed for at least 5 years of full-time [service](/usc/5/8401.md?p=26) (or the equivalent thereof in the case of part-time employment), any person entitled to a [survivor](/usc/5/8401.md?p=28) annuity under section [8442](/usc/5/8442.md) or [8445](/usc/5/8445.md) based on the [service](/usc/5/8401.md?p=26) of such [annuitant](/usc/5/8401.md?p=2) shall be permitted to elect, in accordance with regulations prescribed by the [Office](/usc/5/8401.md?p=24) of Personnel Management, to have such person’s rights under subchapter IV redetermined. A redetermined [survivor](/usc/5/8401.md?p=28) annuity elected under this subparagraph shall be in lieu of an increased annuity which would otherwise be payable in accordance with [paragraph (1)(B)(ii)](#b-1-B-ii).
  - (3) If an [annuitant](/usc/5/8401.md?p=2) subject to deductions under the second sentence of [subsection (a)](#a) serves on a full-time basis for a period of less than 1 year, or on a part-time basis for periods equivalent to less than 1 year of full-time [service](/usc/5/8401.md?p=26), the total amount withheld under [section 8422(a)](/usc/5/8422.md?p=a) from the [annuitant](/usc/5/8401.md?p=2)’s [basic pay](/usc/5/8401.md?p=4) for the period or periods involved shall, upon written application to the [Office](/usc/5/8401.md?p=24), be payable to the [annuitant](/usc/5/8401.md?p=2) (or the appropriate [survivor](/usc/5/8401.md?p=28) or [survivors](/usc/5/8401.md?p=28), determined in the order set forth in [section 8424(d)](/usc/5/8424.md?p=d)).
- (c) This section does not apply to an individual appointed to serve as a Governor of the [Board](/usc/5/8401.md?p=5) of Governors of the United States Postal [Service](/usc/5/8401.md?p=26).
- (d) If an [annuitant](/usc/5/8401.md?p=2) becomes employed as a justice or judge of the United States, as defined by [section 451 of title 28](/usc/28/451.md), the [annuitant](/usc/5/8401.md?p=2) may, at any time prior to resignation or retirement from regular active [service](/usc/5/8401.md?p=26) as such a justice or judge, apply for and be paid, in accordance with [section 8424(a)](/usc/5/8424.md?p=a), the amount (if any) by which the [lump-sum credit](/usc/5/8401.md?p=19) exceeds the total annuity paid, notwithstanding the time limitation contained in such section for filing an application for payment.
- (e) A reference in this section to an “annuity” shall not be considered to include any amount payable from a source other than the [Fund](/usc/5/8401.md?p=6).
- (f)
  - (1) The [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) of Personnel Management may, at the request of the head of an [Executive agency](/usc/5/3330d.md?p=a-2-A)—
    - (A) waive the application of the preceding provisions of this section on a case-by-case basis for [employees](/usc/5/8401.md?p=11) in [positions](/usc/5/5531.md?p=2) for which there is exceptional difficulty in recruiting or retaining a qualified [employee](/usc/5/8401.md?p=11); or
    - (B) grant [authority](/usc/5/7103.md?p=a-6) to the head of such [agency](/usc/5/500.md?p=a-1) to waive the application of the preceding provisions of this section, on a case-by-case basis, for an [employee](/usc/5/8401.md?p=11) serving on a temporary basis, but only if, and for so long as, the [authority](/usc/5/7103.md?p=a-6) is necessary due to an emergency involving a direct threat to life or property or other unusual circumstances.
  - (2) The [Office](/usc/5/8401.md?p=24) shall prescribe regulations for the exercise of any [authority](/usc/5/7103.md?p=a-6) under this subsection, including criteria for any exercise of [authority](/usc/5/7103.md?p=a-6) and procedures for terminating a delegation of [authority](/usc/5/7103.md?p=a-6) under [paragraph (1)(B)](#f-1-B).
- (g)
  - (1) If warranted by circumstances described in subsection [(f)(1)(A)](#f-1-A) or [(B)](#f-1-B) (as applicable), the [Director](/usc/5/8401.md?p=8) of the Administrative [Office](/usc/5/8401.md?p=24) of the United States [Courts](/usc/5/8401.md?p=7) shall, with respect to an [employee](/usc/5/8401.md?p=11) in the judicial branch, have the same waiver [authority](/usc/5/7103.md?p=a-6) as would be available to the [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) of Personnel Management, or a duly authorized [agency](/usc/5/500.md?p=a-1) head, under [subsection (f)](#f) with respect to an [employee](/usc/5/8401.md?p=11) of an [Executive agency](/usc/5/3330d.md?p=a-2-A).
  - (2) [Authority](/usc/5/7103.md?p=a-6) under this subsection may not be exercised with respect to a justice or judge of the United States, as defined in [section 451 of title 28](/usc/28/451.md).
- (h)
  - (1) If warranted by circumstances described in subsection [(f)(1)(A)](#f-1-A) or [(B)](#f-1-B) (as applicable), an official or committee designated in [paragraph (2)](#h-2) shall, with respect to the [employees](/usc/5/8401.md?p=11) specified in the applicable subparagraph of such paragraph, have the same waiver [authority](/usc/5/7103.md?p=a-6) as would be available to the [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) of Personnel Management, or a duly authorized [agency](/usc/5/500.md?p=a-1) head, under [subsection (f)](#f) with respect to an [employee](/usc/5/8401.md?p=11) of an [Executive agency](/usc/5/3330d.md?p=a-2-A).
  - (2) [Authority](/usc/5/7103.md?p=a-6) under this subsection may be exercised—
    - (A) with respect to an [employee](/usc/5/8401.md?p=11) of an [agency in the legislative branch](/usc/5/5531.md?p=4), by the head of such [agency](/usc/5/500.md?p=a-1);
    - (B) with respect to an [employee of the House of Representatives](/usc/5/5531.md?p=5), by the Committee on House Oversight of the House of Representatives; and
    - (C) with respect to an [employee of the Senate](/usc/5/5531.md?p=6), by the Committee on Rules and Administration of the Senate.
  - (3) Any exercise of [authority](/usc/5/7103.md?p=a-6) under this subsection shall be in conformance with such written policies and procedures as the [agency](/usc/5/500.md?p=a-1) head, the Committee on House Oversight of the House of Representatives, or the Committee on Rules and Administration of the Senate (as applicable) shall prescribe, consistent with the provisions of this subsection.
  - (4) For the purpose of this subsection, “[agency in the legislative branch](/usc/5/5531.md?p=4)”, “[employee of the House of Representatives](/usc/5/5531.md?p=5)”, “[employee of the Senate](/usc/5/5531.md?p=6)”, and “[congressional employee](/usc/5/5531.md?p=7)” each has the meaning given to it in [section 5531 of this title](/usc/5/5531.md).
- (i)
  - (1) For purposes of this subsection—
    - (A) the term “head of an agency” means—
      - (i) the head of an [Executive agency](/usc/5/3330d.md?p=a-2-A), other than the Department of Defense or the [Government](/usc/5/8401.md?p=15) Accountability [Office](/usc/5/8401.md?p=24);
      - (ii) the head of the United States Postal [Service](/usc/5/8401.md?p=26);
      - (iii) the [Director](/usc/5/8401.md?p=8) of the Administrative [Office](/usc/5/8401.md?p=24) of the United States [Courts](/usc/5/8401.md?p=7), with respect to [employees](/usc/5/8401.md?p=11) of the judicial branch; and
      - (iv) any employing [authority](/usc/5/7103.md?p=a-6) described under [subsection (h)(2)](#h-2), other than the [Government](/usc/5/8401.md?p=15) Accountability [Office](/usc/5/8401.md?p=24); and
    - (B) the term “limited time appointee” means an [annuitant](/usc/5/8401.md?p=2) appointed under a temporary appointment limited to 1 year or less.
  - (2) The [head of an agency](#i-1-A) may waive the application of [subsection (a)](#a) with respect to any [annuitant](/usc/5/8401.md?p=2) who is employed in such [agency](/usc/5/500.md?p=a-1) as a [limited time appointee](#i-1-B), if the head of the [agency](/usc/5/500.md?p=a-1) determines that the employment of the [annuitant](/usc/5/8401.md?p=2) is necessary to—
    - (A) fulfill functions critical to the mission of the [agency](/usc/5/500.md?p=a-1), or any component of that [agency](/usc/5/500.md?p=a-1);
    - (B) assist in the implementation or oversight of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) or the Troubled Asset Relief Program under title I of the Emergency Economic Stabilization Act of 2008 ([12 U.S.C. 5201](/usc/12/5201.md) et seq.);
    - (C) assist in the development, management, or oversight of [agency](/usc/5/500.md?p=a-1) procurement actions;
    - (D) assist the Inspector General for that [agency](/usc/5/500.md?p=a-1) in the performance of the mission of that Inspector General;
    - (E) promote appropriate training or mentoring programs of [employees](/usc/5/8401.md?p=11);
    - (F) assist in the recruitment or retention of [employees](/usc/5/8401.md?p=11); or
    - (G) respond to an emergency involving a direct threat to life of property or other unusual circumstances.
  - (3) The [head of an agency](#i-1-A) may not waive the application of [subsection (a)](#a) with respect to an [annuitant](/usc/5/8401.md?p=2)—
    - (A) for more than 520 hours of [service](/usc/5/8401.md?p=26) performed by that [annuitant](/usc/5/8401.md?p=2) during the period ending 6 months following the individual’s annuity commencing date;
    - (B) for more than 1040 hours of [service](/usc/5/8401.md?p=26) performed by that [annuitant](/usc/5/8401.md?p=2) during any 12-month period; or
    - (C) for more than a total of 3120 hours of [service](/usc/5/8401.md?p=26) performed by that [annuitant](/usc/5/8401.md?p=2).
  - (4)
    - (A) The total number of [annuitants](/usc/5/8401.md?p=2) to whom a waiver by the [head of an agency](#i-1-A) under this subsection or [section 8344(l)](/usc/5/8344.md?p=l) applies may not exceed 2.5 percent of the total number of full-time [employees](/usc/5/8401.md?p=11) of that [agency](/usc/5/500.md?p=a-1).
    - (B) If the total number of [annuitants](/usc/5/8401.md?p=2) to whom a waiver by the [head of an agency](#i-1-A) under this subsection or [section 8344(l)](/usc/5/8344.md?p=l) applies exceeds 1 percent of the total number of full-time [employees](/usc/5/8401.md?p=11) of that [agency](/usc/5/500.md?p=a-1), the head of that [agency](/usc/5/500.md?p=a-1) shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and [Government](/usc/5/8401.md?p=15) Reform of the House of Representatives, and the [Office](/usc/5/8401.md?p=24) of Personnel Management—
      - (i) a report with an explanation that justifies the need for the waivers in excess of that percentage; and
      - (ii) not later than 180 days after submitting the report under [clause (i)](#i-4-B-i), a succession plan.
  - (5)
    - (A) The [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) of Personnel Management may promulgate regulations providing for the administration of this subsection.
    - (B) Any regulations promulgated under [subparagraph (A)](#i-5-A) may—
      - (i) provide standards for the maintenance and form of necessary records of employment under this subsection;
      - (ii) to the extent not otherwise expressly prohibited by law, require employing [agencies](/usc/5/500.md?p=a-1) to provide records of such employment to the [Office](/usc/5/8401.md?p=24) or other employing [agencies](/usc/5/500.md?p=a-1) as necessary to ensure compliance with [paragraph (3)](#i-3);
      - (iii) authorize other administratively convenient periods substantially equivalent to 12 months, such as 26 pay periods, to be used in determining compliance with [paragraph (3)(B)](#i-3-B);
      - (iv) include such other administrative requirements as the [Director](/usc/5/8401.md?p=8) of the [Office](/usc/5/8401.md?p=24) of Personnel Management may find appropriate to provide for effective operation of, or to ensure compliance with, this subsection; and
      - (v) encourage the training and mentoring of [employees](/usc/5/8401.md?p=11) by any [limited time appointee](#i-1-B) employed under this subsection.
  - (6)
    - (A) Any hours of training or mentoring of [employees](/usc/5/8401.md?p=11) by any [limited time appointee](#i-1-B) employed under this subsection shall not be included in the hours of [service](/usc/5/8401.md?p=26) performed for purposes of [paragraph (3)](#i-3), but those hours of training or mentoring may not exceed 520 hours.
    - (B) If the primary [service](/usc/5/8401.md?p=26) performed by any [limited time appointee](#i-1-B) employed under this subsection is training or mentoring of [employees](/usc/5/8401.md?p=11), the hours of that [service](/usc/5/8401.md?p=26) shall be included in the hours of [service](/usc/5/8401.md?p=26) performed for purposes of [paragraph (3)](#i-3).
  - (7) The [authority](/usc/5/7103.md?p=a-6) of the [head of an agency](#i-1-A) under this subsection to waive the application of [subsection (a)](#a) shall terminate on December 31, 2024.
- (j)
  - (1) For the purpose of [subsections (f) through (i)](#f..i), “[Executive agency](/usc/5/3330d.md?p=a-2-A)” shall not include the [Government](/usc/5/8401.md?p=15) Accountability [Office](/usc/5/8401.md?p=24).
  - (2) An [employee](/usc/5/8401.md?p=11) as to whom a waiver under subsection [(f)](#f), [(g)](#g), [(h)](#h), or [(i)](#i) is in effect shall not be considered an [employee](/usc/5/8401.md?p=11) for purposes of this chapter or [chapter 83](/usc/5/chptIII-sptG-ch83.md) of this title.

# §8469. Withholding of State income taxes

- (a) The [Office](/usc/5/8401.md?p=24) shall, in accordance with this section, enter into an agreement with any [State](#e-1) within 120 days of a request for agreement from the proper [State](#e-1) official. The agreement shall provide that the [Office](/usc/5/8401.md?p=24) shall withhold [State](#e-1) income tax in the case of the monthly annuity of any [annuitant](#e-2) who voluntarily requests, in writing, such withholding. The amounts withheld during any calendar quarter shall be held in the [Fund](/usc/5/8401.md?p=6) and disbursed to the [States](#e-1) during the month following that calendar quarter.
- (b) An [annuitant](#e-2) may have in effect at any time only one request for withholding under this section, and an [annuitant](#e-2) may not have more than two such requests in effect during any one calendar year.
- (c) Subject to [subsection (b)](#b), an [annuitant](#e-2) may change the [State](#e-1) designated by that [annuitant](#e-2) for purposes of having withholdings made, and may request that the withholdings be remitted in accordance with such change. An [annuitant](#e-2) also may revoke any request of that [annuitant](#e-2) for withholding. Any change in the [State](#e-1) designated or revocation is effective on the first day of the month after the month in which the request or the revocation is processed by the [Office](/usc/5/8401.md?p=24), but in no event later than on the first day of the second month beginning after the day on which such request or revocation is received by the [Office](/usc/5/8401.md?p=24).
- (d) This section does not give the consent of the United States to the application of a statute which imposes more burdensome requirements on the United States than on employers generally, or which subjects the United States or any [annuitant](#e-2) to a penalty or liability because of this section. The [Office](/usc/5/8401.md?p=24) may not accept pay from a [State](#e-1) for [services](/usc/5/8401.md?p=26) performed in withholding [State](#e-1) income taxes from annuities. Any amount erroneously withheld from an annuity and paid to a [State](#e-1) by the [Office](/usc/5/8401.md?p=24) shall be repaid by the [State](#e-1) in accordance with regulations issued by the [Office](/usc/5/8401.md?p=24).
- (e) For the purpose of this section—
  - (1) the term “State” means a State, the District of Columbia, or any territory or possession of the United States; and
  - (2) the term “annuitant” includes a [survivor](/usc/5/8401.md?p=28) who is receiving an annuity from the [Fund](/usc/5/8401.md?p=6).

# §8470. Exemption from legal process; recovery of payments

- (a) An amount payable under subchapter II, IV, or V of this chapter is not assignable, either in law or equity, except under the provisions of section [8465](/usc/5/8465.md) or [8467](/usc/5/8467.md), or subject to execution, levy, attachment, garnishment or other legal process, except as otherwise may be provided by Federal laws.
- (b) Recovery of payments under subchapter II, IV, or V of this chapter may not be made from an individual when, in the judgment of the [Office](/usc/5/8401.md?p=24), the individual is without fault and recovery would be against equity and good conscience. Withholding or recovery of money paid under subchapter II, IV, or V of this chapter on [account](/usc/5/8401.md?p=1) of a certification or payment made by a former [employee](/usc/5/8401.md?p=11) of the United States in the discharge of his official duties may be made only if the head of the [agency](/usc/5/500.md?p=a-1) on behalf of which the certification or payment was made certifies to the [Office](/usc/5/8401.md?p=24) that the certification or payment involved fraud on the part of the former [employee](/usc/5/8401.md?p=11).

# §8471. Definitions


For the purposes of this subchapter—

- (1) the term “beneficiary” means an individual (other than a [participant](#3)) entitled to payment from the [Thrift Savings Fund](#5) under subchapter III of this chapter;
- (2) the term “Council” means the [Employee](/usc/5/8401.md?p=11) Thrift Advisory Council established under [section 8473 of this title](/usc/5/8473.md);
- (3) the term “participant” means an individual for whom an [account](/usc/5/8401.md?p=1) has been established under [section 8439 of this title](/usc/5/8439.md);
- (4) the term “person” means an individual, partnership, joint venture, corporation, mutual company, joint-stock company, trust, estate, unincorporated organization, association, or labor organization; and
- (5) the term “Thrift Savings Fund” means the Thrift Savings Fund established under [section 8437 of this title](/usc/5/8437.md).

# §8472. Federal Retirement Thrift Investment Board

- (a) There is established in the [Executive branch](/usc/5/13101.md?p=4) of the [Government](/usc/5/8401.md?p=15) a Federal Retirement Thrift Investment [Board](/usc/5/8401.md?p=5).
- (b) The [Board](/usc/5/8401.md?p=5) shall be composed of—
  - (1) 3 [members](/usc/5/8401.md?p=20) appointed by the President, of whom 1 shall be designated by the President as Chairman; and
  - (2) 2 [members](/usc/5/8401.md?p=20) appointed by the President, of whom—
    - (A) 1 shall be appointed by the President after taking into consideration the recommendation made by the Speaker of the House of Representatives in consultation with the minority leader of the House of Representatives; and
    - (B) 1 shall be appointed by the President after taking into consideration the recommendation made by the majority leader of the Senate in consultation with the minority leader of the Senate.
- (c) Except as provided in section 311 of the Federal [Employees](/usc/5/8401.md?p=11)’ Retirement System Act of 1986, appointments under [subsection (a)](#a) shall be made by and with the advice and consent of the Senate.
- (d) [Members](/usc/5/8401.md?p=20) of the [Board](/usc/5/8401.md?p=5) shall have substantial experience, training, and expertise in the management of financial investments and pension benefit plans.
- (e)
  - (1) Except as provided in section 311 of the Federal [Employees](/usc/5/8401.md?p=11)’ Retirement System Act of 1986, a [member](/usc/5/8401.md?p=20) of the [Board](/usc/5/8401.md?p=5) shall be appointed for a term of 4 years, except that of the [members](/usc/5/8401.md?p=20) first appointed (other than the [members](/usc/5/8401.md?p=20) appointed under such section)—
    - (A) the Chairman shall be appointed for a term of 4 years;
    - (B) the [members](/usc/5/8401.md?p=20) appointed under [subsection (b)(2)](#b-2) shall be appointed for terms of 3 years; and
    - (C) the remaining [members](/usc/5/8401.md?p=20) shall be appointed for terms of 2 years.
  - (2)
    - (A) A vacancy on the [Board](/usc/5/8401.md?p=5) shall be filled in the manner in which the original appointment was made and shall be subject to any conditions which applied with respect to the original appointment.
    - (B) An individual chosen to fill a vacancy shall be appointed for the unexpired term of the [member](/usc/5/8401.md?p=20) replaced.
  - (3) The term of any [member](/usc/5/8401.md?p=20) shall not expire before the date on which the [member](/usc/5/8401.md?p=20)’s successor takes [office](/usc/5/8401.md?p=24).
- (f) The [Board](/usc/5/8401.md?p=5) shall—
  - (1) establish policies for—
    - (A) the investment and management of the [Thrift Savings Fund](/usc/5/8471.md?p=5); and
    - (B) the administration of subchapter III of this chapter;
  - (2) review the performance of investments made for the [Thrift Savings Fund](/usc/5/8471.md?p=5); and
  - (3) review and approve the budget of the [Board](/usc/5/8401.md?p=5).
- (g)
  - (1) The [Board](/usc/5/8401.md?p=5) may—
    - (A) adopt, alter, and use a seal;
    - (B) except as provided in [paragraph (2)](#g-2), direct the [Executive Director](/usc/5/8401.md?p=13) to take such action as the [Board](/usc/5/8401.md?p=5) considers appropriate to carry out the provisions of this subchapter and subchapter III of this chapter and the policies of the [Board](/usc/5/8401.md?p=5);
    - (C) upon the concurring votes of four [members](/usc/5/8401.md?p=20), remove the [Executive Director](/usc/5/8401.md?p=13) from [office](/usc/5/8401.md?p=24) for good cause shown; and
    - (D) take such other actions as may be necessary to carry out the functions of the [Board](/usc/5/8401.md?p=5).
  - (2) Except in the case of investments under [section 8438(c)(2)(B)](/usc/5/8438.md), the [Board](/usc/5/8401.md?p=5) may not direct the [Executive Director](/usc/5/8401.md?p=13) to invest or to cause to be invested any sums in the [Thrift Savings Fund](/usc/5/8471.md?p=5) in a specific asset or to dispose of or cause to be disposed of any specific asset of such [Fund](/usc/5/8401.md?p=6).
- (h) The [members](/usc/5/8401.md?p=20) of the [Board](/usc/5/8401.md?p=5) shall discharge their responsibilities solely in the interest of [participants](/usc/5/8471.md?p=3) and [beneficiaries](/usc/5/8471.md?p=1) under this subchapter and subchapter III of this chapter.
- (i) The [Board](/usc/5/8401.md?p=5) shall prepare and submit to the President, and, at the same time, to the appropriate committees of Congress, an annual budget of the expenses and other items relating to the [Board](/usc/5/8401.md?p=5) which shall be included as a separate item in the budget required to be transmitted to the Congress under [section 1105 of title 31](/usc/31/1105.md).
- (j) The [Board](/usc/5/8401.md?p=5) may submit to the President, and, at the same time, shall submit to each House of the Congress, any legislative recommendations of the [Board](/usc/5/8401.md?p=5) relating to any of its functions under this title or any other provision of law.

# §8473. Employee Thrift Advisory Council

- (a) The [Board](/usc/5/8401.md?p=5) shall establish an [Employee](/usc/5/8401.md?p=11) Thrift Advisory [Council](/usc/5/8471.md?p=2). The [Council](/usc/5/8471.md?p=2) shall be composed of 15 [members](/usc/5/8401.md?p=20) appointed by the Chairman of the [Board](/usc/5/8401.md?p=5) in accordance with [subsection (b)](#b).
- (b) The Chairman shall appoint 15 [members](/usc/5/8401.md?p=20) of the [Council](/usc/5/8471.md?p=2), of whom—
  - (1) 4 shall be appointed to represent the respective labor organizations representing (as exclusive representatives) the first, second, third, and fourth largest numbers of individuals subject to [chapter 71](/usc/5/chptIII-sptF-ch71.md) of this title;
  - (2) 2 shall be appointed to represent the respective labor organizations which have been accorded exclusive recognition under [section 1203(a) of title 39](/usc/39/1203.md?p=a) representing the largest and second largest numbers of individuals employed by the United States Postal [Service](/usc/5/8401.md?p=26);
  - (3) 1 shall be appointed to represent the labor organization which has been accorded exclusive recognition under [section 1203(a) of title 39](/usc/39/1203.md?p=a) representing the largest number of individuals employed by the United States Postal [Service](/usc/5/8401.md?p=26) as rural letter carriers;
  - (4) 2 shall be appointed to represent the respective managerial organizations (other than an organization described in [paragraph (5)](#b-5)) which consult with the United States Postal [Service](/usc/5/8401.md?p=26) under [section 1004(b) of title 39](/usc/39/1004.md?p=b) and which represent the largest and second largest numbers of individuals employed by the United States Postal [Service](/usc/5/8401.md?p=26) as managerial personnel;
  - (5) 1 shall be appointed to represent the supervisors’ organization as defined in [section 1004(h) of title 39](/usc/39/1004.md?p=h);
  - (6) 1 shall be appointed to represent [employee](/usc/5/8401.md?p=11) organizations having as a purpose promoting the interests of women in [Government](/usc/5/8401.md?p=15) [service](/usc/5/8401.md?p=26);
  - (7) 1 shall be appointed to represent the organization representing the largest number of individuals receiving annuities under this chapter or [chapter 83](/usc/5/chptIII-sptG-ch83.md) of this title;
  - (8) 1 shall be appointed to represent the organization representing the largest number of supervisors and management officials (as defined by [section 7103(a)](/usc/5/7103.md?p=a));
  - (9) 1 shall be appointed to represent the organization representing the largest number of [members](/usc/5/8401.md?p=20) of the Senior Executive [Service](/usc/5/8401.md?p=26); and
  - (10) 1 shall be appointed to represent [participants](/usc/5/8471.md?p=3) (under [section 8440e](/usc/5/8440e.md)) who are [members](/usc/5/8401.md?p=20) of the [uniformed services](/usc/5/2101.md?p=3).
- (c)
  - (1) The Chairman of the [Board](/usc/5/8401.md?p=5) shall designate 1 [member](/usc/5/8401.md?p=20) of the [Council](/usc/5/8471.md?p=2) to serve as head of the [Council](/usc/5/8471.md?p=2).
  - (2) A [member](/usc/5/8401.md?p=20) of the [Council](/usc/5/8471.md?p=2) shall be appointed for a term of 4 years.
  - (3)
    - (A) A vacancy in the [Council](/usc/5/8471.md?p=2) shall be filled in the manner in which the original appointment was made and shall be subject to any conditions which applied with respect to the original appointment.
    - (B) An individual chosen to fill a vacancy shall be appointed for the unexpired term of the [member](/usc/5/8401.md?p=20) replaced.
    - (C) The term of any [member](/usc/5/8401.md?p=20) shall not expire before the date on which the [member](/usc/5/8401.md?p=20)’s successor takes [office](/usc/5/8401.md?p=24).
- (d) The [Council](/usc/5/8471.md?p=2) shall act by resolution of a majority of the [members](/usc/5/8401.md?p=20).
- (e) The [Council](/usc/5/8471.md?p=2) shall—
  - (1) advise the [Board](/usc/5/8401.md?p=5) and the [Executive Director](/usc/5/8401.md?p=13) on matters relating to—
    - (A) investment policies for the [Thrift Savings Fund](/usc/5/8471.md?p=5); and
    - (B) the administration of this subchapter and subchapter III of this chapter; and
  - (2) perform such other duties as the [Board](/usc/5/8401.md?p=5) may direct with respect to investment [funds](/usc/5/8401.md?p=6) established in accordance with subchapter III of this chapter.
- (f) [Section 1013(a) of this title](/usc/5/1013.md?p=a) shall not apply to the [Council](/usc/5/8471.md?p=2).

# §8474. Executive Director

- (a)
  - (1) The [Board](/usc/5/8401.md?p=5) shall appoint, without regard to the provisions of law governing appointments in the competitive [service](/usc/5/8401.md?p=26), an [Executive Director](/usc/5/8401.md?p=13) by action agreed to by a majority of the [members](/usc/5/8401.md?p=20) of the [Board](/usc/5/8401.md?p=5).
  - (2) The [Executive Director](/usc/5/8401.md?p=13) shall have substantial experience, training, and expertise in the management of financial investments and pension benefit plans.
- (b) The [Executive Director](/usc/5/8401.md?p=13) shall—
  - (1) carry out the policies established by the [Board](/usc/5/8401.md?p=5);
  - (2) invest and manage the [Thrift Savings Fund](/usc/5/8471.md?p=5) in accordance with the investment policies and other policies established by the [Board](/usc/5/8401.md?p=5);
  - (3) purchase annuity contracts and provide for the payment of other benefits under subchapter III of this chapter;
  - (4) administer the provisions of this subchapter and subchapter III of this chapter;
  - (5) prescribe such regulations (other than regulations relating to fiduciary responsibilities) as may be necessary for the administration of this subchapter and subchapter III of this chapter; and
  - (6) meet from time to time with the [Council](/usc/5/8471.md?p=2) upon request of the [Council](/usc/5/8471.md?p=2).
- (c) The [Executive Director](/usc/5/8401.md?p=13) may—
  - (1) prescribe such regulations as may be necessary to carry out the responsibilities of the [Executive Director](/usc/5/8401.md?p=13) under this section, other than regulations relating to fiduciary responsibilities;
  - (2) appoint such personnel as may be necessary to carry out the provisions of this subchapter and subchapter III of this chapter;
  - (3) subject to approval by the [Board](/usc/5/8401.md?p=5), procure the [services](/usc/5/8401.md?p=26) of experts and consultants under [section 3109 of this title](/usc/5/3109.md);
  - (4) secure directly from an [Executive agency](/usc/5/3330d.md?p=a-2-A), the United States Postal [Service](/usc/5/8401.md?p=26), or the Postal Regulatory Commission any information necessary to carry out the provisions of this subchapter or subchapter III of this chapter and policies of the [Board](/usc/5/8401.md?p=5);
  - (5) make such payments out of sums in the [Thrift Savings Fund](/usc/5/8471.md?p=5) as the [Executive Director](/usc/5/8401.md?p=13) determines are necessary to carry out the provisions of this subchapter and subchapter III of this chapter and the policies of the [Board](/usc/5/8401.md?p=5);
  - (6) pay the compensation, per diem, and travel expenses of individuals appointed under paragraphs (2), (3), and (7) of this subsection from the [Thrift Savings Fund](/usc/5/8471.md?p=5);
  - (7) accept and use the [services](/usc/5/8401.md?p=26) of individuals employed intermittently in the [Government](/usc/5/8401.md?p=15) [service](/usc/5/8401.md?p=26) and reimburse such individuals for travel expenses, as authorized by [section 5703 of this title](/usc/5/5703.md), including per diem as authorized by [section 5702 of this title](/usc/5/5702.md);
  - (8) except as otherwise expressly prohibited by law or the policies of the [Board](/usc/5/8401.md?p=5), delegate any of the [Executive Director](/usc/5/8401.md?p=13)’s functions to such [employees](/usc/5/8401.md?p=11) under the [Board](/usc/5/8401.md?p=5) as the [Executive Director](/usc/5/8401.md?p=13) may designate and authorize such successive redelegations of such functions to such [employees](/usc/5/8401.md?p=11) under the [Board](/usc/5/8401.md?p=5) as the [Executive Director](/usc/5/8401.md?p=13) may consider to be necessary or appropriate; and
  - (9) take such other actions as are appropriate to carry out the functions of the [Executive Director](/usc/5/8401.md?p=13).

# §8475. Investment policies


The [Board](/usc/5/8401.md?p=5) shall develop investment policies under [section 8472(f)(1) of this title](/usc/5/8472.md?p=f-1) which provide for—

- (1) prudent investments suitable for accumulating [funds](/usc/5/8401.md?p=6) for payment of retirement income; and
- (2) low administrative costs.

# §8476. Administrative provisions

- (a) The [Board](/usc/5/8401.md?p=5) shall meet—
  - (1) not less than once during each month; and
  - (2) at additional times at the call of the Chairman.
- (b)
  - (1) Except as provided in sections [8472(g)(1)(C)](/usc/5/8472.md?p=g-1-C) and [8474(a)(1)](/usc/5/8474.md?p=a-1) of this title, the [Board](/usc/5/8401.md?p=5) shall perform the functions and exercise the powers of the [Board](/usc/5/8401.md?p=5) on a majority vote of a quorum of the [Board](/usc/5/8401.md?p=5).
  - (2) A vacancy on the [Board](/usc/5/8401.md?p=5) shall not impair the [authority](/usc/5/7103.md?p=a-6) of a quorum of the [Board](/usc/5/8401.md?p=5) to perform the functions and exercise the powers of the [Board](/usc/5/8401.md?p=5).
- (c) Three [members](/usc/5/8401.md?p=20) of the [Board](/usc/5/8401.md?p=5) shall constitute a quorum for the transaction of business.
- (d)
  - (1) Each [member](/usc/5/8401.md?p=20) of the [Board](/usc/5/8401.md?p=5) who is not an officer or [employee](/usc/5/8401.md?p=11) of the Federal [Government](/usc/5/8401.md?p=15) shall be compensated at the daily rate of [basic pay](/usc/5/8401.md?p=4) for level IV of the Executive Schedule for each day during which such [member](/usc/5/8401.md?p=20) is engaged in performing a function of the [Board](/usc/5/8401.md?p=5).
  - (2) A [member](/usc/5/8401.md?p=20) of the [Board](/usc/5/8401.md?p=5) shall be paid travel, per diem, and other necessary expenses under subchapter I of [chapter 57](/usc/5/chptIII-sptD-ch57.md) of this title while traveling away from such [member](/usc/5/8401.md?p=20)’s home or regular place of business in the performance of the duties of the [Board](/usc/5/8401.md?p=5).
  - (3) Payments authorized under this subsection shall be paid from the [Thrift Savings Fund](/usc/5/8471.md?p=5).
- (e) The accrued annual leave of any [employee](/usc/5/8401.md?p=11) who is a [member](/usc/5/8401.md?p=20) of the [Board](/usc/5/8401.md?p=5) or the [Council](/usc/5/8471.md?p=2) shall not be charged for any time used in performing [services](/usc/5/8401.md?p=26) for the [Board](/usc/5/8401.md?p=5) or the [Council](/usc/5/8471.md?p=2).

# §8477. Fiduciary responsibilities; liability and penalties

- (a) For the purposes of this section—
  - (1) the term “account” is not limited by the definition provided in [section 8401(1)](/usc/5/8401.md?p=1);
  - (2) the term “adequate consideration” means—
    - (A) in the case of a security for which there is a generally recognized market—
      - (i) the price of the security prevailing on a national securities exchange which is registered under section 6 of the Securities Exchange Act of 1934; or
      - (ii) if the security is not traded on such a national securities exchange, a price not less favorable to the [Thrift Savings Fund](/usc/5/8471.md?p=5) than the offering price for the security as established by the current bid and asked prices quoted by [persons](/usc/5/8471.md?p=4) independent of the issuer and of any [party in interest](#a-4); and
    - (B) in the case of an asset other than a security for which there is a generally recognized market, the fair market value of the asset as determined in good faith by a [fiduciary](#a-3) or [fiduciaries](#a-3) in accordance with regulations prescribed by the Secretary of Labor;
  - (3) the term “fiduciary” means—
    - (A) a [member](/usc/5/8401.md?p=20) of the [Board](/usc/5/8401.md?p=5);
    - (B) the [Executive Director](/usc/5/8401.md?p=13);
    - (C) any [person](/usc/5/8471.md?p=4) who has or exercises discretionary [authority](/usc/5/7103.md?p=a-6) or discretionary control over the management or disposition of the assets of the [Thrift Savings Fund](/usc/5/8471.md?p=5); and
    - (D) any [person](/usc/5/8471.md?p=4) who, with respect to the [Thrift Savings Fund](/usc/5/8471.md?p=5), is described in section 3(21)(A) of the [Employee](/usc/5/8401.md?p=11) Retirement Income Security Act of 1974 ([29 U.S.C. 1002(21)(A)](/usc/29/1002.md?p=21-A)); and
  - (4) the term “party in interest” includes—
    - (A) any [fiduciary](#a-3);
    - (B) any counsel to a [person](/usc/5/8471.md?p=4) who is a [fiduciary](#a-3), with respect to the actions of such [person](/usc/5/8471.md?p=4) as a [fiduciary](#a-3);
    - (C) any [participant](/usc/5/8471.md?p=3);
    - (D) any [person](/usc/5/8471.md?p=4) providing [services](/usc/5/8401.md?p=26) to the [Board](/usc/5/8401.md?p=5) and, with respect to the actions of the [Executive Director](/usc/5/8401.md?p=13) as a [fiduciary](#a-3) any [person](/usc/5/8471.md?p=4) providing [services](/usc/5/8401.md?p=26) to the [Executive Director](/usc/5/8401.md?p=13);
    - (E) a labor organization, the [members](/usc/5/8401.md?p=20) of which are [participants](/usc/5/8471.md?p=3);
    - (F) a spouse, sibling, ancestor, lineal descendant, or spouse of a lineal descendant of a [person](/usc/5/8471.md?p=4) described in subparagraph [(A)](#a-4-A), [(B)](#a-4-B), or [(D)](#a-4-D);
    - (G) a corporation, partnership, or trust or estate of which, or in which, at least 50 percent of—
      - (i) the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of such corporation;
      - (ii) the capital interest or profits interest of such partnership; or
      - (iii) the beneficial interest of such trust or estate,

      is owned directly or indirectly, or held by a [person](/usc/5/8471.md?p=4) described in subparagraph [(A)](#a-4-A), [(B)](#a-4-B), [(D)](#a-4-D), or [(E)](#a-4-E);

    - (H) an official (including a [director](/usc/5/8401.md?p=8)) of, or an individual employed by, a [person](/usc/5/8471.md?p=4) described in subparagraph [(A)](#a-4-A), [(B)](#a-4-B), [(D)](#a-4-D), [(E)](#a-4-E), or [(G)](#a-4-G), or an individual having powers or responsibilities similar to those of such an official;
    - (I) a holder (directly or indirectly) of at least 10 percent of the shares in a [person](/usc/5/8471.md?p=4) described in any subparagraph referred to in [subparagraph (H)](#a-4-H); and
    - (J) a [person](/usc/5/8471.md?p=4) who, directly or indirectly, is at least a 10 percent partner or joint venturer (measured in capital or profits) in a [person](/usc/5/8471.md?p=4) described in any subparagraph referred to in [subparagraph (H)](#a-4-H).
- (b)
  - (1) To the extent not inconsistent with the provisions of this chapter and the policies prescribed by the [Board](/usc/5/8401.md?p=5), a [fiduciary](#a-3) shall discharge his responsibilities with respect to the [Thrift Savings Fund](/usc/5/8471.md?p=5) or applicable portion thereof solely in the interest of the [participants](/usc/5/8471.md?p=3) and [beneficiaries](/usc/5/8471.md?p=1) and—
    - (A) for the exclusive purpose of—
      - (i) providing benefits to [participants](/usc/5/8471.md?p=3) and their [beneficiaries](/usc/5/8471.md?p=1); and
      - (ii) defraying reasonable expenses of administering the [Thrift Savings Fund](/usc/5/8471.md?p=5) or applicable portions thereof;
    - (B) with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent individual acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like objectives; and
    - (C) to the extent permitted by [section 8438 of this title](/usc/5/8438.md), by diversifying the investments of the [Thrift Savings Fund](/usc/5/8471.md?p=5) or applicable portions thereof so as to minimize the risk of large [losses](/usc/5/8401.md?p=18), unless under the circumstances it is clearly prudent not to do so.
  - (2) No [fiduciary](#a-3) may maintain the indicia of ownership of any assets of the [Thrift Savings Fund](/usc/5/8471.md?p=5) outside the jurisdiction of the district [courts](/usc/5/8401.md?p=7) of the United States.
- (c)
  - (1) A [fiduciary](#a-3) shall not permit the [Thrift Savings Fund](/usc/5/8471.md?p=5) to engage in any of the following transactions, except in exchange for [adequate consideration](#a-2):
    - (A) A transfer of any assets of the [Thrift Savings Fund](/usc/5/8471.md?p=5) to any [person](/usc/5/8471.md?p=4) the [fiduciary](#a-3) knows or should know to be a [party in interest](#a-4) or the use of such assets by any such [person](/usc/5/8471.md?p=4).
    - (B) An acquisition of any property from or sale of any property to the [Thrift Savings Fund](/usc/5/8471.md?p=5) by any [person](/usc/5/8471.md?p=4) the [fiduciary](#a-3) knows or should know to be a [party in interest](#a-4).
    - (C) A transfer or exchange of [services](/usc/5/8401.md?p=26) between the [Thrift Savings Fund](/usc/5/8471.md?p=5) and any [person](/usc/5/8471.md?p=4) the [fiduciary](#a-3) knows or should know to be a [party in interest](#a-4).
  - (2) Notwithstanding [paragraph (1)](#c-1), a [fiduciary](#a-3) with respect to the [Thrift Savings Fund](/usc/5/8471.md?p=5) shall not—
    - (A) deal with any assets of the [Thrift Savings Fund](/usc/5/8471.md?p=5) in his own interest or for his own [account](#a-1);
    - (B) act, in an individual capacity or any other capacity, in any transaction involving the [Thrift Savings Fund](/usc/5/8471.md?p=5) on behalf of a party, or representing a party, whose interests are adverse to the interests of the [Thrift Savings Fund](/usc/5/8471.md?p=5) or the interests of its [participants](/usc/5/8471.md?p=3) or [beneficiaries](/usc/5/8471.md?p=1); or
    - (C) receive any consideration for his own personal [account](#a-1) from any party dealing with sums credited to the [Thrift Savings Fund](/usc/5/8471.md?p=5) in connection with a transaction involving assets of the [Thrift Savings Fund](/usc/5/8471.md?p=5).
  - (3)
    - (A) The Secretary of Labor may, in accordance with procedures which the Secretary shall by regulation prescribe, grant a conditional or unconditional exemption of any [fiduciary](#a-3) or transaction, or class of [fiduciaries](#a-3) or transactions, from all or part of the restrictions imposed by [paragraph (2)](#c-2).
    - (B) An exemption granted under this paragraph shall not relieve a [fiduciary](#a-3) from any other applicable provision of this chapter.
    - (C) The Secretary of Labor may not grant an exemption under this paragraph unless he finds that such exemption is—
      - (i) administratively feasible;
      - (ii) in the interests of the [Thrift Savings Fund](/usc/5/8471.md?p=5) and of its [participants](/usc/5/8471.md?p=3) and [beneficiaries](/usc/5/8471.md?p=1); and
      - (iii) protective of the rights of [participants](/usc/5/8471.md?p=3) and [beneficiaries](/usc/5/8471.md?p=1) of such [Fund](/usc/5/8401.md?p=6).
    - (D) An exemption under this paragraph may not be granted unless—
      - (i) notice of the proposed exemption is published in the Federal Register;
      - (ii) interested [persons](/usc/5/8471.md?p=4) are given an opportunity to present views; and
      - (iii) the Secretary of Labor affords an opportunity for a hearing and makes a determination on the record with respect to the respective requirements of clauses [(i)](#c-3-C-i), [(ii)](#c-3-C-ii), and [(iii)](#c-3-C-iii) of subparagraph (C).
    - (E) Notwithstanding [subparagraph (D)](#c-3-D), the Secretary of Labor may determine that an exemption granted for any class of [fiduciaries](#a-3) or transactions under section 408(a) of the [Employee](/usc/5/8401.md?p=11) Retirement Income Security Act of 1974 shall, upon publication of notice in the Federal Register under this subparagraph, constitute an exemption for purposes of the provisions of [paragraph (2)](#c-2).
- (d) This section does not prohibit any [fiduciary](#a-3) from—
  - (1) receiving any benefit which the [fiduciary](#a-3) is entitled to receive under this subchapter or subchapter III of this chapter as a [participant](/usc/5/8471.md?p=3) or [beneficiary](/usc/5/8471.md?p=1);
  - (2) receiving any reasonable compensation authorized by this subchapter for [services](/usc/5/8401.md?p=26) rendered, or for reimbursement of expenses properly and actually incurred, in the performance of the [fiduciary](#a-3)’s duties under this chapter; or
  - (3) serving as a [fiduciary](#a-3) in addition to being an officer, [employee](/usc/5/8401.md?p=11), agent, or other representative of a [party in interest](#a-4).
- (e)
  - (1)
    - (A) Any [fiduciary](#a-3) that breaches the responsibilities, duties, and obligations set out in [subsection (b)](#b) or violates [subsection (c)](#c) shall be personally liable to the [Thrift Savings Fund](/usc/5/8471.md?p=5) for any [losses](/usc/5/8401.md?p=18) to such [Fund](/usc/5/8401.md?p=6) resulting from each such breach or violation and to restore to such [Fund](/usc/5/8401.md?p=6) any profits made by the [fiduciary](#a-3) through use of assets of such [Fund](/usc/5/8401.md?p=6) by the [fiduciary](#a-3), and shall be subject to such other equitable or remedial relief as a [court](/usc/5/8401.md?p=7) considers appropriate, except as provided in paragraphs (3) and (4) of this subsection. A [fiduciary](#a-3) may be removed for a breach referred to in the preceding sentence.
    - (B) The Secretary of Labor may assess a civil penalty against a [party in interest](#a-4) with respect to each transaction which is engaged in by the [party in interest](#a-4) and is prohibited by [subsection (c)](#c). The amount of such penalty shall be equal to 5 percent of the amount involved in each such transaction (as defined in section 4975(f)(4) of the Internal Revenue Code of 1986) for each year or part thereof during which the prohibited transaction continues, except that, if the transaction is not corrected (in such manner as the Secretary of Labor shall prescribe by regulation consistent with section 4975(f)(5) of such Code) within 90 days after the date the Secretary of Labor transmits notice to the [party in interest](#a-4) (or such longer period as the Secretary of Labor may permit), such penalty may be in an amount not more than 100 percent of the amount involved.
    - (C)
      - (i) A [fiduciary](#a-3) shall not be liable under [subparagraph (A)](#e-1-A) with respect to a breach of [fiduciary](#a-3) duty under [subsection (b)](#b) committed before becoming a [fiduciary](#a-3) or after ceasing to be a [fiduciary](#a-3).
      - (ii) A [fiduciary](#a-3) shall not be liable under [subparagraph (A)](#e-1-A), and no civil action may be brought against a [fiduciary](#a-3)—
        - (I) for providing for the automatic enrollment of a [participant](/usc/5/8471.md?p=3) in accordance with [section 8432(b)(2)(A)](/usc/5/8432.md?p=b-2-A);
        - (II) for enrolling a [participant](/usc/5/8471.md?p=3) or [beneficiary](/usc/5/8471.md?p=1) in a default investment [fund](/usc/5/8401.md?p=6) or option in accordance with [section 8438(c)(2)](/usc/5/8438.md?p=c-2); or
        - (III) for allowing a [participant](/usc/5/8471.md?p=3) or [beneficiary](/usc/5/8471.md?p=1) to invest through the mutual [fund](/usc/5/8401.md?p=6) window or for establishing restrictions applicable to [participants](/usc/5/8471.md?p=3)’ or [beneficiaries](/usc/5/8471.md?p=1)’ ability to invest through the mutual [fund](/usc/5/8401.md?p=6) window.
    - (D) A [fiduciary](#a-3) shall be jointly and severally liable under [subparagraph (A)](#e-1-A) for a breach of [fiduciary](#a-3) duty under [subsection (b)](#b) by another [fiduciary](#a-3) only if—
      - (i) the [fiduciary](#a-3) participates knowingly in, or knowingly undertakes to conceal, an act or omission of such other [fiduciary](#a-3), knowing such act or omission is such a breach;
      - (ii) by the [fiduciary](#a-3)’s failure to comply with [subsection (b)](#b) in the administration of the [fiduciary](#a-3)’s specific responsibilities which give rise to the [fiduciary](#a-3) status, the [fiduciary](#a-3) has enabled such other [fiduciary](#a-3) to commit such a breach; or
      - (iii) the [fiduciary](#a-3) has knowledge of a breach by such other [fiduciary](#a-3), unless the [fiduciary](#a-3) makes reasonable efforts under the circumstances to remedy the breach.
    - (E) The Secretary of Labor shall prescribe, in regulations, procedures for allocating [fiduciary](#a-3) responsibilities among [fiduciaries](#a-3), including investment managers. Any [fiduciary](#a-3) who, pursuant to such procedures, allocates to a [person](/usc/5/8471.md?p=4) or [persons](/usc/5/8471.md?p=4) any [fiduciary](#a-3) responsibility shall not be liable for an act or omission of such [person](/usc/5/8471.md?p=4) or [persons](/usc/5/8471.md?p=4) unless—
      - (i) such [fiduciary](#a-3) violated [subsection (b)](#b) with respect to the allocation, with respect to the implementation of the procedures prescribed by the Secretary of Labor (or the [Board](/usc/5/8401.md?p=5) under section 114 of the Federal [Employees](/usc/5/8401.md?p=11)’ Retirement [System](/usc/5/8401.md?p=29) Technical Corrections Act of 1986), or in continuing such allocation; or
      - (ii) such [fiduciary](#a-3) would otherwise be liable in accordance with [subparagraph (D)](#e-1-D).
  - (2) No civil action may be maintained against any [fiduciary](#a-3) with respect to the responsibilities, liabilities, and penalties authorized or provided for in this section except in accordance with paragraphs [(3)](#e-3) and [(4)](#e-4).
  - (3) A civil action may be brought in the district [courts](/usc/5/8401.md?p=7) of the United States—
    - (A) by the Secretary of Labor against any [fiduciary](#a-3) other than a [Member](/usc/5/8401.md?p=20) of the [Board](/usc/5/8401.md?p=5) or the [Executive Director](/usc/5/8401.md?p=13) of the [Board](/usc/5/8401.md?p=5)—
      - (i) to determine and enforce a liability under [paragraph (1)(A)](#e-1-A);
      - (ii) to collect any civil penalty under [paragraph (1)(B)](#e-1-B);
      - (iii) to enjoin any act or practice which violates any provision of subsection [(b)](#b) or [(c)](#c);
      - (iv) to obtain any other appropriate equitable relief to redress a violation of any such provision; or
      - (v) to enjoin any act or practice which violates subsection (g)(2) or (h) of [section 8472 of this title](/usc/5/8472.md);
    - (B) by any [participant](/usc/5/8471.md?p=3), [beneficiary](/usc/5/8471.md?p=1), or [fiduciary](#a-3) against any [fiduciary](#a-3)—
      - (i) to enjoin any act or practice which violates any provision of subsection [(b)](#b) or [(c)](#c);
      - (ii) to obtain any other appropriate equitable relief to redress a violation of any such provision;
      - (iii) to enjoin any act or practice which violates subsection (g)(2) or (h) of [section 8472 of this title](/usc/5/8472.md); or
    - (C) by any [participant](/usc/5/8471.md?p=3) or [beneficiary](/usc/5/8471.md?p=1)—
      - (i) to recover benefits of such [participant](/usc/5/8471.md?p=3) or [beneficiary](/usc/5/8471.md?p=1) under the provisions of subchapter III of this chapter, to enforce any right of such [participant](/usc/5/8471.md?p=3) or [beneficiary](/usc/5/8471.md?p=1) under such provisions, or to clarify any such right to future benefits under such provisions; or
      - (ii) to enforce any claim otherwise cognizable under sections [1346(b)](/usc/28/1346.md?p=b) and [2671 through 2680](/usc/28/2671..2680.md) of title 28, provided that the remedy against the United States provided by sections [1346(b)](/usc/28/1346.md?p=b) and [2672](/usc/28/2672.md) of title 28 for damages for injury or [loss](/usc/5/8401.md?p=18) of property caused by the negligent or wrongful act or omission of any [fiduciary](#a-3) while acting within the scope of his duties or employment shall be exclusive of any other civil action or proceeding by the [participant](/usc/5/8471.md?p=3) or [beneficiary](/usc/5/8471.md?p=1) for recovery of money by reason of the same subject matter against the [fiduciary](#a-3) (or the estate of such [fiduciary](#a-3)) whose act or omission gave rise to such action or proceeding, whether or not such action or proceeding is based on an alleged violation of subsection [(b)](#b) or [(c)](#c).
  - (4)
    - (A) In all civil actions under [paragraph (3)(A)](#e-3-A), attorneys appointed by the Secretary may represent the Secretary (except as provided in [section 518(a) of title 28](/usc/28/518.md?p=a)), however all such litigation shall be subject to the direction and control of the Attorney General.
    - (B) The Attorney General shall defend any civil action or proceeding brought in any [court](/usc/5/8401.md?p=7) against any [fiduciary](#a-3) referred to in [paragraph (3)(C)(ii)](#e-3-C-ii) (or the estate of such [fiduciary](#a-3)) for any such injury. Any [fiduciary](#a-3) against whom such a civil action or proceeding is brought shall deliver, within such time after date of [service](/usc/5/8401.md?p=26) or knowledge of [service](/usc/5/8401.md?p=26) as determined by the Attorney General, all process served upon such [fiduciary](#a-3) (or an attested copy thereof) to the [Executive Director](/usc/5/8401.md?p=13) of the [Board](/usc/5/8401.md?p=5), who shall promptly furnish copies of the pleading and process to the Attorney General and the United States Attorney for the district wherein the action or proceeding is brought.
    - (C) Upon certification by the Attorney General that a [fiduciary](#a-3) described in [paragraph (3)(C)(ii)](#e-3-C-ii) was acting in the scope of such [fiduciary](#a-3)’s duties or employment as a [fiduciary](#a-3) at the time of the occurrence or omission out of which the action arose, any such civil action or proceeding commenced in a State [court](/usc/5/8401.md?p=7) shall be—
      - (i) removed without bond at any time before trial by the Attorney General to the district [court](/usc/5/8401.md?p=7) of the United States for the district and division in which it is pending; and
      - (ii) deemed a tort action brought against the United States under the provisions of [title 28](/usc/28.md) and all references thereto.
    - (D) The Attorney General may compromise or settle any claim asserted in such civil action or proceeding in the manner provided in [section 2677 of title 28](/usc/28/2677.md), and with the same effect. To the extent [section 2672 of title 28](/usc/28/2672.md) provides that [persons](/usc/5/8471.md?p=4) other than the Attorney General or his designee may compromise and settle claims, and that payment of such claims may be made from [agency](/usc/5/500.md?p=a-1) appropriations, such provisions shall not apply to claims based upon an alleged violation of subsection [(b)](#b) or [(c)](#c).
    - (E) For the purposes of [paragraph (3)(C)(ii)](#e-3-C-ii) the provisions of [sections 2680(h)](/usc/28/2680.md?p=h) of title 28 shall not apply to any claim based upon an alleged violation of subsection [(b)](#b) or [(c)](#c).
    - (F) Notwithstanding sections [1346(b)](/usc/28/1346.md?p=b) and [2671 through 2680](/usc/28/2671..2680.md) of title 28, whenever an award, compromise, or settlement is made under such sections upon any claim based upon an alleged violation of subsection [(b)](#b) or [(c)](#c), payment of such award, compromise, or settlement shall be made to the appropriate [account](#a-1) within the [Thrift Savings Fund](/usc/5/8471.md?p=5), or where there is no such appropriate [account](#a-1), to the [participant](/usc/5/8471.md?p=3) or [beneficiary](/usc/5/8471.md?p=1) bringing the claim.
    - (G) For purposes of [paragraph (3)(C)(ii)](#e-3-C-ii), [fiduciary](#a-3) includes only the [Members](/usc/5/8401.md?p=20) of the [Board](/usc/5/8401.md?p=5) and the [Board](/usc/5/8401.md?p=5)’s [Executive Director](/usc/5/8401.md?p=13).
  - (5) Any relief awarded against a [Member](/usc/5/8401.md?p=20) of the [Board](/usc/5/8401.md?p=5) or the [Executive Director](/usc/5/8401.md?p=13) of the [Board](/usc/5/8401.md?p=5) in a civil action authorized by [paragraph (3)](#e-3) may not include any monetary damages or any other recovery of money.
  - (6) An action may not be commenced under paragraph [(3)(A)](#e-3-A) or [(B)](#e-3-B) with respect to a [fiduciary](#a-3)’s breach of any responsibility, duty, or obligation under [subsection (b)](#b) or a violation of [subsection (c)](#c) after the earlier of—
    - (A) 6 years after (i) the date of the last action which constituted a part of the breach or violation, or (ii) in the case of an omission, the latest date on which the [fiduciary](#a-3) could have cured the breach or violation; or
    - (B) 3 years after the earliest date on which the plaintiff had actual knowledge of the breach or violation, except that, in the case of fraud or concealment, such action may be commenced not later than 6 years after the date of discovery of such breach or violation.
  - (7)
    - (A) The district [courts](/usc/5/8401.md?p=7) of the United States shall have exclusive jurisdiction of civil actions under this subsection.
    - (B) An action under this subsection may be brought in the District [Court](/usc/5/8401.md?p=7) of the United States for the District of Columbia or a district [court](/usc/5/8401.md?p=7) of the United States in the district where the breach alleged in the complaint or petition filed in the action took place or in the district where a defendant resides or may be found. Process may be served in any other district where a defendant resides or may be found.
  - (8)
    - (A) A copy of the complaint or petition filed in any action brought under this subsection (other than by the Secretary of Labor) shall be served on the [Executive Director](/usc/5/8401.md?p=13), the Secretary of Labor, and the Secretary of the Treasury by certified mail.
    - (B) Any officer referred to in subparagraph (A) of this paragraph shall have the right in his discretion to intervene in any action. If the Secretary of Labor brings an action under paragraph (2) of this subsection on behalf of a [participant](/usc/5/8471.md?p=3) or [beneficiary](/usc/5/8471.md?p=1), he shall notify the [Executive Director](/usc/5/8401.md?p=13) and the Secretary of the Treasury.
- (f) The Secretary of Labor may prescribe regulations to carry out this section.
- (g)
  - (1) The Secretary of Labor shall establish a program to carry out audits to determine the level of compliance with the requirements of this section relating to [fiduciary](#a-3) responsibilities and prohibited activities of [fiduciaries](#a-3).
  - (2) An audit under this subsection may be conducted by the Secretary of Labor, by contract with a qualified non-governmental organization, or in cooperation with the Comptroller General of the United States, as the Secretary considers appropriate.

# §8478. Bonding

- (a)
  - (1) Except as provided in [paragraph (2)](#a-2), each fiduciary and each [person](/usc/5/8471.md?p=4) who handles [funds](/usc/5/8401.md?p=6) or property of the [Thrift Savings Fund](/usc/5/8471.md?p=5) shall be bonded as provided in this section.
  - (2)
    - (A) Bond shall not be required of a fiduciary (or of any officer or [employee](/usc/5/8401.md?p=11) of such fiduciary) if such fiduciary—
      - (i) is a corporation organized and doing business under the laws of the United States or of any State;
      - (ii) is authorized under such laws to exercise trust powers or to conduct an insurance business;
      - (iii) is subject to supervision or examination by Federal or State [authority](/usc/5/7103.md?p=a-6); and
      - (iv) has at all times a combined capital and surplus in excess of such minimum amount (not less than $1,000,000) as the Secretary of Labor prescribes in regulations.
    - (B) If—
      - (i) a bank or other financial institution would, but for this subparagraph, not be required to be bonded under this section by reason of the application of the exception provided in [subparagraph (A)](#a-2-A),
      - (ii) the bank or financial institution is authorized to exercise trust powers, and
      - (iii) the deposits of the bank or financial institution are not insured by the Federal Deposit Insurance Corporation,

      such exception shall apply to such bank or financial institution only if the bank or institution meets bonding requirements under State law which the Secretary of Labor determines are at least equivalent to those imposed on banks by Federal law.

- (b)
  - (1) The Secretary of Labor shall prescribe the amount of a bond under this section at the beginning of each fiscal year. Except as otherwise provided in this paragraph, such amount shall not be less than 10 percent of the amount of [funds](/usc/5/8401.md?p=6) handled. In no case shall such bond be less than $1,000 nor more than $500,000, except that the Secretary of Labor, after due notice and opportunity for hearing to all interested parties, and other consideration of the record, may prescribe an amount in excess of $500,000.
  - (2) For the purpose of prescribing the amount of a bond under [paragraph (1)](#b-1), the amount of [funds](/usc/5/8401.md?p=6) handled shall be determined by reference to the amount of the [funds](/usc/5/8401.md?p=6) handled by the [person](/usc/5/8471.md?p=4), group, or class to be covered by such bond or by their predecessor or predecessors, if any, during the preceding fiscal year, or to the amount of [funds](/usc/5/8401.md?p=6) to be handled during the current fiscal year by such [person](/usc/5/8471.md?p=4), group, or class, estimated as provided in regulations prescribed by the Secretary of Labor.
- (c) A bond required by [subsection (a)](#a)—
  - (1) shall include such terms and conditions as the Secretary of Labor considers necessary to protect the [Thrift Savings Fund](/usc/5/8471.md?p=5) against [loss](/usc/5/8401.md?p=18) by reason of acts of fraud or dishonesty on the part of the bonded [person](/usc/5/8471.md?p=4) directly or through connivance with others;
  - (2) shall have as surety thereon a corporate surety company which is an acceptable surety on Federal bonds under [authority](/usc/5/7103.md?p=a-6) granted by the Secretary of the Treasury pursuant to [sections 9304 through 9308](/usc/31/9304..9308.md) of title 31; and
  - (3) shall be in a form or of a type approved by the Secretary of Labor, including individual bonds or schedule or blanket forms of bonds which cover a group or class.
- (d)
  - (1) It shall be unlawful for any [person](/usc/5/8471.md?p=4) to whom [subsection (a)](#a) applies, to receive, handle, disburse, or otherwise exercise custody or control of any of the [funds](/usc/5/8401.md?p=6) or other property of the [Thrift Savings Fund](/usc/5/8471.md?p=5) without being bonded as required by this section.
  - (2) It shall be unlawful for any fiduciary, or any other [person](/usc/5/8471.md?p=4) having [authority](/usc/5/7103.md?p=a-6) to direct the performance of functions described in [paragraph (1)](#d-1), to permit any such function to be performed by any [person](/usc/5/8471.md?p=4) to whom [subsection (a)](#a) applies unless such [person](/usc/5/8471.md?p=4) has met the requirements of such subsection.
- (e) Notwithstanding any other provision of law, any [person](/usc/5/8471.md?p=4) who is required to be bonded as provided in [subsection (a)](#a) shall be exempt from any other provision of law which would, but for this subsection, require such [person](/usc/5/8471.md?p=4) to be bonded for the handling of the [funds](/usc/5/8401.md?p=6) or other property of the [Thrift Savings Fund](/usc/5/8471.md?p=5).
- (f) The Secretary of Labor shall prescribe such regulations as may be necessary to carry out the provisions of this section, including exempting a [person](/usc/5/8471.md?p=4) or class of [persons](/usc/5/8471.md?p=4) from the requirements of this section.

# §8478a. Investigative authority


Any [authority](/usc/5/7103.md?p=a-6) available to the Secretary of Labor under section 504 of the [Employee](/usc/5/8401.md?p=11) Retirement Income Security Act of 1974 is hereby made available to the Secretary of Labor, and any officer designated by the Secretary of Labor, to determine whether any [person](/usc/5/8471.md?p=4) has violated, or is about to violate, any provision of section [8477](/usc/5/8477.md) or [8478](/usc/5/8478.md).


# §8479. Exculpatory provisions; insurance

- (a) Any provision in an agreement or instrument which purports to relieve a fiduciary from responsibility or liability for any responsibility, obligation, or duty under this subchapter shall be void.
- (b)
  - (1) The [Executive Director](/usc/5/8401.md?p=13) may require employing [agencies](/usc/5/500.md?p=a-1) to contribute an amount not to exceed 1 percent of the amount such [agencies](/usc/5/500.md?p=a-1) are required to contribute in accordance with [section 8432(c) of this title](/usc/5/8432.md?p=c) to the [Thrift Savings Fund](/usc/5/8471.md?p=5).
  - (2) The sums credited to the [Thrift Savings Fund](/usc/5/8471.md?p=5) under [paragraph (1)](#b-1) shall be available and may be used at the discretion of the [Executive Director](/usc/5/8401.md?p=13) to purchase insurance to cover potential liability of [persons](/usc/5/8471.md?p=4) who serve in a fiduciary capacity with respect to the [Thrift Savings Fund](/usc/5/8471.md?p=5), without regard to whether a policy of insurance permits recourse by the insurer against the fiduciary in the case of a breach of a fiduciary obligation.