---
kind: "section"
citation: "5 U.S.C. § 8455"
title: "5"
title_heading: "Government Organization and Employees"
number: "8455"
heading: "Recovery; restoration of earning capacity"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/8455"
units:
  - "Part III — Employees"
  - "Subpart G — Insurance and Annuities"
  - "Chapter 84 — Federal Employees’ Retirement System"
  - "Subchapter V — Disability Benefits"
---

# §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/5/4101.md?p=3) or 1 year after the date on which the [Office](/usc/5/5402.md?p=3) 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](/usc/5/7511.md?p=a-4) of the [position](/usc/5/5102.md?p=a-3) 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](/usc/5/7511.md?p=a-4) of the [position](/usc/5/5102.md?p=a-3) 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/5/5102.md?p=a-3) 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/5/5102.md?p=a-3) 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](/usc/5/7511.md?p=a-4) of the [position](/usc/5/5102.md?p=a-3) 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/5/5102.md?p=a-3) 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/5/5402.md?p=3) 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.

## Source credit

(Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 568.)