---
kind: "section"
citation: "5 U.S.C. § 8509"
title: "5"
title_heading: "Government Organization and Employees"
number: "8509"
heading: "Federal Employees Compensation Account"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/8509"
units:
  - "Part III — Employees"
  - "Subpart G — Insurance and Annuities"
  - "Chapter 85 — Unemployment Compensation"
  - "Subchapter I — Employees Generally"
---

# §8509. Federal Employees Compensation Account

- (a) The [Federal Employees](/usc/5/8501.md?p=3) [Compensation](/usc/5/8501.md?p=4) [Account](/usc/5/8401.md?p=1) (as established by section 909 of the Social Security Act, and hereafter in this section referred to as the “[Account](/usc/5/8401.md?p=1)”) in the Unemployment Trust [Fund](/usc/5/8401.md?p=6) (as established by [section 904](/usc/5/904.md) of such Act) shall consist of—
  - (1) [funds](/usc/5/8401.md?p=6) appropriated to or transferred thereto, and
  - (2) amounts deposited therein pursuant to [subsection (c)](#c).
- (b) Moneys in the [Account](/usc/5/8401.md?p=1) shall be available only for the purpose of making payments to [States](/usc/5/8501.md?p=6) pursuant to agreements entered into under this chapter and making payments of [compensation](/usc/5/8501.md?p=4) under this chapter in [States](/usc/5/8501.md?p=6) which do not have in effect such an agreement.
- (c)
  - (1) Each employing [agency](/usc/5/3132.md?p=a-1) shall deposit into the [Account](/usc/5/8401.md?p=1) amounts equal to the expenditures incurred under this chapter on [account](/usc/5/8401.md?p=1) of [Federal service](/usc/5/8501.md?p=1) performed by [employees](/usc/5/4701.md?p=a-2) and former [employees](/usc/5/4701.md?p=a-2) of that [agency](/usc/5/3132.md?p=a-1).
  - (2) Deposits required by [paragraph (1)](#c-1) shall be made during each calendar quarter and the amount of the deposit to be made by any employing [agency](/usc/5/3132.md?p=a-1) during any quarter shall be based on a determination by the [Secretary](/usc/5/9901.md?p=2) of Labor as to the amounts of payments, made prior to such quarter from the [Account](/usc/5/8401.md?p=1) based on [Federal service](/usc/5/8501.md?p=1) performed by [employees](/usc/5/4701.md?p=a-2) of such [agency](/usc/5/3132.md?p=a-1) after December 31, 1980, with respect to which deposit has not previously been made. The amount to be deposited by any employing [agency](/usc/5/3132.md?p=a-1) during any calendar quarter shall be adjusted to take [account](/usc/5/8401.md?p=1) of any overpayment or underpayment of deposit during any previous quarter for which adjustment has not already been made.
  - (3) If any Federal [agency](/usc/5/3132.md?p=a-1) does not deposit in the [Federal Employees](/usc/5/8501.md?p=3) [Compensation](/usc/5/8501.md?p=4) [Account](/usc/5/8401.md?p=1) any amount before the date 30 days after the date on which the [Secretary](/usc/5/9901.md?p=2) of Labor has notified such [agency](/usc/5/3132.md?p=a-1) that it is required to so deposit such amount, the [Secretary](/usc/5/9901.md?p=2) of Labor shall notify the [Secretary](/usc/5/9901.md?p=2) of the Treasury of the failure to make such deposit and the [Secretary](/usc/5/9901.md?p=2) of the Treasury shall transfer such amount to the [Federal Employees](/usc/5/8501.md?p=3) [Compensation](/usc/5/8501.md?p=4) [Account](/usc/5/8401.md?p=1) from amounts otherwise appropriated to such Federal [agency](/usc/5/3132.md?p=a-1).
- (d) The [Secretary](/usc/5/9901.md?p=2) of Labor shall certify to the [Secretary](/usc/5/9901.md?p=2) of the Treasury the amount of the deposit which each employing [agency](/usc/5/3132.md?p=a-1) is required to make to the [Account](/usc/5/8401.md?p=1) during any calendar quarter, and the [Secretary](/usc/5/9901.md?p=2) of the Treasury shall notify the [Secretary](/usc/5/9901.md?p=2) of Labor as to the date and amount of any deposit made to such [Account](/usc/5/8401.md?p=1) by any such [agency](/usc/5/3132.md?p=a-1).
- (e) Prior to the beginning of each fiscal year (commencing with the fiscal year which begins October 1, 1981) the [Secretary](/usc/5/9901.md?p=2) of Labor shall estimate—
  - (1) the amount of expenditures which will be made from the [Account](/usc/5/8401.md?p=1) during such year, and
  - (2) the amount of [funds](/usc/5/8401.md?p=6) which will be available during such year for the making of such expenditures,

  and if, on the basis of such estimate, he determines that the amount described in [paragraph (2)](#e-2) is in excess of the amount necessary—

  - (3) to meet the expenditures described in [paragraph (1)](#e-1), and
  - (4) to provide a reasonable contingency [fund](/usc/5/8401.md?p=6) so as to assure that there will, during all times in such year, be sufficient sums available in the [Account](/usc/5/8401.md?p=1) to meet the expenditures described in [paragraph (1)](#e-1),

  he shall certify the amount of such excess to the [Secretary](/usc/5/9901.md?p=2) of the Treasury and the [Secretary](/usc/5/9901.md?p=2) of the Treasury shall transfer, from the [Account](/usc/5/8401.md?p=1) to the general [fund](/usc/5/8401.md?p=6) of the Treasury, an amount equal to such excess.

- (f) The [Secretary](/usc/5/9901.md?p=2) of Labor is authorized to establish such rules and regulations as may be necessary or appropriate to carry out the provisions of this section.
- (g) Any [funds](/usc/5/8401.md?p=6) appropriated after the establishment of the [Account](/usc/5/8401.md?p=1), for the making of payments for which expenditures are authorized to be made from moneys in the [Account](/usc/5/8401.md?p=1), shall be made to the [Account](/usc/5/8401.md?p=1); and there are hereby authorized to be appropriated to the [Account](/usc/5/8401.md?p=1), from time to time, such sums as may be necessary to assure that there will, at all times, be sufficient sums available in the [Account](/usc/5/8401.md?p=1) to meet the expenditures authorized to be made from moneys therein.
- (h) For purposes of this section, the term “[Federal service](/usc/5/8501.md?p=1)” includes [Federal service](/usc/5/8501.md?p=1) as defined in [section 8521(a)](/usc/5/8521.md?p=a).

## Source credit

(Added Pub. L. 96–499, title X, § 1023(b), Dec. 5, 1980, 94 Stat. 2657; amended Pub. L. 97–362, title II, § 202(a), Oct. 25, 1982, 96 Stat. 1732; Pub. L. 102–318, title V, § 532(a), July 3, 1992, 106 Stat. 317.)

## Notes

### Editorial Notes

### References in Text

Sections 909 and 904 of the Social Security Act, referred to in subsec. (a), are classified to sections 1109 and 1104, respectively, of Title 42, The Public Health and Welfare.

### Amendments

1992—Subsec. (c)(3). Pub. L. 102–318 added par. (3).

1982—Subsecs. (b), (c)(1). Pub. L. 97–362, § 202(a)(1), substituted “chapter” for “subchapter” wherever appearing.

Subsec. (h). Pub. L. 97–362, § 202(a)(2), added subsec. (h).

### Statutory Notes and Related Subsidiaries

### Effective Date of 1992 Amendment

Pub. L. 102–318, title V, § 532(b), July 3, 1992, 106 Stat. 317, provided that: “The amendment made by subsection (a) [amending this section] shall apply to failures outstanding on the date of the enactment of this Act [July 3, 1992] or at any time thereafter.”

### Effective Date of 1982 Amendment

Pub. L. 97–362, title II, § 202(b)(1), Oct. 25, 1982, 96 Stat. 1733, provided that: “The amendments made by subsection (a) [amending this section] shall take effect on October 1, 1983.”

### Transfer of Appropriated Unemployment Compensation Funds

Pub. L. 97–362, title II, § 202(b)(2), Oct. 25, 1982, 96 Stat. 1733, provided that: “All funds appropriated which are available (on October 1, 1983) for the making of payments to States under chapter 85 of title 5, United States Code, on the basis of Federal service (as defined in section 8521(a) of such title 5) or for the making of payments under such chapter on the basis of such service in States which do not have in effect an agreement under such chapter, shall be transferred on such date to the Federal Employees Compensation Account established by section 909 of the Social Security Act [42 U.S.C. 1109]. On and after such date, all payments described in the preceding sentence shall be made from such account as provided by section 8509 of such title 5.”

Pub. L. 96–499, title X, § 1023(c), Dec. 5, 1980, 94 Stat. 2658, provided that: “All funds appropriated which are available for the making of payments to States after December 31, 1980, pursuant to agreements entered into under subchapter I of chapter 85 of title 5, United States Code, or for the making of payments after such date of compensation under such subchapter in States which do not have in effect such an agreement, shall be transferred on January 1, 1981, to the Federal Employees Compensation Account established by section 909 of the Social Security Act [42 U.S.C. 1109]. On and after such date, all payments described in the preceding sentence shall be made from such Account as provided by section 8509 of title 5, United States Code.”