---
kind: "section"
citation: "5 U.S.C. § 8707"
title: "5"
title_heading: "Government Organization and Employees"
number: "8707"
heading: "Employee deductions; withholding"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/8707"
units:
- "Part III — Employees"
- "Subpart G — Insurance and Annuities"
- "Chapter 87 — Life Insurance"
---
# §8707. Employee deductions; withholding
- (a) Subject to [subsection (c)(2)](#c-2), during each period in which an [employee](/usc/5/4701.md?p=a-2) is insured under a policy purchased by the [Office](/usc/5/5402.md?p=3) of Personnel Management under [section 8709 of this title](/usc/5/8709.md), there shall be withheld from the [employee](/usc/5/4701.md?p=a-2)’s [pay](/usc/5/7511.md?p=a-4) a share of the cost of the group life insurance and accidental death and dismemberment insurance.
- (b)
- (1) Subject to [subsection (c)(2)](#c-2), whenever life insurance continues after an [employee](/usc/5/4701.md?p=a-2) retires on an immediate annuity or while the [employee](/usc/5/4701.md?p=a-2) is receiving compensation under subchapter I of [chapter 81](/usc/5/chptIII/sptG/ch81.md) of this title because of disease or injury to the [employee](/usc/5/4701.md?p=a-2), as provided in [section 8706(b) of this title](/usc/5/8706.md?p=b), deductions for insurance shall be withheld from the [employee](/usc/5/4701.md?p=a-2)’s annuity or compensation, except that, in any case in which the insurance is continued as provided in [section 8706(b)(3)(A) of this title](/usc/5/8706.md?p=b-3-A), the deductions shall not be made for months after the calendar month in which the [employee](/usc/5/4701.md?p=a-2) becomes 65 years of age.
- (2) Notwithstanding paragraph (1) of this subsection, insurance shall be so continued without cost (other than as provided under [section 8706(b)(3)(B)](/usc/5/8706.md?p=b-3-B)) to each [employee](/usc/5/4701.md?p=a-2) who so retires, or commences receiving compensation, on or before December 31, 1989.
- (c)
- (1) The amount withheld from the [pay](/usc/5/7511.md?p=a-4), annuity, or compensation of each [employee](/usc/5/4701.md?p=a-2) subject to insurance deductions shall be at the rate, adjusted to the nearest half-cent, of 66⅔ percent of the level cost as determined by the [Office](/usc/5/5402.md?p=3) for each $1,000 of the [employee](/usc/5/4701.md?p=a-2)’s basic insurance amount.
- (2) An [employee](/usc/5/4701.md?p=a-2) who is subject to withholdings under this section and whose [pay](/usc/5/7511.md?p=a-4), annuity, or compensation is insufficient to cover such withholdings may nevertheless continue insurance if the [employee](/usc/5/4701.md?p=a-2) arranges to [pay](/usc/5/7511.md?p=a-4) currently into the [Employees](/usc/5/4701.md?p=a-2)’ Life Insurance [Fund](/usc/5/8401.md?p=6), through the [agency](/usc/5/3132.md?p=a-1) or retirement [system](/usc/5/8401.md?p=29) that administers [pay](/usc/5/7511.md?p=a-4), annuity, or compensation, an amount equal to the withholdings that would otherwise be required under this section.
- (d) If an [agency](/usc/5/3132.md?p=a-1) fails to withhold the proper amount of life insurance deductions from an individual’s salary, compensation, or retirement annuity, the collection of unpaid deductions may be waived by the [agency](/usc/5/3132.md?p=a-1) if, in the judgment of the [agency](/usc/5/3132.md?p=a-1), the individual is without fault and recovery would be against equity and good conscience. However, if the [agency](/usc/5/3132.md?p=a-1) so waives the collection of unpaid deductions, the [agency](/usc/5/3132.md?p=a-1) shall submit an amount equal to the sum of the uncollected deductions and related [agency](/usc/5/3132.md?p=a-1) contributions required under [section 8708 of this title](/usc/5/8708.md) to the [Office](/usc/5/5402.md?p=3) for deposit to the [Employees](/usc/5/4701.md?p=a-2)’ Life Insurance [Fund](/usc/5/8401.md?p=6).
## Source credit
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 595; Pub. L. 90–206, title IV, § 402, Dec. 16, 1967, 81 Stat. 647; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96–427, § 4(a), Oct. 10, 1980, 94 Stat. 1833; Pub. L. 105–311, § 6(1), Oct. 30, 1998, 112 Stat. 2951.)
## Notes
| Historical and Revision Notes | | |
| --- | --- | --- |
| Derivation | U.S. Code | Revised Statutes and
Statutes at Large |
| | 5 U.S.C. 2094(a) (1st par.). | Aug. 17, 1954, ch. 752, § 5(a) (1st par.), 68 Stat. 738.
Sept. 23, 1959, Pub. L. 86–377, § 4(b), 73 Stat. 701. |
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
### Editorial Notes
### Amendments
1998—Subsec. (a). Pub. L. 105–311, § 6(1)(A), substituted “Subject to subsection (c)(2), during” for “During”.
Subsec. (b)(1). Pub. L. 105–311, § 6(1)(B), substituted “Subject to subsection (c)(2), whenever” for “Whenever”.
Subsec. (c). Pub. L. 105–311, § 6(1)(C), designated existing provisions as par. (1) and added par. (2).
1980—Subsec. (a). Pub. L. 96–427 designated first sentence of existing section as subsec. (a) and substituted “a policy purchased” for “a policy of insurance purchased” and “the employee’s pay a share of the cost” for “the pay of the employee his share of the cost”.
Subsec. (b). Pub. L. 96–427 added subsec. (b).
Subsec. (c). Pub. L. 96–427 designated second sentence of existing section as subsec. (c) and inserted reference to pay, annuity, or compensation of each employee.
Subsec. (d). Pub. L. 96–427 added subsec. (d).
1978—Pub. L. 95–454 substituted “Office of Personnel Management” and “Office” for “Civil Service Commission” and “Commission”, respectively.
1967—Pub. L. 90–206 struck out reference to the Civil Service Commission’s function of determining the amount to be withheld for group insurance and substituted provisions setting a rate of 66⅔ percent of the level cost of each $1,000 of insurance as determined by the Commission for provisions setting a limit of 25 cents biweekly for each $1,000 of group life insurance and directing the withholding of the amount from employees paid on other than a biweekly basis at a proportional rate adjusted to the nearest cent.
### Statutory Notes and Related Subsidiaries
### Effective Date of 1998 Amendment
Amendment by Pub. L. 105–311 effective on the first day of the first applicable pay period beginning on or after Oct. 30, 1998, see section 11(d) of Pub. L. 105–311, set out as a note under section 8701 of this title.
### Effective Date of 1980 Amendment
Amendment by Pub. L. 96–427 effective Oct. 10, 1980, with the amendment to have no effect in case of an employee who died, was separated, or retired before Oct. 10, 1980, see section 10(a) of Pub. L. 96–427, set out as a note under section 8701 of this title.
### Effective Date of 1978 Amendment
Amendment by Pub. L. 95–454 effective 90 days after Oct. 13, 1978, see section 907 of Pub. L. 95–454, set out as a note under section 1101 of this title.
### Effective Date of 1967 Amendment
Amendment by Pub. L. 90–206 effective on first day of first pay period which begins on or after sixtieth day following Dec. 16, 1967, see section 405(a) of Pub. L. 90–206, set out as a note under section 8704 of this title.
### Retroactive Effect of 1967 Amendment
Amendment by Pub. L. 90–206 to have no effect in case of an employee who died, was finally separated, or retired prior to Dec. 16, 1967, see section 405(c) of Pub. L. 90–206, set out as a note under section 8704 of this title.