Title 5 United States Code §8421 (A) only basic pay for service performed (if any) shall be taken into account in computing the total wages and self-employment income of the annuitant for a benefit computation year; (B) for a benefit computation year which commences after the date of the separation with respect to which entitlement to the annuitant's annuity under this subchapter is based and before the date as of which such annuitant is treated, under the preceding sentence, to have attained age 62, the total wages and self-employment income of such annuitant for such year shall be deemed to be zero; and (C) for a benefit computation year after age 21 which precedes the separation referred to in subparagraph (B), and during which the individual did not perform a full year of service, the total wages and self-employment income of such annuitant for such year shall be deemed to have been an amount equal to the product of— (i) the average total wages of all workers for that year, multiplied by (ii) a fraction (I) the numerator of which is the total basic pay of the individual for service performed in the first year thereafter in which such individual performed a full year of service; and (II) the denominator of which is the average total wages of all workers for the year referred to in subclause (I). (3) The fraction under this paragraph for any annuitant is a fraction (A) the numerator of which is the annuitant's total years of service (rounding a fraction to the nearest whole number, with 2 being rounded to the next higher number), not to exceed the number under subparagraph (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. (c) An amount under this section shall, for purposes of section 8467, be treated in the same way as an amount computed under section 8415. $8421a. Reductions on account of earnings from work performed while entitled to an annuity supplement (a) The amount of the annuity supplement to which an individual is entitled under section 8421 for any month (determined without regard to subsection (c) of such section) shall be reduced by the amount of any excess earnings of such individual which are required to be charged to such supplement for such month, as determined under subsection (b). (b) The amount of an individual's excess earnings shall be charged to months as follows: (1)(A) There shall be charged to each month of a year under subsection (a) an amount equal to the individual's excess earnings (as determined under paragraph (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) Notwithstanding subparagraph (A), the amount charged to a month under subsection (a) may not exceed the amount of the annuity supplement to which the individual is entitled under section 8421 for such month (determined without regard to subsection (c) of such section). (2) The excess earnings based on which reductions under subsection (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 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 Title 5 United States Code §8422 8421 (determined without regard to subsection (c) of such section, and without regard to this section). (3)(A) Subject to subparagraph (B), the number of an individual's supplement entitlement months for a year shall be 12. (B) The number determined under subparagraph (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), relating to cessation of entitlement upon attaining age 62. (4)(A) For purposes of this section, and except as provided in subparagraph (B), the "earnings" 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 of any individual, only earnings attributable to periods during which such individual was entitled to an annuity supplement under section 8421 shall be considered; and (ii) any earnings attributable to a period before attaining the applicable retirement age under section 8412(h) shall not be considered in determining the excess earnings of an individual who retires under section 8412(d) or (e), or section 8414(c). (5) Notwithstanding paragraphs (1) through (4), the reduction required by subsection (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 were earned. (c) The Office shall prescribe regulations under which this section shall be applied in the case of a reemployed annuitant. §8422. Deductions from pay; contributions for other service (a)(1) The employing agency shall deduct and withhold from basic pay of each employee and Member a percentage of basic pay determined in accordance with paragraph (2). (2) The percentage to be deducted and withheld from basic pay for any pay period shall be equal to— (A) the applicable percentage under paragraph (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, and disability insurance). (3) The applicable percentage under this paragraph for civilian service shall be as follows: January 1, 1987, to December 31, 1998. January 1, 1987, to December 31, 1998. January 1, 1987, to December 31, 1998. January 1, 1987, to December 31, 1998. 7.75 January 1, 1999, to December 31, 1999. (b) Each employee or Member is deemed to consent and agree to the deductions under subsection (a). Notwithstanding any law or regulation affecting the pay of an employee or Member, payment less such deductions is a full and complete discharge and acquittance of all claims and demands for regular services 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 of the employee or Member. (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 under such procedures as the Secretary of the Treasury may prescribe. (d)(1) Under such regulations as the Office may prescribe, amounts deducted under subsection (a) shall be entered on individual retirement records. (2) Deposit may not be required for days of unused sick leave credited under section 8415(k). (e)(1)(A) Except as provided in subparagraph (B), and subject to paragraph (6), each employee or Member who has performed military service 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 shall issue, to the agency by which the employee is employed, or, in the case of a Member or a Congressional employee, 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 paid under section 204 of title 37 to the employee or Member for each period of military service after December 1956. The amount of such payments shall be based on such evidence of basic pay for military service as the employee or Member may provide, or if the Office determines sufficient evidence has not been so provided to adequately determine basic pay for military service, such payment shall be based on estimates of such basic pay provided to the Office under paragraph (4). (B) In any case where military service interrupts creditable civilian service under this subchapter and reemployment pursuant to chapter 43 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) from basic pay during civilian service if the employee had not performed the period of military service. (2) Any deposit made under paragraph (1) more than two years after the later of (A) January 1, 1987; or (B) the date on which the employee or Member making the deposit first becomes an employee or Member following the period of military service 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). (3) Any payment received by an agency, 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 for deposit in the Treasury of the United States to the credit of the Fund. (4) The Secretary of Defense, the Secretary of Transportation, the Secretary of Commerce, or the Secretary of Health and Human Services, as appropriate, shall furnish such information to the Office as the Office may determine to be necessary for the administration of this subsection. (5) For the purpose of survivor annuities, deposits authorized by this subsection may also be made by a survivor of an employee or Member. Title 5 United States Code §8423 (6) The percentage of basic pay under section 204 of title 37 payable under paragraph (1), with respect to any period of military service performed during— (A) January 1, 1999, through December 31, 1999, shall be 3.25 percent; (B) January 1, 2000, through December 31, 2000, shall be 3.4 percent; and (C) January 1, 2001, through December 31, 2002, shall be 3.5 percent. (f)(1) Each employee or Member who has performed service 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, 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 of Personnel Management shall issue, an amount equal to 3 percent of the readjustment allowance paid to the employee or Member 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 or Member under part A, B, or C of title I of the Domestic Volunteer Service Act of 1973, for each period of service as such a volunteer or volunteer leader. This paragraph shall be subject to paragraph (4). (2) Any deposit made under paragraph (1) more than 2 years after the later of (A) October 1, 1993, or (B) the date on which the employee or Member making the deposit first becomes an employee or Member, 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). (3) The Director of the Peace Corps and the Chief Executive Officer of the Corporation for National and Community Service shall furnish such information to the Office of Personnel Management as the Office 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), with respect to any period of volunteer service performed during (A) January 1, 1999, through December 31, 1999, shall be 3.25 percent; (B) January 1, 2000, through December 31, 2000, shall be 3.4 percent; and (C) January 1, 2001, through December 31, 2002, shall be 3.5 percent. (g) A Member who has served in a position in the executive branch for which the rate of basic pay was reduced for the duration of the service of the Member to remove the impediment to the appointment of the Member imposed by article I, section 6, clause 2 of the Constitution, or the survivor of such a Member, may deposit to the credit of the Fund an amount equal to the difference between the amount deducted from the basic pay of the Member during that period of service and the amount that would have been deducted if the rate of basic pay which would otherwise have been in effect during that period had been in effect, plus interest computed under section 8334(e). (h) No deposit may be made with respect to service credited under section 8411(b)(6). §8423. Government contributions (a)(1) Each employing agency having any employees or Members subject to section 8422(a) shall contribute to the Fund an amount equal to the sum of— (A) the product of— (i) the normal-cost percentage, as determined for employees (other than employees covered by subparagraph (B)), multiplied by (ii) the aggregate amount of basic pay payable by the agency, for the period involved, to employees (under clause (i)) who are within such agency; and (B) the product of— (i) the normal-cost percentage, as determined for Members, Congressional employees, law enforcement officers, firefighters, nuclear materials courier, air traffic controllers, military reserve technicians, and Title 5 United States Code §8423 employees under sections 302 and 303 of the Central Intelligence Agency Retirement Act, multiplied by (ii) the aggregate amount of basic pay payable by the agency, for the period involved, to employees and Members (under clause (i)) who are within such agency. (2) In determining any normal-cost percentage to be applied under this subsection, amounts provided for under section 8422 shall be taken into account. (3) Contributions under this subsection shall be paid (A) in the case of law enforcement officers, firefighters, nuclear materials courier, air traffic controllers, military reserve technicians, and other employees, from the appropriation or fund used to pay such law enforcement officers, members of the Supreme Court Police, firefighters, air traffic controllers, military reserve technicians, or other employees, respectively; (B) in the case of elected officials, from an appropriation or fund available for payment of other salaries of the same office or establishment; and (C) in the case of employees of the legislative branch paid by the Chief Administrative Officer of the House of Representatives, from the applicable accounts of the House of Representatives. (4) A contribution to the Fund under this subsection shall be deposited under such procedures as the Comptroller General of the United States may prescribe. (b)(1) The Office shall compute (A) the amount of the supplemental liability of the Fund with respect to individuals other than those to whom subparagraph (B) relates, and (B) the amount of the supplemental liability of the Fund with respect to current or former employees of the United States Postal Service (and the Postal Rate Commission) and their survivors; as of the close of each fiscal year beginning after September 30, 1987. (2) The amount of any supplemental liability computed under paragraph (1)(A) or (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. (3) At the end of each fiscal year, the Office 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); 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). (4)(A) Before closing the accounts for a fiscal year, the Secretary of the Treasury shall credit to the Fund, as a Government contribution, out of any money in the Treasury of the United States not otherwise appropriated, the amount under paragraph (3)(A) for such year. (B) Upon receiving notification under paragraph (3)(B), the United States Postal Service shall pay the amount specified in such notification to the Fund. (5) For the purpose of carrying out paragraph (1) with respect to any fiscal year, the Office may (A) require the Board of Actuaries of the Civil Service Retirement System to make actuarial determinations and valuations, make recommendations, and maintain records in the same manner as provided in section 8347(f); and (B) use the latest actuarial determinations and valuations made by such Board of Actuaries. (c) Under regulations prescribed by the Office, the head of an agency may request reconsideration of any amount determined to be payable with respect to such agency under subsection (a) or (b). Any such request shall be referred to the Board of Actuaries of the Civil Service Retirement System. The Board of Actuaries shall review the computations of the Office and may make any adjustment with respect to any such amount which the Board determines appropriate. A determination by the Board of Actuaries under this subsection shall be final. §8424. Lump-sum benefits; designation of beneficiary; order of precedence (a) Subject to subsection (b), an employee or Member who (1)(A) is separated from the service for at least 31 consecutive days; or |