Citations

Page 853

TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES

(e) If a present or former employee or Member
not retired dies, the voluntary contribution account is paid under section 8342(c) of this title.
If all additional annuities or any right thereto
based on the voluntary contribution account of
a deceased employee or Member terminate before the total additional annuity paid equals the
account, the difference is paid under section
8342(c) of this title.
(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 580; Pub. L.
90–83, § 1(82), Sept. 11, 1967, 81 Stat. 217; Pub. L.
95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92
Stat. 1224; Pub. L. 97–253, title III, § 303(a)(2),
Sept. 8, 1982, 96 Stat. 794.)
HISTORICAL AND REVISION NOTES
1966 ACT
Derivation
..................

Revised Statutes and
Statutes at Large

U.S. Code
5 U.S.C. 2262.

July 31, 1956, ch. 804, § 401
‘‘Sec. 12’’, 70 Stat. 756.
Aug. 14, 1958, Pub. L. 85–661,
§ 1, 72 Stat. 614.

In subsection (a), the words ‘‘after July 31, 1920’’ are
substituted for ‘‘on or after August 1, 1920’’. In paragraph (1), the words ‘‘payment under subsection (d) of
this section’’ are based on ‘‘but such account shall not
in any case include interest beyond date of payment’’
in former section 2262(d); the latter, accordingly, are
omitted from subsection (d).
Standard changes are made to conform with the definitions applicable and the style of this title as outlined
in the preface to the report.
1967 ACT
This section amends 5 U.S.C. 8343(a)(1) for consistency within the subchapter and to reflect that it is the
individual, rather than the position, that is subject to
the subchapter.
AMENDMENTS
1982—Subsec. (a). Pub. L. 97–253 inserted ‘‘through December 31, 1984, and thereafter at the rate computed
under section 8334(e) of this title,’’.
1978—Subsecs. (a), (d). Pub. L. 95–454 substituted ‘‘Office of Personnel Management’’ for ‘‘Civil Service Commission’’ and ‘‘Office’’ for ‘‘Commission’’.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub. L. 97–253 effective with respect
to deposits for service performed, on or after Oct. 1,
1982, and with respect to refunds for which application
is received by Office of Personnel Management on or
after Oct. 1, 1982, see section 303(d)(1) of Pub. L. 97–253,
as amended by Pub. L. 97–346, § 3(j)(1), Oct. 15, 1982, 96
Stat. 1649, set out as a note under section 8334 of this
title.

§ 8343a

(b) Subject to subsection (c), the Office shall
by regulation provide for such alternative forms
of annuities as the Office considers appropriate,
except that among the alternatives offered shall
be—
(1) an alternative which provides for—
(A) payment of the lump-sum credit to the
employee or Member; and
(B) payment of an annuity to the employee
or Member for life; and
(2) in the case of an employee or Member
who is married at the time of retirement, an
alternative which provides for—
(A) payment of the lump-sum credit to the
employee or Member; and
(B) payment of an annuity to the employee
or Member for life, with a survivor annuity
payable for the life of a surviving spouse.
(c) Each alternative provided for under subsection (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) is actuarially equivalent
to the present value of the annuity which would
otherwise be provided the employee or Member
under this subchapter, as computed under subsections (a)–(i), (n), (q), (r), and (s) of section
8339.
(d) An employee or Member 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 8339(j)(1) of this title; or
(2) has a former spouse, shall be ineligible to
make an election under this section if the
former spouse is entitled to benefits under section 8341(h) or 8345(j) of this title (based on the
service of the employee or Member) under the
terms of a decree of divorce or annulment, or
a court order or court-approved property settlement incident to any such decree, with respect to which the Office has been duly notified.
(e) An employee or Member 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 8339(o) of this title, subject to
the deposit requirement thereunder.

§ 8343a. Alternative forms of annuities

(Added Pub. L. 99–335, title II, § 204(a), June 6,
1986, 100 Stat. 591; amended Pub. L. 101–428,
§ 2(d)(5), Oct. 15, 1990, 104 Stat. 929; Pub. L.
101–508, title VII, § 7001(a)(1), Nov. 5, 1990, 104
Stat. 1388–327; Pub. L. 103–66, title XI, § 11002(a),
Aug. 10, 1993, 107 Stat. 409; Pub. L. 105–61, title V,
§ 516(a)(5), Oct. 10, 1997, 111 Stat. 1306; Pub. L.
106–553, § 1(a)(2) [title III, § 308(h)(5)], Dec. 21,
2000, 114 Stat. 2762, 2762A–89.)

(a) The Office of Personnel Management shall
prescribe regulations under which any employee
or Member who has a life-threatening affliction
or other critical medical condition may, at the
time of retiring under this subchapter (other
than under section 8337 of this title), elect annuity benefits under this section instead of any
other benefits under this subchapter (including
any benefits under section 8341 of this title)
based on the service of the employee or Member.

2000—Subsec. (c). Pub. L. 106–553 substituted ‘‘(a)–(i),
(n), (q), (r), and (s)’’ for ‘‘(a)–(i), (n), (q), and (r)’’.
1997—Subsec. (c). Pub. L. 105–61, which directed the
substitution of ‘‘(q), and (r) of section 8339’’ for ‘‘and (q)
of section 8339 of this title’’ in section 8334a(c), was executed by making the substitution in subsec. (c) of this
section to reflect the probable intent of Congress, because there is no section 8334a in this title.
1993—Subsec. (a). Pub. L. 103–66, § 11002(a)(1), substituted ‘‘any employee or Member who has a life-

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.

AMENDMENTS

§ 8343a

TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES

threatening affliction or other critical medical condition’’ for ‘‘an employee or Member’’.
Subsec. (f). Pub. L. 103–66, § 11002(a)(2), struck out subsec. (f) which prohibited election of alternative form of
annuity where commencement date would be after Dec.
1, 1990, with certain exceptions.
1990—Subsec. (c). Pub. L. 101–428 substituted ‘‘(a)–(i),
(n), and (q)’’ for ‘‘(a)–(i) and (n)’’.
Subsec. (f). Pub. L. 101–508 added subsec. (f).
EFFECTIVE DATE OF 2000 AMENDMENT
Amendment by Pub. L. 106–553 effective on the first
day of the first applicable pay period that begins on
Dec. 21, 2000, and applicable only to an individual who
is employed as a member of the Supreme Court Police
after Dec. 21, 2000, see section 1(a)(2) [title III, § 308(i),
(j)] of Pub. L. 106–553, set out in a Supreme Court Police
Retirement note under section 8331 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105–61 applicable to any annuity commencing before, on, or after Oct. 10, 1997, and effective with regard to any payment made after the first
month following Oct. 10, 1997, see section 516(b) of Pub.
L. 105–61, set out as a note under section 8334 of this
title.
EFFECTIVE DATE OF 1993 AMENDMENT
Section 11002(d) of Pub. L. 103–66 provided that: ‘‘The
amendments made by this section [amending this section and section 8420a of this title, section 4047 of Title
22, Foreign Relations and Intercourse, and section 2143
of Title 50, War and National Defense] shall become effective on October 1, 1994, and shall apply with respect
to any annuity commencing on or after that date.’’
EFFECTIVE DATE
Section effective June 6, 1986, see section 702(b)(3) of
Pub. L. 99–335, set out as a note under section 8401 of
this title.
APPLICABILITY OF SECTIONS 8343a(f) AND 8420a(f) TO INDIVIDUALS CALLED TO OR PERFORMING DUTY IN CONNECTION WITH OPERATION DESERT SHIELD
Section 7001(a)(4) of Pub. L. 101–508 provided that:
‘‘(A) In applying the provisions of section 8343a(f) or
8420a(f) of title 5, United States Code (as amended by
paragraph (1)) to any individual described in subparagraph (B), the reference in such provisions to ‘December 1, 1990’ shall be deemed to read ‘December 1, 1991’.
‘‘(B) This paragraph applies with respect to any individual who—
‘‘(i)(I) is a member of the Armed Forces of the
United States who, before December 1, 1990, was
called or ordered to active duty (other than for training) pursuant to section 672 [now 12301], 673 [now
12302], 673b [now 12304], 674 [now 12306], 675 [now 12307],
or 688 of title 10, United States Code, in connection
with Operation Desert Shield; or
‘‘(II) is an employee of the Department of Defense
who is certified by the Secretary of Defense to have
performed, after November 30, 1990, duties essential
for the support of Operation Desert Shield; and
‘‘(ii) would have been eligible to make an election
under section 8343a or 8420a of title 5, United States
Code (as amended by paragraph (1)) as of November
30, 1990.
‘‘(C) The Office of Personnel Management may prescribe such regulations as may be necessary to carry
out this paragraph.’’
PARTIAL DEFERRED PAYMENT OF LUMP-SUM CREDIT
FOR CERTAIN INDIVIDUALS ELECTING ALTERNATIVE
FORMS OF ANNUITIES
Pub. L. 101–239, title IV, § 4005, Dec. 19, 1989, 103 Stat.
2135, as amended by Pub. L. 101–508, title VII,
§ 7001(a)(2)(A)–(C)(i), Nov. 5, 1990, 104 Stat. 1388–328, provided that:

Page 854

‘‘(a) IN GENERAL.—Notwithstanding any other provision of law, and except as provided in subsection (c),
any lump-sum credit payable to an employee or Member pursuant to the election of an alternative form of
annuity by such employee or Member under section
8343a or section 8420a of title 5, United States Code,
shall be paid in accordance with the schedule under
subsection (b) (instead of the schedule which would
otherwise apply), if the commencement date of the annuity payable to such employee or Member occurs after
December 2, 1989, and before December 2, 1990.
‘‘(b) SCHEDULE OF PAYMENTS.—The schedule of payment of any lump-sum credit subject to this section is
as follows:
‘‘(1) 50 percent of the lump-sum credit shall be payable on the date on which, but for the enactment of
this section, the full amount of the lump-sum credit
would otherwise be payable.
‘‘(2) The remainder of the lump-sum credit shall be
payable on the date which occurs 12 months after the
date on which the payment described in paragraph (1)
is paid.
An amount payable in accordance with paragraph (2)
shall be payable with interest, computed using the rate
under section 8334(e)(3) of title 5, United States Code.
‘‘(c) EXCEPTIONS.—The Office of Personnel Management shall prescribe regulations to provide that, unless
the individual involved indicates otherwise by written
notice to the Office (submitted at such time and in
such manner as the regulations may require), this section shall not apply—
‘‘(1) in the case of any individual who is separated
from Government service involuntarily, other than
for cause on charges of misconduct or delinquency;
and
‘‘(2) in the case of any individual as to whom the
application of this section would be against equity
and good conscience, due to a life-threatening affliction or other critical medical condition affecting
such individual.
‘‘(d) ANNUITY BENEFITS NOT AFFECTED.—Nothing in
this section shall affect the commencement date, the
amount, or any other aspect of any annuity benefits
payable under section 8343a or section 8420a of title 5,
United States Code.
‘‘(e) DEFINITIONS.—For purposes of this section, the
terms ‘lump-sum credit’, ‘employee’, and ‘Member’
each has the meaning given such term by section 8331
or section 8401 of title 5, United States Code, as appropriate.
‘‘(f) CONTINUED APPLICABILITY.—The preceding provisions of this section (disregarding the provision in subsection (a) limiting this section’s applicability to annuities commencing before the date specified in such provision) shall also apply in the case of any employee or
Member whose election of an alternative form of annuity would not have been allowable under section
8343a(f) or 8420a(f) of title 5, United States Code (as the
case may be), but for—
‘‘(1) paragraph (2)(A) thereof; or
‘‘(2) section 7001(a)(4) of the Omnibus Budget Reconciliation Act of 1990 [Pub. L. 101–508, set out as a
note above].’’
[Section 7001(a)(2)(C)(ii) of Pub. L. 101–508 provided
that: ‘‘The amendments made by clause (i) [amending
section 4005 of Pub. L. 101–239 and section 6001 of Pub.
L. 100–203, set out as notes above and below] shall not
apply in any case in which the first half of the lumpsum payment involved was paid before the beginning of
the 11-month period which ends on the date of the enactment of this Act [Nov. 5, 1990].’’]
Similar provisions were contained in the following
acts:
Pub. L. 101–227, § 2, Dec. 12, 1989, 103 Stat. 1943, which
was repealed by Pub. L. 101–508, title VII, § 7001(a)(2)(D),
Nov. 5, 1990, 104 Stat. 1388–328.
Pub. L. 100–203, title VI, § 6001, Dec. 22, 1987, 101 Stat.
1330–275, as amended by Pub. L. 101–103, § 6, Sept. 30,
1989, 103 Stat. 672; Pub. L. 101–508, title VII,
§ 7001(a)(2)(C)(i), Nov. 5, 1990, 104 Stat. 1388–328.

Page 855

TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES

§ 8344. Annuities and pay on reemployment
(a) If an annuitant receiving annuity from the
Fund, except—
(1) a disability annuitant whose annuity is
terminated because of his recovery or restoration of earning capacity;
(2) an annuitant whose annuity, based on an
involuntary separation (other than an automatic separation or an involuntary separation
for cause on charges of misconduct or delinquency), is terminated under subsection (b) of
this section;
(3) an annuitant whose annuity is terminated under subsection (c) of this section; or
(4) a Member receiving annuity from the
Fund;
becomes employed in an appointive or elective
position, his service on and after the date he is
so employed is covered by this subchapter. Deductions for the Fund may not be withheld from
his pay unless the individual elects to have such
deductions withheld under subparagraph (A). An
amount equal to the annuity allocable to the period of actual employment shall be deducted
from his pay, except for lump-sum leave payment purposes under section 5551 of this title.
The amounts so deducted shall be deposited in
the Treasury of the United States to the credit
of the Fund. If the annuitant serves on a fulltime basis, except as President, for at least 1
year, or on a part-time basis for periods equivalent to at least 1 year of full-time service, in employment not excluding him from coverage
under section 8331(1)(i) or (ii) of this title—
(A) deductions for the Fund may be withheld
from his pay (if the employee so elects), and
his annuity on termination of employment is
increased by an annuity computed under section 8339(a), (b), (d), (e), (h), (i), (n), (q), (r), and
(s) as may apply based on the period of employment and the basic pay, before deduction,
averaged during that employment; and
(B) his lump-sum credit may not be reduced
by annuity paid during that employment.
If the annuitant is receiving a reduced annuity
as provided in section 8339(j) or section 8339(k)(2)
of this title, the increase in annuity payable
under subparagraph (A) of this subsection is reduced by 10 percent and the survivor annuity
payable under section 8341(b) of this title is increased by 55 percent of the increase in annuity
payable under such subparagraph (A), unless, at
the time of claiming the increase payable under
such subparagraph (A), the annuitant notifies
the Office of Personnel Management in writing
that he does not desire the survivor annuity to
be increased. If the annuitant dies while still reemployed, the survivor annuity payable is increased as though the reemployment had otherwise terminated. If the described employment of
the annuitant continues for at least 5 years, or
the equivalent of 5 years in the case of part-time
employment, he may elect, instead of the benefit provided by subparagraph (A) of this subsection, to deposit in the Fund (to the extent deposits or deductions have not otherwise been
made) an amount computed under section 8334(c)
of this title covering that employment and have
his rights redetermined under this subchapter. If
the annuitant dies while still reemployed and

§ 8344

the described employment had continued for at
least 5 years, or the equivalent of 5 years in the
case of part-time employment, the person entitled to survivor annuity under section 8341(b) of
this title may elect to deposit in the Fund and
have his rights redetermined under this subchapter.
(b) If an annuitant, other than a Member receiving an annuity from the Fund, whose annuity is based on an involuntary separation (other
than an automatic separation or an involuntary
separation for cause or charges on misconduct
or delinquency) is reemployed in a position in
which he is subject to this subchapter, payment
of the annuity terminates on reemployment.
(c) If an annuitant, other than a Member receiving an annuity from the Fund, is appointed
by the President to a position in which he is
subject to this subchapter, or is elected as a
Member, payment of the annuity terminates on
reemployment. Upon separation from such position, an individual whose annuity is so terminated is entitled to have his rights redetermined
under this subchapter, except that the amount
of the annuity resulting from such redetermination shall be at least equal to the amount of the
terminated annuity plus any increases under
section 8340 of this title occurring after the termination and before the commencement of the
redetermined annuity.
(d) If a Member receiving annuity from the
Fund becomes employed in an appointive or
elective position, annuity payments are discontinued during the employment and resumed on
termination of the employment in the amount
equal to the sum of the amount of the annuity
the member was receiving immediately before
the commencement of the employment and the
amount of the increases which would have been
made in the amount of the annuity under section 8340 of this title during the period of the
employment if the annuity had been payable
during that period, except that—
(1) the retired Member or Member separated
with title to immediate or deferred annuity,
who serves at any time after separation as a
Member in an appointive position in which he
is subject to this subchapter, is entitled, if he
so elects, to have his Member annuity computed or recomputed as if the service had been
performed before his separation as a Member
and the annuity as so computed or recomputed
is effective—
(A) the day Member annuity commences;
or
(B) the day after the date of separation
from the appointive position;
whichever is later;
(2) if the retired Member becomes employed
after December 31, 1958, in an appointive position on an intermittent-service basis—
(A) his annuity continues during the employment and is not increased as a result of
service performed during that employment;
(B) retirement deductions may not be
withheld from his pay;
(C) an amount equal to the annuity allocable to the period of actual employment shall
be deducted from his pay, except for lumpsum leave payment purposes under section
5551 of this title; and

Page 905

TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES
AMENDMENTS

1993—Subsec. (a)(1). Pub. L. 103–66, § 11004(b)(1), struck
out ‘‘, before the expiration of the 2-year period involved,’’ after ‘‘into the Fund’’.
Subsec. (b). Pub. L. 102–66, § 11004(b)(2), amended subsec. (b) generally. Prior to amendment, subsec. (b) read
as follows: ‘‘If the electing individual does not make
the deposit required under subsection (a), the Office
shall collect such amount by offset against such individual’s annuity, up to a maximum of 25 percent of the
net annuity otherwise payable, and the individual is
deemed to consent to such offset.’’
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103–66 effective on first day of
first month beginning at least 30 days after Aug. 10,
1993, and applicable to all deposits required under section 8339(j)(3) or (5), 8339(k)(2), or 8418 of this title, on
which no payment has been made prior to such effective date, with provision for partial deposit, see section
11004(c) of Pub. L. 103–66, set out as a note under section
8339 of this title.

§ 8419. Survivor reductions; computation
(a)(1) Except as provided in paragraph (2), the
annuity of an annuitant computed under section
8415, or under section 8452 (including subsection
(a)(2) of such section, if applicable) or one-half
of the annuity, if jointly designated for this purpose by the employee or Member and the spouse
of the employee or Member under procedures
prescribed by the Office of Personnel Management, shall be reduced by 10 percent if a survivor annuity, or a combination of survivor annuities, under section 8442 or 8445 (or both) are
to be provided for.
(2)(A) If no survivor annuity under section 8442
is to be provided for, but one or more survivor
annuities under section 8445 involving a total of
less than the entirety of the amount referred to
in subsection (b)(2) of such section are to be provided for, the annuity of the annuitant involved
(as computed under section 8415, or under section 8452 (including subsection (a)(2) of such section, if applicable)) or one-half of the annuity, if
jointly designated for this purpose by the employee or Member and the spouse of the employee or Member under procedures prescribed
by the Office of Personnel Management, shall be
reduced by an appropriate percentage determined under subparagraph (B).
(B) The Office 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 annuity for the current spouse of a retired employee or Member
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 or Member, except that
an appropriate reduction shall be made thereafter if the spouse is entitled, as a former
spouse, to a survivor annuity under section
8445.
(2) Any reduction in an annuity for the purpose of providing a survivor annuity for a
former spouse of a retired employee or Member
shall be terminated for each full month after the
former spouse remarries before reaching age 55
or dies. This reduction shall be replaced by ap-

§ 8420a

propriate reductions under subsection (a) if the
retired employee or Member has one or more of
the following:
(A) another former spouse who is entitled to
a survivor annuity under section 8445;
(B) a current spouse to whom the employee
or Member was married at the time of retirement and with respect to whom a survivor annuity was not waived under section 8416(a) (or,
if waived, with respect to whom an election
under section 8416(d) has been made); or
(C) a current spouse whom the employee or
Member married after retirement and with respect to whom an election has been made
under subsection (b) or (c) of section 8416.
(Added Pub. L. 99–335, title I, § 101(a), June 6,
1986, 100 Stat. 531; amended Pub. L. 100–238, title
I, § 131(a), Jan. 8, 1988, 101 Stat. 1759.)
AMENDMENTS
1988—Subsec. (a)(1), (2)(A). Pub. L. 100–238 inserted
‘‘or one-half of the annuity, if jointly designated for
this purpose by the employee or Member and the spouse
of the employee or Member under procedures prescribed
by the Office of Personnel Management’’ before ‘‘, shall
be reduced’’.

§ 8420. Insurable interest reductions
(a)(1) At the time of retiring under section
8412, 8413, or 8414, an employee or Member who is
found to be in good health by the Office may
elect to have such employee’s or Member’s annuity (as computed under section 8415) reduced
under paragraph (2) in order to provide an annuity under section 8444 for an individual having
an insurable interest in the employee or Member. Such individual shall be designated by the
employee or Member in writing.
(2) The annuity of the employee or Member
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 or Member, 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 or
Member, an election under this section on behalf
of the spouse may be made only if any right of
such spouse to a survivor annuity based on the
service of such employee or Member is waived in
accordance with section 8416(a).
(2) Paragraph (1) does not apply in the case of
an employee or Member if such employee or
Member has a former spouse who would become
entitled to an annuity under section 8445 as a
survivor of such employee or Member.
(Added Pub. L. 99–335, title I, § 101(a), June 6,
1986, 100 Stat. 532.)
§ 8420a. Alternative forms of annuities
(a) The Office shall prescribe regulations
under which any employee or Member 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

§ 8421

TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES

this subchapter, and any benefits under subchapter IV of this chapter, based on the service
of the employee or Member.
(b) Subject to subsection (c), the Office shall
by regulation provide for such alternative forms
of annuities as the Office considers appropriate,
except that among the alternatives offered shall
be—
(1) an alternative which provides for—
(A) payment of the lump-sum credit (excluding interest) to the employee or Member; and
(B) payment of an annuity to the employee
or Member for life; and
(2) in the case of an employee or Member
who is married at the time of retirement, an
alternative which provides for—
(A) payment of the lump-sum credit (excluding interest) to the employee or Member; and
(B) payment of an annuity to the employee
or Member for life, with a survivor annuity
payable for the life of a surviving spouse.
(c) Each alternative provided for under subsection (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) 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; and
(2) the present value of the annuity supplement which would otherwise be provided (if
any) under section 8421.
(d) An employee or Member 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); or
(2) has a former spouse, shall be ineligible to
make an election under this section if the
former spouse is entitled to benefits under section 8445 or 8467 (based on the service of the
employee or Member) under the terms of a decree of divorce or annulment, or a court order
or court-approved property settlement incident to any such decree, with respect to which
the Office has been duly notified.
(e) An employee or Member 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), subject to the deposit
requirement thereunder.
(Added Pub. L. 99–335, title I, § 101(a), June 6,
1986, 100 Stat. 532; amended Pub. L. 101–508, title
VII, § 7001(a)(1), Nov. 5, 1990, 104 Stat. 1388–327;
Pub. L. 103–66, title XI, § 11002(a), Aug. 10, 1993,
107 Stat. 409.)
AMENDMENTS
1993—Subsec. (a). Pub. L. 103–66, § 11002(a)(1), substituted ‘‘any employee or Member who has a lifethreatening affliction or other critical medical condition’’ for ‘‘an employee or Member’’.
Subsec. (f). Pub. L. 103–66, § 11002(a)(2), struck out subsec. (f) which prohibited election of alternative form of

Page 906

annuity where commencement date would be after Dec.
1, 1990, with certain exceptions.
1990—Subsec. (f). Pub. L. 101–508 added subsec. (f).
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103–66 effective Oct. 1, 1994,
and applicable with respect to any annuity commencing on or after that date, see section 11002(d) of Pub. L.
103–66, set out as a note under section 8343a of this title.
APPLICABILITY OF SECTIONS 8343a(f) AND 8420a(f) TO INDIVIDUALS CALLED TO OR PERFORMING DUTY IN CONNECTION WITH OPERATION DESERT SHIELD
For provisions relating to application of subsec. (f) of
this section to certain members of Armed Forces who
were called or ordered to active duty in connection
with Operation Desert Shield and to certain employees
of Department of Defense who are certified to have performed duties essential for support of Operation Desert
Shield, see section 7001(a)(4) of Pub. L. 101–508, set out
as a note under section 8343a of this title.
PARTIAL DEFERRED PAYMENT OF LUMP-SUM CREDIT
FOR CERTAIN INDIVIDUALS ELECTING ALTERNATIVE
FORMS OF ANNUITIES
For provisions relating to deferred payment of lumpsum credit for certain individuals electing alternative
forms of annuities, see notes set out under section 8343a
of this title.

§ 8421. Annuity supplement
(a)(1) Subject to paragraph (3), an individual
shall, if and while entitled to an annuity under
subsection (a), (b), (d), or (e) of section 8412, or
under section 8414(c), also be entitled to an annuity supplement under this section.
(2) Subject to paragraph (3), an individual
shall, if and while entitled to an annuity under
section 8412(f), or under subsection (a) or (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).
(3)(A) An individual whose entitlement to an
annuity under section 8412 or 8414 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 under this section for any
month shall be equal to the product of—
(A) an amount determined under paragraph
(2), multiplied by
(B) a fraction, as described in paragraph (3).
(2) The amount under this paragraph for an
annuitant is an amount equal to the old-age insurance benefit which would be payable to such
annuitant 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 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’s
entitlement to any payment under this section

Office of Personnel Management

§ 831.2203

agency, the Clerk of the House of Representatives, or the Secretary of the
Senate shall accept installment payments (by allotments or otherwise).
However, agencies, the Clerk of the
House of Representatives, and the Secretary of the Senate will not be required to accept individual checks in
amounts of less than $50.
(3) If the employee or Member dies,
the employing agency, the Clerk of the
House of Representatives or the Secretary of the Senate shall advise the
survivor of the right to make or complete a deposit. If the survivor decides
to make or complete the payment, the
agency, the Clerk of the House of Representatives, or the Secretary of the
Senate shall collect the amount due in
one lump sum.
(4) Payments received by the employing agency, the Clerk of the House of
Representatives, or the Secretary of
the Senate shall be remitted immediately to OPM for deposit to the Fund.
(5) Once the employee’s, Member’s, or
survivor’s deposit has been paid in full
or closed out, the employing agency,
the Clerk of the House of Representatives, or the Secretary of the Senate
shall submit documentation pertaining
to the deposit to OPM, in accordance
with instructions published by OPM
issuances.
(6) Deposits must be made for full periods of service.
(b) Deposits made to OPM.
(1) Deposits made to OPM shall be
made in a lump sum prior to final adjudication of the application for retirement or survivor benefits.
(2) Deposits must be made for full periods of service.
[48 FR 38788, Aug. 26, 1983, as amended at 49
FR 20631, May 16, 1984; 66 FR 66711, Dec. 27,
2001]

Subpart V—Alternative Forms of
Annuities
SOURCE: 51 FR 42989, Nov. 28, 1986, unless
otherwise noted.

§ 831.2201

Purpose.

This subpart explains the benefits
available to employees and Members
who elect an alternative form of annu-

ity under section 8343a of title 5,
United States Code.
§ 831.2202 Definitions.
In this subpart—
Alternative form of annuity means the
benefit elected under § 831.2204.
Current spouse annuity has the same
meaning as in § 831.603.
Date of final adjudication means the
date 30 days after the date of the first
regular monthly payment as defined in
§ 831.603.
Former spouse annuity has the same
meaning as in § 831.603.
Lump-sum credit has the same meaning as in 5 U.S.C. 8331(8).
Present value factor represents the
amount of money (earning interest at
an assumed rate) required at the time
of retirement to fund an annuity that:
(a) Starts out at the rate of $1 a month
and is payable in monthly installments
for the annuitant’s lifetime based on
mortality rates for non-disability annuitants under the Civil Service Retirement System; and (b) increases
each year at an assumed rate of inflation. Interest, mortality, and inflation
rates used in computing the present
value are those used by the Board of
Actuaries of the Civil Service Retirement System for valuation of the System, based on dynamic assumptions.
The present value factors are unisex
factors obtained by averaging sex-distinct present value factors, weighted
by the total dollar value of annuities
typically paid to new retirees at each
age.
Time of retirement has the same meaning as in § 831.603.
[51 FR 42989, Nov. 28, 1986, as amended at 54
FR 10136, Mar. 10, 1989]

§ 831.2203 Eligibility.
(a) Except as provided in paragraphs
(b), (c), and (h) of this section, an employee or Member whose annuity entitlement commences after June 5, 1986,
under any provision of subchapter III
of chapter 83 of title 5, United States
Code (other than section 8337 of that
title), may elect an alternative form of
annuity instead of any other benefits
under the subchapter.
(b) An employee or Member who, at
the time of retirement has a former
spouse who is entitled to a portion of

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§ 831.2203

5 CFR Ch. I (1–1–13 Edition)

the employee’s or Member’s retirement
benefits or a former spouse annuity
under a court order acceptable for
processing as defined by § 838.103 of this
chapter or under a qualifying court
order as defined in § 838.1003 of this
chapter may not elect an alternative
form of annuity.
(c) An employee or Member who is
married at the time of retirement may
not elect an alternative form of annuity unless the employee’s or Member’s
spouse specifically consents to the
election before the date of final adjudication. OPM may waive spousal consent only under the conditions prescribed by § 831.618.
(d) The election of an alternative
form of annuity and evidence of spousal consent must be filed on a form prescribed by OPM. The form will require
that a notary public or other official
authorized to administer oaths certify
that the current spouse presented identification, gave consent to the specific
election as executed by the retiree,
signed or marked the form, and acknowledged that the consent was given
freely in the notary’s or official’s presence.
(e) An election of the alternative
form of annuity must be in writing and
received by OPM on or before the date
of final adjudication. After the date of
final adjudication, an election of the
alternative form of annuity is irrevocable.
(f) Except as provided in paragraph
(g), an annuitant who dies before the
date of final adjudication is deemed to
have made an affirmative election
under paragraph (a) with a fully reduced annuity to provide a current
spouse annuity, regardless of any election completed under § 831.614, and the
lump-sum credit will be paid in accordance with the order of precedence established under 5 U.S.C. 8342(c).
(g) If an annuitant described in paragraph (f) has completed an election
under § 831.611(a) or (b)—
(1) The lump-sum credit will be paid
in accordance with the order of precedence established under 5 U.S.C.
8342(c); and
(2) The election under § 831.611(a) or
(b) will be honored.
(h)(1)(i) An individual whose annuity
commences after December 1, 1990, and

before October 1, 1994, may elect an alternative form of annuity only if that
individual is—
(A) An employee or Member who
meets the conditions and fulfills the
requirements described in § 831.2207(c)
(2) and (3); or
(B) An employee who is separated involuntarily other than for cause on
charges of misconduct or delinquency;
(ii) An individual whose annuity
commences on or after October 1, 1994,
may elect an alternative form of annuity only if that individual is an employee or Member who meets the conditions and fulfills the requirements
described in § 831.2207(c) (2) and (3).
(2) For the purpose of paragraph
(h)(1)(i)(B) of this section, the term
‘‘employee’’ does not include—
(i) Members of Congress;
(ii) Individuals in positions in the Executive Schedule under sections 5312
through 5317 of title 5, United States
Code;
(iii) Presidential appointees under
section 105(a)(1), 106(a)(1), or 107 (a)(1)
or (b)(1) of title 3, United States Code,
if the maximum basic pay for such positions is at or above the rate for Executive Schedule, level V;
(iv) Noncareer appointees in the Senior Executive Service or noncareer
members of the Senior Foreign Service; and
(v) Any individual in a position that
is excepted from the competitive service because of its confidential, policydetermining, policy-making, or policyadvocating character.
(3) Notwithstanding paragraph (h)(1)
of this section, an employee whose annuity commences after December 1,
1990, and before December 2, 1991, may
elect an alternative form of annuity if
that individual—
(i)(A) Was ordered to active military
duty (other than for training) before
December 1, 1990, in connection with
Operation Desert Shield; or
(B) Is an employee of the Department
of Defense who is certified by the Secretary of Defense to have performed,
after November 30, 1990, duties essential to support Operation Desert
Shield, and the certification is submitted to OPM in a form prescribed by
OPM; and

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Office of Personnel Management

§ 831.2207

(ii) Would have been eligible, as of
November 30, 1990, to elect an alternative form of annuity under paragraph (a) of this section.
[51 FR 42989, Nov. 28, 1986, as amended at 53
FR 11634, Apr. 8, 1988; 56 FR 6551, Feb. 19,
1991; 57 FR 33598, July 29, 1992; 58 FR 52882,
Oct. 13, 1993; 60 FR 54586, 54587, Oct. 25, 1995]

§ 831.2204 Alternative forms of annuities available.
(a) An employee or Member who is eligible to make an election under
§ 831.2203 may elect to receive his or her
lump-sum credit plus an annuity computed in accordance with section 8339
of title 5, United States Code, for which
they qualify (including any reduction
for survivor benefits) and reduced
under § 831.2205.
(b) A retired employee or Member
who elected an alternative form of annuity is subject to all provisions of
subchapter III of chapter 83 of title 5,
United States Code, as would otherwise
apply to a retired employee or Member
who did not elect an alternative form
of annuity, except that an individual
who elected an alternative form of annuity is not eligible to apply for disability annuity under section 8337 of
such subchapter.
[51 FR 42989, Nov. 28, 1986, as amended at 53
FR 11634, Apr. 8, 1988; 54 FR 10136, Mar. 10,
1989]

§ 831.2205 Computation of alternative
form of annuity.
(a) To compute the beginning rate of
annuity payable to a retiree who elects
an alternative form of annuity, OPM
will first compute the monthly rate of
annuity otherwise payable under subchapter III of chapter 83 of title 5,
United States Code, including all reductions provided under the subchapter
other than those in § 8343a. That
monthly rate is then reduced by an
amount equal to the retiree’s lumpsum credit divided by the present value
factor for the retiree’s attained age (in
full years) at the time of retirement.
The reduced monthly rate is then
rounded to the next lowest dollar and
becomes the rate of annuity payable.
(b) OPM will publish a notice in the
FEDERAL REGISTER announcing any
proposed adjustments in present value

factors at least 30 days before the effective date of the adjustments.
§ 831.2206 Election to pay deposit or
redeposit for civilian service.
(a) If an employee or Member who
elects an alternative form of annuity
owes a deposit or redeposit for civilian
service, and elects to pay that deposit
or redeposit before the date of final adjudication, OPM will compute the annuity as if the deposit or redeposit had
been made and will deem that deposit
or redeposit to be included in the lumpsum credit for the purpose of computing the reduction in annuity under
§ 831.2205.
(b) The amount of a deposit or redeposit deemed paid under paragraph (a)
of this section will include any interest
owed by the employee or Member under
5 U.S.C. 8334.
(c) For the purpose of paragraph (a)
of this section, ‘‘redeposit’’ does not include a redeposit owed for service for
which credit is allowed pursuant to
§ 831.303(c)(1).
[54 FR 10136, Mar. 10, 1989, as amended at 56
FR 43865, Sept. 5, 1991]

§ 831.2207 Partial deferred payment of
the lump-sum credit if annuity commences after January 3, 1988, and
before October 1, 1989.
(a) Except as provided in paragraph
(c) of this section, if the annuity of an
employee or Member commences after
January 3, 1988, and before October 1,
1989, the lump-sum credit payable
under § 831.2204 is payable to the individual, or his or her survivors, according to the following schedule:
(1) Sixty percent of the lump-sum
credit is payable at the time of retirement, and
(2) Forty percent is payable, with interest
determined
under
section
8334(e)(3) of title 5, United States Code,
one year after the time of retirement.
(b) If an employee or Member whose
annuity commences after January 3,
1988, and before October 1, 1989, dies before the date of final adjudication, that
individual is subject to § 831.2203 (f) or
(g), but the lump-sum credit will be
paid in accordance with the schedule in
paragraph (a) of this section.

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§ 831.2208

5 CFR Ch. I (1–1–13 Edition)

(c) An annuitant is exempt from the
deferred payment schedule under paragraph (a) of this section if the individual—
(1) Separates involuntarily, other
than for cause on charges of delinquency or misconduct, or
(2) Has, at the time of retirement, a
life-threatening affliction or other critical medical condition.
(3)(i) For the purpose of this section,
life-threatening affliction or other critical
medical condition means a medical condition so severe as to reasonably limit
an individual’s probable life expectancy to less than 2 years.
(ii) The existence of one of the following medical conditions is prima facie
evidence of a life threatening affliction
or other critical medical condition:
(A) Metastatic and/or inoperable neoplasms.
(B) Aortic stenosis (severe).
(C) Class IV cardiac disease with congestive heart failure.
(D) Respiratory failure.
(E) Cor pulmonale with respiratory
failure.
(F) Emphysema with respiratory failure.
(G) [Reserved]
(H) Severe cardiomyopathy—Class
IV.
(I) Aplastic anemia.
(J) Uncontrolled hypertension with
hypertensive encephalopathy.
(K) Cardiac aneurysm not amenable
to surgical treatment.
(L) Agranulocytosis.
(M) Severe hepatic failure.
(N) Severe Hypoxic brain damage.
(O) Severe portal hypertension with
esophageal varices.
(P) AIDS (Active—Not AIDS Related
Complex or only seropositivity).
(Q) Life threatening infections (encephalitis, meningitis, rabies, etc.).
(R) Scleroderma with severe esophageal involvement.
(S) Amyotrophic lateral sclerosis
(rapidly progressive).
(T) Hemiplegia with life threatening
complications.
(U) Quadriplegia with life threatening complications.
(iii) Evidence of the existence of a
life-threatening affliction or other critical medical condition must be certified by a physician and sent to OPM

on or before the date the annuitant
elects to receive an alternative form of
annuity. For the purpose of this section, ‘‘physician’’ has the same meaning given that term in § 339.102 of this
chapter.
(iv) If a medical condition other than
those listed in paragraph (c)(3)(ii) of
this section is claimed as a basis for exemption from the deferred payment
schedule, OPM will review the physician’s
certification
to
determine
whether the cited condition is lifethreatening or critical.
(v) The cost of providing medical documentation under this paragraph rests
with the employee or Member, unless
OPM exercises its choice of physician.
[53 FR 11634, Apr. 8, 1988, as amended at 60
FR 54586, Oct. 25, 1995]

§ 831.2208 Partial deferred payment of
the lump-sum credit if annuity commences after December 2, 1989, and
before October 1, 1995.
(a) Except as provided in paragraph
(c) of this section, if the annuity of a
retiree commences after December 2,
1989, and before October 1, 1994, the
lump-sum
credit
payable
under
§ 831.2204 is payable to the individual,
or his or her survivors, according to
the following schedule:
(1) Fifty percent of the lump-sum
credit is payable at the time of retirement, and
(2) Fifty percent is payable, with interest
determined
under
section
8334(e)(3) of title 5, United States Code,
1 year after the time of retirement, except if the payment date of the amount
specified in paragraph (a)(1) of this section was after December 4, 1989, payment with interest will be made in the
calendar year following the calendar
year in which the payment specified in
paragraph (a)(1) of this section was
made.
(b) If a retiree whose annuity commences after December 2, 1989, and before October 1, 1994, and who is otherwise entitled to a computation under
this subpart, dies before the date of
final adjudication, that individual is
subject to § 831.2203 (f) or (g), but the
lump-sum credit will be paid in accordance with the schedule in paragraph (a)
of this section.

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Office of Personnel Management

§ 835.601

(c)(1) A retiree is exempt from the deferred payment schedule under paragraph (a) of this section if the individual meets the conditions, and fulfills the requirements, described in
§ 831.2207(c).
(2)(i) A retiree who is exempt from
the deferred payment schedule may
waive that exemption by notifying
OPM, in writing, on or before the date
he or she elects to receive the alternative form of annuity.
(ii) Paragraph (c)(2)(i) of this section
does not apply to an individual whose
annuity commences after December 1,
1990, if that individual’s eligibility to
elect an alternative form of annuity is
pursuant to § 831.2203(h)(1)(i)(A).
(iii) A waiver under paragraph
(c)(2)(i) of this section cannot be revoked.
[56 FR 6551, Feb. 19, 1991, as amended at 56
FR 43865, Sept. 5, 1991; 60 FR 54587, Oct. 25,
1995]

(1)(i) Any reduction that was computed under § 831.2205 at the time of the
annuitant’s prior retirement, increased
by—
(ii) All cost-of-living adjustments
under section 8340 of title 5, United
States Code that applied to the annuitant before the commencing date of
the redetermined annuity, and
(2) An amount equal to the annuitant’s lump-sum credit, divided by the
present value factor for the annuitant’s
attained age on the date the redetermined annuity commences.
(d) The beginning rate of a redetermined annuity payable to an annuitant
who does not elect, or is not eligible to
elect, an alternative form of annuity
will be reduced in accordance with
paragraph (c)(1) of this section.
[54 FR 10136, Mar. 10, 1989. Redesignated at 55
FR 4597, Feb. 9, 1990]

PART 835—DEBT COLLECTION

§ 831.2209 Redetermined annuity after
reemployment.

Subparts A–E [Reserved]

(a) For purposes of this section,
‘‘lump-sum credit’’ does not include—
(1) The amount by which the lumpsum credit attributable to service performed before the annuitant’s first retirement was reduced by annuity payments that were not reimbursed by the
employing agency under section 8344(a)
of title 5, United States Code, or
(2) Any part of the lump-sum credit
attributable to service performed before the annuitant’s first retirement
that has already been paid to the annuitant pursuant to an election or an alternative form of annuity.
(b) An annuitant who meets the requirements for a redetermined annuity
under subpart H, and who meets all requirements of § 831.2203, may elect an
alternative form of annuity.
(c) To compute the beginning rate of
the redetermined annuity payable to
an annuitant who elects an alternative
form of annuity, OPM will first compute the monthly rate payable under
subchapter III of chapter 83 of title 5,
United States Code, including all reductions provided under the subchapter
other than those in section 8343a. That
monthly rate is then reduced by the
sum of—

Subpart F—Collection of Debts by Federal
Tax Refund Offset
Sec.
835.601 Purpose.
835.602 Past-due legally enforceable debt.
835.603 Notification of intent to collect.
835.604 Reasonable attempt to notify.
835.605 OPM action as a result of consideration of evidence submitted as a result of
the notice of intent.
835.606 Change in notification to Internal
Revenue Service.
835.607 Administrative charges.
AUTHORITY: 5 U.S.C. 8347(a) and 8461(g).
Subpart F also issued under 31 U.S.C. 3720A.
SOURCE: 57 FR 61771, Dec. 29, 1992, unless
otherwise noted.

Subparts A–E [Reserved]
Subpart F—Collection of Debts by
Federal Tax Refund Offset
§ 835.601 Purpose.
This subpart establishes procedures
for OPM to refer past-due legally enforceable debts to the Internal Revenue
Service (IRS) for offset against the income tax refunds of persons owing
debts to OPM. It specifies the agency
procedures and the rights of the debtor

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§ 842.701

5 CFR Ch. I (1–1–13 Edition)

age on the commencing date of the reduction under paragraph (b)(3) of this
section (plus any previous reduction(s)
in the retiree’s annuity required under
paragraph (b)(2) or (c)(2) of this section); or
(ii) Twenty-five percent of the rate of
the retiree’s self-only annuity on the
commencing date of the reduction
(under paragraph (b)(3) of this section).
(5)(i) The reduction under paragraph
(b)(2) or paragraph (c)(2) of this section
terminates on the date that the retiree
dies.
(ii) If payment of a retiree’s annuity
is suspended or terminated and later
reinstated, or if a new annuity becomes
payable, OPM will increase the amount
of the original reduction computed
under paragraph (b)(4) or paragraph
(c)(4) of this section by any cost-of-living adjustments under section 8462 of
title 5, United States Code, occurring
between the commencing date of the
original reduction and the commencing
date of the reinstated or new annuity
(but the adjusted reduction may not
exceed 25 percent of the rate of the reinstated or new self-only annuity).
(c) Post-retirement survivor election deposits that were partially paid before October 1, 1993. (1) The annuity reduction
required by paragraph (c)(2) of this section applies to all retirees who are required to pay deposits under § 842.611 or
§ 842.612 and have paid any portion (but
not all) of the deposit prior to October
1, 1993, or from annuity accruing before
that date.
(2) Retirees described in paragraph
(c)(1) of this section must have a permanent annuity reduction computed
under paragraph (c)(4) of this section.
(3) A reduction under paragraph (c)(2)
of this section commences on October
1, 1993.
(4) The annuity reduction under paragraph (c)(2) of this section is equal to
the lesser of—
(i) The amount of the principal balance remaining to be paid on October 1,
1993, divided by the present value factor for the retiree’s age on October 1,
1993; or
(ii) Twenty-five percent of the rate of
the retiree’s self-only annuity on October 1, 1993.

(5)(i) The reduction under paragraph
(c)(2) of this section terminates on the
date that the retiree dies.
(ii) If payment of a retiree’s annuity
is suspended or terminated and later
reinstated, or if a new annuity becomes
payable, OPM will increase the amount
of the original reduction computed
under paragraph (b)(4) or paragraph
(c)(4) of this section by any cost-of-living adjustments under section 8462 of
title 5, United States Code, occurring
between the commencing date of the
original reduction and the commencing
date of the reinstated or new annuity
(but the adjusted reduction may not
exceed 25 percent of the rate of the reinstated or new self-only annuity).
(d) For retirees who die before October 1, 1993, any unpaid portion of the
deposit required under § 842.611 or
§ 842.612 will be collected from the survivor annuity (for which the election
required the deposit) before OPM pays
any survivor annuity.
[52 FR 2061, Jan. 16, 1987, as amended at 58
FR 52883, Oct. 13, 1993]

Subpart G—Alternative Forms of
Annuities
SOURCE: 52 FR 2067, Jan. 16, 1987, unless
otherwise noted.

§ 842.701 Purpose.
This subpart explains the benefits
available to employees and Members
who elect alternative forms of annuity
under section 8420a of title 5, United
States Code.
§ 842.702 Definitions.
In this subpart—
Alternative form of annuity means the
benefit elected under § 842.705.
Current spouse annuity has the same
meaning as in § 842.602.
Date of final adjudication means the
date 30 days after the date of the first
regular monthly payment as defined in
§ 831.603.
Former spouse annuity has the same
meaning as in § 842.602.
Present value factor represents the
amount of money (earning interest at
an assumed rate) required at the time
of retirement to fund an annuity that
(a) starts out at the rate of $1 a month

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Office of Personnel Management

§ 842.703

and is payable in monthly installments
for the annuitant’s lifetime based on
mortality rates for non-disability annuitants; and (b) increases each year at
an assumed rate of inflation. Interest,
mortality, and inflation rates used in
computing the present value are those
used by the Board of Actuaries for
valuation of the System, based on dynamic assumptions. The present value
factors are unisex factors obtained by
averaging sex-distinct present value
factors, weighted by the total dollar
value of annuities typically paid to
new retirees at each age.
Time of retirement has the same meaning as in § 842.602.
[52 FR 2067, Jan. 16, 1987, as amended at 53
FR 11635, Apr. 8, 1988]

§ 842.703

Eligibility.

(a) Except as provided in paragraphs
(b), (c), and (d) of this section, an employee or Member who retires under
any provision of subchapter II of chapter 84 of title 5, United States Code,
may elect an alternative form of annuity instead of any other benefits under
the subchapter.
(b) An employee or Member who, at
the time of retirement has a former
spouse who is entitled to a portion of
the employee’s or Member’s retirement
benefits or a former spouse annuity
under a court order acceptable for
processing as defined by § 838.103 of this
chapter or a qualifying court order as
defined in § 838.1003 of this chapter may
not elect an alternative form of annuity.
(c) An employee or Member who is
married at the time of retirement may
not elect an alternative form of annuity unless the employee’s or Member’s
spouse specifically consents to the
election. OPM may waive spousal consent only under the conditions prescribed by § 842.607.
(d)(1)(i) An individual whose annuity
commences after December 1, 1990, and
before October 1, 1994, may elect an alternative form of annuity only if that
individual is—
(A) An employee or Member who
meets the conditions and fulfills the
requirements described in § 842.707(c) (2)
and (3); or

(B) An employee who is separated involuntarily other than for cause on
charges of misconduct or delinquency;
(ii) An individual whose annuity
commences on or after October 1, 1994,
may elect an alternative form of annuity only if that individual is an employee or Member who meets the conditions and fulfills the requirements
described in § 842.707(c) (2) and (3).
(2) For the purpose of paragraph
(d)(1)(i)(B) of this section, the term
‘‘employee’’ does not include—
(i) Members of Congress;
(ii) Individuals in positions in the Executive Schedule under sections 5312
through 5317 of title 5, United States
Code;
(iii) Presidential appointees under
section 105(a)(1), 106(a)(1), or 107 (a)(1)
or (b)(1) of title 3, United States Code,
if the maximum basic pay for such positions is at or above the rate for Executive Schedule, level V;
(iv) Noncareer appointees in the Senior Executive Service or noncareer
members of the Senior Foreign Service; and
(v) Any individual in a position that
is excepted from the competitive service because of its confidential, policydetermining, policy-making, or policyadvocating character.
(3) Notwithstanding paragraph (d)(1)
of this section, an employee whose annuity commences after December 1,
1990, and before December 2, 1991, may
elect an alternative form of annuity if
that individual—
(i)(A) Was ordered to active military
duty (other than for training) before
December 1, 1990, in connection with
Operation Desert Shield; or
(B) Is an employee of the Department
of Defense who is certified by the Secretary of Defense to have performed,
after November 30, 1990, duties essential to support Operation Desert
Shield, and the certification is submitted to OPM in a form prescribed by
OPM; and
(ii) Would have been eligible, as of
November 30, 1990, to elect an alternative form of annuity under paragraph (a) of this section.
[52 FR 2067, Jan. 16, 1987, as amended at 56
FR 6551, Feb. 19, 1991; 56 FR 43866, Sept. 5,
1991; 57 FR 33598, July 29, 1992; 60 FR 54587,
Oct. 25, 1995]

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§ 842.704
§ 842.704

5 CFR Ch. I (1–1–13 Edition)
Election requirements.

(a) The election of an alternative
form of annuity and evidence of spousal consent must be filed on a form prescribed by OPM within the time limit
prescribed in paragraph (b)(2) of this
section. The form will require that a
notary public or other official authorized to administer oaths certify that
the current spouse presented identification, gave consent to the specific
election as executed by the retiree,
signed or marked the form, and acknowledged that the consent was given
freely in the notary’s or official’s presence.
(b) An election of the alternative
form of annuity must be in writing and
received by OPM on or before the date
of final adjudication. After the date of
final adjudication, an election of the
alternative form of annuity is irrevocable.
(c) Except as provided in paragraph
(d), an annuitant who dies before the
time limit prescribed in paragraph
(b)(2) of this section is deemed to have
made an affirmative election under
§ 842.703(a) with a reduced annuity to
provide a current spouse annuity, regardless of any election completed
under § 842.606, and the lump-sum credit
will be paid in accordance with the
order of precedence described in section 8424 of title 5, United States Code.
(d) If an annuitant described in paragraph (c) has completed an election
under § 842.604 (a) or (b)—
(1) The lump-sum credit will be paid
in accordance with the order of precedence described in section 8424 of title
5, United States Code; and
(2) The election under § 842.604 (a) or
(b) will be honored.
[53 FR 11635, Apr. 8, 1988, as amended at 56
FR 6552, Feb. 19, 1991; 60 FR 54587, Oct. 25,
1995]

survivor benefits) and reduced under
§ 842.706.
(b) A retired employee or Member
who elected an alternative form of annuity is subject to all provisions of
subchapters II and IV of chapter 84 of
title 5, United States Code, as would
otherwise apply to a retired employee
or Member who did not elect an alternative form of annuity. An individual
who has elected an alternative form of
annuity is not eligible to apply for disability annuity under subchapter V of
such chapter.
[52 FR 2067, Jan. 16, 1987, as amended at 53
FR 11635, Apr. 8, 1988]

§ 842.706 Computation
form of annuity.

of

alternative

(a) To compute the beginning rate of
annuity payable to a retiree who elects
an alternative form of annuity, OPM
will first compute the monthly rate of
annuity (and annuity supplement, if
any), otherwise payable under subchapter II of chapter 84 of title 5,
United States Code, including all reductions provided under the subchapter
other than those in section 8420a of
that title. That monthly rate is then
reduced by an amount equal to the retiree’s lump-sum credit, excluding interest, divided by the applicable
present value factor for the retiree’s
attained age (in full years) at the time
of retirement. The reduced monthly
rate is then rounded to the next lowest
dollar and becomes the rate of annuity
payable.
(b) OPM will publish a notice in the
FEDERAL REGISTER announcing any
proposed adjustments in present value
factors at least 30 days before the effective date of the adjustments.

§ 842.705 Alternative forms of annuities available.

§ 842.707 Partial deferred payment of
the lump-sum credit if annuity commences after January 3, 1988, and
before October 1, 1989.

(a) An employee or Member who is eligible to make an election under
§ 842.703 may elect to receive his or her
lump-sum credit, excluding interest,
plus an annuity computed in accordance with sections 8415 and 8421 of title
5, United States Code, for which they
qualify (including any reduction for

(a) Except as provided in paragraph
(c) of this section, if the annuity of an
employee or Member commences after
January 3, 1988, and before October 1,
1989, the lump-sum credit payable
under § 842.705 is payable to the individual, or his or her survivors, according to the following schedule:

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Office of Personnel Management

§ 842.708

(1) Sixty percent of the lump-sum
credit is payable at the time of retirement, and
(2) Forty percent is payable, with interest
determined
under
section
8334(e)(3) of title 5, United States Code,
one year after the time of retirement.
(b) If an employee or Member whose
annuity commences after January 3,
1988, and before October 1, 1989, dies before the time limit prescribed in
§ 842.704(b)(2), that individual is subject
to § 842.704 (c) or (d), but the lump-sum
credit will be paid in accordance with
the schedule in paragraph (a) of this
section.
(c) An annuitant is exempt from the
deferred payment schedule under paragraph (a) of this section if the individual—
(1) Separates involuntarily, other
than for cause on charges of delinquency or misconduct, or
(2) Has, at the time of retirement, a
life-threatening affliction or other critical medical condition.
(3)(i) For the purpose of this section,
life-threatening affliction or other critical
medical condition means a medical condition so severe as to reasonably limit
an individual’s probable life expectancy to less than 2 years.
(ii) The existence of one of the following medical conditions is prima facie
evidence of a life-threatening affliction
or other critical medical condition:
(A) Metastatic and/or inoperable neoplasms.
(B) Aortic stenosis (severe).
(C) Class IV cardiac disease with congestive heart failure.
(D) Respiratory failure.
(E) Cor pulmonale with respiratory
failure.
(F) Emphysema with respiratory failure.
(G) [Reserved]
(H) Severe cardiomyopathy—Class
IV.
(I) Aplastic anemia.
(J) Uncontrolled hypertension with
hypertensive encephalopathy.
(K) Cardiac aneurysm not amenable
to surgical treatment.
(L) Agranulocytosis.
(M) Severe hepatic failure.
(N) Severe hypoxic brain damage.
(O) Severe portal hypertension with
esophageal varices.

(P) AIDS (Active—Not AIDS Related
Complex or only seropositivity).
(Q) Life-threatening infections (encephalitis, meningitis, rabies, etc.).
(R) Scleroderma with severe esophageal involvement.
(S) Amyotrophic lateral sclerosis
(rapidly progressive).
(T) Hemiplegia with life threatening
complications.
(U) Quadriplegia with life threatening complications.
(iii) Evidence of the existence of a
life-threatening affliction or other critical medical condition must be certified by a physician and sent to OPM
on or before the date the annuitant
elects to receive an alternative form of
annuity. For the purpose of this section, ‘‘physician’’ has the same meaning given that term in § 339.102 of this
chapter.
(iv) If a medical condition other than
those listed in paragraph (c)(3)(ii) of
this section is claimed as a basis for exemption from the deferred payment
schedule, OPM will review the physician’s
certification
to
determine
whether the cited condition is lifethreatening or critical.
(v) The cost of providing medical documentation under this paragraph rests
with the employee or Member, unless
OPM exercises its choice of physician.
[53 FR 11635, Apr. 8, 1988, as amended at 60
FR 54587, Oct. 25, 1995]

§ 842.708 Partial deferred payment of
the lump-sum credit if annuity commences after December 2, 1989, and
before October 1, 1995.
(a) Except as provided in paragraph
(c) of this section, if the annuity of a
retiree commences after December 2,
1989, and before October 1, 1994, the
lump-sum credit payable under § 842.705
is payable to the individual, or his or
her survivors, according to the following schedule:
(1) Fifty percent of the lump-sum
credit is payable at the time of retirement, and
(2) Fifty percent is payable, with interest
determined
under
section
8334(e)(3) of title 5, United States Code,
one year after the time of retirement,
except if the payment date of the
amount specified in paragraph (a)(1) of
this section was after December 4, 1989,

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§ 842.801

5 CFR Ch. I (1–1–13 Edition)

payment with interest will be made in
the calendar year following the calendar year in which the payment specified in paragraph (a)(1) of this section
was made.
(b) If a retiree whose annuity commences after December 2, 1989, and before October 1, 1994, dies before the
time limit prescribed in § 842.704(b)(2),
that individual is subject to § 842.704 (c)
or (d), but the lump-sum credit will be
paid in accordance with the schedule in
paragraph (a) of this section.
(c)(1) A retiree is exempt from the deferred payment schedule under paragraph (a) of this section if the individual meets the conditions, and fulfills the requirements, described in
§ 842.707(c).
(2)(i) A retiree who is exempt from
the deferred payment schedule may
waive that exemption by notifying
OPM, in writing, on or before the date
he or she elects to receive the alternative form of annuity.
(ii) Paragraph (c)(2)(i) of this section
does not apply to an individual whose
annuity commences after December 1,
1990, if that individual’s eligibility to
elect an alternative form of annuity is
pursuant to § 842.703(d)(1)(i)(A).
(iii) A waiver under paragraph
(c)(2)(i) of this section cannot be revoked.
[56 FR 6552, Feb. 19, 1991, as amended at 60
FR 54587, Oct. 25, 1995]

Subpart H—Law Enforcement Officers, Firefighters, and Air Traffic Controllers
SOURCE: 52 FR 2069, Jan. 16, 1987, unless
otherwise noted.

§ 842.801 Applicability and purpose.
(a) This subpart contains regulations
of the Office of Personnel Management
(OPM) to supplement—
(1) 5 U.S.C. 8412(d) and (e), which establish special retirement eligibility
for law enforcement officers, members
of the Capitol Police and Supreme
Court Police, firefighters, nuclear materials couriers, customs and border
protection officers, and air traffic controllers employed under the Federal
Employees
Retirement
System
(FERS);

(2) 5 U.S.C. 8422(a), pertaining to deductions;
(3) 5 U.S.C. 8423(a), pertaining to Government contributions; and
(4) 5 U.S.C. 8425, pertaining to mandatory retirement.
(b) The regulations in this subpart
are issued pursuant to the authority
given to OPM in 5 U.S.C. 8461(g) to prescribe regulations to carry out the provisions of 5 U.S.C. chapter 84, in 5
U.S.C. 1104 to delegate authority for
personnel management to the heads of
agencies and pursuant to the authority
given the Director of OPM in section
535(d) of the Department of Homeland
Security Appropriations Act, 2008, Public Law 110–161, 121 Stat. 2042.
[76 FR 42000, July 18, 2011]

§ 842.802 Definitions.
In this subpart—
Agency head means, for the executive
branch agencies, the head of an executive agency as defined in 5 U.S.C. 105;
for the legislative branch, the Secretary of State, the Clerk of the House
of Representatives, or the head of any
other legislative branch agency; for the
judicial branch, the Director of the Administrative Office of the U.S. Courts;
for the Postal Service, the Postmaster
General; and for any other independent
establishment that is an entity of the
Federal Government, the head of the
establishment. For the purpose of an
approval of coverage under this subpart, agency head is also deemed to include the designated representative of
the head of an executive department as
defined in 5 U.S.C. 101, except that, for
provisions dealing with law enforcement officers and firefighters, the designated representative must be a department headquarters-level official
who reports directly to the executive
department head, or to the deputy department head, and who is the sole
such representative for the entire department. For the purpose of a denial
coverage under this subpart, agency
head is also deemed to include the designated representative of the agency
head, as defined in the first sentence of
this definition, at any level within the
agency.
Air traffic controller means a civilian
employee of the Department of Transportation or the Department of Defense

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