Citations

P age 861

T IT L E 5— G O V E R N M E N T O R G A N IZ A T IO N A N D E M P L O Y E E S

stances justifying the exercise of authority, and, unless previously subm itted, a description of the policies and procedures governing each type of authority
exercised; and
‘‘(B ) shall be subm itted not later than 30 days after
the end of the calendar year to w hich it relates.’’
C O M M IS S IO N O N T H E O P E R A T IO N O F T H E S E N A T E
P ub. L . 94–252, M ar. 30, 1976, 90 S tat. 294, provided
that: ‘‘O n and after the date of the enactm ent of the
joint resolution [M ar. 30, 1976], the provisions of section
8344 of title 5, U nited S tates C ode, shall not apply to
any individual serving as a m em ber of the C om m ission
on the O peration of the S enate.’’

§8345. P aym ent of benefits; com m encem ent, term ination,and w aiver of annuity
(a) E ach annuity is stated as an annual
am ount, one-tw elfth of w hich, rounded to the
next low est dollar, constitutes the m onthly rate
payable on the first business day of the m onth
after the m onth or other period for w hich it has
accrued.
(b)(1) E xcept as otherw ise provided—
(A ) an annuity of an em ployee or M em ber
com m ences on the first day of the m onth
after—
(i) separation from the service; or
(ii) pay ceases and the service and age requirem ents for title to annuity are m et; and
(B ) any other annuity payable from the
F und com m ences on the first day of the m onth
after the occurrence of the event on w hich
paym ent thereof is based.
(2) T he annuity of—
(A ) an em ployee involuntarily separated
from service, except by rem oval for cause on
charges of m isconduct or delinquency; and
(B ) an em ployee or M em ber retiring under
section 8337 of this title due to a disability;
shall com m ence on the day after separation
from the service or the day after pay ceases and
the service and age or disability requirem ents
for title to annuity are m et.
(c) T he annuity of a retired em ployee or M em ber term inates on the day death or other term inating event provided by this subchapter occurs.
T he annuity of a survivor term inates on the last
day of the m onth before death or other term inating event occurs.
(d) A n individual entitled to annuity from the
F und m ay decline to accept all or any part of
the annuity by a w aiver signed and filed w ith
the O ffice of P ersonnel M anagem ent. T he w aiver
m ay be revok ed in w riting at any tim e. P aym ent of the annuity w aived m ay not be m ade for
the period during w hich the w aiver w as in effect.
(e) P aym ent due a m inor, or an individual
m entally incom petent or under other legal disability, m ay be m ade to the person w ho is constituted guardian or other fiduciary by the law
of the S tate of residence of the claim ant or is
otherw ise legally vested w ith the care of the
claim ant or his estate. If a guardian or other fiduciary of the individual under legal disability
has not been appointed under the law of the
S tate of residence of the claim ant, paym ent
m ay be m ade to any person w ho, in the judgm ent of the O ffice, is responsible for the care of
the claim ant, and the paym ent bars recovery by
any other person.

§8345

[(f) R epealed. P ub. L . 99–251, title III, §305(a),
F eb. 27, 1986, 100 S tat. 26.]
(g) T he O ffice shall prescribe regulations to
provide that the am ount of any m onthly annuity payable under this section accruing for any
m onth and w hich is com puted w ith regard to
service that includes any service referred to in
section 8332(b)(6) perform ed by an individual
prior to January 1, 1969, shall be reduced by the
portion of any benefits under any S tate retirem ent system to w hich such individual is entitled (or on proper application w ould be entitled)
for such m onth w hich is attributable to such
service perform ed by such individual before such
date.
(h) A n individual entitled to an annuity from
the F und m ay m ak e allotm ents or assignm ents
of am ounts from his annuity for such purposes
as the O ffice of P ersonnel M anagem ent in its
sole discretion considers appropriate.
(i)(1) N o paym ent shall be m ade from the F und
unless an application for benefits based on the
service of an em ployee or M em ber is received in
the O ffice of P ersonnel M anagem ent before the
one hundred and fifteenth anniversary of his
birth.
(2) N otw ithstanding paragraph (1) of this subsection, after the death of an em ployee, M em ber, or annuitant, no benefit based on his service
shall be paid from the F und unless an application therefor is received in the O ffice of P ersonnel M anagem ent w ithin 30 years after the death
or other event w hich gives rise to title to the
benefit.
(j)(1) P aym ents under this subchapter w hich
w ould otherw ise be m ade to an em ployee, M em ber, or annuitant based on service of that individual shall be paid (in w hole or in part) by the
O ffice to another person if and to the extent expressly provided for in the term s of—
(A ) any court decree of divorce, annulm ent,
or legal separation, or the term s of any court
order or court-approved property settlem ent
agreem ent incident to any court decree of divorce, annulm ent, or legal separation; or
(B ) any court order or other sim ilar process
in the nature of garnishm ent for the enforcem ent of a judgm ent rendered against such em ployee, M em ber, or annuitant, for physically,
sexually, or em otionally abusing a child.
In the event that the O ffice is served w ith m ore
than 1 decree, order, or other legal process w ith
respect to the sam e m oneys due or payable to
any individual, such m oneys shall be available
to satisfy such processes on a first-com e, firstserved basis, w ith any such process being satisfied out of such m oneys as rem ain after the
satisfaction of all such processes w hich have
been previously served.
(2) P aragraph (1) shall only apply to paym ents
m ade by the O ffice under this subchapter after
the date of receipt in the O ffice of w ritten notice
of such decree, order, other legal process, or
agreem ent, and such additional inform ation and
docum entation as the O ffice m ay prescribe.
(3) F or the purpose of this subsection—
(A ) the term ‘‘court’’ m eans any court of any
S tate, the D istrict of C olum bia, the C om m onw ealth of P uerto R ico, G uam , the N orthern
M ariana Islands, or the V irgin Islands, and
any Indian court;

§8345

T IT L E 5— G O V E R N M E N T O R G A N IZ A T IO N A N D E M P L O Y E E S

(B ) the term ‘‘judgm ent rendered for physically, sexually, or em otionally abusing a
child’’ m eans any legal claim
perfected
through a final enforceable judgm ent, w hich
claim is based in w hole or in part upon the
physical, sexual, or em otional abuse of a child,
w hether or not that abuse is accom panied by
other actionable w rongdoing, such as sexual
exploitation or gross negligence; and
(C ) the term ‘‘child’’ m eans an individual
under 18 years of age.
(k )(1) T he O ffice shall, in accordance w ith this
subsection, enter into an agreem ent w ith any
S tate w ithin 120 days of a request for agreem ent
from the proper S tate official. T he agreem ent
shall provide that the O ffice shall w ithhold
S tate incom e tax in the case of the m onthly annuity of any annuitant w ho voluntarily requests, in w riting, such w ithholding. T he
am ounts w ithheld during any calendar quarter
shall be held in the F und and disbursed to the
S tates during the m onth follow ing that calendar
quarter.
(2) A n annuitant m ay have in effect at any
tim e only one request for w ithholding under this
subsection, and an annuitant m ay not have
m ore than tw o such requests in effect during
any one calendar year.
(3) S ubject to paragraph (2) of this subsection,
an annuitant m ay change the S tate designated
by that annuitant for purposes of having w ithholdings m ade, and m ay request that the w ithholdings be rem itted in accordance w ith such
change. A n annuitant also m ay revok e any request of that annuitant for w ithholding. A ny
change in the S tate designated or revocation is
effective on the first day of the m onth after the
m onth in w hich the request or the revocation is
processed by the O ffice, but in no event later
than on the first day of the second m onth beginning after the day on w hich such request or revocation is received by the O ffice.
(4) T his subsection does not give the consent
of the U nited S tates to the application of a statute w hich im poses m ore burdensom e requirem ents on the U nited S tates than on em ployers
generally, or w hich subjects the U nited S tates
or any annuitant to a penalty or liability because of this subsection. T he O ffice m ay not accept pay from a S tate for services perform ed in
w ithholding S tate incom e taxes from annuities.
A ny am ount erroneously w ithheld from an annuity and paid to a S tate by the O ffice shall be
repaid by the S tate in accordance w ith regulations issued by the O ffice.
(5) F or the purpose of this subsection, ‘‘S tate’’
m eans a S tate, the D istrict of C olum bia, or any
territory or possession of the U nited S tates.
(l) T ransfers of contributions and deposits authorized by section 408(a)(3) of the F oreign S ervice A ct of 1980 shall be deem ed to be a com plete
and final paym ent of benefits under this chapter.
(P ub. L . 89–544, S ept. 6, 1966, 80 S tat. 582; P ub. L .
93–273, §1, A pr. 26, 1974, 88 S tat. 93; P ub. L . 94–126,
§1(c), N ov. 12, 1975, 89 S tat. 679; P ub. L . 94–166,
§1, D ec. 23, 1975, 89 S tat. 1002; P ub. L . 94–183, §1,
D ec. 31, 1975, 89 S tat. 1057; P ub. L . 95–366, §1(a),
S ept. 15, 1978, 92 S tat. 600; P ub. L . 95–454, title
IX , §906(a)(2), (3), O ct. 13, 1978, 92 S tat. 1224; P ub.

P age 862

L . 97–35, title X V II, §1705(a), A ug. 13, 1981, 95
S tat. 758; P ub. L . 97–253, title III, §§304(b), 305(a),
S ept. 8, 1982, 96 S tat. 795; P ub. L . 98–615, §2(6),
N ov. 8, 1984, 98 S tat. 3202; P ub. L . 99–251, title III,
§305(a), F eb. 27, 1986, 100 S tat. 26; P ub. L . 101–246,
title I, §141(b), F eb. 16, 1990, 104 S tat. 35; P ub. L .
103–358, §2(a), O ct. 14, 1994, 108 S tat. 3420.)
H IS T O R IC A L A N D R E V IS IO N N O T E S
D erivation

R evised Statutes and
Statutes at L arge

U .S. C ode

.................. 5 U .S .C . 2264.

July 31, 1956, ch. 804, §401
‘‘S ec. 14’’, 70 S tat. 757.
S ept. 6, 1960, P ub. L . 86–713,
§1(b), 74 S tat. 814.

In subsection (b), the second sentence of form er section 2264(b) is om itted as included in the second sentence of the revised subsection. T he w ords ‘‘after S eptem ber 5, 1960’’ are substituted for ‘‘on or after S eptem ber 6, 1960’’.
In subsection (c), the first sentence of form er section
2264(c) is om itted as covered by the rem ainder of the
subsection. T he w ords ‘‘on or after S eptem ber 6, 1960’’
are om itted as obsolete.
S tandard changes are m ade to conform w ith the definitions applicable and the style of this title as outlined
in the preface to the report.
R E F E R E N C E S IN T E X T
S ection 408(a)(3) of the F oreign S ervice A ct of 1980,
referred to in subsec. (l), is classified to section
3968(a)(3) of T itle 22, F oreign R elations and Intercourse.
A M ENDM ENTS
1994— S ubsec. (j)(1). P ub. L . 103–358, §2(a)(1), am ended
par. (1) generally. P rior to am endm ent, par. (1) read as
follow s: ‘‘P aym ents under this subchapter w hich w ould
otherw ise be m ade to an em ployee, M em ber, or annuitant based upon his service shall be paid (in w hole or
in part) by the O ffice to another person if and to the extent expressly provided for in the term s of any court
decree of divorce, annulm ent, or legal separation, or
the term s of any court order or court-approved property settlem ent agreem ent incident to any court decree
of divorce, annulm ent, or legal separation. A ny paym ent under this paragraph to a person bars recovery by
any other person.’’
S ubsec. (j)(2). P ub. L . 103–358, §2(a)(2), inserted ‘‘other
legal process,’’ after ‘‘order,’’.
S ubsec. (j)(3). P ub. L . 103–358, §2(a)(3), am ended par.
(3) generally. P rior to am endm ent, par. (3) read as follow s: ‘‘A s used in this subsection, ‘court’ m eans any
court of any S tate, the D istrict of C olum bia, the C om m onw ealth of P uerto R ico, G uam , the N orthern M ariana Islands, or the V irgin Islands, and any Indian
court.’’
1990— S ubsec. (l). P ub. L . 101–246 added subsec. (l).
1986— S ubsec. (f). P ub. L . 99–251 struck out subsec. (f)
w hich provided m inim um m onthly rates of annuity
payable under subsec. (a) w ith certain exceptions.
1984— S ubsec. (f)(4). P ub. L . 98–615, §2(6)(A ), added par.
(4).
S ubsec. (j)(3). P ub. L . 98–615, §2(6)(B ), inserted reference to the C om m onw ealth of P uerto R ico, G uam ,
the N orthern M ariana Islands, the V irgin Islands, and
any Indian court.
1982— S ubsec. (a). P ub. L . 97–253, §304(b), substituted
‘‘rounded to the next low est’’ for ‘‘fixed at the nearest’’.
S ubsec. (b). P ub. L . 97–253, §305(a), substituted provisions that an annuity of an em ployee or M em ber com m ences on the first day of the m onth after separation
from service or pay ceases and the service and age requirem ents for title to annuity are m et, that any other
annuity payable from the F und com m ences on the first
day of the m onth after the occurrence of the event on
w hich the paym ent thereof is based, and that the annu-

P age 863

T IT L E 5— G O V E R N M E N T O R G A N IZ A T IO N A N D E M P L O Y E E S

ity of an em ployee involuntarily separated from service
or of an em ployee or M em ber retiring due to a disability shall com m ence on the day after separation from
the service or the day after pay ceases and the service
and age or disability requirem ents for title to annuity
are m et for provisions that the annuity of an em ployee
or M em ber w ould com m ence on the day after he w as
separated from the service, or on the day after his pay
ceased and he m et the service and the age or disability
requirem ents for title to annuity and that an annuity
payable from the F und allow ed after S eptem ber 5, 1960,
w ould com m ence on the day after the occurrence of the
event on w hich paym ent thereof w as based.
1981— S ubsec. (k ). P ub. L . 97–35 added subsec. (k ).
1978— S ubsecs. (d), (e). P ub. L . 95–454, §906(a)(2), (3),
substituted ‘‘O ffice of P ersonnel M anagem ent’’ for
‘‘C ivil S ervice C om m ission’’ and ‘‘O ffice’’ for ‘‘C om m ission’’.
S ubsec. (g). P ub. L . 95–454, §906(a)(3), substituted ‘‘O ffice’’ for ‘‘C om m ission’’ in the subsec. (g) added by P ub.
L . 94–126.
P ub. L . 95–366 redesignated as subsec. (h) the subsec.
(g) added by P ub. L . 94–166.
S ubsec. (h). P ub. L . 95–454, §906(a)(2), substituted ‘‘O ffice of P ersonnel M anagem ent’’ for ‘‘C ivil S ervice C om m ission’’.
P ub. L . 95–366 redesignated form er subsec. (g), added
by P ub. L . 94–166, as (h). F orm er subsec. (h) redesignated (i).
S ubsec. (i). P ub. L . 95–454, §906(a)(2), substituted ‘‘O ffice of P ersonnel M anagem ent’’ for ‘‘C ivil S ervice C om m ission’’ w herever appearing.
P ub. L . 95–366 redesignated form er subsec. (h) as (i).
S ubsec. (j). P ub. L . 95–454, §906(a)(3), substituted ‘‘O ffice’’ for ‘‘C om m ission’’ w herever appearing.
P ub. L . 95–366 added subsec. (j).
1975— S ubsec. (g). P ub. L . 94–166 added subsec. (g) authorizing allotm ent or assignm ent of am ounts from annuities.
P ub. L . 94–126 added subsec. (g) relating to the crediting of N ational G uard technician service in connection
w ith civil service retirem ent.
S ubsec. (h). P ub. L . 94–183 added subsec. (h).
1974— S ubsec. (f). P ub. L . 93–273 added subsec. (f).
E F F E C T IV E D A T E O F 1994 A M E N D M E N T
S ection 3 of P ub. L . 103–358 provided that: ‘‘T he
am endm ents m ade by this A ct [am ending this section
and sections 8437 and 8467 of this title] shall tak e effect
on the date of enactm ent of this A ct [O ct. 14, 1994], and
shall apply w ith respect to any decree, order, or other
legal process, or notice of agreem ent received by the
O ffice of P ersonnel M anagem ent or the E xecutive D irector of the F ederal R etirem ent T hrift Investm ent
B oard on or after such date of enactm ent.’’
E F F E C T IV E D A T E O F 1984 A M E N D M E N T
A m endm ent by P ub. L . 98–615 effective M ay 7, 1985,
w ith enum erated exceptions and specific applicability
provisions, see section 4(a)(1), (5)(D ) of P ub. L . 98–615, as
am ended, set out as a note under section 8341 of this
title.
E F F E C T IV E D A T E O F 1982 A M E N D M E N T
A m endm ent by section 304(b) of P ub. L . 97–253 applicable w ith respect to any annuity com m encing on or
after O ct. 1, 1982, and w ith respect to any adjustm ent or
redeterm ination of any annuity m ade on or after such
date, see section 304(c) of P ub. L . 97–253, set out as a
note under section 8340 of this title.
S ection 305(b) of P ub. L . 97–253, as am ended by P ub.
L . 97–377, title I, §124, D ec. 21, 1982, 96 S tat. 1913, provided that: ‘‘T he am endm ent m ade by subsection (a)
[am ending this section] shall apply to annuities w hich
com m ence on or after O ctober 1, 1982, except for those
individuals w ho serve three days or less in the m onth
of retirem ent.’’
E F F E C T IV E D A T E O F 1981 A M E N D M E N T
S ection 1705(b) of P ub. L . 97–35 provided that: ‘‘T he
am endm ent m ade by subsection (a) [am ending this section] shall tak e effect O ctober 1, 1981.’’

§8345

E F F E C T IV E D A T E O F 1978 A M E N D M E N T S
A m endm ent by P ub. L . 95–454 effective 90 days after
O ct. 13, 1978, see section 907 of P ub. L . 95–454, set out as
a note under section 1101 of this title.
S ection 2 of P ub. L . 95–366 provided that: ‘‘T he
am endm ents m ade by the first section of this A ct
[am ending this section and section 8346 of this title]
shall only apply to paym ents m ade from the C ivil S ervice R etirem ent and D isability F und after the date of
the enactm ent of this A ct [S ept. 15, 1978].’’
E F F E C T IV E D A T E O F 1975 A M E N D M E N T
A m endm ent by P ub. L . 94–126 effective as of Jan. 1,
1969, applicable to a person w ho, on N ov. 12, 1975, is receiving or is entitled to receive benefits under any F ederal retirem ent system and requests in w riting the application of the am endm ent to him by the office adm inistering his retirem ent system , and additional benefits
to com m ence D ec. 1, 1975, see section 3 of P ub. L . 94–126,
set out as a note under section 8334 of this title.
E F F E C T IV E D A T E O F 1974 A M E N D M E N T
S ection 3 of P ub. L . 93–273 provided that: ‘‘T his A ct
[am ending this section and enacting provisions set out
as notes under this section and sections 8339 and 8341 of
this title] shall becom e effective on the date of enactm ent [A pr. 26, 1974]. A nnuity increases under this A ct
shall apply to annuities w hich com m ence before, on, or
after the date of enactm ent of this A ct, but no increase
in annuity shall be paid for any period prior to the first
day of the first m onth w hich begins on or after the
ninetieth day after the date of enactm ent of this A ct,
or the date on w hich the annuity com m ences, w hichever is later.’’
M IN IM U M A N N U IT Y U N D E R C IV IL S E R V IC E R E T IR E M E N T
A N D D IS A B IL IT Y S Y S T E M
S ection 305(b)–(d) of P ub. L . 99–251 provided that:
‘‘(b) S A V IN G S P R O V IS IO N .— A n annuity payable from
the C ivil S ervice R etirem ent and D isability F und as of
the day before the date of enactm ent of this A ct [F eb.
27, 1986] shall not be reduced—
‘‘(1) by reason of the repeal of section 8345(f) of title
5, U nited S tates C ode; or
‘‘(2) if or to the extent that the reduction is to be
m ade for the purpose of elim inating an overpaym ent
resulting from the m anner in w hich such section
8345(f) has been adm inistered by the O ffice of P ersonnel M anagem ent.
‘‘(c) R A T IF IC A T IO N O F E R R O N E O U S P A Y M E N T S .— A ny individual to w hom an overpaym ent of an annuity has
been m ade from the C ivil S ervice R etirem ent and D isability F und before the date of enactm ent of this A ct
[F eb. 27, 1986] shall be deem ed to have been entitled to
that overpaym ent if and to the extent that such overpaym ent resulted from the m anner in w hich the O ffice
of P ersonnel M anagem ent has adm inistered section
8345(f) of title 5, U nited S tates C ode.
‘‘(d) A D JU S T M E N T S O F C E R T A IN R E D U C T IO N S .— (1) E ffective for any m onth after the date of enactm ent of this
A ct [F eb. 27, 1986], the am ount of any annuity w hich—
‘‘(A ) is payable from the C ivil S ervice R etirem ent
and D isability F und; and
‘‘(B ) w as reduced after June 30, 1985, and before the
date of enactm ent of this A ct, to elim inate any overpaym ent resulting from the m anner in w hich the O ffice of P ersonnel M anagem ent adm inistered section
8345(f) of title 5, U nited S tates C ode,
shall not be less than the am ount w hich w ould have
been payable as of such date of enactm ent if the reduction described in clause (B ) had not been m ade.
‘‘(2)(A ) T he O ffice shall m ak e a lum p-sum paym ent to
each individual receiving an annuity to w hich paragraph (1) applies.
‘‘(B ) T he lum p-sum paym ent m ade to any individual
under this paragraph shall be equal to the excess of—
‘‘(i) the total am ount of the annuity paym ents
w hich w ould have been m ade to the individual for the
period beginning w ith the first m onth in w hich the

§8346

T IT L E 5— G O V E R N M E N T O R G A N IZ A T IO N A N D E M P L O Y E E S

reduction described in paragraph (1)(B ) w as m ade and
ending on the last day of the m onth in w hich this A ct
is enacted if the reduction had not been m ade, over
‘‘(ii) the total am ount of the annuity paym ents
w hich have been paid to such individual for that period.’’
A V A IL A B IL IT Y O F T H E C IV IL S E R V IC E R E T IR E M E N T A N D
D IS A B IL IT Y F U N D F O R E X P E N S E S IN C U R R E D B Y T H E
O F F IC E O F P E R S O N N E L M A N A G E M E N T
S ection 1705(c) of P ub. L . 97–35 provided that: ‘‘T he
C ivil S ervice R etirem ent and D isability F und is available for expenses incurred by the O ffice of P ersonnel
M anagem ent in the initial im plem entation of the
am endm ents m ade by this section [am ending this section].’’

P age 864

S ubsec. (b). P ub. L . 95–454 substituted ‘‘O ffice of P ersonnel M anagem ent’’ and ‘‘O ffice’’ for ‘‘C ivil S ervice
C om m ission’’ and ‘‘C om m ission’’, respectively.
1975— S ubsec. (a). P ub. L . 94–166 inserted ‘‘except
under the provisions of section 8345(g) of this title,’’
after ‘‘equity’’, and ‘‘, except as otherw ise m ay be provided by F ederal law s’’ after ‘‘process’’.
E F F E C T IV E D A T E O F 1978 A M E N D M E N T S
A m endm ent by P ub. L . 95–454 effective 90 days after
O ct. 13, 1978, see section 907 of P ub. L . 95–454, set out as
a note under section 1101 of this title.
A m endm ent by P ub. L . 95–366 applicable to paym ents
m ade from C ivil S ervice R etirem ent and D isability
F und after S ept. 15, 1978, see section 2 of P ub. L . 95–366,
set out as a note under section 8345 of this title.

M O N T H L Y R A T E O F M IN IM U M A N N U IT Y
S ection 2(c) of P ub. L . 93–273 provided that: ‘‘T he
m onthly rate of an annuity resulting from an increase
under this section [enacting provisions set out as notes
under sections 8339 and 8341 of this title] shall be considered as the m onthly rate of annuity payable under
section 8345(a) of title 5, U nited S tates C ode [subsec. (a)
of this section], for purposes of com puting the m inim um annuity under section 8345(f) of title 5 [subsec. (f)
of this section], as added by the first section of this
A ct.’’

§8346. E xem ption from legal process; recovery of
paym ents
(a) T he m oney m entioned by this subchapter
is not assignable, either in law or equity, except
under the provisions of subsections (h) and (j) of
section 8345 of this title, or subject to execution,
levy, attachm ent, garnishm ent, or other legal
process, except as otherw ise m ay be provided by
F ederal law s.
(b) R ecovery of paym ents under this subchapter m ay not be m ade from an individual
w hen, in the judgm ent of the O ffice of P ersonnel
M anagem ent, the individual is w ithout fault and
recovery w ould be against equity and good conscience. W ithholding or recovery of m oney m entioned by this subchapter on account of a certification or paym ent m ade by a form er em ployee of the U nited S tates in the discharge of
his official duties m ay be m ade only if the head
of the agency on behalf of w hich the certification or paym ent w as m ade certifies to the O ffice that the certification or paym ent involved
fraud on the part of the form er em ployee.
(P ub. L . 89–554, S ept. 6, 1966, 80 S tat. 583; P ub. L .
94–166, §2, D ec. 23, 1975, 89 S tat. 1002; P ub. L .
95–366, §1(b), S ept. 15, 1978, 92 S tat. 600; P ub. L .
95–454, title IX , §906(a)(2), (3), O ct. 13, 1978, 92
S tat. 1224.)
H IS T O R IC A L A N D R E V IS IO N N O T E S
D erivation

R evised Statutes and
Statutes at L arge

U .S. C ode

.................. 5 U .S .C . 2265.

July 31, 1956, ch. 804, §401
‘‘S ec. 15’’, 70 S tat. 758.

In subsection (b), the w ords ‘‘N otw ithstanding any
other provision of law ’’ are om itted as unnecessary.
T he second w ord of the second sentence ‘‘or’’ is substituted for ‘‘of’’ to correct a printing error.
S tandard changes are m ade to conform w ith the definitions applicable and the style of this title as outlined
in the preface to the report.
A M EN D M EN TS
1978— S ubsec. (a). P ub. L . 95–366 substituted references to subsecs. (h) and (j) of section 8345 for reference to subsec. (g) of section 8345.

§8347.A dm inistration;regulations
(a) T he O ffice of P ersonnel M anagem ent shall
adm inister this subchapter. E xcept as otherw ise
specifically provided herein, the O ffice shall perform , or cause to be perform ed, such acts and
prescribe such regulations as are necessary and
proper to carry out this subchapter.
(b) A pplications under this subchapter shall be
in such form as the O ffice prescribes. A gencies
shall support the applications by such certificates as the O ffice considers necessary to the determ ination of the rights of applicants. T he O ffice shall adjudicate all claim s under this subchapter.
(c) T he O ffice shall determ ine questions of disability and dependency arising under this subchapter. E xcept to the extent provided under
subsection (d) of this section, the decisions of
the O ffice concerning these m atters are final
and conclusive and are not subject to review .
T he O ffice m ay direct at any tim e such m edical
or other exam inations as it considers necessary
to determ ine the facts concerning disability or
dependency of an individual receiving or applying for annuity under this subchapter. T he O ffice m ay suspend or deny annuity for failure to
subm it to exam ination.
(d)(1) S ubject to paragraph (2) of this subsection, an adm inistrative action or order affecting the rights or interests of an individual or
of the U nited S tates under this subchapter m ay
be appealed to the M erit S ystem s P rotection
B oard under procedures prescribed by the B oard.
(2) In the case of any individual found by the
O ffice to be disabled in w hole or in part on the
basis of the individual’s m ental condition, and
that finding w as m ade pursuant to an application by an agency for purposes of disability retirem ent under section 8337(a) of this title, the
procedures under section 7701 of this title shall
apply and the decision of the B oard shall be subject to judicial review under section 7703 of this
title.
(e) T he O ffice shall fix the fees for exam inations m ade under this subchapter by physicians
or surgeons w ho are not m edical officers of the
U nited S tates. T he fees and reasonable traveling
and other expenses incurred in connection w ith
the exam inations are paid from appropriations
for the cost of adm inistering this subchapter.
(f) T he O ffice shall select three actuaries, to
be k now n as the B oard of A ctuaries of the C ivil
S ervice R etirem ent S ystem . T he O ffice shall fix
the pay of the m em bers of the B oard, except
m em bers otherw ise in the em ploy of the U nited

P age 865

T IT L E 5— G O V E R N M E N T O R G A N IZ A T IO N A N D E M P L O Y E E S

S tates. T he B oard shall report annually on the
actuarial status of the S ystem and furnish its
advice and opinion on m atters referred to it by
the O ffice. T he B oard m ay recom m end to the O ffice and to C ongress such changes as in the
B oard’s judgm ent are necessary to protect the
public interest and m aintain the S ystem on a
sound financial basis. T he O ffice shall k eep, or
cause to be k ept, such records as it considers
necessary for m ak ing periodic actuarial valuations of the S ystem . T he B oard shall m ak e actuarial valuations every 5 years, or oftener if
considered necessary by the O ffice.
(g) T he O ffice m ay exclude from the operation
of this subchapter an em ployee or group of em ployees in or under an E xecutive agency w hose
em ploym ent is tem porary or interm ittent. H ow ever, the O ffice m ay not exclude any em ployee
w ho occupies a position on a part-tim e career
em ploym ent basis (as defined in section 3401(2)
of this title).
(h) T he O ffice, on recom m endation by the
M ayor of the D istrict of C olum bia, m ay exclude
from the operation of this subchapter an individual or group of individuals em ployed by the
governm ent of the D istrict of C olum bia w hose
em ploym ent is tem porary or interm ittent.
(i) T he A rchitect of the C apitol m ay exclude
from the operation of this subchapter an em ployee under the O ffice of the A rchitect of the
C apitol w hose em ploym ent is tem porary or of
uncertain duration.
(j) T he L ibrarian of C ongress m ay exclude
from the operation of this subchapter an em ployee under the L ibrary of C ongress w hose em ploym ent is tem porary or of uncertain duration.
(k ) T he S ecretary of A griculture shall prescribe regulations to effect the application and
operation of this subchapter to an individual
nam ed by section 8331(1)(F ) of this title.
(l) T he D irector or A cting D irector of the B otanic G arden m ay exclude from the operation of
this subchapter an em ployee under the B otanic
G arden w hose em ploym ent is tem porary or of
uncertain duration.
(m ) N otw ithstanding any other provision of
law , for the purpose of ensuring the accuracy of
inform ation used in the adm inistration of this
chapter, at the request of the D irector of the O ffice of P ersonnel M anagem ent—
(1) the S ecretary of D efense or the S ecretary’s designee shall provide inform ation on
retired or retainer pay provided under title 10;
(2) the S ecretary of V eterans A ffairs shall
provide inform ation on pensions or com pensation provided under title 38;
(3) the C om m issioner of S ocial S ecurity or
the S ecretary’s 1 designee shall provide inform ation contained in the records of the S ocial
S ecurity A dm inistration; and
(4) the S ecretary of L abor or the S ecretary’s
designee shall provide inform ation on benefits
paid under subchapter I of chapter 81 of this
title.
T he D irector shall request only such inform ation as the D irector determ ines is necessary.
T he D irector, in consultation w ith the officials
from w hom inform ation is requested, shall es1S o

in original. P robably should be ‘‘C om m issioner’s’’.

§8347

tablish, by regulation and otherw ise, such safeguards as are necessary to ensure that inform ation m ade available under this subsection is
used only for the purpose authorized.
(n)(1) N otw ithstanding any other provision of
this subchapter, the D irector of C entral Intelligence shall, in a m anner consistent w ith the
adm inistration of this subchapter by the O ffice,
and to the extent considered appropriate by the
D irector of C entral Intelligence—
(A ) determ ine entitlem ent to benefits under
this subchapter based on the service of em ployees of the C entral Intelligence A gency;
(B ) m aintain records relating to the service
of such em ployees;
(C ) com pute benefits under this subchapter
based on the service of such em ployees;
(D ) collect deposits to the F und m ade by
such em ployees, their spouses, and their
form er spouses;
(E ) authorize and direct disbursem ents from
the F und to the extent based on service of
such em ployees; and
(F ) perform such other functions under this
subchapter as the D irector of C entral Intelligence, in consultation w ith the D irector of
the O ffice of P ersonnel M anagem ent, determ ines to be appropriate.
(2) T he D irector of the O ffice of P ersonnel
M anagem ent shall furnish such inform ation and,
on a reim bursable basis, such services to the D irector of C entral Intelligence as the D irector of
C entral Intelligence requests to carry out paragraph (1) of this subsection.
(3)(A ) T he D irector of C entral Intelligence, in
consultation w ith the D irector of the O ffice of
P ersonnel M anagem ent, shall by regulation prescribe appropriate procedures to carry out this
subsection.
(B ) T he regulations shall provide procedures
for the D irector of the O ffice of P ersonnel M anagem ent to inspect and audit disbursem ents
from the C ivil S ervice R etirem ent and D isability F und under this subchapter.
(C ) T he D irector of C entral Intelligence shall
subm it the regulations prescribed under subparagraph (A ) to the S elect C om m ittee on Intelligence of the S enate and the P erm anent S elect
C om m ittee on Intelligence of the H ouse of R epresentatives before the regulations tak e effect.
(4)(A ) S ection 201(c) of the C entral Intelligence
A gency R etirem ent A ct shall apply in the adm inistration of this subchapter to the extent
that the provisions of this subchapter are adm inistered under this subsection.
(B ) N otw ithstanding subparagraph (A ) of this
paragraph, section 8347(d) of this title shall
apply w ith respect to em ployees of the C entral
Intelligence A gency w ho are subject to the C ivil
S ervice R etirem ent S ystem .
(o) A ny provision of law outside of this subchapter w hich provides coverage, service credit,
or any other benefit under this subchapter to
any individuals w ho (based on their being em ployed by an entity other than the G overnm ent)
w ould not otherw ise be eligible for any such coverage, credit, or benefit, shall not apply w ith respect to any individual appointed, transferred,
or otherw ise com m encing that type of em ploym ent on or after O ctober 1, 1988.
(p) T he D irector of the A dm inistrative O ffice
of the U nited S tates C ourts m ay exclude from

§8347

T IT L E 5— G O V E R N M E N T O R G A N IZ A T IO N A N D E M P L O Y E E S

the operation of this subchapter an em ployee of
the A dm inistrative O ffice of the U nited S tates
C ourts, the F ederal Judicial C enter, or a court
nam ed by section 610 of title 28, w hose em ploym ent is tem porary or of uncertain duration.
(q)(1) U nder regulations prescribed by the O ffice of P ersonnel M anagem ent, an em ployee
w ho—
(A ) has not previously m ade an election
under this subsection or had an opportunity to
m ak e an election under this paragraph; and
(B ) m oves, w ithout a break in service of
m ore than 1 year, to em ploym ent in a nonappropriated fund instrum entality of the D epartm ent of D efense or the C oast G uard, respectively, described in section 2105(c),
shall be given the opportunity to elect irrevocably, w ithin 30 days after such m ove, to rem ain covered as an em ployee under this subchapter during any em ploym ent described in
section 2105(c) after such m ove.
(2) U nder regulations prescribed by the O ffice
of P ersonnel M anagem ent, an em ployee of a
nonappropriated fund instrum entality of the D epartm ent of D efense or the C oast G uard, described in section 2105(c), w ho—
(A ) has not previously m ade an election
under this subsection or had an opportunity to
m ak e an election under this paragraph;
(B ) is a participant in a retirem ent system
established for em ployees described in section
2105(c);
(C ) m oves, w ithout a break in service of
m ore than 1 year, to a position that is not described in section 2105(c); and
(D ) is excluded from coverage under chapter
84 by section 8402(b),
shall be given the opportunity to elect irrevocably, w ithin 30 days after such m ove, to rem ain covered, during any subsequent em ploym ent as an em ployee as defined in section
2105(a) or section 2105(c), by the retirem ent system applicable to such em ployee’s current or
m ost recent em ploym ent described in section
2105(c) rather than be subject to this subchapter.
(P ub. L . 89–554, S ept. 6, 1966, 80 S tat. 583; P ub. L .
90–83, §1(84), S ept. 11, 1967, 81 S tat. 218; P ub. L .
90–623, §1(22), O ct. 22, 1968, 82 S tat. 1313; P ub. L .
95–437, §4(a), O ct. 10, 1978, 92 S tat. 1058; P ub. L .
95–454, title IX , §906(a)(2), (3), (9), (c)(2)(F ), O ct.
13, 1978, 92 S tat. 1224, 1225, 1227; P ub. L . 96–54,
§2(a)(50), A ug. 14, 1979, 93 S tat. 384; P ub. L .
96–499, title IV , §404(b), D ec. 5, 1980, 94 S tat. 2606;
P ub. L . 96–500, §1, D ec. 5, 1980, 94 S tat. 2696; P ub.
L . 97–253, title III, §302(b), S ept. 8, 1982, 96 S tat.
793; P ub. L . 99–335, title II, §207(i), June 6, 1986,
100 S tat. 596; P ub. L . 100–238, title I, §108(a)(1),
Jan. 8, 1988, 101 S tat. 1747; P ub. L . 101–474, §5(n),
O ct. 30, 1990, 104 S tat. 1100; P ub. L . 101–508, title
V II, §7202(j)(2), N ov. 5, 1990, 104 S tat. 1388–337;
P ub. L . 102–54, §13(b)(5), June 13, 1991, 105 S tat.
274; P ub. L . 102–378, §2(64), O ct. 2, 1992, 106 S tat.
1354; P ub. L . 102–496, title V III, §803(c), O ct. 24,
1992, 106 S tat. 3253; P ub. L . 103–296, title I,
§108(e)(5), A ug. 15, 1994, 108 S tat. 1486; P ub. L .
104–106, div. A , title X , §1043(a)(1), F eb. 10, 1996,
110 S tat. 434; P ub. L . 107–107, div. A , title X I,
§1131(a), D ec. 28, 2001, 115 S tat. 1242.)

P age 866

H IS T O R IC A L A N D R E V IS IO N N O T E S
1966 A C T
D erivation

R evised Statutes and
Statutes at L arge

U .S. C ode

(a)–(f) ........ 5 U .S .C . 2266 (less
(f)).
(g)–(k ) ....... 5 U .S .C . 2252(e), (f)
(w ords after sem icolon), (h) (1).

July 31, 1956, ch. 804, §401
‘‘S ec. 16 (less (f))’’, 70
S tat. 758.
July 31, 1956, ch. 804, §401
‘‘S ec. 2(e), (f) (w ords after
sem icolon)’’, 70 S tat. 745.
July 1, 1960, P ub. L . 86–568,
§115(b)(1) ‘‘(h) (1)’’, 74
S tat. 302.

In subsection (a), the w ords ‘‘to carry out this subchapter’’ are substituted for ‘‘for the purpose of carrying the provisions of this chapter into full force and effect’’.
S tandard changes are m ade to conform w ith the definitions applicable and the style of this title as outlined
in the preface to the report.
1967 A C T
Section of
title 5

Source (U .S. C ode)

8347(l) ........ 5 A pp.: 2252(f).

Source (Statutes at L arge)
S ept. 26, 1966, P ub. L . 89–604,
§1(c), 80 S tat. 847.

R E F E R E N C E S IN T E X T
S ection 201(c) of the C entral Intelligence A gency R etirem ent A ct, referred to in subsec. (n)(4)(A ), is classified to section 2011(c) of T itle 50, W ar and N ational D efense.
A M ENDM ENTS
2001— S ubsec. (q)(1). P ub. L . 107–107, §1131(a)(1), inserted ‘‘and’’ after sem icolon in subpar. (A ), redesignated subpar. (C ) as (B ), and struck out form er subpar.
(B ) w hich read as follow s: ‘‘has 5 or m ore years of civilian service creditable under this subchapter; and’’.
S ubsec. (q)(2)(B ). P ub. L . 107–107, §1131(a)(2), struck
out ‘‘vested’’ before ‘‘participant in a retirem ent system ’’ and struck out ‘‘, as the term ‘vested participant’
is defined by such system ’’ before sem icolon at end.
1996— S ubsec. (q)(1). P ub. L . 104–106, §1043(a)(1)(A ),
struck out ‘‘of the D epartm ent of D efense or the C oast
G uard’’ after ‘‘an em ployee’’ in introductory provisions
and substituted ‘‘1 year’’ for ‘‘3 days’’ in subpar. (C ).
S ubsec. (q)(2)(C ). P ub. L . 104–106, §1043(a)(1)(B ), substituted ‘‘1 year’’ for ‘‘3 days’’ and struck out ‘‘in the
D epartm ent of D efense or the C oast G uard, respectively,’’ after ‘‘to a position’’.
1994— S ubsec. (m )(3). P ub. L . 103–296 substituted
‘‘C om m issioner of S ocial S ecurity’’ for ‘‘S ecretary of
H ealth and H um an S ervices’’.
1992— S ubsec. (n)(4)(A ). P ub. L . 102–496 substituted
‘‘the C entral Intelligence A gency R etirem ent A ct’’ for
‘‘the C entral Intelligence A gency R etirem ent A ct of
1964 for C ertain E m ployees’’.
S ubsec. (p). P ub. L . 102–378, §2(64)(A ), redesignated
subsec. (p), relating to em ployees of D epartm ent of D efense and C oast G uard, as (q).
S ubsec. (q). P ub. L . 102–378, §2(64)(A ), redesignated
subsec. (p), relating to em ployees of D epartm ent of D efense and C oast G uard, as (q).
S ubsec. (q)(1)(A ), (2)(A ). P ub. L . 102–378, §2(64)(B ),
am ended subpars. (A ) generally. P rior to am endm ent,
subpars. (A ) read as follow s: ‘‘has not previously m ade
or had an opportunity to m ak e an election under this
subsection;’’.
1991— S ubsec. (m )(2). P ub. L . 102–54 substituted ‘‘S ecretary’’ for ‘‘A dm inistrator’’.
1990— S ubsec. (p). P ub. L . 101–508 added subsec. (p) relating to elections by em ployees of D epartm ent of D efense, C oast G uard, or a nonappropriated fund instrum entality of D epartm ent of D efense or C oast G uard.
P ub. L . 101–474 added subsec. (p) relating to D irector
of A dm inistrative O ffice of U nited S tates C ourts.

P age 867

T IT L E 5— G O V E R N M E N T O R G A N IZ A T IO N A N D E M P L O Y E E S

1988— S ubsec. (o). P ub. L . 100–238 added subsec. (o).
1986— S ubsec. (n). P ub. L . 99–335 added subsec. (n).
1982— S ubsec. (m )(3), (4). P ub. L . 97–253 added pars. (3)
and (4).
1980— S ubsec. (c). P ub. L . 96–500, §1(a), substituted
‘‘E xcept to the extent provided under subsection (d) of
this section, the decisions of the O ffice concerning’’ for
‘‘T he decisions of the O ffice concerning’’.
S ubsec. (d). P ub. L . 96–500, §1(b), designated existing
provisions as par. (1), m ade such par. (1) subject to the
provisions of par. (2), and added par. (2).
S ubsec. (m ). P ub. L . 96–499 added subsec. (m ).
1979— S ubsec. (h). P ub. L . 96–54 substituted ‘‘M ayor’’
for ‘‘C om m issioner’’.
1978— S ubsecs. (a) to (c). P ub. L . 95–454, §906(a)(2), (3),
substituted ‘‘O ffice of P ersonnel M anagem ent’’ and
‘‘O ffice’’ for ‘‘C ivil S ervice C om m ission’’ and ‘‘C om m ission’’, respectively.
S ubsec. (d). P ub. L . 95–454, §906(a)(9), substituted
‘‘M erit S ystem s P rotection B oard’’ for ‘‘C om m ission’’,
and ‘‘B oard’’ for ‘‘C om m ission’’.
S ubsecs. (e), (f). P ub. L . 95–454, §906(a)(3), substituted
‘‘O ffice’’ for ‘‘C om m ission’’ w herever appearing.
S ubsec. (g). P ub. L . 95–454, §906(a)(3), (c)(2)(F ), substituted ‘‘O ffice’’ for ‘‘C om m ission’’ w herever appearing, and ‘‘3401’’ for ‘‘3391’’.
P ub. L . 95–437 inserted provision prohibiting the C om m ission from excluding any em ployee w ho occupies a
position on a part-tim e career em ploym ent basis, as defined in section 3391(2) of this title.
S ubsec. (h). P ub. L . 95–454, §906(a)(3), substituted ‘‘O ffice’’ for ‘‘C om m ission’’.
1968— S ubsec. (h). P ub. L . 90–623 substituted ‘‘C om m issioner’’ for ‘‘C om m issioners’’.

§8347

described in section 2105(c), to em ploym ent in nonappropriated fund instrum entality of D epartm ent or
C oast G uard, that is described in section 2105(c), see
section 7202(m )(1) of P ub. L . 101–508, set out as a note
under section 2105 of this title.
E F F E C T IV E D A T E O F 1986 A M E N D M E N T
A m endm ent by P ub. L . 99–335 effective Jan. 1, 1987,
see section 702(a) of P ub. L . 99–335, set out as an E ffective D ate note under section 8401 of this title.
E F F E C T IV E D A T E O F 1982 A M E N D M E N T
A m endm ent by P ub. L . 97–253 effective O ct. 1, 1982,
see section 302(c)(1) of P ub. L . 97–253, as am ended by
section 3(i) of P ub. L . 97–346, set out as a note under
section 8337 of this title.
E F F E C T IV E D A T E O F 1980 A M E N D M E N T S
S ection 2 of P ub. L . 96–500 provided that: ‘‘T he
am endm ents m ade by the first section of this A ct
[am ending this section] shall apply w ith respect to determ inations m ade by the O ffice of P ersonnel M anagem ent on or after the first day of the first m onth beginning after the date of the enactm ent of this A ct [D ec.
5, 1980].’’
A m endm ent by P ub. L . 96–499 effective D ec. 5, 1980,
see section 404(c) of P ub. L . 96–499, set out as a note
under section 8339 of this title.
E F F E C T IV E D A T E O F 1979 A M E N D M E N T
A m endm ent by P ub. L . 96–54 effective July 12, 1979,
see section 2(b) of P ub. L . 96–54, set out as a note under
section 305 of this title.

CH A N G E OF N A M E

E F F E C T IV E D A T E O F 1978 A M E N D M E N T

R eference to the D irector of C entral Intelligence or
the D irector of the C entral Intelligence A gency in the
D irector’s capacity as the head of the intelligence com m unity deem ed to be a reference to the D irector of N ational Intelligence. R eference to the D irector of C entral Intelligence or the D irector of the C entral Intelligence A gency in the D irector’s capacity as the head of
the C entral Intelligence A gency deem ed to be a reference to the D irector of the C entral Intelligence A gency. S ee section 1081(a), (b) of P ub. L . 108–458, set out as
a note under section 401 of T itle 50, W ar and N ational
D efense.

A m endm ent by P ub. L . 95–454 effective 90 days after
O ct. 13, 1978, see section 907 of P ub. L . 95–454, set out as
a note under section 1101 of this title.

E F F E C T IV E D A T E O F 1996 A M E N D M E N T
F or effective date of am endm ents by P ub. L . 104–106,
see R egulations; E ffective D ate of 1996 A m endm ent
note below .
E F F E C T IV E D A T E O F 1994 A M E N D M E N T
A m endm ent by P ub. L . 103–296 effective M ar. 31, 1995,
see section 110(a) of P ub. L . 103–296, set out as a note
under section 401 of T itle 42, T he P ublic H ealth and
W elfare.
E F F E C T IV E D A T E O F 1992 A M E N D M E N T S
A m endm ent by P ub. L . 102–496 effective on first day
of fourth m onth beginning after O ct. 24, 1992, see section 805 of P ub. L . 102–496, set out as an E ffective D ate
note under section 2001 of T itle 50, W ar and N ational
D efense.
A m endm ent by section 2(64) of P ub. L . 102–378 effective N ov. 5, 1990, see section 9(b)(6) of P ub. L . 102–378,
set out as a note under section 6303 of this title.
E F F E C T IV E D A T E O F 1990 A M E N D M E N T
A m endm ent by P ub. L . 101–508 applicable w ith respect to any individual w ho, on or after Jan. 1, 1987,
m oves from em ploym ent in nonappropriated fund instrum entality of D epartm ent of D efense or C oast
G uard, that is described in section 2105(c) of this title,
to em ploym ent in D epartm ent or C oast G uard, that is
not described in section 2105(c), or w ho m oves from em ploym ent in D epartm ent or C oast G uard, that is not

E F F E C T IV E D A T E O F 1968 A M E N D M E N T
A m endm ent by P ub. L . 90–623 intended to restate
w ithout substantive change the law in effect on O ct. 22,
1968, see section 6 of P ub. L . 90–623, set out as a note
under section 5334 of this title.
R E G U L A T IO N S ; E F F E C T IV E D A T E O F 1996 A M E N D M E N T
S ection 1043(b), (c) of P ub. L . 104–106 provided that:
‘‘(b) R E G U L A T IO N S .— N ot later than 6 m onths after the
date of the enactm ent of this A ct [F eb. 10, 1996], the O ffice of P ersonnel M anagem ent (and each of the other
adm inistrative authorities, w ithin the m eaning of subsection (c)(2)(C )(iii)) shall prescribe any regulations (or
m ak e any m odifications in existing regulations) necessary to carry out this section [am ending this section
and sections 3502 and 8461 of this title and enacting provisions set out as a note under section 3502 of this title]
and the am endm ents m ade by this section, including
regulations to provide for the notification of individuals w ho m ay be affected by the enactm ent of this section. A ll regulations (and m odifications to regulations)
under the preceding sentence shall tak e effect on the
sam e date.
‘‘(c) A P P L IC A B IL IT Y ; R E L A T E D P R O V IS IO N S .—
‘‘(1) P R O S P E C T IV E R U L E S .— E xcept as otherw ise provided in this subsection, the am endm ents m ade by
this section [am ending this section and sections 3502
and 8461 of this title] shall apply w ith respect to
m oves occurring on or after the effective date of the
regulations under subsection (b). M oves occurring on
or after the date of the enactm ent of this A ct [F eb.
10, 1996] and before the effective date of such regulations shall be subject to applicable provisions of title
5, U nited S tates C ode, disregarding the am endm ents
m ade by this section, except that any individual
m ak ing an election pursuant to this sentence shall be
ineligible to m ak e an election otherw ise allow able
under paragraph (2).
‘‘(2) R E T R O A C T IV E R U L E S .—

§8347

T IT L E 5— G O V E R N M E N T O R G A N IZ A T IO N A N D E M P L O Y E E S

‘‘(A ) IN G E N E R A L .— T he regulations under subsection (b) shall include provisions for the application of sections 8347(q) and 8461(n) of title 5, U nited
S tates C ode, as am ended by this section, w ith respect to any individual w ho, at any tim e after D ecem ber 31, 1965, and before the effective date of such
regulations, m oved betw een positions in circum stances that w ould have qualified such individual
to m ak e an election under the provisions of such
section 8347(q) or 8461(n), as so am ended, if such
provisions had then been in effect.
‘‘(B ) D E A D L IN E ; R E L A T E D P R O V IS IO N S .— A n election
pursuant to this paragraph—
‘‘(i) shall be m ade w ithin 1 year after the effective date of the regulations under subsection (b),
and
‘‘(ii) shall have the sam e force and effect as if it
had been tim ely m ade at the tim e of the m ove,
except that no such election m ay be m ade by any
individual—
‘‘(I) w ho has previously m ade, or had an opportunity to m ak e, an election under section 8347(q)
or 8461(n) of title 5, U nited S tates C ode (as in effect before being am ended by this section); how ever, this subclause shall not be considered to
render an individual ineligible, based on an opportunity arising out of a m ove occurring during the
period described in the second sentence of paragraph (1), if no election has in fact been m ade by
such individual based on such m ove;
‘‘(II) w ho has not, since the m ove on w hich eligibility for the election is based, rem ained continuously subject (disregarding any break in service of less than 3 days) to C S R S or F E R S or both
seriatim (if the m ove w as from a N A F I position)
or any retirem ent system (or 2 or m ore such system s seriatim ) established for em ployees described in section 2105(c) of such title (if the m ove
w as to a N A F I position); or
‘‘(III) if such election w ould be based on a m ove
to the C ivil S ervice R etirem ent S ystem from a
retirem ent system established for em ployees described in section 2105(c) of such title.
‘‘(C ) T R A N S F E R S O F C O N T R IB U T IO N S .—
‘‘(i) IN G E N E R A L .— If an individual m ak es an
election under this paragraph to be transferred
back to a retirem ent system in w hich such individual previously participated (in this section referred to as the ‘previous system ’), all individual
contributions (including interest) and G overnm ent contributions to the retirem ent system in
w hich such individual is then currently participating (in this section referred to as the ‘current
system ’), excluding those m ade to the T hrift S avings P lan or any other defined contribution plan,
w hich are attributable to periods of service perform ed since the m ove on w hich the election is
based, shall be paid to the fund, account, or other
repository for contributions m ade under the previous system . F or purposes of this section, the
term ‘current system ’ shall be considered also to
include any retirem ent system (besides the one in
w hich the individual is participating at the tim e
of m ak ing the election) in w hich such individual
previously participated since the m ove on w hich
the election is based.
‘‘(ii) C O N D IT IO N S U B S E Q U E N T R E L A T IN G T O R E P A Y M E N T O F L U M P -S U M C R E D IT .— In the case of an individual w ho has received such individual’s lum psum credit (w ithin the m eaning of section 8401(19)
of title 5, U nited S tates C ode, or a sim ilar paym ent) from such individual’s previous system , the
paym ent described in clause (i) shall not be m ade
(and the election to w hich it relates shall be ineffective) unless such lum p-sum credit is redeposited or otherw ise paid at such tim e and in such
m anner as shall be required under applicable regulations. R egulations to carry out this clause
shall include provisions for the com putation of
interest (consistent w ith section 8334(e)(2) and (3)

P age 868

of title 5, U nited S tates C ode), if no provisions for
such com putation otherw ise exist.
‘‘(iii) C O N D IT IO N S U B S E Q U E N T R E L A T IN G T O D E F IC IE N C Y IN P A Y M E N T S R E L A T IV E T O A M O U N T S N E E D E D
T O E N S U R E T H A T B E N E F IT S A R E F U L L Y F U N D E D .—
‘‘(I) IN G E N E R A L .— E xcept as provided in sub-

clause (II), the paym ent described in clause (i)
shall not be m ade (and the election to w hich it
relates shall be ineffective) if the actuarial
present value of the future benefits that w ould
be payable under the previous system w ith respect to service perform ed by such individual
after the m ove on w hich the election under this
paragraph is based and before the effective date
of the election, exceeds the total am ounts required to be transferred to the previous system
under the preceding provisions of this subparagraph w ith respect to such service, as determ ined by the authority adm inistering such previous system (in this section referred to as the
‘adm inistrative authority’).
‘‘(II) P A Y M E N T O F D E F IC IE N C Y .— A determ ination of a deficiency under this clause shall not
render an election ineffective if the individual
pays or arranges to pay, at a tim e and in a m anner satisfactory to such adm inistrative authority, the full am ount of the deficiency described
in subclause (I).
‘‘(D ) A L T E R N A T IV E E L E C T IO N F O R A N IN D IV ID U A L
T H E N P A R T IC IP A T IN G IN F E R S .—
‘‘(i) A P P L IC A B IL IT Y .— T his subparagraph applies
w ith respect to any individual w ho—
‘‘(I) is then currently participating in F E R S ;
and
‘‘(II) w ould then otherw ise be eligible to m ak e
an election under subparagraphs (A ) through (C )
of this paragraph, determ ined disregarding the
m atter in subclause (I) of subparagraph (B ) before the first sem icolon therein.
‘‘(ii) E L E C T IO N .— A n individual described in
clause (i) m ay, instead of m ak ing an election for
w hich such individual is otherw ise eligible under
this paragraph, elect to have all prior qualifying
N A F I service of such individual treated as creditable service for purposes of any annuity under
F E R S payable out of the C ivil S ervice R etirem ent and D isability F und.
‘‘(iii) Q U A L IF Y IN G N A F I S E R V IC E .— F or purposes
of this subparagraph, the term ‘qualifying N A F I
service’ m eans any service w hich, but for this
subparagraph, w ould be creditable for purposes of
any retirem ent system established for em ployees
described in section 2105(c) of title 5, U nited
S tates C ode.
‘‘(iv) S E R V IC E C E A S E S T O B E C R E D IT A B L E F O R N A F I
R E T IR E M E N T S Y S T E M P U R P O S E S .— A ny qualifying
N A F I service that becom es creditable for F E R S
purposes by virtue of an election m ade under this
subparagraph shall not be creditable for purposes
of any retirem ent system referred to in clause
(iii).
‘‘(v) C O N D IT IO N S .— A n election under this subparagraph shall be subject to requirem ents, sim ilar to those set forth in subparagraph (C ), to ensure that—
‘‘(I) appropriate transfers of individual and
G overnm ent contributions are m ade to the C ivil
S ervice R etirem ent and D isability F und; and
‘‘(II) the actuarial present value of future benefits under F E R S attributable to service m ade
creditable by such election is fully funded.
‘‘(E ) A L T E R N A T IV E E L E C T IO N F O R A N IN D IV ID U A L
T H E N P A R T IC IP A T IN G IN A N A F I R E T IR E M E N T S Y S T E M .—
‘‘(i) A P P L IC A B IL IT Y .— T his subparagraph applies
w ith respect to any individual w ho—
‘‘(I) is then currently participating in any retirem ent system established for em ployees described in section 2105(c) of title 5, U nited
S tates C ode (in this subparagraph referred to as
a ‘N A F I retirem ent system ’); and

P age 869

T IT L E 5— G O V E R N M E N T O R G A N IZ A T IO N A N D E M P L O Y E E S

‘‘(II) w ould then otherw ise be eligible to m ak e
an election under subparagraphs (A ) through (C )
of this paragraph (determ ined disregarding the
m atter in subclause (I) of subparagraph (B ) before the first sem icolon therein) based on a
m ove from F E R S .
‘‘(ii) E L E C T IO N .— A n individual described in
clause (i) m ay, instead of m ak ing an election for
w hich such individual is otherw ise eligible under
this paragraph, elect to have all prior qualifying
F E R S service of such individual treated as creditable service for purposes of determ ining eligibility for benefits under a N A F I retirem ent system , but not for purposes of com puting the
am ount of any such benefits except as provided in
clause (v)(II).
‘‘(iii) Q U A L IF Y IN G F E R S S E R V IC E .— F or purposes
of this subparagraph, the term ‘qualifying F E R S
service’ m eans any service w hich, but for this
subparagraph, w ould be creditable for purposes of
the F ederal E m ployees’ R etirem ent S ystem .
‘‘(iv) S E R V IC E C E A S E S T O B E C R E D IT A B L E F O R P U R P O S E S O F F E R S .— A ny qualifying F E R S service
that becom es creditable for N A F I purposes by virtue of an election m ade under this subparagraph
shall not be creditable for purposes of the F ederal
E m ployees’ R etirem ent S ystem .
‘‘(v) F U N D IN G R E Q U IR E M E N T S .—
‘‘(I) IN G E N E R A L .— E xcept as provided in subclause (II), nothing in this section or in any
other provision of law or any other authority
shall be considered to require any paym ent or
transfer of m onies in order for an election under
this subparagraph to be effective.
‘‘(II) C O N T R IB U T IO N R E Q U IR E D O N L Y IF IN D IV ID U A L E L E C T S T O H A V E S E R V IC E M A D E C R E D IT A B L E
F O R C O M P U T A T IO N P U R P O S E S A S W E L L .— U nder

regulations prescribed by the appropriate adm inistrative authority, an individual m ak ing
an election under this subparagraph m ay further elect to have the qualifying F E R S service
m ade creditable for com putation purposes
under a N A F I retirem ent system , but only if
the individual pays or arranges to pay, at a
tim e and in a m anner satisfactory to such adm inistrative authority, the am ount necessary
to fully fund the actuarial present value of future benefits under the N A F I retirem ent system
attributable to the qualifying F E R S service.
‘‘(3) IN F O R M A T IO N .— T he regulations under subsection (b) shall include provisions under w hich any
individual—
‘‘(A ) shall, upon request, be provided inform ation
or assistance in determ ining w hether such individual is eligible to m ak e an election under paragraph
(2) and, if so, the exact am ount of any paym ent
w hich w ould be required of such individual in connection w ith any such election; and
‘‘(B ) m ay seek any other inform ation or assistance relating to any such election.’’
T E R M IN A T IO N O F R E P O R T IN G R E Q U IR E M E N T S
F or term ination, effective M ay 15, 2000, of provisions
of law requiring subm ittal to C ongress of any annual,
sem iannual, or other regular periodic report listed in
H ouse D ocum ent N o. 103–7 (in w hich the report required
by subsec. (f) of this section is listed on page 187), see
section 3003 of P ub. L . 104–66, as am ended, set out as a
note under section 1113 of T itle 31, M oney and F inance.
T R A N S F E R O F F U N C T IO N S
F or transfer of authorities, functions, personnel, and
assets of the C oast G uard, including the authorities
and functions of the S ecretary of T ransportation relating thereto, to the D epartm ent of H om eland S ecurity,
and for treatm ent of related references, see sections
468(b), 551(d), 552(d), and 557 of T itle 6, D om estic S ecurity, and the D epartm ent of H om eland S ecurity R eorganization P lan of N ovem ber 25, 2002, as m odified, set
out as a note under section 542 of T itle 6.

§8348

T R E A T M E N T O F IN D IV ID U A L S E L E C T IN G T O R E M A IN
S U B JE C T T O T H E IR F O R M E R R E T IR E M E N T S Y S T E M
F or provisions relating to the deductions and contributions required w ith respect to individuals electing
under section 8347(q) or 8461(n) of this title to rem ain
covered under subchapter III of chapter 83 of this title,
chapter 84 of this title, or a retirem ent system for em ployees described in section 2105(c) of this title, see section 7202(n) of P ub. L . 101–508, set out as a note under
section 2105 of this title.

§8348. C ivil Service R etirem ent and D isability
F und
(a) T here is a C ivil S ervice R etirem ent and
D isability F und. T he F und—
(1) is appropriated for the paym ent of—
(A ) benefits as provided by this subchapter
or by the provisions of chapter 84 of this
title w hich relate to benefits payable out of
the F und; and
(B ) adm inistrative expenses incurred by
the O ffice of P ersonnel M anagem ent in placing in effect each annuity adjustm ent granted under section 8340 or 8462 of this title, in
adm inistering survivor annuities and elections providing therefor under sections 8339
and 8341 of this title or subchapters II and IV
of chapter 84 of this title, in adm inistering
alternative form s of annuities under sections 8343a and 8420a (and related provisions
of law ), in m ak ing an allotm ent or assignm ent m ade by an individual under section
8345(h) or 8465(b) of this title, and in w ithholding taxes pursuant to section 3405 of
title 26 or section 8345(k ) or 8469 of this title;
(2) is m ade available, subject to such annual
lim itation as the C ongress m ay prescribe, for
any expenses incurred by the O ffice in connection w ith the adm inistration of this chapter,
chapter 84 of this title, and other retirem ent
and annuity statutes; and
(3) is m ade available, subject to such annual
lim itation as the C ongress m ay prescribe, for
any expenses incurred by the M erit S ystem s
P rotection B oard in the adm inistration of appeals authorized under sections 8347(d) and
8461(e) of this title.
(b) T he S ecretary of the T reasury m ay accept
and credit to the F und m oney received in the
form of a donation, gift, legacy, or bequest, or
otherw ise contributed for the benefit of civilservice em ployees generally.
(c) T he S ecretary shall im m ediately invest in
interest-bearing securities of the U nited S tates
such currently available portions of the F und as
are not im m ediately required for paym ents from
the F und. T he incom e derived from these investm ents constitutes a part of the F und.
(d) T he purposes for w hich obligations of the
U nited S tates m ay be issued under chapter 31 of
title 31 are extended to authorize the issuance at
par of public-debt obligations for purchase by
the F und. T he obligations issued for purchase by
the F und shall have m aturities fixed w ith due
regard for the needs of the F und and bear interest at a rate equal to the average m ark et yield
com puted as of the end of the calendar m onth
next preceding the date of the issue, borne by all
m ark etable interest-bearing obligations of the
U nited S tates then form ing a part of the public

P age 953

T IT L E 5— G O V E R N M E N T O R G A N IZ A T IO N A N D E M P L O Y E E S

Jan. 8, 1988, 101 S tat. 1756; P ub. L . 103–337, div. A ,
title X V I, §1677(a)(4), O ct. 5, 1994, 108 S tat. 3019.)
P R IO R P R O V IS IO N S
A prior section 8456, added P ub. L . 99–355, title I,
§101(a), June 6, 1986, 100 S tat. 569, related to relationship betw een annuity and w ork ers’ com pensation, prior
to repeal by P ub. L . 100–238, title I, §124(b)(1)(A ), Jan.
8, 1988, 101 S tat. 1756. S ee section 8464a of this title.
A M EN D M EN TS
1994— S ubsec. (a)(1)(A ). P ub. L . 103–337 substituted
‘‘section 10101’’ for ‘‘section 261(a)’’.
1988— P ub. L . 100–238 renum bered section 8457 of this
title as this section.
1986— S ubsec. (a)(1)(C ), (D ), (2)(A ), (B ). P ub. L . 99–556
substituted ‘‘subsection (b)’’ for ‘‘subsection (c)’’.
E F F E C T IV E D A T E O F 1994 A M E N D M E N T
A m endm ent by P ub. L . 103–337 effective D ec. 1, 1994,
except as otherw ise provided, see section 1691 of P ub. L .
103–337, set out as an E ffective D ate note under section
10001 of T itle 10, A rm ed F orces.

[§8457.R enum bered §8456]
S U B C H A P T E R V I— G E N E R A L A N D
A D M IN IS T R A T IV E P R O V IS IO N S
§8461. A uthority of the O ffice of P ersonnel M anagem ent
(a) T he O ffice shall pay all benefits that are
payable under subchapter II, IV , V , or V I of this
chapter from the F und.
(b) T he O ffice shall adm inister all provisions
of this chapter not specifically required to be
adm inistered by the B oard, the E xecutive D irector, the S ecretary of L abor, or any other officer
or agency.
(c) T he O ffice shall adjudicate all claim s under
the provisions of this chapter adm inistered by
the O ffice.
(d) T he O ffice shall determ ine questions of disability and dependency arising under the provisions of this chapter adm inistered by the O ffice.
E xcept to the extent provided under subsection
(e), the decisions of the O ffice concerning these
m atters are final and conclusive and are not
subject to review . T he O ffice m ay direct at any
tim e such m edical or other exam inations as it
considers necessary to determ ine the facts concerning disability or dependency of an individual receiving or applying for annuity under the
provisions of this chapter adm inistered by the
O ffice. T he O ffice m ay suspend or deny annuity
for failure to subm it to exam ination.
(e)(1) S ubject to paragraph (2), an adm inistrative action or order affecting the rights or interests of an individual or of the U nited S tates
under the provisions of this chapter adm inistered by the O ffice m ay be appealed to the M erit
S ystem s P rotection B oard under procedures prescribed by the B oard.
(2) In the case of any individual found by the
O ffice to be disabled in w hole or in part on the
basis of the individual’s m ental condition, and
that finding w as m ade pursuant to an application by an agency for purposes of disability retirem ent under section 8451, the procedures
under section 7701 shall apply and the decision
of the B oard shall be subject to judicial review
under section 7703.
(f) T he O ffice shall fix the fees for exam inations m ade under subchapter V of this chapter

§8461

by physicians or surgeons w ho are not m edical
officers of the U nited S tates. T he fees and reasonable traveling and other expenses incurred in
connection w ith the exam inations are paid from
appropriations for the cost of adm inistering the
provisions of this chapter adm inistered by the
O ffice.
(g) T he O ffice m ay prescribe regulations to
carry out the provisions of this chapter adm inistered by the O ffice.
(h)(1) E ach G overnm ent agency shall furnish
the D irector w ith such inform ation as the D irector determ ines necessary in order to adm inister
this chapter.
(2) T he D irector, in consultation w ith the officials from w hom such inform ation is requested,
shall establish (by regulation or otherw ise) such
safeguards as are necessary to ensure that inform ation m ade available under this subsection is
used only for the purpose authorized.
(i) In m ak ing a determ ination of ‘‘actuarial
equivalence’’ under this chapter, the econom ic
assum ptions used shall be the sam e as the econom ic assum ptions m ost recently used by the
O ffice (before the determ ination of actuarial
equivalence involved) in determ ining the norm al-cost percentage of the S ystem .
(j)(1) N otw ithstanding any other provision of
this chapter, the D irector of C entral Intelligence shall, in a m anner consistent w ith the
adm inistration of this chapter by the O ffice, and
to the extent considered appropriate by the D irector of C entral Intelligence—
(A ) determ ine entitlem ent to benefits under
this chapter based on the service of em ployees
of the C entral Intelligence A gency;
(B ) m aintain records relating to the service
of such em ployees;
(C ) com pute benefits under this chapter
based on the service of such em ployees;
(D ) collect deposits to the F und m ade by
such em ployees, their spouses, their form er
spouses, and their survivors;
(E ) authorize and direct disbursem ents from
the F und to the extent based on service of
such em ployees; and
(F ) perform such other functions under this
chapter (other than under subchapters III and
V II of this chapter) w ith respect to em ployees
of the C entral Intelligence A gency as the D irector of C entral Intelligence, in consultation
w ith the D irector of the O ffice of P ersonnel
M anagem ent, determ ines to be appropriate.
(2) T he D irector of the O ffice of P ersonnel
M anagem ent shall furnish such inform ation and,
on a reim bursable basis, such services to the D irector of C entral Intelligence as the D irector of
C entral Intelligence requests to carry out paragraph (1).
(k )(1) T he D irector of C entral Intelligence, in
consultation w ith the E xecutive D irector of the
F ederal R etirem ent T hrift Investm ent B oard,
m ay—
(A ) m aintain exclusive records relating to
elections, contributions, and accounts under
the T hrift S avings P lan provided in subchapter III of this chapter in the case of em ployees of the C entral Intelligence A gency;
(B ) provide that contributions by, or on behalf of, such em ployees to the T hrift S avings
P lan be accounted for by such E xecutive D irector in aggregate am ounts;

§8461

T IT L E 5— G O V E R N M E N T O R G A N IZ A T IO N A N D E M P L O Y E E S

(C ) m ak e the necessary disbursem ents from ,
and the necessary allocations of earnings,
losses, and charges to, individual accounts of
such em ployees under the T hrift S avings P lan;
and
(D ) perform such other functions under subchapters III and V II of this chapter (but not
including investing sum s in the T hrift S avings
F und) w ith respect to em ployees of the C entral Intelligence A gency as the D irector of
C entral Intelligence, in consultation w ith the
E xecutive D irector of the F ederal R etirem ent
T hrift Investm ent B oard, determ ines to be appropriate.
(2) T he E xecutive D irector of the F ederal R etirem ent T hrift Investm ent B oard m ay not exercise authority under this chapter in the case of
em ployees of the C entral Intelligence A gency to
the extent that the D irector of C entral Intelligence exercises authority provided in paragraph (1).
(3) T he E xecutive D irector of the F ederal R etirem ent T hrift Investm ent B oard shall furnish
such inform ation and, on a reim bursable basis,
such services to the D irector of C entral Intelligence as the D irector of C entral Intelligence
determ ines necessary to carry out this subsection.
(l) S ubsection (h)(1), and sections 8439(b) and
8474(c)(4), shall be applied w ith respect to inform ation relating to em ployees of the C entral Intelligence A gency in a m anner that protects intelligence sources, m ethods, and activities.
(m )(1) T he D irector of C entral Intelligence, in
consultation w ith the D irector of the O ffice of
P ersonnel M anagem ent and the E xecutive D irector of the F ederal R etirem ent T hrift Investm ent
B oard, shall by regulation prescribe appropriate
procedures to carry out subsections (j), (k ), and
(l).
(2) T he regulations shall provide procedures
for the D irector of the O ffice of P ersonnel M anagem ent to inspect and audit disbursem ents
from the F und under this chapter.
(3) T he D irector of C entral Intelligence shall
subm it the regulations prescribed under paragraph (1) to the S elect C om m ittee on Intelligence of the S enate and the P erm anent S elect
C om m ittee on Intelligence of the H ouse of R epresentatives before the regulations tak e effect.
(n)(1) U nder regulations prescribed by the O ffice, an em ployee w ho—
(A ) has not previously m ade an election
under this subsection or had an opportunity to
m ak e an election under this paragraph; and
(B ) m oves, w ithout a break in service of
m ore than 1 year, to em ploym ent in a nonappropriated fund instrum entality of the D epartm ent of D efense or the C oast G uard, respectively, described in section 2105(c),
shall be given the opportunity to elect irrevocably, w ithin 30 days after such m ove, to rem ain covered as an em ployee under this chapter
during any em ploym ent described in section
2105(c) after such m ove.
(2) U nder regulations prescribed by the O ffice,
an em ployee of a nonappropriated fund instrum entality of the D epartm ent of D efense or the
C oast G uard described in section 2105(c), w ho—
(A ) has not previously m ade an election
under this subsection or had an opportunity to
m ak e an election under this paragraph;

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(B ) is a participant in a retirem ent system
established for em ployees described in section
2105(c);
(C ) m oves, w ithout a break in service of
m ore than 1 year, to a position that is not described by section 2105(c); and
(D ) is not eligible to m ak e an election under
section 8347(q),
shall be given the opportunity to elect irrevocably, w ithin 30 days after such m ove, to rem ain covered, during any subsequent em ploym ent as an em ployee as defined by section
2105(a) or section 2105(c), by the retirem ent system applicable to such em ployee’s current or
m ost recent em ploym ent described by section
2105(c) rather than be subject to this chapter.
(A dded P ub. L . 99–335, title I, §101(a), June 6,
1986, 100 S tat. 570; am ended P ub. L . 99–556, title
I, §102, O ct. 27, 1986, 100 S tat. 3131; P ub. L .
101–508, title V II, §7202(k )(2), N ov. 5, 1990, 104
S tat. 1388–339; P ub. L . 102–378, §2(71), O ct. 2, 1992,
106 S tat. 1355; P ub. L . 104–106, div. A , title X ,
§1043(a)(2), F eb. 10, 1996, 110 S tat. 434; P ub. L .
107–107, div. A , title X I, §1131(b), D ec. 28, 2001, 115
S tat. 1242.)
A M ENDM ENTS
2001— S ubsec. (n)(1). P ub. L . 107–107, §1131(b)(1), inserted ‘‘and’’ at end of subpar. (A ), redesignated subpar.
(C ) as (B ), and struck out form er subpar. (B ) w hich read
as follow s: ‘‘has 5 or m ore years of civilian service creditable under this chapter; and’’.
S ubsec. (n)(2)(B ). P ub. L . 107–107, §1131(b)(2), struck
out ‘‘vested’’ before ‘‘participant in a retirem ent system ’’ and struck out ‘‘, as the term ‘vested participant’
is defined by such system ’’ before sem icolon at end.
1996— S ubsec. (n)(1). P ub. L . 104–106, §1043(a)(2)(A ),
struck out ‘‘of the D epartm ent of D efense or the C oast
G uard’’ after ‘‘an em ployee’’ in introductory provisions
and substituted ‘‘1 year’’ for ‘‘3 days’’ in subpar. (C ).
S ubsec. (n)(2)(C ). P ub. L . 104–106, §1043(a)(2)(B ), substituted ‘‘1 year’’ for ‘‘3 days’’ and struck out ‘‘in the
D epartm ent of D efense or the C oast G uard, respectively,’’ after ‘‘to a position’’.
1992— S ubsec. (n)(1)(A ), (2)(A ). P ub. L . 102–378,
§2(71)(A ), am ended subpars. (A ) generally. P rior to
am endm ent, subpars. (A ) read as follow s: ‘‘has not previously m ade or had an opportunity to m ak e an election under this subsection;’’.
S ubsec. (n)(2)(D ). P ub. L . 102–378, §2(71)(B ), substituted ‘‘8347(q)’’ for ‘‘8347(p)’’.
1990— S ubsec. (n). P ub. L . 101–508 added subsec. (n).
1986— S ubsec. (m )(2). P ub. L . 99–556 struck out ‘‘, and
from the T hrift S avings F und,’’ after ‘‘from the F und’’.
CH A N G E OF N A M E
R eference to the D irector of C entral Intelligence or
the D irector of the C entral Intelligence A gency in the
D irector’s capacity as the head of the intelligence com m unity deem ed to be a reference to the D irector of N ational Intelligence. R eference to the D irector of C entral Intelligence or the D irector of the C entral Intelligence A gency in the D irector’s capacity as the head of
the C entral Intelligence A gency deem ed to be a reference to the D irector of the C entral Intelligence A gency. S ee section 1081(a), (b) of P ub. L . 108–458, set out as
a note under section 401 of T itle 50, W ar and N ational
D efense.
E F F E C T IV E D A T E O F 1996 A M E N D M E N T
F or effective date of am endm ents by P ub. L . 104–106,
see R egulations; E ffective D ate of 1996 A m endm ent
note below .

P age 955

T IT L E 5— G O V E R N M E N T O R G A N IZ A T IO N A N D E M P L O Y E E S

E F F E C T IV E D A T E O F 1992 A M E N D M E N T
A m endm ent by P ub. L . 102–378 effective N ov. 5, 1990,
see section 9(b)(6) of P ub. L . 102–378, set out as a note
under section 6303 of this title.
E F F E C T IV E D A T E O F 1990 A M E N D M E N T
A m endm ent by P ub. L . 101–508 applicable w ith respect to any individual w ho, on or after Jan. 1, 1987,
m oves from em ploym ent in nonappropriated fund instrum entality of D epartm ent of D efense or C oast
G uard, that is described in section 2105(c) of this title,
to em ploym ent in D epartm ent or C oast G uard, that is
not described in section 2105(c), or w ho m oves from em ploym ent in D epartm ent or C oast G uard, that is not
described in section 2105(c), to em ploym ent in nonappropriated fund instrum entality of D epartm ent or
C oast G uard, that is described in section 2105(c), see
section 7202(m )(1) of P ub. L . 101–508, set out as a note
under section 2105 of this title.
R E G U L A T IO N S ; E F F E C T IV E D A T E O F 1996 A M E N D M E N T
F or provisions relating to prom ulgation of regulations necessary to carry out am endm ent by P ub. L .
104–106, and effective date of such am endm ent in connection w ith those regulations, see section 1043(b), (c)
of P ub. L . 104–106, set out as a note under section 8347
of this title.
T R A N S F E R O F F U N C T IO N S
F or transfer of authorities, functions, personnel, and
assets of the C oast G uard, including the authorities
and functions of the S ecretary of T ransportation relating thereto, to the D epartm ent of H om eland S ecurity,
and for treatm ent of related references, see sections
468(b), 551(d), 552(d), and 557 of T itle 6, D om estic S ecurity, and the D epartm ent of H om eland S ecurity R eorganization P lan of N ovem ber 25, 2002, as m odified, set
out as a note under section 542 of T itle 6.
T R E A T M E N T O F IN D IV ID U A L S E L E C T IN G T O R E M A IN
S U B JE C T T O T H E IR F O R M E R R E T IR E M E N T S Y S T E M
F or provisions relating to the deductions and contributions required w ith respect to individuals electing
under section 8347(q) or 8461(n) of this title to rem ain
covered under subchapter III of chapter 83 of this title,
chapter 84 of this title, or a retirem ent system for em ployees described in section 2105(c) of this title, see section 7202(n) of P ub. L . 101–508, set out as a note under
section 2105 of this title.

§8462.C ost-of-living adjustm ents
(a) F or the purpose of this section—
(1) the term ‘‘base quarter’’, as used w ith respect to a year, m eans the calendar quarter
ending on S eptem ber 30 of such year;
(2) the price index for a base quarter is the
arithm etical m ean of such index for the 3
m onths com prising such quarter; and
(3) the term ‘‘percent change in the price
index’’, as used w ith respect to a year, m eans
the percentage derived by—
(A ) reducing—
(i) the price index for the base quarter of
such year, by
(ii) the price index for the base quarter
of the preceding year in w hich an adjustm ent under this subsection w as m ade;
(B ) dividing the difference under subparagraph (A ) by the price index referred to in
subparagraph (A )(ii); and
(C ) m ultiplying the quotient under subparagraph (B ) by 100.
(b)(1) E xcept as provided in subsection (c), effective D ecem ber 1 of any year in w hich an ad-

§8462

justm ent under this subsection is to be m ade, as
determ ined under paragraph (2), each annuity
payable from the F und under this chapter (other
than an annuity under section 8443) having a
com m encing date not later than such D ecem ber
1 shall be adjusted as follow s:
(A ) If the percent change in the price index
for the year does not exceed 3 percent, each
annuity subject to adjustm ent under this subsection shall be increased by the lesser of—
(i) the percent change in the price index
(rounded to the nearest one-tenth of 1 percent); or
(ii) 2 percent.
(B ) If the percent change in the price index
for the year exceeds 3 percent, each annuity
subject to adjustm ent under this subsection
shall be increased by the excess of—
(i) the percent change in the price index
(rounded to the nearest one-tenth of 1 percent), over
(ii) 1 percent.
(2) A n adjustm ent under this subsection shall
be m ade in a year only if the price index for the
base quarter of such year exceeds the price index
for the base quarter of the preceding year in
w hich an adjustm ent under this subsection w as
m ade.
(3) A n annuity under this chapter shall not be
subject to adjustm ent under section 8340. N othing in the preceding sentence shall affect the
com putation of any am ount under section
8443(a)(2).
(c) E ligibility for an annuity increase under
this section is governed by the com m encing date
of each annuity payable from the F und as of the
effective date of an increase, except as follow s:
(1) T he first increase (if any) m ade under
subsection (b) to an annuity w hich is payable
from the F und to an annuitant or survivor
(other than a child under section 8443) w hose
annuity has not been increased under this subsection or subsection (b) shall be equal to the
product (adjusted to the nearest one-tenth of 1
percent) of—
(A ) one-tw elfth of the applicable percent
change com puted under subsection (b), m ultiplied by
(B ) the num ber of m onths (not to exceed 12
m onths, counting any portion of a m onth as
a m onth)—
(i) for w hich the annuity w as payable
from the F und before the effective date of
the increase; or
(ii) in the case of a survivor of a deceased
annuitant w hose annuity has not been so
increased, since the annuity w as first payable to the deceased annuitant.
(2) E ffective from its com m encing date, an
annuity payable from the F und to an annuitant’s survivor (other than a w idow or w idow er w hose annuity is com puted under section
8442(g) or a child under section 8443) shall be
increased by the total percentage by w hich the
deceased annuitant’s annuity had been increased under this section during the period
beginning on the date the deceased annuitant’s annuity com m enced and ending on the
date of the deceased annuitant’s death.
(3)(A ) A n adjustm ent under subsection (b)
for any year shall not be effective w ith respect