Citations

§ 8421a

TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES

being rounded to the next higher number), not
to exceed the number under subparagraph (B);
and
(B) the denominator of which is 40.
(4) For the purpose of this subsection—
(A) the term ‘‘benefit computation year’’ has
the meaning provided in section 215(b)(2)(B)(i)
of the Social Security Act;
(B) the term ‘‘average total wages of all
workers’’, for a year, means the average of the
total wages, as defined and computed under
section 215(b)(3)(A)(ii)(I) of the Social Security
Act for such year; and
(C) the term ‘‘service’’ does not include military service.
(c) An amount under this section shall, for
purposes of section 8467, be treated in the same
way as an amount computed under section 8415.
(Added Pub. L. 99–335, title I, § 101(a), June 6,
1986, 100 Stat. 533; amended Pub. L. 101–194, title
V, § 506(b)(10), Nov. 30, 1989, 103 Stat. 1759; Pub. L.
102–378, § 2(65), Oct. 2, 1992, 106 Stat. 1354; Pub. L.
107–296, title XIII, § 1321(a)(5)(B), Nov. 25, 2002, 116
Stat. 2297.)
REFERENCES IN TEXT
The Social Security Act, referred to in subsecs.
(a)(3)(B) and (b)(2), (4)(A), (B), is act Aug. 14, 1935, ch.
531, 49 Stat. 620, as amended. Title II of the Social Security Act is classified generally to subchapter II (§ 401 et
seq.) of chapter 7 of Title 42, The Public Health and
Welfare. Sections 202, 203, 214, and 215 of the Social Security Act are classified to sections 402, 403, 414, and
415, respectively, of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42
and Tables.
AMENDMENTS
2002—Subsec. (a)(2). Pub. L. 107–296, which directed
amendment of par. (2) by striking ‘‘, except that an individual entitled to an annuity under section 8414(a) for
failure to be recertified as a senior executive shall be
entitled to an annuity supplement without regard to
such applicable retirement age’’, was executed by striking out ‘‘, except that an individual entitled to an annuity under section 8414(a) for failure to be recertified
as a senior executive shall be entitled to an annuity
supplement without regard to such applicable minimum retirement age’’ before period at end, to reflect
the probable intent of Congress.
1992—Subsec. (a)(2). Pub. L. 102–378 inserted period at
end.
1989—Subsec. (a)(2). Pub. L. 101–194 substituted
‘‘, except that an individual entitled to an annuity
under section 8414(a) for failure to be recertified as a
senior executive shall be entitled to an annuity supplement without regard to such applicable minimum retirement age’’ for period at end.
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Pub. L. 107–296 effective 60 days after
Nov. 25, 2002, see section 4 of Pub. L. 107–296, set out as
an Effective Date note under section 101 of Title 6, Domestic Security.
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101–194 effective Jan. 1, 1991,
see section 506(d) of Pub. L. 101–194, set out as a note
under section 3151 of this title.

§ 8421a. Reductions on account of earnings from
work performed while entitled to an annuity
supplement
(a) The amount of the annuity supplement to
which an individual is entitled under section

Page 848

8421 for any month (determined without regard
to subsection (c) of such section) shall be reduced by the amount of any excess earnings of
such individual which are required to be charged
to such supplement for such month, as determined under subsection (b).
(b) The amount of an individual’s excess earnings shall be charged to months as follows:
(1)(A) There shall be charged to each month
of a year under subsection (a) an amount equal
to the individual’s excess earnings (as determined under paragraph (2) with respect to
such year), divided by the number of the individual’s supplement entitlement months for
such year (as determined under paragraph (3)).
(B) Notwithstanding subparagraph (A), the
amount charged to a month under subsection
(a) may not exceed the amount of the annuity
supplement to which the individual is entitled
under section 8421 for such month (determined
without regard to subsection (c) of such section).
(2) The excess earnings based on which reductions under subsection (a) shall be made
with respect to an individual in a year—
(A) shall be equal to 50 percent of so much
of such individual’s earnings for the immediately preceding year as exceeds the applicable exempt amount for such preceding
year; but
(B) may not exceed the total amount of
the annuity supplement payments to which
such individual was entitled for such preceding year under section 8421 (determined
without regard to subsection (c) of such section, and without regard to this section).
(3)(A) Subject to subparagraph (B), the number of an individual’s supplement entitlement
months for a year shall be 12.
(B) The number determined under subparagraph (A) shall be reduced so as not to include
any month after which such individual ceases
to be entitled to an annuity supplement by
reason of section 8421(a)(3)(B), relating to cessation of entitlement upon attaining age 62.
(4)(A) For purposes of this section, and except as provided in subparagraph (B), the
‘‘earnings’’ and the ‘‘applicable exempt
amount’’ of an individual shall be determined
in a manner consistent with applicable provisions of section 203 of the Social Security Act.
(B) For purposes of this section—
(i) in determining the excess earnings of
any individual, only earnings attributable to
periods during which such individual was entitled to an annuity supplement under section 8421 shall be considered; and
(ii) any earnings attributable to a period
before attaining the applicable retirement
age under section 8412(h) shall not be considered in determining the excess earnings of
an individual who retires under section
8412(d) or (e), or section 8414(c).
(5) Notwithstanding paragraphs (1) through
(4), the reduction required by subsection (a)
shall be effective with respect to the annuity
supplement payable for each month in the 12month period beginning on the first day of the
seventh month after the end of the calendar
year in which the excess earnings were earned.

Page 849

TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES

(c) The Office shall prescribe regulations under
which this section shall be applied in the case of
a reemployed annuitant.
(Added Pub. L. 99–335, title I, § 101(a), June 6,
1986, 100 Stat. 535; amended Pub. L. 99–556, title
I, § 121, Oct. 27, 1986, 100 Stat. 3134; Pub. L.
106–394, § 3(a), Oct. 30, 2000, 114 Stat. 1630.)
REFERENCES IN TEXT
Section 203 of the Social Security Act, referred to in
subsec. (b)(4)(A), is classified to section 403 of Title 42,
The Public Health and Welfare.

Law enforcement
officer, firefighter, member of the Capitol Police,
member of the
Supreme Court
Police, or air
traffic controller.
Nuclear materials courier.

EFFECTIVE DATE OF 2000 AMENDMENT
Pub. L. 106–394, § 3(b), Oct. 30, 2000, 114 Stat. 1630, provided that: ‘‘The amendment made by subsection (a)
[amending this section] shall apply with respect to reductions required to be made in calendar years beginning after the date of the enactment of this Act [Oct.
30, 2000].’’

§ 8422. Deductions from pay; contributions for
other service
(a)(1) The employing agency shall deduct and
withhold from basic pay of each employee and
Member a percentage of basic pay determined in
accordance with paragraph (2).
(2) The percentage to be deducted and withheld from basic pay for any pay period shall be
equal to—
(A) the applicable percentage under paragraph (3), minus
(B) the percentage then in effect under section 3101(a) of the Internal Revenue Code of
1986 (relating to rate of tax for old-age, survivors, and disability insurance).
(3) The applicable percentage under this paragraph for civilian service shall be as follows:

7.25 ...........
7.4 .............

Congressional
employee.

7 ...............
7.5 .............
7.75 ...........
7.9 .............

Member .............

7.5 .............
7.5 .............
7.75 ...........
7.9 .............
8 ...............

January 1, 1987, to December
1998.
January 1, 1999, to December
1999.
January 1, 2000, to December
2000.
After December 31, 2000.
January 1, 1987, to December
1998.
January 1, 1999, to December
1999.
January 1, 2000, to December
2000.
After December 31, 2000.
January 1, 1987, to December
1998.
January 1, 1999, to December
1999.
January 1, 2000, to December
2000.
January 1, 2001, to December
2002.

7.9 .............
7.5 .............

7 ...............

7.75 ...........
7.9 .............

2000—Subsec. (b)(5). Pub. L. 106–394 added par. (5).
1986—Subsecs. (c), (d). Pub. L. 99–556 redesignated
subsec. (d) as (c) and struck out former subsec. (c)
which read as follows: ‘‘If, after an individual ceases to
be entitled to an annuity supplement under section 8421
by reason of subsection (a)(3)(B) of such section, any
portion of the individual’s excess earnings remains outstanding, an amount not to exceed 25 percent of the
amount otherwise payable to such individual under this
chapter for each month shall be deducted from such
monthly payment until the full amount of that outstanding portion has been accounted for. To the extent
practicable, reductions under this subsection shall be
made by a level percentage.’’

7 ...............

7.75 ...........

7.5 .............

AMENDMENTS

Employee ...........

7.5 .............
7.5 .............

31,
31,
31,

31,
31,
31,

31,
31,
31,

Customs and border protection
officer.

7.5 .............
7.5 .............

§ 8422

After December 31, 2002.
January 1, 1987, to December 31,
1998.
January 1, 1999, to December 31,
1999.
January 1, 2000, to December 31,
2000.
After December 31, 2000.

January 1, 1987, to October 16,
1998.
October 17, 1998, to December
31, 1998.
January 1, 1999, to December 31,
1999.
January 1, 2000, to December 31,
2000.
After December 31, 2000.
After June 29, 2008.

(b) Each employee or Member is deemed to
consent and agree to the deductions under subsection (a). Notwithstanding any law or regulation affecting the pay of an employee or Member, payment less such deductions is a full and
complete discharge and acquittance of all
claims and demands for regular services during
the period covered by the payment, except the
right to any benefits under this subchapter, or
under subchapter IV or V of this chapter, based
on the service of the employee or Member.
(c) The amounts deducted and withheld under
this section shall be deposited in the Treasury of
the United States to the credit of the Fund
under such procedures as the Secretary of the
Treasury may prescribe.
(d)(1) Under such regulations as the Office may
prescribe, amounts deducted under subsection
(a) shall be entered on individual retirement
records.
(2) Deposit may not be required for days of unused sick leave credited under section 8415(k).1
(e)(1)(A) Except as provided in subparagraph
(B), and subject to paragraph (6), each employee
or Member who has performed military service
before the date of the separation on which the
entitlement to any annuity under this subchapter, or subchapter V of this chapter, is
based may pay, in accordance with such regulations as the Office shall issue, to the agency by
which the employee is employed, or, in the case
of a Member or a Congressional employee, to the
Secretary of the Senate or the Chief Administrative Officer of the House of Representatives,
as appropriate, an amount equal to 3 percent of
the amount of the basic pay paid under section
204 of title 37 to the employee or Member for
each period of military service after December
1956. The amount of such payments shall be
based on such evidence of basic pay for military
service as the employee or Member may provide,
or if the Office determines sufficient evidence
has not been so provided to adequately determine basic pay for military service, such payment shall be based on estimates of such basic
pay provided to the Office under paragraph (4).
(B) In any case where military service interrupts creditable civilian service under this subchapter and reemployment pursuant to chapter
43 of title 38 occurs on or after August 1, 1990,
the deposit payable under this paragraph may

31,
1 See

References in Text note below.

Office of Personnel Management
Year of Birth
1937 and before ..................................................
1938 .....................................................................
1939 .....................................................................
1940 .....................................................................
1941 .....................................................................
1942 .....................................................................
1943–54 ...............................................................
1955 .....................................................................
1956 .....................................................................
1957 .....................................................................
1958 .....................................................................
1959 .....................................................................
1960 and later .....................................................

§ 842.602

Reduction
(percent)

§ 842.505 Reduction in annuity supplement because of excess earnings.

20
205⁄6
212⁄3
221⁄2
231⁄3
241⁄6
25
255⁄6
262⁄3
271⁄2
281⁄3
291⁄6
30

(a)(1) Except as provided in paragraphs (a)(2) and (b) of this section, the
annuity supplement payable under
§ 842.504 is reduced by excess earnings
in the test year, divided by twelve.
(2) Any annuity supplement payable
during the year in which an individual
loses entitlement to the annuity supplement by reason of § 842.503(c) is reduced by excess earnings in the test
year divided by the number of months
for which the annuity supplement is
payable.
(b) Any reduction in the annuity supplement during a month because of excess earnings may not exceed the
amount of annuity supplement payable
during that month.
(c) Earnings and estimated earnings
for each test year will be furnished by
retirees in a form prescribed by OPM.
(d) Failure to furnish earnings and
estimated earnings in the form or at
the times prescribed by OPM is cause
to suspend payment of the supplement
until the annuitant establishes to the
satisfaction of OPM that he/she continues to be eligible for the supplement.
(e) The reductions described in paragraphs (a) and (b) of this section are
not subject to the due process procedures described in 5 U.S.C. 8461(e).

rmajette on PRODPC74 with CFR

(2) In computing the primary insurance amount—
(i) The number of elapsed years used
to compute the number of benefit computation years does not include the
years beginning with the year in which
the annuity supplement commences;
(ii) For an employee or Member who
retires under §§ 842.205, 842.206, 842.209,
or 842.211 before reaching the minimum
retirement age, wages in calendar
years beginning after the date of separation on which the retirement is
based, are deemed to be zero.
(iii) Only basic pay for full calendar
years of service creditable under FERS
is taken into account in computing the
retiree’s wages for a benefit computation year;
(iv) For a benefit computation year
after age 21 during which the retiree
did not perform a full calendar year of
service creditable under FERS the retiree’s wages are deemed to equal the
product of—
(A) The National Average Wage Index
(as determined by the Commissioner of
the Social Security Administration)
corresponding to that year, multiplied
by
(B) A fraction—
(1) The numerator of which is the retiree’s basic pay for his or her first full
year of service creditable under FERS;
and
(2) The denominator of which is the
National Average Wage Index (as determined by the Commissioner of the Social Security Administration) corresponding to the retiree’s first full
year of service creditable under FERS.
[52 FR 4479, Feb. 11, 1987, as amended at 69
FR 69806, Dec. 1, 2004]

Subpart F—Survivor Elections
SOURCE: 52 FR 2061, Jan. 16, 1987, unless
otherwise noted.

§ 842.601

Purpose.

This subpart explains the survivor
annuity elections available under
FERS for retirees, and retiring employees and Members, and the actions that
they must take to provide these survivor annuities.
§ 842.602 Definitions.
In this subpart—
Current spouse means a living person
who is married to the employee, Member, or retiree at the time of the employee’s, Member’s, or retiree’s death.
Current spouse annuity means a recurring benefit under FERS that is payable (after the employee’s, Member’s or

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