5 U.S.C. § 8415 — Computation of basic annuity

(a) Unless this section says otherwise, an employee’s annuity is 1 percent of average pay^* multiplied by total service^*. (b) A Member’s annuity uses that formula, but after at least 5 years as a Member^* or congressional employee^*, the part based on those types of service, up to 20 years total, uses 1.7 percent of average pay per year. (c) The same 1.7-percent rule applies to a congressional employee after at least 5 years as a congressional employee or Member, up to 20 years. (d) A revised or further revised annuity employee^* described in (b) or (c) is computed like an employee under (a). (e) For retirement under section 8412(d)(1) or (e), or section 8425(a), (b), or (c), the annuity is 1.7 percent of average pay for the first 20 years, plus 1 percent for service over 20 years. (f) An air-traffic controller’s annuity under section 8412(a) uses (a), but at least 5 years in any combination as an air-traffic controller^*, first-level supervisor, or second-level supervisor use 1.7 percent per year.

(g)(1) For part-time service, average pay uses the full-time annual basic-pay rate for the position. The resulting benefit is multiplied by a fraction: actual prorated service divided by service that would count if all work had been full time. (2) Temporary or intermittent work is not part-time work for this subsection.

(h)(1) An annuity under section 8412(g) or 8413(b) uses the applicable formula but is reduced by five-twelfths of 1 percent for each full month its start precedes the person’s 62nd birthday. (2) The reduction does not apply if the person would meet the age and service requirements for section 8412(a), (b), (d)(1)(B), (e)(2), or (f)(2), treating the person as having the age specified in (B) on separation. That age is the person’s age when the annuity starts.

(i)(1) The percentage in (a) is 1.1 percent for an employee who (2)(A) retires with a section 8412 annuity and (B) is at least 62 and has at least 20 years at separation. It does not apply to a congressional employee, dual-status military technician, law-enforcement officer, Supreme Court^* Police member, firefighter^*, nuclear materials courier, air-traffic controller, or customs and border protection officer^*.

(j) A Member who served in an executive-branch position at reduced basic pay^* to avoid the constitutional appointment impediment in article I, section 6, clause 2, has the annuity computed as though the unreduced rate applied, if the required section 8422(g) deposit is made.

(k)(1) “Physicians comparability allowance” means an amount described in section 8331(3)(H). This section does not otherwise define that quoted term. (2) It is not basic pay for this section unless, before separation, the person completed at least 15 years as a Government physician^*, regardless of when performed. (3) If that condition is met, allowance amounts attributable to post-enactment physician service count as basic pay only by the allowable percentage: under 2 years, 0 percent; at least 2 but under 4, 25 percent; at least 4 but under 6, 50 percent; at least 6 but under 8, 75 percent; and at least 8, 100 percent. (4) Regardless of these rules, 100 percent of post-enactment allowance amounts counts for an annuity under section 8452 and a survivor^* annuity under subchapter IV based on a person who dies before separation.

(l) An employee’s annuity with service credited under section 8411(b)(6) must be reduced enough to make its present value actuarially equal to the present value of an annuity calculated without that service and assuming separation on the actual separation date. The Office^* must set the reduction by regulation.

(m)(1) For a registered nurse retiring immediately from the Veterans Health Administration, or dying in that position with an annuity-eligible survivor, total service includes unused sick-leave days under a formal system^*. The days do not determine average pay or eligibility. (2)(A) For other employees who retire immediately or die with an annuity-eligible survivor, total service includes the applicable percentage of unpaid unused sick-leave days under a formal system, including leave held when an employee was excepted from subchapter I of chapter 63 under section 6301(2)(x) through (xiii). The days do not determine average pay or eligibility. (B) The applicable percentage is 50 percent for death or separation from enactment through December 31, 2013, and 100 percent after December 31, 2013.

(n) If an annuity calculation includes at least 2 months total credit under section 8411(d) for periods receiving subchapter I of chapter 81 benefits, the percentage otherwise used for that credited period increases by 1 percentage point.