5 U.S.C. § 8422 — Deductions from pay; contributions for other service; deposits

(a) (1) The employing agency must deduct and withhold from each employee's and Member's basic pay^* the percentage determined under paragraph (2).

(2) For any pay period, the percentage withheld equals the applicable percentage under paragraph (3), minus the percentage then in effect under section 3101(a) of the Internal Revenue Code of 1986 for old-age, survivors, and disability insurance tax.

(3) (A) For civilian service^* by an employee^* or Member^* who is not a revised annuity employee^* or further revised annuity employee^*, the applicable percentages are:

Employee: 7% from January 1, 1987, through December 31, 1998; 7.25% from January 1 through December 31, 1999; 7.4% from January 1 through December 31, 2000; and 7% after December 31, 2000.

Congressional employee: 7.5% from January 1, 1987, through December 31, 1998; 7.75% from January 1 through December 31, 1999; 7.9% from January 1 through December 31, 2000; and 7.5% after December 31, 2000.

Member: 7.5% from January 1, 1987, through December 31, 1998; 7.75% from January 1 through December 31, 1999; 7.9% from January 1 through December 31, 2000; 8% from January 1, 2001, through December 31, 2002; and 7.5% after December 31, 2002.

Law enforcement officer^*, firefighter^*, member of the Capitol Police, member of the Supreme Court^* Police, or air traffic controller^*: 7.5% from January 1, 1987, through December 31, 1998; 7.75% from January 1 through December 31, 1999; 7.9% from January 1 through December 31, 2000; and 7.5% after December 31, 2000.

Nuclear materials courier: 7% from January 1, 1987, through October 16, 1998; 7.5% from October 17 through December 31, 1998; 7.75% from January 1 through December 31, 1999; 7.9% from January 1 through December 31, 2000; and 7.5% after December 31, 2000.

Customs and border protection officer^*: 7.5% after June 29, 2008.

(B) For civilian service by a revised annuity employee: an employee, congressional employee, or Member pays 9.3% after December 31, 2012; and a law enforcement officer, firefighter, Capitol Police member, Supreme Court Police member, air traffic controller^*, nuclear materials courier, or customs and border protection officer pays 9.8% after December 31, 2012.

(C) For civilian service by a further revised annuity employee: an employee, congressional employee, or Member pays 10.6% after December 31, 2013; and a law enforcement officer, firefighter, Capitol Police member, Supreme Court Police member, air traffic controller, nuclear materials courier, or customs and border protection officer pays 11.1% after December 31, 2013.

(b) Each employee and Member is considered to consent and agree to the deductions under subsection (a). Regardless of any law or regulation affecting pay, payment after those deductions fully settles all claims and demands for regular services during the payment period, except claims to benefits under this subchapter or subchapter IV or V of this chapter based on the employee's or Member's service.

(c) Amounts deducted and withheld under this section must be deposited in the Treasury of the United States and credited to the Fund^* under procedures set by the Secretary of the Treasury. Deposits made by an employee, Member, or survivor^* must also be credited to the Fund.

(d) (1) Under regulations issued by the Office^*, amounts deducted under subsection (a) must be entered on individual retirement records.

(2) A deposit may not be required for days of unused sick leave credited under section 8415(m)(1) or (2).

(e) (1) (A) Except as provided in subparagraph (B) and subject to paragraph (6), an employee or Member who performed military service^* before the separation on which an annuity under this subchapter or subchapter V of this chapter is based may pay a deposit. The employee pays the employing agency; a Member or congressional employee pays the Secretary of the Senate or the Chief Administrative Officer of the House, as appropriate. The deposit equals 3% of the basic pay paid under section 204 of title 37 for each period of military service after December 1956. The payment is based on evidence of military basic pay provided by the employee or Member. If the Office decides that enough evidence was not provided to determine that pay adequately, the payment is based on estimates supplied under paragraph (4).

(B) If military service interrupts creditable civilian service and reemployment under chapter 43 of title 38 occurs on or after August 1, 1990, the deposit cannot exceed what would have been deducted under subsection (a)(1) from civilian basic pay if the employee had not performed the military service.

(2) A deposit made more than two years after the later of January 1, 1987, or the date the person making the deposit first becomes an employee or Member after the period of military service for which the deposit is due must include interest. Interest is calculated and compounded annually beginning when that two-year period expires. The interest rate for each year is the rate applicable under section 8334(e) for that year.

(3) An agency, the Secretary of the Senate, or the Chief Administrative Officer of the House that receives a payment under this subsection must immediately send it to the Office for deposit in the Treasury and credit to the Fund.

(4) The Secretary of Defense, Transportation, Commerce, or Health and Human Services, as appropriate, must give the Office information it decides is needed to administer this subsection.

(5) For survivor annuities, a survivor of an employee or Member may also make a deposit authorized by this subsection.

(6) For military service during January 1 through December 31, 1999, the percentage under paragraph (1) is 3.25%; for military service during January 1 through December 31, 2000, it is 3.4%.

(7) (A) If an employing agency makes an administrative error in calculating or processing a deposit under paragraph (1) for an employee, Member, or annuitant^*, the agency may pay the additional interest assessed because of the error on that person's behalf.

(B) For subparagraph (A), the Secretary of the Senate or the Chief Administrative Officer of the House, as appropriate, is considered the employing agency of a Member or congressional employee.

(C) The Director^* of the Office of Personnel Management must issue regulations needed to carry out this paragraph.

(f) (1) An employee or Member who, before the separation on which an annuity under this subchapter or subchapter V is based, performed qualifying volunteer service may pay a deposit under Office of Personnel Management regulations. Qualifying service is service as a volunteer or volunteer leader under part A of title VIII of the Economic Opportunity Act of 1964; full-time volunteer service enrolled in a program lasting at least one year under part A, B, 1, or C of title I of the Domestic Volunteer Service Act of 1973; or volunteer or volunteer-leader service under the Peace Corps Act. The deposit equals 3% of the readjustment allowance under title VIII of the Economic Opportunity Service Act of 1964 or section 5(c) or 6(1) of the Peace Corps Act, or the stipend under part A, B, 1, or C of title I of the Domestic Volunteer Service Act of 1973, for each period of that service. This paragraph is subject to paragraph (4).

(2) A deposit made more than two years after the later of October 1, 1993, or the date the person making the deposit first becomes an employee or Member must include interest. Interest is calculated and compounded annually beginning when that two-year period expires. The interest rate for each year is the rate applicable under section 8334(e) for that year.

(3) The Director of the Peace Corps and the Chief Executive Officer of the Corporation for National and Community Service must give the Office of Personnel Management information it decides is needed to administer this subsection.

(4) For volunteer service during January 1 through December 31, 1999, the percentage under paragraph (1) is 3.25%; for volunteer service during January 1 through December 31, 2000, it is 3.4%.

(5) (A) If an employing agency makes an administrative error that causes additional interest to accrue on a deposit, the agency may pay that additional interest for the employee, Member, or annuitant.

(B) If the Office of Personnel Management makes such an error, it may pay that additional interest for the employee, Member, or annuitant.

(C) For subparagraph (A), the Secretary of the Senate or the Chief Administrative Officer of the House, as appropriate, is considered the employing agency of a Member or congressional employee.

(D) The Director of the Office of Personnel Management must issue regulations needed to carry out this paragraph.

(g) A Member who served in an executive-branch position at a reduced basic-pay rate to remove the appointment impediment in article I, section 6, clause 2 of the Constitution, or that Member's survivor, may deposit to the Fund the difference between the amount deducted from the Member's basic pay during that service and the amount that would have been deducted if the basic-pay rate that otherwise would have applied had applied. The deposit also includes interest calculated under section 8334(e).

(h) No deposit may be made for service credited under section 8411(b)(6).

(i) (1) An employee or Member who received a refund of retirement deductions under this or another Government^* employee retirement system^* for service that may be credited under this chapter may deposit the refunded amount, with interest. The service cannot be credited until the deposit is made. (2) Interest is calculated under section 8334(e)(2) and (3) and Office regulations. The option in the third sentence of section 8334(e)(2) to pay in installments also applies. (3) For survivor annuities, a survivor of an employee or Member may also make a deposit authorized by this subsection.