5 U.S.C. § 8455 — Recovery; restoration of earning capacity
submitted 40 years ago by Pub. L. 99-335 to r/title-5-GOVERNMENT-ORGANIZATION-AND-EMPLOYEES · 413 words · no verdicts yet
If a disability annuitant recovers, or earns close to their old pay before turning 60, their annuity stops. It stops on reemployment or one year after recovery is found, or 180 days after a year of restored earnings. If the person is not reemployed, they can switch to a regular annuity, or get the disability annuity back if their income drops again.
(a) An annuitant* who recovers from their disability before turning 60 has their annuity payments stop — either when they are reemployed by the government*, or one year after the Office* decides they recovered, whichever comes first. Separately, if before turning 60 an annuitant's earning ability is restored to something fairly comparable to their old job's current pay, their annuity stops 180 days after the end of the calendar year that happened in. Earning capacity counts as "restored" if, in any calendar year, the annuitant's wage or self-employment income is at least 80% of the current pay rate for the position they held before retiring.
(b) If an annuitant whose annuity ended under (a) is not reemployed in a job covered by this chapter, they are treated — except for service* credit purposes — as if they were involuntarily separated from service, and become entitled to a regular annuity under subchapter II starting from the date their disability annuity ended. If an annuitant whose annuity ended under (a)(2) (the restored-earning-capacity rule) is not reemployed in a covered job and still has not recovered from the disability, their disability annuity is restored at the applicable section 8452 rate, starting the first of the year after any year their income drops below 80% of their old position's current pay. If an annuitant whose annuity ended because of a medical finding of recovery is not reemployed in a covered job, their annuity is restored at the applicable section 8452 rate from the date the Office decides the disability has come back. These last two restoration rules do not apply to an annuitant receiving a subchapter II annuity from the Fund*.
If an annuitant* receiving a disability retirement annuity from the Fund* recovers from the disability before becoming 60 years of age, payment of the annuity terminates on reemployment by the Government* or 1 year after the date on which the Office* determines that the annuitant has recovered, whichever is earlier.
If an annuitant receiving a disability annuity from the Fund, before becoming 60 years of age, is restored to an earning capacity fairly comparable to the current rate of pay of the position occupied at the time of retirement, payment of the annuity terminates 180 days after the end of the calendar year in which earning capacity is so restored. Earning capacity is deemed restored if in any calendar year the income of the annuitant from wages or self-employment or both equals at least 80 percent of the current rate of pay of the position occupied immediately before retirement.
If an annuitant whose annuity is terminated under subsection (a) is not reemployed in a position in which that individual is subject to this chapter, such individual is deemed, except for service* credit, to have been involuntarily separated from the service for the purpose of subchapter II of this chapter as of the date of termination of the disability annuity, and after that termination is entitled to annuity under the applicable provisions of such subchapter.
If an annuitant whose annuity is terminated under subsection (a)(2)—
is not reemployed in a position subject to this chapter; and
has not recovered from the disability for which that individual was retired;
the annuity of such individual shall be restored at the applicable rate under section 8452 effective the first of the year following any calendar year in which such individual’s income from wages or self-employment or both is less than 80 percent of the current rate of pay of the position occupied immediately before retirement.
If an annuitant whose annuity is terminated because of a medical finding that the individual has recovered from disability is not reemployed in a position in which such individual is subject to this chapter, the annuity of such individual shall be restored at the applicable rate under section 8452 effective from the date on which the Office determines that there has been a recurrence of the disability.
Paragraphs (2) and (3) shall not apply in the case of an annuitant receiving an annuity from the Fund under subchapter II of this chapter.
Source credit: (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 568.)
- 1986Enacted · Pub. L. 99-335 · 100 Stat. 568
A history note hasn’t been published yet. The record shows enactment by Pub. L. 99-335 on 1986-06-06.
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