50 U.S.C. § 2031 — Computation of annuities
submitted 34 years ago by Pub. L. 88-643 to r/title-50-WAR-AND-NATIONAL-DEFENSE · 4,400 words · no verdicts yet
This section explains how to calculate a participant’s annuity and survivor annuities. It sets rules for spouses, former spouses, children, other people with an “insurable interest,” later marriages and divorces, offsets, and information used to determine benefits.
(a) Annuity of participant
(1) Computation of annuity. The participant’s annuity equals:
(A) the participant’s “high-3 average pay” described in paragraph (4); multiplied by
(B) the participant’s service credit, in years, multiplied by 2 percent. No more than 35 years of service credit is used. The service credit is determined under sections 2081 and 2082 of this title.
(2) Credit for unused sick leave. If a participant retires with an immediate annuity, except under section 2051 of this title, or dies leaving a survivor who is entitled to an annuity, the participant’s total service includes the days of unused sick leave credited to the participant. This sick leave is included even if it makes the service exceed the 35-year limit in paragraph (1). Unused sick-leave days may not be used to calculate average basic pay or decide whether a person qualifies for an annuity under this subchapter. The participant does not have to make a deposit for sick-leave days credited under this paragraph.
(3) Crediting of part-time service.
(A) In general. If a participant performed part-time service after April 6, 1986, the participant’s annuity is the sum of the amounts under subparagraphs (B) and (C).
(B) Computation of pre-April 7, 1986, annuity. For service before April 7, 1986, calculate the portion of the annuity under paragraph (1) using the participant’s service before that date, increased by the unused sick leave credited at retirement. Use the participant’s “high-3 average pay,” calculated from the annual basic-pay rate that would have been payable for full-time service in that position.
(C) Computation of post-April 6, 1986, annuity. For service after April 6, 1986, calculate the portion as follows:
(i) First calculate the amount under paragraph (1), using the participant’s service after that date and the participant’s “high-3 average pay,” based on the annual basic-pay rate that would have been payable for full-time service.
(ii) Multiply that amount by a ratio. The top of the ratio is the participant’s actual service after April 6, 1986. Determine that actual service by prorating the participant’s total service after that date to reflect the part-time service. The bottom of the ratio is the service after that date that would have been creditable if all of the service had been full-time.
(D) Temporary or intermittent employment. Temporary or intermittent employment does not count as part-time service for this paragraph.
(4) “High-3 average pay” defined. For this subsection, a participant’s “high-3 average pay” is the participant’s average basic pay for the highest 3 consecutive years of service for which full contributions were made to the fund.
(5) Computation of service. When calculating the total period of service used for an annuity, do not count a fraction of a month.
(b) Spouse or former spouse survivor annuity
(1) Reduction in participant’s annuity to provide spouse or former spouse survivor annuity.
(A) General rule. Unless a written election under subparagraph (B) or (C) says otherwise, a participant or former participant who is married at retirement, or who has a former spouse who has not remarried before age 55, must receive a reduced annuity and provide a survivor annuity for the spouse under this subsection, the former spouse under section 2032(b) of this title, or both, as applicable.
(B) Joint election to waive or reduce a spouse survivor annuity. At retirement, a married participant or former participant and the participant’s spouse may jointly elect in writing to waive the spouse’s survivor annuity or reduce it by naming only part of the participant’s annuity as its base. If the marriage later ends and the spouse becomes a former spouse, the base used to calculate that former spouse’s annuity under section 2032(b) of this title may not be more than the portion named in this election.
(C) Joint election by participant and former spouse. If a participant or former participant has a former spouse, they may jointly elect through a “spousal agreement” under section 2094(b) of this title to waive, reduce, or increase a survivor annuity for that former spouse under section 2032(b) of this title. The election must be made either before the 2-year period after the divorce or annulment becomes final ends, or when the participant retires, whichever is later.
(D) Election without spouse or former spouse. The Director* may issue regulations allowing a participant or former participant to make an election under (B) or (C) without the spouse or former spouse. The participant must satisfy the Director that the participant does not know where that person is and has taken every reasonable step to find out.
(2) Amount of reduction. A participant or former participant who provides a survivor annuity under this section or section 2032(b) of this title has the applicable annuity reduced as follows: 2.5 percent of the first $3,600, plus 10 percent of any amount above $3,600. Do not include any part of the annuity that was not named or committed as the base for a survivor annuity. Calculate this reduction before any reduction under section 2032(a)(5) of this title.
(3) Amount of surviving spouse annuity.
(A) In general. If a retired participant receiving a reduced annuity under this subsection dies and leaves a spouse, the fund pays the surviving spouse a survivor annuity. The amount is 55 percent of either the full annuity calculated under subsection (a), or the smaller amount elected as the survivor-annuity base under paragraph (1)(B).
(B) Limit. If a surviving former spouse also qualifies for an annuity under section 2032(b) of this title, the surviving spouse’s annuity may not exceed 55 percent of the part of the survivor-annuity base that remains available under section 2032(b)(4)(B) of this title.
(C) Start and end. The fund starts paying the surviving spouse the day after the retired participant dies. Payments end on the last day of the month before the surviving spouse dies or remarries before age 55. If payments ended because of remarriage, they are restored at the same rate when that remarriage ends because of death, annulment, or divorce, but only if any lump sum paid when payments ended is returned to the fund.
(c) 18-month open period after retirement to provide spouse coverage
(1) Survivor-annuity elections.
(A) Election when spouse coverage was waived at retirement. A participant or former participant who retires after March 31, 1992, may make this election if the participant was married at retirement and then waived the spouse’s survivor annuity under subsection (b). During the 18 months beginning on the retirement date, the participant may elect to reduce the participant’s annuity, or a portion named by the participant, under subsection (b) to provide a survivor annuity for the spouse.
(B) Election when a reduced spouse annuity was chosen. A participant or former participant who retires after March 31, 1992, may make this election if the participant was married at retirement and named part of the annuity as the survivor-annuity base under subsection (b). During the 18 months beginning on the retirement date, the participant may elect to use a larger part of the annuity as that base.
(2) Deposit required.
(A) Requirement. An election under paragraph (1) is ineffective unless the amount in subparagraph (B) is deposited into the fund before the 18-month period ends.
(B) Amount of deposit. The deposit equals the sum of:
(i) Additional cost to system. The additional cost to the system caused by providing the survivor annuity under subsection (b), including both (I) the difference, from the start of the participant’s annuity through the election date, between what was paid and what would have been paid if the election had been made when the participant applied for the annuity, and (II) the costs of allowing the later election.
(ii) Interest. Interest on the additional cost in clause (i), using the interest rate specified or determined under section 8334(e) of title 5 for the calendar year in which the deposit amount is determined.
(3) Voiding of earlier elections. An election under this subsection prospectively voids any earlier election for the participant under subsection (b).
(4) Annuity reductions. An annuity reduced because of an election under this subsection is reduced by the same percentage reductions that applied when the participant or former participant retired.
(5) Resulting rights and obligations. The rights and obligations from electing a reduced annuity under this subsection are the same as if the participant had made that election at retirement.
(d) Annuities for surviving children
(1) Participants dying before April 1, 1992. If a retired participant died before April 1, 1992, and left one or more children, the fund pays an annuity to or for each child. If the participant also left a spouse, use paragraph (3)(A). If not, use paragraph (3)(B).
(2) Participants dying on or after April 1, 1992. If a retired participant dies on or after April 1, 1992, and leaves one or more children, pay each child an annuity under paragraph (3)(A) if a surviving spouse or former spouse is the natural or adoptive parent of a surviving child. Otherwise, pay under paragraph (3)(B).
(3) Amount.
(A) For a child in paragraph (1)(A) or (2)(A), or the corresponding category in section 2052(c), the annual annuity is the smallest of: (i) 60 percent of the participant’s “high-3 average pay” under subsection (a)(4), divided by the number of children; (ii) $900, adjusted under section 2131; and (iii) $2,700, adjusted under section 2131, divided by the number of children.
(B) For a child in paragraph (1)(B) or (2)(B), or the corresponding category in section 2052(c), the annual annuity is the smallest of: (i) 75 percent of the participant’s “high-3 average pay” under subsection (a)(4), divided by the number of children; (ii) $1,080, adjusted under section 2131; and (iii) $3,240, adjusted under section 2131, divided by the number of children.
(4) Recalculation of child annuities.
(A) For an annuity under paragraph (1), if the surviving spouse dies or a child’s annuity ends, recalculate the annuities of the remaining children as if that spouse or child had not survived the retired participant.
(B) For an annuity under paragraph (2), if the surviving spouse or former spouse dies or a child’s annuity ends, recalculate the remaining children’s annuities as if that person or child had not survived the retired participant. If a child who was not receiving an annuity starts or resumes one, recalculate the other children’s annuities from that date as if all then-eligible children were starting their annuities on that date.
(5) “Former spouse” defined. In this subsection, “former spouse” includes any former wife or husband of the retired participant, regardless of how long the marriage lasted or how much creditable service the participant completed.
(e) Start and end of child annuities
(1) Start. An annuity payable to a child under subsection (d) or section 2052(c) begins the day after the participant or retired participant dies. For an individual over 18 who is not a child under section 2002(b), it begins or resumes on the first day of the month when the individual later becomes or becomes again a student as described in section 2002(b). The annuity cannot begin until any paid lump sum is returned to the fund.
(2) End. The annuity ends on the last day of the month before the month when the recipient dies or no longer qualifies as a child under section 2002(b).
(f) Participants not married at retirement
(1) Designation of people with an “insurable interest.”
(A) Authority to designate. Subject to former spouses’ rights under subsection (b) and section 2032, an unmarried participant whom the Director finds to be in good health may, at retirement, elect a reduced annuity under (B) and name in writing an individual with an “insurable interest” in the participant to receive an annuity after the participant dies. The individual’s annuity is 55 percent of the participant’s reduced annuity.
(B) Reduction. Reduce the participant’s annuity by 10 percent of the annuity calculated under subsection (a), plus another 5 percent for each complete 5-year period by which the designated individual is younger than the participant. The total reduction may not exceed 40 percent.
(C) Start of survivor annuity. The designated individual’s annuity begins the day after the retired participant dies and ends on the last day of the month before the designated individual dies.
(D) Recalculation after designated individual dies. Beginning on the first day of the month after the designated individual dies, recalculate and pay the participant’s reduced annuity as if it had never been reduced.
(2) Survivor annuity after later marriage. An unmarried participant at retirement who later marries may irrevocably elect, in a signed writing received by the Director within 2 years after the marriage, to receive a reduced annuity under subsection (b). The election and reduction take effect on the first day of the month that begins 9 months after the marriage. The election prospectively voids an election under paragraph (1).
(g) Effect of divorce after retirement
(1) Recalculation after divorce. If an annuity was reduced under this section or a similar earlier law to provide a spouse’s survivor annuity, and the retired participant’s marriage to that spouse ends, recalculate and pay the annuity for each complete month when the retired participant is unmarried. The same applies after remarriage if no election under paragraph (2) is in effect. Recalculate as if the annuity had not been reduced, subject to any reduction needed for a survivor annuity under section 2032(b) or (c), or section 2036.
(2) Survivor annuity after later remarriage.
(A) In general. After remarriage, a retired participant may irrevocably elect, in a signed writing received by the Director within 2 years after the remarriage, to receive a reduced annuity for a new spouse if that spouse survives the participant. The reduction equals the reduction in effect immediately before the earlier marriage ended, unless adjusted under section 2032(b)(5) or elected under (B).
(B) Earlier annuity not fully reduced.
(i) Election. If the participant’s annuity was not reduced, or was not fully reduced, for a spouse’s or former spouse’s survivor annuity at retirement, the retired participant may make the election in the first sentence of (A) after marrying someone other than the retirement-time spouse. For a remarriage before August 14, 1991, the election may be made within 2 years after August 14, 1991.
(ii) Deposit.
(I) Within 2 years after remarriage, or by August 14, 1993, for a remarriage before August 14, 1991, the retired participant must deposit in the fund an amount set by the Director, as nearly as administratively feasible, equal to the reduction that would have applied since the annuity began, plus interest.
(II) The annual interest rate for each year is 6 percent.
(III) If the participant does not deposit the amount, the Director must collect it by offsetting the participant’s annuity, up to 25 percent of the net annuity otherwise payable. The participant is treated as consenting to the offset.
(IV) The surviving spouse may make the deposit.
(C) Effect. The election and reduction take effect on the first day of the month beginning 9 months after remarriage. The survivor annuity is treated in every respect as an annuity under subsection (b).
(h) Conditional “insurable interest” survivor annuity for participants married at retirement
(1) Designation. Subject to former spouses’ rights under subsection (b) and section 2032, a married participant whom the Director finds to be in good health may, at retirement, elect the reduction under subsection (f)(1)(B) and name in writing an individual with an “insurable interest” to receive an annuity after the participant dies. If the named individual is the participant’s spouse, the election works only if the spouse waives the spousal survivor-annuity right under this chapter. The annuity is 55 percent of the participant’s reduced annuity.
(2) Reduction. Reduce the participant’s annuity by 10 percent of the annuity calculated under subsection (a), plus 5 percent for each complete 5-year period by which the designated individual is younger. The total reduction may not exceed 40 percent.
(3) Start. The designated individual’s annuity begins the day after the retired participant dies and ends on the last day of the month before the designated individual dies.
(4) Recalculation. Beginning the first day of the month after the designated individual dies, recalculate and pay the participant’s annuity as if it had not been reduced.
(i) Coordination of annuities
(1) Surviving spouse. A surviving spouse whose annuity ended because of remarriage before age 55 cannot have it restored under subsection (b)(3)(C) unless the spouse elects it instead of any other survivor annuity available under this system or another retirement system for Government employees because of the remarriage.
(2) Former spouse. A surviving former spouse cannot receive, or have restored, a survivor annuity under section 2032 or 2034 unless the former spouse elects it instead of any other survivor annuity available under this or another retirement system for Government employees because of a marriage to someone other than the participant.
(3) Spouse married after retirement. A surviving spouse who married the participant after retirement may receive a fund survivor annuity only after electing it instead of any other survivor annuity available under this or another retirement system for Government employees because of a marriage to someone other than the retired participant.
(j) Supplemental survivor annuities
(1) Spouse of recalled annuitant. A married recalled annuitant who returns to retired status with a supplemental annuity under section 2111(b) must have that supplemental annuity reduced by 10 percent to provide a supplemental survivor annuity for the spouse, unless the annuitant and spouse jointly elect in writing against the reduction when the annuitant returns to retired status. The supplemental survivor annuity is 55 percent of the annuitant’s supplemental annuity.
(2) Regulations. The Director must issue regulations applying paragraph (1) and section 2111(b) to a case where an annuitant has a former spouse who was married to the annuitant at some time during recall service and qualifies for an annuity under section 2032(b).
(k) Offset for Social Security benefit. Despite any other provision of this subchapter, an annuity, including a disability annuity, payable under this subchapter to an individual described in sections 2021(d)(1) and 2151(c)(1), and any survivor annuity based on that individual’s service, must be reduced in a way consistent with section 8349 of title 5 and under conditions consistent with that section.
(l) Information from other agencies
(1) Other agencies. To ensure that information used to decide eligibility and calculate fund annuities is accurate, the Director may request:
(A) from the Secretary of Defense, information about retired or retainer pay under title 10;
(B) from the Secretary of Veterans Affairs, information about pensions or compensation under title 38;
(C) from the Secretary of Health and Human Services, information in Social Security Administration records; and
(D) from the Secretary of Labor, information about benefits paid under subchapter I of chapter 81 of title 5.
(2) Limit on requests. The Director may request only information the Director decides is necessary.
(3) Limit on use. After consulting the officials who provide the information, the Director must ensure that the information is used only for authorized purposes.
(m) Information about rights under the system. Each year, the Director must:
(1) tell each retired participant about the right to make elections under subsections (c), (f)(2), and (g); and
(2) to the greatest extent practical, tell spouses and former spouses of participants, former participants, and retired participants about their rights under this chapter.
The annuity of a participant is the product of—
the participant’s high-3 average pay (as defined in paragraph (4)); and
the number of years, not exceeding 35, of service credit (determined in accordance with sections 2081 and 2082 of this title) multiplied by 2 percent.
The total service of a participant who retires on an immediate annuity (except under section 2051 of this title) or who dies leaving a survivor or survivors entitled to an annuity shall include (without regard to the 35-year limitation prescribed in paragraph (1)) the days of unused sick leave to the credit of the participant. Days of unused sick leave may not be counted in determining average basic pay or eligibility for an annuity under this subchapter. A deposit shall not be required for days of unused sick leave credited under this paragraph.
In the case of a participant whose service includes service on a part-time basis performed after April 6, 1986, the participant’s annuity shall be the sum of the amounts determined under subparagraphs (B) and (C).
The portion of an annuity referred to in subparagraph (A) with respect to service before April 7, 1986, shall be the amount computed under paragraph (1) using the participant’s length of service before that date (increased by the unused sick leave to the credit of the participant at the time of retirement) and the participant’s high-3 average pay, as determined by using the annual rate of basic pay that would be payable for full-time service in that position.
The portion of an annuity referred to in subparagraph (A) with respect to service after April 6, 1986, shall be the product of—
the amount computed under paragraph (1), using the participant’s length of service after that date and the participant’s high-3 average pay, as determined by using the annual rate of basic pay that would be payable for full-time service; and
the ratio which the participant’s actual service after April 6, 1986 (as determined by prorating the participant’s total service after that date to reflect the service that was performed on a part-time basis) bears to the total service after that date that would be creditable for the participant if all the service had been performed on a full-time basis.
Employment on a temporary or intermittent basis shall not be considered to be service on a part-time basis for purposes of this paragraph.
For purposes of this subsection, a participant’s high-3 average pay is the amount of the participant’s average basic pay for the highest 3 consecutive years of the participant’s service for which full contributions have been made to the fund.
In determining the aggregate period of service upon which an annuity is to be based, any fractional part of a month shall not be counted.
Except to the extent provided otherwise under a written election under subparagraph (B) or (C), if at the time of retirement a participant or former participant is married (or has a former spouse who has not remarried before attaining age 55), the participant shall receive a reduced annuity and provide a survivor annuity for the participant’s spouse under this subsection or former spouse under section 2032(b) of this title, or a combination of such annuities, as the case may be.
A married participant or former participant and the participant’s spouse may jointly elect in writing at the time of retirement to waive a survivor annuity for that spouse under this section or to reduce such survivor annuity under this section by designating a portion of the annuity of the participant as the base for the survivor annuity. If the marriage is dissolved following an election for such a reduced annuity and the spouse qualifies as a former spouse, the base used in calculating any annuity of the former spouse under section 2032(b) of this title may not exceed the portion of the participant’s annuity designated under this subparagraph.
If a participant or former participant has a former spouse, such participant and the participant’s former spouse may jointly elect by spousal agreement under section 2094(b) of this title to waive, reduce, or increase a survivor annuity under section 2032(b) of this title for that former spouse. Any such election must be made (i) before the end of the 2-year period beginning on the date on which the divorce or annulment involving that former spouse becomes final, or (ii) at the time of retirement of the participant, whichever is later.
The Director* may prescribe regulations under which a participant or former participant may make an election under subparagraph (B) or (C) without the participant’s spouse or former spouse if the participant establishes to the satisfaction of the Director that the participant does not know, and has taken all reasonable steps to determine, the whereabouts of the spouse or former spouse.
The annuity of a participant or former participant providing a survivor annuity under this section (or section 2032(b) of this title), excluding any portion of the annuity not designated or committed as a base for any survivor annuity, shall be reduced by 2½ percent of the first $3,600 plus 10 percent of any amount over $3,600. The reduction under this paragraph shall be calculated before any reduction under section 2032(a)(5) of this title.
If a retired participant receiving a reduced annuity under this subsection dies and is survived by a spouse, a survivor annuity shall be paid to the surviving spouse. The amount of the annuity shall be equal to 55 percent of (i) the full amount of the participant’s annuity computed under subsection (a), or (ii) any lesser amount elected as the base for the survivor annuity under paragraph (1)(B).
Notwithstanding subparagraph (A), the amount of the annuity calculated under subparagraph (A) for a surviving spouse in any case in which there is also a surviving former spouse of the retired participant who qualifies for an annuity under section 2032(b) of this title may not exceed 55 percent of the portion (if any) of the base for survivor annuities which remains available under section 2032(b)(4)(B) of this title.
An annuity payable from the fund to a surviving spouse under this paragraph shall commence on the day after the retired participant dies and shall terminate on the last day of the month before the surviving spouse’s death or remarriage before attaining age 55. If such survivor annuity is terminated because of remarriage, it shall be restored at the same rate commencing on the date such remarriage is dissolved by death, annulment, or divorce if any lump sum paid upon termination of the annuity is returned to the fund.
A participant or former participant who retires after March 31, 1992 and who—
is married at the time of retirement; and
elects at that time (in accordance with subsection (b)) to waive a survivor annuity for the spouse,
may, during the 18-month period beginning on the date of the retirement of the participant, elect to have a reduction under subsection (b) made in the annuity of the participant (or in such portion thereof as the participant may designate) in order to provide a survivor annuity for the participant’s spouse.
A participant or former participant who retires after March 31, 1992, and—
who, at the time of retirement, is married, and
who, at that time designates (in accordance with subsection (b)) that a portion of the annuity of such participant is to be used as the base for a survivor annuity,
may, during the 18-month period beginning on the date of the retirement of such participant, elect to have a greater portion of the annuity of such participant so used.
An election under paragraph (1) shall not be effective unless the amount specified in subparagraph (B) is deposited into the fund before the end of that 18-month period.
The amount to be deposited with respect to an election under this subsection is the amount equal to the sum of the following:
The additional cost to the system that is associated with providing a survivor annuity under subsection (b) and that results from such election, taking into account—
the difference (for the period between the date on which the annuity of the participant or former participant commences and the date of the election) between the amount paid to such participant or former participant under this subchapter and the amount which would have been paid if such election had been made at the time the participant or former participant applied for the annuity; and
the costs associated with providing for the later election.
Interest on the additional cost determined under clause (i), computed using the interest rate specified or determined under section 8334(e) of title 5 for the calendar year in which the amount to be deposited is determined.
An election by a participant or former participant under this subsection voids prospectively any election previously made in the case of such participant under subsection (b).
An annuity that is reduced in connection with an election under this subsection shall be reduced by the same percentage reductions as were in effect at the time of the retirement of the participant or former participant whose annuity is so reduced.
Rights and obligations resulting from the election of a reduced annuity under this subsection shall be the same as the rights and obligations that would have resulted had the participant involved elected such annuity at the time of retirement.
In the case of a retired participant who died before April 1, 1992, and who is survived by a child or children—
if the retired participant was survived by a spouse, there shall be paid from the fund to or on behalf of each such surviving child an annuity determined under paragraph (3)(A); and
if the retired participant was not survived by a spouse, there shall be paid from the fund to or on behalf of each such surviving child an annuity determined under paragraph (3)(B).
In the case of a retired participant who dies on or after April 1, 1992, and who is survived by a child or children—
if the retired participant is survived by a spouse or former spouse who is the natural or adoptive parent of a surviving child of the participant, there shall be paid from the fund to or on behalf of each such surviving child an annuity determined under paragraph (3)(A); and
if the retired participant is not survived by a spouse or former spouse who is the natural or adoptive parent of a surviving child of the participant, there shall be paid to or on behalf of each such surviving child an annuity determined under paragraph (3)(B).
The annual amount of an annuity for the surviving child of a participant covered by paragraph (1)(A) or (2)(A) of this subsection (or covered by paragraph (1)(A) or (2)(A) of section 2052(c) of this title) is the smallest of the following:
60 percent of the participant’s high-3 average pay, as determined under subsection (a)(4), divided by the number of children.
$900, as adjusted under section 2131 of this title.
$2,700, as adjusted under section 2131 of this title, divided by the number of children.
The amount of an annuity for the surviving child of a participant covered by paragraph (1)(B) or (2)(B) of this subsection (or covered by paragraph (1)(B) or (2)(B) of section 2052(c) of this title) is the smallest of the following:
75 percent of the participant’s high-3 average pay, as determined under subsection (a)(4), divided by the number of children.
$1,080, as adjusted under section 2131 of this title.
$3,240, as adjusted under section 2131 of this title, divided by the number of children.
In the case of a child annuity payable under paragraph (1), upon the death of a surviving spouse or the termination of the annuity of a child, the annuities of any remaining children shall be recomputed and paid as though the spouse or child had not survived the retired participant.
In the case of a child annuity payable under paragraph (2), upon the death of a surviving spouse or former spouse or termination of the annuity of a child, the annuities of any remaining children shall be recomputed and paid as though the spouse, former spouse, or child had not survived the retired participant. If the annuity of a surviving child who has not been receiving an annuity is initiated or resumed, the annuities of any other children shall be recomputed and paid from that date as though the annuities of all currently eligible children were then being initiated.
For purposes of this subsection, the term “former spouse” includes any former wife or husband of the retired participant, regardless of the length of marriage or the amount of creditable service completed by the participant.
An annuity payable to a child under subsection (d), or under section 2052(c) of this title, shall begin on the day after the date on which the participant or retired participant dies or, in the case of an individual over the age of 18 who is not a child within the meaning of section 2002(b) of this title, shall begin or resume on the first day of the month in which the individual later becomes or again becomes a student as described in section 2002(b) of this title. Such annuity may not commence until any lump-sum that has been paid is returned to the fund.
Such an annuity shall terminate on the last day of the month before the month in which the recipient of the annuity dies or no longer qualifies as a child (as defined in section 2002(b) of this title).
Subject to the rights of former spouses under subsection (b) of this section and section 2032 of this title, at the time of retirement an unmarried participant found by the Director to be in good health may elect to receive an annuity reduced in accordance with subparagraph (B) and designate in writing an individual having an insurable interest in the participant to receive an annuity under the system after the participant’s death. The amount of such an annuity shall be equal to 55 percent of the participant’s reduced annuity.
The annuity payable to the participant making such election shall be reduced by 10 percent of an annuity computed under subsection (a) and by an additional 5 percent for each full 5 years the designated individual is younger than the participant. The total reduction under this subparagraph may not exceed 40 percent.
The annuity payable to the designated individual shall begin on the day after the retired participant dies and terminate on the last day of the month before the designated individual dies.
An annuity which is reduced under this paragraph shall, effective the first day of the month following the death of the designated individual, be recomputed and paid as if the annuity had not been so reduced.
A participant who is unmarried at the time of retirement and who later marries may irrevocably elect, in a signed writing received by the Director within two years after the marriage, to receive a reduced annuity as provided in subsection (b). Such election and reduction shall be effective on the first day of the month beginning 9 months after the date of marriage. The election voids prospectively any election previously made under paragraph (1).
An annuity which is reduced under this section (or any similar prior provision of law) to provide a survivor annuity for a spouse shall, if the marriage of the retired participant to such spouse is dissolved, be recomputed and paid for each full month during which a retired participant is not married (or is remarried, if there is no election in effect under paragraph (2)) as if the annuity had not been so reduced, subject to any reduction required to provide a survivor annuity under subsection (b) or (c) of section 2032 of this title or under section 2036 of this title.
Upon remarriage, the retired participant may irrevocably elect, by means of a signed writing received by the Director within two years after such remarriage, to receive a reduced annuity for the purpose of providing an annuity for the new spouse of the retired participant in the event such spouse survives the retired participant. Such reduction shall be equal to the reduction in effect immediately before the dissolution of the previous marriage (unless such reduction is adjusted under section 2032(b)(5) of this title or elected under subparagraph (B)).
If the retired participant’s annuity was not reduced (or was not fully reduced) to provide a survivor annuity for the participant’s spouse or former spouse as of the time of retirement, the retired participant may make an election under the first sentence of subparagraph (A) upon remarriage to a spouse other than the spouse at the time of retirement. For any remarriage that occurred before August 14, 1991, the retired participant may make such an election within 2 years after such date.
The retired participant shall, within two years after the date of the remarriage (or by August 14, 1993 for any remarriage that occurred before August 14, 1991), deposit in the fund an amount determined by the Director, as nearly as may be administratively feasible, to reflect the amount by which the retired participant’s annuity would have been reduced if the election had been in effect since the date the annuity commenced, plus interest.
The annual rate of interest for each year during which the retired participant’s annuity would have been reduced if the election had been in effect since the date the annuity commenced shall be 6 percent.
If the retired participant does not make the deposit, the Director shall collect such amount by offset against the participant’s annuity, up to a maximum of 25 percent of the net annuity otherwise payable to the retired participant, and the retired participant is deemed to consent to such offset.
The deposit required by this subparagraph may be made by the surviving spouse of the retired participant.
An election under this paragraph and the reduction in the participant’s annuity shall be effective on the first day of the month beginning 9 months after the date of remarriage. A survivor annuity elected under this paragraph shall be treated in all respects as a survivor annuity under subsection (b).
Subject to the rights of former spouses under subsection (b) and section 2032 of this title, at the time of retirement a married participant found by the Director to be in good health may elect to receive an annuity reduced in accordance with subsection (f)(1)(B) and designate in writing an individual having an insurable interest in the participant to receive an annuity under the system after the participant’s death, except that any such election to provide an insurable interest survivor annuity to the participant’s spouse shall only be effective if the participant’s spouse waives the spousal right to a survivor annuity under this chapter. The amount of the annuity shall be equal to 55 percent of the participant’s reduced annuity.
The annuity payable to the participant making such election shall be reduced by 10 percent of an annuity computed under subsection (a) and by an additional 5 percent for each full 5 years the designated individual is younger than the participant. The total reduction under this subparagraph may not exceed 40 percent.
The annuity payable to the designated individual shall begin on the day after the retired participant dies and terminate on the last day of the month before the designated individual dies.
An annuity that is reduced under this subsection shall, effective the first day of the month following the death of the designated individual, be recomputed and paid as if the annuity had not been so reduced.
A surviving spouse whose survivor annuity was terminated because of remarriage before attaining age 55 shall not be entitled under subsection (b)(3)(C) to the restoration of that survivor annuity payable from the fund unless the surviving spouse elects to receive it instead of any other survivor annuity to which the surviving spouse may be entitled under the system or any other retirement system for Government employees by reason of the remarriage.
A surviving former spouse of a participant or retired participant shall not become entitled under section 2032(b) or 2034 of this title to a survivor annuity or to the restoration of a survivor annuity payable from the fund unless the surviving former spouse elects to receive it instead of any other survivor annuity to which the surviving former spouse may be entitled under this or any other retirement system for Government employees on the basis of a marriage to someone other than the participant.
A surviving spouse who married a participant after the participant’s retirement shall be entitled to a survivor annuity payable from the fund only upon electing that annuity instead of any other survivor annuity to which the surviving spouse may be entitled under this or any other retirement system for Government employees on the basis of a marriage to someone other than the retired participant.
A married recalled annuitant who reverts to retired status with entitlement to a supplemental annuity under section 2111(b) of this title shall, unless the annuitant and the annuitant’s spouse jointly elect in writing to the contrary at the time of reversion to retired status, have the supplemental annuity reduced by 10 percent to provide a supplemental survivor annuity for the annuitant’s spouse. Such supplemental survivor annuity shall be equal to 55 percent of the supplemental annuity of the annuitant.
The Director shall prescribe regulations to provide for the application of paragraph (1) of this subsection and of subsection (b) of section 2111 of this title in any case in which an annuitant has a former spouse who was married to the recalled annuitant at any time during the period of recall service and who qualifies for an annuity under section 2032(b) of this title.
Notwithstanding any other provision of this subchapter, an annuity (including a disability annuity) payable under this subchapter to an individual described in sections 2021(d)(1) and 2151(c)(1) of this title and any survivor annuity payable under this subchapter on the basis of the service of such individual shall be reduced in a manner consistent with section 8349 of title 5, under conditions consistent with the conditions prescribed in that section.
For the purpose of ensuring the accuracy of the information used in the determination of eligibility for and the computation of annuities payable from the fund under this subchapter, at the request of the Director—
the Secretary of Defense shall provide information on retired or retainer pay paid under title 10;
the Secretary of Veterans Affairs shall provide information on pensions or compensation paid under title 38;
the Secretary of Health and Human Services shall provide information contained in the records of the Social Security Administration; and
the Secretary of Labor shall provide information on benefits paid under subchapter I of chapter 81 of title 5.
The Director shall request only such information as the Director determines is necessary.
The Director, in consultation with the officials from whom information is requested, shall ensure that information made available under this subsection is used only for the purposes authorized.
The Director shall, on an annual basis—
inform each retired participant of the participant’s right of election under subsections (c), (f)(2), and (g); and
to the maximum extent practicable, inform spouses and former spouses of participants, former participants, and retired participants of their rights under this chapter.
Source credit: (Pub. L. 88–643, title II, § 221, as added Pub. L. 102–496, title VIII, § 802, Oct. 24, 1992, 106 Stat. 3204; amended Pub. L. 103–178, title II, § 202(a)(4), Dec. 3, 1993, 107 Stat. 2026; Pub. L. 116–92, div. E, title LXII, § 6202(a)(1), Dec. 20, 2019, 133 Stat. 2184.)
- 1992Enacted · Pub. L. 88-643 · 106 Stat. 3204
- 1993Amended · Pub. L. 103-178 · 107 Stat. 2026
- 2019Amended · Pub. L. 116-92 · 133 Stat. 2184
A history note hasn’t been published yet. The record shows enactment by Pub. L. 88-643 on 1992-10-24.
all 0 arguments · sorted by: best
no arguments yet — make the first case