22 U.S.C. § 4055 — Lump-sum payments
submitted 46 years ago by Pub. L. 96-465 to r/title-22-FOREIGN-RELATIONS-AND-INTERCOURSE · 1,110 words · no verdicts yet
This section explains when a participant receives a lump-sum credit, how contributions are returned after certain recall service, and who receives unpaid amounts after death. It also sets the credit calculation and former-spouse share.
(a) Requirements for payment. (1) A participant may receive a lump-sum credit if the participant: (A) has been separated from the Service, or transferred out of this subchapter, for at least 31 consecutive days; (B) applies to the Secretary of State; (C) is not employed in a position covered by this subchapter when applying; (D) will not become eligible for an annuity within 31 days after applying; and (E) has notified each spouse or former spouse as regulations require. Regulations may waive (E) in circumstances described in section 4046(b)(1)(D). (2) The credit is paid to the participant and any former spouse under subsection (i).
(b) Recall service. If an annuitant separates after recall service without qualifying for a supplemental or recalculated annuity under section 4063, the required contributions for that service, and special contributions for other service after the separation underlying the annuity, are returned to the annuitant and any former spouse married to the participant during recall, under subsection (i).
(c) Difference from lump-sum credit. If all annuity rights based on a deceased participant's or annuitant's service end before total annuities equal the lump-sum credit, the difference is paid under subsection (f).
(d) No eligible survivors. If a participant or former participant dies without an eligible annuity survivor, or all such survivors' rights end before a survivor-annuity claim is filed, the lump-sum credit is paid under subsection (f).
(e) Deceased former participant annuitant. Unpaid annuity accrued when an annuitant who was a former participant dies is paid under subsection (f).
(f) Order of precedence. Amounts under (c) through (e) go, after a valid claim, to survivors alive when entitlement arises, in this order, and payment bars anyone else's recovery: (1) the beneficiary or beneficiaries last designated in a signed, witnessed writing filed with the Secretary before death; a will or other document not executed and filed this way has no effect; (2) the surviving spouse; (3) the participant's children, including adopted and natural children but not stepchildren, and descendants of deceased children by representation; (4) the participant's parents or the survivor of them; (5) the duly appointed estate executor or administrator; and (6) other next of kin whom the Secretary finds legally entitled. Payment under paragraph (6) cannot occur until 30 days after death.
(g) Deceased survivor annuitant. Unpaid annuity goes first to the survivor annuitant's duly appointed executor or administrator, and, if none, after 30 days to the person the Secretary finds entitled under the law of the annuitant's domicile at death. Payment bars anyone else's recovery.
(h) Amount of credit. Amounts deducted from basic salary after the participant completes 35 years of service under section 4056, excluding unused sick-leave credit, plus 3-percent annually compounded interest from deduction to retirement or death, first pay any special contribution due under section 4045(d). Any balance is refunded in a lump sum after separation, or after an in-service death to a beneficiary in subsection (f)'s order.
(i) Former spouses. Unless an agreement or order says otherwise, a former spouse receives 50 percent of the participant's lump-sum credit if married throughout the participant's creditable service, or the former spouse's pro rata share of that 50 percent if not. The participant's credit is reduced by that amount. “Creditable service” means service creditable under part I or II; this section does not otherwise define the term.
A participant is entitled to be paid a lump-sum credit if the participant—
is separated from the Service for at least 31 consecutive days, or is transferred to a position in which the participant is not subject to this subchapter and remains in such a position for at least 31 consecutive days;
files an application with the Secretary of State for payment of the lump-sum credit;
is not reemployed in a position in which the participant is subject to this subchapter at the time the participant files the application;
will not become eligible to receive an annuity under this part within 31 days after filing the application; and
has notified any spouse or former spouse the participant may have of the application for payment in accordance with regulations prescribed by the Secretary of State.
Such regulations may provide for waiver of subparagraph (E) under circumstances described in section 4046(b)(1)(D) of this title.
Such lump-sum credit shall be paid to the participant and to any former spouse of the participant in accordance with subsection (i).
Whenever an annuitant becomes separated from the Service following a period of recall service without becoming eligible for a supplemental or recomputed annuity under section 4063 of this title, the compulsory contributions of the annuitant to the Fund for such service, together with any special contributions the annuitant may have made for other service performed after the date of separation from the Service which forms the basis for annuity, shall be returned to the annuitant (and any former spouse of the annuitant who was married to the participant during the period of recall service, in accordance with subsection (i)).
If all annuity rights under this part based on the service of a deceased participant or annuitant terminate before the total annuity paid equals the lump-sum credit to which the participant or annuitant is entitled, the difference shall be paid in accordance with subsection (f).
If a participant or former participant dies and is not survived by an individual eligible for an annuity under this part or by such an individual or individuals all of whose annuity rights terminate before a claim for survivor annuity is filed, the lump-sum credit to which the participant or annuitant is entitled shall be paid in accordance with subsection (f).
If an annuitant who was a former participant dies, any annuity accrued and unpaid shall be paid in accordance with subsection (f).
Payments under subsections (c) through (e) shall be paid in the following order of precedence to individuals surviving the participant and alive on the date entitlement to the payment arises, upon the establishment of a valid claim therefor, and such payment shall be a bar to recovery by any other person:
To the beneficiary or beneficiaries last designated by the participant before or after retirement in a signed and witnessed writing filed with the Secretary of State prior to the death of the participant, for which purpose a designation, change, or cancellation of beneficiary in a will or other document which is not so executed and filed shall have no force or effect.
If there is no such beneficiary, to the surviving wife or husband of the participant.
If none of the above, to the child (without regard to the definition in section 4044(2) of this title) or children of the participant (including adopted and natural children but not stepchildren) and descendants of deceased children by representation.
If none of the above, to the parents of the participant or the survivor of them.
If none of the above, to the duly appointed executor or administrator of the estate of the participant.
If none of the above, to such other next of kin of the participant as may be determined in the judgment of the Secretary of State to be legally entitled to such payment, except that no payment shall be made under this paragraph until after the expiration of 30 days after the death of the participant or annuitant.
Annuity accrued and unpaid on the death of a survivor annuitant shall be paid in the following order of precedence, and the payment bars recovery by any other person:
To the duly appointed executor or administrator of the estate of the survivor annuitant.
If there is no such executor or administrator, to such person as may be determined by the Secretary of State (after the expiration of 30 days from the date of death of the survivor annuitant) to be entitled under the laws of the domicile of the survivor annuitant at the time of death.
1 Amounts deducted and withheld from basic salary of a participant under section 4045 of this title from the beginning of the first pay period after the participant has completed 35 years of service computed under section 4056 of this title (excluding service credit for unused sick leave under section 4056(b) of this title), together with interest on the amounts at the rate of 3 percent a year compounded annually from the date of the deduction to the date of retirement or death, shall be applied toward any special contribution due under section 4045(d) of this title), and any balance not so required shall be refunded in a lump sum to the participant after separation or, in the event of a death in service, to a beneficiary in the order of precedence specified in subsection (f).
Unless otherwise expressly provided by any spousal agreement or court order under section 4060(b)(1) of this title, the amount of a participant’s or former participant’s lump-sum credit payable to a former spouse of that participant shall be—
if the former spouse was married to the participant throughout the period of creditable service of the participant, 50 percent of the lump-sum credit to which such participant would be entitled in the absence of this subsection, or
if such former spouse was not married to the participant throughout such creditable service, an amount equal to such former spouse’s pro rata share of 50 percent of such lump-sum credit.
The lump-sum credit of the participant shall be reduced by the amount of the lump-sum credit payable to the former spouse. For the purposes of this subsection, the term “creditable service” means service which is creditable under part I or II.
Source credit: (Pub. L. 96–465, title I, § 815, Oct. 17, 1980, 94 Stat. 2116; Pub. L. 99–335, title IV, §§ 402(a)(2), 404(c), 413, June 6, 1986, 100 Stat. 609, 610, 614; Pub. L. 100–238, title II, § 218, Jan. 8, 1988, 101 Stat. 1775.)
- 1980Enacted · Pub. L. 96-465 · 94 Stat. 2116
- 1986Amended · Pub. L. 99-335 · 100 Stat. 609, 610, 614
- 1988Amended · Pub. L. 100-238 · 101 Stat. 1775
A history note hasn’t been published yet. The record shows enactment by Pub. L. 96-465 on 1980-10-17.
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