5 U.S.C. § 8432b — Contributions of persons who perform military service
submitted 32 years ago by Pub. L. 103-353 to r/title-5-GOVERNMENT-ORGANIZATION-AND-EMPLOYEES · 896 words · no verdicts yet
Employees who leave a federal job for military service can make up missed contributions later. They may contribute what they would have, and the agency matches it as usual. Their military time away doesn't hurt their vesting or benefit-election rights.
(a) Who this covers. This section applies to an employee* who (1) separates from their job or goes on leave-without-pay to perform military service*, and (2) later gets restored to or reemployed in a job covered by this chapter, under the reemployment rights law (chapter 43 of title 38).
(b) Making up contributions.
(1) A covered employee may contribute to the Fund* an amount up to the limit in paragraph (2).
(2) That maximum equals: (A) the contributions the employee would have made under section 8432(a) during the whole period from when they separated or went on leave until the day before they were restored or reemployed, minus (B) any contributions they actually made under section 8432(a) or 8440e during that same period.
(3) These make-up contributions: (A) are made the same way as regular section 8432(a) contributions; (B) are spread over the time period the employee chooses under paragraph (4)(B); and (C) come on top of any contributions the employee is currently making under section 8432(a).
(4) The Executive Director* sets the process for the employee to specify (A) the total amount they want to contribute for that earlier period, and (B) how long they want to take to contribute it. The employing agency can cap that repayment period, but the cap can't be shorter than twice the original absence period, or longer than four times it.
(c) Matching agency contributions.
(1) If the employee makes make-up contributions under (b), the employing agency must make matching contributions the same way it would under section 8432(c)(2), as if the employee's contributions had been made under section 8432(a), without counting any contributions currently being made under 8432(a) or their matches.
(2) The employee is also entitled to have the Fund credited with: (A) the total match they would have earned under section 8432(c)(2), based on amounts they actually contributed under section 8440e (a program for uniformed-service* members) during the absence, treated as if those had been 8432(a) contributions, minus (B) any match already actually credited for that period under 8432(c)(2).
(d) The automatic 1 percent. The employee is also entitled to have the Fund credited with: (1) 1 percent of the basic pay* they would have earned (as figured under subsection (e)) during the absence, minus (2) any 1 percent contribution already actually credited under section 8432(c)(1) for that period.
(e) Figuring the pay rate. For all these calculations, the employee is treated as if they'd kept earning the pay rate of the job they held right before leaving for military service, for the whole absence period.
(f) Lost earnings. (1) The employing agency may also have to pay lost investment earnings on the contributions made under subsections (c) and (d), calculated back to the date the contribution should have been made if the employee had never left. (2) The Executive Director* sets the procedures for calculating and crediting this.
(g) Who pays and how. Amounts owed under subsections (c), (d), or (f) are paid: (1) by the agency that restores or reemploys the employee; (2) from the same funding source used for regular section 8432(c) contributions; and (3) within whatever time the Executive Director sets.
(h) Treating the absence as if it never happened.
(1) For vesting purposes under section 8432(g), a covered employee's military separation is ignored, and the employee is credited with civilian service for the whole absence period.
(2)(A) The employee can also elect, for purposes of section 8433(d) or (f) (benefit elections), to have their earlier separation treated as though it never happened. (B) That election must be made within the time and in the manner the Executive Director requires, after the employee is restored or reemployed.
(i) The Executive Director must issue regulations to carry out this section.
This section applies to any employee* who—
separates or enters leave-without-pay status in order to perform military service*; and
is subsequently restored to or reemployed in a position which is subject to this chapter, pursuant to chapter 43 of title 38.
Each employee to whom this section applies may contribute to the Thrift Savings Fund*, in accordance with this subsection, an amount not to exceed the amount described in paragraph (2).
The maximum amount which an employee may contribute under this subsection is equal to—
the contributions under section 8432(a) which would have been made, over the period beginning on date of separation or commencement of leave-without-pay status (as applicable) and ending on the day before the date of restoration or reemployment (as applicable); reduced by
any contributions under section 8432(a) or 8440e actually made by such employee over the period described in subparagraph (A).
Contributions under this subsection—
shall be made at the same time and in the same manner as would any contributions under section 8432(a);
shall be made over the period of time specified by the employee under paragraph (4)(B); and
shall be in addition to any contributions then actually being made under section 8432(a).
The Executive Director* shall prescribe the time, form, and manner in which an employee may specify—
the total amount such employee wishes to contribute under this subsection with respect to any particular period referred to in paragraph (2)(B); and
the period of time over which the employee wishes to make contributions under this subsection.
The employing agency may place a maximum limit on the period of time referred to in subparagraph (B), which cannot be shorter than two times the period referred to in paragraph (2)(B) and not longer than four times such period.
If an employee makes contributions under subsection (b), the employing agency shall make contributions to the Thrift Savings Fund on such employee’s behalf—
in the same manner as would be required under section 8432(c)(2) if the employee contributions were being made under section 8432(a); and
disregarding any contributions then actually being made under section 8432(a) and any agency contributions relating thereto.
An employee to whom this section applies is entitled to have contributed to the Thrift Savings Fund on such employee’s behalf an amount equal to—
the total contributions to which that individual would have been entitled under section 8432(c)(2), based on the amounts contributed by such individual under section 8440e (other than under subsection (d)(2) thereof) with respect to the period referred to in subsection (b)(2)(B), if those amounts had been contributed by such individual under section 8432(a); reduced by
any contributions actually made on such employee’s behalf under section 8432(c)(2) with respect to the period referred to in subsection (b)(2)(B).
An employee to whom this section applies is entitled to have contributed to the Thrift Savings Fund on such employee’s behalf an amount equal to—
1 percent of such employee’s basic pay* (as determined under subsection (e)) for the period referred to in subsection (b)(2)(B); reduced by
any contributions actually made on such employee’s behalf under section 8432(c)(1) with respect to the period referred to in subsection (b)(2)(B).
For purposes of any computation under this section, an employee shall, with respect to the period referred to in subsection (b)(2)(B), be considered to have been paid at the rate which would have been payable over such period had such employee remained continuously employed in the position which such employee last held before separating or entering leave-without-pay status to perform military service*.
The employing agency may be required to pay lost earnings on contributions made pursuant to subsections (c) and (d). Such earnings, if required, shall be calculated retroactively to the date the contribution would have been made had the employee not separated or entered leave without pay status to perform military service.
Procedures for calculating and crediting the earnings payable pursuant to paragraph (1) shall be prescribed by the Executive Director*.
Amounts paid under subsection (c), (d), or (f) shall be paid—
by the agency to which the employee is restored or in which such employee is reemployed;
from the same source as would be the case under section 8432(e) with respect to sums required under section 8432(c); and
within the time prescribed by the Executive Director.
For purposes of section 8432(g), in the case of an employee to whom this section applies—
a separation from civilian service in order to perform the military service on which the employee’s restoration or reemployment rights are based shall be disregarded; and
such employee shall be credited with a period of civilian service equal to the period referred to in subsection (b)(2)(B).
An employee to whom this section applies may elect, for purposes of subsection (d) or (f) of section 8433, as the case may be, to have such employee’s separation (described in subsection (a)(1)) treated as if it had never occurred.
An election under this paragraph shall be made within such period of time after restoration or reemployment (as the case may be) and otherwise in such manner as the Executive Director prescribes.
The Executive Director shall prescribe regulations to carry out this section.
Source credit: (Added Pub. L. 103–353, § 4(a)(1), Oct. 13, 1994, 108 Stat. 3170; amended Pub. L. 106–65, div. A, title VI, § 661(a)(3)(A), (C), Oct. 5, 1999, 113 Stat. 671; Pub. L. 114–92, div. A, title VI, § 632(e)(2), Nov. 25, 2015, 129 Stat. 847; Pub. L. 115–84, § 2(e), Nov. 17, 2017, 131 Stat. 1273.)
- 1994Enacted · Pub. L. 103-353 · 108 Stat. 3170
- 1999Amended · Pub. L. 106-65 · 113 Stat. 671
- 2015Amended · Pub. L. 114-92 · 129 Stat. 847
- 2017Amended · Pub. L. 115-84 · 131 Stat. 1273
A history note hasn’t been published yet. The record shows enactment by Pub. L. 103-353 on 1994-10-13.
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