5 U.S.C. § 8440b — Bankruptcy judges and magistrate judges
submitted 38 years ago by Pub. L. 100-659 to r/title-5-GOVERNMENT-ORGANIZATION-AND-EMPLOYEES · 634 words · no verdicts yet
Bankruptcy judges and magistrate judges may contribute part of their pay to the Thrift Savings Fund. Most Thrift Savings Plan rules then apply to them. Special rules cover their retirement, annuity offsets, and small account payouts.
(a) A bankruptcy judge or magistrate judge covered by 28 U.S.C. § 377 or by section 2(c) of the 1988 Retirement and Survivors' Annuities for Bankruptcy Judges and Magistrates Act may choose to put part of their basic pay* into the Thrift Savings Fund*. They make this election the same way other Thrift Savings Plan participants do, under section 8432(b).
(b) Once a judge elects to contribute, most of the regular Thrift Savings Plan rules (this subchapter and subchapter VII) apply to them, with some exceptions listed here.
- The amount a judge contributes each pay period can't be more than the maximum percentage set by section 8440f.
- The government* does not make the automatic or matching contributions described in section 8432(c) for these judges — only the judge's own voluntary contributions count.
- Section 8433(b), which lets a participant choose how to receive their account* balance, applies to a judge who elected to contribute and who later retires entitled to an immediate annuity under section 377 of title 28 (including a disability annuity) or under the 1988 Act. It also applies to a judge who retires before age 65 but who will be entitled to an annuity once they turn 65 under those same laws. And it applies to a judge who retires before qualifying for either an immediate annuity or an annuity at age 65.
- Any of those three kinds of retirement counts as a "separation from service*" for Thrift Savings Plan purposes.
- The words "retirement" and "retire" also include being removed from office* solely because of mental or physical disability under section 377(d) of title 28.
- If a judge takes a distribution from their Thrift Savings account and later starts receiving an annuity under section 377 of title 28, that annuity is reduced. The reduction equals the part of the earlier distribution that came from the government's own contributions, not counting any investment earnings on that money. If this reduction would take away more than half of the annuity the judge would otherwise get in the first year, the reduction can instead be spread evenly over the judge's first two years of receiving the annuity.
- Even though the rule above about section 8433(b) applies, there is an exception: if a judge retires in a way that qualifies them to make the lump-sum election under section 8433(b), and their vested (nonforfeitable) account balance is below an amount that the Executive Director* of the Thrift Savings Plan sets by regulation, the Executive Director* must simply pay out the whole balance to the judge in one single payment.
A bankruptcy judge or magistrate judge who is covered by section 377 of title 28 or section 2(c) of the Retirement and Survivors’ Annuities for Bankruptcy Judges and Magistrates Act of 1988 may elect to contribute an amount of such individual’s basic pay* to the Thrift Savings Fund*.
An election may be made under paragraph (1) as provided under section 8432(b) for individuals subject to this chapter.
Except as otherwise provided in this subsection, the provisions of this subchapter and subchapter VII shall apply with respect to bankruptcy judges and magistrate judges who make contributions to the Thrift Savings Fund under subsection (a) of this section.
The amount contributed by a bankruptcy judge or magistrate judge for any pay period shall not exceed the maximum percentage of such bankruptcy judge’s or magistrate judge’s basic pay for such pay period allowable under section 8440f.
No contributions shall be made under section 8432(c) of this title for the benefit of a bankruptcy judge or magistrate judge making contributions under subsection (a) of this section.
Section 8433(b) of this title applies to a bankruptcy judge or magistrate judge who elects to make contributions to the Thrift Savings Fund under subsection (a) of this section and who retires entitled to an immediate annuity under section 377 of title 28 (including a disability annuity under subsection (d) of such section) or section 2(c) of the Retirement and Survivors’ Annuities for Bankruptcy Judges and Magistrates Act of 1988.
Section 8433(b) of this title applies to any bankruptcy judge or magistrate judge who elects to make contributions to the Thrift Savings Fund under subsection (a) of this section and who retires before attaining age 65 but is entitled, upon attaining age 65, to an annuity under section 377 of title 28 or section 2(c) of the Retirement and Survivors Annuities for Bankruptcy Judges and Magistrates Act of 1988.
Section 8433(b) of this title applies to any bankruptcy judge or magistrate judge who elects to make contributions to the Thrift Savings Fund under subsection (a) of this section and who retires before becoming entitled to an immediate annuity, or an annuity upon attaining age 65, under section 377 of title 28 or section 2(c) of the Retirement and Survivors’ Annuities for Bankruptcy Judges and Magistrates Act of 1988.
With respect to bankruptcy judges and magistrate judges to whom this section applies, any of the actions described under paragraph (4)(A), (B), or (C) shall be considered a separation from service* for purposes of this subchapter and subchapter VII.
For purposes of this section, the terms “retirement” and “retire” include removal from office* under section 377(d) of title 28 on the sole ground of mental or physical disability.
In the case of a bankruptcy judge or magistrate judge who receives a distribution from the Thrift Savings Plan and who later receives an annuity under section 377 of title 28, that annuity shall be offset by an amount equal to the amount of the distribution which represents the Government’s contribution to that person’s Thrift Savings Account*, without regard to earnings attributable to that amount. Where such an offset would exceed 50 percent of the annuity to be received in the first year, the offset may be divided equally over the first 2 years in which that person receives the annuity.
Notwithstanding paragraph (4), if any bankruptcy judge or magistrate judge retires under circumstances making such bankruptcy judge or magistrate judge eligible to make an election under subsection (b) of section 8433, and such bankruptcy judge’s or magistrate judge’s nonforfeitable account balance* is less than an amount that the Executive Director* prescribes by regulation, the Executive Director* shall pay the nonforfeitable account balance to the participant in a single payment.
Source credit: (Added Pub. L. 100–659, § 7(a), Nov. 15, 1988, 102 Stat. 3919, § 8440a; renumbered § 8440b and amended Pub. L. 101–335, §§ 3(b)(3), 6(b)(3), 9(a), July 17, 1990, 104 Stat. 320, 324, 326; Pub. L. 101–650, title III, § 321, Dec. 1, 1990, 104 Stat. 5117; Pub. L. 103–226, § 9(f), Mar. 30, 1994, 108 Stat. 120; Pub. L. 104–208, div. A, title I, § 101(f) [title VI, § 659 [title II, § 205(b)]], Sept. 30, 1996, 110 Stat. 3009–314, 3009–372, 3009–377; Pub. L. 106–554, § 1(a)(4) [div. B, title I, § 138(a)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A–233; Pub. L. 108–469, §§ 1(d)(5), 3(2), Dec. 21, 2004, 118 Stat. 3892, 3893.)
- 1988Enacted · Pub. L. 100-659 · 102 Stat. 3919
- 1990Amended · Pub. L. 101-335 · 104 Stat. 320, 324, 326
- 1990Amended · Pub. L. 101-650 · 104 Stat. 5117
- 1994Amended · Pub. L. 103-226 · 108 Stat. 120
- 1996Amended · Pub. L. 104-208 · 110 Stat. 3009
- 2000Amended · Pub. L. 106-554 · 114 Stat. 2763, 2763
- 2004Amended · Pub. L. 108-469 · 118 Stat. 3892, 3893
A history note hasn’t been published yet. The record shows enactment by Pub. L. 100-659 on 1988-11-15.
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