50 U.S.C. § 2021 — Contributions to fund

(a) Contributions. (1) A “revised annuity participant” is an individual who, on December 31, 2012, (A)(i) was not a participant, (ii) was not performing qualifying service^*, and (iii) had less than 5 years of qualifying service, and who (B) after that date becomes a participant performing qualifying service. This section does not define the term beyond these conditions. (2)(A) Except as subsection (d) provides, 7 percent of each pay-period’s basic pay of a participant who is not a revised annuity participant must be deducted and withheld and contributed to the fund. (B) For a revised annuity participant, the rate is 9.3 percent. (3)(A) For a non-revised-annuity participant, the appropriation or fund paying basic pay must contribute an amount equal to 7 percent of that pay for the pay period. (B) For a revised annuity participant, it must contribute 4.7 percent. (4) The Director^* must deposit both the withheld amounts and agency^* contributions to the fund’s credit.

(b) Consent to deductions. Each participant is treated as consenting to the deductions. Pay after the deductions fully discharges all claims for regular services during the covered period, except the participant’s right to benefits under this subchapter, despite any law, rule, or regulation affecting pay.

(c) Amounts after 35 years. (1) Deductions from pay periods after the first day of the first pay period beginning after a participant completes 35 years of creditable service under sections 2081 and 2082, excluding unused-sick-leave credit under section 2031(a)(2), earn interest. The rate is 3 percent per year through December 31, 1984, and afterward the rate calculated under section 8334(e) of title 5. Interest compounds annually from deduction until retirement or death. (2)(A) At retirement or death, the amounts and interest must first be used toward a deposit due under section 2082(b). (B) Any balance must be refunded in a lump sum after separation, or after an in-service death to a beneficiary in the order in section 2071(c), after notifying a current spouse. Notification is not required if the participant satisfies the Director under prescribed rules that the participant does not know the spouse’s whereabouts despite reasonable efforts to find them. (C) Instead of a lump sum, the participant may use the amounts to buy an additional annuity under section 2121 or provide an additional survivor benefit for a current or former spouse or spouses.

(d) Social Security tax offset. (1) This applies to a participant covered by this subchapter before January 1, 1984, whose service (A) is employment for title II of the Social Security Act and chapter 21 of title 26, and (B) is not creditable for any purpose under subchapter III of this chapter or chapter 84 of title 5. For each pay period, only the amount calculated under paragraph (2) is deducted. (2) That amount is the excess of (A) the applicable subsection (a) percentage multiplied by basic pay for the period over (B) the old-age, survivors, and disability insurance taxes withheld from that pay under section 3101(a) of title 26.