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Page:United States Statutes at Large Volume 100 Part 1.djvu/567

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 531

lively feasible) to reflect the amount by which the annuity of such individual would have been reduced if the election had been in effect since the date of retirement (or, if later, and in the case of an election under such section 8416(b), since the date the previous reduction in the annuity of such individual was terminated under paragraph (1) or (2) of section 8419(b)), plus interest. "(2) Interest under paragraph (1) shall be computed at the rate of 6 percent a year. "(b) If the electing individual does not make the deposit required under subsection (a), the Office shall collect such amount by offset against such individual's annuity, up to a maximum of 25 percent of the net annuity otherwise payable, and the individual is deemed to consent to such offset. "(c) Subsections (a) and (b) shall not apply if^ "(1) the employee or Member makes an election under section 8416 (b) or (c) after having made an election under section 8420; and "(2) the election under such section 8420 becomes void under subsection (b)(3) or (c)(2) of such section 8416. "(d) The Office shall prescribe regulations under which the survivor of an employee or Member may make a deposit under this section.

Regulations.

"§ 8419. Survivor reductions; computation 5 USC 8419. "(a)(1) Except as provided in paragraph (2), the annuity of an annuitant computed under section 8415, or under section 8452 (including subsection (a)(2) of such section, if applicable), shall be reduced by 10 percent if a survivor annuity, or a combination of survivor annuities, under section 8442 or 8445 (or both) are to be provided for. "(2)(A) If no survivor annuity under section 8442 is to be provided for, but one or more survivor annuities under section 8445 involving a total of less than the entirety of the amount referred to in subsection (b)(2) of such section are to be provided for, the annuity of the annuitant involved (as computed under section 8415, or under section 8452 (including subsection (a)(2) of such section, if applicable)), shall be reduced by an appropriate percentage determined under subparagraph (B). "(B) The Office shall prescribe regulations under which an appro- Regulations. priate reduction under this paragraph, not to exceed a total of 10 percent, shall be made. "(b)(1) Any reduction in an annuity for the purpose of providing a survivor annuity for the current spouse of a retired employee or Member shall be terminated for each full month— "(A) after the death of the spouse; or "(B) after the dissolution of the spouse's marriage to the employee or Member, except that an appropriate reduction shall be made thereafter if the spouse is entitled, as a former spouse, to a survivor annuity under section 8445. "(2) Any reduction in an annuity for the purpose of providing a survivor annuity for a former spouse of a retired employee or Member shall be terminated for each full month after the former spouse remarries before reaching age 55 or dies. This reduction shall be replaced by appropriate reductions under subsection (a) if the retired employee or Member has one or more of the following: "(A) another former spouse who is entitled to a survivor annuity under section 8445;

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 100 STAT. 532

PUBLIC LAW 99-335—JUNE 6, 1986 "(B) a current spouse to whom the employee or Member was married at the time of retirement and with respect to whom a survivor annuity was not waived under section 8416(a) (or, if waived, with respect to whom an election under section 8416(d) has been made); or "(C) a current spouse whom the employee or Member married after retirement and with respect to whom an election has been made under subsection (b) or (c) of section 8416.

5 USC 8420.

5 USC 8420a. Regulations.

"§ 8420. Insurable interest reductions "(a)(1) At the time of retiring under section 8412, 8413, or 8414, an employee or Member who is found to be in good health by the Office may elect to have such employee's or Member's annuity (as computed under section 8415) reduced under paragraph (2) in order to provide an annuity under section 8444 for an individual having an insurable interest in the employee or Member. Such individual shall be designated by the employee or Member in writing. "(2) 'The annuity of the employee or Member making the election is reduced by 10 percent, and by 5 percent for each full 5 years the individual named is younger than the retiring employee or Member, except that the total reduction may not exceed 40 percent. "(3) An annuity which is reduced under this subsection shall, effective the first day of the month following the death of the individual named under this subsection, be recomputed and paid as if the annuity had not been so reduced. "(b)(1) In the case of a married employee or Member, an election under this section on behalf of the spouse may be made only if any right of such spouse to a survivor annuity based on the service of such employee or Member is waived in accordance with section 8416(a). "(2) Paragraph (1) does not apply in the case of an employee or Member if such employee or Member has a former spouse who would become entitled to an annuity under section 8445 as a survivor of such employee or Member. "§ 8420a. Alternative forms of annuities "(a) The Office shall prescribe regulations under which an employee or Member may, at the time of retiring under this subchapter, elect annuity benefits under this section instead of any other benefits under this subchapter, and any benefits under subchapter IV of this chapter, based on the service of the employee or Member. "(b) Subject to subsection (c), the Office shall by regulation provide for such alternative forms of annuities as the Office considers appropriate, except that among the alternatives offered shall be— "(1) an alternative which provides for— "(A) payment of the lump-sum credit (excluding interest) to the employee or Member; and "(B) payment of an annuity to the employee or Member for life; and "(2) in the case of an employee or Member who is married at the time of retirement, an alternative which provides for— "(A) payment of the lump-sum credit (excluding interest) to the employee or Member; and "(B) payment of an annuity to the employee or Member for life, with a survivor annuity payable for the life of a surviving spouse.

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license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


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Page:United States Statutes at Large Volume 100 Part 1.djvu/569

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 533

"(c) Each alternative provided for under subsection (b) shall, to the extent practicable, be designed such that the present value of the benefits provided under such alternative (including any lump-sum credit) is actuarially equivalent to the sum of— "(1) the present value of the annuity which would otherwise be provided under this subchapter, as computed under section 8415; and "(2) the present value of the annuity supplement which would otherwise be provided (if any) under section 8421. "(d) An employee or Member who, at the time of retiring under this subchapter— "(1) is married, shall be ineligible to make an election under this section unless a waiver is made under section 8416(a); or "(2) has a former spouse, shall be ineligible to make an election under this section if the former spouse is entitled to benefits under section 8445 or 8467 (based on the service of the employee or Member) under the terms of a decree of divorce or annulment, or a court order or court-approved property settlement incident to any such decree, with respect to which the Office has been duly notified. "(e) An employee or Member who is married at the time of retiring under this subchapter and who makes an election under this section may, during the 18-month period beginning on the date of retirement, make the election provided for under section 8416(d), subject to the deposit requirement thereunder. "§ 8421. Annuity supplement 5 USC 8421. "(a)(1) Subject to paragraph (3), an individual shall, if and while entitled to an annuity under subsection (a), (b), (d), or (e) of section 8412, or under section 8414(c), also be entitled to an annuity supplement under this section. "(2) Subject to paragraph (3), dn individual shall, if and while entitled to an annuity under section 8412(f), or under subsection (a) or (b) of section 8414, also be entitled to an annuity supplement under this section if such individual is at least the applicable minimum retirement age under section 8412(h). "(3)(A) An individual whose entitlement to an annuity under section 8412 or 8414 does not commence before age 62 is not entitled to an annuity supplement under this section. "(B) An individual entitled to an annuity supplement under this section ceases to be so entitled after the last day of the month preceding the first month for which such individual would, on proper application, be entitled to old-age insurance benefits under title II of the Social Security Act, but not later than the last day of 42 USC 401. the month in which such individual attains age 62. "(b)(1) The amount of the annuity supplement of an annuitant under this section for any month shall be equal to the product of— "(A) an amount determined under paragraph (2), multiplied by "(B) a fraction, as described in paragraph (3). "(2) The amount under this paragraph for an annuitant is an amount equal to the old-age insurance benefit which would be payable to such annuitant under title II of the Social Security Act (without regard to sections 203, 215(a)(7), and 215(d)(5) of such Act) 42 USC 403, 415. upon attaining age 62 and filing application therefor, determined as if the annuitant had attained such age and filed application therefor, and were a fully insured individual (as defined in section 214(a)

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Page:United States Statutes at Large Volume 100 Part 1.djvu/570

 100 STAT. 534 42 USC 414. 42 USC 402. 42 USC 415.

42 USC 415.

PUBLIC LAW 99-335—JUNE 6, 1986

of such Act), on January 1 of the year in which such annuitant's entitlement to any payment under this section commences, except that the reduction of such old-age insurance benefit under section 202(q) of such Act shall be the maximum applicable for an individual born in the same year as the annuitant. In computing the primary insurance amount under section 215 of such Act for purposes of this paragraph, the number of elapsed years (referred to in section 215(b)(2)(B)(iii) of such Act and used to compute the number of benefit computation years) shall not include years beginning with the year in which such annuitant's entitlement to any payment under this section commences, and— "(A) only basic pay for service performed (if any) shall be taken into account in computing the total wages and selfemployment income of the annuitant for a benefit computation year; "(B) for a benefit computation year which commences after the date of the separation with respect to which entitlement to the annuitant's annuity under this subchapter is based and before the date as of which such annuitant is treated, under the preceding sentence, to have attained age 62, the total wages and self-employment income of such annuitant for such year shall be deemed to be zero; and "(C) for a benefit computation year after age 21 which precedes the separation referred to in subparagraph (B), and during which the individual did not perform a full year of service, the total wages and self-employment income of such annuitant for such year shall be deemed to have been an amount equal to the product of— "(i) the average total wages of all workers for that year, multiplied by "(ii) a fraction— "(I) the numerator of which is the total basic pay of the individual for service performed in the first year thereafter in which such individual performed a full year of service; and "(II) the denominator of which is the average total wages of all workers for the year referred to in subclause (I). "(3) The fraction under this paragraph for any annuitant is a fraction— "(A) the numerator of which is the annuitant's total years of service (rounding a fraction to the nearest whole number, with Vi being rounded to the next higher number), not to exceed the number under subparagraph (B); and "(B) the denominator of which is 40. "(4) For the purpose of this subsection— "(A) the term 'benefit computation year' has the meaning provided in section 215(b)(2)(B)(i) of the Social Security Act; "(B) the term 'average total wages of all workers', for a year, means the average of the total wages, as defined and computed under section 215(b)(3)(A)(ii)(I) of the Social Security Act for such year; and "(C) the term 'service' does not include military service. "(c) An amount under this section shall, for purposes of section 8467, be treated in the same way as an amount computed under section 8415.

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Page:United States Statutes at Large Volume 100 Part 1.djvu/571

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 535

"§ 8421a. Reductions on account of earnings from work performed 5 USC 842ia. while entitled to an annuity supplement "(a) The amount of the annuity supplement to which an individual is entitled under section 8421 for any month (determined without regard to subsection (c) of such section) shall be reduced by the amount of any excess earnings of such individual which are required to be charged to such supplement for such month, as determined under subsection (b). "(b) The amount of an individual's excess earnings shall be charged to months as follows: "(1)(A) There shall be charged to each month of a year under subsection (a) an amount equal to the individual's excess earnings (as determined under paragraph (2) with respect to such year), divided by the number of the individual's supplement entitlement months for such year (as determined under paragraph (3)). "(B) Notwithstanding subparagraph (A), the amount charged to a month under subsection (a) may not exceed the amount of the annuity supplement to which the individual is entitled under section 8421 for such month (determined without regard to subsection (c) of such section). "(2) The excess earnings based on which reductions under subsection (a) shall be made with respect to an individual in a year— "(A) shall be equal to 50 percent of so much of such individual's earnings for the immediately preceding year as exceeds the applicable exempt amount for such preceding year; but "(B) may not exceed the total amount of the annuity supplement payments to which such individual was entitled for such preceding year under section 8421 (deterrrjned without regard to subsection (c) of such section, and wichout regard to this section). "(3)(A) Subject to subparagraph (B), the number of an individual's supplement entitlement months for a year shall be 12. "(B) The number determined under subparagraph (A) shall be reduced so as not to include any month after which such individual ceases to be entitled to an annuity supplement by reason of section 8421(a)(3)(B), relating to cessation of entitlement upon attaining age 62. "(4)(A) For purposes of this section, and except as provided in subparagraph (B), the 'earnings' and the 'applicable exempt amount' of an individual shall be determined in a manner consistent with applicable provisions of section 203 of the Social Security Act. 42 USC 403. "(B) For purposes of this section— "(i) in determining the excess earnings of any individual, only earnings attributable to periods during which such individual was entitled to an annuity supplement under section 8421 shall be considered; and "(ii) any earnings attributable to a period before attaining the applicable retirement age under section 8412(h) shall not be considered in determining the excess earnings of an individual who retires under section 8412(d) or (e), or section 8414(c).

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Page:United States Statutes at Large Volume 100 Part 1.djvu/572

 100 STAT. 536

Regulations. 5 USC 8422.

26 USC 3101.

PUBLIC LAW 99-335—JUNE 6, 1986

"(c) If, after an individual ceases to be entitled to an annuity supplement under section 8421 by reason of subsection (a)(3)(B) of such section, any portion of the individual's excess earnings remains outstanding, an amount not to exceed 25 percent of the amount otherwise payable to such individual under this chapter for each month shall be deducted from such monthly payment until the full amount of that outstanding portion has been accounted for. To the extent practicable, reductions under this subsection shall be made by a level percentage. "(d) The Office shall prescribe regulations under which this section shall be applied in the case of a reemployed annuitant. "§ 8422. Deductions from pay; contributions for military service "(a)(1) The employing agency shall deduct and withhold from basic pay of each employee and Member a percentage of basic pay determined in accordance with paragraph (2). "(2) The applicable percentage under this subsection for any pay period shall be— "(A) in the case of an employee (other than a law enforcement officer, firefighter, air traffic controller, or Congressional employee) a percentage equal to— "(i) 7 percent, minus "(ii) the percentage then in effect under section 3101(a) of the Internal Revenue Code of 1954 (relating to rate of tax for old-age, survivors, and disability insurance); and "(B) in the case of a Member, law enforcement officer, firefighter, air traffic controller, or Congressional employee, a percentage equal to— "(i) 7y2 percent, minus "(ii) the same percentage as would apply in the case of an employee under subparagraph (A)(ii). "(b) Each employee or Member is deemed to consent and agree to the deductions under subsection (a). Notwithstanding any law or regulation affecting the pay of an employee or Member, payment less such deductions is a full and complete discharge and acquittance of all claims and demands for regular services during the period covered by the payment, except the right to any benefits under this subchapter, or under subchapter IV or V of this chapter, based on the service of the employee or Member. "(c) The amounts deducted and withheld under this section shall be deposited in the Treasury of the United States to the credit of the Fund under such procedures as the Comptroller General of the United States may prescribe. "(d) Under such regulations as the Office may prescribe, amounts deducted under subsection (a) shall be entered on individual retirement records. "(e)(1) Each employee or Member who has performed military service before the date of the separation on which the entitlement to any annuity under this subchapter, or subchapter V of this chapter, is based may pay, in accordance with such regulations as the Office shall issue, to the agency by which the employee is employed, or, in the case of a Member or a Congressional employee, to the Secretary of the Senate or the Clerk of the House of Representatives, as appropriate, an amount equal to 3 percent of the amount of the basic pay paid under section 204 of title 37 to the employee or Member for each period of military service after December 1956. The amount of such payments shall be based on such evidence of

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Page:United States Statutes at Large Volume 100 Part 1.djvu/573

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 537

basic pay for military service as the employee or Member may provide, or if the Office determines sufficient evidence has not been so provided to adequately determine basic pay for military service, such payment shall be based on estimates of such basic pay provided to the Office under paragraph (4). "(2) Any deposit made under paragraph (1) more than two years after the later of— "(A) January 1, 1987; or "(B) the date on which the employee or Member making the deposit first becomes an employee or Member, shall include interest on such amount computed and compounded annually beginning on the date of the expiration of the two-year period. The interest rate that is applicable in computing interest in any year under this paragraph shall be equal to the interest rate that is applicable for such year under section 8334(e). "(3) Any payment received by an agency, the Secretary of the Senate, or the Clerk of the House of Representatives under this subsection shall be immediately remitted to the Office for deposit in the Treasury of the United States to the credit of the Fund. "(4) The Secretary of Defense, the Secretary of Transportation, the Secretary of Commerce, or the Secretary of Health and Human Services, as appropriate, shall furnish such information to the Office as the Office may determine to be necessary for the administration of this subsection. "§ 8423. Government contributions 5 USC 8423. "(a)(1) Each employing agency having any employees or Members subject to section 8422(a) shall contribute to the Fund an amount equal to the sum of— "(A) the product of— "(i) the normal-cost percentage, as determined for employees (other than employees covered by subparagraph (B)), multiplied by "(ii) the aggregate amount of basic pay payable by the agency, for the period involved, to employees (under clause (i)) who are within such agency; and "(B) the product of— "(i) the normal-cost percentage, as determined for Members, Congressional employees, law enforcement officers, firefighters, air traffic controllers, military reserve technicians, and employees under sections 302 and 303 of the Central Intelligence Agency Retirement Act of 1964 for Post, pp. 625, Certain Employees, multipled by 626. "(ii) the aggregate amount of basic pay payable by the agency, for the period involved, to employees and Members (under clause (i)) who are within such agency. "(2) In determining any normal-cost percentage to be applied under this subsection, amounts provided for under section 8422 shall be taken into account. "(3) Contributions under this subsection shall be paid— "(A) in the case of law enforcement officers, firefighters, air traffic controllers, military reserve technicians, and other employees, from the appropriation or fund used to pay such law enforcement officers, firefighters, air traffic controllers, military reserve technicians, or other employees, respectively;

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Page:United States Statutes at Large Volume 100 Part 1.djvu/574

 100 STAT. 538

PUBLIC LAW 99-335—JUNE 6, 1986

"(B) in the case of elected officials, from an appropriation or fund available for payment of other salaries of the same office or establishment; and "(C) in the case of employees of the legislative branch paid by the Clerk of the House of Representatives, from the contingent fund of the House. "(4) A contribution to the Fund under this subsection shall be deposited under such procedures as the Comptroller General of the United States may prescribe. "(b)(1) The Office shall compute— "(A) the amount of the supplemental liability of the Fund with respect to individuals other than those to whom subparagraph (B) relates, and "(B) the amount of the supplemental liability of the Fund with respect to current or former employees of the United States Postal Service (and the Postal Rate Commission) and their survivors; as of the close of each fiscal year beginning after September 30, 1987. "(2) The amount of any supplemental liability computed under paragraph (1)(A) or (1)(B) shall be amortized in 30 equal annual installments, with interest computed at the rate used in the most recent valuation of the System. "(3) At the end of each fiscal year, the Office shall notify— "(A) the Secretary of the Treasury of the amount of the installment computed under this subsection for such year with respect to individuals under paragraph (1)(A); and "(B) the Postmaster General of the United States of the amount of the installment computed under this subsection for such year with respect to individuals under paragraph (1)(B). "(4)(A) Before closing the accounts for a fiscal year, the Secretary of the Treasury shall credit to the Fund, as a Government contribution, out of any money in the Treasury of the United States not otherwise appropriated, the amount under paragraph (3)(A) for such year. "(B) Upon receiving notification under paragraph (3)(B), the United States Postal Service shall pay the amount specified in such notification to the Fund. "(5) For the purpose of carrying out paragraph (1) with respect to any fiscal year, the Office may— "(A) require the Board of Actuaries of the Civil Service Retirement System to make actuarial determinations and valuations, make recommendations, and maintain records in the same manner as provided in section 8347(f); and "(B) use the latest actuarial determinations and valuations made by such Board of Actuaries. "(c) Under regulations prescribed by the Office, the head of an agency may request reconsideration of any amount determined to be payable with respect to such agency under subsection (a) or (b). Any such request shall be referred to the Board of Actuaries of the Civil Service Retirement System. The Board of Actuaries shall review the computations of the Office and may make any adjustment with respect to any such amount which the Board determines appropriate. A determination by the Board of Actuaries under this subsection shall be final.

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Page:United States Statutes at Large Volume 100 Part 1.djvu/575

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 539

"§ 8424. Lump-sum benefits; designation of beneficiary; order of 5 USC 8424. precedence "(a) Subject to subsection (b), an employee or Member who— "(1)(A) is separated from the service for at least 31 consecutive days; or "(B) is transferred to a position in which the individual is not subject to this chapter and remains in such a position for at least 31 consecutive days; "(2) files an application with the Office for payment of the lump-sum credit; "(3) is not reemployed in a position in which the individual is subject to this chapter at the time of filing the application; and "(4) will not become eligible to receive an annuity within 31 days after filing the application; is entitled to be paid the lump-sum credit. Except as provided in section 8420a, payment of the lump-sum credit to an employee or Member voids all annuity rights under this subchapter, and subchapters IV and V of this chapter, based on the service on which the lump-sum credit is based. "(b)(1) Payment of the lump-sum credit under subsection (a)— "(A) may be made only if any current spouse and any former spouse of the employee or Member are notified of the application by the employee or Member; and "(B) in any case in which there is a former spouse, shall be subject to the terms of a court decree of divorce, annulment, or legal separation issued with respect to such former spouse if— "(i) the decree expressly relates to any portion of the lump-sum credit involved; and "(ii) payment of the lump-sum credit would affect any right or interest of the former spouse with respect to a survivor annuity under section 8445, or to any portion of an annuity under section 8467. "(2)(A) Notification of a spouse or former spouse under this subsec- Regulations. tion shall be made in accordance with such requirements as the Office shall by regulation prescribe. "(B) Under the regulations, the Office may provide that paragraph (1)(A) may be waived with respect to a spouse or former spouse if the employee or Member establishes to the satisfaction of the Office that the whereabouts of such spouse or former spouse cannot be determined. "(3) The Office shall prescribe regulations under which this Regulations. subsection shall be applied in any case in which the Office receives two or more orders or decrees referred to in paragraph (l)(B)(i). "(c) Under regulations prescribed by the Office, an employee or Member, or a former employee or Member, may designate one or more beneficiaries under this section. "(d) Lump-sum benefits authorized by subsections (e) through (g) shall be paid to the individual or individuals surviving the employee or Member and alive at the date title to the payment arises in the following order of precedence, and the payment bars recovery by any other individual: "First, to the beneficiary or beneficiaries designated by the employee or Member in a signed and witnessed writing received in the Office before the death of such employee or Member. For this purpose, a designation, change, or cancellation of bene-

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Page:United States Statutes at Large Volume 100 Part 1.djvu/576

 100 STAT. 540

PUBLIC LAW 99-335—JUNE 6, 1986

ficiary in a will or other document not so executed and filed has no force or effect. "Second, if there is no designated beneficiary, to the widow or widower of the employee or Member. "Third, if none of the above, to the child or children of the employee or Member and descendants of deceased children by representation. "Fourth, if none of the above, to the parents of the employee or Member or the survivor of them. "Fifth, if none of the above, to the duly appointed executor or administrator of the estate of the employee or Member. "Sixth, if none of the above, to such other next of kin of the employee or Member as the Office determines to be entitled under the laws of the domicile of the employee or Member at the date of death of the employee or Member. For the purpose of this subsection, 'child' includes a natural child and an adopted child, but does not include a stepchild. "(e) If an employee or Member, or former employee or Member, dies— "(1) without a survivor, or "(2) with a survivor or survivors and the right of all survivors under subchapter IV terminates before a claim for survivor annuity under such subchapter is filed, the lump-sum credit shall be paid. "(f) If all annuity rights under this chapter (other than under subchapter III of this chapter) based on the service of a deceased employee or Member terminate before the total annuity paid equals the lump-sum credit, the difference shall be paid. "(g) If an annuitant dies, annuity accrued and unpaid shall be paid. "(h) Annuity accrued and unpaid on the termination, except by death, of the annuity of an annuitant or survivor shall be paid to that individual. Annuity accrued and unpaid on the death of a survivor shall be paid in the following order of precedence, and the payment bars recovery by any other person: "First, to the duly appointed executor or administrator of the estate of the survivor. "Second, if there is no executor or administrator, payment may be made, after 30 days from the date of death of the survivor, to such next of kin of the survivor as the Office determines to be entitled under the laws of the domicile of the survivor at the date of death. 5 USC 8425.

"§ 8425. Mandatory separation "(a) An air traffic controller who is otherwise eligible for immediate retirement under section 8412(e) shall be separated from the service on the last day of the month in which that air traffic controller becomes 56 years of age or completes 20 years of service if then over that age. The Secretary, under such regulations as the Secretary may prescribe, may exempt a controller having exceptional skills and experience as a controller from the automatic separation provisions of this subsection until that controller becomes 61 years of age. The Secretary shall notify the controller in writing of the date of separation at least 60 days before that date. Action to separate the controller is not effective, without the consent of the controller, until the last day of the month in which the 60-day notice expires.

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Page:United States Statutes at Large Volume 100 Part 1.djvu/577

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 541

"(b) A law enforcement officer or firefighter who is otherwise eligible for immediate retirement under section 8412(d) shall be separated from the service on the last day of the month in which that law enforcement officer or firefighter becomes 55 years of age or completes 20 years of service if then over that age. If the head of the agency judges that the public interest so requires, that agency head may exempt such an employee from automatic separation under this subsection until that employee becomes 60 years of age. The employing office shall notify the employee in writing of the date of separation at least 60 days before that date. Action to separate the employee is not effective, without the consent of the employee, until the last day of the month in which the 60-day notice expires. "(c) The President, by Executive order, may exempt an employee President of U.S. from automatic separation under this section if the President determines the public interest so requires. "SUBCHAPTER III—THRIFT SAVINGS PLAN "§ 8431. Definition 5 USC 8431. "Notwithstanding section 8401 of this, title, for the purpose of this subchapter, the term 'basic pay', when used with respect to an employee or Member, means the bgisic pay of the employee or Member established pursuant to law, without regard to any provision of law (except sections 5308 and 538200) of this title) limiting the rate of pay actually payable in any pay period (including any provision of law restricting the use of appropriated funds). "§ 8432. Contributions 5 USC 8432. "(a) An employee or Member may contribute to the Thrift Savings Fund in any pay period, pursuant to an election under subsection (b)(l), an amount not to exceed 10 percent of such individual's basic pay for such period. Contributions made under this subsection during any 6-month period for which an election period is provided under subsection 0))(1) shall be made each pay period during such 6-month period pursuant to a program of regular contributions provided in regulations prescribed by the Executive Director. "(b)(1)(A) The Executive Director shall prescribe regulations under Regulations, which employees and Members shall be afforded a reasonable period every 6 months to elect to make contributions under subsection (a), to modify the amount to be contributed under such subsection, or to terminate such contributions. An election to make such contributions shall remain in effect until modified or terminated. "(B) The amount to be contributed pursuant to an election under subparagraph (A) shall be the percentage of bgisic pay or amount designated by the employee or Member. "(2) Under the regulations— "(A) an employee or Member who has not previously been eligible to make an election under this subsection shall not become so eligible until the second period (described in paragraph (D) beginning after the date of commencing service as an employee or Member; "(B) an employee or Member whose appointment or election to a position or office in the Federal Government follows a previous period of service during which that individual met the requirements of subparagraph (A) shall be eligible to make an

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Page:U.S. Department of the Interior Annual Report 1880.djvu/41

Rh west of the Missouri River fills up there will be remunerative business enough for each one of them.

Particular attention is invited to the remarks of Mr. Nichols, the railroad engineer, in regard to the important subject of railroad accidents and their prevention, and the statistics furnished relative thereto.

As to the large increase of business on the railroads of the United States, the Auditor remarks that it has been mainly on the railroads of the Middle, Western, and Southwestern States, business on the railroads of the New England and Southern States not having materially increased. A comparative statement of the business of many principal lines east and west of the Mississippi River is also submitted.

The passenger traffic on the Union Pacific, Central Pacific, and Kansas Pacific Railroads reached its maximum in 1875, since which time it has greatly decreased, while the earnings for freight have continued to grow.

The business of the Sioux City and Pacific and Central Branch Union Pacific Railroads has increased to such an extent that an annual payment can be made hereafter by those companies on account of “5 per cent. of net earnings,” to be applied in liquidation of their debt due the United States.

Attention is called to the fact that many of the roads included in the act creating the bureau have neglected to furnish the reports called for; and it is suggested that patents for lands be refused to such companies as do not comply with the law.

The total amount of the “five per centum of net earnings” of the subsidized Pacific Railroads to December 31,1879, has reached the sum of $5,355,150.08, being an increase since last report of $638,884.85, while the debt of the same companies for bonds issued is as follows:

The Auditor gives detailed statements in regard to the sinking funds of the Union Pacific and Central Pacific Companies, showing the character and amount of investments; and, in view of the many difficulties attending a fair and equitable investment of these moneys, suggests that amounts covered into the sinking funds be credited, with interest at 6 per cent. per annum, payable semi-annually. The Auditor also calls attention to the delay in the settlement of the companies' accounts for transportation, the balance of unsettled accounts being so large as to be a serious loss to the companies in the matter of interest.

The Auditor publishes in his report departmental circulars affecting Pacific and other railroads, laws of the United States affecting railroads and telegraphs, and recent decisions of the Supreme Court relating to the same subjects.

Under the recent decision of the Supreme Court of the United States


text:
Page:United States Statutes at Large Volume 100 Part 1.djvu/578

 100 STAT. 542

PUBLIC LAW 99-335—JUNE 6, 1986

election under this subsection notwithstanding any period of separation; "(C) an employee or Member who elects under subparagraph (D) to terminate contributions shall not again become eligible to make an election under this subsection until the second period (described in paragraph (1)) commencing after the election to terminate; and "(D) an election to terminate may be made under this subparagraph at any time other than during a period afforded under paragraph (1). "(3) Notwithstanding paragraph (2)(A), an employee or Member who elects to become subject to this chapter under section 301 of the Federal Employees' Retirement System Act of 1986 may make the first election for the purpose of subsection (a) during the period prescribed for such purpose by the Executive Director. The period prescribed by the Executive Director shall commence on the date on which the employee or Member makes the election to become subject to this chapter. "(4) Notwithstanding paragraph (2)(A), an employee or Member who is an employee or Member on January 1, 1987, and has creditable service described in section 8411(b)(2) of this title may make the first election for the purpose of subsection (a) during the election period prescribed for such purpose by the Executive Director. The Executive Director shall prescribe an election period for such purpose which shall commence on January 1, 1987. An election by such an employee or Member during that election period shall be effective on the first day of the employee's or Member's first pay period which begins after the last day of that election period. "(c)(1) At the end of the pay period that includes the first date on which an employee or Member may make contributions under subsection (a) (without regard to whether the employee or Member has elected to make such contributions during such pay period), and at the end of each succeeding pay period, the employing agency shall contribute to the Thrift Savings Fund for the benefit of such employee or Member the amount equal to 1 percent of the bsisic pay of such employee or Member for such pay period. "(2)(A) In addition to contributions made under paragraph (1), the employing agency of an employee or Member who contributes to the Thrift Savings Fund under subsection (a) for any pay period shall make a contribution to the Thrift Savings Fund for the benefit of such employee or Member. The employing agency's contribution shall be made at the end of such pay period. "(B) The amount contributed under subparagraph (A) by an employing agency with respect to a contribution of an employee or Member during any pay period shall be the amount equal to the sum of— "(i) such portion of the total amount of the employee's or Member's contribution as does not exceed 3 percent of such employee's or Member's basic pay for such period; and "(ii) one-half of such portion of the amount of the employee's or Member's contribution as exceeds 3 percent, but does not exceed 5 percent, of such employee's or Member's basic pay for such pay period. "(3)(A) There shall be contributed to the Thrift Savings Fund on behalf of each employee or Member described in subparagraph (B) the amount determined under subparagraph (C).

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Page:United States Statutes at Large Volume 100 Part 1.djvu/579

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 543

"(B) An employee or Member referred to in subparagraph (A) is an employee or Member who— "(i) is an employee or Member on January 1, 1987; "(ii) has creditable service described in section 8411(b)(2) of this title; and "(iii) has not received a refund of the amount of the retirement deductions made with respect to such service under section 204 of the Federal Employees' Retirement Contribution Temporary Adjustment Act of 1983. 5 USC 8331 note. "(C) The amount referred to in subparagraph (A) in the case of an employee or Member is equal to the sum of— "(i) 1 percent of the total basic pay paid to such employee or Member for service described in section 8411(b)(2) of this title; and "(ii) interest on such amount computed with respect to such service in the manner provided in paragraphs (2) and (3) of section 8334(e) of this title. "(D) The Secretary of the Treasury shall credit to the Thrift Savings Fund, out of any sums in the Treasury not otherwise appropriated, the amounts determined by the Director to be necessary to carry out this paragraph. "(d) Notwithstanding any other provision of this section, no contribution may be made under this section for any year to the extent that such contribution, when added to prior contributions for such year, exceeds any limitation under section 415 of the Internal Revenue Code of 1954. 26 USC 415. "(e) The sums required to be contributed to the Thrift Savings Fund by an employing agency under subsection (c) for the benefit of an employee or Member shall be paid from the appropriation or fund available to such agency for payment of salaries of the employee's or Member's office or establishment. When an employee or Member in the legislative branch is paid by the Clerk of the House of Representatives, the Clerk may pay from the contingent fund of the House of Representatives the contribution that otherwise would be contributed from the appropriation or fund used to pay the employee or Member. "(f) Amounts contributed by an employee or Member under subsection (a) and amounts contributed with respect to such employee or Member under subsection (c) shall be deposited in the Thrift Savings Fund to the credit of that employee's or Member's account in accordance with such procedures as the Comptroller General of the United States may, in consultation with the Executive Director, prescribe in regulations. "(g)(1) Except as provided in paragraphs (2) and (3), all contributions made under this section shall be fully nonforfeitable when made. "(2) Contributions made for the benefit of an employee under subsection (c)(1) and all earnings attributable to such contributions shall be forfeited if the employee separates from Government employment before completing— "(A) 2 years of civilian service in the case of an employee who, at the time of separation, is serving in— "(i) a position in the Senior Executive Service as a noncareer appointee (as defined in section 3132(a)(7) of this title);

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Page:United States Statutes at Large Volume 100 Part 1.djvu/580

 100 STAT. 544

PUBLIC LAW 99-335—JUNE 6, 1986

"(ii) a position listed in section 5312, 5313, 5314, 5315, or 5316 of this title or a position placed in level IV or V of the Executive Schedule under section 5317 of this title; or "(iii) a position in the Executive branch which is excepted from the competitive service by the Office by reason of the confidential and policy-determining character of the position; or "(B) 3 years of civilian service in the case of an employee who is not serving in a position described in subparagraph (A) at the time of separation. "(3) Contributions made for the benefit of a Member or Congressional employee under subsection (c)(1) and all earnings attributable to such contributions shall be forfeited if the Member or Congressional employee separates from Government employment before completing 2 years of civilian service. "(h) No transfers or contributions may be made to the Thrift Savings Fund except as provided in this chapter or section 8351 of this title. 5 USC 8433.

5 USC 8101.

"§ 8433. Benefits and election of benefits "(a) An employee or Member who separates from Government employment is entitled to the amount of the balance in the employee's or Member's account (except for the portion of such amount forfeited under section 8432(g) of this title, if any) as provided in this section. "(b) Subject to section 8435 of this title, any employee or Member who separates from Government employment entitled to an immediate annuity under subchapter II of this chapter, any employee or Member who separates from Government employment entitled to benefits under subchapter I of chapter 81 of this title, and any employee or Member who is entitled to receive disability benefits under subchapter V of this chapter is entitled and may elect— "(1) to receive an immediate annuity from the Thrift Savings Fund; "(2) to defer the commencement of the payment of an annuity from the Thrift Savings Fund until such date as the employee or Member specifies, but not later than April 1 of the year following the year in which the employee or Member becomes 70 V years of age; 2 "(3) to withdraw the amount of the balance in the employee's or Member's account in the Thrift Savings Fund in one or more substantially equal payments to be made not less frequently than annually and to commence before April 1 of the year following the year in which the employee or Member becomes 70 V years of age; or 2 "(4) to transfer the amount of the balance in the employee's or Member's account to an eligible retirement plan as provided in subsection (e). "(c) Subject to section 8435 of this title, any employee or Member who separates from Government employment entitled to a deferred annuity under subchapter II of this chapter is entitled and may elect— "(1) to receive an immediate annuity from the Thrift Savings Fund; "(2) to defer the commencement of the payment of an annuity from the Thrift Savings Fund until such date as the employee or Member specifies, but not later than April 1 of the year

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Page:United States Statutes at Large Volume 100 Part 1.djvu/581

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 545

following the year in which the employee or Member becomes 70 ¥2 years of age; "(3) to withdraw the amount of the balance in the employee's or Member's account in the Thrift Savings Fund in one or more substantially equal payments to be made not less frequently than annually and to commence during any period which (A) commences on or after the date on which payment of the employee's or Member's annuity under subchapter II of this chapter commences, and (B) ends not later than April 1 of the year following the year in which the employee or Member becomes lOVz years of age; or "(4) to transfer the amount of the balance in the employee's or Member's account to an eligible retirement plan as provided in subsection (e). "(d) Subject to section 8435 of this title, any employee or Member who separates from Government employment before becoming entitled to a deferred annuity under subchapter II of this chapter shall transfer the amount of the balance in the employee's or Member's account to an eligible retirement plan as provided in subsection (e). "(e)(1) The Executive Director shall make each transfer elected under subsection (b)(4) or (c)(4) or required under subsection (d) directly to an eligible retirement plan or plans (as defined in section 402(a)(5)(E) of the Internal Revenue Code of 1954) identified by the 26 USC 402. employee, Member, former employee, or former Member for whom the transfer is made. "(2) A transfer may not be made for an employee. Member, former employee, or former Member under paragraph (1) until the Executive Director receives from that individual the information required by the Executive Director specifically to identify the eligible retirement plan or plans to which the transfer is to be made. "(f)(1) Subject to paragraph (3)(A) and subsections (a) and (d) of section 8435 of this title, an employee or Member may change an election previously made under this subchapter. "(2) Subject to paragraph (3)(B) and section 8435(d) of this title, a former employee or Member who has made an election pursuant to subsection (b)(2) or (c)(2) may modify the date specified in such election or in a previous modification under this paragraph. "(3)(A) A former employee or Member may not change an election under this section on or after the date on which a payment is made in accordance with such election or, in the case of an election to receive an annuity, the date on which an annuity elected by the former employee or Member commences. "(B) A modification of a date may not be made under paragraph (2) on or after such date and may not specify a date for the commencement of an annuity earlier than 1 month after the date on which the modification is submitted to the Executive Director. "(g) If an employee or Member (or former employee or Member) dies without having made an election under this section or after having elected an annuity under this section but before making an election under section 8434 of this title, an amount equal to the value of that individual's account (as of death) shall, subject to any decree, order, or agreement referred to in section 8435(d)(2) of this title be paid in a manner consistent with section 8424(d) of this title. "(h) Unless otherwise elected under this section, benefits under this subchapter shall be paid as an annuity commencing for an employee. Member, former employee, or former Member on February 1 of the year following the latest of the year in which—

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Page:Narrative of an Official Visit to Guatemala.djvu/102

82 There are many villages in which mass is not said more than once a year.

The population of the five states of the federation, amounting to 2,000,000, is greater than the world supposed; but the census taken by the Spaniards was always incorrect and under the mark, as the tribute or capitation tax, exacted from the Indians, caused them to suppress their number and amount. This tribute was at the rate of three dollars a year on every male from the age of eighteen to fifty. The last census was taken since its abolition, but the number was still considered short of the actual population, who might have been induced to suppress their returns under the apprehension of the renewal of that tax, or of the substitution of another in its stead.

The Englishmen who were residing at Sonsonate were Mr. Banchard, (who had married a young lady of the country, a niece of the Padre Zelaya, superior of the Augustine monastery,) Mr. Freere, Mr.


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Page:United States Statutes at Large Volume 100 Part 1.djvu/582

 100 STAT. 546

26 USC 72. 5 USC 8434.

Regulations.

PUBLIC LAW 99-335—JUNE 6, 1986

"(1) the employee, Member, former employee, or former Member becomes 65 years of age; "(2) occurs the tenth anniversary of the year in which the employee, Member, former employee, or former Member became subject to this subchapter; or "(3) the employee, Member, former employee, or former Member separates from Government employment. "(i)(l) At any time after December 31, 1987, and before separation, an employee or Member may apply to the Board for permission to borrow from the employee's or Member's account an amount not exceeding the value of that portion of such account which is attributable to contributions made by the employee or Member under section 8432(a) of this title. "(2) An application under this subsection may be approved only for— "(A) the purchase of a primary residence; "(B) educational expenses; "(C) medical expenses; or "(D) financial hardship. "(3) Loans under this subsection shall be subject to such conditions as the Board may prescribe consistent with section 408(b)(l) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)(1)). The conditions shall be included in regulations issued by the Executive Director. "(4) A loan may not be made under this subsection to the extent that the loan would be treated as a taxable distribution under section 72(p) of the Internal Revenue Code of 1954. "(5) A loan may not be made under this subsection unless the requirements of section 8435(0 of this title are satisfied. "§ 8434. Annuities: methods of payment; election; purchase "(a)(1) The Board shall prescribe methods of payment of annuities under this subchapter. "(2) The methods of payment prescribed under paragraph (1) shall include, but not be limited to— "(A) a method which provides for the payment of a monthly annuity only to an annuitant during the life of the annuitant; "(B) a method which provides for the payment of a monthly annuity to an annuitant for the joint lives of the annuitant and the spouse of the annuitant and an appropriate monthly annuity to the one of them who survives the other of them for the life of the survivor; "(C) a method described in subparagraph (A) which provides annual increases in the amount of the annuity payable; "(D) a method described in subparagraph (B) which provides annual increases in the amount of the annuity payable; and "(E) a method which provides for the payment of a monthly annuity— (i) to the annuitant for the joint lives of the annuitant and an individual who is designated by the annuitant under regulations prescribed by the Executive Director and (I) is a former spouse of the annuitant, or (II) has an insurable interest in the annuitant; and "(ii) to the one of them who survives the other of them for the life of the survivor. "(b) Subject to section 8435(c) of this title, under such regulations as the Executive Director shall prescribe, an employee, Member,

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text: The Yellow Book/Volume 6/The Screen

title: The Yellow Book/Volume 6/The Screen


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Page:United States Statutes at Large Volume 100 Part 1.djvu/583

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 547

former employee, or former Member who elects under section 8433 of this title to receive an annuity under this subchapter shall elect, on or before the date on which the annuity commences, one of the methods of payment prescribed under subsection (a). "(c) Notwithstanding an elimination of a method of payment by the Board— "(1) an employee. Member, former employee, or former Member who is entitled under section 8412 of this title to an immediate annuity not reduced under section 8415(f) of this title may elect the eliminated method if the elimination of such method became effective less than 5 years before the date on which the annuity commences; and "(2) any other employee. Member, former employee, or former Member may elect such method of payment for amounts contributed by or on behalf of the employee, Member, former employee, or former Member under section 8432 of this title before such effective date and for earnings attributable to such amounts. "(d)(1) At the time an annuity is to commence under this subchapter, the Executive Director shall expend the balance in the annuitant's account to purchase an annuity contract from any entity which, in the normal course of its business, sells and provides annuities. "(2) The Executive Director shall assure, by contract entered into Contracts. with each entity from which an annuity contract is purchased under paragraph (1), that the annuity shall be provided in accordance with the provisions of this subchapter and subchapter VII of this chapter. "(3) An annuity contract purchased under paragraph (1) shall include such terms and conditions as the Executive Director requires for the protection of the annuitant. "(4) The Executive Director shall require, from each entity from which an annuity contract is purchased under paragraph (1), a bond or proof of financial responsibility sufficient to protect the annuitant. "§ 8435. Protections for spouses and former spouses 5 USC 8435. "(a)(1)(A) A married employee or Member (or former employee or Member) may make an election under subsection (b)(3), (b)(4), (c)(3), or (c)(4) of section 8433 of this title or change an election previously made under subsection (b)(1), (b)(2), (c)(D, or (c)(2) of such section only if the employee or Member (or former employee or Member) satisfies the requirements of subparagraph (B). "(B) An employee or Member (or former employee or Member) may make an election or change referred to in subparagraph (A) if the employee or Member and the employee's or Member's spouse (or the former employee or Member and the former employee's or Member's spouse) jointly waive, by written election, any right which the spouse may have to a survivor annuity with respect to such employee or Member (or former employee or Member) under section 8434 of this title or subsection (c). "(2) Paragraph (1) shall not apply to an election or change of election by an employee or Member (or former employee or Member) who establishes to the satisfaction of the Executive Director (at the time of the election or change and in accordance with regulations prescribed by the Executive Director)— "(A) that the spouse's whereabouts cannot be determined; or

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Page:United States Statutes at Large Volume 100 Part 1.djvu/584

 100 STAT. 548

PUBLIC LAW 99-335—JUNE 6, 1986

"(B) that, due to exceptional circumstances, requiring the spouse's waiver would otherwise be inappropriate. "(b)(1) Except as provided in paragraph (2), a transfer may be made by an employee or Member (or former employee or Member) under section 8433(d) of this title only after the Executive Director notifies any current spouse and each former spouse of the employee or Member (or former employee or Member), if any, that the transfer is to be made. "(2) Paragraph (1) may be waived with respect to a spouse or former spouse if the employee or Member (or former employee or Member) establishes to the satisfaction of the Executive Director that the whereabouts of such spouse or former spouse cannot be determined. "(c)(1) Notwithstanding any election under subsection (b) of section 8434 of this title, the method described in subsection (a)(2)(B) of such section (or, if more than one form of such method is available, the form which the Board determines to be the one which provides for a surviving spouse a survivor annuity most closely approximating the annuity of a surviving spouse under section 8442 of this title) shall be deemed the applicable method under such subsection (b) in the case of an employee. Member, former employee, or former Member who is married on the date on which the employee's. Member's, former employee's, or former Member's annuity commences under this subchapter. "(2) Paragraph (1) shall not apply— "(A) in the case of an employee or Member retiring under section 8412, 8413, 8414, or 8451 of this title if— "(i) a joint waiver of such method is made, in writing, by the employee or Member and the spouse; or "(ii) the employee or Member waives such method, in writing, after establishing to the satisfaction of the Executive Director that circumstances described in subsection (a)(2)(A) or (a)(2)(B) make the requirement of a joint waiver inappropriate; or "(B) in the case of an employee or Member not covered by subparagraph (A), if the employee or Member waives such method after— "(i) having provided notification to the spouse of intent to waive; or "(ii) establishing to the satisfaction of the Executive Director that the whereabouts of such spouse cannot be determined. "(d)(1) An election, change of election, or modification of the commencement date of a deferred annuity shall not be effective under this subchapter and a transfer may not be made under section 8433(d) of this title to the extent that the election, change, modification, or transfer conflicts with any court decree, order, or agreement described in paragraph (2). "(2) A court decree, order, or agreement referred to in paragraph (1) is, with respect to an employee or Member (or former employee or Member), a court decree of divorce, annulment, or legal separation issued in the case of such employee or Member (or former employee or Member) and any former spouse of the employee or Member (or former employee or Member) or any court order or court-approved property settlement agreement incident to such decree if—

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Page:United States Statutes at Large Volume 100 Part 1.djvu/585

 PUBLIC LAW 9 9 - 3 3 5 ~ J U N E 6, 1986

100 STAT. 549

"(A) the decree, order, or agreement expressly relates to any portion of the balance in the employee's or Member's (or former employee's or Member's) account; and "(B) notice of the decree, order, or agreement was received by the Executive Director before— "(i) the date on which payment is made, or "(ii) in the case of an annuity, the date on which the annuity commences, in accordance with the election, change, modification, or contribution referred to in paragraph (1). "(3) The Executive Director shall prescribe regulations under Regulations. which this subsection shall be applied in any case in which the Executive Director receives two or more decrees, orders, or agreements referred to in paragraph (1). "(e)(1) Subject to paragraphs (2) through (7), a former spouse of a deceased employee or Member (or a deceased former employee or Member) who died after performing 18 or more months of service and a former spouse of a deceased former employee or Member who died entitled to an immediate or deferred annuity under subchapter II of this chapter is entitled to a survivor annuity under this subsection if and to the extent that— "(A) an election under section 8434(a)(2)(E) of this title, or "(B) any court decree, order, or agreement (described in subsection (d)(2), without regard to subparagraph (B) of such subsection) which relates to such deceased individual and such former spouse, expressly provides for such survivor annuity. "(2) Paragraph (1) shall apply only to payments made by the Executive Director after the date on which the Executive Director receives written notice of the election, decree, order, or agreement, and such additional information and documentation as the Executive Director may require. "(3) The amount of the survivor annuity payable from the Thrift Savings Fund to a former spouse of a deceased employee. Member, former employee, or former Member under this section may not exceed the excess, if any, of— "(A) the amount of the survivor annuity determined for a surviving spouse of the deceased employee, Member, former employee, or former Member under the method described in subsection (c)(1), over "(B) the total amount of all other survivor annuities payable under this subchapter to other former spouses of such deceased employee. Member, former employee, or former Member based on the order of precedence provided in paragraph (4). "(4) If more than one former spouse of a deceased employee, Member, former employee, or former Member is entitled to a survivor annuity pursuant to this subsection, the amount of each such survivor annuity shall be limited appropriately to carry out paragraph (3) in the order of precedence established for the entitlements by the chronological order of the dates on which elections are properly made pursuant to section 8434(a)(2)(E) of this title and the dates on which the court decrees, orders, or agreements applicable to the entitlement were issued, as the case may be. "(5) Subsections (c) and (d) of section 8445 of this title shall apply to an entitlement of a former spouse to a survivor annuity under this subsection.

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Page:United States Statutes at Large Volume 100 Part 1.djvu/586

 100 STAT. 550

Loans.

PUBLIC LAW 99-335—JUNE 6, 1986

"(6) For the purposes of this section, a court decree, order, or agreement or an election referred to in subsection (a) of this section shall not be effective, in the case of a former spouse, to the extent that the election is inconsistent with any joint waiver previously executed with respect to such former spouse under subsection (a)(2) or (c)(2). "(7) Any payment under this subsection to any individual bars recovery by any other individual. "(f)(1)(A) A loan may be made to a married employee or Member under section 8433(i) of this title only if the employee's or Member's spouse consents to such loan in writing. "(B) A consent under subparagraph (A) shall be irrevocable with respect to the loan to which the consent relates. "(C) Subparagraph (A) shall not apply to a loan to an employee or Member who establishes to the satisfaction of the Executive Director (at the time the employee or Member applies for such loan and in accordance with regulations prescribed by the Executive Director)— "(i) that the spouse's whereabouts cannot be determined; or "(ii) that, due to exceptional circumstances, requiring the employee or Member to seek the spouse's consent would otherwise be inappropriate. "(2) An application for a loan under section 8433(i) of this title shall not be approved if approval would have the result described in subsection (d)(1). "(g) Waivers and notifications required by this section and waivers of the requirements for such waivers and notifications (as authorized by this section) may be made only in accordance with procedures prescribed by the Executive Director. "(h) The protections provided by this section are in addition to the protections provided by section 8467 of this title.

5 USC 8436.

"§ 8436. Administrative provisions "(a) The Executive Director shall make or provide for payments and transfers in accordance with an election of an employee or Member under section 8433 or 8434(b) of this title or, if applicable, in accordance with section 8435 of this title. "(b) Any election, change of election, or modification of a deferred annuity commencement date made under this subchapter shall be in writing and shall be filed with the Executive Director in accordance with regulations prescribed by the Executive Director.

5 USC 8437

"§ 8437. Thrift Savings Fund "(a) There is established in the Treasury of the United States a Thrift Savings Fund. "(b) The Thrift Savings Fund consists of the sum of all amounts contributed under section 8432 of this title and all amounts deposited under section 8479(b) of this title, increased by the total net earnings from investments of sums in the Thrift Savings Fund or reduced by the total net losses from investments of the Thrift Savings Fund, and reduced by the total amount of payments made from the Thrift Savings Fund (including payments for administrative expenses). "(c) The sums in the Thrift Savings Fund are appropriated and shall remain available without fiscal year limitation— "(1) to invest under section 8438 of this title;

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Page:United States Statutes at Large Volume 100 Part 1.djvu/587

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 551

"(2) to pay benefits or purchase annuity contracts under this subchapter; "(3) to pay the administrative expenses of the Federal Retirement Thrift Investment Management System prescribed in subchapter VII of this chapter; "(4) to make distributions for the purposes of section 84400)) of this title; "(5) to make loans to employees and Members as authorized under section 8433(i) of this title; and "(6) to purchase insurance as provided in section 84790t))(2) of this title. "(d) Administrative expenses incurred to carry out this subchapter and subchapter VII of this chapter shall be paid first out of any sums in the Thrift Savings Fund forfeited under section 8432(g) of this title and then out of net earnings in such Fund attributable to sums contributed to such Fund under section 8432(c) of this title. "(e)(1) Subject to paragraphs (2) and (3), sums in the Thrift Savings Fund credited to the account of an employee, Member, former employee, or former Member may not be used for, or diverted to, purposes other than for the exclusive benefit of the employee, Member, former employee, or former Member or his beneficiaries under this subchapter. "(2) Except as provided in paragraph (3), sums in the Thrift Savings Fund may not be assigned or alienated and are not subject to execution, levy, attachment, garnishment, or other legal process. For the purposes of this paragraph, a loan made from such Fund to an employee or Member shall not be considered to be an assignment or alienation. "(3) Moneys due or payable from the Thrift Savings Fund to any individual and, in the case of an individual who is an employee or Member (or former employee or Member), the balance in the account of the employee or Member (or former employee or Member) shall be subject to legal process for the enforcement of the individual's legal obligations to provide child support or make alimony payments as provided in section 459 of the Social Security Act (42 U.S.C. 659). "(f) The sums in the Thrift Savings Fund shall not be appropriated for any purpose other than the purposes specified in this section and may not be used for any other purpose. "(g) All sums contributed to the Thrift Savings Fund by an employee or Member or by an employing agency for the benefit of such employee or Member and all net earnings in such Fund attributable to investment of such sums are held in such Fund in trust for such employee or Member.

Children and youth. Alimony. Law enforcement and crime.

"§ 8438. Investment of Thrift Savings Fund 5 USC 8438. "(a) For the purposes of this section— "(1) the term 'Common Stock Index Investment Fund' means the Common Stock Index Investment Fund established under subsection Ob)(l)(C); "(2) the term 'equity capital' means common and preferred stock, surplus, undivided profits, contingency reserves, and other capital reserves; "(3) the term 'Fixed Income Investment Fund' means the Fixed Income Investment Fund established under subsection a))(l)(B);

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Page:United States Statutes at Large Volume 100 Part 1.djvu/588

 100 STAT. 552

PUBLIC LAW 99-335—JUNE 6, 1986 "(4) the term 'Government Securities Investment Fund' means the Government Securities Investment Fund established under subsection (b)(1)(A); "(5) the term 'net worth' means capital, paid-in and contributed surplus, unassigned surplus, contingency reserves, group contingency reserves, and special reserves; "(6) the term 'plan' means an employee benefit plan, as defined in section 3(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(3)); "(7) the term 'qualified professional asset manager' means— "(A) a bank, as defined in section 202(a)(2) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)(2)) which— "(i) has the power to manage, acquire, or dispose of assets of a plan; and "(ii) has, as of the last day of its latest fiscal year ending before the date of a determination for the purpose of this clause, equity capital in excess of $1,000,000; "(B) a savings and loan association, the accounts of which are insured by the Federal Savings and Loan Insurance Corporation, which— "(i) has applied for and been granted trust powers to manage, acquire, or dispose of assets of a plan by a State or Government authority having supervision over savings and loan associations; and "(ii) has, as of the last day of its latest fiscal year ending before the date of a determination for the purpose of this clause, equity capital or net worth in excess of $1,000,000; "(C) an insurance company which— "(i) is qualified under the laws of more than one State to manage, acquire, or dispose of any assets of a plan; "(ii) has, as of the last day of its latest fiscal year ending before the date of a determination for the purpose of this clause, net worth in excess of $1,000,000; and "(iii) is subject to supervision and examination by a State authority having supervision over insurance companies; or "(D) an investment adviser registered under section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3) if the investment adviser has, on the last day of its latest fiscal year ending before the date of a determination for the purpose of this subparagraph, total client assets under its management and control in excess of $50,000,000, and— "(i) the investment adviser has, on such day, shareholder's or partner's equity in excess of $750,000; or "(ii) payment of all of the investment adviser's liabilities, including any liabilities which may arise by reason of a breach or violation of a duty described in section 8477 of this title, is unconditionally guaranteed by"(I) a person (as defined in section 8471(4) of this title) who directly or indirectly, through one or more intermediaries, controls, is controlled by, or

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Page:United States Statutes at Large Volume 100 Part 1.djvu/589

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 553

is under common control with the investment adviser and who has, on the last day of the person's latest fiscal year ending before the date of a determination for the purpose of this clause, shareholder's or partner s equity in an amount which, when added to the amount of the shareholder's or partner's equity of the investment adviser on such day, exceeds $750,000; (II) a qualified professional asset manager described in subparagraph (A), (B), or (C); or "(III) a broker or dealer registered under section 15 of the Securities Exchange Act of 1934 (15 U.S.C. 78o) that has, on the last day of the broker's or 15 USC 78o. dealer's latest fiscal year ending before the date of a determination for the purpose of this clause, net worth in excess of $750,000; and "(8) the term 'shareholder's or partner's equity', as used in paragraph (7)(D) with respect to an investment adviser or a person (as defined in section 8471(4) of this title) who is affiliated with the investment adviser in a manner described in clause (ii)(I) of such paragraph (7)(D), means the equity shown in the most recent balance sheet prepared for such investment adviser or affiliated person, in accordance with generally accepted accounting principles, within 2 years before the date on which the investment adviser's status as a qualified professional asset manager is determined for the purposes of this section. "(b)(1) The Board shall establish— "(A) a Government Securities Investment Fund under which sums in the Thrift Savings Fund are invested in securities of the United States Government issued as provided in subsection (f); "(B) a Fixed Income Investment Fund under which sums in the Thrift Savings Fund are invested in— "(i) insurance contracts; "(ii) certificates of deposits; or "(iii) other instruments or obligations selected by qualified professional asset managers, which return the amount invested and pay interest, at a specified rate or rates, on that amount during a specified period of time; and "(C) a Common Stock Index Investment Fund as provided in paragraph (2). "(2)(A) The Board shall select an index which is a commonly recognized index comprised of common stock the aggregate market value of which is a reasonably complete representation of the United States equity markets. "(B) The Common Stock Index Investment Fund shall be invested in a portfolio designed to replicate the performance of the index selected under subparagraph (A). The portfolio shall be designed such that, to the extent practicable, the percentage of the Common Stock Index Investment Fund that is invested in each stock is the same as the percentage determined by dividing the aggregate market value of all shares of that stock by the aggregate market value of all shares of all stocks included in such index. "(c)(1) Subject to subsection (e), the Executive Director shall invest the sums available in the Thrift Savings Fund for investment as provided in elections made under subsection (d).

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Page:United States Statutes at Large Volume 100 Part 1.djvu/590

 100 STAT. 554

PUBLIC LAW 99-335—JUNE 6, 1986

"(2) If an election has not been made with respect to any sums in the Thrift Savings Fund available for investment, the Executive Director shall invest such sums in the Government Securities Investment Fund. "(d)(1) At least twice each year, an employee or Member (or former employee or Member) may elect the investment funds referred to in subsection (b) into which the sums in the Thrift Savings Fund credited to such individual's account and not subject to subsection (e) are to be invested or reinvested. "(2) An election may be made under paragraph (1) only in accordance with regulations prescribed by the Executive Director and within such period as the Executive Director shall provide in such regulations. "(e)(l)(A) During each year specified under column 1 of table I set out in subparagraph (D), the Executive Director shall invest, with respect to each employee, Member, former employee, and former Member not less than the percentage determined under subparagraph (B) of the amount described in subparagraph (C) in the Government Securities Investment Fund. "(B) For the purposes of subparagraph (A), the minimum percentage applicable to investments during a year specified under column 1 of table I is the percentage which corresponds to such year under column 2 of table I. "(C) The amount to be invested as provided in subparagraph (A) in any year specified under column 1 of table I is the total amount contributed to the Thrift Savings Fund by an employee. Member, former employee, or former Member under section 8432(a) of this title and available for investment during such year. "(D) Table I is as follows: "TABLE I "Column 1 Year: 1987 1988 1989 1990 1991

Column 2 Minimum percentage: 100 80 60 40 20.

"(2)(A) During each year specified under column 1 of table II set out in subparagraph (D), the Executive Director shall invest, with respect to each employee. Member, former employee, and former Member not less than the percentage determined under subparagraph (B) of the amount described in subparagraph (C) in the Government Securities Investment Fund. "(B) For the purposes of subparagraph (A), the minimum percentage applicable to investments during a year specified under column 1 of table II is the percentage which corresponds to such year under column 2 of table II. "(C) The amount to be invested as provided in subparagraph (A) in any year specified under column 1 of table II is the total amount contributed to the Thrift Savings Fund for the benefit of an employee. Member, former employee, or former Member under section 8432(c) of this title and available for investment during such year. "(D) Table II is as follows:

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Page:United States Statutes at Large Volume 100 Part 1.djvu/591

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 555

"TABLE II "Column 1 Year: 1987-1992 1993 1994 1995 1996

Column 2 Minimum percentage: 100 80 60 40 20.

"(3)(A) Before 1992, the sums invested in the Government Securities Investment Fund as required by paragraph (1) and the earnings attributable to the investment of such sums may not be reinvested in any investment fund other than the Government Securities Investment Fund. "(B) Before 1997, the sums invested in the Government Securities Investment Fund as required by paragraph (2) and the earnings attributable to the investment of such sums may not be reinvested in any investment fund other than the Government Securities Investment Fund. "(fKD The Secretary of the Treasury is authorized to issue special interest-bearing obligations of the United States for purchase by the Thrift Savings Fund for the Government Securities Investment Fund. "(2)(A) Obligations issued for the purpose of this subsection shall have maturities fixed with due regard to the needs of such Fund as determined by the Executive Director, and shall bear interest at a rate equal to the average market yield (computed by the Secretary of the Treasury on the basis of market quotations as of the end of the calendar month next preceding the date of issue of such obligations) on all marketable interest-bearing obligations of the United States then forming a part of the public debt which are not due or callable earlier than 4 years after the end of such calendar month. "(B) Any average market yield computed under subparagraph (A) which is not a multiple of one-eighth of 1 percent, shall be rounded to the nearest multiple of one-eighth of 1 percent. "(g) The Board, other Government agencies, the Executive Director, an employee, a Member, a former employee, and a former Member may not exercise voting rights associated with the ownership of securities by the Thrift Savings Fund. "§ 8439. Accounting and information 5 USC 8439. "(a)(1) The Executive Director shall establish and maintain an account for each individual for whom contributions are made under section 8432(c)(l) of this title or who makes contributions to the Thrift Savings Fund under section 8351 of this title. "(2) The balance in an individual's account at any time is the excess of— "(A) the sum of— "(i) all contributions made to the Thrift Savings Fund by the individual under section 8432(a) or 8351 of this title; "(ii) all contributions made to such Fund for the benefit of the individual under section 8432(c) of this title; and "(iii) the total amount of the allocations made to and reductions made in the account pursuant to paragraph (3), over -' "(B) the amounts paid out of the Thrift Savings Fund with respect to such individual under this subchapter. "(3) Pursuant to regulations prescribed by the Executive Director, the Executive Director shall allocate to each account an amount equal to a pro rata share of the net earnings and net losses from each investment of sums in the Thrift Savings Fund attributable to sums credited to such account, reduced by an appropriate share of

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Page:United States Statutes at Large Volume 100 Part 1.djvu/592

 100 STAT. 556

Reports.

Regulations.

PUBLIC LAW 99-335—JUNE 6, 1986

the administrative expenses paid out of the net earnings under section 8437(d) of this title, as determined by the Executive Director. "(b)(1) For the purposes of this subsection, the term 'qualified public accountant shall have the same meaning as provided in section 103(a)(3)(D) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1023(a)(3)(D)). "(2) The Executive Director shall annually engage, on behalf of all individuals for whom an account is maintained, an independent qualified public accountant, who shall conduct an examination of all accounts and other books and records maintained in the administration of this subchapter and subchapter VII as the public accountant considers necessary to enable the public accountant to make the determination required by paragraph (3). The examination shall be conducted in accordance with generally accepted auditing standards and shall involve such tests of the accounts, books, and records as the public accountant considers necessary. "(3) The public accountant conducting an examination under paragraph (2) shall determine whether the accounts, books, and records referred to in such paragraph have been maintained in conformity with generally accepted accounting principles applied on a basis consistent with the manner in which such principles were applied during the examination conducted under such paragraph during the preceding year. The public accountant shall transmit to the Board and the Comptroller General of the United States a report on his examination, including his determination under this paragraph. "(4) In making a determination under paragraph (3), a public accountant may rely on the correctness of any actuarial matter certified by an enrolled actuary if the public accountant states his reliance in the report transmitted to the Board under such paragraph. "(c)(1) The Board shall prescribe regulations under which each individual for whom an account is maintained shall be furnished with— "(A) a periodic statement relating to the individual's account; and "(B) a summary description of the investment options under section 8438 of this title covering, and an evaluation of, each such option the 5-year period preceding the date as of which such evaluation is made. "(2) Information under this subsection shall be provided at least 30 calendar days before the beginning of each election period under section 8432(b)(1)(A) of this title, and in a manner designed to facilitate informed decisionmaking with respect to elections under sections 8432 and 8438 of this title. "(d) Each employee. Member, former employee, or former Member who elects to invest in the Common Stock Index Investment Fund or the Fixed Income Investment Fund described in paragraphs (1) and (3), respectively, of section 8438(a) of this title shall sign an acknowledgement prescribed by the Executive Director which states that the employee, Member, former employee, or former Member understands that an investment in either such Fund is made at the employee's. Member's, former employee's, or former Member's risk, that the employee. Member, former employee, or former Member is not protected by the Government against any loss on such investment, and that a return on such investment is not guaranteed by the Government.

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Page:United States Statutes at Large Volume 100 Part 1.djvu/593

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 557

"§ 8440. Tax treatment of the Thrift Savings Fund "(a) For purposes of the Internal Revenue Code of 1954— "(1) the Thrift Savings Fund shall be treated as a trust described in section 401(a) of such Code which is exempt from taxation under section 501(a) of such Code; "(2) any contribution to, or distribution from, the Thrift Savings Fund shall be treated in the same manner as contributions to or distributions from such a trust; and "(3) subject to the provisions of subsection O> and any dollar t) limitation on the application of section 402(a)(8) of such Code, contributions to the Thrift Savings Fund shall not be treated as distributed or made available to an employee or Member nor as a contribution made to the Fund by an employee or Member merely because the employee or Member has, under the provisions of this subchapter and section 8351 of this title, an election whether the contribution will be made to the Thrift Savings Fund or received by the employee or Member in cash. "(b)(1) Subsection (a)(3) shall not apply to the Thrift Savings Fund unless the Fund meets the antidiscrimination requirements (other than any requirement relating to coverage) applicable to arrangements described in section 401(k) of the Internal Revenue Code of 1954 and to matching contributions. "(2)(A) This subchapter shall not be treated as failing to meet the requirements of paragraph (1) for any year if the amount of the excess matching contributions and excess employee contributions for such year (and any income attributable to such contributions) is distributed before the close of the following year. Such contributions (and income) may be distributed without regard to any other provision of law. "(B) For purposes of subparagraph (A), the term 'excess matching contributions' means, with respect to any year, the excess of— "(i) the aggregate amount of contributions under section 8432(c) of this title actually made on behalf of highly compensated employees (as defined for purposes of section 401(k) of the Internal Revenue Code of 1954) for such year, over "(ii) the maximum amount of such contributions permitted under the limitations of paragraph (1) (determined by reducing contributions made on behalf of highly compensated employees in order of the matching contribution percentages beginning with the highest of such percentages). "(C) For purposes of subparagraph (A), the amount of excess employee contributions shall be determined under the principles of subparagraph (B). "(D) Any distribution of the excess matching contributions or excess employee contributions for any year shall be made to highly compensated employees on the basis of the respective portions of such amounts attributable to each of such employees. "(E) No early distribution tax, if any, under the Internal Revenue Code of 1954 shall be imposed on any amount required to be distributed under subparagraph (A). "(c) Subsection (a) shall not be construed to provide that any amount of the employee's or Member's basic pay which is contributed to the Thrift Savings Fund shall not be included in the term 'wages' for the purposes of section 209 of the Social Security Act or section 3121(a) of the Internal Revenue Code of 1954.

5 USC 8440 26 USC i et seq. 26 USC 401. 26 USC 501.

26 USC 402.

26 USC 401.

26 USC i et seq.

Ante, p. 288. 26 USC 3i2i.

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Page:United States Statutes at Large Volume 100 Part 1.djvu/594

 100 STAT. 558

PUBLIC LAW 99-335—JUNE 6, 1986 "SUBCHAPTER IV—SURVIVOR ANNUITIES

5 USC 8441.

"§ 8441. Definitions "For the purpose of this subchapter— "(1) the term 'widow' means the surviving wife of an employee, Member, or annuitant, or of a former employee or Member, who— "(A) was married to him for at least 9 months immediately before his death; or "(B) is the mother of issue by that marriage; "(2) the term 'widower' means the surviving husband of an employee. Member, or annuitant, or of a former employee or Member, who— "(A) was married to her for at least 9 months immediately before her death; or "(B) is the father of issue by that marriage; "(3) the term 'dependent', in the case of any child, means that the employee. Member, or annuitant involved was, at the time of death of the employee, Member, or annuitant either living with or contributing to the support of such child, as determined in accordance with such regulations as the Office shall prescribe; and "(4) the term 'child' means— "(A) an unmarried dependent child under 18 years of age, including (i) an adopted child, (ii) a stepchild but only if the stepchild lived with the employee, Member, or annuitant in a regular parent-child relationship, (iii) a recognized natural child, and (iv) a child who lived with and for whom a petition of adoption was filed by an employee. Member, or annuitant and who is adopted by the widow or widower of the employee. Member, or annuitant after the death of such employee. Member, or annuitant; "(B) such unmarried dependent child regardless of age who is incapable of self-support because of mental or physical disability incurred before age 18; or "(C) such unmarried dependent child between 18 and 22 years of age who is a student regularly pursuing a full-time course of study or training in residence in a high school, trade school, technical or vocational institute, junior college, college, university, or comparable recognized educational institution. For the purpose of this paragraph and section 8443, a child whose 22nd birthday occurs before July 1 or after August 31 of a calendar year, and while regularly pursuing such a course of study or training, is deemed to have become 22 years of age on the first day of July after that birthday. A child who is a student is deemed not to have ceased to be a student during an interim between school years if the interim is not more than 5 months and if such child shows to the satisfaction of the Office that such child has a bona fide intention of continuing to pursue a course of study or training in the same or different school during the school semester (or other period into which the school year is divided) immediately after the interim.

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Page:United States Statutes at Large Volume 100 Part 1.djvu/595

 PUBLIC LAW 99-335—JUNE 6, 1986

100 STAT. 559

"§ 8442. Rights of a widow or widower 5 USC 8442. "(a)(1) Except as provided in subsection (g), if an annuitant dies and is survived by a widow or widower, the widow or widower is entitled to an annuity equal to 50 percent of an annuity computed under section 8415 with respect to the annuitant, unless— "(A) the right to an annuity was waived under section 8416(a) (and no election was subsequently made under section 8416(d) nullifying the waiver); or "(B) in the case of a marriage after retirement, the annuitant did not file an election under section 8416(b) or (c), as the case may be. "(2) A spouse acquired after retirement is entitled to an annuity under this subsection (as provided in paragraph (1)) only upon electing this annuity instead of any other survivor benefit to which such spouse may be entitled under this subchapter or section 8424 or under another retirement system for Government employees. "(b)(1) If an employee or Member dies after completing at least 18 months of civilian service creditable under section 8411 and is survived by a widow or widower, the widow or widower is entitled to— "(A) an amount equal to the sum of— "(i) 50 percent of the final annual rate of basic pay (or of the average pay, if higher) of the employee or Member; and "(ii) $15,000 as adjusted under section 8462(e); and "(B) if the employee or Member completed at least 10 years of service, an annuity equal to 50 percent of an annuity computed under section 8415 with respect to the employee or Member, but without regard to subsection (f) of such section. "(2) The Office shall prescribe regulations under which the total Regulations. amount payable to a widow or widower under paragraph (I)(A) may, at the election of the widow or widower, be paid— "(A) in a lump sum; or "(B) on a monthly basis— "(i) over a period of 3 years beginning on the day after the employee's or Member's death; or "(ii) over any other period established under the regulations. Any method of payment provided for under subparagraph (B) shall be designed such that the present value of the benefits provided under such method is actuarially equivalent to the present value of a lump-sum payment under subparagraph (A). "(3) An amount payable under paragraph (I)(A) shall not be considered to be part of an annuity for purposes of this chapter. "(c)(1) If a former employee or Member dies after having separated from the service with title to a deferred annuity under section 8413 but before having established a valid claim for an annuity, and is survived by a widow or widower to whom married on the date of separation, the widow or widower may elect to receive— "(A) an annuity under paragraph (2); or "(B) the lump-sum credit, if the widow or widower is the individual who would be entitled to the lump-sum credit and if such widow or widower files application therefor with the Office. "(2)(A)(i) Subject to clause (ii) and subparagraph (B)(ii), the annuity of the widow or widower is equal to 50 percent of an annuity computed under section 8415 for the former employee or Member.

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Page:United States Statutes at Large Volume 100 Part 1.djvu/596

 100 STAT. 560

PUBLIC LAW 99-335—JUNE 6, 1986

"(iiXD In computing an amount under section 8415 for a former employee or Member (described in subclause (ID) in order to compute the annuity for a widow or widower under this subsection, the computation under section 8415 shall be made as if the former employee or Member had attained the applicable minimum retirement age under section 8412(h). "(II) This clause applies with respect to a former employee or Member who dies before having attained the applicable minimum retirement age under section 8412(h). "(B)(i) Notwithstanding the first sentence of subsection (d)(1), the annuity of the widow or widower of a former employee or Member under subparagraph (A)(ii) commences— "(I) on the day after the date on which the former employee or Member would have attained age 62; or "(II) if the widow or widower so designates in the election, as of the day after the death of the former employee or Member, "(ii) The present value of the annuity of a widow or widower who chooses the earlier commencement date under clause (i)(II) shall be actuarially equivalent to the present value of an annuity computed for the widow or widower, determined as if the commencement date under clause (i)(1) were applicable. "(3)(A) Paragraphs (1) and (2) shall apply only in the case of an employee or Member who completes at least 10 years of service. "(B) Nothing in this subsection shall be considered to affect the provisions of this chapter relating to a lump-sum credit in the case of the widow or widower of a former employee or Member who dies after completing less than 10 years of service. "(d)(1) The annuity of a widow or widower under this section commences on the day after the death of the individual on whose service such annuity is based. This annuity and the right thereto terminate on the last day of the month before the widow or widower— "(A) dies; or "(B) remarries before becoming 55 years of age. "(2) In the case of a widow or widower whose annuity under this section is terminated because of remarriage before becoming 55 years of age, the annuity shall be restored at the same rate commencing on the day the remarriage is dissolved by death, divorce, or annulment, if— "(A) the widow or widower elects to receive this annuity instead of any other survivor benefit to which such widow or widower may be entitled (under this subchapter or section 8424 or under another retirement system for Government employees) by reason of the remarriage; and "(B) any lump sum paid on termination of the annuity is returned to the Fund. "(e) The requirement in paragraphs (I)(A) and (2)(A) of section 8441 that the widow or widower of an annuitant, employee, or Member, or of a former employee or Member, have been married to such individual for at least 9 months immediately before the death of the individual in order to qualify as the widow or widower of such individual shall be deemed satisfied in any case in which the individual dies within the applicable 9-month period, if— "(1) the death of the individual was accidental; or "(2) the surviving spouse of the individual had been previously married to such individual and subsequently divorced, and the aggregate time married is at least 9 months.

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