§4065 Voluntary contribution account

Summary

Money a person voluntarily put into the Fund before February 15, 1981 is kept in a special account. The account equals what they paid plus interest compounded at 3 percent per year up to the date they leave the Service, or up to the date they claim it, or up to the start date of a deferred annuity, or up to their death — whichever comes first. When a participant becomes eligible for an annuity or deferred annuity, they must choose one of four options: get the account as a lump sum; use it to buy an extra life annuity; buy an extra life annuity and leave a cash payment at death to a named beneficiary; or buy an extra life annuity plus a life annuity for a named beneficiary on death with a guaranteed return equal to that cash payment. Any annuity option must be actuarially equal in value to the lump sum and is figured using mortality tables set by the Secretary of the Treasury. If a current or former participant applies for the lump sum before any extra annuity is paid, it must be paid then. If not, the account is paid when the person leaves the Service without an annuity or deferred annuity, or when a former participant dies or withdraws compulsory contributions. In case of death, payment follows the order of precedence in section 4055(f).