Title 38Veterans' BenefitsRelease 119-73

§719 Reduction of benefits of employees convicted of certain crimes

Title 38 › Part PART I— - GENERAL PROVISIONS › Chapter CHAPTER 7— - EMPLOYEES › Subchapter SUBCHAPTER I— - GENERAL EMPLOYEE MATTERS › § 719

Last updated Apr 6, 2026|Official source

Summary

The Secretary can stop counting some time an employee worked when figuring a retirement annuity under chapters 83 or 84 of title 5 if the employee was removed for poor performance or misconduct and is finally convicted of a felony that affected their job. Before doing this, the Secretary must give the person a notice and at least 10 business days to reply. If the person replies, the Secretary must issue the order within 5 business days after getting the reply. If the person does not reply, the Secretary must issue the order within 15 business days after sending the notice. A person whose annuity is cut can appeal that decision to the Director of the Office of Personnel Management under the Director’s rules. If someone left the job before a final removal decision, the Secretary may do the same thing under the same notice and timing rules. After the Secretary issues that order, the person must have 7 business days to appeal to the OPM Director, and the OPM Director must decide within 30 business days of getting the appeal. The OPM must recalculate the annuity within 37 business days after the Secretary’s final order. The person must be paid any lump-sum credit tied to the removed period. The Secretary and OPM will make rules about paying a spouse or children in some cases. Definitions: “covered service” = the time from when the Secretary finds the bad activity began until the person is removed or leaves before a final decision; “lump-sum credit” and “service” = the meanings used in title 5.

Full Legal Text

Title 38, §719

Veterans' Benefits — Source: USLM XML via OLRC

(a)(1)The Secretary shall order that the covered service of an employee of the Department removed from a position for performance or misconduct under section 713, 714, or 7461 of this title or any other provision of law shall not be taken into account for purposes of calculating an annuity with respect to such individual under chapter 83 or chapter 84 of title 5, if—
(A)the Secretary determines that the individual is convicted of a felony (and the conviction is final) that influenced the individual’s performance while employed in the position; and
(B)before such order is made, the individual is afforded—
(i)notice of the proposed order; and
(ii)an opportunity to respond to the proposed order by not later than ten business days following receipt of such notice; and
(C)the Secretary issues the order—
(i)in the case of a proposed order to which an individual responds under subparagraph (B)(ii), not later than five business days after receiving the response of the individual; or
(ii)in the case of a proposed order to which an individual does not respond, not later than 15 business days after the Secretary provides notice to the individual under subparagraph (B)(i).
(2)Any individual with respect to whom an annuity is reduced under this subsection may appeal the reduction to the Director of the Office of Personnel Management pursuant to such regulations as the Director may prescribe for purposes of this subsection.
(b)(1)The Secretary may order that the covered service of an individual who the Secretary proposes to remove for performance or misconduct under section 713, 714, or 7461 of this title or any other provision of law but who leaves employment at the Department prior to the issuance of a final decision with respect to such action shall not be taken into account for purposes of calculating an annuity with respect to such individual under chapter 83 or chapter 84 of title 5, if—
(A)the Secretary determines that individual is convicted of a felony (and the conviction is final) that influenced the individual’s performance while employed in the position; and
(B)before such order is made, the individual is afforded—
(i)notice of the proposed order;
(ii)opportunity to respond to the proposed order by not later than ten business days following receipt of such notice; and
(C)the Secretary issues the order—
(i)in the case of a proposed order to which an individual responds under subparagraph (B)(ii), not later than five business days after receiving the response of the individual; or
(ii)in the case of a proposed order to which an individual does not respond, not later than 15 business days after the Secretary provides notice to the individual under subparagraph (B)(i).
(2)Upon the issuance of an order by the Secretary under paragraph (1), the individual shall have an opportunity to appeal the order to the Director of the Office of Personnel Management before the date that is seven business days after the date of such issuance.
(3)The Director of the Office of Personnel Management shall make a final decision with respect to an appeal under paragraph (2) within 30 business days of receiving the appeal.
(c)Not later than 37 business days after the Secretary issues a final order under subsection (a) or (b) with respect to an individual, the Director of the Office of Personnel Management shall recalculate the annuity of the individual.
(d)Any individual with respect to whom an annuity is reduced under subsection (a) or (b) shall be entitled to be paid so much of such individual’s lump-sum credit as is attributable to the period of covered service.
(e)(1)The Secretary, in consultation with the Director of the Office of Personnel Management, shall prescribe regulations that may provide for the payment to the spouse or children of any individual referred to in subsection (a) or (b) of any amounts which (but for this subsection) would otherwise have been nonpayable by reason of such subsections.
(2)Regulations prescribed under paragraph (1) shall be consistent with the requirements of section 8332(o)(6) and 8411(l)(5) of title 5, as the case may be.
(f)In this section:
(1)The term “covered service” means, with respect to an individual subject to a removal for performance or misconduct under section 719 or 7461 of this title or any other provision of law, the period of service beginning on the date that the Secretary determines under such applicable provision that the individual engaged in activity that gave rise to such action and ending on the date that the individual is removed from or leaves a position of employment at the Department prior to the issuance of a final decision with respect to such action.
(2)The term “lump-sum credit” has the meaning given such term in section 8331(8) or section 8401(19) of title 5, as the case may be.
(3)The term “service” has the meaning given such term in section 8331(12) or section 8401(26) of title 5, as the case may be.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Prior section 719 and 720 were renumbered section 1919 and 1920 of this title, respectively.

Amendments

2024—Subsec. (e)(2). Pub. L. 118–192 substituted “section 8332(o)(6)” for “section 8332(o)(5)”.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 115–41, title II, § 203(b),
June 23, 2017, 131 Stat. 875, provided that: “Section 719 of title 38, United States Code, as added by subsection (a)(1), shall apply to any action of removal of an employee of the Department of Veterans Affairs under section 719 or 7461 of such title or any other provision of law, commencing on or after the date of the enactment of this Act [
June 23, 2017].”

Reference

Citations & Metadata

Citation

38 U.S.C. § 719

Title 38Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73