Title 38Veterans' BenefitsRelease 119-73

§7426 Retirement rights

Title 38 › Part PART V— - BOARDS, ADMINISTRATIONS, AND SERVICES › Chapter CHAPTER 74— - VETERANS HEALTH ADMINISTRATION—PERSONNEL › Subchapter SUBCHAPTER II— - COLLECTIVE BARGAINING AND PERSONNEL ADMINISTRATION › § 7426

Last updated Apr 6, 2026|Official source

Summary

People appointed to the Administration must be covered by the federal civil service retirement rules under either subchapter III of chapter 83 or subchapter II of chapter 84 of title 5, whichever applies. If someone retires under those rules after December 31, 1981 and they ever worked part-time in an Administration job, their average pay will use their basic pay rate as if it were a full‑time annual rate, and their regular annuity (before certain reductions) is multiplied by a fraction: their total full‑time equivalent service divided by their creditable service. Full‑time equivalent service means creditable service with any part‑time periods prorated. Full time is 80 hours per biweekly pay period. Survivor annuities are figured from that adjusted annuity. Part‑time work before April 7, 1986 by a registered nurse, physician assistant, or expanded‑function dental auxiliary is counted as full time.

Full Legal Text

Title 38, §7426

Veterans' Benefits — Source: USLM XML via OLRC

(a)Except as provided in subsection (b), persons appointed to the Administration shall be subject to the provisions of and entitled to benefits under subchapter III of chapter 83 of title 5 or subchapter II of chapter 84 of title 5, whichever is applicable.
(b)(1)In computing the annuity under subchapter III of chapter 83, or subchapter II of chapter 84, of title 5 of an individual who retires under such subchapter (other than under section 8337 or 8451 of such title) after December 31, 1981, and who served at any time on a less-than-full-time basis in a position in the Administration to which such individual was appointed under subchapter I—
(A)for the purpose of determining such individual’s average pay, as defined by section 8331(4) or 8401(3) of title 5, whichever is applicable, the annual rate of basic pay for full-time service shall be deemed to be such individual’s rate of basic pay; and
(B)the amount of such individual’s annuity as computed under section 8339 or 8415 of title 5 (before application of any reduction required by subsection (i) of section 8339) shall be multiplied by the fraction equal to the ratio that that individual’s total full-time equivalent service bears to that individual’s creditable service as determined under section 8332 or 8411 of title 5, whichever is applicable.
(2)For the purposes of paragraph (1)(B), an individual’s full-time equivalent service is the individual’s creditable service as determined under section 8332 or 8411 of title 5, whichever is applicable, except that any period of service of such individual served on a less-than-full-time basis shall be prorated based on the fraction such service bears to full-time service. For the purposes of the preceding sentence, full-time service shall be considered to be 80 hours of service per biweekly pay period.
(3)A survivor annuity computed under section 8341, or subchapter IV of chapter 84, of title 5 based on the service of an individual described in paragraph (1) shall be computed based upon such individual’s annuity as determined in accordance with such paragraph.
(c)The provisions of subsection (b) shall not apply to the part-time service before April 7, 1986, of a registered nurse, physician assistant, or expanded-function dental auxiliary. In computing the annuity under the applicable provision of law specified in that subsection of an individual covered by the preceding sentence, the service described in that sentence shall be credited as full-time service.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Provisions similar to those in this section were contained in section 4107(i) and 4109 of this title prior to the repeal of those sections as part of the complete revision of chapter 73 of this title by Pub. L. 102–40.

Amendments

2002—Subsec. (c). Pub. L. 107–135 added subsec. (c). 2000—Subsec. (c). Pub. L. 106–398 struck out subsec. (c) which read as follows: “The Secretary may authorize an exception to the restrictions in subsections (a), (b), and (c) of section 5532 of title 5 if necessary to meet special or emergency employment needs which result from a severe shortage of well-qualified candidates in physician positions, and registered nurse positions, which otherwise cannot be readily met. The authority of the Secretary under the preceding sentence with respect to registered-nurse positions expires on
December 31, 1994.” 1992—Subsec. (c). Pub. L. 102–585 substituted “
December 31, 1994” for “
September 30, 1992”.

Reference

Citations & Metadata

Citation

38 U.S.C. § 7426

Title 38Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73