§8345 — Title 5 Government Organization and Employees | U.S. Code

Summary

Says how annuity payments from the Fund are figured, when they start and stop, and who can get them. The yearly annuity is divided by 12 to get a monthly amount, and that monthly amount is rounded down to the next whole dollar and paid on the first business day of the month after the month (or period) it covers. An employee’s or Member’s annuity normally begins on the first day of the month after they leave service or after pay stops and they meet age and service rules. Other annuities begin on the first day of the month after the event that creates the right to payment. A retired person’s annuity ends on the day of death (or another ending event); a survivor’s annuity ends on the last day of the month before death (or another ending event). A person can refuse all or part of an annuity by filing a signed waiver with OPM and can cancel that waiver later; no payments are made while a waiver is in effect. Payments for minors or people legally unable to manage money may go to a court-appointed guardian or to a person OPM finds responsible for their care; OPM can delay direct payments if paying them would cause harm and must resume payments, including back pay, when a representative payee is appointed. OPM will not name someone as payee if that person was convicted under the listed criminal provisions. OPM will reduce monthly pay when rules cover service before January 1, 1969 that is also covered by a State retirement plan. Annuitants may make allotments or assignments from their annuity. Applications must arrive at OPM before the person’s 115th birthday; after death, claims must be filed within 30 years of the death or other qualifying event. Court orders for divorce, separation, or to enforce a judgment for child abuse can require OPM to pay part or all of an annuity to another person, but OPM acts only after getting written notice and required documents. OPM will also agree with any State (within 120 days of the State’s request) to withhold State income tax from a monthly annuity if the annuitant asks in writing; only one such request may be active at a time and no more than two requests are allowed per calendar year. Withholding changes or revocations take effect on the first day of the month after OPM processes them, but no later than the first day of the second month after receipt. Finally, certain transfers of contributions under the Foreign Service Act of 1980 are treated as a full and final payment under this chapter.

Title 5, §8345

Government Organization and Employees — Source: USLM XML via OLRC

(a)Each annuity is stated as an annual amount, one-twelfth of which, rounded to the next lowest dollar, constitutes the monthly rate payable on the first business day of the month after the month or other period for which it has accrued.

(b)(1)Except as otherwise provided—

(A)an annuity of an employee or Member commences on the first day of the month after—

(i)separation from the service; or

(ii)pay ceases and the service and age requirements for title to annuity are met; and

(B)any other annuity payable from the Fund commences on the first day of the month after the occurrence of the event on which payment thereof is based.

(2)The annuity of—

(A)an employee involuntarily separated from service, except by removal for cause on charges of misconduct or delinquency; and

(B)an employee or Member retiring under section 8337 of this title due to a disability;

(c)The annuity of a retired employee or Member terminates on the day death or other terminating event provided by this subchapter occurs. The annuity of a survivor terminates on the last day of the month before death or other terminating event occurs.

(d)An individual entitled to annuity from the Fund may decline to accept all or any part of the annuity by a waiver signed and filed with the Office of Personnel Management. The waiver may be revoked in writing at any time. Payment of the annuity waived may not be made for the period during which the waiver was in effect.

(e)(1)Payment due a minor, or an individual mentally incompetent or under other legal disability, may be made to the person (including an organization) who is constituted guardian or other fiduciary by the law of the State of residence of the claimant or is otherwise legally vested with the care of the claimant or his estate. If a guardian or other fiduciary of the individual under legal disability has not been appointed under the law of the State of residence of the claimant, payment may be made to any person (including an organization) who, in the judgment of the Office, is responsible for the care of the claimant and may appropriately receive such payments on behalf of the claimant, and the payment bars recovery by any other person.

(2)If the Office determines that direct payment of a benefit to an individual mentally incompetent or under other legal disability would cause substantial harm to the individual, the Office may defer or suspend direct payment of the benefit until such time as the appointment of a representative payee is made. The Office shall resume payment as soon as practicable, including all amounts due.

(f)The Office may not authorize a person to receive payments on behalf of a minor or individual of legal disability under subsection (e) if that person has been convicted of a violation of—

(1)section 8345a or 8466a;

(2)section 208 or 1632 of the Social Security Act (42 U.S.C. 408, 1383a); or

(3)section 6101 of title 38.

(g)The Office shall prescribe regulations to provide that the amount of any monthly annuity payable under this section accruing for any month and which is computed with regard to service that includes any service referred to in section 8332(b)(6) performed by an individual prior to January 1, 1969, shall be reduced by the portion of any benefits under any State retirement system to which such individual is entitled (or on proper application would be entitled) for such month which is attributable to such service performed by such individual before such date.

(h)An individual entitled to an annuity from the Fund may make allotments or assignments of amounts from his annuity for such purposes as the Office of Personnel Management in its sole discretion considers appropriate.

(i)(1)No payment shall be made from the Fund unless an application for benefits based on the service of an employee or Member is received in the Office of Personnel Management before the one hundred and fifteenth anniversary of his birth.

(2)Notwithstanding paragraph (1) of this subsection, after the death of an employee, Member, or annuitant, no benefit based on his service shall be paid from the Fund unless an application therefor is received in the Office of Personnel Management within 30 years after the death or other event which gives rise to title to the benefit.

(j)(1)Payments under this subchapter which would otherwise be made to an employee, Member, or annuitant based on service of that individual shall be paid (in whole or in part) by the Office to another person if and to the extent expressly provided for in the terms of—

(A)any court decree of divorce, annulment, or legal separation, or the terms of any court order or court-approved property settlement agreement incident to any court decree of divorce, annulment, or legal separation; or

(B)any court order or other similar process in the nature of garnishment for the enforcement of a judgment rendered against such employee, Member, or annuitant, for physically, sexually, or emotionally abusing a child.

(2)Paragraph (1) shall only apply to payments made by the Office under this subchapter after the date of receipt in the Office of written notice of such decree, order, other legal process, or agreement, and such additional information and documentation as the Office may prescribe.

(3)For the purpose of this subsection—

(A)the term “court” means any court of any State, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, or the Virgin Islands, and any Indian court;

(B)the term “judgment rendered for physically, sexually, or emotionally abusing a child” means any legal claim perfected through a final enforceable judgment, which claim is based in whole or in part upon the physical, sexual, or emotional abuse of a child, whether or not that abuse is accompanied by other actionable wrongdoing, such as sexual exploitation or gross negligence; and

(C)the term “child” means an individual under 18 years of age.

(k)(1)The Office shall, in accordance with this subsection, enter into an agreement with any State within 120 days of a request for agreement from the proper State official. The agreement shall provide that the Office shall withhold State income tax in the case of the monthly annuity of any annuitant who voluntarily requests, in writing, such withholding. The amounts withheld during any calendar quarter shall be held in the Fund and disbursed to the States during the month following that calendar quarter.

(2)An annuitant may have in effect at any time only one request for withholding under this subsection, and an annuitant may not have more than two such requests in effect during any one calendar year.

(3)Subject to paragraph (2) of this subsection, an annuitant may change the State designated by that annuitant for purposes of having withholdings made, and may request that the withholdings be remitted in accordance with such change. An annuitant also may revoke any request of that annuitant for withholding. Any change in the State designated or revocation is effective on the first day of the month after the month in which the request or the revocation is processed by the Office, but in no event later than on the first day of the second month beginning after the day on which such request or revocation is received by the Office.

(4)This subsection does not give the consent of the United States to the application of a statute which imposes more burdensome requirements on the United States than on employers generally, or which subjects the United States or any annuitant to a penalty or liability because of this subsection. The Office may not accept pay from a State for services performed in withholding State income taxes from annuities. Any amount erroneously withheld from an annuity and paid to a State by the Office shall be repaid by the State in accordance with regulations issued by the Office.

(5)For the purpose of this subsection, “State” means a State, the District of Columbia, or any territory or possession of the United States.

(l)Transfers of contributions and deposits authorized by section 408(a)(3) of the Foreign Service Act of 1980 shall be deemed to be a complete and final payment of benefits under this chapter.

Notes & Related Subsidiaries

Historical and Revision Notes

DerivationU.S. CodeRevised Statutes andStatutes at Large 5 U.S.C. 2264.

July 31, 1956, ch. 804, § 401 “Sec. 14”, 70 Stat. 757. Sept. 6, 1960, Pub. L. 86–713, § 1(b), 74 Stat. 814. In subsection (b), the second sentence of former section 2264(b) is omitted as included in the second sentence of the revised subsection. The words “after

September 5, 1960” are substituted for “on or after

September 6, 1960”. In subsection (c), the first sentence of former section 2264(c) is omitted as covered by the remainder of the subsection. The words “on or after

September 6, 1960” are omitted as obsolete. Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

Editorial Notes

References in Text

section 408(a)(3) of the Foreign Service Act of 1980, referred to in subsec. (l), is classified to section 3968(a)(3) of Title 22, Foreign Relations and Intercourse.

Amendments

2020—Subsec. (e). Pub. L. 116–126, § 2(c)(1), designated existing provisions as par. (1), inserted “(including an organization)” after “to the person” and after “to any person”, inserted “and may appropriately receive such payments on behalf of the claimant” after “care of the claimant”, and added par. (2). Subsec. (f). Pub. L. 116–126, § 2(d)(1), added subsec. (f). 1994—Subsec. (j)(1). Pub. L. 103–358, § 2(a)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “Payments under this subchapter which would otherwise be made to an employee, Member, or annuitant based upon his service shall be paid (in whole or in part) by the Office to another person if and to the extent expressly provided for in the terms of any court decree of divorce, annulment, or legal separation, or the terms of any court order or court-approved property settlement agreement incident to any court decree of divorce, annulment, or legal separation. Any payment under this paragraph to a person bars recovery by any other person.” Subsec. (j)(2). Pub. L. 103–358, § 2(a)(2), inserted “other legal process,” after “order,”. Subsec. (j)(3). Pub. L. 103–358, § 2(a)(3), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “As used in this subsection, ‘court’ means any court of any State, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, or the Virgin Islands, and any Indian court.” 1990—Subsec. (l). Pub. L. 101–246 added subsec. (l). 1986—Subsec. (f). Pub. L. 99–251 struck out subsec. (f) which provided minimum monthly rates of annuity payable under subsec. (a) with certain exceptions. 1984—Subsec. (f)(4). Pub. L. 98–615, § 2(6)(A), added par. (4). Subsec. (j)(3). Pub. L. 98–615, § 2(6)(B), inserted reference to the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and any Indian court. 1982—Subsec. (a). Pub. L. 97–253, § 304(b), substituted “rounded to the next lowest” for “fixed at the nearest”. Subsec. (b). Pub. L. 97–253, § 305(a), substituted provisions that an annuity of an employee or Member commences on the first day of the month after separation from service or pay ceases and the service and age requirements for title to annuity are met, that any other annuity payable from the Fund commences on the first day of the month after the occurrence of the event on which the payment thereof is based, and that the annuity of an employee involuntarily separated from service or of an employee or Member retiring due to a disability shall commence on the day after separation from the service or the day after pay ceases and the service and age or disability requirements for title to annuity are met for provisions that the annuity of an employee or Member would commence on the day after he was separated from the service, or on the day after his pay ceased and he met the service and the age or disability requirements for title to annuity and that an annuity payable from the Fund allowed after September 5, 1960, would commence on the day after the occurrence of the event on which payment thereof was based. 1981—Subsec. (k). Pub. L. 97–35 added subsec. (k). 1978—Subsecs. (d), (e). Pub. L. 95–454, § 906(a)(2), (3), substituted “Office of Personnel Management” for “Civil Service Commission” and “Office” for “Commission”. Subsec. (g). Pub. L. 95–454, § 906(a)(3), substituted “Office” for “Commission” in the subsec. (g) added by Pub. L. 94–126. Pub. L. 95–366 redesignated as subsec. (h) the subsec. (g) added by Pub. L. 94–166. Subsec. (h). Pub. L. 95–454, § 906(a)(2), substituted “Office of Personnel Management” for “Civil Service Commission”. Pub. L. 95–366 redesignated former subsec. (g), added by Pub. L. 94–166, as (h). Former subsec. (h) redesignated (i). Subsec. (i). Pub. L. 95–454, § 906(a)(2), substituted “Office of Personnel Management” for “Civil Service Commission” wherever appearing. Pub. L. 95–366 redesignated former subsec. (h) as (i). Subsec. (j). Pub. L. 95–454, § 906(a)(3), substituted “Office” for “Commission” wherever appearing. Pub. L. 95–366 added subsec. (j). 1975—Subsec. (g). Pub. L. 94–166 added subsec. (g) authorizing allotment or assignment of amounts from annuities. Pub. L. 94–126 added subsec. (g) relating to the crediting of National Guard technician service in connection with civil service retirement. Subsec. (h). Pub. L. 94–183 added subsec. (h). 1974—Subsec. (f). Pub. L. 93–273 added subsec. (f).

Statutory Notes and Related Subsidiaries

Effective Date

of 2020 AmendmentAmendment by Pub. L. 116–126 effective on Mar. 18, 2020, and applicable on and after the

Effective Date

Regulations

promulgated under section 3(b)(1) of Pub. L. 116–126, see section 4 and 3(b) of Pub. L. 116–126, set out respectively as an

Effective Date

of 2020 Amendment note and a

Regulations

note under section 8331 of this title.

Effective Date

of 1994 Amendment section 3 of Pub. L. 103–358 provided that: “The

Amendments

made by this Act [amending this section and section 8437 and 8467 of this title] shall take effect on the date of enactment of this Act [Oct. 14, 1994], and shall apply with respect to any decree, order, or other legal process, or notice of agreement received by the Office of Personnel Management or the Executive Director of the Federal Retirement Thrift Investment Board on or after such date of enactment.”

Effective Date

of 1984 AmendmentAmendment by Pub. L. 98–615 effective May 7, 1985, with enumerated exceptions and specific applicability provisions, see section 4(a)(1), (5)(D) of Pub. L. 98–615, as amended, set out as a note under section 8341 of this title.

Effective Date

of 1982 AmendmentAmendment by section 304(b) of Pub. L. 97–253 applicable with respect to any annuity commencing on or after Oct. 1, 1982, and with respect to any adjustment or redetermination of any annuity made on or after such date, see section 304(c) of Pub. L. 97–253, set out as a note under section 8340 of this title. section 305(b) of Pub. L. 97–253, as amended by Pub. L. 97–377, title I, § 124, Dec. 21, 1982, 96 Stat. 1913, provided that: “The amendment made by subsection (a) [amending this section] shall apply to annuities which commence on or after October 1, 1982, except for those individuals who serve three days or less in the month of retirement.”

Effective Date

of 1981 Amendment section 1705(b) of Pub. L. 97–35 provided that: “The amendment made by subsection (a) [amending this section] shall take effect October 1, 1981.”

Effective Date

of 1978

Amendments

Amendment by Pub. L. 95–454 effective 90 days after Oct. 13, 1978, see section 907 of Pub. L. 95–454, set out as a note under section 1101 of this title. section 2 of Pub. L. 95–366 provided that: “The

Amendments

made by the first section of this Act [amending this section and section 8346 of this title] shall only apply to payments made from the Civil Service Retirement and Disability Fund after the date of the enactment of this Act [Sept. 15, 1978].”

Effective Date

of 1975 AmendmentAmendment by Pub. L. 94–126 effective as of Jan. 1, 1969, applicable to a person who, on Nov. 12, 1975, is receiving or is entitled to receive benefits under any Federal retirement system and requests in writing the application of the amendment to him by the office administering his retirement system, and additional benefits to commence Dec. 1, 1975, see section 3 of Pub. L. 94–126, set out as a note under section 8334 of this title.

Effective Date

of 1974 Amendment section 3 of Pub. L. 93–273 provided that: “This Act [amending this section and enacting provisions set out as notes under this section and section 8339 and 8341 of this title] shall become effective on the date of enactment [Apr. 26, 1974]. Annuity increases under this Act shall apply to annuities which commence before, on, or after the date of enactment of this Act, but no increase in annuity shall be paid for any period prior to the first day of the first month which begins on or after the ninetieth day after the date of enactment of this Act, or the date on which the annuity commences, whichever is later.”

Regulations

to carry out amendment by Pub. L. 116–126 to be promulgated by Office of Personnel Management no later than 1 year after Mar. 18, 2020, with allowance for additional

Regulations

relating to administration of representative payee program, see section 3(b) of Pub. L. 116–126, set out as a note under section 8331 of this title. Minimum Annuity Under Civil Service Retirement and Disability System section 305(b)–(d) of Pub. L. 99–251 provided that: “(b)

Savings Provision

.—An annuity payable from the Civil Service Retirement and Disability Fund as of the day before the date of enactment of this Act [Feb. 27, 1986] shall not be reduced—“(1) by reason of the repeal of section 8345(f) of title 5, United States Code; or “(2) if or to the extent that the reduction is to be made for the purpose of eliminating an overpayment resulting from the manner in which such section 8345(f) has been administered by the Office of Personnel Management. “(c) Ratification of Erroneous Payments.—Any individual to whom an overpayment of an annuity has been made from the Civil Service Retirement and Disability Fund before the date of enactment of this Act [Feb. 27, 1986] shall be deemed to have been entitled to that overpayment if and to the extent that such overpayment resulted from the manner in which the Office of Personnel Management has administered section 8345(f) of title 5, United States Code. “(d) Adjustments of Certain Reductions.—(1) Effective for any month after the date of enactment of this Act [Feb. 27, 1986], the amount of any annuity which—“(A) is payable from the Civil Service Retirement and Disability Fund; and “(B) was reduced after June 30, 1985, and before the date of enactment of this Act, to eliminate any overpayment resulting from the manner in which the Office of Personnel Management administered section 8345(f) of title 5, United States Code, shall not be less than the amount which would have been payable as of such date of enactment if the reduction described in clause (B) had not been made. “(2)(A) The Office shall make a lump-sum payment to each individual receiving an annuity to which paragraph (1) applies. “(B) The lump-sum payment made to any individual under this paragraph shall be equal to the excess of—“(i) the total amount of the annuity payments which would have been made to the individual for the period beginning with the first month in which the reduction described in paragraph (1)(B) was made and ending on the last day of the month in which this Act is enacted if the reduction had not been made, over “(ii) the total amount of the annuity payments which have been paid to such individual for that period.” Availability of the Civil Service Retirement and Disability Fund for Expenses Incurred by the Office of Personnel Management section 1705(c) of Pub. L. 97–35 provided that: “The Civil Service Retirement and Disability Fund is available for expenses incurred by the Office of Personnel Management in the initial implementation of the

Amendments

made by this section [amending this section].” Monthly Rate of Minimum Annuity section 2(c) of Pub. L. 93–273 provided that: “The monthly rate of an annuity resulting from an increase under this section [enacting provisions set out as notes under section 8339 and 8341 of this title] shall be considered as the monthly rate of annuity payable under section 8345(a) of title 5, United States Code [subsec. (a) of this section], for purposes of computing the minimum annuity under section 8345(f) of title 5 [subsec. (f) of this section], as added by the first section of this Act.”

§8345 Payment of benefits; commencement, termination, and waiver of annuity

Summary

Title 5, §8345

Notes & Related Subsidiaries

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Editorial Notes

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Citations & Metadata