§2121 — Title 50 War and National Defense | U.S. Code

Summary

Allows a participant to set aside extra pay in whole 1 percent steps, up to 10 percent of basic pay. Voluntary contribution account = the unrefunded extra payments plus interest: 3 percent a year for periods before January 1, 1985, and the rate set under 5 U.S.C. 8334(e) for periods on or after January 1, 1985. At retirement the participant can choose one of four options: get the account in a lump sum; buy an extra life annuity; buy an extra annuity and leave a cash payment to a beneficiary at death; or buy an extra annuity plus a survivor annuity that guarantees the beneficiary at least the same cash amount. The annuity choices must equal the lump-sum value using mortality tables set by the Director. If a participant dies or leaves the Agency without an annuity, the account is paid in a lump sum in the order named in section 2071(c). These payments are in addition to other benefits under this subchapter.

Title 50, §2121

War and National Defense — Source: USLM XML via OLRC

(a)(1)Under such regulations as may be prescribed by the Director, a participant may voluntarily contribute additional sums in multiples of one percent of the participant’s basic pay, but not in excess of 10 percent of such basic pay.

(2)The voluntary contribution account in each case is the sum of unrefunded contributions, plus interest—

(A)for periods before January 1, 1985, at 3 percent a year; and

(B)for periods on or after January 1, 1985, at the rate computed under section 8334(e) of title 5,

(b)Effective on the date of retirement and at the election of the participant, the participant’s account shall be—

(1)returned in a lump sum;

(2)used to purchase an additional life annuity;

(3)used to purchase an additional life annuity for the participant and to provide for a cash payment on the participant’s death to a beneficiary; or

(4)used to purchase an additional life annuity for the participant and a life annuity commencing on the participant’s death payable to a beneficiary, with a guaranteed return to the beneficiary or the beneficiary’s legal representative of an amount equal to the cash payment referred to in paragraph (3).

(c)The benefits provided by subsection (b)(2), (3), or (4) shall be actuarially equivalent in value to the payment provided for in subsection (b)(1) and shall be calculated upon such tables of mortality as may be from time to time prescribed for this purpose by the Director.

(d)A voluntary contribution account shall be paid in a lump sum at such time as the participant dies or separates from the Agency without entitlement to an annuity. In the case of death, the account shall be paid in the order of precedence specified in section 2071(c) of this title.

(e)Any benefit payable to a participant or to the participant’s beneficiary with respect to the additional contributions provided under this section shall be in addition to benefits otherwise provided under this subchapter.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 281 of Pub. L. 88–643, title II, Oct. 13, 1964, 78 Stat. 1053; Ex. Ord. No. 12443, § 3, Sept. 27, 1983, 48 F.R. 44751; Pub. L. 99–335, title V, § 501(2), June 6, 1986, 100 Stat. 622, related to voluntary contributions and was set out as a note under section 403 of this title prior to the general amendment of Pub. L. 88–643 by section 802 of Pub. L. 102–496.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective on first day of fourth month beginning after Oct. 24, 1992, see section 805 of Pub. L. 102–496, set out as a note under section 2001 of this title.

§2121 Voluntary contributions