§8418 — Title 5 Government Organization and Employees | U.S. Code

Summary

If someone chooses the survivor option under sections 8416(b) or 8416(c) or section 8417(b) and must make that choice within 2 years after the triggering event, they must put a deposit into the Fund. The Office will decide the deposit amount to match how much less the annuity would have been if that choice had been in effect since retirement (or, for 8416(b), since the prior reduction ended under 8419(b)(1) or (2)). Interest is added at 6 percent per year. The Office will let the person pay the deposit by lowering their annuity. The cut should, as much as possible, equal the deposit in present value, but total cuts to pay deposits cannot be more than 25 percent of the annuity calculated under section 8415 or 8452 (including adjustments under 8462). The reduction starts when the survivor choice takes effect, is permanent, and does not change if the marriage later ends or the former spouse’s right ends. Rules in (a) and (b) do not apply if the person already chose under section 8420 and that choice later becomes void under section 8416(b)(3) or 8416(c)(2). The Office must also write rules so a survivor can make a deposit.

Title 5, §8418

Government Organization and Employees — Source: USLM XML via OLRC

(a)(1)An individual who makes an election under subsection (b) or (c) of section 8416 or section 8417(b) which is required to be made within 2 years after the date of a prescribed event shall deposit into the Fund an amount determined by the Office (as nearly as may be administratively feasible) to reflect the amount by which the annuity of such individual would have been reduced if the election had been in effect since the date of retirement (or, if later, and in the case of an election under such section 8416(b), since the date the previous reduction in the annuity of such individual was terminated under paragraph (1) or (2) of section 8419(b)), plus interest.

(2)Interest under paragraph (1) shall be computed at the rate of 6 percent a year.

(b)The Office shall, by regulation, provide for payment of the deposit required under subsection (a) by a reduction in the annuity of the employee or Member. The reduction shall, to the extent practicable, be designed so that the present value of the future reduction is actuarially equivalent to the deposit required under subsection (a), except that the total reductions in the annuity of an employee or Member to pay deposits required by this section shall not exceed 25 percent of the annuity computed under section 8415 or section 8452, including adjustments under section 8462. The reduction required by this subsection, which shall be effective at the same time as the election under section 8416(b) and (c) or section 8417(b), shall be permanent and unaffected by any future termination of the marriage or the entitlement of the former spouse. Such reduction shall be independent of and in addition to the reduction required under section 8416(b) and (c) or section 8417(b).

(c)Subsections (a) and (b) shall not apply if—

(1)the employee or Member makes an election under section 8416(b) or (c) after having made an election under section 8420; and

(2)the election under such section 8420 becomes void under subsection (b)(3) or (c)(2) of such section 8416.

(d)The Office shall prescribe regulations under which the survivor of an employee or Member may make a deposit under this section.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1993—Subsec. (a)(1). Pub. L. 103–66, § 11004(b)(1), struck out “, before the expiration of the 2-year period involved,” after “into the Fund”. Subsec. (b). Pub. L. 102–66, § 11004(b)(2), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “If the electing individual does not make the deposit required under subsection (a), the Office shall collect such amount by offset against such individual’s annuity, up to a maximum of 25 percent of the net annuity otherwise payable, and the individual is deemed to consent to such offset.”

Statutory Notes and Related Subsidiaries

Effective Date

of 1993 AmendmentAmendment by Pub. L. 103–66 effective on first day of first month beginning at least 30 days after Aug. 10, 1993, and applicable to all deposits required under section 8339(j)(3) or (5), 8339(k)(2), or 8418 of this title, on which no payment has been made prior to such

Effective Date

, with provision for partial deposit, see section 11004(c) of Pub. L. 103–66, set out as a note under section 8339 of this title.

§8418 Survivor Elections; Deposit; Offsets

Summary

Title 5, §8418

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata