Title 5, Government Organization and EmployeesRelease 119-110
§8509 Federal Employees Compensation Account
Title 5 › PART III — EMPLOYEES › Subpart G — Insurance and Annuities › CHAPTER 85 — UNEMPLOYMENT COMPENSATION › SUBCHAPTER I — EMPLOYEES GENERALLY › § 8509
Summary
A special account inside the Unemployment Trust Fund holds money to pay compensation and payments to states under this law. Money in the account comes from funds put in or moved there and from required deposits by federal agencies. Each federal agency must deposit, every calendar quarter, the costs the account paid for work done by its employees and former employees. The Secretary of Labor figures how much each agency owes, based on payments made for federal service after December 31, 1980, that have not yet been covered. The amount is adjusted for past overpayments or underpayments. If an agency does not pay within 30 days after Labor tells it to, Labor will tell the Secretary of the Treasury, who will transfer the needed money from that agency’s funds into the account. Labor must tell Treasury each quarter what each agency should deposit, and Treasury must tell Labor when it gets deposits. Before each fiscal year (starting with the year that began October 1, 1981), Labor will estimate spending and available funds and can tell Treasury to move any clear excess to the general fund. Labor can make rules to run this account. “Federal service” uses the meaning in section 8521(a).
Full Legal Text
Title 5, §8509
Government Organization and Employees, Source: USLM XML via OLRC
(a)The Federal Employees Compensation Account (as established by section 909 of the Social Security Act, and hereafter in this section referred to as the “Account”) in the Unemployment Trust Fund (as established by section 904 of such Act) shall consist of—
(1)funds appropriated to or transferred thereto, and
(2)amounts deposited therein pursuant to subsection (c).
(b)Moneys in the Account shall be available only for the purpose of making payments to States pursuant to agreements entered into under this chapter and making payments of compensation under this chapter in States which do not have in effect such an agreement.
(c)(1)Each employing agency shall deposit into the Account amounts equal to the expenditures incurred under this chapter on account of Federal service performed by employees and former employees of that agency.
(2)Deposits required by paragraph (1) shall be made during each calendar quarter and the amount of the deposit to be made by any employing agency during any quarter shall be based on a determination by the Secretary of Labor as to the amounts of payments, made prior to such quarter from the Account based on Federal service performed by employees of such agency after December 31, 1980, with respect to which deposit has not previously been made. The amount to be deposited by any employing agency during any calendar quarter shall be adjusted to take account of any overpayment or underpayment of deposit during any previous quarter for which adjustment has not already been made.
(3)If any Federal agency does not deposit in the Federal Employees Compensation Account any amount before the date 30 days after the date on which the Secretary of Labor has notified such agency that it is required to so deposit such amount, the Secretary of Labor shall notify the Secretary of the Treasury of the failure to make such deposit and the Secretary of the Treasury shall transfer such amount to the Federal Employees Compensation Account from amounts otherwise appropriated to such Federal agency.
(d)The Secretary of Labor shall certify to the Secretary of the Treasury the amount of the deposit which each employing agency is required to make to the Account during any calendar quarter, and the Secretary of the Treasury shall notify the Secretary of Labor as to the date and amount of any deposit made to such Account by any such agency.
(e)Prior to the beginning of each fiscal year (commencing with the fiscal year which begins October 1, 1981) the Secretary of Labor shall estimate—
(1)the amount of expenditures which will be made from the Account during such year, and
(2)the amount of funds which will be available during such year for the making of such expenditures,
and if, on the basis of such estimate, he determines that the amount described in paragraph (2) is in excess of the amount necessary—
(3)to meet the expenditures described in paragraph (1), and
(4)to provide a reasonable contingency fund so as to assure that there will, during all times in such year, be sufficient sums available in the Account to meet the expenditures described in paragraph (1),
he shall certify the amount of such excess to the Secretary of the Treasury and the Secretary of the Treasury shall transfer, from the Account to the general fund of the Treasury, an amount equal to such excess.
(f)The Secretary of Labor is authorized to establish such rules and regulations as may be necessary or appropriate to carry out the provisions of this section.
(g)Any funds appropriated after the establishment of the Account, for the making of payments for which expenditures are authorized to be made from moneys in the Account, shall be made to the Account; and there are hereby authorized to be appropriated to the Account, from time to time, such sums as may be necessary to assure that there will, at all times, be sufficient sums available in the Account to meet the expenditures authorized to be made from moneys therein.
(h)For purposes of this section, the term “Federal service” includes Federal service as defined in section 8521(a).
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
section 909 and 904 of the Social Security Act, referred to in subsec. (a), are classified to section 1109 and 1104, respectively, of Title 42, The Public Health and Welfare.
Amendments
1992—Subsec. (c)(3). Pub. L. 102–318 added par. (3). 1982—Subsecs. (b), (c)(1). Pub. L. 97–362, § 202(a)(1), substituted “chapter” for “subchapter” wherever appearing. Subsec. (h). Pub. L. 97–362, § 202(a)(2), added subsec. (h).
Statutory Notes and Related Subsidiaries
Effective Date
of 1992 Amendment Pub. L. 102–318, title V, § 532(b),
July 3, 1992, 106 Stat. 317, provided that: “The amendment made by subsection (a) [amending this section] shall apply to failures outstanding on the date of the enactment of this Act [
July 3, 1992] or at any time thereafter.”
Effective Date
of 1982 Amendment Pub. L. 97–362, title II, § 202(b)(1), Oct. 25, 1982, 96 Stat. 1733, provided that: “The
Amendments
made by subsection (a) [amending this section] shall take effect on
October 1, 1983.” Transfer of Appropriated Unemployment Compensation Funds Pub. L. 97–362, title II, § 202(b)(2), Oct. 25, 1982, 96 Stat. 1733, provided that: “All funds appropriated which are available (on
October 1, 1983) for the making of payments to States under chapter 85 of title 5, United States Code, on the basis of Federal service (as defined in section 8521(a) of such title 5) or for the making of payments under such chapter on the basis of such service in States which do not have in effect an agreement under such chapter, shall be transferred on such date to the Federal Employees Compensation Account established by section 909 of the Social Security Act [42 U.S.C. 1109]. On and after such date, all payments described in the preceding sentence shall be made from such account as provided by section 8509 of such title 5.” Pub. L. 96–499, title X, § 1023(c), Dec. 5, 1980, 94 Stat. 2658, provided that: “All funds appropriated which are available for the making of payments to States after
December 31, 1980, pursuant to agreements entered into under subchapter I of chapter 85 of title 5, United States Code, or for the making of payments after such date of compensation under such subchapter in States which do not have in effect such an agreement, shall be transferred on
January 1, 1981, to the Federal Employees Compensation Account established by section 909 of the Social Security Act [42 U.S.C. 1109]. On and after such date, all payments described in the preceding sentence shall be made from such Account as provided by section 8509 of title 5, United States Code.”
Reference
Citations & Metadata
Citation
5 U.S.C. § 8509
Title 5, Government Organization and Employees
Last Updated
Sep 22, 2026
Release point: 119-110