PRIA, Government Policy, Made Personal

Summary

You can choose to put extra money from your basic pay into a special account. You must add it in 1% steps and you cannot put in more than 10% of your basic pay. That extra money earns interest: 3% a year for time before January 1, 1985, and the rate set by section 8334(e) of title 5 for time on or after January 1, 1985. Interest is added each year until you pick a retirement option or until the money is paid out. When you retire you can pick one of four choices: take the account as a one‑time payment; use it to buy extra life annuity payments for yourself; buy an extra annuity and set up a cash death payment to a named beneficiary; or buy an extra annuity plus a survivor annuity for a named beneficiary that guarantees a return equal to that cash amount. If you choose an option that pays a beneficiary, you must give the Director the beneficiary’s name in writing. Any annuity choices must equal the lump sum in value using mortality tables the Director sets. If you die or leave without an annuity, the account is paid in a lump sum to people in the agency’s usual order of who gets payments. These extra payments are on top of any other benefits you get.

Title 50, §2121

War and National Defense, Source: USLM XML via OLRC

(a)Authority for voluntary contributions

(1)In general

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)Interest

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,

compounded annually to the date of election under subsection (b) or the date of payment under subsection (d).

(b)Treatment of voluntary contributions

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).

In the case of a benefit provided under paragraph (3) or (4), the participant shall notify the Director in writing of the name of the beneficiary of the cash payment or life annuity to be paid upon the participant’s death.

(c)Value of benefits

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)Lump-sum payment

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)Benefits in addition to other benefits

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