Alternative forms of annuities
The Office of Personnel Management shall prescribe regulations under which any employee or Member who has a life-threatening affliction or other critical medical condition may, at the time of retiring under this subchapter (other than under section 8337 of this title), elect annuity benefits under this section instead of any other benefits under this subchapter (including any benefits under section 8341 of this title) based on the service of the employee or Member.
Subject to subsection (c), the Office shall by regulation provide for such alternative forms of annuities as the Office considers appropriate, except that among the alternatives offered shall be—
an alternative which provides for—
payment of the lump-sum credit to the employee or Member; and
payment of an annuity to the employee or Member for life; and
in the case of an employee or Member who is married at the time of retirement, an alternative which provides for—
payment of the lump-sum credit to the employee or Member; and
payment of an annuity to the employee or Member for life, with a survivor annuity payable for the life of a surviving spouse.
Each alternative provided for under subsection (b) shall, to the extent practicable, be designed such that the present value of the benefits provided under such alternative (including any lump-sum credit) is actuarially equivalent to the present value of the annuity which would otherwise be provided the employee or Member under this subchapter, as computed under subsections (a)–(i), (n), (q), (r), and (s) of section 8339.
An employee or Member who, at the time of retiring under this subchapter—
is married, shall be ineligible to make an election under this section unless a waiver is made under section 8339(j)(1) of this title; or
has a former spouse, shall be ineligible to make an election under this section if the former spouse is entitled to benefits under section 8341(h) or 8345(j) of this title (based on the service of the employee or Member) under the terms of a decree of divorce or annulment, or a court order or court-approved property settlement incident to any such decree, with respect to which the Office has been duly notified.
An employee or Member who is married at the time of retiring under this subchapter and who makes an election under this section may, during the 18-month period beginning on the date of retirement, make the election provided for under section 8339(o) of this title, subject to the deposit requirement thereunder.
Source
(Added Pub. L. 99–335, title II, § 204(a),Notes
Amendments
Effective Date of 2000 Amendment
Effective Date of 1997 Amendment
Effective Date of 1993 Amendment
Effective Date
Applicability of Sections 8343a(f) and 8420a(f) to Individuals Called to or Performing Duty in Connection With Operation Desert Shield
In applying the provisions of section 8343a(f) or 8420a(f) of title 5, United States Code (as amended by paragraph (1)) to any individual described in subparagraph (B), the reference in such provisions to ‘
This paragraph applies with respect to any individual who—
is a member of the Armed Forces of the United States who, before
is an employee of the Department of Defense who is certified by the Secretary of Defense to have performed, after
would have been eligible to make an election under section 8343a or 8420a of title 5, United States Code (as amended by paragraph (1)) as of
The Office of Personnel Management may prescribe such regulations as may be necessary to carry out this paragraph.”
Partial Deferred Payment of Lump-Sum Credit for Certain Individuals Electing Alternative Forms of Annuities
In General.—
Notwithstanding any other provision of law, and except as provided in subsection (c), any lump-sum credit payable to an employee or Member pursuant to the election of an alternative form of annuity by such employee or Member under section 8343a or section 8420a of title 5, United States Code, shall be paid in accordance with the schedule under subsection (b) (instead of the schedule which would otherwise apply), if the commencement date of the annuity payable to such employee or Member occurs after
Schedule of Payments.—
The schedule of payment of any lump-sum credit subject to this section is as follows:
50 percent of the lump-sum credit shall be payable on the date on which, but for the enactment of this section, the full amount of the lump-sum credit would otherwise be payable.
The remainder of the lump-sum credit shall be payable on the date which occurs 12 months after the date on which the payment described in paragraph (1) is paid.
An amount payable in accordance with paragraph (2) shall be payable with interest, computed using the rate under section 8334(e)(3) of title 5, United States Code.
Exceptions.—
The Office of Personnel Management shall prescribe regulations to provide that, unless the individual involved indicates otherwise by written notice to the Office (submitted at such time and in such manner as the regulations may require), this section shall not apply—
in the case of any individual who is separated from Government service involuntarily, other than for cause on charges of misconduct or delinquency; and
in the case of any individual as to whom the application of this section would be against equity and good conscience, due to a life-threatening affliction or other critical medical condition affecting such individual.
Annuity Benefits Not Affected.—
Nothing in this section shall affect the commencement date, the amount, or any other aspect of any annuity benefits payable under section 8343a or section 8420a of title 5, United States Code.
Definitions.—
For purposes of this section, the terms ‘lump-sum credit’, ‘employee’, and ‘Member’ each has the meaning given such term by section 8331 or section 8401 of title 5, United States Code, as appropriate.
Continued Applicability.—
The preceding provisions of this section (disregarding the provision in subsection (a) limiting this section’s applicability to annuities commencing before the date specified in such provision) shall also apply in the case of any employee or Member whose election of an alternative form of annuity would not have been allowable under section 8343a(f) or 8420a(f) of title 5, United States Code (as the case may be), but for—
paragraph (2)(A) thereof; or
section 7001(a)(4) of the Omnibus Budget Reconciliation Act of 1990 [Pub. L. 101–508, set out as a note above].”