8421. 8421a.

8422.

8423.

8424.

8425.

Survivor reductions; computation.
Insurable interest reductions.

Alternative forms of annuities.

Annuity supplement.

Reductions on account of earnings from work performed while entitled to an annuity supplement.

Deductions from pay; contributions for military service.

Government contributions.

Lump-sum benefits; designation of beneficiary; order of precedence.
Mandatory separation.

SUBCHAPTER III-THRIFT SAVINGS PLAN

8440a.

8440b.

8440c.

Claims Court judges.

8440d.

Thrift Savings Fund.

Investment of Thrift Savings Fund.

Accounting and information.

Tax treatment of the Thrift Savings Fund.

Justices and judges.

Bankruptcy judges and magistrates.

Judges of the United States Court of Appeals for Veterans Claims.

SUBCHAPTER IV SURVIVOR ANNUITIES

8444.

8445.

Rights of a named individual with an insurable interest.
Rights of a former spouse.

SUBCHAPTER V-DISABILITY BENEFITS

SUBCHAPTER VI-GENERAL AND ADMINISTRATIVE PROVISIONS

Authority of the Office of Personnel Management.

Cost-of-living adjustments.

Rate of benefits.

Commencement and termination of annuities of employees and Members.
Relationship between annuity and workers' compensation.

8461.

8462.

8463.

8464.

8464a.

8465.

8466.

8467.

Court orders.

8468.

8469.

8470.

Waiver, allotment, and assignment of benefits.

Application for benefits.

Annuities and pay on reemployment.

Withholding of State income taxes.

Exemption from legal process; recovery of payments.

SUBCHAPTER VII-FEDERAL RETIREMENT THRIFT INVESTMENT

Definitions.

MANAGEMENT SYSTEM

Federal Retirement Thrift Investment Board.

Employee Thrift Advisory Council.

Investment policies.

8471.

8472.

8473.

8474.

Executive Director.

8475.

8476.

8477.

8478.

8478a. 8479.

Administrative provisions.

Fiduciary responsibilities; liability and penalties.
Bonding.

Investigative authority.

Exculpatory provisions; insurance.

SUBCHAPTER I-GENERAL PROVISIONS

§ 8401. Definitions

For the purpose of this chapter—

(1) the term "account" means an account established and maintained under section 8439(a) of this title;

(2) the term "annuitant" means a former employee or Member who, on the basis of that individual's service, meets all requirements for title to an annuity under subchapter II or V of this chapter and files claim therefor;

(3) the term "average pay" means the largest annual rate resulting from averaging an employee's or Member's rates of basic pay in effect over any 3 consecutive years of service or, in the case of an annuity under this chapter based on service of less than 3 years, over the total service, with each rate weighted by the period it was in effect;

(4) the term "basic pay" has the meaning given such term by section 8331(3);

(5) the term "Board" means the Federal Retirement Thrift Investment Board established by section 8472(a) of this title;

(6) the term "Civil Service Retirement and Disability Fund" or "Fund" means the Civil Service Retirement and Disability Fund under section 8348;

(7) the term "court" means any court of any State, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, or the Virgin Islands, and any Indian court;

(8) the term "Director" means the Director of the Office of Personnel Management;

(9) the term "dynamic assumptions" means economic assumptions that are used in determining actuarial costs and liabilities of a retirement system and in anticipating the effects of long-term future—

(A) investment yields;

(B) increases in rates of basic pay;

(C) rates of price inflation;

and

(10) the term "earnings", when used with respect to the Thrift Savings Fund, means the amount of the gain realized or yield received from the investment of sums in such Fund; (11) the term "employee" means—

(A) an individual referred to in subparagraph (A), (E), (F), (H), (I), (J), or (K) of section 8331(1) of this title;

(B) a Congressional employee as defined in section 2107 of this title, including a temporary Congressional employee and an employee of the Congressional Budget Office; and

(C) an employee described in section 2105(c) who has made an election under section 8461(n)(1) to remain covered under this chapter;

whose civilian service after December 31, 1983, is employment for the purposes of title II of the Social Security Act and chapter 21 of the Internal Revenue Code of 1986, except that such term does not include—

(i) any individual referred to in

(I) clause (i), (vi), or (ix) of paragraph (1) of section 8331;

(II) clause (ii) of such paragraph; or

(III) the undesignated material after the last clause of such paragraph;

(ii) any individual excluded under section 8402(c) of this title;

(iii) a member of the Foreign Service described in section 103(6) of the Foreign Service Act of 1980; or

(iv) an employee who has made an election under section 8461(n)(2) to remain covered by a retirement system established for employees described in section 2105(c); (12) the term "former spouse" means a former spouse of an individual

(A) if such individual performed at least 18 months of civilian service creditable under section 8411 as an employee or Member; and

(B) if the former spouse was married to such individual for at least 9 months;

(13) the term "Executive Director" means the Executive Director appointed under section 8474(a);

(14) the term "firefighter" means

(A) an employee, the duties of whose position

(i) are primarily to perform work directly connected with the control and extinguishment of fires; and

(ii) are sufficiently rigorous that employment opportunities should be limited to young and physically vigorous individuals, as determined by the Director

considering the recommendations of the employing agency; and

(B) an employee who is transferred directly to a supervisory or administrative position after performing duties described in subparagraph (A) for at least 3 years;

(15) the term "Government" means the Federal Government, Gallaudet College, and, in the case of an employee described in paragraph (11)(C), a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard described in section 2105(c);

(16) the term "Indian court" has the meaning given such term by section 8331(24);

(17) the term "law enforcement officer" means—
(A) an employee, the duties of whose position-
(i) are primarily—

(I) the investigation, apprehension, or detention of individuals suspected or convicted of offenses against the criminal laws of the United States, or

(II) the protection of officials of the United States against threats to personal safety; and

(ii) are sufficiently rigorous that employment opportunities should be limited to young and physically vigorous individuals, as determined by the Director considering the recommendations of the employing agency;

(B) an employee of the Department of the Interior or the Department of the Treasury (excluding any employee under subparagraph (A)) who occupies a position that, but for the enactment of the Federal Employees' Retirement System Act of 1986, would be subject to the District of Columbia Police and Firefighters' Retirement System, as determined by the Secretary of the Interior or the Secretary of the Treasury, as appropriate;

(C) an employee who is transferred directly to a supervisory or administrative position after performing duties described in subparagraph (A) and (B) for at least 3 years; and

(D) an employee

(i) of the Bureau of Prisons or Federal Prison Industries, Incorporated;

(ii) of the Public Health Service assigned to the field service of the Bureau of Prisons or of the Federal Prison Industries, Incorporated; or

(iii) in the field service at Army or Navy disciplinary barracks or at any other confinement and rehabilitation facility operated by any of the armed forces; whose duties in connection with individuals in detention suspected or convicted of offenses against the criminal laws of the United States or of the District of Columbia or offenses against the punitive articles of the Uniform Code of Military Justice (chapter 47 of title 10) require frequent direct contact with these individuals in their detention and are sufficiently rigorous that employment opportunities

should be limited to young and physically vigorous individuals, as determined by the head of the employing agency; (18) the term "loss", as used with respect to the Thrift Savings Fund, includes the amount of any loss resulting from the investment of sums in such Fund, or from the breach of any responsibility, duty, or obligation under section 8477.

(19) the term "lump-sum credit" means the unrefunded amount consisting of

(A) retirement deductions made from the basic pay of an employee or Member under section 8422(a) of this title (or under section 204 of the Federal Employees' Retirement Contribution Temporary Adjustment Act of 1983);

(B) amounts deposited by an employee or Member under section 8422(e);

(C) amounts deposited by an employee, Member, or survivor under section 8411(f); and

(D) interest on the deductions and deposits which, for any calendar year, shall be equal to the overall average yield to the Fund during the preceding fiscal year from all obligations purchased by the Secretary of the Treasury during such fiscal year under section 8348 (c), (d), and (e), as determined by the Secretary (compounded annually); but does not include interest

(i) if the service covered thereby aggregates 1 year or less; or

(ii) for a fractional part of a month in the total service; (20) the term "Member" has the same meaning as provided in section 2106, except that such term does not include an individual who irrevocably elects, by written notice to the official by whom such individual is paid, not to participate in the Federal Employees' Retirement System;

(21) the term "net earnings" means the excess of earnings over losses;

(22) the term "net losses" means the excess of losses over earnings;

(23) the term "normal-cost percentage" means the entryage normal cost of the provisions of the System which relate to the Fund, computed by the Office in accordance with generally accepted actuarial practice and standards (using dynamic assumptions) and expressed as a level percentage of aggregate basic pay;

(24) the term "Office" means the Office of Personnel Management;

(25) the term "price index" has the same meaning as provided in section 8331(15);

(26) the term "service" means service which is creditable

under section 8411;

1 See also section 307 of Public Law 99-335 (June 6, 1986) which provides: SEC. 307. USE OF “NORMAL-COST PERCENTAGE”.

Notwithstanding any other provision of law, the normal-cost percentage (as defined by section 8401(23) of title 5, United States Code, as added by this Act) of the Federal Employees' Retirement System shall be used to value the cost of the System for all purposes in which the cost of the System is required to be determined by the Federal Government, including any comparisons between the cost of performing commercial activities under contract with commercial sources and the cost of performing those activities using Government facilities and personnel.