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5 U.S.C. § 8349 — Offset relating to certain benefits under the Social Security Act

Federal law — U.S. Code and appendices · legal_authorities

5 U.S.C. § 8349 — Offset relating to certain benefits under the Social Security Act

**(a)** (1) Notwithstanding any other provision of this subchapter, if an individual under section 8402(b)(2) is entitled, or would on proper application be entitled, to old-age insurance benefits under title II of the Social Security Act, the annuity otherwise payable to such individual shall be reduced under this subsection. (2) A reduction under this subsection commences beginning with the first month for which the individual both— (A) is entitled to an annuity under this subchapter; and (B) is entitled, or would on proper application be entitled, to old-age insurance benefits under title II of the Social Security Act. (3) (A) (i) Subject to clause (ii) and subparagraphs (B) and (C), the amount of a reduction under this subsection shall be equal to the difference between— (I) the old-age insurance benefit which would be payable to the individual for the month referred to in paragraph (2); and (II) the old-age insurance benefit which would be so payable, excluding all wages derived from Federal service of the individual, and assuming the individual were fully insured (as defined by section 214(a) of the Social Security Act). (ii) For purposes of this subsection, the amount of a benefit referred to in subclause (I) or (II) of clause (i) shall be determined without regard to subsections (b) through (l) of section 203 of the Social Security Act, and without regard to the requirement that an application for such benefit be filed. (B) A reduction under this subsection— (i) may not exceed an amount equal to the product of— (I) the old-age insurance benefit to which the individual is entitled (or would on proper application be entitled) for the month referred to in paragraph (2), determined without regard to subsections (b)

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Stable record: federal_law:legal_authorities:record_usc_b672999667a9600d10a4fb02
Source file: Laws/federal/codes/united-states-code/title-5/section-8349-offset-relating-to-certain-benefits-under-the-social-security-act--492d4c6709.md
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Source location: Title 5, Chapter 83, § 8349; chapter-083-retirement.md

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**(a)** (1) Notwithstanding any other provision of this subchapter, if an individual under section 8402(b)(2) is entitled, or would on proper application be entitled, to old-age insurance benefits under title II of the Social Security Act, the annuity otherwise payable to such individual shall be reduced under this subsection. (2) A reduction under this subsection commences beginning with the first month for which the individual both— (A) is entitled to an annuity under this subchapter; and (B) is entitled, or would on proper application be entitled, to old-age insurance benefits under title II of the Social Security Act. (3) (A) (i) Subject to clause (ii) and subparagraphs (B) and (C), the amount of a reduction under this subsection shall be equal to the difference between— (I) the old-age insurance benefit which would be payable to the individual for the month referred to in paragraph (2); and (II) the old-age insurance benefit which would be so payable, excluding all wages derived from Federal service of the individual, and assuming the individual were fully insured (as defined by section 214(a) of the Social Security Act). (ii) For purposes of this subsection, the amount of a benefit referred to in subclause (I) or (II) of clause (i) shall be determined without regard to subsections (b) through (l) of section 203 of the Social Security Act, and without regard to the requirement that an application for such benefit be filed. (B) A reduction under this subsection— (i) may not exceed an amount equal to the product of— (I) the old-age insurance benefit to which the individual is entitled (or would on proper application be entitled) for the month referred to in paragraph (2), determined without regard to subsections (b) through (l) of section 203 of the Social Security Act; and (II) a fraction, as determined under section 8421(b)(3) with respect to the individual, except that the reference to “service” in subparagraph (A) of such section shall be considered to mean Federal service; and (ii) may not cause the annuity payment for an individual to be reduced below zero. (C) An amount computed under subclause (I) or (II) of subparagraph (A)(i), or under subparagraph (B)(i)(I), for purposes of determining the amount of a reduction under this subsection shall be adjusted under [section 8340 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section8340&num=0&edition=prelim). (4) A reduction under this subsection applies with respect to the annuity otherwise payable to such individual under this subchapter (other than under section 8337) for the month involved— (A) based on service of such individual; and (B) without regard to section 8345(j), if otherwise applicable. (5) The operation of the preceding paragraphs of this subsection shall not be considered for purposes of applying the provisions of the second sentence of section 215(a)(7)(B)(i) or the provisions of section 215(d)(5)(ii) of the Social Security Act in determining any amount under subclause (I) or (II) of paragraph (3)(A)(i) or paragraph (3)(B)(i)(I) for purposes of this subsection. **(b)** (1) Notwithstanding any other provision of this subchapter— (A) a disability annuity to which an individual described in section 8402(b)(2) is entitled under this subchapter, and (B) a survivor annuity to which a person is entitled under this subchapter based on the service of an individual described in section 8402(b)(2), shall be subject to reduction under this subsection if that individual or person is also entitled (or would on proper application also be entitled) to any similar benefits under title II of the Social Security Act based on the wages and self-employment income of such individual described in section 8402(b)(2). (2) (A) Subject to subparagraph (B), reductions under this subsection shall be made in a manner consistent with the manner in which reductions under subsection (a) are computed and otherwise made. (B) Reductions under this subsection shall be discontinued if, or for so long as, entitlement to the similar benefits under title II of the Social Security Act (as referred to in paragraph (1)) is terminated (or, in the case of an individual who has not made proper application therefor, would be terminated). (3) For the purpose of applying section 224 of the Social Security Act to the disability insurance benefit used to compute the reduction under this subsection, the amount of the CSRS annuity considered shall be the amount of the CSRS annuity before application of this section. (4) The Office shall prescribe regulations to carry out this subsection. **(c)** For the purpose of this section, the term “Federal service” means service which is employment for the purposes of title II of the Social Security Act and chapter 21 of the Internal Revenue Code of 1986 by reason of the amendments made by section 101 of the Social Security Amendments of 1983. **(d)** In administering subsections (a) through (c)— (1) the terms “an individual under section 8402(b)(2)” and “an individual described in section 8402(b)(2)” shall each be considered to include any individual— (A) who is subject to this subchapter as a result of any provision of law described in section 8347(o), and (B) whose employment (as described in section 8347(o)) is also employment for purposes of title II of the Social Security Act and chapter 21 of the Internal Revenue Code of 1986; and (2) the term “Federal service”, as applied with respect to any individual to whom this section applies as a result of paragraph (1), means any employment referred to in paragraph (1)(B) performed after December 31, 1983.

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Federal law — U.S. Code and appendices · legal_authorities

5 U.S.C. § 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section8439/a&num=0&edition=prelim); (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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section8472/a&num=0&edition=prelim); (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 p

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Federal law — U.S. Code and appendices · legal_authorities

42 U.S.C. § 410 — Definitions relating to employment

For the purposes of this subchapter— **(a) Employment** The term “employment” means any service performed after 1936 and prior to 1951 which was employment for the purposes of this subchapter under the law applicable to the period in which such service was performed, and any service, of whatever nature, performed after 1950 (A) by an employee for the person employing him, irrespective of the citizenship or residence of either, (i) within the United States, or (ii) on or in connection with an American vessel or American aircraft under a contract of service which is entered into within the United States or during the performance of which and while the employee is employed on the vessel or aircraft it touches at a port in the United States, if the employee is employed on and in connection with such vessel or aircraft when outside the United States, or (B) outside the United States by a citizen or resident of the United States as an employee (i) of an American employer (as defined in subsection (e) of this section), or (ii) of a foreign affiliate (as defined in section 3121(l)(6) of the Internal Revenue Code of 1986) of an American employer during any period for which there is in effect an agreement, entered into pursuant to section 3121(l) of such Code, with respect to such affiliate, or (C) if it is service, regardless of where or by whom performed, which is designated as employment or recognized as equivalent to employment under an agreement entered into under [section 433 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section433&num=0&edition=prelim); except that, in the case of service performed after 1950, such term shall not include— (1) Service performed by foreign agricultural workers lawfully admitted to the United States fro

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Federal law — U.S. Code and appendices · legal_authorities

5 U.S.C. § 8334 — Deductions, contributions, and deposits

**(a)** (1) (A) The employing agency shall deduct and withhold from the basic pay of an employee, Member, Congressional employee, law enforcement officer, firefighter, bankruptcy judge, judge of the United States Court of Appeals for the Armed Forces, United States magistrate,11 So in original. Probably should be “United States magistrate judge,”. Court of Federal Claims judge, member of the Capitol Police, member of the Supreme Court Police, nuclear materials courier, or customs and border protection officer, as the case may be, the percentage of basic pay applicable under subsection (c). (B) (i) Except as provided in clause (ii), an equal amount shall be contributed from the appropriation or fund used to pay the employee or, in the case of an elected official, from an appropriation or fund available for payment of other salaries of the same office or establishment. When an employee in the legislative branch is paid by the Chief Administrative Officer of the House of Representatives, the Chief Administrative Officer may pay from the applicable accounts of the House of Representatives the contribution that otherwise would be contributed from the appropriation or fund used to pay the employee. (ii) In the case of an employee of the United States Postal Service, no amount shall be contributed under this subparagraph. (2) The amounts so deducted and withheld, together with the amounts so contributed, shall be deposited in the Treasury of the United States to the credit of the Fund under such procedures as the Secretary of the Treasury may prescribe. Deposits made by an employee or Member also shall be credited to the Fund. **(b)** Each employee or Member is deemed to consent and agree to these deductions from basic pay. Notwithstanding any law or regulat

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Federal law — U.S. Code and appendices · legal_authorities

5 U.S.C. § 8340 — Cost-of-living adjustment of annuities

**(a)** For the purpose of this section— (1) the term “base quarter”, as used with respect to a year, means the calendar quarter ending on September 30, of such year; and (2) the price index for a base quarter is the arithmetical mean of such index for the 3 months comprising such quarter. **(b)** Except as provided in subsection (c) of this section, effective December 1 of each year, each annuity payable from the Fund having a commencing date not later than such December 1 shall be increased by the percent change in the price index for the base quarter of such year over the price index for the base quarter of the preceding year in which an adjustment under this subsection was made, adjusted to the nearest ⅒ of 1 percent. **(c)** Eligibility for an annuity increase under this section is governed by the commencing date of each annuity payable from the Fund as of the effective date of an increase, except as follows: (1) The first increase (if any) made under subsection (b) of this section to an annuity which is payable from the Fund to an employee or Member who retires, to the widow, widower, or former spouse,11 So in original. The comma probably should not appear. of a deceased employee or Member, or to the widow, widower, former spouse, or insurable interest designee of a deceased annuitant whose annuity has not been increased under this subsection or subsection (b) of this section, shall be equal to the product (adjusted to the nearest ⅒ of 1 percent) of— (A) 1⁄12 of the applicable percent change computed under subsection (b) of this section, multiplied by (B) the number of months (not to exceed 12 months, counting any portion of a month as a month)— (i) for which the annuity was payable from the Fund before the effective date of the increase, or (

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 3121 — Definitions

**(a) Wages** For purposes of this chapter, the term “wages” means all remuneration for employment, including the cash value of all remuneration (including benefits) paid in any medium other than cash; except that such term shall not include— (1) in the case of the taxes imposed by sections 3101(a) and 3111(a) that part of the remuneration which, after remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) with respect to employment has been paid to an individual by an employer during the calendar year with respect to which such contribution and benefit base is effective, is paid to such individual by such employer during such calendar year. If an employer (hereinafter referred to as successor employer) during any calendar year acquires substantially all the property used in a trade or business of another employer (hereinafter referred to as a predecessor), or used in a separate unit of a trade or business of a predecessor, and immediately after the acquisition employs in his trade or business an individual who immediately prior to the acquisition was employed in the trade or business of such predecessor, then, for the purpose of determining whether the successor employer has paid remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) with respect to employment equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) to such individual during such calendar year, any remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) with respect to employment paid (or considered under this paragraph as h

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Federal law — U.S. Code and appendices · legal_authorities

42 U.S.C. § 1305 — Short title of chapter

This chapter may be cited as the “Social Security Act”.

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Federal law — U.S. Code and appendices · legal_authorities

22 U.S.C. § 4046 — Computation of annuities

**(a) 11 See Amendment of Section note below. Measurements; reduction for special contributions; Foreign Service investigator/inspectors** (1) The annuity of a participant shall be equal to 2 percent of his or her average basic salary for the highest 3 consecutive years of service multiplied by the number of years, not exceeding 35, of service credit obtained in accordance with sections 4056 and 4057 of this title, except that the highest 3 years of service shall be used in computing the annuity of any participant who serves an assignment in a position, as described in [section 3942(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section3942/b&num=0&edition=prelim), to which the participant was appointed by the President and whose continuity of service in that position is interrupted prior to retirement by appointment or assignment to any other position determined by the Secretary of State to be of comparable importance. In determining the aggregate period of service upon which the annuity is to be based, the fractional part of a month, if any, shall not be counted. The annuity shall be reduced by 10 percent of any special contribution described in [section 4045(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section4045/d&num=0&edition=prelim) which is due for service for which no contributions were made and which remains unpaid unless the participant elects to eliminate the service involved for purposes of annuity computation. (2) Notwithstanding the percentage limitation contained in paragraph (1) of this subsection— (A) utilizing the definition of average pay contained in [section 8331(4) of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section8331/4&num

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Federal law — U.S. Code and appendices · legal_authorities

50 U.S.C. § 2031 — Computation of annuities

**(a) Annuity of participant** (1) **Computation of annuity** — The annuity of a participant is the product of— (A) the participant’s high-3 average pay (as defined in paragraph (4)); and (B) the number of years, not exceeding 35, of service credit (determined in accordance with sections 2081 and 2082 of this title) multiplied by 2 percent. (2) **Credit for unused sick leave** — The total service of a participant who retires on an immediate annuity (except under [section 2051 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title50-section2051&num=0&edition=prelim)) or who dies leaving a survivor or survivors entitled to an annuity shall include (without regard to the 35-year limitation prescribed in paragraph (1)) the days of unused sick leave to the credit of the participant. Days of unused sick leave may not be counted in determining average basic pay or eligibility for an annuity under this subchapter. A deposit shall not be required for days of unused sick leave credited under this paragraph. (3) **Crediting of part-time service** (A) *In general* — In the case of a participant whose service includes service on a part-time basis performed after April 6, 1986, the participant’s annuity shall be the sum of the amounts determined under subparagraphs (B) and (C). (B) *Computation of pre-April 7, 1986, annuity* — The portion of an annuity referred to in subparagraph (A) with respect to service before April 7, 1986, shall be the amount computed under paragraph (1) using the participant’s length of service before that date (increased by the unused sick leave to the credit of the participant at the time of retirement) and the participant’s high-3 average pay, as determined by using the annual rate of basic pay that would be payable

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Federal law — U.S. Code and appendices · legal_authorities

5 U.S.C. § 8349 — Offset relating to certain benefits under

Page 1097 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8349 Date of 1969 Amendment note above], shall not be held or considered to continue in effect after the enactment of this Act [Oct. 20, 1969], the provisions of section 8348(g) of title 5, United States Code, as in effect imme- diately prior to such enactment.’’ INAPPLICABILITY TO BENEFITS UNDER PUB. L. 89–737 OF PROHIBITION AGAINST PAYMENT OF INCREASED ANNU- ITY BENEFIT WITHOUT COMPENSATING APPROPRIATION Section 3 of Pub. L. 89–737, Nov. 2, 1966, 80 Stat. 1164, which provided that section 8348(g) of title 5, United States Code, does not apply with respect to annuity benefits resulting from the enactment of this Act [amending sections 8114, 8331, and 8704 of this title and section 1117 of former Title 5, Executive Departments and Government Officers and Employees], was repealed by Pub. L. 90–83, § 10(b), Sept. 11, 1967, 81 Stat. 223. REDEMPTION OF OBLIGATIONS HELD PRIOR TO OCT. 4, 1961; REINVESTMENT OF PROCEEDS Pub. L. 87–350, § 1(b) Oct. 4, 1961, 75 Stat. 770, provided that all special issues in which the civil service retire- ment and disability fund was invested in accordance with subsecs. (d) and (e) of this section before Oct. 4, 1961, were to be redeemed and the moneys reinvested by the Secretary of the Treasury in equal annual amounts over the period of ten calendar years beginning with the calendar year 1962. § 8349. Offset relating to certain benefits under the Social Security Act (a)(1) Notwithstanding any other provision of this subchapter, if an individual under section 8402(b)(2) is entitled, or would on proper applica- tion be entitled, to old-age insurance benefits under title II of the Social Security Act, the an- nuity otherwise payable to such individual shall be red

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