5 U.S.C. § 8461 — Authority of the Office of Personnel Man-

Page 1181 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8461 come of the annuitant from wages or self-em- ployment or both equals at least 80 percent of the current rate of pay of the position occupied immediately before retirement. (b)(1) If an annuitant whose annuity is termi- nated under subsection (a) is not reemployed in a position in which that individual is subject to this chapter, such individual is deemed, except for service credit, to have been involuntarily separated from the service for the purpose of subchapter II of this chapter as of the date of termination of the disability annuity, and after that termination is entitled to annuity under the applicable provisions of such subchapter. (2) If an annuitant whose annuity is termi- nated under subsection (a)(2)— (A) is not reemployed in a position subject to this chapter; and (B) has not recovered from the disability for which that individual was retired; the annuity of such individual shall be restored at the applicable rate under section 8452 effec- tive the first of the year following any calendar year in which such individual’s income from wages or self-employment or both is less than 80 percent of the current rate of pay of the position occupied immediately before retirement. (3) If an annuitant whose annuity is termi- nated because of a medical finding that the indi- vidual has recovered from disability is not reem- ployed in a position in which such individual is subject to this chapter, the annuity of such indi- vidual shall be restored at the applicable rate under section 8452 effective from the date on which the Office determines that there has been a recurrence of the disability. (4) Paragraphs (2) and (3) shall not apply in the case of an annuitant receiving an annuity from the Fund under subchapter II of this chapter. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 568.) § 8456. Military reserve technicians (a)(1) Except as provided in paragraph (2) or (3), an individual shall be retired under this sub- chapter if the individual— (A) is separated from employment as a mili- tary reserve technician by reason of a dis- ability that disqualifies the individual from membership in a reserve component of the Armed Forces specified in section 10101 of title 10 or from holding the military grade required for such employment; (B) is not considered to be disabled under section 8451(a)(1)(B); (C) is not appointed to a position in the Gov- ernment (whether under subsection (b) or oth- erwise); and (D) has not declined an offer of an appoint- ment to a position in the Government under subsection (b). (2) Payment of any annuity for an individual pursuant to this section terminates— (A) on the date the individual is appointed to a position in the Government (whether pur- suant to subsection (b) or otherwise); (B) on the date the individual declines an offer of appointment to a position in the Gov- ernment under subsection (b); or (C) as provided under section 8455(a). (3) An individual eligible to retire under sec- tion 8414(c) shall not be eligible to retire under this section. (b) Any individual applying for or receiving any annuity pursuant to this section shall, in accordance with regulations prescribed by the Office, be considered by any agency of the Gov- ernment before any vacant position in the agen- cy is filled if— (1) the position is located within the com- muting area of the individual’s former posi- tion; (2) the individual is qualified to serve in such position, as determined by the head of the agency; and (3) the position is at the same grade or equivalent level as the position from which the individual was separated. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 570, § 8457; amended Pub. L. 99–556, title I, § 118, Oct. 27, 1986, 100 Stat. 3134; renum- bered § 8456, Pub. L. 100–238, title I, § 124(b)(1)(B), Jan. 8, 1988, 101 Stat. 1756; Pub. L. 103–337, div. A, title XVI, § 1677(a)(4), Oct. 5, 1994, 108 Stat. 3019.) Editorial Notes PRIOR PROVISIONS A prior section 8456, added Pub. L. 99–355, title I, § 101(a), June 6, 1986, 100 Stat. 569, related to relation- ship between annuity and workers’ compensation, prior to repeal by Pub. L. 100–238, title I, § 124(b)(1)(A), Jan. 8, 1988, 101 Stat. 1756. See section 8464a of this title. AMENDMENTS 1994—Subsec. (a)(1)(A). Pub. L. 103–337 substituted ‘‘section 10101’’ for ‘‘section 261(a)’’. 1988—Pub. L. 100–238 renumbered section 8457 of this title as this section. 1986—Subsec. (a)(1)(C), (D), (2)(A), (B). Pub. L. 99–556 substituted ‘‘subsection (b)’’ for ‘‘subsection (c)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of Title 10, Armed Forces. [§ 8457. Renumbered § 8456] SUBCHAPTER VI—GENERAL AND ADMINISTRATIVE PROVISIONS § 8461. Authority of the Office of Personnel Man- agement (a) The Office shall pay all benefits that are payable under subchapter II, IV, V, or VI of this chapter from the Fund. (b) The Office shall administer all provisions of this chapter not specifically required to be administered by the Board, the Executive Direc- tor, the Secretary of Labor, or any other officer or agency. (c) The Office shall adjudicate all claims under the provisions of this chapter administered by the Office. (d) The Office shall determine questions of dis- ability and dependency arising under the provi- sions of this chapter administered by the Office. Page 1182 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8461 Except to the extent provided under subsection (e), the decisions of the Office concerning these matters are final and conclusive and are not subject to review. The Office may direct at any time such medical or other examinations as it considers necessary to determine the facts con- cerning disability or dependency of an indi- vidual receiving or applying for annuity under the provisions of this chapter administered by the Office. The Office may suspend or deny an- nuity for failure to submit to examination. (e)(1) Subject to paragraph (2), an administra- tive action or order affecting the rights or inter- ests of an individual or of the United States under the provisions of this chapter adminis- tered by the Office may be appealed to the Merit Systems Protection Board under procedures pre- scribed by the Board. (2) In the case of any individual found by the Office to be disabled in whole or in part on the basis of the individual’s mental condition, and that finding was made pursuant to an applica- tion by an agency for purposes of disability re- tirement under section 8451, the procedures under section 7701 shall apply and the decision of the Board shall be subject to judicial review under section 7703. (f) The Office shall fix the fees for examina- tions made under subchapter V of this chapter by physicians or surgeons who are not medical officers of the United States. The fees and rea- sonable traveling and other expenses incurred in connection with the examinations are paid from appropriations for the cost of administering the provisions of this chapter administered by the Office. (g) The Office may prescribe regulations to carry out the provisions of this chapter adminis- tered by the Office. (h)(1) Each Government agency shall furnish the Director with such information as the Direc- tor determines necessary in order to administer this chapter. (2) The Director, in consultation with the offi- cials from whom such information is requested, shall establish (by regulation or otherwise) such safeguards as are necessary to ensure that infor- mation made available under this subsection is used only for the purpose authorized. (i) In making a determination of ‘‘actuarial equivalence’’ under this chapter, the economic assumptions used shall be the same as the eco- nomic assumptions most recently used by the Office (before the determination of actuarial equivalence involved) in determining the nor- mal-cost percentage of the System. (j)(1) Notwithstanding any other provision of this chapter, the Director of Central Intel- ligence shall, in a manner consistent with the administration of this chapter by the Office, and to the extent considered appropriate by the Di- rector of Central Intelligence— (A) determine entitlement to benefits under this chapter based on the service of employees of the Central Intelligence Agency; (B) maintain records relating to the service of such employees; (C) compute benefits under this chapter based on the service of such employees; (D) collect deposits to the Fund made by such employees, their spouses, their former spouses, and their survivors; (E) authorize and direct disbursements from the Fund to the extent based on service of such employees; and (F) perform such other functions under this chapter (other than under subchapters III and VII of this chapter) with respect to employees of the Central Intelligence Agency as the Di- rector of Central Intelligence, in consultation with the Director of the Office of Personnel Management, determines to be appropriate. (2) The Director of the Office of Personnel Management shall furnish such information and, on a reimbursable basis, such services to the Di- rector of Central Intelligence as the Director of Central Intelligence requests to carry out para- graph (1). (k)(1) The Director of Central Intelligence, in consultation with the Executive Director of the Federal Retirement Thrift Investment Board, may— (A) maintain exclusive records relating to elections, contributions, and accounts under the Thrift Savings Plan provided in sub- chapter III of this chapter in the case of em- ployees of the Central Intelligence Agency; (B) provide that contributions by, or on be- half of, such employees to the Thrift Savings Plan be accounted for by such Executive Di- rector in aggregate amounts; (C) make the necessary disbursements from, and the necessary allocations of earnings, losses, and charges to, individual accounts of such employees under the Thrift Savings Plan; and (D) perform such other functions under sub- chapters III and VII of this chapter (but not including investing sums in the Thrift Savings Fund) with respect to employees of the Cen- tral Intelligence Agency as the Director of Central Intelligence, in consultation with the Executive Director of the Federal Retirement Thrift Investment Board, determines to be ap- propriate. (2) The Executive Director of the Federal Re- tirement Thrift Investment Board may not exer- cise authority under this chapter in the case of employees of the Central Intelligence Agency to the extent that the Director of Central Intel- ligence exercises authority provided in para- graph (1). (3) The Executive Director of the Federal Re- tirement Thrift Investment Board shall furnish such information and, on a reimbursable basis, such services to the Director of Central Intel- ligence as the Director of Central Intelligence determines necessary to carry out this sub- section. (l) Subsection (h)(1), and sections 8439(b) and 8474(c)(4), shall be applied with respect to infor- mation relating to employees of the Central In- telligence Agency in a manner that protects in- telligence sources, methods, and activities. (m)(1) The Director of Central Intelligence, in consultation with the Director of the Office of Personnel Management and the Executive Direc- tor of the Federal Retirement Thrift Investment Board, shall by regulation prescribe appropriate procedures to carry out subsections (j), (k), and (l). (2) The regulations shall provide procedures for the Director of the Office of Personnel Man- Page 1183 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8461 agement to inspect and audit disbursements from the Fund under this chapter. (3) The Director of Central Intelligence shall submit the regulations prescribed under para- graph (1) to the Select Committee on Intel- ligence of the Senate and the Permanent Select Committee on Intelligence of the House of Rep- resentatives before the regulations take effect. (n)(1) Under regulations prescribed by the Of- fice, an employee who— (A) has not previously made an election under this subsection or had an opportunity to make an election under this paragraph; and (B) moves, without a break in service of more than 1 year, to employment in a non- appropriated fund instrumentality of the De- partment of Defense or the Coast Guard, re- spectively, described in section 2105(c), shall be given the opportunity to elect irrev- ocably, within 30 days after such move, to re- main covered as an employee under this chapter during any employment described in section 2105(c) after such move. (2) Under regulations prescribed by the Office, an employee of a nonappropriated fund instru- mentality of the Department of Defense or the Coast Guard described in section 2105(c), who— (A) has not previously made an election under this subsection or had an opportunity to make an election under this paragraph; (B) is a participant in a retirement system established for employees described in section 2105(c); (C) moves, without a break in service of more than 1 year, to a position that is not de- scribed by section 2105(c); and (D) is not eligible to make an election under section 8347(q), shall be given the opportunity to elect irrev- ocably, within 30 days after such move, to re- main covered, during any subsequent employ- ment as an employee as defined by section 2105(a) or section 2105(c), by the retirement sys- tem applicable to such employee’s current or most recent employment described by section 2105(c) rather than be subject to this chapter. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 570; amended Pub. L. 99–556, title I, § 102, Oct. 27, 1986, 100 Stat. 3131; Pub. L. 101–508, title VII, § 7202(k)(2), Nov. 5, 1990, 104 Stat. 1388–339; Pub. L. 102–378, § 2(71), Oct. 2, 1992, 106 Stat. 1355; Pub. L. 104–106, div. A, title X, § 1043(a)(2), Feb. 10, 1996, 110 Stat. 434; Pub. L. 107–107, div. A, title XI, § 1131(b), Dec. 28, 2001, 115 Stat. 1242.) Editorial Notes AMENDMENTS 2001—Subsec. (n)(1). Pub. L. 107–107, § 1131(b)(1), in- serted ‘‘and’’ at end of subpar. (A), redesignated subpar. (C) as (B), and struck out former subpar. (B) which read as follows: ‘‘has 5 or more years of civilian service cred- itable under this chapter; and’’. Subsec. (n)(2)(B). Pub. L. 107–107, § 1131(b)(2), struck out ‘‘vested’’ before ‘‘participant in a retirement sys- tem’’ and struck out ‘‘, as the term ‘vested participant’ is defined by such system’’ before semicolon at end. 1996—Subsec. (n)(1). Pub. L. 104–106, § 1043(a)(2)(A), struck out ‘‘of the Department of Defense or the Coast Guard’’ after ‘‘an employee’’ in introductory provisions and substituted ‘‘1 year’’ for ‘‘3 days’’ in subpar. (C). Subsec. (n)(2)(C). Pub. L. 104–106, § 1043(a)(2)(B), sub- stituted ‘‘1 year’’ for ‘‘3 days’’ and struck out ‘‘in the Department of Defense or the Coast Guard, respec- tively,’’ after ‘‘to a position’’. 1992—Subsec. (n)(1)(A), (2)(A). Pub. L. 102–378, § 2(71)(A), amended subpars. (A) generally. Prior to amendment, subpars. (A) read as follows: ‘‘has not pre- viously made or had an opportunity to make an elec- tion under this subsection;’’. Subsec. (n)(2)(D). Pub. L. 102–378, § 2(71)(B), sub- stituted ‘‘8347(q)’’ for ‘‘8347(p)’’. 1990—Subsec. (n). Pub. L. 101–508 added subsec. (n). 1986—Subsec. (m)(2). Pub. L. 99–556 struck out ‘‘, and from the Thrift Savings Fund,’’ after ‘‘from the Fund’’. Statutory Notes and Related Subsidiaries CHANGE OF NAME Reference to the Director of Central Intelligence or the Director of the Central Intelligence Agency in the Director’s capacity as the head of the intelligence com- munity deemed to be a reference to the Director of Na- tional Intelligence. Reference to the Director of Cen- tral Intelligence or the Director of the Central Intel- ligence Agency in the Director’s capacity as the head of the Central Intelligence Agency deemed to be a ref- erence to the Director of the Central Intelligence Agen- cy. See section 1081(a), (b) of Pub. L. 108–458, set out as a note under section 3001 of Title 50, War and National Defense. EFFECTIVE DATE OF 1996 AMENDMENT For effective date of amendments by Pub. L. 104–106, see Regulations; Effective Date of 1996 Amendment note below. EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–378 effective Nov. 5, 1990, see section 9(b)(6) of Pub. L. 102–378, set out as a note under section 6303 of this title. EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101–508 applicable with re- spect to any individual who, on or after Jan. 1, 1987, moves from employment in nonappropriated fund in- strumentality of Department of Defense or Coast Guard, that is described in section 2105(c) of this title, to employment in Department or Coast Guard, that is not described in section 2105(c), or who moves from em- ployment in Department or Coast Guard, that is not described in section 2105(c), to employment in non- appropriated fund instrumentality of Department or Coast Guard, that is described in section 2105(c), see section 7202(m)(1) of Pub. L. 101–508, set out as a note under section 2105 of this title. REGULATIONS; EFFECTIVE DATE OF 1996 AMENDMENT For provisions relating to promulgation of regula- tions necessary to carry out amendment by Pub. L. 104–106, and effective date of such amendment in con- nection with those regulations, see section 1043(b), (c) of Pub. L. 104–106, set out as a note under section 8347 of this title. TRANSFER OF FUNCTIONS For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relat- ing thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. TREATMENT OF INDIVIDUALS ELECTING TO REMAIN SUBJECT TO THEIR FORMER RETIREMENT SYSTEM For provisions relating to the deductions and con- tributions required with respect to individuals electing Page 1184 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8462 under section 8347(q) or 8461(n) of this title to remain covered under subchapter III of chapter 83 of this title, chapter 84 of this title, or a retirement system for em- ployees described in section 2105(c) of this title, see sec- tion 7202(n) of Pub. L. 101–508, set out as a note under section 2105 of this title. § 8462. Cost-of-living adjustments (a) For the purpose of this section— (1) the term ‘‘base quarter’’, as used with re- spect to a year, means the calendar quarter ending on September 30 of such year; (2) the price index for a base quarter is the arithmetical mean of such index for the 3 months comprising such quarter; and (3) the term ‘‘percent change in the price index’’, as used with respect to a year, means the percentage derived by— (A) reducing— (i) the price index for the base quarter of such year, by (ii) the price index for the base quarter of the preceding year in which an adjust- ment under this subsection was made; (B) dividing the difference under subpara- graph (A) by the price index referred to in subparagraph (A)(ii); and (C) multiplying the quotient under sub- paragraph (B) by 100. (b)(1) Except as provided in subsection (c), ef- fective December 1 of any year in which an ad- justment under this subsection is to be made, as determined under paragraph (2), each annuity payable from the Fund under this chapter (other than an annuity under section 8443) having a commencing date not later than such December 1 shall be adjusted as follows: (A) If the percent change in the price index for the year does not exceed 3 percent, each annuity subject to adjustment under this sub- section shall be increased by the lesser of— (i) the percent change in the price index (rounded to the nearest one-tenth of 1 per- cent); or (ii) 2 percent. (B) If the percent change in the price index for the year exceeds 3 percent, each annuity subject to adjustment under this subsection shall be increased by the excess of— (i) the percent change in the price index (rounded to the nearest one-tenth of 1 per- cent), over (ii) 1 percent. (2) An adjustment under this subsection shall be made in a year only if the price index for the base quarter of such year exceeds the price index for the base quarter of the preceding year in which an adjustment under this subsection was made. (3) An annuity under this chapter shall not be subject to adjustment under section 8340. Noth- ing in the preceding sentence shall affect the computation of any amount under section 8443(a)(2). (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) to an annuity which is payable from the Fund to an annuitant or survivor (other than a child under section 8443) whose annuity has not been increased under this sub- section or subsection (b) shall be equal to the product (adjusted to the nearest one-tenth of 1 percent) of— (A) one-twelfth of the applicable percent change computed under subsection (b), mul- tiplied 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 (ii) in the case of a survivor of a deceased annuitant whose annuity has not been so increased, since the annuity was first pay- able to the deceased annuitant. (2) Effective from its commencing date, an annuity payable from the Fund to an annu- itant’s survivor (other than a widow or wid- ower whose annuity is computed under section 8442(g) or a child under section 8443) shall be increased by the total percentage by which the deceased annuitant’s annuity had been in- creased under this section during the period beginning on the date the deceased annu- itant’s annuity commenced and ending on the date of the deceased annuitant’s death. (3)(A) An adjustment under subsection (b) for any year shall not be effective with respect to the annuity of an annuitant who is under 62 years of age as of the date on which such ad- justment would otherwise first take effect. (B)(i) Except as provided in clause (ii), this paragraph applies only with respect to an an- nuitant under section 8412, 8413, or 8414. (ii) This paragraph does not apply with re- spect to an annuitant under subsection (d)(1) or (e) of section 8412 or (in the case of an annu- itant separated from service as a military re- serve technician as a result of disability) under section 8414(c). (4) The first increase (if any) made under subsection (b) to an annuity which is payable from the Fund to a widow or widower whose annuity is computed under section 8442(g) shall be equal to the product (adjusted to the nearest one-tenth of 1 percent) of— (A) one-twelfth of the applicable percent change computed under subsection (b), mul- tiplied by (B) the number of months (not to exceed 12 months, counting any portion of a month as a month) since— (i) the effective date of the adjustment last made under this section in the annu- ity of the annuitant on whose service on the widow’s or widower’s annuity is based; or (ii) if the annuity of the annuitant (re- ferred to in clause (i)) has not been in- creased under this section, the commence- ment date of such annuitant’s annuity (de- termined subject to section 8452(a)(1)(B)). (d) The monthly installment of an annuity after adjustment under this section shall be rounded to the next lowest dollar. However, the monthly installment shall, after adjustment, re- flect an increase of at least $1.