5 U.S.C. § 8414 — Early retirement

Page 1121 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8414 ing any adjustments made under section 8462; and (B) the product obtained by multiplying— (i) the amount of an annuity computed under section 8412 that would have been pay- able at the time of full retirement if the in- dividual had not elected a phased retirement and as if the individual was employed on a full-time basis in the position occupied dur- ing the phased retirement period and before any adjustment to provide for a survivor an- nuity; by (ii) the working percentage. (2) After computing a composite retirement annuity under paragraph (1), the Director shall adjust the amount of the annuity for any appli- cable reductions for a survivor annuity. (3) A composite retirement annuity shall be adjusted in accordance with section 8462, except that subsection (c)(1) of that section shall not apply. (4) In computing a composite retirement annu- ity under paragraph (1)(B)(i), the unused sick leave to the credit of a phased retiree at the time of entry into full retirement status shall be adjusted by dividing the number of hours of un- used sick leave by the working percentage. (g)(1) Under such procedures and conditions as the Director may provide, and with the concur- rence of the head of employing agency, a phased retiree may elect to terminate phased retire- ment status and return to a full-time work schedule. (2) Upon entering a full-time work schedule based on an election under paragraph (1), the phased retirement annuity of a phased retiree shall terminate. (3) After termination of the phased retirement annuity under this subsection, the individual’s rights under this chapter shall be determined based on the law in effect at the time of any subsequent separation from service. For pur- poses of this chapter, at the time of the subse- quent separation from service, the phased retire- ment period shall be treated as if it had been a period of part-time employment with the work schedule described in subsection (b)(2). (h) For purposes of subchapter IV— (1) the death of a phased retiree shall be deemed to be the death in service of an em- ployee; (2) except for purposes of section 8442(b)(1)(A)(i), the phased retirement period shall be deemed to have been a period of part- time employment with the work schedule de- scribed in subsection (b)(2) of this section; and (3) for purposes of section 8442(b)(1)(A)(i), the phased retiree shall be deemed to have been at the full-time rate of pay for the position occu- pied. (i) Employment of a phased retiree shall not be deemed to be part-time career employment, as defined in section 3401(2). (j) A phased retiree is not eligible to receive an annuity supplement under section 8421. (k) For purposes of subchapter III, a phased re- tiree shall be deemed to be an employee. (l) For purposes of section 8445(d), retirement shall be deemed to occur on the date on which a phased retiree enters into full retirement status. (m) A phased retiree is not eligible to apply for an annuity under subchapter V. (n) A phased retiree is not subject to section 8468. (o) For purposes of chapter 87, a phased retiree shall be deemed to be receiving basic pay at the rate of a full-time employee in the position to which the phased retiree is appointed. (Added Pub. L. 112–141, div. F, title I, § 100121(b)(1), July 6, 2012, 126 Stat. 910.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on Nov. 6, 2014, see section 100121(d) of Pub. L. 112–141, set out as an Effective Date of 2012 Amendment note under section 8331 of this title. § 8413. Deferred retirement (a) An employee or Member who is separated from the service, or transferred to a position in which the employee or Member does not con- tinue subject to this chapter, after completing 5 years of service is entitled to an annuity begin- ning at the age of 62 years. (b)(1) An employee or Member who is sepa- rated from the service, or transferred to a posi- tion in which the employee or Member does not continue subject to this chapter, after com- pleting 10 years of service but before attaining the applicable minimum retirement age under section 8412(h) is entitled to an annuity begin- ning on the date designated by the employee or Member in a written election under this sub- section. The date designated under this sub- section may not precede the date on which the employee or Member attains such minimum re- tirement age and must precede the date on which the employee or Member becomes 62 years of age. (2) The election of an annuity under this sub- section shall not be effective unless— (A) it is made at such time and in such man- ner as the Office shall by regulation prescribe; and (B) the employee or Member will not other- wise be eligible to receive an annuity within 31 days after filing the election. (3) The election of an annuity under this sub- section extinguishes the right of the employee or Member to receive any other annuity based on the service on which the annuity under this subsection is based. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 525; amended Pub. L. 99–556, title I, § 105(b)(1), Oct. 27, 1986, 100 Stat. 3132.) Editorial Notes AMENDMENTS 1986—Subsec. (b)(1). Pub. L. 99–556 inserted ‘‘but be- fore attaining the applicable minimum retirement age under section 8412(h)’’ in first sentence and substituted ‘‘such minimum retirement age’’ for ‘‘the applicable minimum retirement age under section 8412(h)’’ in sec- ond sentence. § 8414. Early retirement (a)(1) A member of the Senior Executive Serv- ice who is removed from the Senior Executive Page 1122 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8414 1 So in original. Probably should be ‘‘separated’’. 2 So in original. Probably should be a semicolon. Service for less than fully successful executive performance (as determined under subchapter II of chapter 43 of this title) after completing 25 years of service, or after becoming 50 years of age and completing 20 years of service, is enti- tled to an annuity. (2) A member of the Defense Intelligence Sen- ior Executive Service or the Senior Cryptologic Executive Service who is removed from such service for failure to be recertified as a senior executive or for less than fully successful execu- tive performance after completing 25 years of service, or after becoming 50 years of age and completing 20 years of service, is entitled to an annuity. (3) A member of the Federal Bureau of Inves- tigation and Drug Enforcement Administration Senior Executive Service who is removed from such service for failure to be recertified as a sen- ior executive or for less than fully successful ex- ecutive performance after completing 25 years of service or after becoming 50 years of age and completing 20 years of service is entitled to an annuity. (b)(1) Except as provided in paragraphs (2) and (3), an employee who— (A) is separated from the service involun- tarily, except by removal for cause on charges of misconduct or delinquency; or (B)(i) has been employed continuously, by the agency in which the employee is serving, for at least the 31-day period ending on the date on which such agency requests the deter- mination referred to in clause (iv); (ii) is serving under an appointment that is not time limited; (iii) has not been duly notified that such em- ployee is to be involuntarily separated for misconduct or unacceptable performance; (iv) is separate 1 from the service voluntarily during a period in which, as determined by the Office of Personnel Management (upon request of the agency) under regulations prescribed by the Office— (I) such agency (or, if applicable, the com- ponent in which the employee is serving) is undergoing substantial delayering, substan- tial reorganization, substantial reductions in force, substantial transfer of function, or other substantial workforce restructuring (or shaping); (II) a significant percentage of employees serving in such agency (or component) are likely to be separated or subject to an imme- diate reduction in the rate of basic pay (without regard to subchapter VI of chapter 53, or comparable provisions); or (III) identified as being in positions which are becoming surplus or excess to the agen- cy’s future ability to carry out its mission effectively; and (v) as determined by the agency under regu- lations prescribed by the Office, is within the scope of the offer of voluntary early retire- ment, which may be made on the basis of— (I) 1 or more organizational units; (II) 1 or more occupational series or levels; (III) 1 or more geographical locations; (IV) specific periods; (V) skills, knowledge, or other factors re- lated to a position; or (VI) any appropriate combination of such factors.2 after completing 25 years of service, or after be- coming 50 years of age and completing 20 years of service, is entitled to an annuity. (2) An employee under paragraph (1) who is separated as described in subparagraph (A) of such paragraph is not entitled to an annuity under this subsection if the employee has de- clined a reasonable offer of another position in the employee’s agency for which the employee is qualified, and the offered position is not lower than 2 grades (or pay levels) below the employ- ee’s grade (or pay level) and is within the em- ployee’s commuting area. (3) Paragraph (1) shall not apply to an em- ployee entitled to an annuity under subsection (d)(1) or (e) of section 8412. (c)(1) An employee who was hired as a military reserve technician on or before February 10, 1996 (under the provisions of this title in effect be- fore that date), and who is separated from tech- nician service, after becoming 50 years of age and completing 25 years of service, by reason of being separated from the Selected Reserve of the employee’s reserve component or ceasing to hold the military grade specified by the Secretary concerned for the position held by the employee is entitled to an annuity. (2) An employee who is initially hired as a military technician (dual status) after February 10, 1996, and who is separated from the Selected Reserve or ceases to hold the military grade specified by the Secretary concerned for the po- sition held by the technician— (A) after completing 25 years of service as a military technician (dual status), or (B) after becoming 50 years of age and com- pleting 20 years of service as a military tech- nician (dual status), is entitled to an annuity. (d)(1) The Secretary of Defense may, during fiscal years 2002 and 2003, carry out a program under which an employee of the Department of Defense may be separated from the service enti- tled to an immediate annuity under this sub- chapter if the employee— (A) has— (i) completed 25 years of service; or (ii) become 50 years of age and completed 20 years of service; and (B) is eligible for the annuity under para- graph (2) or (3). (2)(A) For the purposes of paragraph (1), an employee referred to in that paragraph is eligi- ble for an immediate annuity under this para- graph if the employee— (i) is separated from the service involun- tarily other than for cause; and (ii) has not declined a reasonable offer of an- other position in the Department of Defense for which the employee is qualified, which is not lower than 2 grades (or pay levels) below the employee’s grade (or pay level), and which is within the employee’s commuting area. Page 1123 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8414 (B) For the purposes of paragraph (2)(A)(i), a separation for failure to accept a directed reas- signment to a position outside the commuting area of the employee concerned or to accompany a position outside of such area pursuant to a transfer of function may not be considered to be a removal for cause. (3) For the purposes of paragraph (1), an em- ployee referred to in that paragraph is eligible for an immediate annuity under this paragraph if the employee satisfies all of the following con- ditions: (A) The employee is separated from the serv- ice voluntarily during a period in which the organization within the Department of De- fense in which the employee is serving is un- dergoing a major organizational adjustment. (B) The employee has been employed con- tinuously by the Department of Defense for more than 30 days before the date on which the head of the employee’s organization re- quests the determinations required under sub- paragraph (A). (C) The employee is serving under an ap- pointment that is not limited by time. (D) The employee is not in receipt of a deci- sion notice of involuntary separation for mis- conduct or unacceptable performance. (E) The employee is within the scope of an offer of voluntary early retirement, as defined on the basis of one or more of the following objective criteria: (i) One or more organizational units. (ii) One or more occupational groups, se- ries, or levels. (iii) One or more geographical locations. (iv) Any other similar objective and non- personal criteria that the Office of Personnel Management determines appropriate. (4) Under regulations prescribed by the Office of Personnel Management, the determinations of whether an employee meets— (A) the requirements of subparagraph (A) of paragraph (3) shall be made by the Office upon the request of the Secretary of Defense; and (B) the requirements of subparagraph (E) of such paragraph shall be made by the Secretary of Defense. (5) A determination of which employees are within the scope of an offer of early retirement shall be made only on the basis of consistent and well-documented application of the relevant criteria. (6) In this subsection, the term ‘‘major organi- zational adjustment’’ means any of the fol- lowing: (A) A major reorganization. (B) A major reduction in force. (C) A major transfer of function. (D) A workforce restructuring— (i) to meet mission needs; (ii) to achieve one or more reductions in strength; (iii) to correct skill imbalances; or (iv) to reduce the number of high-grade, managerial, supervisory, or similar posi- tions. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 526; amended Pub. L. 100–325, § 2(m), May 30, 1988, 102 Stat. 583; Pub. L. 101–194, title V, § 506(b)(9), Nov. 30, 1989, 103 Stat. 1759; Pub. L. 105–261, div. A, title XI, § 1109(b), Oct. 17, 1998, 112 Stat. 2144; Pub. L. 106–58, title VI, § 651(b), Sept. 29, 1999, 113 Stat. 480; Pub. L. 106–65, div. A, title V, § 522(b), Oct. 5, 1999, 113 Stat. 597; Pub. L. 106–398, § 1 [[div. A], title XI, § 1152(b)], Oct. 30, 2000, 114 Stat. 1654, 1654A–321; Pub. L. 107–296, title XIII, §§ 1313(b)(2), 1321(a)(5)(A), Nov. 25, 2002, 116 Stat. 2295, 2297; Pub. L. 117–225, § 3(b)(2)(A)(i), Dec. 9, 2022, 136 Stat. 2295.) Editorial Notes AMENDMENTS 2022—Subsec. (b)(3). Pub. L. 117–225 inserted ‘‘(1)’’ after ‘‘subsection (d)’’. 2002—Subsec. (a)(1). Pub. L. 107–296, § 1321(a)(5)(A), struck out ‘‘for failure to be recertified as a senior ex- ecutive under section 3393a or’’ before ‘‘for less than fully’’. Subsec. (b)(1)(B). Pub. L. 107–296, § 1313(b)(2), added subpar. (B) and struck out former subpar. (B) which read as follows: ‘‘except in the case of an employee who is separated from the service under a program carried out under subsection (d), while serving in a geographic area designated by the Director, is separated from the service voluntarily during a period in which (as deter- mined by the Director)— ‘‘(i) the agency in which the employee is serving is undergoing a major reorganization, a major reduction in force, or a major transfer of function; and ‘‘(ii) a significant percentage of the total number of employees serving in such agency will be separated or subject to an immediate reduction in the rate of basic pay (without regard to subchapter VI of chapter 53 of this title or comparable provisions);’’. 2000—Subsec. (b)(1)(B). Pub. L. 106–398, § 1 [[div. A], title XI, § 1152(b)(1)], inserted ‘‘except in the case of an employee who is separated from the service under a program carried out under subsection (d),’’ before ‘‘while serving’’ in introductory provisions. Subsec. (d). Pub. L. 106–398, § 1 [[div. A], title XI, § 1152(b)(2)], added subsec. (d). 1999—Subsec. (b)(1)(B). Pub. L. 106–58 repealed Pub. L. 105–261, § 1109(b)(1). See 1998 Amendment note below. Subsec. (c). Pub. L. 106–65 amended subsec. (c) gen- erally. Prior to amendment, subsec. (c) read as follows: ‘‘A military reserve technician who is separated from technician service, after becoming 50 years of age and completing 25 years of service, by reason of ceasing to satisfy the condition described in section 8401(30)(B) is entitled to an annuity.’’ Subsec. (d). Pub. L. 106–58 repealed Pub. L. 105–261, § 1109(b)(2). See 1998 Amendment note below. 1998—Subsec. (b)(1)(B). Pub. L. 105–261, § 1109(b)(1), which directed insertion of ‘‘except in the case of an employee described in subsection (d)(1),’’ after ‘‘(B)’’, was repealed by Pub. L. 106–58. Subsec. (d). Pub. L. 105–261, § 1109(b)(2), which directed addition of subsec. (d), relating to authority of Depart- ment of Defense to offer employees voluntary early re- tirement, was repealed by Pub. L. 106–58. 1989—Subsec. (a)(1). Pub. L. 101–194, § 506(b)(9)(A), sub- stituted ‘‘for failure to be recertified as a senior execu- tive under section 3393a or for’’ for ‘‘for’’. Subsec. (a)(2), (3). Pub. L. 101–194, § 506(b)(9)(B), (C), substituted ‘‘for failure to be recertified as a senior ex- ecutive or for’’ for ‘‘for’’. 1988—Subsec. (a)(3). Pub. L. 100–325 added par. (3). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2022 AMENDMENT Amendment by Pub. L. 117–225 effective Dec. 9, 2022, and applicable to an individual who suffers an illness or injury described in certain Code provisions on or after Page 1124 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8415 the date that is 2 years after Dec. 9, 2022, see section 3(f) of Pub. L. 117–225, set out as a note under section 8336 of this title. EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107–296 effective 60 days after Nov. 25, 2002, see section 4 of Pub. L. 107–296, set out as an Effective Date note under section 101 of Title 6, Do- mestic Security. EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101–194 effective Jan. 1, 1991, see section 506(d) of Pub. L. 101–194, set out as a note under section 3151 of this title. GOVERNMENT ACCOUNTABILITY OFFICE: VOLUNTARY EARLY RETIREMENT For provisions relating to the application of sub- section (b)(1)(B) of this section to officers and employ- ees of the Government Accountability Office effective Oct. 13, 2000, see section 1 of Pub. L. 106–303, set out as a note under section 8336 of this title. APPLICATION OF SUBSECTION (b)(1)(B) Pub. L. 105–174, title III, § 7001(b), May 1, 1998, 112 Stat. 91, as amended by Pub. L. 106–58, title VI, § 651(a), Sept. 29, 1999, 113 Stat. 480, which provided that, effec- tive May 1, 1998, subsec. (b)(1)(B) of this section was to be applied as if it read as specified in Pub. L. 105–174, § 7001(b), was repealed by Pub. L. 107–296, title XIII, § 1313(b)(4), Nov. 25, 2002, 116 Stat. 2296. § 8415. Computation of basic annuity (a) Except as otherwise provided in this sec- tion, the annuity of an employee retiring under this subchapter is 1 percent of that individual’s average pay multiplied by such individual’s total service. (b) The annuity of a Member, or former Mem- ber with title to a Member annuity, retiring under this subchapter is computed under sub- section (a), except that if the individual has had at least 5 years of service as a Member or Con- gressional employee, or any combination there- of, so much of the annuity as is computed with respect to either such type of service (or a com- bination thereof), not exceeding a total of 20 years, shall be computed by multiplying 17⁄10 percent of the individual’s average pay by the years of such service. (c) The annuity of a Congressional employee, or former Congressional employee, retiring under this subchapter is computed under sub- section (a), except that if the individual has had at least 5 years of service as a Congressional em- ployee or Member, or any combination thereof, so much of the annuity as is computed with re- spect to either such type of service (or a com- bination thereof), not exceeding a total of 20 years, shall be computed by multiplying 17⁄10 percent of the individual’s average pay by the years of such service. (d) Notwithstanding any other provision of law, the annuity of an individual described in subsection (b) or (c) who is a revised annuity employee or a further revised annuity employee shall be computed in the same manner as in the case of an individual described in subsection (a). (e) The annuity of an employee retiring under subsection (d)(1) or (e) of section 8412 or under subsection (a), (b), or (c) of section 8425 is— (1) 17⁄10 percent of that individual’s average pay multiplied by so much of such individual’s total service as does not exceed 20 years; plus (2) 1 percent of that individual’s average pay multiplied by so much of such individual’s total service as exceeds 20 years. (f) The annuity of an air traffic controller or former air traffic controller retiring under sec- tion 8412(a) is computed under subsection (a), ex- cept that if the individual has at least 5 years of service in any combination as— (1) an air traffic controller as defined by sec- tion 2109(1)(A)(i); (2) a first level supervisor of an air traffic controller as defined by section 2109(1)(A)(i); or (3) a second level supervisor of an air traffic controller as defined by section 2109(1)(A)(i); so much of the annuity as is computed with re- spect to such type of service shall be computed by multiplying 1 7/10 percent of the individual’s average pay by the years of such service. (g)(1) In computing an annuity under this sub- chapter for an employee whose service includes service performed on a part-time basis— (A) the average pay of the employee, to the extent that it includes pay for service per- formed in any position on a part-time basis, shall be determined by using the annual rate of basic pay that would be payable for full- time service in the position; and (B) the benefit so computed shall then be multiplied by a fraction equal to the ratio which the employee’s actual service, as deter- mined by prorating the employee’s total serv- ice to reflect the service that was performed on a part-time basis, bears to the total service that would be creditable for the employee if all of the service had been performed on a full- time basis. (2) For the purpose of this subsection, employ- ment on a part-time basis shall not be consid- ered to include employment on a temporary or intermittent basis. (h)(1) The annuity of an employee or Member retiring under section 8412(g) or 8413(b) is com- puted in accordance with applicable provisions of this section, except that the annuity shall be reduced by five-twelfths of 1 percent for each full month by which the commencement date of the annuity precedes the sixty-second anniver- sary of the birth of the employee or Member. (2)(A) Paragraph (1) does not apply in the case of an employee or Member retiring under sec- tion 8412(g) or 8413(b) if the employee or Member would satisfy the age and service requirements for title to an annuity under section 8412(a), (b), (d)(1)(B), (e)(2), or (f)(2), determined as if the em- ployee or Member had, as of the date of separa- tion, attained the age specified in subparagraph (B). (B) A determination under subparagraph (A) shall be based on how old the employee or Mem- ber will be as of the date on which the annuity under section 8412(g) or 8413(b) is to commence. (i)(1) In applying subsection (a) with respect to an employee under paragraph (2), the percentage applied under such subsection shall be 1.1 per- cent, rather than 1 percent. (2) This subsection applies in the case of an employee who— (A) retires entitled to an annuity under sec- tion 8412; and (B) at the time of the separation on which entitlement to the annuity is based, is at least