5 U.S.C. § 8421a — Reductions on account of earnings from

Page 1132 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8421a supplement without regard to such applicable min- imum retirement age’’ before period at end, to reflect the probable intent of Congress. 1992—Subsec. (a)(2). Pub. L. 102–378 inserted period at end. 1989—Subsec. (a)(2). Pub. L. 101–194 substituted ‘‘, except that an individual entitled to an annuity under section 8414(a) for failure to be recertified as a senior executive shall be entitled to an annuity supple- ment without regard to such applicable minimum re- tirement age’’ for period at end. 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 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. § 8421a. Reductions on account of earnings from work performed while entitled to an annuity supplement (a) Except as provided in subsection (c), the amount of the annuity supplement to which an individual is entitled under section 8421 for any month (determined without regard to subsection (c) of such section) shall be reduced by the amount of any excess earnings of such indi- vidual which are required to be charged to such supplement for such month, as determined under subsection (b). (b) The amount of an individual’s excess earn- ings shall be charged to months as follows: (1)(A) There shall be charged to each month of a year under subsection (a) an amount equal to the individual’s excess earnings (as deter- mined under paragraph (2) with respect to such year), divided by the number of the indi- vidual’s supplement entitlement months for such year (as determined under paragraph (3)). (B) Notwithstanding subparagraph (A), the amount charged to a month under subsection (a) may not exceed the amount of the annuity supplement to which the individual is entitled under section 8421 for such month (determined without regard to subsection (c) of such sec- tion). (2) The excess earnings based on which re- ductions under subsection (a) shall be made with respect to an individual in a year— (A) shall be equal to 50 percent of so much of such individual’s earnings for the imme- diately preceding year as exceeds the appli- cable exempt amount for such preceding year; but (B) may not exceed the total amount of the annuity supplement payments to which such individual was entitled for such pre- ceding year under section 8421 (determined without regard to subsection (c) of such sec- tion, and without regard to this section). (3)(A) Subject to subparagraph (B), the num- ber of an individual’s supplement entitlement months for a year shall be 12. (B) The number determined under subpara- graph (A) shall be reduced so as not to include any month after which such individual ceases to be entitled to an annuity supplement by reason of section 8421(a)(3)(B), relating to ces- sation of entitlement upon attaining age 62. (4)(A) For purposes of this section, and ex- cept as provided in subparagraph (B), the ‘‘earnings’’ and the ‘‘applicable exempt amount’’ of an individual shall be determined in a manner consistent with applicable provi- sions of section 203 of the Social Security Act. (B) For purposes of this section— (i) in determining the excess earnings of any individual, only earnings attributable to periods during which such individual was en- titled to an annuity supplement under sec- tion 8421 shall be considered; and (ii) any earnings attributable to a period before attaining the applicable retirement age under section 8412(h) shall not be consid- ered in determining the excess earnings of an individual who retires under section 8412(d)(1) or (e), or section 8414(c). (5) Notwithstanding paragraphs (1) through (4), the reduction required by subsection (a) shall be effective with respect to the annuity supplement payable for each month in the 12- month period beginning on the first day of the seventh month after the end of the calendar year in which the excess earnings were earned. (c) This section shall not apply to an indi- vidual described in section 8412(e) during any pe- riod in which the individual, after separating from the service as described in that section, is employed as an— (1) air traffic control instructor, or super- visor thereof, under contract with the Federal Aviation Administration, including an in- structor or supervisor working at an on-site facility (such as an airport); or (2) air traffic controller pursuant to a con- tract made with the Secretary of Transpor- tation under section 47124 of title 49. (d) The Office shall prescribe regulations under which this section shall be applied in the case of a reemployed annuitant. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 535; amended Pub. L. 99–556, title I, § 121, Oct. 27, 1986, 100 Stat. 3134; Pub. L. 106–394, § 3(a), Oct. 30, 2000, 114 Stat. 1630; Pub. L. 114–251, § 1, Dec. 8, 2016, 130 Stat. 1002; Pub. L. 116–92, div. A, title VI, § 608, Dec. 20, 2019, 133 Stat. 1425; Pub. L. 117–225, § 3(b)(2)(A)(iv), Dec. 9, 2022, 136 Stat. 2296; Pub. L. 117–328, div. Y, § 102, Dec. 29, 2022, 136 Stat. 5523.) Editorial Notes REFERENCES IN TEXT Section 203 of the Social Security Act, referred to in subsec. (b)(4)(A), is classified to section 403 of Title 42, The Public Health and Welfare. Page 1133 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8422 AMENDMENTS 2022—Subsec. (b)(4)(B)(ii). Pub. L. 117–225 inserted ‘‘(1)’’ after ‘‘section 8412(d)’’. Subsec. (c). Pub. L. 117–328 substituted ‘‘as an—’’ for ‘‘as an’’, designated remainder of existing provisions as par. (1), and added par. (2). 2019—Subsec. (c). Pub. L. 116–92 substituted ‘‘as an air traffic control instructor, or supervisor thereof,’’ for ‘‘full-time as an air traffic control instructor’’ and in- serted ‘‘or supervisor’’ after ‘‘an instructor’’. 2016—Subsec. (a). Pub. L. 114–251, § 1(1), substituted ‘‘Except as provided in subsection (c), the amount’’ for ‘‘The amount’’. Subsecs. (c), (d). Pub. L. 114–251, § 1(2), (3), added sub- sec. (c) and redesignated former subsec. (c) as (d). 2000—Subsec. (b)(5). Pub. L. 106–394 added par. (5). 1986—Subsecs. (c), (d). Pub. L. 99–556 redesignated subsec. (d) as (c) and struck out former subsec. (c) which read as follows: ‘‘If, after an individual ceases to be entitled to an annuity supplement under section 8421 by reason of subsection (a)(3)(B) of such section, any portion of the individual’s excess earnings remains out- standing, an amount not to exceed 25 percent of the amount otherwise payable to such individual under this chapter for each month shall be deducted from such monthly payment until the full amount of that out- standing portion has been accounted for. To the extent practicable, reductions under this subsection shall be made by a level percentage.’’ 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 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 2000 AMENDMENT Pub. L. 106–394, § 3(b), Oct. 30, 2000, 114 Stat. 1630, pro- vided that: ‘‘The amendment made by subsection (a) [amending this section] shall apply with respect to re- ductions required to be made in calendar years begin- ning after the date of the enactment of this Act [Oct. 30, 2000].’’ § 8422. Deductions from pay; contributions for other service; deposits (a)(1) The employing agency shall deduct and withhold from basic pay of each employee and Member a percentage of basic pay determined in accordance with paragraph (2). (2) The percentage to be deducted and with- held from basic pay for any pay period shall be equal to— (A) the applicable percentage under para- graph (3), minus (B) the percentage then in effect under sec- tion 3101(a) of the Internal Revenue Code of 1986 (relating to rate of tax for old-age, sur- vivors, and disability insurance). (3)(A) The applicable percentage under this paragraph for civilian service by employees or Members other than revised annuity employees or further revised annuity employees shall be as follows: Employee ........... 7 ............... January 1, 1987, to December 31, 1998. 7.25 ........... January 1, 1999, to December 31, 1999. 7.4 ............. January 1, 2000, to December 31, 2000. 7 ............... After December 31, 2000. Congressional employee. 7.5 ............. January 1, 1987, to December 31, 1998. 7.75 ........... January 1, 1999, to December 31, 1999. 7.9 ............. January 1, 2000, to December 31, 2000. 7.5 ............. After December 31, 2000. Member ............. 7.5 ............. January 1, 1987, to December 31, 1998. 7.75 ........... January 1, 1999, to December 31, 1999. 7.9 ............. January 1, 2000, to December 31, 2000. 8 ............... January 1, 2001, to December 31, 2002. 7.5 ............. After December 31, 2002. Law enforcement officer, fire- fighter, mem- ber of the Cap- itol Police, member of the Supreme Court Police, or air traffic con- troller. 7.5 ............. 7.75 ........... 7.9 ............. 7.5 ............. January 1, 1987, to December 31, 1998. January 1, 1999, to December 31, 1999. January 1, 2000, to December 31, 2000. After December 31, 2000. Nuclear mate- rials courier. 7 ............... January 1, 1987, to October 16, 1998. 7.5 ............. October 17, 1998, to December 31, 1998. 7.75 ........... January 1, 1999, to December 31, 1999. 7.9 ............. January 1, 2000, to December 31, 2000. 7.5 ............. After December 31, 2000. Customs and bor- der protection officer. 7.5 ............. After June 29, 2008. (B) The applicable percentage under this para- graph for civilian service by revised annuity em- ployees shall be as follows: Employee 9.3 After December 31, 2012. Congressional em- ployee 9.3 After December 31, 2012. Member 9.3 After December 31, 2012. Law enforcement officer, fire- fighter, member of the Capitol Po- lice, member of the Supreme Court Police, or air traffic con- troller 9.8 After December 31, 2012. Nuclear materials courier 9.8 After December 31, 2012. Customs and border protection officer 9.8 After December 31, 2012. (C) The applicable percentage under this para- graph for civilian service by further revised an- nuity employees shall be as follows: Employee ........... 10.6 After December 31, 2013. Congressional employee. 10.6 After December 31, 2013. Member ............. 10.6 After December 31, 2013. Law enforcement officer, fire- fighter, mem- ber of the Cap- itol Police, member of the Supreme Court Police, or air traffic con- troller. 11.1 After December 31, 2013. Nuclear mate- rials courier. 11.1 After December 31, 2013. Customs and bor- der protection officer. 11.1 After December 31, 2013.