50 U.S.C. § 2121 — Voluntary contributions

Page 361 TITLE 50—WAR AND NATIONAL DEFENSE § 2131 PART I—VOLUNTARY CONTRIBUTIONS § 2121. Voluntary contributions (a) Authority for voluntary contributions (1) In general Under such regulations as may be prescribed by the Director, a participant may voluntarily contribute additional sums in multiples of one percent of the participant’s basic pay, but not in excess of 10 percent of such basic pay. (2) Interest The voluntary contribution account in each case is the sum of unrefunded contributions, plus interest— (A) for periods before January 1, 1985, at 3 percent a year; and (B) for periods on or after January 1, 1985, at the rate computed under section 8334(e) of title 5, compounded annually to the date of election under subsection (b) or the date of payment under subsection (d). (b) Treatment of voluntary contributions Effective on the date of retirement and at the election of the participant, the participant’s ac- count shall be— (1) returned in a lump sum; (2) used to purchase an additional life annu- ity; (3) used to purchase an additional life annu- ity for the participant and to provide for a cash payment on the participant’s death to a beneficiary; or (4) used to purchase an additional life annu- ity for the participant and a life annuity com- mencing on the participant’s death payable to a beneficiary, with a guaranteed return to the beneficiary or the beneficiary’s legal rep- resentative of an amount equal to the cash payment referred to in paragraph (3). In the case of a benefit provided under para- graph (3) or (4), the participant shall notify the Director in writing of the name of the bene- ficiary of the cash payment or life annuity to be paid upon the participant’s death. (c) Value of benefits The benefits provided by subsection (b)(2), (3), or (4) shall be actuarially equivalent in value to the payment provided for in subsection (b)(1) and shall be calculated upon such tables of mor- tality as may be from time to time prescribed for this purpose by the Director. (d) Lump-sum payment A voluntary contribution account shall be paid in a lump sum at such time as the partici- pant dies or separates from the Agency without entitlement to an annuity. In the case of death, the account shall be paid in the order of prece- dence specified in section 2071(c) of this title. (e) Benefits in addition to other benefits Any benefit payable to a participant or to the participant’s beneficiary with respect to the ad- ditional contributions provided under this sec- tion shall be in addition to benefits otherwise provided under this subchapter. (Pub. L. 88–643, title II, § 281, as added Pub. L. 102–496, title VIII, § 802, Oct. 24, 1992, 106 Stat. 3239.) Editorial Notes PRIOR PROVISIONS A prior section 281 of Pub. L. 88–643, title II, Oct. 13, 1964, 78 Stat. 1053; Ex. Ord. No. 12443, § 3, Sept. 27, 1983, 48 F.R. 44751; Pub. L. 99–335, title V, § 501(2), June 6, 1986, 100 Stat. 622, related to voluntary contributions and was set out as a note under section 403 of this title prior to the general amendment of Pub. L. 88–643 by section 802 of Pub. L. 102–496. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on first day of fourth month begin- ning after Oct. 24, 1992, see section 805 of Pub. L. 102–496, set out as a note under section 2001 of this title. PART J—COST-OF-LIVING ADJUSTMENT OF ANNUITIES § 2131. Cost-of-living adjustment of annuities (a) In general Each annuity payable from the fund shall be adjusted as follows: (1) Each cost-of-living annuity increase under this section shall be identical to the corresponding percentage increase under sec- tion 8340(b) of title 5. (2) A cost-of-living increase made under paragraph (1) shall become effective under this section on the effective date of each such in- crease under section 8340(b) of title 5. Except as provided in subsection (b), each such in- crease shall be applied to each annuity pay- able from the fund which has a commencing date not later than the effective date of the in- crease. (b) Eligibility Eligibility for an annuity increase under this section shall be governed by the commencing date of each annuity payable from the fund as of the effective date of an increase, except as fol- lows: (1) The first cost-of-living increase (if any) made under subsection (a) to an annuity which is payable from the fund to a participant who retires, to the surviving spouse, former spouse, or previous spouse of a participant who dies in service, or to the surviving spouse, former spouse, previous spouse, or insurable interest designee of a deceased annuitant whose annu- ity has not been increased under this sub- section or subsection (a), shall be equal to the product (adjusted to the nearest 1⁄10 of one per- cent) of— (A) 1⁄12 of the applicable percent change computed under subsection (a), 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 (ii) in the case of a surviving spouse, former spouse, previous spouse, or insur- able interest designee of a deceased annu- itant whose annuity has not been so in- creased, since the annuity was first pay- able to the deceased annuitant.