5 U.S.C. § 8420a — Alternative forms of annuities

Page 1130 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8420a ity under section 8444 for an individual having an insurable interest in the employee or Mem- ber. Such individual shall be designated by the employee or Member in writing. (2) The annuity of the employee or Member making the election is reduced by 10 percent, and by 5 percent for each full 5 years the indi- vidual named is younger than the retiring em- ployee or Member, except that the total reduc- tion may not exceed 40 percent. (3) An annuity which is reduced under this subsection shall, effective the first day of the month following the death of the individual named under this subsection, be recomputed and paid as if the annuity had not been so reduced. (b)(1) In the case of a married employee or Member, an election under this section on behalf of the spouse may be made only if any right of such spouse to a survivor annuity based on the service of such employee or Member is waived in accordance with section 8416(a). (2) Paragraph (1) does not apply in the case of an employee or Member if such employee or Member has a former spouse who would become entitled to an annuity under section 8445 as a survivor of such employee or Member. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 532.) § 8420a. Alternative forms of annuities (a) The Office shall prescribe regulations under which any employee or Member who has a life-threatening affliction or other critical med- ical condition may, at the time of retiring under this subchapter, elect annuity benefits under this section instead of any other benefits under this subchapter, and any benefits under sub- chapter IV of this chapter, based on the service of the employee or Member. (b) Subject to subsection (c), the Office shall by regulation provide for such alternative forms of annuities as the Office considers appropriate, except that among the alternatives offered shall be— (1) an alternative which provides for— (A) payment of the lump-sum credit (ex- cluding interest) to the employee or Mem- ber; and (B) payment of an annuity to the employee or Member for life; and (2) in the case of an employee or Member who is married at the time of retirement, an alternative which provides for— (A) payment of the lump-sum credit (ex- cluding interest) to the employee or Mem- ber; and (B) payment of an annuity to the employee or Member for life, with a survivor annuity payable for the life of a surviving spouse. (c) Each alternative provided for under sub- section (b) shall, to the extent practicable, be designed such that the present value of the ben- efits provided under such alternative (including any lump-sum credit) is actuarially equivalent to the sum of— (1) the present value of the annuity which would otherwise be provided under this sub- chapter, as computed under section 8415; and (2) the present value of the annuity supple- ment which would otherwise be provided (if any) under section 8421. (d) An employee or Member who, at the time of retiring under this subchapter— (1) is married, shall be ineligible to make an election under this section unless a waiver is made under section 8416(a); or (2) has a former spouse, shall be ineligible to make an election under this section if the former spouse is entitled to benefits under sec- tion 8445 or 8467 (based on the service of the employee or Member) under the terms of a de- cree of divorce or annulment, or a court order or court-approved property settlement inci- dent to any such decree, with respect to which the Office has been duly notified. (e) An employee or Member who is married at the time of retiring under this subchapter and who makes an election under this section may, during the 18-month period beginning on the date of retirement, make the election provided for under section 8416(d), subject to the deposit requirement thereunder. (Added Pub. L. 99–335, title I, § 101(a), June 6, 1986, 100 Stat. 532; amended Pub. L. 101–508, title VII, § 7001(a)(1), Nov. 5, 1990, 104 Stat. 1388–327; Pub. L. 103–66, title XI, § 11002(a), Aug. 10, 1993, 107 Stat. 409.) Editorial Notes AMENDMENTS 1993—Subsec. (a). Pub. L. 103–66, § 11002(a)(1), sub- stituted ‘‘any employee or Member who has a life- threatening affliction or other critical medical condi- tion’’ for ‘‘an employee or Member’’. Subsec. (f). Pub. L. 103–66, § 11002(a)(2), struck out sub- sec. (f) which prohibited election of alternative form of annuity where commencement date would be after Dec. 1, 1990, with certain exceptions. 1990—Subsec. (f). Pub. L. 101–508 added subsec. (f). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–66 effective Oct. 1, 1994, and applicable with respect to any annuity com- mencing on or after that date, see section 11002(d) of Pub. L. 103–66, set out as a note under section 8343a of this title. APPLICABILITY OF SECTIONS 8343a(f) AND 8420a(f) TO IN- DIVIDUALS CALLED TO OR PERFORMING DUTY IN CON- NECTION WITH OPERATION DESERT SHIELD For provisions relating to application of subsec. (f) of this section to certain members of Armed Forces who were called or ordered to active duty in connection with Operation Desert Shield and to certain employees of Department of Defense who are certified to have per- formed duties essential for support of Operation Desert Shield, see section 7001(a)(4) of Pub. L. 101–508, set out as a note under section 8343a of this title. PARTIAL DEFERRED PAYMENT OF LUMP-SUM CREDIT FOR CERTAIN INDIVIDUALS ELECTING ALTERNATIVE FORMS OF ANNUITIES For provisions relating to deferred payment of lump- sum credit for certain individuals electing alternative forms of annuities, see notes set out under section 8343a of this title. § 8421. Annuity supplement (a)(1) Subject to paragraph (3), an individual shall, if and while entitled to an annuity under subsection (a), (b), (d)(1), or (e) of section 8412, or