
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC4045]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                       CHAPTER 52--FOREIGN SERVICE
 
       SUBCHAPTER VIII--FOREIGN SERVICE RETIREMENT AND DISABILITY
 
        Part I--Foreign Service Retirement and Disability System
 
Sec. 4045. Contributions to Fund


(a) Rates and sources; deposits in Fund

    (1) Except as otherwise provided in this section, 7 percent of the 
basic salary received by each participant shall be deducted from the 
salary and contributed to the Fund for the payment of annuities, cash 
benefits, refunds, and allowances. An equal amount shall be contributed 
by the Department from the appropriations or fund used for payment of 
the salary of the participant. The Department shall deposit in the Fund 
the amounts deducted and withheld from basic salary and the amounts 
contributed by the Department.
    (2) Notwithstanding the percentage limitation contained in paragraph 
(1) of this subsection--
        (A) the Department shall deduct and withhold from the basic pay 
    of a Foreign Service criminal investigator/inspector of the Office 
    of the Inspector General, Agency for International Development, who 
    is qualified to have his annuity computed in the same manner as that 
    of a law enforcement officer pursuant to section 8339(d) of title 5, 
    an amount equal to that to be withheld from a law enforcement 
    officer pursuant to section 8334(a)(1) of title 5. The amounts so 
    deducted shall be contributed to the Fund for the payment of 
    annuities, cash benefits, refunds, and allowances. An equal amount 
    shall be contributed by the Department from the appropriations or 
    fund used for payment of the salary of the participant. The 
    Department shall deposit in the Fund the amount deducted and 
    withheld from basic salary and amounts contributed by the 
    Department.
        (B) The Department shall deduct and withhold from the basic pay 
    of a Foreign Service criminal investigator/inspector of the Office 
    of the Inspector General, Agency for International Development, who 
    is qualified to have his annuity computed pursuant to section 
    8415(d) of title 5, an amount equal to that to be withheld from a 
    law enforcement officer pursuant to section 8422(a)(2)(B) \1\ of 
    title 5. The amounts so deducted shall be contributed to the Fund 
    for the payment of annuities, cash benefits, refunds, and 
    allowances. An equal amount shall be contributed by the Department 
    from the appropriations or fund used for payment of the salary of 
    the participant. The Department shall deposit in the Fund the 
    amounts deducted and withheld from basic salary and amounts 
    contributed by the Department.
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    \1\ See References in Text note below.

    (3) For service as a special agent, paragraph (1) shall be applied 
by substituting for ``7 percent'' the percentage that applies to law 
enforcement officers under section 8334(a)(1) of title 5.

(b) Consent to deduction; discharge and acquittance of claims and 
        demands

    Each participant shall be deemed to consent and agree to such 
deductions from basic salary. Payment less such deductions shall be a 
full and complete discharge and acquittance of all claims and demands 
whatsoever for all regular services during the period covered by such 
payment, except the right to the benefits to which the participant shall 
be entitled under this chapter, notwithstanding any law, rule, or 
regulation affecting the salary of the individual.

(c) Transfer of contributions from other Government retirement fund

    (1) If a member of the Service who is under another retirement 
system for Government employees becomes a participant in the System by 
direct transfer, the total contributions and deposits of that member 
that would otherwise be refundable on separation (except voluntary 
contributions), including interest thereon, shall be transferred to the 
Fund effective as of the date such member becomes a participant in the 
System. Each such member shall be deemed to consent to the transfer of 
such funds, and such transfer shall be a complete discharge and 
acquittance of all claims and demands against the other Government 
retirement fund on account of service rendered by such member prior to 
becoming a participant in the System.
    (2) A member of the Service whose contributions are transferred to 
the Fund pursuant to paragraph (1) shall not be required to make 
additional contributions for periods of service for which required 
contributions were made to the other Government retirement fund; nor 
shall any refund be made to any such member on account of contributions 
made during any period to the other Government retirement fund at a 
higher rate than that fixed by subsection (d) of this section.

(d) Contribution for civilian service; creditability of interim service

    (1) Any participant credited with civilian service after July 1, 
1924--
        (A) for which no retirement contributions, deductions, or 
    deposits have been made, or
        (B) for which a refund of such contributions, deductions, or 
    deposits has been made which has not been redeposited,

may make a special contribution to the Fund. Special contributions for 
purposes of subparagraph (A) shall equal the following percentages of 
basic salary received for such service:


                                                            Percent of
                                                           basic salary

Time of service:
  July 1, 1924, through October 15, 1960, inclusive.....           5
  October 16, 1960, through December 31, 1969, inclusive         6\1/2\
  January 1, 1970, through December 31, 1998, inclusive.           7
  January 1, 1999, through December 31, 1999, inclusive.            7.25
  January 1, 2000, through December 31, 2000, inclusive.            7.4
  After December 31, 2000...............................           7


Special contributions for refunds under subparagraph (B) shall equal the 
amount of the refund received by the participant.
    (2) Notwithstanding paragraph (1), a special contribution for prior 
nondeposit service as a National Guard technician which would be 
creditable toward retirement under subchapter III of chapter 83 of title 
5, and for which a special contribution has not been made, shall be 
equal to the special contribution for such service computed in 
accordance with the schedule in paragraph (1) multiplied by the 
percentage of such service that is creditable under section 4056 of this 
title.
    (3) Special contributions under this subsection shall include 
interest computed from the midpoint of each service period included in 
the computation, or from the date refund was paid, to the date of 
payment of the special contribution or commencing date of annuity, 
whichever is earlier. \2\ Interest shall be compounded at the annual 
rate of 4 percent to December 31, 1976, and 3 percent thereafter. No 
interest shall be charged on special contributions for any period of 
separation from Government service which began before October 1, 1956. 
Special contributions may be paid in installments (including by 
allotment of pay) when authorized by the Secretary of State.
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    \2\ See Amendment of Section note below.
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    (4) Notwithstanding the preceding provisions of this subsection and 
any provision of section 206(b)(3) of the Federal Employees' Retirement 
Contribution Temporary Adjustment Act of 1983, the percentage of basic 
pay required under this subsection in the case of a participant 
described in section 4071b(c) of this title shall, with respect to any 
covered service (as defined by section 203(a)(3) of such Act) performed 
by such individual after December 31, 1983, and before January 1, 1987, 
be equal to 1.3 percent.
    (5) Notwithstanding paragraph (1), a special contribution for past 
service as a Foreign Service criminal investigator/inspector of the 
Office of the Inspector General, Agency for International Development 
which would have been creditable toward retirement under either section 
8336(c) or 8412(d) of title 5, and for which a special contribution has 
not been made shall be equal to the difference between the amount 
actually contributed pursuant to either this section or section 4071e of 
this title and the amount that should have been contributed pursuant to 
either section 8334 or 8422 of title 5.
    (6) Subject to paragraph (4) and subsection (h) of this section, for 
purposes of applying this subsection with respect to prior service as a 
special agent, the percentages of basic pay set forth in section 8334(c) 
of title 5, with respect to a law enforcement officer, shall apply 
instead of the percentages set forth in paragraph (1).

(e) Contribution for military or naval service

    (1) Subject to paragraph (5), each participant who has performed 
military or naval service before the date of separation on which the 
entitlement to any annuity under this part is based may pay to the 
Secretary a special contribution equal to 7 percent of the amount of the 
basic pay paid under section 204 of title 37, to the participant for 
each period of military or naval service after December 1956. The amount 
of such payments shall be based on such evidence of basic pay for 
military service as the participant may provide or if the Secretary 
determines sufficient evidence has not been so provided to adequately 
determine basic pay for military or naval service, such payment shall be 
based upon estimates of such basic pay provided to the Department under 
paragraph (4).
    (2) Any deposit made under paragraph (1) of this subsection more 
than two years after the later of--
        (A) October 17, 1983, or
        (B) the date on which the participant making the deposit first 
    became a participant in a Federal staff retirement system for 
    civilian employees,--

shall include interest on such amount computed and compounded annually 
beginning on the date of the expiration of the two-year period. The 
interest rate that is applicable in computing interest in any year under 
this paragraph shall be equal to the interest rate that is applicable 
for such year under subsection (d) of this section.
    (3) Any payment received by the Secretary under this section shall 
be remitted to the Fund.
    (4) The Secretary of Defense, the Secretary of Transportation, the 
Secretary of Commerce, or the Secretary of Health and Human Services, as 
appropriate, shall furnish such information to the Secretary as the 
Secretary may determine to be necessary for the administration of this 
subsection.
    (5) Effective with respect to any period of military or naval 
service after December 31, 1998, the percentage of basic pay under 
section 204 of title 37 payable under paragraph (1) shall be equal to 
the same percentage as would be applicable under section 8334(c) of 
title 5 for that same period for service as an employee.

(f) Exemption for certain military or naval service

    Contributions shall only be required to obtain credit for periods of 
military or naval service to the extent provided under subsection (e) of 
this section and section 4056(a) of this title, except that credit shall 
be allowed in the absence of contributions to individuals of Japanese 
ancestry under section 4056 of this title for periods of internment 
during World War II.

(g) Time of payment; offset against initial annuity accruals

    A participant or survivor may make a special contribution at any 
time before receipt of annuity and may authorize payment by offset 
against initial annuity accruals.

(h) Computation of contributions for participants with certain 
        creditable civilian service

    Effective with respect to pay periods beginning after December 31, 
1986, in administering this section with respect to a participant 
described in section 4071b(c) of this title whose service is employment 
for the purposes of title II of the Social Security Act [42 U.S.C. 401 
et seq.] and chapter 21 of title 26, contributions to the Fund and 
interest thereon shall be computed as if section 8334(k) of title 5 were 
applicable.

(Pub. L. 96-465, title I, Sec. 805, Oct. 17, 1980, 94 Stat. 2104; Ex. 
Ord. No. 12446, Sec. 4(a), Oct. 17, 1983, 48 F.R. 48444; Pub. L. 99-335, 
title IV, Secs. 402(a)(2), 405, June 6, 1986, 100 Stat. 609, 610; Pub. 
L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100-238, title 
II, Sec. 212, Jan. 8, 1988, 101 Stat. 1773; Pub. L. 102-499, Sec. 4(a), 
(b), Oct. 24, 1992, 106 Stat. 3265; Pub. L. 105-33, title VII, 
Sec. 7001(d)(2)(C), (D), Aug. 5, 1997, 111 Stat. 660, 661; Pub. L. 105-
382, Sec. 2(b), (c), Nov. 13, 1998, 112 Stat. 3407; Pub. L. 106-346, 
Sec. 101(a) [title V, Sec. 505(d)(2)], Oct. 23, 2000, 114 Stat. 1356, 
1356A-53.)

                          Amendment of Section

        Section 1(a) and (c) of Ex. Ord. No. 12446, Oct. 17, 1983, 48 
    F.R. 48443, set out as a note under section 4067 of this title, 
    provided that the second sentence of subsec. (d)(3) of this section, 
    applicable (i) to contributions for civilian service performed on or 
    after the first day of Nov. 1983, (ii) to contributions for prior 
    refunds to participants for which application is received by the 
    employing agency on and after such first day of Nov. 1983, and (iii) 
    to excess contributions under section 4055(h) of this title and 
    voluntary contributions under section 4065(a) of this title from the 
    first day of Nov. 1983, is deemed to be amended to provide that 
    interest shall be compounded at the annual rate of 3 percent per 
    annum through December 31, 1984, and thereafter at a rate equal to 
    the overall average yield to the Fund during the preceding fiscal 
    year from all obligations purchased by the Secretary of the Treasury 
    during such fiscal year under section 4059 of this title, as 
    determined by the Secretary of the Treasury.

                       References in Text

    Section 8422(a)(2) of title 5, referred to in subsec. (a)(2)(B), was 
amended by Pub. L. 105-33, title VII, Sec. 7001(b)(1)(A), Aug. 5, 1997, 
111 Stat. 657, by striking out par. (2) and adding a new par. (2). As so 
amended, section 8422(a)(2)(B) of Title 5, Government Organization and 
Employees, no longer specifies the amount to be withheld from the basic 
pay of a law enforcement officer. However, provisions relating to the 
amount to be withheld from the basic pay of a law enforcement officer 
are contained elsewhere in section 8422.
    Sections 206(b)(3) and 203(a)(3) of the Federal Employees' 
Retirement Contribution Temporary Adjustment Act of 1983, referred to in 
subsec. (d)(4), are set out as a note under section 8331 of Title 5, 
Government Organization and Employees.
    The Social Security Act, referred to in subsec. (h), is act Aug. 14, 
1935, ch. 531, 49 Stat. 620, as amended. Title II of the Social Security 
Act is classified generally to subchapter II (Sec. 401 et seq.) of 
chapter 7 of Title 42, The Public Health and Welfare. For complete 
classification of this Act to the Code, see section 1305 of Title 42 and 
Tables.


                               Amendments

    2000--Subsec. (d)(1). Pub. L. 106-346, in table in concluding 
provisions, substituted item relating to service period after December 
31, 2000, for items relating to service periods January 1, 2001, through 
December 31, 2002; and after December 31, 2002.
    1998--Subsec. (a)(1). Pub. L. 105-382, Sec. 2(b)(2), substituted 
``Except as otherwise provided in this section,'' for ``Except as 
provided in subsection (h) of this section,''.
    Subsec. (a)(3). Pub. L. 105-382, Sec. 2(b)(1), added par. (3).
    Subsec. (d)(6). Pub. L. 105-382, Sec. 2(c), added par. (6).
    1997--Subsec. (d)(1). Pub. L. 105-33, Sec. 7001(d)(2)(C), in table 
in concluding provisions, inserted items relating to service periods 
January 1, 1970, through December 31, 1998; January 1, 1999, through 
December 31, 1999; January 1, 2000, through December 31, 2000; January 
1, 2001, through December 31, 2002; and after December 31, 2002, and 
struck out former item relating to service period on and after January 
1, 1970.
    Subsec. (e)(1). Pub. L. 105-33, Sec. 7001(d)(2)(D)(i), substituted 
``Subject to paragraph (5), each'' for ``Each''.
    Subsec. (e)(5). Pub. L. 105-33, Sec. 7001(d)(2)(D)(ii), added par. 
(5).
    1992--Subsec. (a). Pub. L. 102-499, Sec. 4(a), designated existing 
provisions as par. (1) and added par. (2).
    Subsec. (d)(5). Pub. L. 102-499, Sec. 4(b), added par. (5).
    1988--Subsec. (d)(1). Pub. L. 100-238, in concluding provisions, 
substituted ``Fund. Special contributions for purposes of subparagraph 
(A) shall equal'' for ``Fund equal to'' and inserted ``Special 
contributions for refunds under subparagraph (B) shall equal the amount 
of the refund received by the participant.''
    1986--Subsec. (a). Pub. L. 99-335, Sec. 405(a)(1), inserted ``Except 
as provided in subsection (h) of this section,'' before ``7 percent''.
    Subsec. (d)(4). Pub. L. 99-335, Sec. 405(b), added par. (4).
    Subsec. (e)(1). Pub. L. 99-335, Sec. 402(a)(2), substituted ``part'' 
for ``subchapter''.
    Subsec. (h). Pub. L. 99-514 substituted ``Internal Revenue Code of 
1986'' for ``Internal Revenue Code of 1954'', which for purposes of 
codification was translated as ``title 26'' thus requiring no change in 
text.
    Pub. L. 99-335, Sec. 405(a)(2), added subsec. (h).
    1983--Subsecs. (e) to (g). Ex. Ord. No. 12446 added subsecs. (e) and 
(f), struck out former subsec. (e), and redesignated former subsec. (f) 
as (g). Prior to amendment, subsec. (e) read as follows: ``Contributions 
shall not be required for any period of military and naval service or 
for any period for which credit is allowed to individuals of Japanese 
ancestry under section 4056 of this title for periods of internment 
during World War II.''


                    Effective Date of 2000 Amendment

    Amendment by Pub. L. 106-346 effective upon the close of calendar 
year 2000 and applicable thereafter, see section 101(a) [title V, 
Sec. 505(i)] of Pub. L. 106-346, set out as a note under section 8334 of 
Title 5, Government Organization and Employees.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-382 effective Nov. 13, 1998, with 
provisions relating to applicability with respect to certain 
individuals, see section 4 of Pub. L. 105-382, as amended, set out as a 
note under section 4044 of this title.


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-33 effective Oct. 1, 1997, see section 
7001(f) of Pub. L. 105-33, set out as a note under section 8334 of Title 
5, Government Organization and Employees.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-238 effective 90 days after Jan. 8, 1988, 
see section 261(a) of Pub. L. 100-238, set out as a note under section 
4054 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-335 effective Jan. 1, 1987, see section 
702(a) of Pub. L. 99-335, set out as an Effective Date note under 
section 8401 of Title 5, Government Organization and Employees.


                    Effective Date of 1983 Amendment

    Amendment by Ex. Ord. No. 12446 effective Oct. 17, 1983, see section 
4(e) of Ex. Ord. No. 12446, set out under section 4067 of this title.


    Foreign Service Retirement and Disability System Contributions, 
                      Deductions, and Withholdings

    Pub. L. 106-346, Sec. 101(a) [title V, Sec. 505(h)], Oct. 23, 2000, 
114 Stat. 1356, 1356A-54, provided that: ``Notwithstanding any provision 
of section 805(a) of the Foreign Service Act of 1980 (22 U.S.C. 
4045(a)), during the period beginning on October 1, 2002, through 
December 31, 2002, each agency employing a participant in the Foreign 
Service Retirement and Disability System shall contribute to the Foreign 
Service Retirement and Disability Fund--
        ``(1) 7.5 percent of the basic pay of each participant covered 
    under section 805(a)(1) of such Act participating in the Foreign 
    Service Retirement and Disability System; and
        ``(2) 8 percent of the basic pay of each participant covered 
    under paragraph (2) or (3) of section 805(a) of such Act 
    participating in the Foreign Service Retirement and Disability 
    System,
in lieu of the agency contribution otherwise required under section 
805(a) of such Act.''
    Section 7001(d)(1)-(2)(B) of Pub. L. 105-33, as amended by Pub. L. 
106-346, Sec. 101(a) [title V, Sec. 505(d)(1)], Oct. 23, 2000, 114 Stat. 
1356, 1356A-53, provided that:
    ``(1) Agency contributions.--Notwithstanding section 805(a)(1) and 
(2) of the Foreign Service Act of 1980 (22 U.S.C. 4045(a)(1) and (2)), 
during the period beginning on October 1, 1997, through September 30, 
2002, each agency employing a participant in the Foreign Service 
Retirement and Disability System shall contribute to the Foreign Service 
Retirement and Disability Fund--
        ``(A) 8.51 percent of the basic pay of each participant covered 
    under section 805(a)(1) of such Act participating in the Foreign 
    Service Retirement and Disability System; and
        ``(B) 9.01 percent of the basic pay of each participant covered 
    under section 805(a)(2) of such Act participating in the Foreign 
    Service Retirement and Disability System;
in lieu of the agency contribution otherwise required under section 
805(a)(1) and (2) of such Act.
    ``(2) Individual deductions, withholdings, and deposits.--
        ``(A) In general.--Notwithstanding section 805(a)(1) of the 
    Foreign Service Act of 1980 (22 U.S.C. 4045(a)(1)), beginning on 
    January 1, 1999, through December 31, 2000, the amount withheld and 
    deducted from the basic pay of a participant in the Foreign Service 
    Retirement and Disability System shall be as follows:




                                          ``7.25.................  January 1, 1
999, to December 31, 1999.
                                          ``7.4..................  January 1, 2
000, to December 31, 2000.



        ``(B) Foreign service criminal investigators/inspectors of the 
    office of the inspector general, agency for international 
    development.--Notwithstanding section 805(a)(2) of the Foreign 
    Service Act of 1980 (22 U.S.C. 4045(a)(2)), beginning on January 1, 
    1999, through December 31, 2000, the amount withheld and deducted 
    from the basic pay of an eligible Foreign Service criminal 
    investigator/inspector of the Office of the Inspector General, 
    Agency for International Development participating in the Foreign 
    Service Retirement and Disability System shall be as follows:




                                          ``7.75.................  January 1, 1
999, to December 31, 1999.
                                          ``7.9..................  January 1, 2
000, to December 31, 2000.''


                  Section Referred to in Other Sections

    This section is referred to in sections 4043, 4046, 4051, 4055, 
4056, 4061, 4062, 4063, 4071c of this title; title 5 section 5545a.
