
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: 5USC8337]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
                         CHAPTER 83--RETIREMENT
 
                SUBCHAPTER III--CIVIL SERVICE RETIREMENT
 
Sec. 8337. Disability retirement

    (a) An employee who completes 5 years of civilian service and has 
become disabled shall be retired on the employee's own application or on 
application by the employee's agency. Any employee shall be considered 
to be disabled only if the employee is found by the Office of Personnel 
Management to be unable, because of disease or injury, to render useful 
and efficient service in the employee's position and is not qualified 
for reassignment, under procedures prescribed by the Office, to a vacant 
position which is in the agency at the same grade or level and in which 
the employee would be able to render useful and efficient service. For 
the purpose of the preceding sentence, an employee of the United States 
Postal Service shall be considered not qualified for a reassignment 
described in that sentence if the reassignment is to a position in a 
different craft or is inconsistent with the terms of a collective 
bargaining agreement covering the employee. A judge of the United States 
Court of Appeals for the Armed Forces who completes 5 years of civilian 
service and who is found by the Office to be disabled for useful and 
efficient service as a judge of such court or who is removed for mental 
or physical disability under section 942(c) of title 10 shall be retired 
on the judge's own application or upon such removal. A Member who 
completes 5 years of Member service and is found by the Office to be 
disabled for useful and efficient service as a Member because of disease 
or injury shall be retired on the Member's own application. An annuity 
authorized by this section is computed under section 8339(g) of this 
title, unless the employee or Member is eligible for a higher annuity 
computed under section 8339(a) through (e), (n), (q), (r), or (s).
    (b) A claim may be allowed under this section only if the 
application is filed with the Office before the employee or Member is 
separated from the service or within 1 year thereafter. This time 
limitation may be waived by the Office for an employee or Member who at 
the date of separation from service or within 1 year thereafter is 
mentally incompetent, if the application is filed with the Office within 
1 year from the date of restoration of the employee or Member to 
competency or the appointment of a fiduciary, whichever is earlier.
    (c) An annuitant receiving disability retirement annuity from the 
Fund shall be examined under the direction of the Office--
        (1) at the end of 1 year from the date of the disability 
    retirement; and
        (2) annually thereafter until he becomes 60 years of age;

unless his disability is permanent in character. If the annuitant fails 
to submit to examination as required by this section, payment of the 
annuity shall be suspended until continuance of the disability is 
satisfactorily established.
    (d) If an annuitant receiving disability retirement annuity from the 
Fund, before becoming 60 years of age, recovers from his disability, 
payment of the annuity terminates on reemployment by the Government or 1 
year after the date of the medical examination showing the recovery, 
whichever is earlier. If an annuitant receiving disability retirement 
annuity from the Fund, before becoming 60 years of age, is restored to 
an earning capacity fairly comparable to the current rate of pay of the 
position occupied at the time of retirement, payment of the annuity 
terminates on reemployment by the Government or 180 days after the end 
of the calendar year in which earning capacity is so restored, whichever 
is earlier. Earning capacity is deemed restored if in any calendar year 
the income of the annuitant from wages or self-employment or both equals 
at least 80 percent of the current rate of pay of the position occupied 
immediately before retirement.
    (e) If an annuitant whose annuity is terminated under subsection (d) 
of this section is not reemployed in a position in which he is subject 
to this subchapter, he is deemed, except for service credit, to have 
been involuntarily separated from the service for the purpose of this 
subchapter as of the date of termination of the disability annuity, and 
after that termination is entitled to annuity under the applicable 
provisions of this subchapter. If an annuitant whose annuity is 
heretofore or hereafter terminated because of an earning capacity 
provision of this subchapter or an earlier statute--
        (1) is not reemployed in a position in which he is subject to 
    this subchapter; and
        (2) has not recovered from the disability for which he was 
    retired;

his annuity shall be restored at the same rate effective the first of 
the year following any calendar year in which his income from wages or 
self-employment or both is less than 80 percent of the current rate of 
pay of the position occupied immediately before retirement. If an 
annuitant whose annuity is heretofore or hereafter terminated because of 
a medical finding that he has recovered from disability is not 
reemployed in a position in which he is subject to this subchapter, his 
annuity shall be restored at the same rate effective from the date of 
medical examination showing a recurrence of the disability. The second 
and third sentences of this subsection do not apply to an individual who 
has become 62 years of age and is receiving or is eligible to receive 
annuity under the first sentence of this subsection.
    (f)(1) An individual is not entitled to receive--
        (A) an annuity under this subchapter, and
        (B) compensation for injury to, or disability of, such 
    individual under subchapter I of chapter 81, other than compensation 
    payable under section 8107,

covering the same period of time.
    (2) An individual is not entitled to receive an annuity under this 
subchapter and a concurrent benefit under subchapter I of chapter 81 on 
account of the death of the same person.
    (3) Paragraphs (1) and (2) do not bar the right of a claimant to the 
greater benefit conferred by either this subchapter or subchapter I of 
chapter 81.
    (g) If an individual is entitled to an annuity under this 
subchapter, and the individual receives a lump-sum payment for 
compensation under section 8135 based on the disability or death of the 
same person, so much of the compensation as has been paid for a period 
extended beyond the date payment of the annuity commences, as determined 
by the Department of Labor, shall be refunded to that Department for 
credit to the Employees' Compensation Fund. Before the individual may 
receive the annuity, the individual shall--
        (1) refund to the Department of Labor the amount representing 
    the commuted compensation payments for the extended period; or
        (2) authorize the deduction of the amount from the annuity.

Deductions from the annuity may be made from accrued or accruing 
payments. The amounts deducted and withheld from the annuity shall be 
transmitted to the Department of Labor for reimbursement to the 
Employees' Compensation Fund. When the Department of Labor finds that 
the financial circumstances of an individual entitled to an annuity 
under this subchapter warrant deferred refunding, deductions from the 
annuity may be prorated against and paid from accruing payments in such 
manner as the Department determines appropriate.
    (h)(1) As used in this subsection, the term ``technician'' means an 
individual employed under section 709(a) of title 32 or section 10216 of 
title 10 who, as a condition of the employment, is required under 
section 709(b) of title 32 or section 10216 of title 10, respectively, 
to be a member of the Selected Reserve.
    (2)(A) Except as provided in subparagraph (B) of this paragraph, an 
individual shall be retired under this section if the individual--
        (i) is separated from employment as a technician under section 
    709(e)(1) of title 32 or section 10216 of title 10 by reason of a 
    disability that disqualifies the individual from membership in the 
    Selected Reserve;
        (ii) is not considered to be disabled under the second sentence 
    of subsection (a) of this section;
        (iii) is not appointed to a position in the Government (whether 
    under paragraph (3) of this subsection or otherwise); and
        (iv) has not declined an offer of an appointment to a position 
    in the Government under paragraph (3) of this subsection.

    (B) Payment of any annuity for an individual pursuant to this 
subsection terminates--
        (i) on the date the individual is appointed to a position in the 
    Government (whether pursuant to paragraph (3) of this subsection or 
    otherwise);
        (ii) on the date the individual declines an offer of appointment 
    to a position in the Government under paragraph (3); or
        (iii) as provided under subsection (d).

    (3) Any individual applying for or receiving any annuity pursuant to 
this subsection shall, in accordance with regulations prescribed by the 
Office, be considered by any agency of the Government before any vacant 
position in the agency is filled if--
        (A) the position is located within the commuting area of the 
    individual's former position;
        (B) the individual is qualified to serve in such position, as 
    determined by the head of the agency; and
        (C) the position is at the same grade or equivalent level as the 
    position from which the individual was separated under section 
    709(e)(1) of title 32 or section 10216 of title 10.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 572; Pub. L. 90-83, Sec. 1(76), 
Sept. 11, 1967, 81 Stat. 214; Pub. L. 95-454, title IX, Sec. 906(a)(2), 
(3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96-499, title IV, 
Sec. 403(a), Dec. 5, 1980, 94 Stat. 2605; Pub. L. 97-253, title III, 
Sec. 302(a), Sept. 8, 1982, 96 Stat. 792; Pub. L. 98-94, title XII, 
Sec. 1256(c), Sept. 24, 1983, 97 Stat. 701; Pub. L. 100-238, title I, 
Sec. 124(a)(1)(A), Jan. 8, 1988, 101 Stat. 1755; Pub. L. 101-189, div. 
A, title XIII, Sec. 1304(b)(2), Nov. 29, 1989, 103 Stat. 1577; Pub. L. 
101-428, Sec. 2(d)(1), Oct. 15, 1990, 104 Stat. 929; Pub. L. 102-378, 
Sec. 2(61), Oct. 2, 1992, 106 Stat. 1354; Pub. L. 103-337, div. A, title 
IX, Sec. 924(d)(1)(A), Oct. 5, 1994, 108 Stat. 2832; Pub. L. 105-61, 
title V, Sec. 516(a)(2), Oct. 10, 1997, 111 Stat. 1306; Pub. L. 106-65, 
div. A, title V, Sec. 522(d), Oct. 5, 1999, 113 Stat. 597; Pub. L. 106-
553, Sec. 1(a)(2) [title III, Sec. 308(h)(1)], Dec. 21, 2000, 114 Stat. 
2762, 2762A-88.)

                      Historical and Revision Notes
                                1966 Act
------------------------------------------------------------------------
                                                    Revised Statutes and
     Derivation                U.S. Code             Statutes at Large
------------------------------------------------------------------------
                     5 U.S.C. 2257.                July 31, 1956, ch.
                                                    804, Sec.  401
                                                    ``Sec. 7'', 70 Stat.
                                                    750.
                                                   Oct. 4, 1961, Pub. L.
                                                    87-350, Sec.  4(a),
                                                    75 Stat. 771.
------------------------------------------------------------------------

    In subsection (c), the words ``receiving disability retirement 
annuity from the Fund'' are coextensive with and substituted for 
``retired under this section or under section 6 of the Act of May 29, 
1930, as amended''.
    In subsection (g), the words ``Notwithstanding any provision of law 
to the contrary'' are omitted as unnecessary. The words ``Employees' 
Compensation Fund'' are substituted for ``Federal Employees' 
Compensation Fund'' to conform to the title of that Fund as set forth in 
section 8147.
    Standard changes are made to conform with the definitions applicable 
and the style of this title as outlined in the preface to the report.

                            1967 Act

    This section amends 5 U.S.C. 8337(e) for consistency within the 
subchapter and to reflect that it is the individual, rather than the 
position, that is subject to the subchapter.


                               Amendments

    2000--Subsec. (a). Pub. L. 106-553 substituted ``8339(a) through 
(e), (n), (q), (r), or (s)'' for ``8339(a)-(e), (n), (q), or (r)'' in 
last sentence.
    1999--Subsec. (h)(1). Pub. L. 106-65, Sec. 522(d)(1), inserted ``or 
section 10216 of title 10'' after ``title 32'' and substituted ``title 
32 or section 10216 of title 10, respectively, to be a member of the 
Selected Reserve.'' for ``such title to be a member of the National 
Guard and to hold a specified military grade.''
    Subsec. (h)(2)(A)(i). Pub. L. 106-65, Sec. 522(d)(2), inserted ``or 
section 10216 of title 10'' after ``title 32'' and substituted 
``Selected Reserve'' for ``National Guard or from holding the military 
grade required for such employment''.
    Subsec. (h)(3)(C). Pub. L. 106-65, Sec. 522(d)(3), inserted ``or 
section 10216 of title 10'' after ``title 32''.
    1997--Subsec. (a). Pub. L. 105-61 substituted ``(q), or (r)'' for 
``or (q)''.
    1994--Subsec. (a). Pub. L. 103-337 substituted ``Court of Appeals 
for the Armed Forces'' for ``Court of Military Appeals''.
    1992--Subsec. (a). Pub. L. 102-378 substituted ``if'' for ``is'' 
after ``employee'' in second sentence.
    1990--Subsec. (a). Pub. L. 101-428 substituted ``8339(a)-(e), (n), 
or (q)'' for ``8339(a)-(e) or (n)''.
    1989--Subsec. (a). Pub. L. 101-189 substituted ``section 942(c) of 
title 10'' for ``section 867(a)(2) of title 10''.
    1988--Subsec. (f). Pub. L. 100-238 added subsec. (f) and struck out 
former subsec. (f) which read as follows: ``An individual is not 
entitled to receive an annuity under this subchapter and compensation 
for injury or disability to himself under subchapter I of chapter 81 of 
this title covering the same period of time. This provision does not bar 
the right of a claimant to the greater benefit conferred by either 
subchapter for any part of the same period of time. Neither this 
provision nor any provision of subchapter I of chapter 81 of this title 
denies to an individual an annuity accruing to him under this subchapter 
on account of service performed by him, or denies any concurrent benefit 
to him under subchapter I of chapter 81 of this title on account of the 
death of another individual.''
    Subsec. (g). Pub. L. 100-238 added subsec. (g) and struck out former 
subsec. (g) which read as follows: ``The right of an individual entitled 
to an annuity under this subchapter is not affected because he has 
received a lump-sum payment for compensation under section 8135 of this 
title. However, if the annuity is payable on account of the same 
disability for which compensation under section 8135 of this title has 
been paid, so much of the compensation as has been paid for a period 
extended beyond the date the annuity becomes effective, as determined by 
the Department of Labor, shall be refunded to that Department to be 
covered into the Employees' Compensation Fund. Before the individual may 
receive the annuity he shall--
        ``(1) refund to the Department of Labor the amount representing 
    the commuted compensation payments for the extended period; or
        ``(2) authorize the deduction of that amount from the annuity 
    payable to him under this subchapter, which amount shall be 
    transmitted to the Department of Labor for reimbursement to the 
    Employees' Compensation Fund.
Deductions from the annuity may be made from accrued and accruing 
payments. When the Department of Labor finds that the financial 
circumstances of the annuitant warrant deferred refunding, deductions 
from the annuity may be prorated against and paid from accruing payments 
in such manner as that Department determines.''
    1983--Subsec. (a). Pub. L. 98-94 inserted provision that a judge of 
the United States Court of Military Appeals who completes 5 years of 
civilian service and who is found by the Office to be disabled for 
useful and efficient service as a judge of such court or who is removed 
for mental or physical disability under section 867(a)(2) of title 10 
shall be retired on the judge's own application or upon such removal.
    1982--Subsec. (d). Pub. L. 97-253, Sec. 302(a)(1), (2), substituted 
``180 days'' for ``1 year'' in provision relating to restoration of an 
annuitant to an earning capacity fairly comparable to the current rate 
of pay of the position occupied at the time of retirement, and ``any 
calendar year'' for ``each of 2 succeeding calendar years''.
    Subsec. (h). Pub. L. 97-253, Sec. 302(a)(3), added subsec. (h).
    1980--Subsec. (a). Pub. L. 96-499 provided that an employee was to 
be considered disabled only if the employee were found by the Office of 
Personnel Management to be unable to render useful and efficient service 
in the employee's position and was not qualified for reassignment to a 
vacant position in the agency at the same grade or level and provided 
that an employee in the Postal Service was to be considered not 
qualified for such reassignment if such reassignment were to a position 
in a different craft or were inconsistent with the terms of the 
appropriate collective bargaining agreement.
    1978--Subsecs. (a) to (c). Pub. L. 95-454 substituted ``Office of 
Personnel Management'' and ``Office'' for ``Civil Service Commission'' 
and ``Commission'', respectively, wherever appearing.


                    Effective Date of 2000 Amendment

    Amendment by Pub. L. 106-553 effective on the first day of the first 
applicable pay period that begins on Dec. 21, 2000, and applicable only 
to an individual who is employed as a member of the Supreme Court Police 
after Dec. 21, 2000, see section 1(a)(2) [title III, Sec. 308(i), (j)] 
of Pub. L. 106-553, set out in a Supreme Court Police Retirement note 
under section 8331 of this title.


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-61 applicable to any annuity commencing 
before, on, or after Oct. 10, 1997, and effective with regard to any 
payment made after the first month following Oct. 10, 1997, see section 
516(b) of Pub. L. 105-61, set out as a note under section 8334 of this 
title.


                    Effective Date of 1988 Amendment

    Section 124(c) of Pub. L. 100-238 provided that:
    ``(1) In general.--Except as provided in paragraph (2), the 
amendments made by this section [enacting section 8464a of this title, 
amending this section, renumbering section 8457 of this title as section 
8456, and repealing former section 8456 of this title] shall be 
effective as of January 1, 1987, and shall apply with respect to 
benefits payable based on a death or disability occurring on or after 
that date.
    ``(2) Exception.--The amendment made by subsection (a)(1)(A) 
[amending this section] shall take effect on the date of the enactment 
of this Act [Jan. 8, 1988] and shall apply with respect to benefits 
payable based on a death or disability occurring on or after that 
date.''


                    Effective Date of 1982 Amendment

    Section 302(c) of Pub. L. 97-253, as amended by Pub. L. 97-346, 
Sec. 3(i), Oct. 15, 1982, 96 Stat. 1649, provided that:
    ``(1) Except as provided in paragraphs (2) and (3), the amendments 
made by subsections (a) and (b) [amending this section and section 8347 
of this title] shall take effective October 1, 1982.
    ``(2) The amendments made by paragraphs (1) and (2) of subsection 
(a) [amending this section] shall take effect with respect to income 
earned after December 31, 1982.
    ``(3) Subsection (h) of section 8337 of title 5, United States Code 
(as added by subsection (a)) shall apply to any technician (as defined 
in paragraph (1) of such subsection (h)) who is separated from 
employment as a technician on or after October 1, 1982. Such subsection 
(h) shall also apply to any technician separated from employment as a 
technician on or after December 31, 1979, and before October 1, 1982, if 
application therefor is made to the Office of Personnel Management 
within 12 months after the date of the enactment of this Act [Sept. 8, 
1982]. Any annuity resulting from such application shall commence as of 
the day after the date such application is received by the Office.''


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-499 effective on 90th day after Dec. 5, 
1980, see section 403(c) of Pub. L. 96-499, set out as a note under 
section 8331 of this title.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-454 effective 90 days after Oct. 13, 1978, 
see section 907 of Pub. L. 95-454, set out as a note under section 1101 
of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 3304, 7511, 8339, 8343a, 
8345, 8347, 8349, 8706, 8908 of this title; title 38 sections 7426, 
7438; title 50 section 403s.
