
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: 5USC8342]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
                         CHAPTER 83--RETIREMENT
 
                SUBCHAPTER III--CIVIL SERVICE RETIREMENT
 
Sec. 8342. Lump-sum benefits; designation of beneficiary; order 
        of precedence
        
    (a) Subject to subsection (j) of this section, an employee or Member 
who--
        (1)(A) is separated from the service for at least thirty-one 
    consecutive days; or
        (B) is transferred to a position in which he is not subject to 
    this subchapter, or chapter 84 of this title, and remains in such a 
    position for at least thirty-one consecutive days;
        (2) files an application with the Office of Personnel Management 
    for payment of the lump-sum credit;
        (3) is not reemployed in a position in which he is subject to 
    this subchapter, or chapter 84 of this title, at the time he files 
    the application; and
        (4) will not become eligible to receive an annuity within 
    thirty-one days after filing the application,

is entitled to be paid the lump-sum credit. Except as provided in 
section 8343a or 8334(d)(2) of this title, the receipt of the payment of 
the lump-sum credit by the employee or Member voids all annuity rights 
under this subchapter based on the service on which the lump-sum credit 
is based, until the employee or Member is reemployed in the service 
subject to this subchapter. In applying this subsection to an employee 
or Member who becomes subject to chapter 84 (other than by an election 
under title III of the Federal Employees' Retirement System Act of 1986) 
and who, while subject to such chapter, files an application with the 
Office for a payment under this subsection--
        (i) entitlement to payment of the lump-sum credit shall be 
    determined without regard to paragraph (1) or (3) if, or to the 
    extent that, such lump-sum credit relates to service of a type 
    described in clauses (i) through (iii) of section 302(a)(1)(C) of 
    the Federal Employees' Retirement System Act of 1986; and
        (ii) if, or to the extent that, the lump-sum credit so relates 
    to service of a type referred to in clause (i), it shall 
    (notwithstanding section 8331(8)) consist of--
            (I) the amount by which any unrefunded amount described in 
        section 8331(8)(A) or (B) relating to such service, exceeds 1.3 
        percent of basic pay for such service; and
            (II) interest on the amount payable under subclause (I), 
        computed in a manner consistent with applicable provisions of 
        section 8331(8).

    (b) Under regulations prescribed by the Office, a present or former 
employee or Member may designate a beneficiary or beneficiaries for the 
purpose of this subchapter.
    (c) Lump-sum benefits authorized by subsections (d)-(f) of this 
section shall be paid to the person or persons surviving the employee or 
Member and alive at the date title to the payment arises in the 
following order of precedence, and the payment bars recovery by any 
other person:
        First, to the beneficiary or beneficiaries designated by the 
    employee or Member in a signed and witnessed writing received in the 
    Office before his death. For this purpose, a designation, change, or 
    cancellation of beneficiary in a will or other document not so 
    executed and filed has no force or effect.
        Second, if there is no designated beneficiary, to the widow or 
    widower of the employee or Member.
        Third, if none of the above, to the child or children of the 
    employee or Member and descendants of deceased children by 
    representation.
        Fourth, if none of the above, to the parents of the employee or 
    Member or the survivor of them.
        Fifth, if none of the above, to the duly appointed executor or 
    administrator of the estate of the employee or Member.
        Sixth, if none of the above, to such other next of kin of the 
    employee or Member as the Office determines to be entitled under the 
    laws of the domicile of the employee or Member at the date of his 
    death.

For the purpose of this subsection, ``child'' includes a natural child 
and an adopted child, but does not include a stepchild.
    (d) If an employee or Member dies--
        (1) without a survivor; or
        (2) with a survivor or survivors and the right of all survivors 
    terminates before a claim for survivor annuity is filed;

or if a former employee or Member not retired dies, the lump-sum credit 
shall be paid.
    (e) If all annuity rights under this subchapter based on the service 
of a deceased employee or Member terminate before the total annuity paid 
equals the lump-sum credit, the difference shall be paid.
    (f) If an annuitant dies, annuity accrued and unpaid shall be paid.
    (g) Annuity accrued and unpaid on the termination, except by death, 
of the annuity of an annuitant or survivor annuitant shall be paid to 
that individual. Annuity accrued and unpaid on the death of a survivor 
annuitant shall be paid in the following order of precedence, and the 
payment bars recovery by any other person:
        First, to the duly appointed executor or administrator of the 
    estate of the survivor annuitant.
        Second, if there is no executor or administrator, payment may be 
    made, after 30 days from the date of death of the survivor 
    annuitant, to such next of kin of the survivor annuitant as the 
    Office determines to be entitled under the laws of the domicile of 
    the survivor annuitant at the date of his death.

    (h) Amounts deducted and withheld from the basic pay of an employee 
or Member from the first day of the first month which begins after he 
has performed sufficient service (excluding service which the employee 
or Member elects to eliminate for the purpose of annuity computation 
under section 8339 of this title) to entitle him to the maximum annuity 
provided by section 8339 of this title, together with interest on the 
amounts at the rate of 3 percent a year compounded annually from the 
date of the deductions to the date of retirement or death, shall be 
applied toward any deposit due under section 8334 of this title, and any 
balance not so required is deemed a voluntary contribution for the 
purpose of section 8343 of this title.
    (i) An employee who--
        (1) is separated from the service before July 12, 1960; and
        (2) continues in the service after July 12, 1960, without break 
    in service of 1 workday or more;

is entitled to the benefits of subsection (h) of this section.
    (j)(1)(A) Payment of the lump-sum credit under subsection (a) may be 
made only if the spouse, if any, and any former spouse of the employee 
or Member are notified of the employee or Member's application.
    (B) The Office shall prescribe regulations under which the lump-sum 
credit shall not be paid without the consent of a spouse or former 
spouse of the employee or Member where the Office has received such 
additional information and documentation as the Office may require 
that--
        (i) a court order bars payment of the lump-sum credit in order 
    to preserve the court's ability to award an annuity under section 
    8341(h) or section 8345(j); or
        (ii) payment of the lump-sum credit would extinguish the 
    entitlement of the spouse or former spouse, under a court order on 
    file with the Office, to a survivor annuity under section 8341(h) or 
    to any portion of an annuity under section 8345(j).

    (2)(A) Notification of a spouse or former spouse under this 
subsection shall be made in accordance with such requirements as the 
Office shall by regulation prescribe.
    (B) Under the regulations, the Office may provide that paragraph 
(1)(A) of this subsection may be waived with respect to a spouse or 
former spouse if the employee or Member establishes to the satisfaction 
of the Office that the whereabouts of such spouse or former spouse 
cannot be determined.
    (3) The Office shall prescribe regulations under which this 
subsection shall be applied in any case in which the Office receives two 
or more such orders or decrees.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 579; Pub. L. 90-83, Sec. 1(81), 
Sept. 11, 1967, 81 Stat. 217; Pub. L. 95-454, title IX, Sec. 906(a)(2), 
(3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 97-253, title III, 
Sec. 303(c), Sept. 8, 1982, 96 Stat. 794; Pub. L. 97-346, Sec. 3(f), 
Oct. 15, 1982, 96 Stat. 1648; Pub. L. 98-615, Sec. 2(5), Nov. 8, 1984, 
98 Stat. 3201; Pub. L. 99-251, title II, Sec. 208, Feb. 27, 1986, 100 
Stat. 25; Pub. L. 99-335, title II, Secs. 204(b)(2), 207(h), June 6, 
1986, 100 Stat. 592, 596; Pub. L. 100-238, title I, Sec. 105(b), Jan. 8, 
1988, 101 Stat. 1746; Pub. L. 101-508, title VII, Sec. 7001(b)(2)(D), 
Nov. 5, 1990, 104 Stat. 1388-329; Pub. L. 106-361, Sec. 3(a), Oct. 27, 
2000, 114 Stat. 1402.)

                      Historical and Revision Notes
                                1966 Act
------------------------------------------------------------------------
                                                    Revised Statutes and
     Derivation                U.S. Code             Statutes at Large
------------------------------------------------------------------------
                     5 U.S.C. 2261.                July 31, 1956, ch.
                                                    804, Sec.  401
                                                    ``Sec. 11'' 70 Stat.
                                                    755.
                     ............................  July 12, 1960, Pub.
                                                    L. 86-622, Sec.
                                                    1(a), 74 Stat. 409.
                     ............................  Oct. 4, 1961, Pub. L.
                                                    87-350, Sec.  3, 75
                                                    Stat. 771.
------------------------------------------------------------------------

    In subsection (a), the words ``before October 1, 1956'' are 
substituted for ``prior to the effective date of the Civil Service 
Retirement Act Amendments of 1956'' on authority of Sec. 406 of the Act 
of July 31, 1956, ch. 804, 70 Stat. 761.
    In subsection (g), the words ``the expiration of'' are omitted as 
surplusage.
    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
------------------------------------------------------------------------
                                                    Source (Statutes at
 Section of title 5       Source (U.S. Code)               Large)
------------------------------------------------------------------------
8342(a)............  [No source].                  [No source.]
8342(c)............  5 App.: 2261(c).              Mar. 23, 1966, Pub.
                                                    L. 89-373, Sec.  2,
                                                    80 Stat. 78.
                     5 App.: 2251(j) (last         Apr. 25, 1966, Pub.
                      sentence).                    L. 89-407, Sec.  1
                                                    (less words before
                                                    1st comma), 80 Stat.
                                                    131.
------------------------------------------------------------------------

    In subsection (a), the amendment is made for consistency within the 
subchapter and to reflect that it is the individual, rather than the 
position, that is subject to the subchapter.
    In the last sentence of subsection (c), the words ``this 
subsection'' are substituted for ``section 11'' to reflect the 
codification of title 5, United States Code.

                       References in Text

    The Federal Employees' Retirement System Act of 1986, referred to in 
subsec. (a), is Pub. L. 99-335, June 6, 1986, 100 Stat. 514, as amended. 
Title III of the Federal Employees' Retirement System Act of 1986 
amended sections 3121 and 6103 of Title 26, Internal Revenue Code, 
section 1005 of Title 39, Postal Service, and section 410 of Title 42, 
The Public Health and Welfare, enacted provisions set out as notes under 
sections 8331, 8401, 8432, and 8472 of this title and section 6103 of 
Title 26, and amended provisions set out as a note under section 8331 of 
this title. Section 302 of that Act is set out as a note under section 
8331 of this title. For complete classification of this Act to the Code, 
see Short Title note set out under section 8401 of this title and 
Tables.


                               Amendments

    2000--Subsec. (j)(1). Pub. L. 106-361 amended par. (1) generally. 
Prior to amendment, par. (1) read as follows: ``Payment of the lump-sum 
credit under subsection (a) of this section--
        ``(A) may be made only if any current spouse and any former 
    spouse of the employee or Member are notified of the employee or 
    Member's application; and
        ``(B) shall be subject to the terms of a court decree of 
    divorce, annulment, or legal separation or any court order or court 
    approved property settlement agreement incident to such decree if--
            ``(i) the decree, order, or agreement expressly relates to 
        any portion of the lump-sum credit involved; and
            ``(ii) payment of the lump-sum credit would extinguish 
        entitlement of the employee's or Member's spouse or former 
        spouse to a survivor annuity under section 8341(h) of this title 
        or to any portion of an annuity under section 8345(j) of this 
        title.''
    1990--Subsec. (a). Pub. L. 101-508 inserted ``or 8334(d)(2)'' after 
``8343a'' in second sentence.
    1988--Subsec. (a). Pub. L. 100-238 amended last sentence of subsec. 
(a) generally. Prior to amendment, last sentence read as follows: ``In 
applying this subsection with respect to an employee or Member who 
becomes subject to chapter 84 of this title, entitlement to payment of 
the lump-sum credit shall be determined without regard to paragraph (1) 
or (3) if, and to the extent that, such lump-sum credit relates to 
service of a type described in clauses (i) through (iii) of section 
302(a)(1)(C) of the Federal Employees' Retirement System Act of 1986.''
    1986--Subsec. (a). Pub. L. 99-335 inserted ``, or chapter 84 of this 
title,'' in pars. (1)(B) and (3), substituted ``Except as provided in 
section 8343a of this title, the'' for ``The'' in second sentence, and 
inserted provisions regarding entitlement by an employee or Member who 
becomes subject to chapter 84 of this title to payment of a lump-sum 
credit.
    Subsec. (j)(1)(B). Pub. L. 99-251 amended subpar. (B) generally. 
Prior to amendment, subpar. (B) read as follows: ``in any case in which 
there is a former spouse, shall be subject to the terms of a court order 
or decree issued with respect to such former spouse if--
        ``(i) the order or decree expressly relates to any portion of 
    the lump-sum credit involved, and
        ``(ii) payment of the lump-sum credit would extinguish 
    entitlement of the former spouse to a survivor annuity under section 
    8341(h) of this title or to any portion of an annuity under section 
    8345(j) of this title.''
    1984--Subsec. (a). Pub. L. 98-615, Sec. 2(5)(A), substituted 
``Subject to subsection (j) of this section, an'' for ``An'' in 
provisions preceding par. (1).
    Subsec. (j). Pub. L. 98-615, Sec. 2(5)(B), added subsec. (j).
    1982--Subsec. (a). Pub. L. 97-346 substituted ``such a position'' 
for ``such position'' in par. (1)(B).
    Pub. L. 97-253, Sec. 303(c), substituted provisions that an employee 
or Member who is separated from the service for at least 31 consecutive 
days or is transferred to a position in which he is not subject to this 
subchapter for 31 days, and who files an application with the Office of 
Personnel Management for payment of a lump-sum credit, is not reemployed 
in a position subject to this subchapter at the time of filing, and will 
not be eligible for an annuity within 31 days of filing, is entitled to 
be paid the lump-sum credit and upon receipt of such payment, all 
annuity rights based on the service upon which the credit is based are 
voided until reemployment under this subchapter occurs for provisions 
that such employee or Member who was separated from the service, or was 
transferred to a position in which he did not continue subject to this 
subchapter, was entitled to be paid the lump-sum credit if his 
separation or transfer occurred and application for payment was filed 
with the Office of Personnel Management at least 31 days before the 
earliest commencing date of any annuity for which he was eligible, that 
the receipt of payment of the lump-sum credit by the individual voided 
all annuity rights under this subchapter until he was reemployed in the 
service subject to this subchapter, and that this subsection also 
applied to an employee or Member separated before October 1, 1956, after 
completing at least 20 years of civilian service.
    1978--Subsecs. (a) to (c), (g). Pub. L. 95-454 substituted ``Office 
of Personnel Management'' for ``Civil Service Commission'' and 
``Office'' for ``Commission''.


                    Effective Date of 1990 Amendment

    Amendment by Pub. L. 101-508 effective with respect to any annuity 
having a commencement date later than Dec. 1, 1990, see section 
7001(b)(3) of Pub. L. 101-508, set out as a note under section 8334 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 this title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-615 effective May 7, 1985, with enumerated 
exceptions and specific applicability provisions, see section 4(a)(1) of 
Pub. L. 98-615, as amended, set out as a note under section 8341 of this 
title.


                    Effective Date of 1982 Amendment

    Section 303(d)(2) of Pub. L. 97-253 provided that: ``The amendment 
made by subsection (c) [amending this section] shall take effect October 
1, 1982.''


                    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.


Reestablishment of Right To Receive Annuity by Judges Who Received Lump-
                               sum Credit

    Pub. L. 96-504, Sec. 2, Dec. 5, 1980, 94 Stat. 2741, provided that: 
``A present or former justice or judge of the United States, as defined 
by section 451 of title 28, United States Code, who, prior to the 
effective date of this section [Dec. 5, 1980], voided his right to 
receive an annuity under subchapter III of chapter 83 of title 5, United 
States Code, by applying for and receiving a refund of his lump-sum 
credit while serving as such a justice or judge may, upon application 
filed with the Office of Personnel Management within one year following 
the effective date of this section, redeposit such refund with interest 
computed under section 8334(e) of such title 5 and thereby reestablish 
his right to receive an annuity under such subchapter effective on the 
date he otherwise was eligible to receive an annuity. The surviving 
spouse of any such justice or judge who dies before the effective date 
of this section may apply to make such redeposit within one year 
following the effective date of this section and receive both (1) the 
amount of the annuity which the justice or judge would have been 
entitled to receive before his death had application been made by him 
for the annuity and (2) any survivor annuity the justice or judge could 
have provided under the provisions of law in effect at the time of 
separation from the service on which title to the annuity is based.''

                  Section Referred to in Other Sections

    This section is referred to in sections 8316, 8334, 8339, 8343, 8344 
of this title; title 16 section 1168; title 26 section 3121; title 42 
section 410.
