
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: 5USC8345]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
                         CHAPTER 83--RETIREMENT
 
                SUBCHAPTER III--CIVIL SERVICE RETIREMENT
 
Sec. 8345. Payment of benefits; commencement, termination, and 
        waiver of annuity
        
    (a) Each annuity is stated as an annual amount, one-twelfth of 
which, rounded to the next lowest dollar, constitutes the monthly rate 
payable on the first business day of the month after the month or other 
period for which it has accrued.
    (b)(1) Except as otherwise provided--
        (A) an annuity of an employee or Member commences on the first 
    day of the month after--
            (i) separation from the service; or
            (ii) pay ceases and the service and age requirements for 
        title to annuity are met; and

        (B) any other annuity payable from the Fund commences on the 
    first day of the month after the occurrence of the event on which 
    payment thereof is based.

    (2) The annuity of--
        (A) an employee involuntarily separated from service, except by 
    removal for cause on charges of misconduct or delinquency; and
        (B) an employee or Member retiring under section 8337 of this 
    title due to a disability;

shall commence on the day after separation from the service or the day 
after pay ceases and the service and age or disability requirements for 
title to annuity are met.
    (c) The annuity of a retired employee or Member terminates on the 
day death or other terminating event provided by this subchapter occurs. 
The annuity of a survivor terminates on the last day of the month before 
death or other terminating event occurs.
    (d) An individual entitled to annuity from the Fund may decline to 
accept all or any part of the annuity by a waiver signed and filed with 
the Office of Personnel Management. The waiver may be revoked in writing 
at any time. Payment of the annuity waived may not be made for the 
period during which the waiver was in effect.
    (e) Payment due a minor, or an individual mentally incompetent or 
under other legal disability, may be made to the person who is 
constituted guardian or other fiduciary by the law of the State of 
residence of the claimant or is otherwise legally vested with the care 
of the claimant or his estate. If a guardian or other fiduciary of the 
individual under legal disability has not been appointed under the law 
of the State of residence of the claimant, payment may be made to any 
person who, in the judgment of the Office, is responsible for the care 
of the claimant, and the payment bars recovery by any other person.
    [(f) Repealed. Pub. L. 99-251, title III, Sec. 305(a), Feb. 27, 
1986, 100 Stat. 26.]
    (g) The Office shall prescribe regulations to provide that the 
amount of any monthly annuity payable under this section accruing for 
any month and which is computed with regard to service that includes any 
service referred to in section 8332(b)(6) performed by an individual 
prior to January 1, 1969, shall be reduced by the portion of any 
benefits under any State retirement system to which such individual is 
entitled (or on proper application would be entitled) for such month 
which is attributable to such service performed by such individual 
before such date.
    (h) An individual entitled to an annuity from the Fund may make 
allotments or assignments of amounts from his annuity for such purposes 
as the Office of Personnel Management in its sole discretion considers 
appropriate.
    (i)(1) No payment shall be made from the Fund unless an application 
for benefits based on the service of an employee or Member is received 
in the Office of Personnel Management before the one hundred and 
fifteenth anniversary of his birth.
    (2) Notwithstanding paragraph (1) of this subsection, after the 
death of an employee, Member, or annuitant, no benefit based on his 
service shall be paid from the Fund unless an application therefor is 
received in the Office of Personnel Management within 30 years after the 
death or other event which gives rise to title to the benefit.
    (j)(1) Payments under this subchapter which would otherwise be made 
to an employee, Member, or annuitant based on service of that individual 
shall be paid (in whole or in part) by the Office to another person if 
and to the extent expressly provided for in the terms of--
        (A) any court decree of divorce, annulment, or legal separation, 
    or the terms of any court order or court-approved property 
    settlement agreement incident to any court decree of divorce, 
    annulment, or legal separation; or
        (B) any court order or other similar process in the nature of 
    garnishment for the enforcement of a judgment rendered against such 
    employee, Member, or annuitant, for physically, sexually, or 
    emotionally abusing a child.

In the event that the Office is served with more than 1 decree, order, 
or other legal process with respect to the same moneys due or payable to 
any individual, such moneys shall be available to satisfy such processes 
on a first-come, first-served basis, with any such process being 
satisfied out of such moneys as remain after the satisfaction of all 
such processes which have been previously served.
    (2) Paragraph (1) shall only apply to payments made by the Office 
under this subchapter after the date of receipt in the Office of written 
notice of such decree, order, other legal process, or agreement, and 
such additional information and documentation as the Office may 
prescribe.
    (3) For the purpose of this subsection--
        (A) the term ``court'' means any court of any State, the 
    District of Columbia, the Commonwealth of Puerto Rico, Guam, the 
    Northern Mariana Islands, or the Virgin Islands, and any Indian 
    court;
        (B) the term ``judgment rendered for physically, sexually, or 
    emotionally abusing a child'' means any legal claim perfected 
    through a final enforceable judgment, which claim is based in whole 
    or in part upon the physical, sexual, or emotional abuse of a child, 
    whether or not that abuse is accompanied by other actionable 
    wrongdoing, such as sexual exploitation or gross negligence; and
        (C) the term ``child'' means an individual under 18 years of 
    age.

    (k)(1) The Office shall, in accordance with this subsection, enter 
into an agreement with any State within 120 days of a request for 
agreement from the proper State official. The agreement shall provide 
that the Office shall withhold State income tax in the case of the 
monthly annuity of any annuitant who voluntarily requests, in writing, 
such withholding. The amounts withheld during any calendar quarter shall 
be held in the Fund and disbursed to the States during the month 
following that calendar quarter.
    (2) An annuitant may have in effect at any time only one request for 
withholding under this subsection, and an annuitant may not have more 
than two such requests in effect during any one calendar year.
    (3) Subject to paragraph (2) of this subsection, an annuitant may 
change the State designated by that annuitant for purposes of having 
withholdings made, and may request that the withholdings be remitted in 
accordance with such change. An annuitant also may revoke any request of 
that annuitant for withholding. Any change in the State designated or 
revocation is effective on the first day of the month after the month in 
which the request or the revocation is processed by the Office, but in 
no event later than on the first day of the second month beginning after 
the day on which such request or revocation is received by the Office.
    (4) This subsection does not give the consent of the United States 
to the application of a statute which imposes more burdensome 
requirements on the United States than on employers generally, or which 
subjects the United States or any annuitant to a penalty or liability 
because of this subsection. The Office may not accept pay from a State 
for services performed in withholding State income taxes from annuities. 
Any amount erroneously withheld from an annuity and paid to a State by 
the Office shall be repaid by the State in accordance with regulations 
issued by the Office.
    (5) For the purpose of this subsection, ``State'' means a State, the 
District of Columbia, or any territory or possession of the United 
States.
    (l) Transfers of contributions and deposits authorized by section 
408(a)(3) of the Foreign Service Act of 1980 shall be deemed to be a 
complete and final payment of benefits under this chapter.

(Pub. L. 89-544, Sept. 6, 1966, 80 Stat. 582; Pub. L. 93-273, Sec. 1, 
Apr. 26, 1974, 88 Stat. 93; Pub. L. 94-126, Sec. 1(c), Nov. 12, 1975, 89 
Stat. 679; Pub. L. 94-166, Sec. 1, Dec. 23, 1975, 89 Stat. 1002; Pub. L. 
94-183, Sec. 1, Dec. 31, 1975, 89 Stat. 1057; Pub. L. 95-366, Sec. 1(a), 
Sept. 15, 1978, 92 Stat. 600; Pub. L. 95-454, title IX, Sec. 906(a)(2), 
(3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 97-35, title XVII, 
Sec. 1705(a), Aug. 13, 1981, 95 Stat. 758; Pub. L. 97-253, title III, 
Secs. 304(b), 305(a), Sept. 8, 1982, 96 Stat. 795; Pub. L. 98-615, 
Sec. 2(6), Nov. 8, 1984, 98 Stat. 3202; Pub. L. 99-251, title III, 
Sec. 305(a), Feb. 27, 1986, 100 Stat. 26; Pub. L. 101-246, title I, 
Sec. 141(b), Feb. 16, 1990, 104 Stat. 35; Pub. L. 103-358, Sec. 2(a), 
Oct. 14, 1994, 108 Stat. 3420.)

                      Historical and Revision Notes
------------------------------------------------------------------------
                                                    Revised Statutes and
     Derivation                U.S. Code             Statutes at Large
------------------------------------------------------------------------
                     5 U.S.C. 2264.                July 31, 1956, ch.
                                                    804, Sec.  401
                                                    ``Sec. 14'', 70
                                                    Stat. 757.
                     ............................  Sept. 6, 1960, Pub.
                                                    L. 86-713, Sec.
                                                    1(b), 74 Stat. 814.
------------------------------------------------------------------------

    In subsection (b), the second sentence of former section 2264(b) is 
omitted as included in the second sentence of the revised subsection. 
The words ``after September 5, 1960'' are substituted for ``on or after 
September 6, 1960''.
    In subsection (c), the first sentence of former section 2264(c) is 
omitted as covered by the remainder of the subsection. The words ``on or 
after September 6, 1960'' are omitted as obsolete.
    Standard changes are made to conform with the definitions applicable 
and the style of this title as outlined in the preface to the report.

                       References in Text

    Section 408(a)(3) of the Foreign Service Act of 1980, referred to in 
subsec. (l), is classified to section 3968(a)(3) of Title 22, Foreign 
Relations and Intercourse.


                               Amendments

    1994--Subsec. (j)(1). Pub. L. 103-358, Sec. 2(a)(1), amended par. 
(1) generally. Prior to amendment, par. (1) read as follows: ``Payments 
under this subchapter which would otherwise be made to an employee, 
Member, or annuitant based upon his service shall be paid (in whole or 
in part) by the Office to another person if and to the extent expressly 
provided for in the terms of any court decree of divorce, annulment, or 
legal separation, or the terms of any court order or court-approved 
property settlement agreement incident to any court decree of divorce, 
annulment, or legal separation. Any payment under this paragraph to a 
person bars recovery by any other person.''
    Subsec. (j)(2). Pub. L. 103-358, Sec. 2(a)(2), inserted ``other 
legal process,'' after ``order,''.
    Subsec. (j)(3). Pub. L. 103-358, Sec. 2(a)(3), amended par. (3) 
generally. Prior to amendment, par. (3) read as follows: ``As used in 
this subsection, `court' means any court of any State, the District of 
Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana 
Islands, or the Virgin Islands, and any Indian court.''
    1990--Subsec. (l). Pub. L. 101-246 added subsec. (l).
    1986--Subsec. (f). Pub. L. 99-251 struck out subsec. (f) which 
provided minimum monthly rates of annuity payable under subsec. (a) with 
certain exceptions.
    1984--Subsec. (f)(4). Pub. L. 98-615, Sec. 2(6)(A), added par. (4).
    Subsec. (j)(3). Pub. L. 98-615, Sec. 2(6)(B), inserted reference to 
the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, the 
Virgin Islands, and any Indian court.
    1982--Subsec. (a). Pub. L. 97-253, Sec. 304(b), substituted 
``rounded to the next lowest'' for ``fixed at the nearest''.
    Subsec. (b). Pub. L. 97-253, Sec. 305(a), substituted provisions 
that an annuity of an employee or Member commences on the first day of 
the month after separation from service or pay ceases and the service 
and age requirements for title to annuity are met, that any other 
annuity payable from the Fund commences on the first day of the month 
after the occurrence of the event on which the payment thereof is based, 
and that the annuity of an employee involuntarily separated from service 
or of an employee or Member retiring due to a disability shall commence 
on the day after separation from the service or the day after pay ceases 
and the service and age or disability requirements for title to annuity 
are met for provisions that the annuity of an employee or Member would 
commence on the day after he was separated from the service, or on the 
day after his pay ceased and he met the service and the age or 
disability requirements for title to annuity and that an annuity payable 
from the Fund allowed after September 5, 1960, would commence on the day 
after the occurrence of the event on which payment thereof was based.
    1981--Subsec. (k). Pub. L. 97-35 added subsec. (k).
    1978--Subsecs. (d), (e). Pub. L. 95-454, Sec. 906(a)(2), (3), 
substituted ``Office of Personnel Management'' for ``Civil Service 
Commission'' and ``Office'' for ``Commission''.
    Subsec. (g). Pub. L. 95-454, Sec. 906(a)(3), substituted ``Office'' 
for ``Commission'' in the subsec. (g) added by Pub. L. 94-126.
    Pub. L. 95-366 redesignated as subsec. (h) the subsec. (g) added by 
Pub. L. 94-166.
    Subsec. (h). Pub. L. 95-454, Sec. 906(a)(2), substituted ``Office of 
Personnel Management'' for ``Civil Service Commission''.
    Pub. L. 95-366 redesignated former subsec. (g), added by Pub. L. 94-
166, as (h). Former subsec. (h) redesignated (i).
    Subsec. (i). Pub. L. 95-454, Sec. 906(a)(2), substituted ``Office of 
Personnel Management'' for ``Civil Service Commission'' wherever 
appearing.
    Pub. L. 95-366 redesignated former subsec. (h) as (i).
    Subsec. (j). Pub. L. 95-454, Sec. 906(a)(3), substituted ``Office'' 
for ``Commission'' wherever appearing.
    Pub. L. 95-366 added subsec. (j).
    1975--Subsec. (g). Pub. L. 94-166 added subsec. (g) authorizing 
allotment or assignment of amounts from annuities.
    Pub. L. 94-126 added subsec. (g) relating to the crediting of 
National Guard technician service in connection with civil service 
retirement.
    Subsec. (h). Pub. L. 94-183 added subsec. (h).
    1974--Subsec. (f). Pub. L. 93-273 added subsec. (f).


                    Effective Date of 1994 Amendment

    Section 3 of Pub. L. 103-358 provided that: ``The amendments made by 
this Act [amending this section and sections 8437 and 8467 of this 
title] shall take effect on the date of enactment of this Act [Oct. 14, 
1994], and shall apply with respect to any decree, order, or other legal 
process, or notice of agreement received by the Office of Personnel 
Management or the Executive Director of the Federal Retirement Thrift 
Investment Board on or after such date of enactment.''


                    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), 
(5)(D) of Pub. L. 98-615, as amended, set out as a note under section 
8341 of this title.


                    Effective Date of 1982 Amendment

    Amendment by section 304(b) of Pub. L. 97-253 applicable with 
respect to any annuity commencing on or after Oct. 1, 1982, and with 
respect to any adjustment or redetermination of any annuity made on or 
after such date, see section 304(c) of Pub. L. 97-253, set out as a note 
under section 8340 of this title.
    Section 305(b) of Pub. L. 97-253, as amended by Pub. L. 97-377, 
title I, Sec. 124, Dec. 21, 1982, 96 Stat. 1913, provided that: ``The 
amendment made by subsection (a) [amending this section] shall apply to 
annuities which commence on or after October 1, 1982, except for those 
individuals who serve three days or less in the month of retirement.''


                    Effective Date of 1981 Amendment

    Section 1705(b) of Pub. L. 97-35 provided that: ``The amendment made 
by subsection (a) [amending this section] shall take effect October 1, 
1981.''


                    Effective Date of 1978 Amendments

    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 2 of Pub. L. 95-366 provided that: ``The amendments made by 
the first section of this Act [amending this section and section 8346 of 
this title] shall only apply to payments made from the Civil Service 
Retirement and Disability Fund after the date of the enactment of this 
Act [Sept. 15, 1978].''


                    Effective Date of 1975 Amendment

    Amendment by Pub. L. 94-126 effective as of Jan. 1, 1969, applicable 
to a person who, on Nov. 12, 1975, is receiving or is entitled to 
receive benefits under any Federal retirement system and requests in 
writing the application of the amendment to him by the office 
administering his retirement system, and additional benefits to commence 
Dec. 1, 1975, see section 3 of Pub. L. 94-126, set out as a note under 
section 8334 of this title.


                    Effective Date of 1974 Amendment

    Section 3 of Pub. L. 93-273 provided that: ``This Act [amending this 
section and enacting provisions set out as notes under this section and 
sections 8339 and 8341 of this title] shall become effective on the date 
of enactment [Apr. 26, 1974]. Annuity increases under this Act shall 
apply to annuities which commence before, on, or after the date of 
enactment of this Act, but no increase in annuity shall be paid for any 
period prior to the first day of the first month which begins on or 
after the ninetieth day after the date of enactment of this Act, or the 
date on which the annuity commences, whichever is later.''


  Minimum Annuity Under Civil Service Retirement and Disability System

    Section 305(b)-(d) of Pub. L. 99-251 provided that:
    ``(b) Savings Provision.--An annuity payable from the Civil Service 
Retirement and Disability Fund as of the day before the date of 
enactment of this Act [Feb. 27, 1986] shall not be reduced--
        ``(1) by reason of the repeal of section 8345(f) of title 5, 
    United States Code; or
        ``(2) if or to the extent that the reduction is to be made for 
    the purpose of eliminating an overpayment resulting from the manner 
    in which such section 8345(f) has been administered by the Office of 
    Personnel Management.
    ``(c) Ratification of Erroneous Payments.--Any individual to whom an 
overpayment of an annuity has been made from the Civil Service 
Retirement and Disability Fund before the date of enactment of this Act 
[Feb. 27, 1986] shall be deemed to have been entitled to that 
overpayment if and to the extent that such overpayment resulted from the 
manner in which the Office of Personnel Management has administered 
section 8345(f) of title 5, United States Code.
    ``(d) Adjustments of Certain Reductions.--(1) Effective for any 
month after the date of enactment of this Act [Feb. 27, 1986], the 
amount of any annuity which--
        ``(A) is payable from the Civil Service Retirement and 
    Disability Fund; and
        ``(B) was reduced after June 30, 1985, and before the date of 
    enactment of this Act, to eliminate any overpayment resulting from 
    the manner in which the Office of Personnel Management administered 
    section 8345(f) of title 5, United States Code,
shall not be less than the amount which would have been payable as of 
such date of enactment if the reduction described in clause (B) had not 
been made.
    ``(2)(A) The Office shall make a lump-sum payment to each individual 
receiving an annuity to which paragraph (1) applies.
    ``(B) The lump-sum payment made to any individual under this 
paragraph shall be equal to the excess of--
        ``(i) the total amount of the annuity payments which would have 
    been made to the individual for the period beginning with the first 
    month in which the reduction described in paragraph (1)(B) was made 
    and ending on the last day of the month in which this Act is enacted 
    if the reduction had not been made, over
        ``(ii) the total amount of the annuity payments which have been 
    paid to such individual for that period.''


  Availability of the Civil Service Retirement and Disability Fund for 
         Expenses Incurred by the Office of Personnel Management

    Section 1705(c) of Pub. L. 97-35 provided that: ``The Civil Service 
Retirement and Disability Fund is available for expenses incurred by the 
Office of Personnel Management in the initial implementation of the 
amendments made by this section [amending this section].''


                     Monthly Rate of Minimum Annuity

    Section 2(c) of Pub. L. 93-273 provided that: ``The monthly rate of 
an annuity resulting from an increase under this section [enacting 
provisions set out as notes under sections 8339 and 8341 of this title] 
shall be considered as the monthly rate of annuity payable under section 
8345(a) of title 5, United States Code [subsec. (a) of this section], 
for purposes of computing the minimum annuity under section 8345(f) of 
title 5 [subsec. (f) of this section], as added by the first section of 
this Act.''

                  Section Referred to in Other Sections

    This section is referred to in sections 8342, 8343a, 8346, 8348, 
8349, 8901, 8905 of this title.
