
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC8420]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
            CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM
 
                      SUBCHAPTER II--BASIC ANNUITY
 
Sec. 8420. Insurable interest reductions

    (a)(1) At the time of retiring under section 8412, 8413, or 8414, an 
employee or Member who is found to be in good health by the Office may 
elect to have such employee's or Member's annuity (as computed under 
section 8415) reduced under paragraph (2) in order to provide an annuity 
under section 8444 for an individual having an insurable interest in the 
employee or Member. 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 
individual named is younger than the retiring employee or Member, except 
that the total reduction 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, Sec. 101(a), June 6, 1986, 100 Stat. 
532.)

                  Section Referred to in Other Sections

    This section is referred to in sections 8416, 8418, 8444 of this 
title.
