
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: 5USC8421]

 
             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. 8421. Annuity supplement

    (a)(1) Subject to paragraph (3), an individual shall, if and while 
entitled to an annuity under subsection (a), (b), (d), or (e) of section 
8412, or under section 8414(c), also be entitled to an annuity 
supplement under this section.
    (2) Subject to paragraph (3), an individual shall, if and while 
entitled to an annuity under section 8412(f), or under subsection (a) or 
(b) of section 8414, also be entitled to an annuity supplement under 
this section if such individual is at least the applicable minimum 
retirement age under section 8412(h), except that an individual entitled 
to an annuity under section 8414(a) for failure to be recertified as a 
senior executive shall be entitled to an annuity supplement without 
regard to such applicable minimum retirement age.
    (3)(A) An individual whose entitlement to an annuity under section 
8412 or 8414 does not commence before age 62 is not entitled to an 
annuity supplement under this section.
    (B) An individual entitled to an annuity supplement under this 
section ceases to be so entitled after the last day of the month 
preceding the first month for which such individual would, on proper 
application, be entitled to old-age insurance benefits under title II of 
the Social Security Act, but not later than the last day of the month in 
which such individual attains age 62.
    (b)(1) The amount of the annuity supplement of an annuitant under 
this section for any month shall be equal to the product of--
        (A) an amount determined under paragraph (2), multiplied by
        (B) a fraction, as described in paragraph (3).

    (2) The amount under this paragraph for an annuitant is an amount 
equal to the old-age insurance benefit which would be payable to such 
annuitant under title II of the Social Security Act (without regard to 
sections 203, 215(a)(7), and 215(d)(5) of such Act) upon attaining age 
62 and filing application therefor, determined as if the annuitant had 
attained such age and filed application therefor, and were a fully 
insured individual (as defined in section 214(a) of such Act), on 
January 1 of the year in which such annuitant's entitlement to any 
payment under this section commences, except that the reduction of such 
old-age insurance benefit under section 202(q) of such Act shall be the 
maximum applicable for an individual born in the same year as the 
annuitant. In computing the primary insurance amount under section 215 
of such Act for purposes of this paragraph, the number of elapsed years 
(referred to in section 215(b)(2)(B)(iii) of such Act and used to 
compute the number of benefit computation years) shall not include years 
beginning with the year in which such annuitant's entitlement to any 
payment under this section commences, and--
        (A) only basic pay for service performed (if any) shall be taken 
    into account in computing the total wages and self-employment income 
    of the annuitant for a benefit computation year;
        (B) for a benefit computation year which commences after the 
    date of the separation with respect to which entitlement to the 
    annuitant's annuity under this subchapter is based and before the 
    date as of which such annuitant is treated, under the preceding 
    sentence, to have attained age 62, the total wages and self-
    employment income of such annuitant for such year shall be deemed to 
    be zero; and
        (C) for a benefit computation year after age 21 which precedes 
    the separation referred to in subparagraph (B), and during which the 
    individual did not perform a full year of service, the total wages 
    and self-employment income of such annuitant for such year shall be 
    deemed to have been an amount equal to the product of--
            (i) the average total wages of all workers for that year, 
        multiplied by
            (ii) a fraction--
                (I) the numerator of which is the total basic pay of the 
            individual for service performed in the first year 
            thereafter in which such individual performed a full year of 
            service; and
                (II) the denominator of which is the average total wages 
            of all workers for the year referred to in subclause (I).

    (3) The fraction under this paragraph for any annuitant is a 
fraction--
        (A) the numerator of which is the annuitant's total years of 
    service (rounding a fraction to the nearest whole number, with \1/2\ 
    being rounded to the next higher number), not to exceed the number 
    under subparagraph (B); and
        (B) the denominator of which is 40.

    (4) For the purpose of this subsection--
        (A) the term ``benefit computation year'' has the meaning 
    provided in section 215(b)(2)(B)(i) of the Social Security Act;
        (B) the term ``average total wages of all workers'', for a year, 
    means the average of the total wages, as defined and computed under 
    section 215(b)(3)(A)(ii)(I) of the Social Security Act for such 
    year; and
        (C) the term ``service'' does not include military service.

    (c) An amount under this section shall, for purposes of section 
8467, be treated in the same way as an amount computed under section 
8415.

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100 Stat. 
533; amended Pub. L. 101-194, title V, Sec. 506(b)(10), Nov. 30, 1989, 
103 Stat. 1759; Pub. L. 102-378, Sec. 2(65), Oct. 2, 1992, 106 Stat. 
1354.)

                       References in Text

    The Social Security Act, referred to in subsecs. (a)(3)(B) and 
(b)(2), (4)(A), (B), 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. Sections 202, 203, 214, and 215 of the Social 
Security Act are classified to sections 402, 403, 414, and 415, 
respectively, of Title 42. For complete classification of this Act to 
the Code, see section 1305 of Title 42 and Tables.


                               Amendments

    1992--Subsec. (a)(2). Pub. L. 102-378 inserted period at end.
    1989--Subsec. (a)(2). Pub. L. 101-194 substituted ``, except that an 
individual entitled to an annuity under section 8414(a) for failure to 
be recertified as a senior executive shall be entitled to an annuity 
supplement without regard to such applicable minimum retirement age'' 
for period at end.


                    Effective Date of 1989 Amendment

    Amendment by Pub. L. 101-194 effective Jan. 1, 1991, see section 
506(d) of Pub. L. 101-194, set out as a note under section 3151 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 8349, 8420a, 8421a, 8442 of 
this title; title 22 section 4071d; title 50 section 2154.
