
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: 5USC8421a]

 
             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. 8421a. Reductions on account of earnings from work 
        performed while entitled to an annuity supplement
        
    (a) The amount of the annuity supplement to which an individual is 
entitled under section 8421 for any month (determined without regard to 
subsection (c) of such section) shall be reduced by the amount of any 
excess earnings of such individual which are required to be charged to 
such supplement for such month, as determined under subsection (b).
    (b) The amount of an individual's excess earnings shall be charged 
to months as follows:
        (1)(A) There shall be charged to each month of a year under 
    subsection (a) an amount equal to the individual's excess earnings 
    (as determined under paragraph (2) with respect to such year), 
    divided by the number of the individual's supplement entitlement 
    months for such year (as determined under paragraph (3)).
        (B) Notwithstanding subparagraph (A), the amount charged to a 
    month under subsection (a) may not exceed the amount of the annuity 
    supplement to which the individual is entitled under section 8421 
    for such month (determined without regard to subsection (c) of such 
    section).
        (2) The excess earnings based on which reductions under 
    subsection (a) shall be made with respect to an individual in a 
    year--
            (A) shall be equal to 50 percent of so much of such 
        individual's earnings for the immediately preceding year as 
        exceeds the applicable exempt amount for such preceding year; 
        but
            (B) may not exceed the total amount of the annuity 
        supplement payments to which such individual was entitled for 
        such preceding year under section 8421 (determined without 
        regard to subsection (c) of such section, and without regard to 
        this section).

        (3)(A) Subject to subparagraph (B), the number of an 
    individual's supplement entitlement months for a year shall be 12.
        (B) The number determined under subparagraph (A) shall be 
    reduced so as not to include any month after which such individual 
    ceases to be entitled to an annuity supplement by reason of section 
    8421(a)(3)(B), relating to cessation of entitlement upon attaining 
    age 62.
        (4)(A) For purposes of this section, and except as provided in 
    subparagraph (B), the ``earnings'' and the ``applicable exempt 
    amount'' of an individual shall be determined in a manner consistent 
    with applicable provisions of section 203 of the Social Security 
    Act.
        (B) For purposes of this section--
            (i) in determining the excess earnings of any individual, 
        only earnings attributable to periods during which such 
        individual was entitled to an annuity supplement under section 
        8421 shall be considered; and
            (ii) any earnings attributable to a period before attaining 
        the applicable retirement age under section 8412(h) shall not be 
        considered in determining the excess earnings of an individual 
        who retires under section 8412(d) or (e), or section 8414(c).

        (5) Notwithstanding paragraphs (1) through (4), the reduction 
    required by subsection (a) shall be effective with respect to the 
    annuity supplement payable for each month in the 12-month period 
    beginning on the first day of the seventh month after the end of the 
    calendar year in which the excess earnings were earned.

    (c) The Office shall prescribe regulations under which this section 
shall be applied in the case of a reemployed annuitant.

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100 Stat. 
535; amended Pub. L. 99-556, title I, Sec. 121, Oct. 27, 1986, 100 Stat. 
3134; Pub. L. 106-394, Sec. 3(a), Oct. 30, 2000, 114 Stat. 1630.)

                       References in Text

    Section 203 of the Social Security Act, referred to in subsec. 
(b)(4)(A), is classified to section 403 of Title 42, The Public Health 
and Welfare.


                               Amendments

    2000--Subsec. (b)(5). Pub. L. 106-394 added par. (5).
    1986--Subsecs. (c), (d). Pub. L. 99-556 redesignated subsec. (d) as 
(c) and struck out former subsec. (c) which read as follows: ``If, after 
an individual ceases to be entitled to an annuity supplement under 
section 8421 by reason of subsection (a)(3)(B) of such section, any 
portion of the individual's excess earnings remains outstanding, an 
amount not to exceed 25 percent of the amount otherwise payable to such 
individual under this chapter for each month shall be deducted from such 
monthly payment until the full amount of that outstanding portion has 
been accounted for. To the extent practicable, reductions under this 
subsection shall be made by a level percentage.''


                    Effective Date of 2000 Amendment

    Pub. L. 106-394, Sec. 3(b), Oct. 30, 2000, 114 Stat. 1630, provided 
that: ``The amendment made by subsection (a) [amending this section] 
shall apply with respect to reductions required to be made in calendar 
years beginning after the date of the enactment of this Act [Oct. 30, 
2000].''

                  Section Referred to in Other Sections

    This section is referred to in title 22 section 4071d; title 50 
section 2154.
