
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-107 Section 1132/b/2/A,B]
[Document affected by Public Law 107-107 Section 1132/b/2/A,B]
[Document affected by Public Law 107-135 Section 122(b)]
[CITE: 5USC8422]

 
             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. 8422. Deductions from pay; contributions for military 
        service
        
    (a)(1) The employing agency shall deduct and withhold from basic pay 
of each employee and Member a percentage of basic pay determined in 
accordance with paragraph (2).
    (2) The percentage to be deducted and withheld from basic pay for 
any pay period shall be equal to--
        (A) the applicable percentage under paragraph (3), minus
        (B) the percentage then in effect under section 3101(a) of the 
    Internal Revenue Code of 1986 (relating to rate of tax for old-age, 
    survivors, and disability insurance).

    (3) The applicable percentage under this paragraph for civilian 
service shall be as follows:




Employee................................  7......................  January 1, 1
987, to December 31, 1998.
                                          7.25...................  January 1, 1
999, to December 31, 1999.
                                          7.4....................  January 1, 2
000, to December 31, 2000.
                                          7......................  After Decemb
er 31, 2000.
Congressional employee..................  7.5....................  January 1, 1
987, to December 31, 1998.
                                          7.75...................  January 1, 1
999, to December 31, 1999.
                                          7.9....................  January 1, 2
000, to December 31, 2000.
                                          7.5....................  After Decemb
er 31, 2000.
Member..................................  7.5....................  January 1, 1
987, to December 31, 1998.
                                          7.75...................  January 1, 1
999, to December 31, 1999.
                                          7.9....................  January 1, 2
000, to December 31, 2000.
                                          8......................  January 1, 2
001, to December 31, 2002.
                                          7.5....................  After Decemb
er 31, 2002.
Law enforcement officer, firefighter,     7.5....................  January 1, 1
987, to December 31, 1998.
 member of the Capitol Police, member of                           January 1, 1
999, to December 31, 1999.
 the Supreme Court Police, or air         7.75...................  January 1, 2
000, to December 31, 2000.
 traffic controller.                                               After Decemb
er 31, 2000.
                                          7.9....................

                                          7.5....................
Nuclear materials courier...............  7......................  January 1, 1
987, to October 16, 1998.
                                          7.5....................  October 17, 
1998, to December 31, 1998.
                                          7.75...................  January 1, 1
999, to December 31, 1999.
                                          7.9....................  January 1, 2
000, to December 31, 2000.
                                          7.5....................  After Decemb
er 31, 2000.


    (b) Each employee or Member is deemed to consent and agree to the 
deductions under subsection (a). Notwithstanding any law or regulation 
affecting the pay of an employee or Member, payment less such deductions 
is a full and complete discharge and acquittance of all claims and 
demands for regular services during the period covered by the payment, 
except the right to any benefits under this subchapter, or under 
subchapter IV or V of this chapter, based on the service of the employee 
or Member.
    (c) The amounts deducted and withheld under this section shall be 
deposited in the Treasury of the United States to the credit of the Fund 
under such procedures as the Secretary of the Treasury may prescribe.
    (d) Under such regulations as the Office may prescribe, amounts 
deducted under subsection (a) shall be entered on individual retirement 
records.
    (e)(1)(A) Except as provided in subparagraph (B), and subject to 
paragraph (6), each employee or Member who has performed military 
service before the date of the separation on which the entitlement to 
any annuity under this subchapter, or subchapter V of this chapter, is 
based may pay, in accordance with such regulations as the Office shall 
issue, to the agency by which the employee is employed, or, in the case 
of a Member or a Congressional employee, to the Secretary of the Senate 
or the Chief Administrative Officer of the House of Representatives, as 
appropriate, an amount equal to 3 percent of the amount of the basic pay 
paid under section 204 of title 37 to the employee or Member for each 
period of military service after December 1956. The amount of such 
payments shall be based on such evidence of basic pay for military 
service as the employee or Member may provide, or if the Office 
determines sufficient evidence has not been so provided to adequately 
determine basic pay for military service, such payment shall be based on 
estimates of such basic pay provided to the Office under paragraph (4).
    (B) In any case where military service interrupts creditable 
civilian service under this subchapter and reemployment pursuant to 
chapter 43 of title 38 occurs on or after August 1, 1990, the deposit 
payable under this paragraph may not exceed the amount that would have 
been deducted and withheld under subsection (a)(1) from basic pay during 
civilian service if the employee had not performed the period of 
military service.
    (2) Any deposit made under paragraph (1) more than two years after 
the later of--
        (A) January 1, 1987; or
        (B) the date on which the employee or Member making the deposit 
    first becomes an employee or Member following the period of military 
    service for which such deposit is due,

shall include interest on such amount computed and compounded annually 
beginning on the date of the expiration of the two-year period. The 
interest rate that is applicable in computing interest in any year under 
this paragraph shall be equal to the interest rate that is applicable 
for such year under section 8334(e).
    (3) Any payment received by an agency, the Secretary of the Senate, 
or the Chief Administrative Officer of the House of Representatives 
under this subsection shall be immediately remitted to the Office for 
deposit in the Treasury of the United States to the credit of the Fund.
    (4) The Secretary of Defense, the Secretary of Transportation, the 
Secretary of Commerce, or the Secretary of Health and Human Services, as 
appropriate, shall furnish such information to the Office as the Office 
may determine to be necessary for the administration of this subsection.
    (5) For the purpose of survivor annuities, deposits authorized by 
this subsection may also be made by a survivor of an employee or Member.
    (6) The percentage of basic pay under section 204 of title 37 
payable under paragraph (1), with respect to any period of military 
service performed during--
        (A) January 1, 1999, through December 31, 1999, shall be 3.25 
    percent; and
        (B) January 1, 2000, through December 31, 2000, shall be 3.4 
    percent.

    (f)(1) Each employee or Member who has performed service as a 
volunteer or volunteer leader under part A of title VIII of the Economic 
Opportunity Act of 1964, as a full-time volunteer enrolled in a program 
of at least 1 year's duration under part A, B, or C of title I of the 
Domestic Volunteer Service Act of 1973, or as a volunteer or volunteer 
leader under the Peace Corps Act before the date of the separation on 
which the entitlement to any annuity under this subchapter, or 
subchapter V of this chapter, is based may pay, in accordance with such 
regulations as the Office of Personnel Management shall issue, an amount 
equal to 3 percent of the readjustment allowance paid to the employee or 
Member under title VIII of the Economic Opportunity Service Act of 1964 
or section 5(c) or 6(1) of the Peace Corps Act or the stipend paid to 
the employee or Member under part A, B, or C of title I of the Domestic 
Volunteer Service Act of 1973, for each period of service as such a 
volunteer or volunteer leader. This paragraph shall be subject to 
paragraph (4).
    (2) Any deposit made under paragraph (1) more than 2 years after the 
later of--
        (A) October 1, 1993, or
        (B) the date on which the employee or Member making the deposit 
    first becomes an employee or Member,

shall include interest on such amount computed and compounded annually 
beginning on the date of the expiration of the 2-year period. The 
interest rate that is applicable in computing interest in any year under 
this paragraph shall be equal to the interest rate that is applicable 
for such year under section 8334(e).
    (3) The Director of the Peace Corps and the Chief Executive Officer 
of the Corporation for National and Community Service shall furnish such 
information to the Office of Personnel Management as the Office may 
determine to be necessary for the administration of this subsection.
    (4) The percentage of the readjustment allowance or stipend (as the 
case may be) payable under paragraph (1), with respect to any period of 
volunteer service performed during--
        (A) January 1, 1999, through December 31, 1999, shall be 3.25 
    percent; and
        (B) January 1, 2000, through December 31, 2000, shall be 3.4 
    percent.

    (g) A Member who has served in a position in the executive branch 
for which the rate of basic pay was reduced for the duration of the 
service of the Member to remove the impediment to the appointment of the 
Member imposed by article I, section 6, clause 2 of the Constitution, or 
the survivor of such a Member, may deposit to the credit of the Fund an 
amount equal to the difference between the amount deducted from the 
basic pay of the Member during that period of service and the amount 
that would have been deducted if the rate of basic pay which would 
otherwise have been in effect during that period had been in effect, 
plus interest computed under section 8334(e).

(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 100 Stat. 
536; amended Pub. L. 100-238, title I, Sec. 104(a), Jan. 8, 1988, 101 
Stat. 1746; Pub. L. 103-82, title III, Sec. 371(b)(2), Sept. 21, 1993, 
107 Stat. 911; Pub. L. 103-353, Sec. 5(d), (e)(2), Oct. 13, 1994, 108 
Stat. 3174; Pub. L. 104-186, title II, Sec. 215(14), Aug. 20, 1996, 110 
Stat. 1746; Pub. L. 104-316, title I, Sec. 103(g), Oct. 19, 1996, 110 
Stat. 3829; Pub. L. 105-33, title VII, Sec. 7001(b)(1), Aug. 5, 1997, 
111 Stat. 657; Pub. L. 105-61, title V, Sec. 516(a)(8), Oct. 10, 1997, 
111 Stat. 1307; Pub. L. 105-261, div. C, title XXXI, Sec. 3154(i)(1), 
Oct. 17, 1998, 112 Stat. 2255; Pub. L. 106-65, div. A, title X, 
Sec. 1066(d)(3), Oct. 5, 1999, 113 Stat. 773; Pub. L. 106-346, 
Sec. 101(a) [title V, Sec. 505(b)], Oct. 23, 2000, 114 Stat. 1356, 
1356A-52; Pub. L. 106-553, Sec. 1(a)(2) [title III, Sec. 308(c)(3)], 
Dec. 21, 2000, 114 Stat. 2762, 2762A-87.)

                       References in Text

    Section 3101(a) of the Internal Revenue Code of 1986, referred to in 
subsec. (a)(2)(B), is classified to section 3101(a) of Title 26, 
Internal Revenue Code.
    The Economic Opportunity Act of 1964, referred to in subsec. (f)(1), 
is Pub. L. 88-452, Aug. 20, 1964, 78 Stat. 508, as amended. Title VIII 
of the Act probably means title VIII of Pub. L. 88-452 as added by Pub. 
L. 89-794, title VIII, Sec. 801, Nov. 8, 1966, 80 Stat. 1472, and 
generally revised and amended by Pub. L. 90-222, title I, Sec. 110, Dec. 
23, 1967, 81 Stat. 722, which was classified generally to subchapter 
VIII (Sec. 2991 et seq.) of chapter 34 of Title 42, The Public Health 
and Welfare, prior to its repeal by Pub. L. 93-113, title VI, Sec. 603, 
Oct. 1, 1973, 87 Stat. 417. Part A of title VIII of the Act is part A of 
title VIII of Pub. L. 88-452 as added by Pub. L. 90-222, Sec. 110, which 
was classified generally to part A (Sec. 2992 et seq.) of subchapter 
VIII of chapter 34 of Title 42, prior to its repeal by Pub. L. 93-113, 
Sec. 603. See sections 4951 et seq. and 5055 of Title 42. For complete 
classification of this Act to the Code, see Tables.
    Parts A, B, and C of title I of the Domestic Volunteer Service Act 
of 1973, referred to in subsec. (f)(1), are classified to part A 
(Sec. 4951 et seq.), part B (Sec. 4971 et seq.), and part C (Sec. 4991 
et seq.), respectively, of subchapter I of chapter 66 of Title 42.
    The Peace Corps Act, referred to in subsec. (f)(1), is Pub. L. 87-
293, Sept. 22, 1961, 75 Stat. 612, as amended, which is classified 
principally to chapter 34 (Sec. 2501 et seq.) of Title 22, Foreign 
Relations and Intercourse. Sections 5(c) and 6(1) of the Act are 
classified to sections 2504(c) and 2505(1), respectively, of Title 22. 
For complete classification of this Act to the Code, see Short Title 
note set out under section 2501 of Title 22 and Tables.


                               Amendments

    2000--Subsec. (a)(3). Pub. L. 106-553 inserted ``member of the 
Supreme Court Police,'' after ``member of the Capitol Police,'' in table 
for law enforcement officer, firefighter, member of the Capitol Police, 
or air traffic controller.
    Pub. L. 106-346, Sec. 101(a) [title V, Sec. 505(b)(1)], added par. 
(3) and struck out former par. (3), which set out tables of applicable 
percentages for employee, Congressional employee, Member, law 
enforcement officer, firefighter, member of the Capitol Police, air 
traffic controller, and nuclear materials courier.
    Subsec. (e)(6). Pub. L. 106-346, Sec. 101(a) [title V, 
Sec. 505(b)(2)], inserted ``and'' at end of subpar. (A), substituted a 
period for ``; and'' at end of subpar. (B), and struck out subpar. (C) 
which read as follows: ``January 1, 2001, through December 31, 2002, 
shall be 3.5 percent.''
    Subsec. (f)(4). Pub. L. 106-346, Sec. 101(a) [title V, 
Sec. 505(b)(3)], inserted ``and'' at end of subpar. (A), substituted a 
period for ``; and'' at end of subpar. (B), and struck out subpar. (C) 
which read as follows: ``January 1, 2001, through December 31, 2002, 
shall be 3.5 percent.''
    1999--Subsec. (a)(3). Pub. L. 106-65, in table for nuclear materials 
courier, substituted ``October 16, 1998'' for ``the day before the date 
of the enactment of the Strom Thurmond National Defense Authorization 
Act for Fiscal Year 1999'' and ``October 17, 1998'' for ``The date of 
the enactment of the Strom Thurmond National Defense Authorization Act 
for Fiscal Year 1999''.
    1998--Subsec. (a)(3). Pub. L. 105-261 inserted table for nuclear 
materials courier.
    1997--Subsec. (a)(2), (3). Pub. L. 105-33, Sec. 7001(b)(1)(A), added 
pars. (2) and (3) and struck out former par. (2) which read as follows: 
``The applicable percentage under this subsection for any pay period 
shall be--
        ``(A) in the case of an employee (other than a law enforcement 
    officer, firefighter, air traffic controller, or Congressional 
    employee) a percentage equal to--
            ``(i) 7 percent, minus
            ``(ii) the percentage then in effect under section 3101(a) 
        of the Internal Revenue Code of 1986 (relating to rate of tax 
        for old-age, survivors, and disability insurance); and
        ``(B) in the case of a Member, law enforcement officer, 
    firefighter, air traffic controller, or Congressional employee, a 
    percentage equal to--
            ``(i) 7\1/2\ percent, minus
            ``(ii) the same percentage as would apply in the case of an 
        employee under subparagraph (A)(ii).''
    Subsec. (e)(1)(A). Pub. L. 105-33, Sec. 7001(b)(1)(B)(i), inserted 
``and subject to paragraph (6),'' after ``Except as provided in 
subparagraph (B),''.
    Subsec. (e)(6). Pub. L. 105-33, Sec. 7001(b)(1)(B)(ii), added par. 
(6).
    Subsec. (f)(1). Pub. L. 105-33, Sec. 7001(b)(1)(C)(i), inserted at 
end ``This paragraph shall be subject to paragraph (4).''
    Subsec. (f)(4). Pub. L. 105-33, Sec. 7001(b)(1)(C)(ii), added par. 
(4).
    Subsec. (g). Pub. L. 105-61 added subsec. (g).
    1996--Subsec. (c). Pub. L. 104-316 substituted ``Secretary of the 
Treasury'' for ``Comptroller General of the United States''.
    Subsec. (e)(1)(A), (3). Pub. L. 104-186 substituted ``Chief 
Administrative Officer'' for ``Clerk''.
    1994--Subsec. (a)(2)(A)(ii). Pub. L. 103-353, Sec. 5(e)(2), 
substituted ``Internal Revenue Code of 1986'' for ``Internal Revenue 
Code of 1954''.
    Subsec. (e)(1). Pub. L. 103-353, Sec. 5(d)(1), designated existing 
provisions as subpar. (A) and substituted ``Except as provided in 
subparagraph (B), each employee'' for ``Each employee'' and added 
subpar. (B).
    Subsec. (e)(2)(B). Pub. L. 103-353, Sec. 5(d)(2), inserted before 
comma at end ``following the period of military service for which such 
deposit is due''.
    1993--Subsec. (f). Pub. L. 103-82 added subsec. (f).
    1988--Subsec. (e)(5). Pub. L. 100-238 added par. (5).


                    Effective Date of 2000 Amendments

    Amendment by Pub. L. 106-553 effective on the first day of the first 
applicable pay period that begins on Dec. 21, 2000, and applicable only 
to an individual who is employed as a member of the Supreme Court Police 
after Dec. 21, 2000, see section 1(a)(2) [title III, Sec. 308(i), (j)] 
of Pub. L. 106-553, set out in a Supreme Court Police Retirement note 
under section 8331 of this title.
    Amendment by Pub. L. 106-346 effective upon the close of calendar 
year 2000 and applicable thereafter, see section 101(a) [title V, 
Sec. 505(i)] of Pub. L. 106-346, set out as a note under section 8334 of 
this title.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-261 effective at the beginning of the first 
pay period that begins after Oct. 17, 1998, and applicable only to an 
individual who is employed as a nuclear materials courier, as defined by 
section 8331(27) or 8401(33) of this title, after Oct. 17, 1998, see 
section 3154(m), (n) of Pub. L. 105-261, set out as a note under section 
8331 of this title.


                    Effective Date of 1997 Amendments

    Amendment by Pub. L. 105-61 applicable to any annuity commencing 
before, on, or after Oct. 10, 1997, and effective with regard to any 
payment made after the first month following Oct. 10, 1997, see section 
516(b) of Pub. L. 105-61, set out as a note under section 8334 of this 
title.
    Amendment by Pub. L. 105-33 effective Oct. 1, 1997, see section 
7001(f) of Pub. L. 105-33, set out as a note under section 8334 of this 
title.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-353 effective with respect to reemployments 
initiated on or after the first day after the 60-day period beginning 
Oct. 13, 1994, with transition rules, see section 8 of Pub. L. 103-353, 
set out as an Effective Date note under section 4301 of Title 38, 
Veterans' Benefits.


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-82 effective Oct. 1, 1993, and applicable 
with respect to any individual entitled to an annuity on the basis of a 
separation from service occurring before, on, or after Oct. 1, 1993, 
subject to rule relating to annuities based on earlier separations, see 
sections 371(c) and 392 of Pub. L. 103-82, set out as notes under 
section 8332 of this title and section 4951 of Title 42, The Public 
Health and Welfare, respectively.


                  No Reduction in Agency Contributions

    Pub. L. 105-261, div. C, title XXXI, Sec. 3154(i)(2), Oct. 17, 1998, 
112 Stat. 2256, provided that: ``Contributions under subsections (a) and 
(b) of section 8423 of title 5, United States Code, shall not be reduced 
as a result of that portion of the amendment made by paragraph (1) 
[amending this section] requiring employee deductions at a rate in 
excess of 7.5 percent for the period beginning on January 1, 1999, and 
ending on December 31, 2002.''
    Section 7001(b)(2) of Pub. L. 105-33 provided that: ``Contributions 
under section 8423(a) and (b) of title 5, United States Code, shall not 
be reduced as a result of the amendments made under paragraph (1) 
[amending this section] of this subsection.''

                  Section Referred to in Other Sections

    This section is referred to in sections 8401, 8411, 8415, 8423, 8468 
of this title; title 2 sections 121b, 162b; title 10 section 942; title 
22 section 4045; title 28 sections 611, 627; title 40 section 214d; 
title 42 section 2297h-8; title 50 section 2152.
