(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)(A) The applicable percentage under this paragraph for civilian service by employees or Members other than revised annuity employees or further revised annuity employees shall be as follows:
Employee | 7 | January 1, 1987, to December 31, 1998. |
7.25 | January 1, 1999, to December 31, 1999. | |
7.4 | January 1, 2000, to December 31, 2000. | |
7 | After December 31, 2000. | |
Congressional employee | 7.5 | January 1, 1987, to December 31, 1998. |
7.75 | January 1, 1999, to December 31, 1999. | |
7.9 | January 1, 2000, to December 31, 2000. | |
7.5 | After December 31, 2000. | |
Member | 7.5 | January 1, 1987, to December 31, 1998. |
7.75 | January 1, 1999, to December 31, 1999. | |
7.9 | January 1, 2000, to December 31, 2000. | |
8 | January 1, 2001, to December 31, 2002. | |
7.5 | After December 31, 2002. | |
Law enforcement officer, firefighter, member of the Capitol Police, member of the Supreme Court Police, or air traffic controller | 7.5 7.75 7.9 7.5 |
January 1, 1987, to December 31, 1998. January 1, 1999, to December 31, 1999. January 1, 2000, to December 31, 2000. After December 31, 2000. |
Nuclear materials courier | 7 | January 1, 1987, to October 16, 1998. |
7.5 | October 17, 1998, to December 31, 1998. | |
7.75 | January 1, 1999, to December 31, 1999. | |
7.9 | January 1, 2000, to December 31, 2000. | |
7.5 | After December 31, 2000. | |
Customs and border protection officer | 7.5 | After June 29, 2008. |
(B) The applicable percentage under this paragraph for civilian service by revised annuity employees shall be as follows:
Employee | 9.3 | After December 31, 2012. |
Congressional employee | 9.3 | After December 31, 2012. |
Member | 9.3 | After December 31, 2012. |
Law enforcement officer, firefighter, member of the Capitol Police, member of the Supreme Court Police, or air traffic controller | 9.8 | After December 31, 2012. |
Nuclear materials courier | 9.8 | After December 31, 2012. |
Customs and border protection officer | 9.8 | After December 31, 2012. |
(C) The applicable percentage under this paragraph for civilian service by further revised annuity employees shall be as follows:
Employee | 10.6 | After December 31, 2013. |
Congressional employee | 10.6 | After December 31, 2013. |
Member | 10.6 | After December 31, 2013. |
Law enforcement officer, firefighter, member of the Capitol Police, member of the Supreme Court Police, or air traffic controller | 11.1 | After December 31, 2013. |
Nuclear materials courier | 11.1 | After December 31, 2013. |
Customs and border protection officer | 11.1 | After December 31, 2013. |
(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. Deposits made by an employee, Member, or survivor also shall be credited to the Fund.
(d)(1) Under such regulations as the Office may prescribe, amounts deducted under subsection (a) shall be entered on individual retirement records.
(2) Deposit may not be required for days of unused sick leave credited under paragraph (1) or (2) of section 8415(m).
(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.
(7)(A) In calculating and processing the deposit under paragraph (1) with respect to an employee, Member, or annuitant, if the employing agency of such employee, Member, or annuitant makes an administrative error, such employing agency may pay, on behalf of the employee, Member, or annuitant, any additional interest assessed due to the administrative error.
(B) For purposes of subparagraph (A), the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives, as appropriate, shall be considered the employing agency of a Member or Congressional employee.
(C) The Director of the Office of Personnel Management shall issue such regulations as are necessary to carry out this paragraph.
(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,1 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,1 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.
(5)(A) In calculating and processing the deposit under paragraph (1) with respect to an employee, Member, or annuitant, if an employing agency of such employee, Member, or annuitant makes an administrative error that causes additional interest assessed to accrue on the deposit, the employee, Member, or annuitant's employing agency may pay, on behalf of the employee, Member, or annuitant, any additional interest assessed due to the administrative error.
(B) In calculating and processing the deposit under paragraph (1) with respect to an employee, Member, or annuitant, if the Office of Personnel Management makes an administrative error that causes additional interest assessed to accrue on the deposit, the Office of Personnel Management may pay, on behalf of the employee, Member, or annuitant, any additional interest assessed due to the administrative error.
(C) For purposes of subparagraph (A), the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives, as appropriate, shall be considered the employing agency of a Member or congressional employee.
(D) The Director of the Office of Personnel Management shall issue such regulations as are necessary to carry out this paragraph.
(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).
(h) No deposit may be made with respect to service credited under section 8411(b)(6).
(i)(1) Each employee or Member who has received a refund of retirement deductions under this or any other retirement system established for employees of the Government covering service for which such employee or Member may be allowed credit under this chapter may deposit the amount received, with interest. Credit may not be allowed for the service covered by the refund until the deposit is made.
(2) Interest under this subsection shall be computed in accordance with paragraphs (2) and (3) of section 8334(e) and regulations prescribed by the Office. The option under the third sentence of section 8334(e)(2) to make a deposit in one or more installments shall apply to deposits under this subsection.
(3) For the purpose of survivor annuities, deposits authorized by this subsection may also be made by a survivor of an employee or Member.
(Added
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
The Domestic Volunteer Service Act of 1973, referred to in subsec. (f)(1), is
The Peace Corps Act, referred to in subsec. (f)(1), is
2018-Subsec. (e)(7).
Subsec. (f)(5).
2013-Subsec. (a)(3)(A).
Subsec. (a)(3)(C).
2012-Subsec. (a)(3).
Subsec. (d)(2).
2009-
Subsec. (c).
Subsec. (d)(2).
Subsec. (i).
2007-Subsec. (a)(3).
2003-Subsec. (d)(2).
2002-Subsec. (d).
2001-
Subsec. (h).
2000-Subsec. (a)(3).
Subsec. (e)(6).
Subsec. (f)(4).
1999-Subsec. (a)(3).
1998-Subsec. (a)(3).
1997-Subsec. (a)(2), (3).
"(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) 7½ percent, minus
"(ii) the same percentage as would apply in the case of an employee under subparagraph (A)(ii)."
Subsec. (e)(1)(A).
Subsec. (e)(6).
Subsec. (f)(1).
Subsec. (f)(4).
Subsec. (g).
1996-Subsec. (c).
Subsec. (e)(1)(A), (3).
1994-Subsec. (a)(2)(A)(ii).
Subsec. (e)(1).
Subsec. (e)(2)(B).
1993-Subsec. (f).
1988-Subsec. (e)(5).
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Amendment by
Payments from the Office of Personnel Management authorized by section 3(b) of
1 See References in Text note below.