50 USC 2082 - Prior service credit

U.S Code last checked for updates: Nov 22, 2024

§ 2082.

Prior service credit

(a)

In general

A participant may, subject to the provisions of this section, include in the participant’s period of service—

(1)

civilian service in the Government before becoming a participant that would be creditable toward retirement under subchapter III of chapter 83 of title 5 (as determined under section 8332(b) of such title); and

(2)

honorable active service in the Armed Forces before the date of the separation upon which eligibility for an annuity is based, or honorable active service in the Regular or Reserve Corps 

(b)

Limitations

(1)

In general

Except as provided in paragraphs (2) and (3), the total service of any participant shall exclude—

(A)

any period of civilian service on or after October 1, 1982, for which retirement deductions or deposits have not been made,

(B)

any period of service for which a refund of contributions has been made, or

(C)

any period of service for which contributions were not transferred pursuant to subsection (c)(1);

unless the participant makes a deposit to the fund in an amount equal to the percentages of basic pay received for such service as specified in the table contained in section 8334(c) of title 5, together with interest computed in accordance with section 8334(e) of such title. The deposit may be made in one or more installments (including by allotment from pay), as determined by the Director.

(2)

Effect of retirement deductions not made

(3)

Effect of refund of retirement contributions

A participant who received a refund of retirement contributions under this or any other retirement system for Government employees covering service for which the participant may be allowed credit under this subchapter may deposit the amount received, with interest computed under paragraph (1). Credit may not be allowed for the service covered by the refund until the deposit is made, except that a participant who—

(A)

separated from Government service before March 31, 1991, and received a refund of the participant’s retirement contributions covering a period of service ending before March 31, 1991;

(B)

is entitled to an annuity under this subchapter (other than a disability annuity) which commences after December 1, 1992; and

(C)

does not make the deposit required to receive credit for the service covered by the refund;

shall be entitled to an annuity actuarially reduced in accordance with section 8334(d)(2)(B) of title 5.

(4)

Entitlement under another system

(c)

Transfer from other Government retirement systems

(1)

In general

(2)

Consent of employee

(3)

Additional contributions; refunds

(d)

Transfer to other Government retirement systems

(1)

In general

(2)

Consent of employee

(e)

Prior military service credit

(1)

Application to obtain credit

(2)

Employment starting before, on, or after October 1, 1982

Except as provided in paragraph (3)—

(A)

the service of a participant who first became a Federal employee before October 1, 1982, shall include credit for each period of military service performed before the date of separation on which entitlement to an annuity under this subchapter is based, subject to subsection (f); and

(B)

the service of a participant who first becomes a Federal employee on or after October 1, 1982, shall include credit for—

(i)

each period of military service performed before January 1, 1957, and

(ii)

each period of military service performed after December 31, 1956, and before the separation on which entitlement to an annuity under this subchapter is based, only if a deposit (with interest, if any) is made with respect to that period, as provided in subsection (h).

(3)

Effect of receipt of military retired pay

In the case of a participant who is entitled to retired pay based on a period of military service, the participant’s service may not include credit for such period of military service unless the retired pay is paid—

(A)

on account of a service-connected disability—

(i)

incurred in combat with an enemy of the United States; or

(ii)

caused by an instrumentality of war and incurred in the line of duty during a period of war (as defined in section 1101 of title 38); or

(B)

under chapter 67 2

 See References in Text note below.

of title 10.

(4)

Survivor annuity

Notwithstanding paragraph (3), the survivor annuity of a survivor of a participant—

(A)

who was awarded retired pay based on any period of military service, and

(B)

whose death occurs before separation from the Agency,

shall be computed in accordance with section 8332(c)(3) of title 5.

(f)

Effect of entitlement to social security benefits

(1)

In general

(2)

Limitation

The provisions of paragraph (1) relating to credit for military service do not apply to—

(A)

any period of military service of a participant with respect to which the participant has made a deposit with interest, if any, under subsection (h); or

(B)

the military service of any participant described in subsection (e)(2)(B).

(3)

Effect of entitlement before September 8, 1982

(A)

The annuity recomputation required by paragraph (1) shall not apply to any participant who was entitled to an annuity under this subchapter on or before September 8, 1982, or who is entitled to a deferred annuity based on separation from the Agency occurring on or before such date. Instead of an annuity recomputation, the annuity of such participant shall be reduced at age 62 by an amount equal to a fraction of the participant’s old-age or survivors’ insurance benefits under section 402 of title 42. The reduction shall be determined by multiplying the participant’s monthly Social Security benefit by a fraction, the numerator of which is the participant’s total military wages and deemed additional wages (within the meaning of section 429 of title 42) that were subject to Social Security deductions and the denominator of which is the total of all the participant’s wages, including military wages, and all self-employment income that were subject to Social Security deductions before the calendar year in which the determination month occurs.

(B)

The reduction determined in accordance with subparagraph (A) shall not be greater than the reduction that would be required under paragraph (1) if such paragraph applied to the participant. The new formula shall be applicable to any annuity payment payable after October 1, 1982, including annuity payments to participants who had previously reached age 62 and whose annuities had already been recomputed.

(C)

For purposes of this paragraph, the term “determination month” means—

(i)

the first month for which the participant is entitled to old-age or survivors’ insurance benefits (or would be entitled to such benefits upon application therefor); or

(ii)

October 1982, in the case of any participant entitled to such benefits for that month.

(g)

Deposits paid by survivors

(h)

Deposits for periods of military service

(1)

(A)

Each participant who has performed military service before the date of separation on which entitlement to an annuity under this subchapter is based may pay to the Agency an amount equal to 7 percent of the amount of basic pay paid under section 204 of title 37 to the participant for each period of military service after December 1956; except, the amount to be paid for military service performed beginning on January 1, 1999, through December 31, 2000, shall be as follows:


	7.25 percent of basic pay	January 1, 1999, to December 31, 1999.
	7.4 percent of basic pay	January 1, 2000, to December 31, 2000.

(B)

The amount of such payments shall be based on such evidence of basic pay for military service as the participant may provide or, if the Director determines sufficient evidence has not been provided to adequately determine basic pay for military service, such payment shall be based upon estimates of such basic pay provided to the Director under paragraph (4).

(2)

Any deposit made under paragraph (1) more than two years after the later of—

(A)

October 1, 1983, or

(B)

the date on which the participant making the deposit first becomes an employee of the Federal Government,

shall include interest on such amount computed and compounded annually beginning on the date of 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) of title 5.

(3)

Any payment received by the Director under this subsection shall be deposited in the Treasury of the United States to the credit of the fund.

(4)

The provisions of section 2031(l) of this title shall apply with respect to such information as the Director determines to be necessary for the administration of this subsection in the same manner that such section applies concerning information described in that section.

(Pub. L. 88–643, title II, § 252, as added Pub. L. 102–496, title VIII, § 802, Oct. 24, 1992, 106 Stat. 3229; amended Pub. L. 105–33, title VII, § 7001(c)(3), Aug. 5, 1997, 111 Stat. 659; Pub. L. 106–346, § 101(a) [title V, § 505(c)(2)], Oct. 23, 2000, 114 Stat. 1356, 1356A–53; Pub. L. 116–92, div. E, title LXII, § 6202(a)(2)(A)(ii), (c), Dec. 20, 2019, 133 Stat. 2185, 2186.)

cite as: 50 USC 2082

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