- § 4071. Establishment; application of Federal Employees’ Retirement System to Foreign Service Pension System participants
- § 4071a. Definitions
- § 4071b. Participants
- § 4071c. Creditable service
- § 4071d. Entitlement to annuity
- § 4071e. Deductions and withholdings from pay
- § 4071f. Government contributions
- § 4071g. Cost-of-living adjustments
- § 4071h. General and administrative provisions
- § 4071i. Transition provisions
- § 4071j. Former spouses
- § 4071k. Spousal agreements
§ 4071. Establishment; application of Federal Employees’ Retirement System to Foreign Service Pension System participants
(a) There is hereby established a Foreign Service Pension System.
(b) Except as otherwise specifically provided in this part or any other provision of law, the provisions of chapter 84 of title 5 shall apply to all participants in the Foreign Service Pension System and such participants shall be treated in all respects similar to persons whose participation in the Federal Employees’ Retirement System provided in that chapter is required.
(Pub. L. 96–465, title I, § 851, as added Pub. L. 99–335, title IV, § 415, June 6, 1986, 100 Stat. 615.)
§ 4071a. DefinitionsAs used in this part, unless otherwise specified—
(1) the term “court order” has the same meaning given in section 4044(4) of this title;
(2) the term “Fund” means the Foreign Service Retirement and Disability Fund maintained by the Secretary of the Treasury pursuant to section 4042 of this title;
(3) the term “lump-sum credit” means the unrefunded amount consisting of—
(A) retirement deductions made from the basic pay of a participant under section 4071e of this title (or under section 204 of the Federal Employees’ Retirement Contribution Temporary Adjustment Act of 1983);
(B) amounts deposited by a participant under section 4071c of this title to obtain credit under this System for prior civilian or military service; and
(C) interest on the deductions and deposits which, for any calendar year, shall be equal to the overall average yield to the Fund during the preceding fiscal year from all obligations purchased by the Secretary of the Treasury during such fiscal year under section 4059 of this title, as determined by the Secretary of the Treasury (compounded annually); but does not include interest—
(i) if the service covered thereby aggregates 1 year or less; or
(ii) for a fractional part of a month in the total service;
(4) the term “normal cost” means the entry-age normal cost of the provisions of the System which relate to the Fund, computed by the Secretary of State in accordance with generally accepted actuarial practice and standards (using dynamic assumptions) and expressed as a level percentage of aggregate basic pay;
(5) the term “participant” means a person who participates in the Foreign Service Pension System;
(6) the term “pro rata share” in the case of any former spouse of any participant or former participant means the percentage which is equal to the percentage that (A) the number of years during which the former spouse was married to the participant during the service of the participant which is creditable under this subchapter is of (B) the total number of years of such service, disregarding extra credit under section 4057 of this title;
(7) the term “revised annuity participant” means any individual who—
(A) on December 31, 2012—
(i) is not a participant;
(ii) is not performing service which is creditable service under section 4071c of this title; and
(iii) has less than 5 years creditable service under section 4071c of this title; and
(B) after December 31, 2012, and before January 1, 2014, becomes a participant performing service which is creditable service under section 4071c of this title;
(8) the term “further revised annuity participant” means any individual who—
(A) on December 31, 2013—
(i) is not a participant;
(ii) is not performing service which is creditable service under section 4071c of this title; and
(iii) has less than 5 years creditable service under section 4071c of this title; and
(B) after December 31, 2013, becomes a participant performing service which is creditable service under section 4071c of this title;
(9) the term “supplemental liability” means the estimated excess of—
(A) the actuarial present value of all future benefits payable from the Fund under this part based on the service of participants or former participants, over
(B) the sum of—
(i) the actuarial present value of (I) deductions to be withheld from the future basic pay of participants pursuant to section 4071e of this title and (II) contributions for past civilian and military service;
(ii) the actuarial present value of future contributions to be made pursuant to section 4071f of this title;
(iii) the Fund balance as of the date the supplemental liability is determined, to the extent that such balance is attributable—(I) to the System, or(II) to the contributions made under the Federal Employees’ Retirement Contribution Temporary Adjustment Act of 1983 (5 U.S.C. 8331 note); and
(iv) any other appropriate amount, as determined by the Secretary of State in accordance with generally accepted actuarial practices and principles;
(10) the term “System” means the Foreign Service Pension System; and
(11) the term “special agent” has the same meaning given in section 4044(15) of this title.
(Pub. L. 96–465, title I, § 852, as added Pub. L. 99–335, title IV, § 415, June 6, 1986, 100 Stat. 615; amended Pub. L. 100–238, title II, § 241, Jan. 8, 1988, 101 Stat. 1776; Pub. L. 105–382, § 2(a)(2), Nov. 13, 1998, 112 Stat. 3406; Pub. L. 112–96, title V, § 5002(a), Feb. 22, 2012, 126 Stat. 200; Pub. L. 113–67, div. A, title IV, § 402(a), Dec. 26, 2013, 127 Stat. 1185.)
§ 4071b. Participants
(a) Covered members
(b) Exclusion of participants in Foreign Service Retirement and Disability System
(c) Exclusion of individuals with certain creditable civilian service
(d) Exclusion of temporary or intermittent employees
(Pub. L. 96–465, title I, § 853, as added Pub. L. 99–335, title IV, § 415, June 6, 1986, 100 Stat. 616; amended Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 103–178, title II, § 204(b)(1), Dec. 3, 1993, 107 Stat. 2033.)
§ 4071c. Creditable service
(a) Service includedFor purposes of this part, creditable service of a participant includes—
(1) service as a participant after December 31, 1986;
(2) service with respect to which deductions and withholdings under section 204(a)(2) of the Federal Employees’ Retirement Contribution Temporary Adjustment Act of 1983 have been made; and
(3) except as provided in subsection (b), any civilian service performed before January 1, 1989 (other than service under paragraph (1) or (2)), which, but for the amendment made by section 414 of the Federal Employees’ Retirement System Act of 1986, would be creditable under part I (determined without regard to any deposit or redeposit requirement under such part, subchapter III of chapter 83 of title 5 (the Civil Service Retirement System), or title II of the Central Intelligence Agency Retirement Act (50 U.S.C. 2011 et seq.), any requirement that the individual become subject to such part, subchapter, or title after performing the service involved, or any requirement that the individual give notice in writing to the official by whom such individual is paid of such individual’s desire to become subject to such part, subchapter, or title).
(b) Refund of retirement deductions; retirement deduction not made; required deposit; computation of interest
(1) A participant who has received a refund of retirement deductions under part I with respect to any service described in subsection (a)(3) may not be allowed credit for such service under this part unless such participant deposits into the Fund an amount equal to 1.3 percent of basic pay for such service, with interest.
(2) A participant may not be allowed credit under this part for any service described in subsection (a)(3) for which retirement deductions under part I have not been made, unless such participant deposits into the Fund an amount equal to 1.3 percent of basic pay for such service, with interest.
(3) Interest under paragraph (1) or (2) shall be computed in accordance with section 4045(d) of this title and regulations issued by the Secretary of State.
(c) Volunteer service; required payment
(1) Credit shall be given under this System to a participant for a period of prior satisfactory service as—
(A) a volunteer or volunteer leader under the Peace Corps Act (22 U.S.C. 2501 et seq.),
(B) a volunteer under part A of title VIII of the Economic Opportunity Act of 1964, or
(C) a full-time volunteer for a period of service of at least 1 year’s duration under part A, B,1
1 See References in Text note below.
or C of title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.),if the participant makes a payment to the Fund equal to 3 percent of pay received for the volunteer service; except, the amount to be paid for volunteer service beginning on January 1, 1999, through December 31, 2000, shall be as follows:
3.25 | January 1, 1999, to December 31, 1999. | |
3.4 | January 1, 2000, to December 31, 2000. |
(2) The amount of such payments shall be determined in accordance with regulations of the Secretary of State consistent with regulations for making corresponding determinations under chapter 83, title 5, together with interest determined under regulations issued by the Secretary of State.
(d) Prior service under other retirement system; waiver of credit and payment into Fund
(e) Employees of Members or offices of Congress
(Pub. L. 96–465, title I, § 854, as added Pub. L. 99–335, title IV, § 415, June 6, 1986, 100 Stat. 616; amended Pub. L. 99–556, title IV, § 405, Oct. 27, 1986, 100 Stat. 3137; Pub. L. 100–238, title II, § 242, Jan. 8, 1988, 101 Stat. 1776; Pub. L. 103–178, title II, § 204(b)(2), Dec. 3, 1993, 107 Stat. 2033; Pub. L. 105–33, title VII, § 7001(e)(1)(B), Aug. 5, 1997, 111 Stat. 661; Pub. L. 106–346, § 101(a) [title V, § 505(e)(2)], Oct. 23, 2000, 114 Stat. 1356, 1356A–54.)
§ 4071d. Entitlement to annuity
(a) Retirement conditions; definitions
(1) Any participant may be retired under the conditions specified in section 4051 of this title and shall be retired under the conditions specified in sections 4052 and 4053 of this title and receive benefits under this part.
(2) For the purposes of this subsection—
(A) the term “participant”, as used in the sections referred to in paragraph (1), means a participant in the Foreign Service Pension System; and
(B) the term “System”, as used in those sections, means the Foreign Service Pension System.
(3) For purposes of any annuity computation under this subsection, the average pay (as used in section 8414 1
1 See References in Text note below.
of title 5) of any member of the Service whose official duty station is outside the continental United States shall be considered to be the salary that would have been paid to the member had the member’s official duty station been Washington, D.C., including locality-based comparability payments under section 5304 of title 5 that would have been payable to the member if the member’s official duty station had been Washington, D.C.(b) Voluntary or mandatory retirement with authorization for immediate annuity; computation of annuity
(1) Any participant who retires voluntarily or mandatorily under section 4007, 4008, 4010a, 4051, 4052, or 4053 of this title under conditions authorizing an immediate annuity for participants in the Foreign Service Retirement and Disability System or for participants in the Foreign Service Pension System, and who has completed at least 5 years as a member of the Foreign Service, shall be entitled to an immediate annuity computed under paragraph (2).
(2) An annuity under paragraph (1) shall be computed—
(A) in accordance with section 8415(e)(1) of title 5 for all service while a participant in this System and for prior service creditable under this part not otherwise counted as—
(i) a member of the Service,
(ii) an employee of the Central Intelligence Agency entitled to retirement credit under title II of the Central Intelligence Agency Retirement Act (50 U.S.C. 2011 et seq.) or under section 302(a) or 303(b) of that Act (50 U.S.C. 2152(a), 2153(b)), or
(iii) a participant as a Member of Congress, a congressional employee, law enforcement officer, firefighter, or air traffic controller in the Civil Service Retirement System under subchapter III of chapter 83, title 5, or in the Federal Employees’ Retirement System under chapter 84 of title 5; and
(B) at the rate stated in section 8415(a) of title 5 for all other service creditable under this System including service in excess of 20 years otherwise creditable under paragraph (A).
(3) Any participant who is involuntarily retired or separated under section 4007, 4008, 4010, or 4010a of this title and who would if a participant under part I, become eligible for a refund of contributions or a deferred annuity under part I, shall, in lieu thereof, receive benefits for an involuntary separation under this part.
(4) A disability annuity under this part required to be redetermined under section 8452(b) of title 5, or computed under section 8452(c) or (d) of such title 5, shall be recomputed or computed using the formula in subsection (b)(2)(A) of this section rather than section 8415 of such title 5 (as stated in section 8452(b)(2)(A) and 8452(c) and (d) of such title). Such annuity shall also be computed in accordance with the preceding sentence if, as of the day on which such annuity commences or is restored, the annuitant satisfies the age and service requirements for entitlement to an immediate annuity under section 4051 of this title.
(5) A former participant entitled to a deferred annuity under section 8413(b) of title 5 shall not be subject to section 8415(g)(1) of such title 5 if the former participant has 20 years of service creditable under this part and is at least 50 years of age as of the date on which the annuity is to commence.
(6)
(A) The amount of a survivor annuity for a widow or widower of a participant or former participant shall be 50 percent of an annuity computed for the deceased under this part rather than under section 8415 of such title 5 (as stated in sections 8442(a)(1), (b)(1)(B), and (c)(2) of such title).
(B) Any calculation for a widow or widower of a participant or former participant under section 8442(f)(2)(A) shall be based on an “assumed FSRDS annuity” rather than an “assumed CSRS annuity” as stated in such section. For the purpose of this subparagraph, the term “assumed FSRDS annuity” means the amount of the survivor annuity to which the widow or widower would be entitled under part I based on the service of the deceased annuitant determined under section 8442(f)(5) of such title 5.
(c) Annuity supplement
(d) Separation for cause based on disloyalty
(Pub. L. 96–465, title I, § 855, as added Pub. L. 99–335, title IV, § 415, June 6, 1986, 100 Stat. 617; amended Pub. L. 99–556, title IV, § 406, Oct. 27, 1986, 100 Stat. 3138; Pub. L. 103–178, title II, § 204(b)(3), Dec. 3, 1993, 107 Stat. 2033; Pub. L. 105–277, div. G, subdiv. B, title XXIII, § 2312(b), Oct. 21, 1998, 112 Stat. 2681–827; Pub. L. 105–382, § 2(d)(3)(B), Nov. 13, 1998, 112 Stat. 3408; Pub. L. 107–228, div. A, title III, § 322(b)(1), Sept. 30, 2002, 116 Stat. 1384; Pub. L. 112–96, title V, § 5001(c)(2)(F), Feb. 22, 2012, 126 Stat. 200.)
§ 4071e. Deductions and withholdings from pay
(a) Basic pay
(1) The employing agency shall deduct and withhold from the basic pay of each participant the applicable percentage of basic pay specified in paragraph (2) of this subsection minus the percentage then in effect under section 3101(a) of title 26 (relating to the rate of tax for old age, survivors, and disability insurance).
(2)
(A) The applicable percentage for a participant other than a revised annuity participant or a further revised annuity participant shall be as follows:
7.5 | Before January 1, 1999. | |
7.75 | January 1, 1999, to December 31, 1999. | |
7.9 | January 1, 2000, to December 31, 2000. | |
7.55 | After January 11, 2003. |
(B) The applicable percentage for a revised annuity participant shall be as follows:
9.85 | After December 31, 2012 |
(C) The applicable percentage for a further revised annuity participant shall be as follows:
11.15 | After December 31, 2013. |
(b) Consent to deductions; discharge of claims
(c) Deposit of amounts
(d) Entry on individual retirement records
(Pub. L. 96–465, title I, § 856, as added Pub. L. 99–335, title IV, § 415, June 6, 1986, 100 Stat. 618; amended Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 105–33, title VII, § 7001(e)(1)(A), Aug. 5, 1997, 111 Stat. 661; Pub. L. 106–346, § 101(a) [title V, § 505(e)(1)], Oct. 23, 2000, 114 Stat. 1356, 1356A–53; Pub. L. 107–228, div. A, title III, § 322(b)(2), Sept. 30, 2002, 116 Stat. 1384; Pub. L. 112–96, title V, § 5002(b), Feb. 22, 2012, 126 Stat. 200; Pub. L. 113–67, div. A, title IV, § 402(b), Dec. 26, 2013, 127 Stat. 1185.)
§ 4071f. Government contributions
(a) Each agency employing any participant shall contribute to the Fund the amount computed in a manner similar to that used under section 8423(a) of title 5 pursuant to determinations of the normal cost percentage for the Foreign Service Pension System by the Secretary of State.
(b)
(1) The Secretary of State shall compute the amount of the supplemental liability of the Fund as of the close of each fiscal year beginning after September 30, 1987. The amount of any such supplemental liability shall be amortized in 30 equal annual installments with interest computed at the rate used in the most recent valuation of the System.
(2) At the end of each fiscal year, the Secretary of State shall notify the Secretary of the Treasury of the amount of the installment computed under this subsection for such year.
(3) Before closing the accounts for a fiscal year, the Secretary of the Treasury shall credit to the Fund, as a Government contribution, out of any money in the Treasury of the United States not otherwise appropriated, the amount under paragraph (2) of this subsection for such year.
(c)
(1) Subject to paragraphs (2) and (3), for purposes of any period in any year beginning after December 31, 2013, the normal-cost percentage under this section shall be determined and applied as if section 402(b) of the Bipartisan Budget Act of 2013 had not been enacted.
(2) Any contributions under this section in excess of the amounts which (but for paragraph (1)) would otherwise have been payable shall be applied toward reducing the unfunded liability of the Foreign Service Retirement and Disability System.
(3) After the unfunded liability of the Foreign Service Retirement and Disability System has been eliminated, as determined by the Secretary of State, Government contributions under this section shall be determined and made disregarding this subsection.
(Pub. L. 96–465, title I, § 857, as added Pub. L. 99–335, title IV, § 415, June 6, 1986, 100 Stat. 618; amended Pub. L. 113–67, div. A, title IV, § 402(c), Dec. 26, 2013, 127 Stat. 1185.)
§ 4071g. Cost-of-living adjustments
Cost-of-living adjustments for annuitants under this System shall be granted under procedures in section 8462 of title 5 in the same manner as such adjustments are made for annuitants referred to in subsection (c)(3)(B)(ii) of such section.
(Pub. L. 96–465, title I, § 858, as added Pub. L. 99–335, title IV, § 415, June 6, 1986, 100 Stat. 619.)
§ 4071h. General and administrative provisions
(a) Administration by Secretary of State; issuance of regulations
(b) Appeal of determinations
(c) Periodic valuations by Secretary of the Treasury
(Pub. L. 96–465, title I, § 859, as added Pub. L. 99–335, title IV, § 415, June 6, 1986, 100 Stat. 619.)
§ 4071i. Transition provisions
The Secretary of State shall issue regulations providing for the transition from the Foreign Service Retirement and Disability System to the Foreign Service Pension System in a manner comparable to the transition of employees subject to subchapter III of chapter 83 of title 5 (the Civil Service Retirement System) to the Federal Employees’ Retirement System. For this and related purposes, references made to participation in subchapter III of chapter 83 of title 5 (the Civil Service Retirement System), the Social Security Act [42 U.S.C. 301 et seq.], and title 26 shall be deemed to refer to participation in the Foreign Service Pension System or the Foreign Service Retirement and Disability System, as appropriate.
(Pub. L. 96–465, title I, § 860, as added Pub. L. 99–335, title IV, § 415, June 6, 1986, 100 Stat. 619; amended Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095.)
§ 4071j. Former spouses
(a) Entitlement to share in benefits; conditions; remarriage; payments as income to former spouse; disability annuitants; election regarding method of payment; maximum amount payable
(1)
(A) Unless otherwise expressly provided by any spousal agreement or court order governing disposition of benefits under this part, a former spouse of a participant or former participant is entitled, during the period described in subparagraph (B), to a share (determined under paragraph (2)) of all benefits otherwise payable to such participant under this part if such former spouse was married to the participant for at least 10 years during service of the participant which is creditable under this subchapter with at least 5 of such years occurring while the participant was a member of the Foreign Service.
(B) The period referred to in subparagraph (A) is the period which begins on the first day of the month following the month in which the divorce or annulment becomes final and ends on the last day of the month before the former spouse dies or remarries before 55 years of age.
(2) The share referred to in paragraph (1) equals—
(A) 50 percent, if such former spouse was married to the participant throughout the actual years of service of the participant which are creditable under this subchapter; or
(B) a pro rata share of 50 percent, if such former spouse was not married to the participant throughout such creditable service.
(3) A former spouse shall not be qualified for any benefit under this subsection if, before the commencement of any benefit, the former spouse remarries before becoming 55 years of age.
(4)
(A) For purposes of title 26, payments to a former spouse under this section shall be treated as income to the former spouse and not to the participant.
(B) Any reduction in payments to a participant or former participant as a result of payments to a former spouse under this subsection shall be disregarded in calculating—
(i) the survivor annuity for any spouse, former spouse, or other survivor under this part, and
(ii) any reduction in the annuity of the participant to provide survivor benefits under this part.
(5) Notwithstanding subsection (a)(1), in the case of any former spouse of a disability annuitant—
(A) the annuity of the former spouse shall commence on the date the participant would qualify, on the basis of his or her creditable service, for an annuity under this subchapter (other than a disability annuity) or the date the disability annuity begins, whichever is later, and
(B) the amount of the annuity of the former spouse shall be calculated on the basis of the annuity for which the participant would otherwise so qualify.
(6)
(A) Except as provided in subparagraph (B), any former spouse who becomes entitled to receive any benefit under this part which would otherwise be payable to a participant or former participant shall be entitled to make any election regarding method of payment to such former spouse that such participant would have otherwise been entitled to elect, and the participant may elect an alternate method for the remaining share of such benefits. Such elections shall not increase the actuarial present value of benefits expected to be paid under this part.
(B) A former spouse may not elect a method of payment under subchapter II, chapter 84 of title 5, providing for payment of a survivor annuity to any survivor of the former spouse.
(7) The maximum amount payable to any former spouse pursuant to this subsection shall be the difference, if any, between 50 percent of the total benefits authorized to be paid to a former participant by this part, disregarding any apportionment of these benefits to others, and the aggregate amount payable to all others at any one time.
(b) Entitlement to survivor benefits; determination of share; disqualification upon remarriage
(1) Unless otherwise expressly provided for by any spousal agreement or court order governing survivorship benefits under this part to a former spouse married to a participant or former participant for the periods specified in subsection (a)(1)(A), such former spouse is entitled to a share, determined under subsection (b)(2), of all survivor benefits that would otherwise be payable under this part to an eligible surviving spouse of the participant.
(2) The share referred to in subsection (b)(1) equals—
(A) 100 percent if such former spouse was married to the participant throughout the entire period of service of the participant which is creditable under this subchapter; or
(B) a pro rata share of 100 percent if such former spouse was not married to the participant throughout such creditable service.
(3) A former spouse shall not be qualified for any benefit under this subsection if, before the commencement of any benefit, the former spouse remarries before becoming 55 years of age.
(c) Diminution of entitlement of former spouse prohibited
(d) Transfer of participant from Foreign Service Retirement and Disability System; determination of benefit share
(e) Death of participant entitled to deferred annuity; spousal agreement; payment of survivor annuity
(Pub. L. 96–465, title I, § 861, as added Pub. L. 99–335, title IV, § 415, June 6, 1986, 100 Stat. 619; amended Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 99–556, title IV, § 407, Oct. 27, 1986, 100 Stat. 3139.)
§ 4071k. Spousal agreements
A spousal agreement is any written agreement (properly authenticated as determined by the Secretary of State) between a participant or former participant and his or her spouse or former spouse on file with the Secretary of State. A spousal agreement shall be consistent with the terms of this chapter and applicable regulations and, if executed at the time a participant or former participant is currently married, shall be approved by such current spouse. It may be used to fix the level of benefits payable under this part to a spouse or former spouse.
(Pub. L. 96–465, title I, § 862, as added Pub. L. 99–335, title IV, § 415, June 6, 1986, 100 Stat. 621.)