Transfer of contributions from other Government retirement fund
If a member of the Service who is under another retirement system for Government employees becomes a participant in the System by direct transfer, the total contributions and deposits of that member that would otherwise be refundable on separation (except voluntary contributions), including interest thereon, shall be transferred to the Fund effective as of the date such member becomes a participant in the System. Each such member shall be deemed to consent to the transfer of such funds, and such transfer shall be a complete discharge and acquittance of all claims and demands against the other Government retirement fund on account of service rendered by such member prior to becoming a participant in the System.
A member of the Service whose contributions are transferred to the Fund pursuant to paragraph (1) shall not be required to make additional contributions for periods of service for which required contributions were made to the other Government retirement fund; nor shall any refund be made to any such member on account of contributions made during any period to the other Government retirement fund at a higher rate than that fixed by subsection (d).
Contribution for military or naval service
Subject to paragraph (5), each participant who has performed military or naval service before the date of separation on which the entitlement to any annuity under this part is based may pay to the Secretary a special contribution equal to 7 percent of the amount of the basic pay paid under section 204 of title 37
, to the participant for each period of military or naval service after December 1956. 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 Secretary determines sufficient evidence has not been so provided to adequately determine basic pay for military or naval service, such payment shall be based upon estimates of such basic pay provided to the Department under paragraph (4).
Any deposit made under paragraph (1) of this subsection more than two years after the later of—
the date on which the participant making the deposit first became a participant in a Federal staff retirement system for civilian employees,—
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 subsection (d) of this section.
Any payment received by the Secretary under this section shall be remitted to the Fund.
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 Secretary as the Secretary may determine to be necessary for the administration of this subsection.
Effective with respect to any period of military or naval service after December 31, 1998
, the percentage of basic pay under section 204 of title 37
payable under paragraph (1) shall be equal to the same percentage as would be applicable under section 8334(c) of title 5
for that same period for service as an employee.
[Pub. L. 96–465, title I, § 805], Oct. 17, 1980, [94 Stat. 2104]; Ex. Ord. No. 12446, § 4(a), Oct. 17, 1983, 48 F.R. 48444; [Pub. L. 99–335, title IV], §§ 402(a)(2), 405, June 6, 1986, [100 Stat. 609], 610; [Pub. L. 99–514, § 2], Oct. 22, 1986, [100 Stat. 2095]; [Pub. L. 100–238, title II, § 212], Jan. 8, 1988, [101 Stat. 1773]; [Pub. L. 102–499, § 4(a)], (b), Oct. 24, 1992, [106 Stat. 3265]; [Pub. L. 105–33, title VII, § 7001(d)(2)(C)], (D), Aug. 5, 1997, [111 Stat. 660], 661; [Pub. L. 105–382, § 2(b)], (c), Nov. 13, 1998, [112 Stat. 3407]; [Pub. L. 106–346, § 101(a) [title V, § 505(d)(2)]], Oct. 23, 2000, [114 Stat. 1356], 1356A–53; [Pub. L. 107–228, div. A, title III, § 322(a)(2)], Sept. 30, 2002, [116 Stat. 1384]; [Pub. L. 112–96, title V, § 5001(c)(2)(D)], Feb. 22, 2012, [126 Stat. 200]; [Pub. L. 117–225, § 3(b)(2)(B)(i)], Dec. 9, 2022, [136 Stat. 2296].)