(2) An employee of the Panama Canal Commission or of an Execuve agency conducting operations in the Canal Zone or Republic of Panama who is separated from the service before January 1, 2000, ho was employed, at a permanent duty station in the Canal Zone, by ny Executive agency other than the Canal Zone Government or the Panama Canal Company at any time during the period beginning March 31, 1979, and ending September 30, 1979, and who has had connuous Panama Canal service, without a break in service of more than days, from that time until separation, is entitled to an annuity if—

(A) the employee is separated involuntarily, after completing 20 years of service or after becoming 48 years of age and completing 18 years of service; and

(B) the separation is the result of the implementation of any provision of the Panama Canal Treaty of 1977 and related agreements.

(3) For the purpose of this subsection

(A) "Panama Canal service" means—

(i) service as an employee of the Canal Zone Government, the Panama Canal Company, or the Panama Canal Commission; or

(ii) service at a permanent duty station in the Canal Zone or Republic of Panama as an employee of an Executive agency conducting operations in the Canal Zone or the Republic of Panama; and

(B) "Executive agency" includes the United States District Court for the District of the Canal Zone and the Smithsonian Institution.

(j) (1) Except as provided in paragraph (3), an employee is entitled to an annuity if he

(A) (i) is separated from the service after completing 25 years of service or after becoming 50 years of age and completing 20 years of service, or

(ii) is involuntarily separated, except by removal for cause on charges of misconduct or delinquency, during the 2-year period before the date on which he would meet the years of service and age requirements under clause (i),

(B) was employed in the Bureau of Indian Affairs, the Indian Health Service, a tribal organization (to the extent provided in paragraph (2)), or any combination thereof, continuously from December 21, 1972, to the date of his separation, and

(C) is not entitled to preference under the Indian preference laws.

(2) Employment in a tribal organization may be considered for purposes of paragraph (1)(B) of this subsection only if

(A) the employee was employed by the tribal organization after January 4, 1975, and immediately before such employment he was an employee of the Bureau of Indian Affairs or the Indian Health Service, and

(B) at the time of such employment such employee and the tribal organization were eligible to elect, and elected, to have the employee retain the coverage, rights, and benefits of this chapter under section 105 (e) (2) of the Indian Self-Determination Act (25 U.S.C. 450i (a) (2); 88 Stat. 2209).

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(3)(A) The provisions of paragraph (1) of this subsection shall no apply with respect to any separation of any employee which occur after the date 5 years after

(i) the date the employee first meets the years of service an age requirements of paragraph (1)(A)(i), or

(ii) the date of the enactment of this paragraph, if the employe met those requirements before that date.

(B) For purposes of applying this paragraph with respect to an employee of the Bureau of Indian Affairs in the Department of th Interior or of the Indian Health Service in the Department of Health Education, and Welfare, the Secretary of the department involve may postpone the date otherwise applicable under subparagraph (A if

(i) such employee consents to such postponement, and

(ii) the Secretary finds that such postponement is necessar for the continued effective operation of the agency.

The period of any postponement under this subparagraph shall no exceed 12 months and the total period of all postponements with respec to any employee shall not exceed 5 years.

(4) For the purpose of this subsection

(A) "Bureau of Indian Affairs" means (i) the Bureau of India Affairs and (ii) all other organizational units in the Departmen of the Interior directly and primarily related to providing service to Indians and in which positions are filled in accordance wit the Indian preference laws.

(B) "Indian preference laws" means section 12 of the Act o June 18, 1934 (25 U.S.C. 472; 48 Stat. 986), or any other provisio of law granting a preference to Indians in promotions or othe Federal personnel actions.

(k) An annuity or reduced annuity authorized by this section computed under section 8339 of this title. (Pub. L. 89-554, Sept. 1966, 80 Stat. 571, amended Pub. L. 90-83, § 1(75), Sept. 11, 196 81 Stat. 214; Pub. L. 92-297, § 5, May 16, 1972, 86 Stat. 144; Pub. I 92-382, § 1, Aug. 14, 1972, 86 Stat. 539: Pub. L. 93-39, June 12, 197 87 Stat. 73; Pub. L. 93-350, § 5, July 12, 1974, 88 Stat. 356; Pub. I 94-183, § 2 (40) and (41). Dec. 31, 1975, 89 Stat. 1059; Pub. L. 95-45 Oct. 13, 1978, 92 Stat. 1147, 1175; Pub. L. 96-70, Sept. 27, 1979, 93 Sta 471; Pub. L. 96–135, Dec. 5, 1979, 93 Stat. 1056.)

§ 8337. Disability retirement

(a) An employee who completes 5 years of civilian service and ha become disabled shall be retired on the employee's own application on application by the employee's agency. Any employee shall considered to be disabled only if the employee if found by the Offic of Personnel Management to be unable, because of disease or injury, render useful and efficient service in the employee's position and not qualified for reassignment, under procedures prescribed by t Office, to a vacant position which is in the agency at the same grad or level and in which the employee would be able to render useful ar efficient service. For the purpose of the preceding sentence, a employee of the United States Postal Service shall be considered n qualified for a reassignment described in that sentence if the rea

1 Should be "is".

nment is to a position in a different craft or is inconsistent with the erms of a collective bargaining agreement covering the employee. A Member who completes 5 years of Member service and is found by the Office to be disabled for useful and efficient service as a Member ecause of disease or injury shall be retired on the Member's own application. An annuity authorized by this section is computed under ction 8339 (g) of this title, unless the employee or Member is eligible for a higher annuity computed under section 8339 (a)-(e) or (n). (b) A claim may be allowed under this section only if the applicaon is filed with the Office before the employee or Meniber is separated from the service or within 1 year thereafter. This time limitation may e waived by the Office for an employee or Member who at the date of separation from service or within 1 year thereafter is mentally incompetent, if the application is filed with the Office within 1 year from the date of restoration of the employee or Member to competency or the appointment of a fiduciary, whichever is earlier.

(c) An annuitant receiving disability retirement annuity from the Fund shall be examined under the direction of the Office

(1) at the end of 1 year from the date of the disability retirement; and

(2) annually thereafter until he becomes 60 years of age; inless his disability is permanent in character. If the annuitant fails to submit to examination as required by this section, payment of the annuity shall be suspended until continuance of the disability is satisfactorily established.

(d) If an annuitant receiving disability retirement annuity from the Fund, before becoming 60 years of age, recovers from his disability, payment of the annuity terminates on reemployment by the Government or 1 year after the date of the medical examination showing the recovery, whichever is earlier. If an annuitant receiving disability retirement annuity from the Fund, before becoming 60 years of age, is restored to an earning capacity fairly comparable to the current rate of pay of the position occupied at the time of retirement, payment of the annuity terminates on reemployment by the Government or 1 year after the end of the calendar year in which earning capacity is so restored. whichever is earlier. Earning capacity is deemed restored if in each of 2 succeeding calendar years the income of the annuitant from wages or self-employment or both equals at least 80 percent of the curernt rate of pay of the position occupied immediately before retirement.

(e) If an annuitant whose annuity is terminated under subsection d) of this section is not reemployed in a position in which he is subject to this subchapter, he is deemed, except for service credit, to have been involuntarily separated from the service for the purpose of this subchapter as of the date of termination of the disability annuity, and after that termination is entitled to annuity under the applicable provisions of this subchapter. If an annuitant whose annuity is heretofore or hereafter terminated because of an earning capacity provision of his subchapter or an earlier statute

(1) is not reemployed in a position within the purview of this subchapter; and

(2) has not recovered from the disability for which he was retired;

his annuity shall be restored at the same rate effective the first of th year following any calendar year in which his income from wages o self-employment or both is less than 80 percent of the current rate c pay of the position occupied immediately before retirement. If a annuitant whose annuity is heretofore or hereafter terminated becaus of a medical finding that he has recovered from disability is not re employed in a position in which he is subject to this subchapter, hij annuity shall be restored at the same rate effective from the date o medical examination showing a recurrence of the disability. The sec ond and third sentences of this subsection do not apply to an individ ual who has become 62 years of age and is receiving or is eligible t receive annuity under the first sentence of this subsection.

(f) An individual is not entitled to receive an annuity under thi subchapter and compensation for injury or disability to himself unde subchapter I of chapter 81 of this title covering the same period o time. This provision does not bar the right of a claimant to the greate benefit conferred by either subchapter for any part of the same perio of time. Neither this provision nor any provision of subchapter I o chapter 81 of this title denies to an individual an annuity accruing to him under this subchapter on account of service performed by him or denies any concurrent benefit to him under subchapter I of chapter 81 of this title on account of the death of another individual.

(g) The right of an individual entitled to an annuity under this subchapter is not affected because he has received a lump-sum payment for compensation under section 8135 of this title. However, if the annuity is payable on account of the same disability for which com pensation under section 8135 of this title has been paid, so much of the compensation as has been paid for a period extended beyond the date the annuity becomes effective, as determined by the Department of Labor, shall be refunded to that Department to be covered into the Employees' Compensation Fund. Before the individual may receive the annuity he shall

(1) refund to the Department of Labor the amount representing the commuted compensation payments for the extended period; or

(2) authorize the deduction of that amount from the annuity payable to him under this subchapter, which amount shall be transmitted to the Department of Labor for reimbursement to the Employees' Compensation Fund.

Deductions from the annuity may be made from accrued and accruing payments. When the Department of Labor finds that the financial circumstances of the annuitant warrant deferred refunding, deductions from the annuity may be prorated against and paid from accruing payments in such manner as that Department determines. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 572, amended Pub. L. 90-83, § 1 (76), Sept. 11, 1967, 81 Stat. 214; Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96-499, Dec. 5, 1980, 94 Stat. 2605.)

§ 8338. Deferred retirement

(a) An employee who is separated from the service or transferred to a position in which he does not continue subject to this subchapter after completing 5 years of civilian service is entitled to an annuity beginning at the age of 62 years.

b) A Member who, after December 31, 1955, is separated from the rvice as a Member after completing 5 years of civilian service is titled to an annuity beginning at the age of 62 years. A Member who separated from the service after completing 10 or more years of ember service is entitled to an annuity beginning at the age of 60 ars. A Member who is separated from the service after completing or more years of service, including 10 or more years of Member Evice, is entitled to a reduced annuity beginning at the age of 50

Pars.

(c) An annuity or reduced annuity authorized by this section is mputed under section 8339 of this title. (Pub. L. 89-554, Sept. 6, 66, 80 Stat. 574, amended Pub. L. 90-83, § 1(77), Sept. 11, 1967, 81 Sat. 214.)

$339. Computation of annuity

(a) Except as otherwise provided by this section, the annuity of an mployee retiring under this subchapter is

(1) 12 percent of his average pay multiplied by so much of his total service as does not exceed 5 years; plus

(2) 134 percent of his average pay multiplied by so much of his total service as exceeds 5 years but does not exceed 10 years; plus (3) 2 percent of his average pay multiplied by so much of his total service as exceeds 10 years.

However, when it results in a larger annuity, 1 percent of his average ay plus $25 is substituted for the percentage specified by paragraph ), (2), or (3) of this subsection, or any combination thereof.

(b) The annuity of a Congressional employee, or former Congresonal employee, retiring under this subchapter is computed under absection (a) of this section, except, if he has had—

(1) at least 5 years' service as a Congressional employee or Member or any combination thereof; and

(2) deductions withheld from his pay or has made deposit covering his last 5 years of civilian service;

is annuity is computed, with respect to his service as a Congressional employee, his military service not exceeding 5 years, and any Member ervice, by multiplying 22 percent of his average pay by the years of that service.

(c) The annuity of a Member, or former Member with title to Member annuity, retiring under this subchapter is computed under absection (a) of this section, except, if he has had at least 5 years' service as a Member or Congressional employee or any combination hereof, his annuity is computed with respect to

(1) his service as a Member and so much of his military service as is creditable for the purpose of this paragraph; and

(2) his Congressional employee service;

y multiplying 22 percent of his average pay by the years of that service.

(d) (1) The annuity of an employee retiring under section 8335 (b) 8336 (c) of this title is

(A) 22 percent of his average pay multiplied by so much of his total service as does not exceed 20 years; plus

(B) 2 percent of his average pay multiplied by so much of his total service as exceeds 20 years.