all be computed as if the annuity commencing date had been be effective date of the first increase under this section.

(3) For the purpose of computing the annuity of a child under ection 8341 (e) of this title that commences after October 31, 1969, be items $900, $1,080, $2,700, and $3,240 appearing in section 41(e) of this title shall be increased by the total percent inreases allowed and in force under this section on or after such day nd, in case of a deceased annuitant, the items 60 percent and 75 ercent appearing in section 8341 (e) of this title shall be increased the total percent allowed and in force to the annuitant under his section on or after such day.

This section does not authorize an increase in an additional ty purchased at retirement by voluntary contributions.

The monthly installment of annuity after adjustment under ection shall be fixed at the nearest dollar. However, the monthly Alment shall after adjustment reflect an increase of at least $1. Effective September 1, 1966, or on the commencing date of anwhichever is later, the annuity of each surviving spouse whose ement to annuity payable from the Fund resulted from the death

(1) an employee or Member before October 11, 1962; or (2) a retired employee or Member whose retirement was based na separation from service before October 11, 1962;

reased by 10 percent. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 576, aded Pub. L. 90-83, § 1(79), Sept. 11, 1967, 81 Stat. 215; Pub. L. 4. § 204, Oct. 20, 1969, 83 Stat. 139; Pub. L. 93-136, Oct. 24, 1973, at. 490; Pub. L. 94-126, § 2(b), Nov. 12, 1975, 89 Stat. 679; Pub. L. 3. §2 (35), Dec. 31, 1975, 89 Stat. 1958; Pub. L. 94-440, Oct. 1, 7.90 Stat. 1462; Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224; Pub. L. 9. Dec. 5, 1980, 94 Stat. 2605.)

1. Survivor annuities

(a) For the purpose of this section

(1) "widow" means the surviving wife of an employee or Member who

(A) was married to him for at least 1 year immediately before his death; or

(B) is the mother of issue by that marriage:

(2) "widower" means the surviving husband of an employee or Member who

(A) was married to her for at least 1 year immediately before her death; or

(B) is the father of issue by that marriage;

(3) "dependent", in the case of any child, means that the employee or Member involved was, at the time of the employee or Member's death, either living with or contributing to the support of such child, as determined in accordance with such regulations as the Office of Personnel Management shall prescribe; and

(4) "child" means—

(A) an unmarried dependent child under 18 years of age, including (i) an adopted child, and (ii) a stepchild but

only if the stepchild lived with the employee or Member in a regular parent-child relationship, and (iii) a recognized natural child, and (iv) a child who lived with and for whom a petition of adoption was filed by an employee or Member, and who is adopted by the surviving spouse of the employee or Member after his death;

(B) such unmarried dependent child regardless of age who is incapable of self-support because of mental or physical disability incurred before age 18; or

(C) such unmarried dependent child between 18 and 22 years of age who is a student regularly pursuing a full-time course of study or training in residence in a high school, trade school, technical or vocational institute, junior college, college, university, or comparable recognized educational institution. For the purpose of this paragraph and subsection (e) of this section, a child whose 22nd birthday occurs before July 1 or after August 31 of a calendar year, and while he is regularly pursuing such a course of study or training, is deemed to have become 22 years of age on the first day of July after that birthday. A child who is a student is deemed not to have ceased to be a student during an interim between school years if the interim is not more than 5 months and if he shows to the satisfaction of the Office of Personnel Management that he has a bona fide intention of continuing to pursue a course of study or training in the same or different school during the school semester (or other period into which the school year is divided) immediately after the interim.

(b) (1) Except as provided in paragraph (2) of this subsection, if an employee or Member dies after having retired under this subchapter and is survived by a spouse to whom he was married at the ime of retirement, or by a widow or widower whom he married after retirement, the spouse, widow, or widower is entitled to an annuity qual to 55 percent, or 50 percent if retired before October 11, 1962, of an annuity computed under section 8339 (a)-(i) and (o) of this itle as may apply with respect to the annuitant, or of such portion hereof as may have been designated for this purpose under section $339 (j) of this title, unless the employee or Member has notified the Office in writing at the time of retirement that he does not desire any pouse surviving him to receive his annuity, or in the case of remarriage, he did not file an election under the third sentence of section 339 (j) of this title.

(2) If an annuitant

(A) who retired before April 1, 1948; or

(B) who elected a reduced annuity provided in paragraph (2) of section 8339 (k) of this title;

dies and is survived by a widow or widower, the widow or widower is entitled to an annuity in an amount which would have been paid had the annuitant been married to the widow or widower at the time of retirement.

(3) A spouse acquired after retirement is entitled to a survivor annuity under this subsection only upon electing this annuity instead of any other survivor benefit to which he may be entitled under this subchapter or another retirement system for Government employees. The annuity of the spouse, widow, or widower under this subsection

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commences on the day after the annuitant dies. This annuity and t right thereto terminate on the last day of the month before the spous widow, or widower—

(A) dies; or

(B) remarries before becoming 60 years of age.

(c) The annuity of a survivor named under section 8339 (k) (1) this title is 55 percent of the reduced annuity of the retired employ or Member. The annuity of the survivor commences on the day aft the retired employee or Member dies. This annuity and the rig thereto terminate on the last day of the month before the survive dies.

(d) If an employee or Member dies after completing at least 1 months of civilian service, his widow or widower is entitled to a annuity equal to 55 percent of an annuity computed under section 833 (a)–(f), (i), and (o) of this title as may apply with respect to the en ployee or Member, except that, in computation of the annuity und such section, the annuity of the employee or Member shall be at leas

the smaller of

(1) 40 percent of his average pay; or

(2) the sum obtained under such section after increasing h service of the type last performed by the period elapsing betwee the date of death and the date he would have become 60 years c age. The annuity of the widow or widower commences on the day afte the employee or Member dies. This annuity and the right thereto ter minate on the last day of the month before the widow or widower(A) dies; or

(B) remarries before becoming 60 years of age.

(e) (1) If any employee or Member dies after completing at leas 18 months of civilian service, or an employee or Member dies afte retiring under this subchapter, and is survived by a spouse, each sur viving child is entitled to an annuity equal to the smallest of

(A) 60 percent of the average pay of the employee or Membe divided by the number of children;

(B) $900; or

(C) $2,700 divided by the number of children;

subject to section 8340 of this title. If the employee or Member is no survived by a spouse, each surviving child is entitled to an annuit equal to the smallest of

(i) 75 percent of the average pay of the employee or Membe divided by the number of children;

(ii) $1,080; or

(iii) $3,240 divided by the number of children;

subject to section 8340 of this title.

(2) The annuity of a child under this subchapter or under the Act of May 29, 1930, as amended from and after February 28, 1948, com mences on the day after the employee or Member dies, or commence or resumes on the first day of the month in which the child later be comes or again becomes a student as described by subsection (a) (3) o this section, if any lump sum paid is returned to the Fund. This an nuity and the right thereto terminate on the last day of the mont before the child

e

(A) becomes 18 years of age unless he is then a student as described or incapable of self-support;

(B) becomes capable of self-support after becoming 18 years of age unless he is then such a student:

(C) becomes 22 years of age if he is then such a student and capable of self-support;

(D) ceases to be such a student after becoming 18 years of age unless he is then incapable of self-support; or

(E) dies or marries;

whichever first occurs. On the death of the surviving spouse or termination of the annuity of a child, the annuity of any other child or hildren shall be recomputed and paid as though the spouse or child had not survived the employee or Member.

(f) If a Member heretofore or hereafter separated from the service with title to deferred annuity from the Fund hereafter dies before Caving established a valid claim for annuity and is survived by a pouse to whom married at the date of separation, the surviving

pouse

(1) is entitled to an annuity equal to 55 percent of the deferred annuity of the Member commencing on the day after the Member dies and terminating on the last day of the month before the surviving spouse dies or remarries; or

(2) may elect to receive the lump-sum credit instead of annuity if the spouse is the individual who would be entitled to the lumpsum credit and files application there for with the Office before the award of the annuity.

(g) In the case of a surviving spouse whose annuity under this secion is terminated because of remarriage before becoming 60 years of age, annuity at the same rate shall be restored commencing on the day the remarriage is dissolved by death, annulment, or divorce, if

(1) the surviving spouse elects to receive this annuity instead of a survivor benefit to which he may be entitled, under this subchapter or another retirement system for Government employces, by reason of the remarriage; and

(2) any lump sum paid on termination of the annuity is returned to the Fund.

Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 577, amended Pub. L. 90-83, 1(80), Sept. 11, 1967, 81 Stat. 216; Pub. L. 91-93, § 206, Oct. 20, 1969, 83 Stat. 140; Pub. L. 91–658, § 3, Jan. 8, 1971, 84 Stat. 1961, 1962; Pub. L. 92-243, § 1, Mar. 9, 1972, 86 Stat. 56; Pub. L. 92-297, § 7(4), May 16, 1972, 86 Stat. 145; Pub. L. 93-260, § 1(a), Apr. 9, 1974, 88 Stat. 76; Pub. L. 94-183, § 2(36), Dec. 31, 1975, 89 Stat. 1058; Pub. L. 5-317, § 1(b), July 10, 1978, 92 Stat. 382; Pub. L. 95-318, § 2, July 10, 1978, 92 Stat. 384: Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224; Pub. L. 5-598, Nov. 6, 1978, 92 Stat. 2681; Pub. L. 96–179, Jan. 2, 1980, 93 Stat. 1299.)

8342. Lump-sum benefits; designation of beneficiary; order of precedence

(a) An employee or Member who is separated from the service, or transferred to a position in which he does not continue subject to his subchapter, is entitled to be paid the lump-sum credit if his sepa