ration or transfer occurs and application for payment is filed with the Office of Personnel Management at least 31 days before the earliest commencing date of any annuity for which he is eligible. The receipt of payment of the lump-sum credit by the individual voids all annuity rights under this subchapter, until he is reemployed in the service subject to this subchapter. This subsection also applies to an employee or Member separated before October 1, 1956, after completing at least 20 years of civilian service.

(b) Under regulations prescribed by the Office, a present or former employee or Member may designate a beneficiary or beneficiaries for the purpose of this subchapter.

(c) Lump-sum benefits authorized by subsections (d)-(f) of this section shall be paid to the person or persons surviving the employee or Member and alive at the date title to the payment arises in the following order of precedence, and the payment bars recovery by any other

person:

First, to the beneficiary or beneficiaries designated by the employee or Member in a signed and witnessed writing received in the Office before his death. For this purpose, a designation, change, or cancellation of beneficiary in a will or other document not so executed and filed has no force or effect.

Second, if there is no designated beneficiary, to the widow or widower of the employee or Member.

Third, if none of the above, to the child or children of the employee or Member and descendants of deceased children by representation.

Fourth, if none of the above, to the parents of the employee or Member or the survivor of them.

Fifth, if none of the above, to the duly appointed executor or administrator of the estate of the employee or Member.

Sixth, if none of the above, to such other next of kin of the employee or Member as the Office determines to be entitled under the laws of the domicile of the employee or Member at the date of his death.

For the purpose of this subsection, "child" includes a natural child and an adopted child, but does not include a stepchild.

(d) If an employee or Member dies

(1) without a survivor; or

(2) with a survivor or survivors and the right of all survivors terminates before a claim for survivor annuity is filed;

or if a former employee or Member not retired dies, the lump-sum shall be paid.

(e) If all annuity rights under this subchapter based on the service of a deceased employee or Member terminates before the total annuity paid equals the lump-sum credit, the difference shall be paid.

(f) If an annuitant dies, annuity accrued and unpaid shall be paid. (g) Annuity accrued and unpaid on the termination, except by death, of the annuity of an annuitant or survivor annuitant shall be paid to that individual. Annuity accrued and unpaid on the death of a survivor annuitant shall be paid in the following order of precedence, and the payment bars recovery by any other person:

First, to the duly appointed executor or administrator of the estate of the survivor annuitant.

Second, if there is no executor or administrator, payment may be made, after 30 days from the date of death of the survivor annuitant, to such next of kin of the survivor annuitant as the Office determines to be entitled under the laws of the domicile of the survivor annuitant at the date of his death.

(h) Amounts deducted and withheld from the basic pay of an employee or Member from the first day of the first month which begins after he has performed sufficient service (excluding service which the employee or Member elects to eliminate for the purpose of annuity computation under section 8339 of this title) to entitle him to the maximum annuity provided by section 8339 of this title, together with interest on the amounts at the rate of 3 percent a year compounded annually from the date of the deductions to the date of retirement or death, shall be applied toward any deposit due under section 8334 of this title, and any balance not so required is deemed a voluntary contribution for the purpose of section 8343 of this title.

(i) An employee who

(1) is separated from the service before July 12, 1960; and (2) continues in the service after July 12, 1960, without break in service of 1 workday or more;

is entitled to the benefits of subsection (h) of this section. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 579, amended Pub. L. 90-83, § 1(81), Sept. 11, 1967, 81 Stat. 217; Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224.) §8343. Additional annuities; voluntary contributions

(a) Under regulations prescribed by the Office of Personnel Management, an employee or Member may voluntarily contribute additional sums in multiples of $25, but the total may not exceed 10 percent of his basic pay for creditable service after July 31, 1920. The voluntary contribution account in each case is the sum of unrefunded contributions, plus interest at 3 percent a year compounded annually to

(1) the date of payment under subsection (d) of this section, separation, or transfer to a position in which he does not continue subject to this subchapter, whichever is earliest ; or

(2) the commencing date fixed for a deferred annuity or date of death, whichever is earlier, in the case of an individual who is separated with title to deferred annuity and does not claim the voluntary contribution account.

(b) The voluntary contribution account is used to purchase at retirement an annuity in addition to the annuity otherwise provided. For each $100 in the voluntary contribution account, the additional annuity consists of $7, increased by 20 cents for each full year, if any, the employee or Member is over 55 years of age at the date of retirement.

(c) A retiring employee or Member may elect a reduced additional annuity instead of the additional annuity described by subsection (b) of this section and designate in writing an individual to receive after his death an annuity of 50 percent of his reduced additional annuity. The additional annuity of the employee or Member making the election is reduced by 10 percent, and by 5 percent for each full 5 years the individual designated is younger than the retiring employee or Member. However, the total reduction may not exceed 40 percent.

(d) A present or former employee or Member is entitled to be paid the voluntary contribution account if he files application for payment

with the Office before receiving an additional annuity. An individual who has been paid the voluntary contribution account may not again deposit additional sums under this section until, after a separation from the service of more than 3 calendar days, he again becomes subject to this subchapter.

(e) If a present or former employee or Member not retired dies, the voluntary contribution account is paid under section 8342 (c) of this title. If all additional annuities or any right thereto based on the voluntary contribution account of a deceased employee or Member terminate before the total additional annuity paid equals the account, the difference is paid under section 8342 (c) of this title. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 580, amended Pub. L. 90-83, § 1 (82), Sept. 11, 1967, 81 Stat. 217; Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224.)

§ 8344. Annuities and pay on reemployment

(a) If an annuitant receiving annuity from the Fund, except(1) a disability annuitant whose annuity is terminated because of his recovery or restoration of earning capacity;

(2) an annuitant whose annuity, based on an involuntary separation (other than an automatic separation or an involuntary separation for cause on charges of misconduct or delinquency), is terminated under subsection (b) of this section;

(3) an annuitant whose annuity is terminated under subsection (c) of this section; or

(4) a Member receiving annuity from the Fund;

becomes employed in an appointive or elective position, his service on and after the date he is so employed is covered by this subchapter. Deductions for the Fund may not be withheld from his pay. An amount equal to the annuity allocable to the period of actual employment shall be deducted from his pay, except for lump-sum leave payment purposes under section 5551 of this title. The amounts so deducted shall be deposited in the Treasury of the United States to the credit of the Fund. If the annuitant serves on a full-time basis, except as President, for at least 1 year, or on a part-time basis for periods equivalent to at least 1 year of full-time service, in employment not excluding him from coverage under section 8331(1) (i) or (ii) of this title

(A) his annuity on termination of employment is increased by an annuity computed under section 8339 (a), (b), (d), (e), (h), (i), and (o) of this title as may apply based on the period of employment and the basic pay, before deduction, averaged during that employment; and

(B) his lump-sum credit may not be reduced by annuity paid during that employment.

If the annuitant is receiving a reduced annuity as provided in section 8339 (j) or section 8339 (k) (2) of this title, the increase in annuity payable under subparagraph (A) of this subsection is reduced by 10 percent and the survivor annuity payable under section 8341(b) of this title is increased by 55 percent of the increase in annuity payable under such subparagraph (A), unless, at the time of claiming the increase payable under such subparagraph (A), the annuitant notifies

Office of Personnel Management in writing that he does not desire e survivor annuity to be increased. If the annuitant dies while still employed, the survivor annuity payable is increased as though the employment had otherwise terminated. If the described employment the annuitant continues for at least 5 years, or the equivalent of years in the case of part-time employment, he may elect, instead of te benefit provided by subparagraph (A) of this subsection, to desit in the Fund an amount computed under section 8334 (c) of this le covering that employment and have his rights redetermined under is subchapter. If the annuitant dies while still reemployed and the escribed employment had continued for at least 5 years, or the equivant of 5 years in the case of part-time employment, the person enled to survivor annuity under section 8341(b) of this title may ect to deposit in the Fund and have his rights redetermined under his subchapter.

(b) If an annuitant, other than a Member receiving an annuity om the Fund, whose annuity is based on an involuntary separation ther than an automatic separation or an involuntary separation for use or charges on misconduct or delinquency) is reemployed in a sition in which he is subject to this subchapter, payment of the anuity terminates on reemployment.

(c) If an annuitant, other than a Member receiving an annuity Tom the Fund, is appointed by the President to a position in which he subject to this subchapter, or is elected as a Member, payment of the nuity terminates on reemployment.

(d) If a Member receiving annuity from the Fund becomes emoyed in an appointive or elective position, annuity payments are scontinued during the employment and resumed in the same amount termination of the employment, except that

(1) the retired Member or Member separated with title to immediate or deferred annuity, who serves at any time after separation as a Member in an appointive position in which he is subject to this subchapter, is entitled, if he so elects, to have his Member annuity computed or recomputed as if the service had been performed before his separation as a Member and the annuity as so computed or recomputed is effective

(A) the day Member annuity commences; or

(B) the day after the date of separation from the appointive position;

whichever is later;

(2) if the retired Member becomes employed after December 31, 1958, in an appointive position on an intermittent-service basis

(A) his annuity continues during the employment and is not increased as a result of service performed during that employment;

(B) retirement deductions may not be withheld from his pay;

(C) an amount equal to the annuity allocable to the period of actual employment shall be deducted from his pay, except for lump-sum leave payment purposes under section 5551 of this title; and

(D) the amounts so deducted shall be deposited in th Treasury of the United States to the credit of the Fund; (3) if the retired Member becomes employed after December 3: 1958, in an appointive position without pay on a full-time o substantially full-time basis, his annuity continues during th employment and is not increased as a result of service performe during the employment; and

(4) if the retired Member takes office as Member and give notice as provided by section 8331(2) of this title, his service a Member during that period shall be credited in determining hi right to and the amount of later annuity.

(e) This section does not apply to an individual appointed to serv as a Governor of the Board of Governors of the United States Post Service.

(f) Notwithstanding the provisions of subsection (a) of this section if an annuitant receiving annuity from the Fund, except a Membe receiving annuity from the Fund, becomes employed as a justice o judge of the United States, as defined by section 451 of title 28, annuit payments are discontinued during such employment and are resume in the same amount upon resignation or retirement from regular activ service as such a justice or judge.

(g) A former employee or a former Member who becomes employe as a justice or judge of the United States, as defined by section 451 c title 28, may, at any time prior to resignation or retirement fro regular active service as such a justice or judge, apply for and b paid, in accordance with section 8342(a) of this title, the amount ( any) by which the lump-sum credit exceeds the total annuity pai notwithstanding the time limitation contained in such section for filin an application for payment. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 58 amended Pub. L. 90–83, § 1(83), Sept. 11, 1967, 81 Stat. 217; Pub. I 91-375, § 6(c) (20), Aug. 12, 1970, 84 Stat. 776, Pub. L. 91-658, § Jan. 8, 1971, 84 Stat. 1962; Pub. L. 92-297, § 7(5), May 16, 1972, 8 Stat. 145; Pub. L. 94–397, § 1, Sept. 3, 1976, 90 Stat. 1202; Pub. 95-454, Oct. 13, 1978, 92 Stat. 1226; Pub. L. 95-598, Nov. 6, 1978, 9 Stat. 2681; Pub. L. 96-179, Jan. 2, 1980, 93 Stat. 1299; Pub. L. 96-50 Dec. 5, 1980, 94 Stat. 2741.)

§ 8345. Payment of benefits; commencement, termination, an waiver of annuity

(a) Each annuity is stated as an annual amount, one-twelfth which, fixed at the nearest dollar, constitutes the monthly rate payab on the first business day of the month after the month or other perio for which it has accrued.

(b) Except as otherwise provided, the annuity of an employee Member commences on the day after he is separated from the servic or on the day after his pay ceases and he meets the service and t age or disability requirements for title to annuity. An annuity payab from the Fund allowed after September 5, 1960, commences on t day after the occurrence of the event on which payment thereof based.

(c) The annuity of a retired employee or Member terminates on t day death or other terminating event provided by this subchapter o