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January 21, 1976

Honorable Thomas A. Tinsley

In Re: CSA 977240

interest credited and the cost-of-living increases provided for congressional retirees in the interim.

At the time of my retirement, with deferred annuity payments, I elected the plan of reduced annuity with benefit to my widow.

Please advise me as to any further action necessary, on my part, and if there is a required formal application, please send me the appropriate form for this purpose.

Your immediate attention to this matter would be very greatly appreciated.

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This refers to your claim for annuity due to your separation from the
House of Representatives on February 2, 1966.

You have been awarded an annuity of $1169 per month commencing February 3, 1966. Your wife, Ruth, is entitled to $700 per month if she survives you.

Since you are now serving in an appointative position, the law requires that we discontinue payment of the annuity. Upon separation from the Federal Judiciary, you should contact this Bureau in regard to benefits payable.

Your health benefits enrollment has been transferred to the Administrative Office, U.S. Courts. That office will withhold your share of the cost of the plan from your salary.

Sincerely yours,

George A. Babel

Chief of Section

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Your letter of March 1, 1966 to Mr. Babel, requesting further information relative to your retirement under the Civil Service Retirement Act, has been referred to this office for reply.

The reason why your present salary payments are not subject to withholdings for life insurance coverage under the Federal Employees' Group Life Insurance Act is attributable to your retired status under the Civil Service Retirement Act. As a retired Member of Congress, section 13(c) of the Retirement Act, 5 U.S.C. 2263(c), requires discontinuance of annuity payments to you during your employment in your present appointive position. Under this provision, you retain title to your civil service annuity, with payment of the annuity merely being suspended, and your life insurance coverage only (not accidental death and dismemberment coverage) under the Insurance Act continues without cost to you as a retired employee. While coverage after retirement operates without further contribution by the retiree or the Government, the face amount of life insurance held on the date of separation for retirement is subject to a reduction of 2% a month starting from the second calendar month after retirement or after the retiree attains age 65, whichever is later. The 2% monthly reduction stops after a maximum of 75% has been applied, that is, when the insurance has reached 25% of the amount in force at retirement.

Should you become inactive either by disability or retirement as a Federal Judge, you would be eligible to receive both your civil service retirement annuity and your retirement "salary" under the judicial retirement provisions. On the other hand, should your wife predecease you and you die without having received any annuity payments, or should annuity payments to you during your lifetime, or to your wife, or to both of you, terminate before your lump-sum credit in the retirement fund (retirement deductions plus applicable interest thereon) is exhausted, the unexpended balance will be paid in accordance with the order of precedence prescribed In section 11(c) of the Retirement Act, 5 U.S.C. 2261(c), to such person

or persons specified therein who survive you and are alive on the date title to the payment arises. The order of precedence set forth in this section of the Act reads as follows:

"First, to the beneficiary or beneficiaries designated by the
employee or Member in a writing received in the Commission
prior to his death;

Second, if there be no such 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 other next of kin of the employee
or Member as may be determined by the Commission to be entitled
under the laws of the domicile of the individual at the time of
his death."

As may be seen from the foregoing, you may control disposition of any lumpsum death benefit due under the Retirement Act by filing a designation of beneficiary in favor of your estate or otherwise. A designation of beneficiary form for this purpose is enclosed should you care to use it. However, your file now contains a valid designation in favor of your wife, Ruth. In connection with the potential civil service survivor annuity to your wife, Ruth, we contacted the Administrative Office of the United States Courts and were told that your Member service may also be credited under the Judicial Survivors Annuity Act in the event that you elect to participate under that Act. If you make deposit for the Member service under that Act and leave a qualified survivor, the service will have to be so credited. If you do not make the deposit but have deductions in the Judicial Survivors Annuity System covering 5 years of judicial service at time of your death, your qualified survivor will have a choice; she may forego survivor annuity under the Retirement Act and have your Member service counted toward judicial survivors annuity (with benefit reduced by 10% of the unpaid deposit), or she may have the service counted under the Retirement Act and draw the survivor annuities payable under both acts. Should all of your Member service be credited under the JSA System (either by reason of deductions and deposit under that plan, or by election of your widow) there would be no service remaining creditable under the Retirement Act as the base for survivor annuity. In that event there would be due a final lump-sum settlement of your lump-sum credit in the retirement fund under the aforementioned order of precedence.

Any questions which you may have concerning your retirement rights as a judge of the United States or concerning your participation in the Judicial Survivors Annuity System should be directed to the Administrative Office of the United States Courts, as that office is vested with the administration of benefits under these plans.

Sincerely yours,

Richval M. Corly

Richard M. Cody
Technical Advisor

Enclosure

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