‘‘(e) Under such procedures as the Director may pre-
scribe, a phased retiree may elect to enter full retirement 
status at any time. Upon making such an election, a 
phased retiree shall be entitled to a composite retirement 
annuity. 
‘‘(f)(1) Except as provided otherwise under this sub-
section, a composite retirement annuity is a single annuity 
computed under regulations prescribed by the Director, 
equal to the sum of— 
‘‘(A) the amount of the phased retirement an-
nuity as of the date of full retirement, including any 
adjustments made under section 8462; and 
‘‘(B) the product obtained by multiplying— 
‘‘(i) the amount of an annuity computed 
under section 8412 that would have been pay-
able at the time of full retirement if the indi-
vidual had not elected a phased retirement and 
as if the individual was employed on a full-time 
basis in the position occupied during the phased 
retirement period and before any adjustment to 
provide for a survivor annuity; by 
‘‘(ii) the working percentage. 
‘‘(2) After computing a composite retirement annuity 
under paragraph (1), the Director shall adjust the amount 
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of the annuity for any applicable reductions for a survivor 
annuity. 
‘‘(3) A composite retirement annuity shall be ad-
justed in accordance with section 8462, except that sub-
section (c)(1) of that section shall not apply. 
‘‘(4) In computing a composite retirement annuity 
under paragraph (1)(B)(i), the unused sick leave to the 
credit of a phased retiree at the time of entry into full 
retirement status shall be adjusted by dividing the number 
of hours of unused sick leave by the working percentage. 
‘‘(g)(1) Under such procedures and conditions as the 
Director may provide, and with the concurrence of the 
head of employing agency, a phased retiree may elect to 
terminate phased retirement status and return to a full- 
time work schedule. 
‘‘(2) Upon entering a full-time work schedule based 
on an election under paragraph (1), the phased retirement 
annuity of a phased retiree shall terminate. 
‘‘(3) After termination of the phased retirement an-
nuity under this subsection, the individual’s rights under 
this chapter shall be determined based on the law in effect 
at the time of any subsequent separation from service. For 
purposes of this chapter, at the time of the subsequent 
separation from service, the phased retirement period shall 
be treated as if it had been a period of part-time employ-
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ment with the work schedule described in subsection 
(b)(2). 
‘‘(h) For purposes of subchapter IV— 
‘‘(1) the death of a phased retiree shall be 
deemed to be the death in service of an employee; 
‘‘(2) 
except 
for 
purposes 
of 
section 
8442(b)(1)(A)(i), the phased retirement period shall 
be deemed to have been a period of part-time em-
ployment with the work schedule described in sub-
section (b)(2) of this section; and 
‘‘(3) for purposes of section 8442(b)(1)(A)(i), 
the phased retiree shall be deemed to have been at 
the full-time rate of pay for the position occupied. 
‘‘(i) Employment of a phased retiree shall not be 
deemed to be part-time career employment, as defined in 
section 3401(2). 
‘‘(j) A phased retiree is not eligible to receive an an-
nuity supplement under section 8421. 
‘‘(k) For purposes of subchapter III, a phased retiree 
shall be deemed to be an employee. 
‘‘(l) For purposes of section 8445(d), retirement shall 
be deemed to occur on the date on which a phased retiree 
enters into full retirement status. 
‘‘(m) A phased retiree is not eligible to apply for an 
annuity under subchapter V. 
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‘‘(n) A phased retiree is not subject to section 8468. 
‘‘(o) For purposes of chapter 87, a phased retiree 
shall be deemed to be receiving basic pay at the rate of 
a full-time employee in the position to which the phased 
retiree is appointed.’’; and 
(2) in the table of sections by inserting after 
the item relating to section 8412 the following: 
‘‘8412a. Phased retirement.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the effective date of the 
implementing regulations issued by the Director of the Of-
fice of Personnel Management. 
Æ 
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