A bill to clarify the application of section 8344 of title 5, United States Code, relating to civil service annuities and pay upon reemployment, and for other purposes.
PL 94-397 (H.R.3650), enacted 09/03/1976

90 STAT. 1202 
PUBLIC LAW 94-397—SEPT. 3, 1976 
Public Law 94-397 
94th Congress 
Sept. 3, 1976 
[H.R. 3650] 
Civil service 
annuities. 
Reemployed 
annuitants. 
5 use 5551. 
5 use 8331. 
5 use 8339. 
Survivor annuity 
payments. 
5 use 8341. 
An Act 
5 use 8334. 
To clarify the application of section 8344 of title 5, United States Code, relating 
to civil service annuities and pay upon reemployment, and for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress a^sembled^ That (a) section 
8344(a) of title 5, United States Code, is amended to read as follows: 
"(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 sep-
aration (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 subsec-
tion (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 de-
posited 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 cov-
erage 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), 
and (i) of this title as may apply based on the period of employ-
ment 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 sec-
tion 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 in-
crease payable under such subparagraph (A), the annuitant notifies 
the Commission in writing that he does not desire the survivor annuity 
to be increased. If the annuitant dies while still reemployed, the sur-
vivor annuity payable is increased as though the reemployment had 
otherwise terminated. If the described employment of the annuitant 
continues for at least 5 years, or the equivalent of 5 years in the case 
of part-time employment, he may elect, instead of the benefit provided 
by subparagraph (A) of this subsection, to deposit in the Fund an 
amount computed under section 8334(c) of this title covering that 
employment and have his rights redetermined under this subchapter. 
PUBLIC LAW 94-397—SEPT. 3, 1976 
90 STAT. 1203 
If the annuitant dies while still reemployed and the described employ-
ment had continued for at least 5 years, or the equivalent of 5 years 
in the case of part-time employment, the person entitled to survivor 
annuity under section 8341(b) of this title may elect to deposit in the 
Fund and have his rights redetermined under this subchapter.". 
(b) Section 8344 of title 5, United States Code, is amended— 
(1) by redesignating subsections (b) and (c) thereof as sub-
sections (d) and (e), respectively; and 
(2) by inserting immediately after subsection (a) thereof the 
following new subsections: 
"(b) If an annuitant, other than a Member receiving an annuity 
from the Fund, whose annuity is based on an involuntary separation 
(other than an automatic separation or an involuntary separation for 
cause or charges on misconduct or delinquency) is reemployed in a 
position in which he is subject to this subchapter, payment of the 
annuity terminates on reemployment. 
"(c) If an annuitant, other than a Member receiving an annuity 
from the Fund, is appointed by the President to a position in which he 
is subject to this subchapter, payment of the annuity terminates on 
reemployment.''. 
(c) Section 8344(d) of title 5, United States Code, as redesignated 
by this Act, is amended by striking out the last sentence. 
(d) Section 8339(f)(2)(C) of title 5, United States Code, is 
amended by striking out "8344(b) (1)" and inserting in lieu thereof 
"8344(d)(1)". 
SEC. 2. (a) Except as provided under subsection (b) of this section, 
the amendments made by this Act shall become effective on the date of 
the enactment of this Act or October 1, 1976, whichever is later, and 
shall apply to annuitants serving in appointive or elective positions on 
and after such date. 
(b) The amendment made by subsection (c) of the first section of 
this Act shall become effective on the date of the enactment of this 
Act or October 1, 1976, whichever is later, but shall not apply to any 
annuitant reemployed before such date. 
Approved September 3, 1976. 
5 use 8341. 
Effective date. 
5 u s e 8344 note. 
Effective date. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 94-336 (Comm. on Post Office and Civil Service). 
SENATE REPORTS: No. 94-877 (Comm. on Post Office and Civil Service) and No. 
94-1030 (Comm. on Appropriations). 
CONGRESSIONAL RECORD: 
Vol. 121 (1975): July 21, considered and passed House. 
Vol. 122 (1976): Aug. 9, considered and passed Senate, amended. 
Aug. 25, House concurred in Senate amendments.