(a)(1) An individual who makes an election under subsection (b) or (c) of section 8416 or section 8417(b) which is required to be made within 2 years after the date of a prescribed event shall deposit into the Fund an amount determined by the Office (as nearly as may be administratively feasible) to reflect the amount by which the annuity of such individual would have been reduced if the election had been in effect since the date of retirement (or, if later, and in the case of an election under such section 8416(b), since the date the previous reduction in the annuity of such individual was terminated under paragraph (1) or (2) of section 8419(b)), plus interest.
(2) Interest under paragraph (1) shall be computed at the rate of 6 percent a year.
(b) The Office shall, by regulation, provide for payment of the deposit required under subsection (a) by a reduction in the annuity of the employee or Member. The reduction shall, to the extent practicable, be designed so that the present value of the future reduction is actuarially equivalent to the deposit required under subsection (a), except that the total reductions in the annuity of an employee or Member to pay deposits required by this section shall not exceed 25 percent of the annuity computed under section 8415 or section 8452, including adjustments under section 8462. The reduction required by this subsection, which shall be effective at the same time as the election under section 8416(b) and (c) or section 8417(b), shall be permanent and unaffected by any future termination of the marriage or the entitlement of the former spouse. Such reduction shall be independent of and in addition to the reduction required under section 8416(b) and (c) or section 8417(b).
(c) Subsections (a) and (b) shall not apply if—
(1) the employee or Member makes an election under section 8416(b) or (c) after having made an election under section 8420; and
(2) the election under such section 8420 becomes void under subsection (b)(3) or (c)(2) of such section 8416.
(d) The Office shall prescribe regulations under which the survivor of an employee or Member may make a deposit under this section.
(Added Pub. L. 99–335, title I, §101(a), June 6, 1986, 100 Stat. 530; amended Pub. L. 103–66, title XI, §11004(b), Aug. 10, 1993, 107 Stat. 412.)
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Last modified: October 26, 2015