INTEREST ON REFUNDS OF CERTAIN EXCESS CONTRIBUTIONS BY INDIVIDUALS MAKING ELECTIONS UNDER TITLE III OF THE FEDERAL EMPLOYEES’ RETIREMENT SYSTEM ACT OF 1986.

SEC. 119 INTEREST ON REFUNDS OF CERTAIN EXCESS CONTRIBUTIONS BY INDIVIDUALS MAKING ELECTIONS UNDER TITLE III OF THE FEDERAL EMPLOYEES’ RETIREMENT SYSTEM ACT OF 1986. (a) For Individuals Electing FERS Coverage.— Section 302(c)(2) of the Federal Employees’ Retirement System Act of 1986 (Public Law 99–335; 100 Stat. 605), as amended by section 302(a) of the Federal Employees’ Retirement System Technical Corrections Act of 1986 (Public Law 99–556; 100 Stat. 3136), is amended to read as follows: “(2) In accordance with regulations prescribed by the Office of Personnel Management, a refund under this subsection shall be payable upon written application therefor filed with the Office and shall include interest at the rate provided in section 8334(e)(3) of title 5, United States Code. Interest on the refund shall accrue monthly and shall be compounded annually.”. (b) For Individuals Electing Coverage Under CSRS With Off-sets for Social Security.—The last sentence of section 303(a) of the Federal Employees’ Retirement System Act of 1986 (Public Law 99–335; 100 Stat. 605), as added by section 302(b) of the Federal Employees’ Retirement System Technical Corrections Act of 1986 (Public Law 99–556; 100 Stat. 3136), is amended to read as follows: “A refund under this subsection shall be computed with interest in accordance with section 302(c)(2) and regulations prescribed by the Office of Personnel Management.”.