computation of annuities

computation of annuities Sec. 505. (a) The heading of part C of title VIII of such Act is amend to read “Computation and Payment of Annuities”. (b) Subsection (a) of section 821 of such Act is amended (1) by striking out the phrase “for which full contributions have been made to the Fund” each time it appears and by striking out the commas immediately preceding and following such phrase the first time it appears, (2) by striking out “, 852”, and (3) by adding the following sentence at the end thereof: “The annuity shall be reduced by 10 per centum of any special contribution described in section 811 (d) due for service for which no contributions were made and remaining unpaid unless the participant elects to eliminate the service involved for purposes of annuity computation.”. (c) Subsection (b) of section 821 of such Act is amended to read as follows: “(b) (1) Unless elected in writing to the contrary at the tune of retirement, any married participant shall receive a reduced annuity and provide a maximum survivor annuity for his or her spouse. Such a participant’s annuity or any portion thereof designated in writing by the participant as the base for the survivor benefit shall be reduced by 2½ per centum of the first $3,600 plus 10 per centum of any amount over $3,600, If an annuitant entitled to receive a reduced annuity under this subsection dies and is survived by a spouse, a survivor annuity shall be paid to the surviving spouse equal to 55 per centum of the full amount of the participant’s annuity computed under subsection (a) of this section, or by 55 per centum of any lesser amount the annuitant designated at the time of retirement as the base for the survivor benefit. “(2) An annuity payable from the Fund to a surviving spouse shall commence on the day after the annuitant dies and shall terminate on the last day of the month before the survivor’s (A) remarriage prior to attaining age sixty, or (B) death. If a survivor annuity is terminated because of remarriage under clause (A) above, it shall be restored at the same rate commencing on the date such remarriage is terminated provided any lump sum paid upon termination of the annuity is returned to the Fund.”. (d) Subsection (d) of section 821 of such Act is amended by adding the following sentence at the end thereof: “If the annuity to a surviving child is initiated or resumed, the annuities of any other children shall be recomputed and paid from that date as though the annuities to all currently eligible children in the family were then being initiated.”. (e) Subsection (e) of section 821 of such Act is amended to read as follows: “(e) The annuity payable to a child under subsection (e) or (d) of this section shall begin on the day after the participant dies or if the child is not then qualified, on the first day of the month in which the child becomes eligible. A child’s annuity shall terminate on the last day of the month which precedes the month in which eligibility ceases.”. (f) Subsection (f) of section 821 of such Act is amended (1) by striking out “50” in the first sentence and inserting in lieu thereof “55”, and (2) by striking out the last two sentences and inserting in lieu thereof the following: “The annuity payable to a beneficiary under90 STAT. 838 the provisions of this subsection shall begin on the day after the annuitant, dies and shall terminate on the last day of the month preceding the survivor’s death.”. (g) Section 821 of such Act is further amended by adding the following new subsections at the end thereof: “(g) An annuitant who was married at retirement and who later marries may, within one year after such marriage, irrevocably elect in writing a reduced annuity with benefit to any surviving spouse who qualities under section 804(2). Receipt by the Secretary of notice of an election under this subsection voids prospectively any election previously made under subsection (f). The reduction in annuity required by an election under this subsection shall be computed and the amount of the survivor annuity shall be determined as if the election were made under subsection (b)(1). The annuity reduction or recomputation shall be effective the first day of the month after notice of the election is received by the Secretary. “(h) A surviving spouse shall not become entitled to a survivor annuity or to the restoration of a survivor annuity payable from the Fund unless the survivor elects to receive it instead of any other survivor annuity to which he or she may be entitled under this or any other retirement system for Government employees. “(i) Any married annuitant, who reverts to retired status with entitlement, to a supplemental annuity under section 871 shall, unless the annuitant elects in writing to the contrary at that time, have the supplemental annuity reduced by 10 per centum to provide a supplemental survivor annuity for his or her spouse. Such supplemental survivor annuity shall be equal to 55 per centum of the annuitant’s supplemental annuity and shall be payable to a surviving spouse to whom the annuitant was married at the time of reversion to retired status or to whom the annuitant had been married for at least two years at the time of death or who is the parent of a child born of the marriage.”.