[Code of Federal Regulations]
[Title 5, Volume 2, Parts 700 to 1199]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR831.303]

[Page 93-94]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (Continued)
 
PART 831--RETIREMENT--Table of Contents
 
                      Subpart C--Credit for Service
 
Sec. 831.303  Civilian service.

    (a) Periods of civilian service performed before October 1, 1982, 
for which retirement deductions have not been taken. Periods of 
creditable civilian service performed by an employee or Member after 
July 31, 1920, but before October 1, 1982, for which retirement 
deductions have not been taken shall be included in determining length 
of service to compute annuity under subchapter III of chapter 83 of 
title 5, United States Code; however, if the employee, Member, or 
survivor does not elect either to complete the deposit describes by 
section 8334(c) of title 5, United States Code, or to eliminate the 
service from annuity computation, his or her annuity is reduced by 10 
percent of the amount which should have been deposited (plus interest) 
for the period of noncontributory service.
    (b) Periods of service for which refunded deductions have not been 
redeposited, and periods of civilian service performed on or after 
October 1, 1982, for which retirement deductions have not been taken. 
Except as provided in paragraph (c) of this section, a period of service 
for which refunded deductions have not been redeposited, and a period of 
creditable civilian service performed by an employee or Member on or 
after October 1, 1982, for which retirement deductions have not been 
taken, shall be included in determining length of service to compute the 
annuity under subchapter III of chapter 83 of title 5, United States 
Code, only if--
    (1) The employee or Member subsequently becomes eligible for an 
annuity payable under subchapter III of chapter 83 of title 5, United 
States Code; and

[[Page 94]]

    (2) The employee, Member, or survivor makes a deposit (or redeposit) 
for the full period of service. If more than one distinct period of 
service is covered by a single refund, the periods of service covered by 
that refund are considered to be single full periods of service. 
However, in all other instances, a distinct period of nondeduction 
civilian service (i.e., a period of nondeduction service that is not 
interrupted by a break in service of more than three days) and a 
distinct period of redeposit civilian service (i.e., a period of 
redeposit service that is not interrupted by a break in service of more 
than three days) are considered as separate full periods of service, 
even when they are immediately consecutive. A period of nondeduction 
service which begins before October 1, 1982, and ends on or after that 
date is also considered two full periods of service: one ending on 
September 30, 1982, and the other beginning on October 1, 1982.
    (c)(1) An employee or Member who has not completed payment of a 
redeposit for refunded deductions based on a period of service that 
ended before October 1, 1990, will receive credit for that service in 
computing the nondisability annuity for which the individual is eligible 
under subchapter III of chapter 83 of title 5, United States Code, 
provided the nondisability annuity commences after December 1, 1990.
    (2) The beginning monthly rate of annuity payable to a retiree whose 
annuity includes service credited in accordance with paragraph (c)(1) of 
this section will be reduced by an amount equal to the redeposit owed, 
or unpaid balance thereof, divided by the present value factor for the 
retiree's attained age (in full years) at the time of retirement. The 
reduced monthly rate will then be rounded down to the next lower dollar 
amount and becomes the rate of annuity payable.
    (3) For the purpose of paragraph (b)(2) of this section, the terms 
``present value factor'' and ``time of retirement'' have the same 
meaning as in Sec. 831.2202.

[48 FR 38785, Aug. 26, 1983, as amended at 56 FR 6550, Feb. 19, 1991]