[Code of Federal Regulations]
[Title 5, Volume 2]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR837.701]

[Page 184]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (Continued)
 
PART 837--REEMPLOYMENT OF ANNUITANTS--Table of Contents
 
                         Subpart G--CSRS Offset
 
Sec. 837.701  Offset from supplemental annuity.


    (a) OPM will reduce the supplemental annuity of an individual who 
has performed CSRS-Offset service, if the individual is entitled, or on 
proper application would be entitled, to old-age benefits under title II 
of the Social Security Act.
    (b) The reduction required under paragraph (a) of this section is 
effective on the first day of the month during which the reemployed 
annuitant--
    (1) Is entitled to a supplemental annuity under this part; and
    (2) Is entitled, or on proper application would be entitled, to old-
age benefits under title II of the Social Security Act.
    (c) Subject to paragraphs (d) and (e) of this section, the amount of 
the reduction required under paragraph (a) of this section is the lesser 
of--
    (1) The difference between--
    (i) The social security old-age benefit for the month referred to in 
paragraph (b) of this section; and
    (ii) The old-age benefit that would be payable to the individual for 
the month referred to in paragraph (b) of this section, excluding all 
CSRS-Offset wages as a reemployed annuitant, and assuming the annuitant 
was fully insured (as defined by section 214(a) of the Social Security 
Act); or
    (2) The product of--
    (i) The old-age benefit to which the individual is entitled or 
would, on proper application, be entitled; and
    (ii) A fraction--
    (A) The numerator of which is the annuitant's total CSRS-Offset 
service as a reemployed annuitant, rounded to the nearest whole number 
of years not exceeding 40 years; and
    (B) The denominator of which is 40.
    (d) Cost-of-living adjustments under 5 U.S.C. 8340 occurring after 
the effective date of the reduction required under paragraph (a) of this 
section will be based on only the supplemental annuity remaining after 
reduction under this subpart.
    (e) The amounts for paragraphs (c)(1)(i), (c)(1)(ii), and (c)(2)(i) 
of this section are computed without regard to subsections (b) through 
(1) of section 203 of the Social Security Act (relating to reductions in 
social security benefits), and without applying the provisions of the 
second sentence of section 215(a)(7)(B)(i) or section 215(d)(5)(ii) of 
the Social Security Act (relating to part of the computation of the 
social security windfall elimination provisions).
    (f) OPM will accept the determination of the Social Security 
Administration, submitted in a form prescribed by OPM, concerning 
entitlement to social security benefits and the beginning and ending 
dates thereof.