[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: 5CFR842.505]

[Page 298]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (Continued)
 
PART 842--FEDERAL EMPLOYEES RETIREMENT SYSTEM--BASIC ANNUITY--Table of Contents
 
                      Subpart E--Annuity Supplement
 
Sec. 842.505  Reduction in annuity supplement because of excess earnings.

    (a)(1) Except as provided in paragraphs (a)(2) and (b) of this 
section, the annuity supplement payable under Sec. 842.504 is reduced by 
excess earnings in the test year, divided by twelve.
    (2) Any annuity supplement payable during the year in which an 
individual loses entitlement to the annuity supplement by reason of 
Sec. 842.503(c) is reduced by excess earnings in the test year divided 
by the number of months for which the annuity supplement is payable.
    (b) Any reduction in the annuity supplement during a month because 
of excess earnings may not exceed the amount of annuity supplement 
payable during that month.
    (c) Earnings and estimated earnings for each test year will be 
furnished by retirees in a form prescribed by OPM.
    (d) Failure to furnish earnings and estimated earnings in the form 
or at the times prescribed by OPM is cause to suspend payment of the 
supplement until the annuitant establishes to the satisfaction of OPM 
that he/she continues to be eligible for the supplement.
    (e) The reductions described in paragraphs (a) and (b) of this 
section are not subject to the due process procedures described in 5 
U.S.C. 8461(e).