[Code of Federal Regulations] [Title 5, Volume 2] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 5CFR841.413] [Page 265-274] TITLE 5--ADMINISTRATIVE PERSONNEL CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (CONTINUED) PART 841_FEDERAL EMPLOYEES RETIREMENT SYSTEM_GENERAL ADMINISTRATION --Table of Contents Subpart D_Government Costs Sec. 841.413 Determinations of amount due from each agency. (a) For each pay period, each agency will determine the total amount of basic pay paid to employees in each category of employees. (b) For each category of employees, the amount due from each agency for a pay period is the product of-- (1) The total amount of basic pay of employees in that category of employees in that agency; and (2) The normal cost percentage. [51 FR 47187, Dec. 31, 1986, as amended at 52 FR 25196, July 6, 1987] [[Page 266]] Appendix A to Subpart D of Part 841--Table of Normal Cost Percentages ---------------------------------------------------------------------------------------------------------------- Government-wide normal cost percentages effective at the beginning of the first pay period commencing on or after-- Category of employees --------------------------------------------------------------- January 1, October 1, October 1, October 1, 1987 1987 1991 1994 ---------------------------------------------------------------------------------------------------------------- Members......................................... 23.5 20.9 20.8 19.1 Congressional employees......................... 23.8 20.2 20.1 18.2 Law enforcement officers, firefighters, and 31.2 26.7 28.6 25.6 employees under section 302 of the Central Intelligence Agency Act of 1964 for Certain Employees...................................... Air traffic controllers......................... 33.3 28.4 26.2 23.2 Military reserve technicians.................... 16.0 13.7 13.3 12.1 Employees under section 303 of the Central 22.8 19.0 19.1 17.1 Intelligence Agency Act of 1964 for Certain Employees when serving abroad.................. All other employees............................. 16.1 13.8 13.7 12.2 ---------------------------------------------------------------------------------------------------------------- All normal cost percentages in the above table include employee contributions. [59 FR 38101, July 27, 1994] Subpart E_Employee Deductions and Government Contributions Source: 52 FR 2057, Jan. 16, 1987, unless otherwise noted. Sec. 841.501 Purpose. This subpart contains regulations concerning deductions from employees' pay and government contributions for FERS coverage. Sec. 841.502 Definitions. In this subpart-- Employee means employee as defined in Sec. 842.102 of this chapter or Member as defined in section 8401(20) of title 5, United States Code. Employee deduction means the portion of the normal cost of FERS coverage which is deducted from an employee's basic pay. FERS means chapter 84 of title 5, United States Code. Fund means the Civil Service Retirement and Disability Fund. Normal cost percentage or Normal cost means the entryage normal cost of the provisions of FERS which relate to the Fund, computed by the Office in accordance with generally accepted actuarial practice and standards (using dynamic assumptions) and expressed as a level percentage of aggregate basic pay. Normal cost percentage or normal cost include both agency and employee contributions. Social security means old age, survivors and disability insurance under section 3101(a) of the Internal Revenue Code of 1954. Sec. 841.503 Amounts of employee deductions. (a) Except as provided in paragraph (b) of this section, the rate of employee deductions from basic pay for FERS coverage is seven percent of basic pay minus the percent of tax which is (or would be) in effect for the payment, for the employee cost of social security. (b) The rate of employee deductions from basic pay for FERS coverage for a Member, law enforcement officer, firefighter, air traffic controller, Congressional employee, or employee under section 302 of the Central Intelligence Agency Act of 1964 for Certain Employees is seven and one-half percent of basic pay, minus the percent of tax which is (or would be) in effect for the payment, for the employee cost of social security. (c) Employee deductions will be at the rate in paragraph (a) or (b) of this section as if social security deductions were being made even if social security deductions have ceased because of the amount of earnings during the year, or are not made for any other reason. [52 FR 2057, Jan. 16, 1987, as amended at 52 FR 25197, July 6, 1987] Sec. 841.504 Agency responsibilities. (a) Each employing agency is required to contribute the total amount of the normal cost percentage for each [[Page 267]] category of its employees, determined under Sec. 841.413 of this part, to the Fund. (b) Each employing agency must withhold the appropriate amount of employee deductions from the basic pay paid each covered employee for each pay period. No employee deduction is due if an employee receives no basic pay for a pay period. (c) An employing agency must record the appropriate amount of employee deductions on an individual retirement record maintained for each employee in the manner prescribed by OPM. (d) When an employee separates from Federal service or transfers to another agency, or transfers to a position in which he or she is not covered by FERS, the agency must close the employee's Individual Retirement Record (IRR) and forward it to OPM within the time standards prescribed by OPM. However, if an employee transfers to another position covered under FERS-- (1) Within the same agency, and (2) To a position serviced by another payroll office, the agency may, in lieu of forwarding an IRR to OPM at the time of the intra-agency transfer, record the transfer for future IRR certification in an internal automated system of records. (e) An agency must maintain payroll systems and records in such manner as to permit accurate and timely reporting to OPM, in the manner prescribed by OPM. (f) An agency must report the employee deduction and agency contribution amounts for each pay period in the manner prescribed by OPM. (g) An agency must make such other reports of the normal cost, employee deductions and Government contributions amounts as are prescribed and in the manner prescribed by OPM. (h) An agency must remit in full the total amount of normal cost (which includes both employee deductions and Government contributions), so that payment is received by the Fund on the day of payment to the employee of the basic pay from which the employee deductions were made. (i) Upon the death of an employee whose tour of duty is less than full time, the employing agency must certify to OPM-- (1) The number of hours that the employee was entitled to basic pay (whether in a duty or paid-leave status) in the 52-week work year immediately preceding the end of the last pay period in which the employee was in a pay status; and (2) If the employee's tour of duty was part time (regularly scheduled), the number of hours of work in the employee's tour of duty. [52 FR 2057, Jan. 16, 1987, and 52 FR 25196, July 6, 1987, as amended at 53 FR 16535, May 10, 1988; 65 FR 21119, Apr. 20, 2000] Sec. 841.505 Correction of error. (a) When it is determined that an agency has paid less than the correct total amount of the normal cost for any or all of its current or past employees, for any reason whatsoever, including but not limited to, coverage decisions, correction of the percentage applicable or of the amount of basic pay, or additional payment of basic pay, the agency must pay the total additional amount payable under 5 U.S.C. 8423 and subpart D of the this part to the Fund. (b) The agency withholds the appropriate employee deduction from any payment of additional basic pay which is part of, or the result of, the corrective action. (c) The payment to the Fund described in paragraph (a) of this section shall be made as soon as possible, but not later than provided by standards established by OPM, regardless of whether or when the portion which should have been deducted from employee basic pay is recovered by the agency. (d) Any portion of the payment to the Fund described in paragraph (a) of this section which should have been deducted, but was not, from employee basic pay constitutes an overpayment of pay, subject to collection by the agency from the employee, unless waived under applicable authority such as 5 U.S.C. 5584. (e) Corrections and the related agency payments and employee deductions will be reported to OPM in the manner prescribed by OPM. [[Page 268]] Sec. 841.506 Effect of part 772 of this chapter on FERS payments. (a) Agency notification to OPM. (1) When it is determined that a FERS employee is to be given interim relief under 5 U.S.C. 7701(b)(2)(A), the employing agency must notify OPM of the effective date of the interim appointment under Sec. 772.102 of this chapter. The notice must specify that the appointment is required by the Whistleblower Protection Act of 1989. (2) When the MSPB initial decision cancelling the employee's separation becomes final, when the Board issues a final order cancelling the retiree's separation, or when the agency agrees to cancel the separation, the employing agency must notify OPM of the date the interim appointment ends and request the amount of the erroneous payment to be recovered under Sec. 550.805(e) of this chapter from any back pay adjustment to which the employee may be entitled. (b) Employee deductions and normal cost percentage. For the duration of the appointment, the agency will withhold the appropriate employee deduction and contribute the total amount of the normal cost percentage for the employee as prescribed by OPM. If and when a separation action is cancelled, the agency must make the corrections specified under Sec. 841.507 of this subpart. [57 FR 3714, Jan. 31, 1992, as amended at 58 FR 48273, Sept. 15, 1993] Sec. 841.507 Correction of unjustified or unwarranted personnel action. (a) When an ``appropriate authority'' determines that there has been an ``unjustified or unwarranted personnel action'' as these terms are defined in subpart H of part 550 of this title, the employing agency will pay the Fund the amount of the normal cost percentage of the basic pay included in back pay. The normal cost percentage owed the Fund is computed on the amount of gross basic pay without regard to deductions described in Sec. 550.805(e) of this chapter for other amounts earned or erroneous payments received. (b) The agency will withhold the appropriate employee deductions from the amount of basic pay included in gross back pay giving due regard to deductions described in Sec. 550.805(e) of this chapter. (c) The payment to the Fund described in paragraph (a) of this section shall be made within the time period established by OPM standards. (d)(1) Any FERS benefits--lump-sum payments or annuity benefits-- paid based on a separation that is later cancelled are considered erroneous payments that must be repaid to OPM. Agencies must deduct such payments from any back pay adjustment to which the employee may be entitled as required by 5 CFR 550.805(e). (2) Amounts recovered from back pay will not be subject to waiver consideration under 5 U.S.C. 8470(b). If there is no back pay, or the back pay is insufficient to recover the entire erroneous payment, the employee may request that OPM waive recovery of the uncollected portion of the overpayment. If waiver is not granted, the employee must repay the erroneous payment. [52 FR 2057, Jan. 16, 1987. Redesignated and amended at 57 FR 3714, Jan. 31, 1992; 58 FR 43493, Aug. 17, 1993] Sec. 841.508 Effective date. The employee deductions specified in Sec. 841.503 are effective on the later of the first day of the first pay period beginning in 1987 or the first day an employee is covered by FERS. [52 FR 2057, Jan. 16, 1987. Redesignated at 57 FR 3714, Jan. 31, 1992] Subpart F_Computation of Interest Source: 52 FR 12132, Apr. 15, 1987, unless otherwise noted. Sec. 841.601 Purpose. This subpart regulates the computation of interest under the Federal Employees Retirement System (FERS). Sec. 841.602 Definitions. Contributions or deductions means the amounts deducted from an employee's pay or deposited as the employee's share of the cost of FERS. Individual Retirement Record means the record of individual retirement deductions required by Sec. 841.504. [[Page 269]] Last year of service means the calendar year in which deductions stop on the Individual Retirement Record under consideration. Unexpended balance means the unrefunded amount consisting of-- (a) Retirement deductions made from the basic pay of an employee under subpart E of part 841 of this chapter; (b) Amounts deposited by an employee for periods of service (including military service) for which-- (1) No retirement deductions were made; or (2) Deductions were refunded to the employee; and (c) Interest compounded annually on the deductions and deposits at a rate which, for any calendar year, will be equal to the overall average yield to the Civil Service Retirement Fund during the preceding fiscal year from all obligations purchased by the Secretary of the Treasury during that fiscal year under section 8348(c), (d), and (e) of title 5, United States Code, as determined by the Secretary of the Treasury. Interest on deductions and deposits does not include interest-- (1) If the service covered by the deductions totals 1 year or less; or (2) For a fractional part of a month in the total service. Year of the computation means the calendar year when the unexpended balance is being computed. Sec. 841.603 Rate of interest. For calendar year 1985 and for each subsequent calendar year, OPM will publish a notice in the Federal Register to notify the public of the interest rate that will be in effect during that calendar year. Sec. 841.604 Interest on service credit deposits. (a) Interest on civilian service credit deposits is computed under Sec. 842.305 of this chapter. (b) Interest on military service credit deposits is computed under Sec. 842.307 of this chapter. (c) In the case of a retirement coverage error that was corrected under part 839 (pertaining to errors that lasted for at least 3 years of service after December 31, 1986) in which: (1) A CSRS service credit deposit was made; and (2) There is a subsequent retroactive change to FERS, the excess of the amount of the CSRS civilian or military service credit deposit over the FERS civilian or military deposit, together with interest computed under Sec. 842.305 of this chapter, shall be paid to the employee or annuitant. In the case of a deceased employee or annuitant, payment is made to the individual entitled to lump-sum benefits under subpart B of part 843 of this chapter. [52 FR 12132, Apr. 15, 1987, as amended at 57 FR 32155, July 21, 1992; 66 FR 15618, Mar. 19, 2001] Sec. 841.605 Interest included in the unexpended balance. (a) Interest on each Individual Retirement Record is computed separately. (b) For determining the amount of interest in the unexpended balance when none of the employee deductions have been returned (e.g., employee refunds or at the time of retirement), the amount of interest in the unexpended balance equals the sum of the amounts of interest applicable to each calendar year's deductions. The amount of interest on each calendar year's deductions equals the sum of-- (1) For the calendar year in which the deductions were taken-- (i) Except during the last year of service, the amount of the employee's deductions for that calendar year times the rate of interest set under Sec. 841.603 for that calendar year times the fraction whose numerator is the number of full months when deductions were withheld and whose denominator is 24; (ii) During the last year of service, the amount of the employee's deductions for that year times the rate of interest set under Sec. 841.603 for that year times the fraction-- (A) Whose numerator equals the sum of-- (1) One half times the number of months (fractional months rounded up) of that year during which the employee was employed; (2) One for each full month of that year after the employee's service terminated; and (B) Whose denominator is 12. [[Page 270]] (2) For each calendar year after the year when the deductions were withheld but before the calendar year of the computation, the amount of the employee's deductions plus interest for prior years, times the rate of interest set under Sec. 841.603 for that year; and (3) For the year of the computation-- (i) If it is not the same calendar year that the deductions were withheld, the amount of the employee's deductions plus interest for prior years, times the rate of interest set under Sec. 841.603 for that year times the fraction whose numerator is the number of full months that have been completed in the year of the computation and whose denominator is 12; or (ii) If it is the same calendar year that the deductions were withheld, the amount of the employee's deductions for that year times the rate of interest set under Sec. 841.603 for that year times the fraction-- (A) Whose numerator equals the sum of-- (1) One half times the number of months (fractional months rounded up) of that year during which the employee was employed; (2) One for each full month of that year after the employee's service terminated; and (B) Whose denominator is 12. (c)(1) For adding interest to the unexpended balance after retirement, the unexpended balance including interest computed under paragraph (b) of this section is computed as of the time of retirement. (2) Each month after retirement, the unexpended balance is reduced by the amount of annuity paid and interest is added to the remaining portion at the rate computed as follows: (i) Add one to the interest rate under Sec. 841.603 for the current year. (ii) Raise the sum produced under paragraph (c)(2)(i) of this section to the \1/12\ power. (iii) Subtract one from the result of paragraph (c)(2)(ii) of this section to produce the interest rate for the month. (d)(1) Interest on payments of the unexpended balance will be paid for the month unless the payment has been authorized before the 5th workday before the end of the month (excluding the 31st day of 31-day months). (2) For the purposes of paragraph (d)(1) of this section, payment is authorized when the person with authority to approve the claim approves payment. Sec. 841.606 Interest on survivor reduction deposits. Interest on deposits under subpart F of part 842 of this chapter is compounded annually and accrued monthly. (a) The initial interest on each monthly difference between the reduced annuity rate and the annuity rate actually paid equals the amount of the monthly difference times the difference between-- (1) One and six tenths raised to the power whose numerator is the number of months between the date when the monthly difference in annuity rates occurred and the date when the initial interest is computed and whose denominator is 12; and (2) One. (b) The total initial interest due is the sum of all of the initial interest on each monthly difference computed in accordance with paragraph (a) of this section. (c) Additional interest on any uncollected balance will be compounded annually and accrued monthly. The additional interest due each month equals the remaining balance due times the difference between-- (1) One and six tenths raised to the \1/12\ power; and (2) One. Sec. 841.607 Interest on overpayment debts. Interest on overpayment debts is computed under Sec. 845.205(b). Subpart G_Cost-of-Living Adjustments Source: 55 FR 14229, Apr. 17, 1990, unless otherwise noted. Sec. 841.701 Purpose and scope. (a) The purpose of this subpart is to regulate computation of cost- of-living adjustments (COLA's) for basic benefits [[Page 271]] under the Federal Employees Retirement System (FERS). (b) This subpart provides the methodology for-- (1) Computing COLA's on each type of FERS basic benefit subject to COLA's; and (2) Computing COLA's on annuities partially computed under FERS and partially computed under the Civil Service Retirement System (CSRS). (c) COLA's on children's annuities are not covered by this subpart because COLA's on children's annuities are computed under CSRS rules. Sec. 841.702 Definitions. In this subpart-- Annuity supplement means the benefit under subpart E of part 842 of this chapter. An annuity supplement is only payable to retirees. Basic annuity means the benefits computed under subpart D of part 842 of this chapter and payable to retirees. Basic employee death benefit means the basic employee death benefit as defined in Sec. 843.102 of this chapter. Beneficiary of insurable interest annuity means a person receiving a recurring benefit under FERS that is payable (after the employee's, Members, or retiree's death) to a person designated to receive such an annuity under Sec. 842.605 of this chapter. COLA means a cost-of-living adjustment. Combined CSRS/FERS annuity means the recurring benefit with a CSRS component and a FERS component. A ``combined CSRS/FERS annuity'' is only payable to a retiree who as an employee elected to transfer to FERS under part 846 of this chapter, who at the time of transfer had at least 5 years of service creditable under CSRS (excluding service that was subject to both social security and partial CSRS deductions), and who was covered by FERS for at least 1 month. CSRS means the Civil Service Retirement System as described in subchapter III of chapter 83 of title 5, United States Code. CSRS component means the portion of a combined CSRS/FERS annuity that is computed under CSRS rules. Current spouse annuity means a current spouse annuity as defined in Sec. 842.602 of this chapter. Disability retiree means a retiree who retired under part 844 of this chapter. Effective date means the date annuities increased by a COLA begin to accrue at the higher rate. FERS means the Federal Employees Retirement System as defined in chapter 84 of title 5, United States Code. FERS component means the portion of a combined CSRS/FERS annuity computed under FERS rules. Former spouse annuity means a former spouse annuity as defined in Sec. 842.602 of this chapter. Initial monthly rate means the monthly annuity rate that a retiree (other than a disability retiree) is entitled to receive at the time of retirement (as defined in Sec. 842.602 of this chapter). Percentage change means the percent change in the price index as defined in section 8462(a)(2) of title 5, United States Code. Retiree means a retiree as defined in Sec. 842.602 of this chapter. Survivor means a person receiving a current spouse annuity or a former spouse annuity, or the beneficiary of an insurable interest annuity. As used in this subpart, ``survivor'' does not include a child annuitant. Survivor supplement means the recurring benefit payable to a survivor under Sec. 843.308 of this chapter. Sec. 841.703 Increases on basic annuities and survivor annuities. (a) Except as provided in Sec. Sec. 841.704, 841.706, and 841.707, and paragraph (e) of this section, COLA's on basic annuities and survivor annuities are the greater of-- (1) One dollar per month; or (2)(i) If the percentage change is less than 2 percent, the percentage change; (ii) If the percentage change is at least 2 percent and not greater than 3 percent, 2 percent; and (iii) If the percentage change exceeds 3 percent, 1 percentage point less than the percentage change. (b) After survivor annuities commence, they are subject to COLA's computed under paragraph (a) of this section, even if they are based on a [[Page 272]] basic employee annuity that includes a CSRS component. (c) COLA's apply to basic annuities (not to annuity supplements), survivor annuities, and survivor supplements. (d) COLA's do not apply for annuitants who are under age 62 as of the effective date, except-- (1) Survivors; (2) Disability retirees (other than disability retirees whose benefits is based on 60% of high-3 average salary); (3) Retirees who retired under Sec. 842.208 of this chapter (the special provisions for law enforcement officers and firefighters); (4) Retirees who retired under Sec. 842.207 of this chapter (the special provision for air traffic controllers); (5) Retirees who retired under Sec. 842.210 of this chapter (the special provision for military reserve technicians who ceased satisfying the requirements of their position) due to a disability. (e)(1) Except as provided in paragraph (e)(2) of this section, COLA's are not payable to disability retirees during the first year. (2) COLA's are payable to disability retirees during the first year if the annuity rate payable is the retiree's earned benefit or the annuity is redetermined because the retiree has reached age 62. (3) After the first year, both the disability benefit and the social security offset (it any) are increased by COLA's. Disability retirees' earned benefits also increase with COLA's, even when earned benefits are not paid. After application of the COLA, the greater of the increased 40 percent benefit offset by social security or the increased earned benefit is paid until the annuity is redetermined at age 62. After age 62, the redetermined annuity is paid. (f) COLA's are payable to retirees and survivors whose annuities commence before the effective date. Sec. 841.704 Proration of COLA's. (a) The full amounts of COLA's are payable on annuities having a commencing date more than 11 months before the effective date. (b)(1) Prorated portions of COLA's are payable of annuities having a commencing date within 11 months before the effective date. (2) Proration is based on the number of months (with any portion of a month counting as a month) between the annuity commencing date and the effective date. (3) For survivors of deceased retirees, proration is determined by the date the annuity was first payable to the deceased retiree. (4) Proration applied to the assume social security disability insurance benefit is based on the commencing date of the disability annuity, not the beginning of the social security disability benefit. Sec. 841.705 Increases on basic employee death benefits. (a) COLA's on the basic employee death benefit increase the $15,000 component by the percentage change. (b) Recipients of the basic employee death benefit are entitled to COLA's if the employee or Member died on or after the effective date. Sec. 841.706 Increases on combined CSRS/FERS annuities. (a) COLA's on combined CSRS/FERS annuities are computed by increasing the CSRS component by the percentage change and the FERS component by the amount of COLA's under Sec. 841.703(a). (b) The initial monthly rate is computed by-- (1) Applying CSRS rules to CSRS service to obtain the annual rate of the self-only annuity (as defined in Sec. 831.603 of this chapter) based on the CSRS service; then (2) Applying FERS rules to FERS service to obtain the annual rate of annuity determined under Sec. Sec. 842.403, 842.405, 842.406, or 842.407 of this chapter based on the FERS service; then (3) Making any applicable FERS reductions for age and/or survivor benefits to the amounts computed under paragraphs (b)(1) and (b)(2) of this section; then (4) Dividing the sum of the reduced amounts computed under paragraph (b)(3) of this section by 12; then (5) Dropping any cents. (c) The initial monthly CSRS component is computed by-- (1) Applying CSRS rules to CSRS service to obtain the annual rate of the [[Page 273]] self-only annuity (as defined in Sec. 831.603 of this chapter) based on the CSRS service; then (2) Making any applicable FERS reductions for age and/or survivor benefits; then (3) Dividing the annual amount by 12; then (4) Dropping any cents. (d) The initial monthly FERS component is computed by subtracting the initial monthly CSRS component from the initial monthly rate. (e) A retiree who was covered under FERS for at least one month has a FERS component. If the amount of the FERS component as computed under paragraph (d) of this section is zero (because the CSRS component is equal to the monthly rate, leaving no balance for the FERS component), the FERS component is $1 per month. The retiree is due a full dollar increase on the FERS component with the next COLA. An employee with less than a month of FERS service has no FERS component and is not due any FERS COLA's. (f) COLA's are determined by applying the appropriate increase to each component and rounding to the next lower dollar (each component must increase by at least one dollar if a COLA applies to each component) before adding them together for the new monthly amount payable. Sec. 841.707 COLA's affecting computation of survivor supplements. For purposes of computing the assumed CSRS annunity under Sec. 843.308 of this chapter, the assumed CSRS annuity includes COLA's computed under CSRS rules. Sec. 841.708 Special provisions affecting retired military reserve technicians. (a) Military reserve technicians who retire as a result of a medical disability are excepted from the bar against COLA increases for retirees under age 62. (b) Military reserve technicians have retired as a result of a medical disability if they retire under-- (1) Section 8451(a)(1)(B) of title 5, United States Code (allowing retirement by military reserve technicians who are medically disabled for their positions); or (2) Section 8456 of title 5, United States Code (allowing retirement by military reserve technicians who are not disabled for their positions and who are not eligible under the special military technician discontinued service provisions (section 8414(c)) but who are medically disqualified for military service or the rank required to hold their positions). (c)(1) Military reserve technicians have not retired as a result of a medical disability if they retire under section 8414(c) of title 5, United States Code (allowing retirement by military reserve technicians who may not be disabled for their positions, but are medically or nonmedically disqualified for military service or the rank required to hold the position, and who are at least age 50 with 25 years of service), unless they provide OPM official documentation showing that their disqualification was for medical reasons. (2) When OPM receives no information about the reason for the disqualification of a military reserve technician retiring under section 8414(c) of title 5, United States Code, OPM will process the case assuming that the disqualification was for nonmedical reasons. OPM will inform these retirees that they will not receive COLA's until they reach age 62 unless they provide an official certification from the military showing that their disqualification was for medical reasons. Subpart H_Waiver of Benefits Source: 52 FR 2058, Jan. 16, 1987, unless otherwise noted. Sec. 841.801 Purpose. This subpart regulates the statutory provision on waiver of annuity benefits under the Federal Employees' Retirement System. Sec. 841.802 Definitions. As used in this subpart-- Annuitant means a person receiving or who is entitled and has made application to receive retirement or survivor benefits under subchapter II, IV, or V of chapter 84 of title 5, United States Code. [[Page 274]] Annuity means the gross monthly annuity rate payable before any authorized deductions (such as those for health benefits and life insurance premiums). Qualifying court order means a court order acceptable for processing as defined in Sec. 838.103 of this chapter or a qualifying court order as defined in Sec. 838.1003 of this chapter. Waiver means an annuitant's written request to forfeit a specified amount of annuity as described in this subpart. [52 FR 2058, Jan. 16, 1987, as amended at 57 FR 33598, July 29, 1992] Sec. 841.803 Waiver of annuity. (a) An annuitant may decline to accept all or any part of the amount of his or her annuity by a waiver signed and filed with the Office of Personnel Management (OPM). (b) A waiver is effective the first day of the month following the month in which it is received in OPM, unless a later effective date is specified by the annuitant. (c) A waiver remains in effect until revoked or changed by the annuitant in writing, except as provided in paragraph (f) of this section. The effective date of a revocation or change will be the first day of the month following the month in which the request to revoke or change is received in OPM, unless a later date is specified by the annuitant. (d) The amount of annuity that is waived is forfeited during the period the waiver is in effect and cannot be recovered. (e) An annuity which has a waiver in effect will not be increased by cost-of-living adjustments (COLA) authorized under 5 U.S.C. 8462. Upon cancellation of a waiver, the rate of annuity will be increased by any COLA authorized during the period a waiver was in effect. (f) Upon the death of an annuitant with a waiver in effect, any survivor annuity payable will be authorized at the full rate of annuity as though the waiver had not been in effect, unless the survivor annuitant executes a waiver. Sec. 841.804 Waivers and court orders. The effect of a qualifying court order on a waiver is controlled by Sec. 838.111(c) of this chapter. [52 FR 2058, Jan. 16, 1987, as amended at 57 FR 33598, July 29, 1992] Subpart I [Reserved]