[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: 5CFR842.308]

[Page 293-294]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (CONTINUED)
 
PART 842_FEDERAL EMPLOYEES RETIREMENT SYSTEM_BASIC ANNUITY--Table of Contents
 
                      Subpart C_Credit for Service
 
Sec. 842.308  Refunds of deductions and service credit deposits made 
before becoming subject to FERS.

    (a) An employee or Member who, while currently employed, is eligible 
under 5 U.S.C. 8342(a) for a refund of deductions or deposits (relating 
to civilian service performed before becoming subject to FERS and 
totaling less than 5 years, not counting service after 1983 that was 
covered simultaneously by both CSRS and social security) that were 
previously made for a period of service performed before becoming 
subject to FERS is eligible for a refund, upon proper application in a 
form prescribed by OPM. The amount of this refund is the difference 
between--
    (1) The amount of deductions and deposits to his or her credit for 
such service, plus any interest computed in accordance with 5 U.S.C. 
8331(8): and
    (2) The amount of the deposit required for such service under Sec. 
842.305.
    (b) A former employee or Member who is eligible under 5 U.S.C. 
8342(a) for a refund of deductions or deposits covering civilian service 
of the types described in paragraph (a) of this section is eligible for 
a refund, upon proper application in a form prescribed by OPM.

[[Page 294]]

The individual may irrevocably elect a refund, with resepct to this 
service, of either--
    (1) The amount provided under paragraph (a) of this section; or
    (2) The full amount of deductions and deposits to his or her credit 
for such service, plus any interest computed in accordance with 5 U.S.C. 
8331(8). If the full amount of deductions and deposits is elected by the 
former employee or Member, no future deposit for the service may be 
made.
    (c) An employee or Member, who, before becoming subject to FERS, 
made a deposit for military service is eligible upon proper application 
in a form prescribed by OPM, while currently employed, for a refund of 
the amount deposited, excluding interest, to the extent that this amount 
exceeds the amount of the deposit required for such service under Sec. 
842.307.
    (d) A former employee or Member who, before becoming subject to 
FERS, made a deposit for military service is eligible for a refund, upon 
proper application in a form prescribed by OPM. The former employee or 
Member may irrevocably elect to receive either--
    (1) The amount provided under paragraph (c) of this section; or
    (2) The full amount deposited and remaining to the individual's 
credit. If the full amount of the deposit is elected, no future deposit 
for the service may be made.
    (e) If the current employing agency holds all necessary records 
pertaining to the amounts in question under paragraph (a) or (c) of this 
section, the current employing agency will pay the refund in accordance 
with OPM instructions. Otherwise, OPM will pay the refund.