[Code of Federal Regulations]
[Title 5, Volume 2]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR841.606]

[Page 277]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (CONTINUED)
 
PART 841_FEDERAL EMPLOYEES RETIREMENT SYSTEM_GENERAL ADMINISTRATION--Table of 
 
                    Subpart F_Computation of Interest
 
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.