Robert R. McGill's: Federal Disability Retirement - 5 U.S.C. § 8452 Computation of Disability Annuity (FERS).

5 U.S.C. § 8452 Computation of Disability Annuity
Title 5 - Part 3 - Chapter 84: Federal Employees' Retirement System
(a)(1)(A) Except as provided in paragraph (2), or subsection 
(b), (c), or (d), the annuity of an annuitant under this 
subchapter--

        (i) for the period beginning on the date on which such 
    annuity commences, or is restored (as described in section 
    8455(b)(2) or (3)), and ending at the end of the twelfth 
    month beginning on or after such date, shall be equal to 
    60 percent of the annuitant's average pay; and

        (ii) after the end of the period referred to in clause 
    (i), shall be equal to 40 percent of the annuitant's average 
    pay.
    (B) An annuity computed under this paragraph--

        (i) shall not, during any period referred to in sub-
    paragraph 
    (A)(i), be adjusted under section 8462; but

        (ii) shall, after the end of any period referred to in 
    subparagraph (A)(i), be adjusted to reflect all adjustments 
    made under section 8462(b) after the end of the period 
    referred to in subparagraph (A)(i), whether the amount ac-
    tually payable to the annuitant under this section in any 
    month is determined under this subsection or otherwise.

    (2)(A) For any month in which an annuitant is entitled both 
    to an annuity under this subchapter as computed under para-
    graph (1) and to a disability insurance benefit under sec-
    tion 223 of the Social Security Act, the annuitant's annuity 
    for such month (as so computed) shall-- 

        (i) if such month occurs during a period referred to in 
    paragraph (1)(A)(i), be reduced by 100 percent of the annui-
    tant's assumed disability insurance benefit for such month; 
    or

        (ii) if such month occurs other than during a period 
    referred to in paragraph (1)(A)(i), be reduced by 60 percent 
    of the annuitant's assumed disability insurance benefit for 
    such month;

except that an annuity may not be reduced below zero by reason 
of this paragraph.
    (B)(i) For purposes of this paragraph, the assumed disabi-
lity insurance benefit of an annuitant for any month shall be 
equal to--

        (I) the amount of the disability insurance benefit to 
    which the annuitant is entitled under section 223 of the 
    Social Security Act for the month in which the annuity un-
    der this subchapter commences, or is restored, or, if no 
    entitlement to such disability insurance benefits exists 
    for such month, the first month thereafter for which the 
    annuitant is entitled both to an annuity under this sub-
    chapter and disability insurance benefits under section 
    223 of the Social Security Act, adjusted by 

        (II) all adjustments made under section 8462(b) after 
    the end of the period referred to in paragraph (1)(A)(i) 
    (or, if later, after the end of the month preceding the 
    first month for which the annuitant is entitled both to 
    an annuity under this subchapter and disability insurance
    benefits under section 223 of the Social Security Act) and 
    before the start of the month involved (without regard to 
    whether the annuitant's annuity was affected by any of 
    those adjustments).

    (ii) For purposes of applying section 224 of the Social 
    Security Act to the assumed disability insurance benefit 
    used to compute the reduction under this paragraph, the 
    amount of the annuity under this subchapter which is 
    considered shall be the amount of the annuity as determined 
    before the application of this paragraph.

    (3) Section 8462 shall apply with respect to amounts under 
    this subsection only as provided in paragraphs (1) and (2).

    (b)(1) Except as provided in subsection (d), if an annui-
tant is entitled to an annuity under this subchapter as of the 
day before the date of the sixty-second anniversary of the 
annuitant's birth (hereinafter in this section referred to as 
the annuitant's ``redetermination date''), such annuity shall 
be redetermined by the Office in accordance with paragraph (2). 
Effective as of the annuitant's redetermination date, the 
annuity (as so redetermined) shall be in lieu of any annuity 
to which such annuitant would otherwise be entitled under 
this subchapter.

    (2)(A) An annuity redetermined under this subsection shall 
be equal to the amount of the annuity to which the annuitant 
would be entitled under section 8415, taking into account the 
provisions of subparagraph (B).

    (B) In performing a computation under this paragraph--

        (i) creditable service of an annuitant shall be 
    increased by including any period (or periods) before 
    the annuitant's redetermination date during which the 
    annuitant was entitled to an annuity under this 
    subchapter; and

        (ii) the average pay which would otherwise be used 
    shall be adjusted to reflect all adjustments made under 
    section 8462(b) with respect to any period (or periods) 
    referred to in clause (i)(without regard to whether the 
    annuitant's annuity was affected by any of those 
    adjustments).

    (c) Except as provided in subsection (d), the annuity of 
an annuitant under this subchapter shall be computed under 
section 8415 
if--
        (1) such annuity commences, or is restored, beginning 
    on or after the redetermination date of the annuitant; or
        (2) as of the day on which such annuity commences, or 
    is restored, the annuitant satisfies the age and service 
    requirements for entitlement to an annuity under section 
    8412 (other than subsection (g) of such section).

    (d)(1) The annuity to which an annuitant is entitled under
    this section (after the reduction under subsection (a)(2), 
if applicable, has been made) shall not be less than the amo-
unt of an annuity computed under section 8415 (excluding sub-
section (f) of such section).

    (2) In applying this subsection with respect to any annui-
tant, the amount of an annuity so computed under section 8415 
shall be adjusted under section 8462 (including subsection (c) 
thereof)--

        (A) to the same extent, and otherwise in the same ma-
    nner, as if it were an annuity-- 

            (i) subject to adjustment under such section; and

            (ii) with a commencement date coinciding with the 
        date the annuitant's annuity commenced or was restored 
        under this subchapter, as the case may be; and

        (B) whether the amount actually payable to the annui-
    tant under this section in any month is determined under 
    this subsection or otherwise.


(Added Pub. L. 99-335, title I, Sec. 101(a), June 6, 1986, 
100 Stat. 566; amended Pub. L. 99-556, title I, Secs. 104, 
106, Oct. 27, 1986, 100 Stat. 3131, 3132; Pub. L. 100-238, 
title I, Sec. 122(a)-(c), Jan. 8, 1988, 101 Stat. 1753, 
1754.)

                       References in Text

    Sections 223 and 224 of the Social Security Act, referred 
to in subsec. (a)(2), are classified to sections 423 and 424a, 
respectively, of Title 42, The Public Health and Welfare.


                               Amendments

    1988--Subsec. (a)(1)(B). Pub. L. 100-238, Sec. 122(c)(2)
(A), amended subpar. (B) generally. Prior to amendment, subpar. 
(B) read as follows: ``An annuity computed under this paragraph 
shall not, for purposes of any adjustment under section 8462 
(including any adjustment under subsection (c)(1) of such 
section), be considered to have commenced until after such 
annuity ceases to be determined under subparagraph (A)(i).''

    Subsec. (a)(2)(B)(i). Pub. L. 100-238, Sec. 122(a), 
amended cl. (i) generally. Prior to amendment, cl. (i) read as 
follows: ``For purposes of this paragraph, the assumed dis-
ability insurance benefit of an annuitant for any month shall 
be equal to--
        ``(I) the amount of the disability insurance benefit 
    to which the annuitant would have been entitled under sec-
    tion 223 of the Social Security Act for the month in which 
    the annuity under this subchapter commenced, or was res-
    tored, determined as if such annuitant had then satisfied 
    all requirements for entitlement to a benefit under such 
    section, adjusted by

        ``(II) all adjustments made under section 8462(b) 
    between the date on which the annuity commenced, or was 
    restored, and the start of the month involved (without 
    regard to whether the annuitant's annuity was affected 
    by any of those adjustments).
    For purposes of computing the assumed disability insurance 
    benefit, the month in which the annuitant's disability be-
    gan (as determined under section 216(i)(2)(C) of the Social 
    Security Act) shall be the month in which the annuity com-
    menced or, if earlier (and if a determination was actually 
    made) the month determined under such section.''  Subsec. 
    (a)(3). Pub. L. 100-238, Sec. 122(c)(2)(B), added par. (3).
    Subsec. (b). Pub. L. 100-238, Sec. 122(b), amended subsec. 
    (b) generally, substituting pars. (1) and (2) for former 
    pars. (1) to (4).Subsec. (d). Pub. L. 100-238, Sec. 122(c)
    (1), designated existing provisions as par. (1) and added 
    par. (2). 1986--Subsec. (b)(3). Pub. L. 99-556, Sec. 106, 
    substituted ``(a)(1)(A)(i)'' for ``(a)(1)(A)'' in second 
    sentence. Subsec. (d). Pub. L. 99-556, Sec. 104, inserted 
    ``(after the reduction under subsection (a)(2), if appli-
    cable, has been made)''.


                    Effective Date of 1988 Amendment

    Section 122(d) of Pub. L. 100-238 provided that: ``The 
amendments made by this section [amending this section] shall 
be effective as of January 1, 1987, as if they had been enac-
ted as part of the Federal Employees' Retirement System Act 
of 1986 (Public Law 99-335; 100 Stat. 514 and following).''

                  Section Referred to in Other Sections

    This section is referred to in sections 8415, 8418, 8419,
8442, 8451, 8455, 8462 of this title; title 22 section 4071d.
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