22 USC 4055 - Lump-sum payments

U.S Code last checked for updates: May 03, 2024

§ 4055.

Lump-sum payments

(a)

Requirements for payment

(1)

A participant is entitled to be paid a lump-sum credit if the participant—

(A)

is separated from the Service for at least 31 consecutive days, or is transferred to a position in which the participant is not subject to this subchapter and remains in such a position for at least 31 consecutive days;

(B)

files an application with the Secretary of State for payment of the lump-sum credit;

(C)

is not reemployed in a position in which the participant is subject to this subchapter at the time the participant files the application;

(D)

will not become eligible to receive an annuity under this part within 31 days after filing the application; and

(E)

has notified any spouse or former spouse the participant may have of the application for payment in accordance with regulations prescribed by the Secretary of State.

Such regulations may provide for waiver of subparagraph (E) under circumstances described in section 4046(b)(1)(D) of this title.

(2)

Such lump-sum credit shall be paid to the participant and to any former spouse of the participant in accordance with subsection (i).

(b)

Recall service; return of contributions

(c)

Difference between annuity and lump-sum credit

(d)

Lack of eligible survivors

(e)

Death of annuitant who was former participant

(f)

Order of precedence for payments

Payments under subsections (c) through (e) shall be paid in the following order of precedence to individuals surviving the participant and alive on the date entitlement to the payment arises, upon the establishment of a valid claim therefor, and such payment shall be a bar to recovery by any other person:

(1)

To the beneficiary or beneficiaries last designated by the participant before or after retirement in a signed and witnessed writing filed with the Secretary of State prior to the death of the participant, for which purpose a designation, change, or cancellation of beneficiary in a will or other document which is not so executed and filed shall have no force or effect.

(2)

If there is no such beneficiary, to the surviving wife or husband of the participant.

(3)

If none of the above, to the child (without regard to the definition in section 4044(2) of this title) or children of the participant (including adopted and natural children but not stepchildren) and descendants of deceased children by representation.

(4)

If none of the above, to the parents of the participant or the survivor of them.

(5)

If none of the above, to the duly appointed executor or administrator of the estate of the participant.

(6)

If none of the above, to such other next of kin of the participant as may be determined in the judgment of the Secretary of State to be legally entitled to such payment, except that no payment shall be made under this paragraph until after the expiration of 30 days after the death of the participant or annuitant.

(g)

Death of survivor annuitant

Annuity accrued and unpaid on the death of a survivor annuitant shall be paid in the following order of precedence, and the payment bars recovery by any other person:

(1)

To the duly appointed executor or administrator of the estate of the survivor annuitant.

(2)

If there is no such executor or administrator, to such person as may be determined by the Secretary of State (after the expiration of 30 days from the date of death of the survivor annuitant) to be entitled under the laws of the domicile of the survivor annuitant at the time of death.

(h)

Amount of credit

(i)

Former spouses

Unless otherwise expressly provided by any spousal agreement or court order under section 4060(b)(1) of this title, the amount of a participant’s or former participant’s lump-sum credit payable to a former spouse of that participant shall be—

(1)

if the former spouse was married to the participant throughout the period of creditable service of the participant, 50 percent of the lump-sum credit to which such participant would be entitled in the absence of this subsection, or

(2)

if such former spouse was not married to the participant throughout such creditable service, an amount equal to such former spouse’s pro rata share of 50 percent of such lump-sum credit.

The lump-sum credit of the participant shall be reduced by the amount of the lump-sum credit payable to the former spouse. For the purposes of this subsection, the term “creditable service” means service which is creditable under part I or II.

(Pub. L. 96–465, title I, § 815, Oct. 17, 1980, 94 Stat. 2116; Pub. L. 99–335, title IV, §§ 402(a)(2), 404(c), 413, June 6, 1986, 100 Stat. 609, 610, 614; Pub. L. 100–238, title II, § 218, Jan. 8, 1988, 101 Stat. 1775.)

cite as: 22 USC 4055