TITLE 5 - ADMINISTRATIVE PERSONNEL

CHAPTER I - OFFICE OF PERSONNEL MANAGEMENT

SUBCHAPTER B - CIVIL SERVICE REGULATIONS

PART 847 - ELECTIONS OF RETIREMENT COVERAGE BY CURRENT AND FORMER EMPLOYEES OF NONAPPROPRIATED FUND INSTRUMENTALITIES

subpart i - COMPUTING THE RETIREMENT ANNUITY FOR EMPLOYEES WHO ELECT TO USE NAFI SERVICE TO QUALIFY FOR AN IMMEDIATE CSRS OR FERS RETIREMENT

847.912 - If an employee who elects to credit NAFI service under subpart H of this part elects a survivor annuity will the monthly survivor annuity rate be subject to reduction?

  (a) The monthly survivor annuity benefit of an employee who elects to credit NAFI service under subpart H of this part will be subject to reduction.

  (b) The reduction under paragraph (a) of this section equals: (1) The difference in the present value of the initial survivor annuity generated from the immediate annuity computation with credit for NAFI service and the initial survivor annuity generated from the deferred annuity computation without credit for NAFI service, divided by (2) The present value factor for the retiree's age (in full years) at the time of retirement.

  (c) The present value of the survivor annuity generated from the immediate annuity with credit for NAFI service in paragraph (b)(1) of this section is computed under the provisions of 847.905 of this subpart.

  (d) The present value of the initial survivor annuity generated from the deferred annuity without credit for NAFI service in paragraph (b)(1) of this section is computed under the provisions of 847.906 of this subpart.

  (e) The ages of the employee as of the commencing date of the immediate retirement and the commencing date of the deferred retirement are used to compute the present value of the survivor benefits under paragraphs (c) and (d) of this section.