§ 831.1005 Offset from nondisability annuity

5 CFR 831.1005(a)(a) OPM will reduce the annuity of an individual who has performed Federal service, if the individual is entitled, or on proper application would be entitled, to old-age benefits under title II of the Social Security Act.

5 CFR 831.1005(b)(b) The reduction required under paragraph (a) of this section is effective on the 1st day of the month during which the employee—

5 CFR 831.1005(b)(1)(1) Is entitled to an annuity under CSRS; and

5 CFR 831.1005(b)(2)(2) Is entitled, or on proper application would be entitled, to old-age benefits under title II of the Social Security Act.

5 CFR 831.1005(c)(c) Subject to paragraphs (d) and (e) of this section, the amount of the reduction required under paragraph (a) of this section is the lesser of—

5 CFR 831.1005(c)(1)(1) The difference between—

5 CFR 831.1005(c)(1)(i)(i) The Social Security old-age benefit for the month referred to in paragraph (b) of this section; and

5 CFR 831.1005(c)(1)(ii)(ii) The old-age benefit that would be payable to the individual for the month referred to in paragraph (b) of this section, excluding all wages from Federal service, and assuming the annuitant was fully insured (as defined by section 215(a) of the Social Security Act (42 U.S.C. 414(a)); or

5 CFR 831.1005(c)(2)(2) The product of—

5 CFR 831.1005(c)(2)(i)(i) The old-age benefit to which the individual is entitled or would, on proper application, be entitled; and

5 CFR 831.1005(c)(2)(ii)(ii) A fraction—

5 CFR 831.1005(c)(2)(ii)(A)(A) The numerator of which is the annuitant's total Federal service, rounded to the nearest whole number of years not exceeding 40 years; and

5 CFR 831.1005(c)(2)(ii)(B)(B) The denominator of which is 40.

5 CFR 831.1005(d)(d) Cost-of-living adjustments under 5 U.S.C. 8340 occurring after the effective date of the reduction required under paragraph (a) of this section will be based on only the annuity remaining after reduction under this subpart.

5 CFR 831.1005(e)(e) The amounts for paragraphs (c)(1)(i), (c)(1)(ii), and (c)(2)(i) of this section are computed without regard to subsections (b) through (l) of section 203 of the Social Security Act (42 U.S.C. 403) (relating to reductions in Social Security benefits), and without applying the provisions of the second sentence of section 215(a)(7)(B)(i) or section 214(d)(5)(ii) of the Social Security Act (42 U.S.C. 415(a)(7)(B)(i) or 415(d)(5)(ii) (relating to part of the computation of the Social Security windfall elimination provisions).

5 CFR 831.1005(f)(f) OPM will accept the determination of the Social Security Administration, submitted in a form prescribed by OPM, concerning entitlement to Social Security benefits and the date thereof.