§ 837.701 Offset from supplemental annuity

5 CFR 837.701(a)(a) OPM will reduce the supplemental annuity of an individual who has performed CSRS-Offset 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 837.701(b)(b) The reduction required under paragraph (a) of this section is effective on the first day of the month during which the reemployed annuitant—

5 CFR 837.701(b)(1)(1) Is entitled to a supplemental annuity under this part; and

5 CFR 837.701(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 837.701(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 837.701(c)(1)(1) The difference between—

5 CFR 837.701(c)(1)(i)(i) The social security old-age benefit for the month referred to in paragraph (b) of this section; and

5 CFR 837.701(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 CSRS-Offset wages as a reemployed annuitant, and assuming the annuitant was fully insured (as defined by section 214(a) of the Social Security Act); or

5 CFR 837.701(c)(2)(2) The product of—

5 CFR 837.701(c)(2)(i)(i) The old-age benefit to which the individual is entitled or would, on proper application, be entitled; and

5 CFR 837.701(c)(2)(ii)(ii) A fraction—

5 CFR 837.701(c)(2)(ii)(A)(A) The numerator of which is the annuitant's total CSRS-Offset service as a reemployed annuitant, rounded to the nearest whole number of years not exceeding 40 years; and

5 CFR 837.701(c)(2)(ii)(B)(B) The denominator of which is 40.

5 CFR 837.701(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 supplemental annuity remaining after reduction under this subpart.

5 CFR 837.701(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 (1) of section 203 of the Social Security Act (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 215(d)(5)(ii) of the Social Security Act (relating to part of the computation of the social security windfall elimination provisions).

5 CFR 837.701(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 beginning and ending dates thereof.