§ 847.604 Methodology for determining deficiency

5 CFR 847.604(a)(a) When an event listed in the left column of the table in Appendix A to this subpart occurs, OPM will compute the deficiency, as follows:

5 CFR 847.604(a)(1)(1) As of the date of computation under § 847.603, OPM will determine—

5 CFR 847.604(a)(1)(i)(i) The present value of the annuity including credit for the NAFI service under § 847.605;

5 CFR 847.604(a)(1)(ii)(ii) The present value of the annuity without credit for the NAFI service under § 847.606 or § 847.607, as applicable; and

5 CFR 847.604(a)(1)(iii)(iii) The amount credited to the employee from a transfer to the Fund under subpart E of this part including earnings under § 847.507.

5 CFR 847.604(a)(2)(2) OPM will add the amount determined under paragraphs (a)(1)(ii) and (iii) of this section and subtract that sum from the amount determined under paragraph (a)(1)(i) of this section.

5 CFR 847.604(b)(b) If the amount determined under paragraph (a)(2) of this section is greater than zero, the deficiency is equal to that amount.

5 CFR 847.604(c)(c) If no event listed in the left column of the table in Appendix A to this subpart occurs—that is, the additional service credit does not cause an increase in an employee annuity or a survivor annuity actually paid—or, if the amount determined under paragraph (a)(2) of this section is less than or equal to zero, the deficiency equals zero.