5 C.F.R. Subpart C—Procedures for Elections Under the Retroactive Provisions
Title 5 - Administrative Personnel
This subpart establishes the procedures applicable to elections section 1043(c)(2) of the National Defense Authorization Act for Fiscal Year 1996. The employing agency must provide notice to all eligible employees of the opportunity to elect to continue retirement coverage under subpart D of this part. Failure to provide notice to the employee is justification for waiving the time limit under §847.304. (a) Eligible employees may make an election under subpart D of this part on a form prescribed by OPM and filed with the employing agency. (b) For elections of retirement coverage under subpart D of this part, the election form will require that the employee obtain a certification from his or her previous retirement system showing dates of service, amounts transferable from the previous retirement system to the elected retirement system under subpart E of this part, and that the employee became vested in the retirement system. If an employee was covered by more than one retirement system, he or she must obtain certification from each retirement system. (a) Except as provided in paragraph (b) of this section, the time limit for making an election under subpart D of this part is August 11, 1997. (b) Because Public Law 104–106 requires that eligible employees receive timely notice of the opportunity to make the election under subpart D of this part, and that employees must be counseled concerning the election opportunity, the employing agency must waive the time limit in paragraph (a) of this section in the event that an employee did not receive such notice or counselling. (a) Agencies must establish and maintain retirement accounts for employees subject to CSRS or FERS in the manner prescribed by OPM. (b) The individual retirement record (Standard Form 2806 for CSRS, or Standard Form 3100 for FERS) is the basic record for action on all claims for annuity or refund, and those pertaining to deceased employees and annuitants.
Title 5: Administrative Personnel
PART 847—ELECTIONS OF RETIREMENT COVERAGE BY CURRENT AND FORMER EMPLOYEES OF NONAPPROPRIATED FUND INSTRUMENTALITIES
Subpart C—Procedures for Elections Under the Retroactive Provisions
§ 847.301 Purpose and scope.
§ 847.302 Notice of election rights.
§ 847.303 Election forms.
§ 847.304 Time limit.
§ 847.305 Basic records.
Subpart D—Elections of Coverage Under the Retroactive Provisions
General Provisions
§ 847.401 Purpose and scope.
This subpart contains OPM's regulations concerning the types of elections available, the eligibility requirements for each type of election, the effects of an election on CSRS and FERS coverage during future employment, and the effective dates of CSRS and FERS coverage applicable to retroactive retirement coverage and credit elections under section 1043(c)(2) of the National Defense Authorization Act for Fiscal Year 1996.
§ 847.402 Definition of qualifying move.
(a) A qualifying move occurring after December 31, 1965, and before August 10, 1996, which would allow an employee the opportunity to elect to continue retirement coverage under CSRS or FERS retroactive to the date of the move must meet all the following criteria:
(1)(i) For moves occurring before February 10, 1996, the employee must not have had a prior opportunity to elect to continue CSRS, FERS, or NAFI retirement coverage under §847.202(e) or (f);
(ii) For moves occurring on or after February 10, 1996, the employee must not have made an election under §847.202(e) or (f);
(2) The employee must have been vested in CSRS or FERS prior to the move to a NAFI;
(3) The employee must have moved from a position covered by CSRS or FERS to a retirement-covered position in a NAFI;
(4) The employee must have begun employment in a retirement-covered position in a NAFI no later than 1 year after separation from CSRS- or FERS-covered employment; and
(5) The employee must, since moving to the NAFI position, have continuously participated in a retirement system established for NAFI employees, disregarding any break in service of not more than 3 days.
(b) A qualifying move occurring after December 31, 1965, and before August 10, 1996, which would allow an employee the opportunity to elect to continue retirement coverage under a NAFI retirement system retroactive to the date of the qualifying move must meet all the following criteria:
(1)(i) For moves occurring before February 10, 1996, the employee must not have had a prior opportunity to elect to continue CSRS, FERS, or NAFI retirement coverage under §847.202(e) or (f);
(ii) For moves occurring on or after February 10, 1996, the employee must not have made an election under §847.202(e) or (f);
(2) The employee must have been a vested participant in the NAFI retirement system (as the term “vested participant” is defined by that retirement system) prior to the move to a FERS-covered position;
(3) The employee must have moved from a NAFI to a civil service position subject to FERS coverage or CSRS/SS coverage, as defined in §846.102 of this chapter, followed by the employee's automatic conversion to FERS coverage;
(4) The employee must have been appointed to a FERS-covered position no later than 1 year after separation from retirement-covered NAFI employment; and
(5) The employee must, since moving to the FERS position, have been continuously covered by FERS, disregarding any break in service of not more than 3 days.
(c) A move from a NAFI to CSRS, including CSRS/SS as defined under §846.102 of this chapter followed by an election of FERS coverage under §846.201 of this chapter, is not a qualifying move for an election of retirement coverage under §847.431 (pertaining to elections of NAFI service credit for FERS service) and §847.441 (pertaining to elections of NAFI retirement coverage).
(d) A qualifying move under paragraphs (a) and (b) of this section is considered to occur on the date the individual entered into the new position, not at the time of separation from the prior position.
[61 FR 41721, Aug. 9, 1996, as amended at 68 FR 2180, Jan. 16, 2003]
Elections of CSRS or FERS Coverage Based on a Move From CSRS or FERS to NAFI
§ 847.411 Election requirements.
(a) An employee who completed a qualifying move under §847.402(a) may elect to be covered by CSRS, if the qualifying move was from a CSRS-covered position, or FERS, if the qualifying move was from a FERS-covered position, for all Federal service following the qualifying move. Employees who elect to be covered by CSRS will be prospectively covered by the CSRS Offset provisions set out in subpart J of part 831 of this chapter.
(b) A survivor eligible for benefits under the NAFI retirement system which covered an employee at the time of death may make an election under this section if the employee was otherwise eligible to make an election, but died before expiration of the time limit under §847.304.
§ 847.412 Elections of FERS instead of CSRS.
(a) An employee who elects CSRS coverage under §847.411(a) may, during the 6-month period beginning on the date the election under §847.411(a) is filed with the employing agency, elect to become subject to FERS.
(b) An election of FERS under this section is subject to the provisions of part 846 of this subchapter and takes effect on the first day of the first pay period after the employing agency receives the election.
§ 847.413 Effective date of an election.
(a) An election under §847.411 is effective on the first day of NAFI employment subject to retirement coverage following CSRS- or FERS-covered employment.
(b) Deductions and contributions for CSRS or FERS coverage under §831.111 or §841.501 of this chapter begin effective on the first day of the next pay period after the agency receives the employee's election under §847.411(a).
(c) An election under §847.411 is irrevocable when received by the employing agency.
(d) NAFI service performed on and after the effective date of an election under §847.411 becomes fully creditable for retirement eligibility and computation of the annuity benefit, including computation of average pay.
§ 847.414 Crediting future NAFI service.
An employee who elects CSRS or FERS coverage under §847.411 will be covered by CSRS or FERS during all periods of future service not excluded from coverage by CSRS or FERS, including any periods of service with a NAFI and service as a reemployed annuitant.
§ 847.415 OASDI coverage.
An employee who elects CSRS coverage under §847.411 is prospectively subject to both the Old Age, Survivors, and Disability Insurance (OASDI) tax and CSRS as described in subpart J of part 831 of this chapter, known as CSRS Offset, effective from the first day of the next pay period after the employing agency receives the employee's election under §847.411(a).
§ 847.416 Credit for refunded FERS service.
(a) An employee or survivor who elects FERS coverage under §847.411 will receive credit in the FERS annuity for the service represented by any refund of the unexpended balance under §843.202 of this chapter.
(b) The amount of the refund, increased by interest as computed under §842.305(e) of this chapter, will be added to the deficiency computed under §847.604 and collected in accordance with the provisions of §847.609 (pertaining to a monthly reduction in the annuity benefit).
Elections to Remain in FERS Coverage With Credit for NAFI Service Based on a Move From NAFI to FERS
§ 847.421 Election requirements.
(a)(1)(i) A FERS employee who completed a qualifying move under §847.402(b) may, instead of the election provided by §847.441 (pertaining to elections of NAFI retirement coverage), elect to remain subject to FERS for all subsequent periods of service.
(ii) Prior service under a NAFI retirement system becomes creditable under FERS rules without regard to whether a refund of contributions for such period has been paid by the NAFI retirement system.
(2) A FERS employee who has had a previous opportunity to elect retirement coverage under §847.202(e) or (f) is not excluded from making this election.
(b) A survivor may make an election under paragraph (a) of this section if the employee was otherwise eligible to elect FERS coverage and FERS service credit, but died before expiration of the time limit under §847.304.
(c) NAFI service made creditable under FERS by an election under this section become creditable for FERS retirement eligibility and FERS annuity computation, including average pay, upon receipt of the election by the employing agency.
(d) A election under this section is irrevocable when received by the employing agency.
[61 FR 41721, Aug. 9, 1996, as amended at 68 FR 2180, Jan. 16, 2003]
§ 847.422 Crediting future NAFI service.
An employee who elects to remain in FERS coverage with credit for NAFI service under §847.421(a) will be covered by FERS during all periods of future service not excluded from coverage by FERS, including any periods of service with a NAFI and service as a reemployed annuitant.
§ 847.423 Credit for refunded FERS service.
(a) An employee or survivor who elects FERS coverage with credit for NAFI service under §847.421 will receive credit in the FERS annuity for the service represented by any refund of the unexpended balance under §843.202 of this chapter.
(b) The amount of the refund, increased by interest as computed under §842.305(e) of this chapter, will be added to the deficiency computed under §847.604 and collected in accordance with the provisions of §847.609 (pertaining to a monthly reduction in the annuity benefit).
Elections To Remain in NAFI Coverage With Credit for FERS Service Based on a Move From FERS to NAFI
§ 847.431 Election requirements.
(a)(1)(i) A NAFI employee who completed a qualifying move from FERS under §847.402(a) may, instead of the election provided by §847.411 (pertaining to elections of CSRS and FERS coverage), elect to remain subject to the current NAFI retirement system for all subsequent periods of service.
(ii) Prior service under FERS becomes credible under the NAFI retirement system rules.
(2) An NAFI employee who has had a previous opportunity to elect retirement coverage under §847.202(e) or (f) is not excluded from making this election.
(b) A survivor may make an election under paragraph (a) of this section if the employee was otherwise eligible, but died before expiration of the time limit under §847.304.
(c) An election under this section is irrevocable when received by the employing agency.
[61 FR 41721, Aug. 9, 1996, as amended at 68 FR 2180, Jan. 16, 2003]
§ 847.432 Effect of a refund of FERS deductions.
OPM will inform the NAFI retirement system of the amount of service performed under FERS, without regard to whether a refund of contributions for such period has been paid under FERS.
§ 847.433 Exclusion from FERS for future service.
(a) An employee who elects NAFI retirement system coverage with credit for FERS service under §847.431(a) is excluded from coverage under FERS during that and all subsequent periods of employment, including any periods of service as a reemployed annuitant.
(b) FERS service which becomes creditable in a NAFI retirement benefit based on an election under §847.431 is not creditable for any purpose under FERS.
Elections of NAFI Coverage Based on a Move From NAFI to FERS
§ 847.441 Election requirements.
(a) An employee who completed a qualifying move under §847.402(b) may elect to be covered by a NAFI retirement system for all Federal service following the qualifying move.
(b) A survivor eligible for benefits under FERS may make an election under this section if the employee was otherwise eligible to make an election, but died before expiration of the time limit under §847.304.
§ 847.442 Effective date.
(a) An election under §847.441 is effective on the first day of FERS-covered employment following NAFI employment subject to retirement coverage.
(b) Deductions and contributions for NAFI retirement system coverage begin effective on the first day of the next pay period after the agency receives the employee's election under §847.441(a).
(c) An election under §847.441 is irrevocable when received by the employing agency.
§ 847.443 Exclusion from FERS for future service.
An employee who elects NAFI retirement system coverage with credit for FERS service under §847.441(a) is excluded from coverage under FERS during that and all subsequent periods of employment, including any periods of service as a reemployed annuitant.
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