Page:United States Statutes at Large Volume 100 Part 1.djvu/568

 100 STAT. 532

PUBLIC LAW 99-335—JUNE 6, 1986 "(B) a current spouse to whom the employee or Member was married at the time of retirement and with respect to whom a survivor annuity was not waived under section 8416(a) (or, if waived, with respect to whom an election under section 8416(d) has been made); or "(C) a current spouse whom the employee or Member married after retirement and with respect to whom an election has been made under subsection (b) or (c) of section 8416.

5 USC 8420.

5 USC 8420a. Regulations.

"§ 8420. Insurable interest reductions "(a)(1) At the time of retiring under section 8412, 8413, or 8414, an employee or Member who is found to be in good health by the Office may elect to have such employee's or Member's annuity (as computed under section 8415) reduced under paragraph (2) in order to provide an annuity under section 8444 for an individual having an insurable interest in the employee or Member. Such individual shall be designated by the employee or Member in writing. "(2) 'The annuity of the employee or Member making the election is reduced by 10 percent, and by 5 percent for each full 5 years the individual named is younger than the retiring employee or Member, except that the total reduction may not exceed 40 percent. "(3) An annuity which is reduced under this subsection shall, effective the first day of the month following the death of the individual named under this subsection, be recomputed and paid as if the annuity had not been so reduced. "(b)(1) In the case of a married employee or Member, an election under this section on behalf of the spouse may be made only if any right of such spouse to a survivor annuity based on the service of such employee or Member is waived in accordance with section 8416(a). "(2) Paragraph (1) does not apply in the case of an employee or Member if such employee or Member has a former spouse who would become entitled to an annuity under section 8445 as a survivor of such employee or Member. "§ 8420a. Alternative forms of annuities "(a) The Office shall prescribe regulations under which an employee or Member may, at the time of retiring under this subchapter, elect annuity benefits under this section instead of any other benefits under this subchapter, and any benefits under subchapter IV of this chapter, based on the service of the employee or Member. "(b) Subject to subsection (c), the Office shall by regulation provide for such alternative forms of annuities as the Office considers appropriate, except that among the alternatives offered shall be— "(1) an alternative which provides for— "(A) payment of the lump-sum credit (excluding interest) to the employee or Member; and "(B) payment of an annuity to the employee or Member for life; and "(2) in the case of an employee or Member who is married at the time of retirement, an alternative which provides for— "(A) payment of the lump-sum credit (excluding interest) to the employee or Member; and "(B) payment of an annuity to the employee or Member for life, with a survivor annuity payable for the life of a surviving spouse.

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