Page:United States Statutes at Large Volume 100 Part 1.djvu/582

 100 STAT. 546

26 USC 72. 5 USC 8434.

Regulations.

PUBLIC LAW 99-335—JUNE 6, 1986

"(1) the employee, Member, former employee, or former Member becomes 65 years of age; "(2) occurs the tenth anniversary of the year in which the employee, Member, former employee, or former Member became subject to this subchapter; or "(3) the employee, Member, former employee, or former Member separates from Government employment. "(i)(l) At any time after December 31, 1987, and before separation, an employee or Member may apply to the Board for permission to borrow from the employee's or Member's account an amount not exceeding the value of that portion of such account which is attributable to contributions made by the employee or Member under section 8432(a) of this title. "(2) An application under this subsection may be approved only for— "(A) the purchase of a primary residence; "(B) educational expenses; "(C) medical expenses; or "(D) financial hardship. "(3) Loans under this subsection shall be subject to such conditions as the Board may prescribe consistent with section 408(b)(l) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)(1)). The conditions shall be included in regulations issued by the Executive Director. "(4) A loan may not be made under this subsection to the extent that the loan would be treated as a taxable distribution under section 72(p) of the Internal Revenue Code of 1954. "(5) A loan may not be made under this subsection unless the requirements of section 8435(0 of this title are satisfied. "§ 8434. Annuities: methods of payment; election; purchase "(a)(1) The Board shall prescribe methods of payment of annuities under this subchapter. "(2) The methods of payment prescribed under paragraph (1) shall include, but not be limited to— "(A) a method which provides for the payment of a monthly annuity only to an annuitant during the life of the annuitant; "(B) a method which provides for the payment of a monthly annuity to an annuitant for the joint lives of the annuitant and the spouse of the annuitant and an appropriate monthly annuity to the one of them who survives the other of them for the life of the survivor; "(C) a method described in subparagraph (A) which provides annual increases in the amount of the annuity payable; "(D) a method described in subparagraph (B) which provides annual increases in the amount of the annuity payable; and "(E) a method which provides for the payment of a monthly annuity— (i) to the annuitant for the joint lives of the annuitant and an individual who is designated by the annuitant under regulations prescribed by the Executive Director and (I) is a former spouse of the annuitant, or (II) has an insurable interest in the annuitant; and "(ii) to the one of them who survives the other of them for the life of the survivor. "(b) Subject to section 8435(c) of this title, under such regulations as the Executive Director shall prescribe, an employee, Member,

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