28 U.S.C. § 377 : US Code - Section 377: Retirement of bankruptcy judges and magistrate judges

Search 28 U.S.C. § 377 : US Code - Section 377: Retirement of bankruptcy judges and magistrate judges

(a) Retirement Based on Years of Service. - A bankruptcy judge or
magistrate judge to whom this section applies and who retires from
office after attaining the age of 65 years and serving at least 14
years, whether continuously or otherwise, as such bankruptcy judge
or magistrate judge shall, subject to subsection (f), be entitled
to receive, during the remainder of the judge's or magistrate
judge's lifetime, an annuity equal to the salary being received at
the time the judge or magistrate judge leaves office.
(b) Retirement Upon Failure of Reappointment. - A bankruptcy
judge or magistrate judge to whom this section applies, who is not
reappointed following the expiration of the term of office of such
judge or magistrate judge, and who retires upon the completion of
the term shall, subject to subsection (f), be entitled to receive,
upon attaining the age of 65 years and during the remainder of such
bankruptcy judge's or magistrate judge's lifetime, an annuity equal
to that portion of the salary being received at the time the judge
or magistrate judge leaves office which the aggregate number of
years of service, not to exceed 14, bears to 14, if -
(1) such judge or magistrate judge has served at least 1 full
term as a bankruptcy judge or magistrate judge, and
(2) not earlier than 9 months before the date on which the term
of office of such judge or magistrate judge expires, and not
later than 6 months before such date, such judge or magistrate
judge notified the appointing authority in writing that such
judge or magistrate judge was willing to accept reappointment to
the position in which such judge or magistrate judge was serving.
For purposes of this subsection, in the case of a bankruptcy judge,
the written notice required by paragraph (2) shall be given to the
chief judge of the circuit in which such bankruptcy judge is
serving and, in the case of a magistrate judge, such notice shall
be given to the chief judge of the district court in which the
magistrate judge is serving.
(c) Service of at Least 8 Years. - A bankruptcy judge or
magistrate judge to whom this section applies and who retires after
serving at least 8 years, whether continuously or otherwise, as
such a bankruptcy judge or magistrate judge shall, subject to
subsection (f), be entitled to receive, upon attaining the age of
65 years and during the remainder of the judge's or magistrate
judge's lifetime, an annuity equal to that portion of the salary
being received at the time the judge or magistrate judge leaves
office which the aggregate number of years of service, not to
exceed 14, bears to 14. Such annuity shall be reduced by 1/6 of 1
percent for each full month such bankruptcy judge or magistrate
judge was under the age of 65 at the time the judge or magistrate
judge left office, except that such reduction shall not exceed 20
percent.
(d) Retirement for Disability. - A bankruptcy judge or magistrate
judge to whom this section applies, who has served at least 5
years, whether continuously or otherwise, as such a bankruptcy
judge or magistrate judge, and who retires or is removed from
office upon the sole ground of mental or physical disability shall,
subject to subsection (f), be entitled to receive, during the
remainder of the judge's or magistrate judge's lifetime, an annuity
equal to 40 percent of the salary being received at the time of
retirement or removal or, in the case of a judge or magistrate
judge who has served for at least 10 years, an amount equal to that
proportion of the salary being received at the time of retirement
or removal which the aggregate number of years of service, not to
exceed 14, bears to 14.
(e) Cost-of-Living Adjustments. - A bankruptcy judge or
magistrate judge who is entitled to an annuity under this section
is also entitled to a cost-of-living adjustment in such annuity,
calculated and payable in the same manner as adjustments under
section 8340(b) of title 5, except that any such annuity, as
increased under this subsection, may not exceed the salary then
payable for the position from which the judge or magistrate judge
retired or was removed.
(f) Election; Annuity in Lieu of Other Annuities. - A bankruptcy
judge or magistrate judge shall be entitled to an annuity under
this section if the judge or magistrate judge elects an annuity
under this section by notifying the Director of the Administrative
Office of the United States Courts. A bankruptcy judge or
magistrate judge who elects to receive an annuity under this
section shall not be entitled to receive (!1)
(1) any annuity to which such judge or magistrate judge would
otherwise have been entitled under subchapter III of chapter 83,
or under chapter 84 (except for subchapters III and VII), of
title 5, for service performed as such a judge or magistrate
judge or otherwise;
(2) an annuity or salary in senior status or retirement under
section 371 or 372 of this title;
(3) retired pay under section 7447 of the Internal Revenue Code
of 1986; or
(4) retired pay under section 7296 of title 38.
(g) Calculation of Service. - (1) For purposes of calculating an
annuity under this section -
(A) full-time service as a bankruptcy judge or magistrate judge
to whom this section applies may be credited; and
(B) each month of service shall be credited as one-twelfth of a
year, and the fractional part of any month shall not be credited.
(2)(A) In the case of an individual who is a bankruptcy judge to
whom this section applies and who retires under this section or who
is removed from office under subsection (d) upon the sole ground of
mental or physical disability, any service of that individual as a
United States magistrate judge to whom this section applies, and
any service of that individual as a full-time judicial officer who
performed the duties of a magistrate judge and a bankruptcy judge
at the same time, shall be included for purposes of calculating
years of service under subsection (a), (b), (c), or (d), as the
case may be.
(B) In the case of an individual who is a magistrate judge to
whom this section applies and who retires under this section or who
is removed from office under subsection (d) upon the sole ground of
mental or physical disability, any service of that individual as a
bankruptcy judge to whom this section applies, and any service of
that individual as a full-time judicial officer who performed the
duties of magistrate judge and a bankruptcy judge at the same time,
shall be included for purposes of calculating years of service
under subsection (a), (b), (c), or (d), as the case may be.
(h) Covered Positions and Service. - This section applies to -
(1) any bankruptcy judge appointed under -
(A) section 152 of this title;
(B) section 34 of the Bankruptcy Act before the repeal of
that Act by section 401 of the Act of November 6, 1978 (Public
Law 95-598; 92 Stat. 2682); or
(C) section 404 of the Act of November 6, 1978 (Public Law 95-
598; 92 Stat. 2549); and
(2) any United States magistrate judge appointed under section
631 of this title,
only with respect to service on or after October 1, 1979, as such a
bankruptcy judge or magistrate judge.
(i) Payments Pursuant to Court Order. - (1) Payments under this
section which would otherwise be made to a bankruptcy judge or
magistrate judge based upon his or her service shall be paid (in
whole or in part) by the Director of the Administrative Office of
the United States Courts to another person if and to the extent
expressly provided for in the terms of any court decree of divorce,
annulment, or legal separation, or the terms of any court order or
court-approved property settlement agreement incident to any court
decree of divorce, annulment, or legal separation. Any payment
under this paragraph to a person bars recovery by any other person.
(2) Paragraph (1) shall apply only to payments made by the
Director of the Administrative Office of the United States Courts
after the date of receipt by the Director of written notice of such
decree, order, or agreement, and such additional information as the
Director may prescribe.
(3) As used in this subsection, the term "court" means any court
of any State, the District of Columbia, the Commonwealth of Puerto
Rico, Guam, the Northern Mariana Islands, or the Virgin Islands,
and any Indian tribal court or courts of Indian offense.
(j) Deductions, Contributions, and Deposits. -
(1) Deductions. - Beginning with the next pay period after the
Director of the Administrative Office of the United States Courts
receives a notice under subsection (f) that a bankruptcy judge or
magistrate judge has elected an annuity under this section, the
Director shall deduct and withhold 1 percent of the salary of
such bankruptcy judge or magistrate judge. Amounts shall be so
deducted and withheld in a manner determined by the Director.
Amounts deducted and withheld under this subsection shall be
deposited in the Treasury of the United States to the credit of
the Judicial Officers' Retirement Fund. Deductions under this
subsection from the salary of a bankruptcy judge or magistrate
judge shall terminate upon the retirement of the bankruptcy judge
or magistrate judge or upon completing 14 years of service for
which contributions under this section have been made, whether
continuously or otherwise, as calculated under subsection (g),
whichever occurs first.
(2) Consent to Deductions; Discharge of Claims. - Each
bankruptcy judge or magistrate judge who makes an election under
subsection (f) shall be deemed to consent and agree to the
deductions from salary which are made under paragraph (1).
Payment of such salary less such deductions (and any deductions
made under section 376 of this title) is a full and complete
discharge and acquittance of all claims and demands for all
services rendered by such bankruptcy judge or magistrate judge
during the period covered by such payment, except the right to
those benefits to which the bankruptcy judge or magistrate judge
is entitled under this section (and section 376).
(k) Deposits for Prior Service. - Each bankruptcy judge or
magistrate judge who makes an election under subsection (f) may
deposit, for service performed before such election for which
contributions may be made under this section, an amount equal to 1
percent of the salary received for that service. Credit for any
period covered by that service may not be allowed for purposes of
an annuity under this section until a deposit under this subsection
has been made for that period.
(l) Individual Retirement Records. - The amounts deducted and
withheld under subsection (j), and the amounts deposited under
subsection (k), shall be credited to individual accounts in the
name of each bankruptcy judge or magistrate judge from whom such
amounts are received, for credit to the Judicial Officers'
Retirement Fund.
(m) Annuities Affected in Certain Cases. -
(1) Practicing law after retirement. -
(A) Forfeiture of annuity. - Subject to subparagraph (B), any
bankruptcy judge or magistrate judge who retires under this
section and who thereafter practices law shall forfeit all
rights to an annuity under this section for all periods
beginning on or after the first day on which he or she so
practices law.
(B) Forfeiture not to apply where individual elects to freeze
amount of annuity. - (i) If a bankruptcy judge or magistrate
judge makes an election to practice law after retirement under
this section -
(I) subparagraph (A) shall not apply to such bankruptcy
judge or magistrate judge beginning on the date such election
takes effect, and
(II) the annuity payable under this section to such
bankruptcy judge or magistrate judge, for periods beginning
on or after the date such election takes effect, shall be
equal to the annuity to which such bankruptcy judge or
magistrate judge is entitled on the day before such effective
date.
(ii) An election under clause (i) -
(I) may be made by a bankruptcy judge or magistrate judge
eligible for retirement under this section, and
(II) shall be filed with the Director of the Administrative
Office of the United States Courts.
Such an election, once it takes effect, shall be irrevocable.
(iii) Any election under this subparagraph shall take effect
on the first day of the first month following the month in
which the election is made.
(2) Recall not permitted. - Any bankruptcy judge or magistrate
judge who retires under this section and who thereafter practices
law shall not be eligible for recall under section 155(b), 375,
or 636(h) of this title.
(3) Accepting other employment. - Any bankruptcy judge or
magistrate judge who retires under this section and thereafter
accepts compensation for civil office or employment under the
United States Government (other than for the performance of
functions as a bankruptcy judge or magistrate judge under section
155(b), 375, or 636(h) of this title) shall forfeit all rights to
an annuity under this section for the period for which such
compensation is received. For purposes of this paragraph, the
term "compensation" includes retired pay or salary received in
retired status.
(n) Lump-Sum Payments. -
(1) Eligibility. - (A) Subject to paragraph (2), an individual
who serves as a bankruptcy judge or magistrate judge and -
(i) who leaves office and is not reappointed as a bankruptcy
judge or magistrate judge for at least 31 consecutive days;
(ii) who files an application with the Administrative Office
of the United States Courts for payment of the lump-sum credit;
(iii) is not serving as a bankruptcy judge or magistrate
judge at the time of filing of the application; and
(iv) will not become eligible to receive an annuity under
this section within 31 days after filing the application;
is entitled to be paid the lump-sum credit. Payment of the lump-
sum credit voids all rights to an annuity under this section
based on the service on which the lump-sum credit is based, until
that individual resumes office as a bankruptcy judge or
magistrate judge.
(B) Lump-sum benefits authorized by subparagraphs (C), (D), and
(E) of this paragraph shall be paid to the person or persons
surviving the bankruptcy judge or magistrate judge and alive on
the date title to the payment arises, in the order of precedence
set forth in subsection (o) of section 376 of this title, and in
accordance with the last two sentences of that subsection. For
purposes of the preceding sentence, the term "judicial official"
as used in subsection (o) of section 376 shall be deemed to mean
"bankruptcy judge or magistrate judge".
(C) If a bankruptcy judge or magistrate judge dies before
receiving an annuity under this section, the lump-sum credit
shall be paid.
(D) If all annuity rights under this section based on the
service of a deceased bankruptcy judge or magistrate judge
terminate before the total annuity paid equals the lump-sum
credit, the difference shall be paid.
(E) If a bankruptcy judge or magistrate judge who is receiving
an annuity under this section dies, annuity accrued and unpaid
shall be paid.
(F) Annuity accrued and unpaid on the termination, except by
death, of the annuity of a bankruptcy judge or magistrate judge
shall be paid to that individual.
(G) Subject to paragraph (2), a bankruptcy judge or magistrate
judge who forfeits rights to an annuity under subsection (m)(3)
before the total annuity paid equals the lump-sum credit, shall
be entitled to be paid the difference if the bankruptcy judge or
magistrate judge files an application with the Administrative
Office of the United States Courts for payment of that
difference. A payment under this subparagraph voids all rights to
an annuity on which the payment is based.
(2) Spouses and former spouses. - (A) Payment of the lump-sum
credit under paragraph (1)(A) or a payment under paragraph (1)(G)
-
(i) may be made only if any current spouse and any former
spouse of the bankruptcy judge or magistrate judge are notified
of the bankruptcy judge's or magistrate judge's application;
and
(ii) shall be subject to the terms of a court decree of
divorce, annulment, or legal separation or any court or court
approved property settlement agreement incident to such decree,
if -
(I) the decree, order, or agreement expressly relates to
any portion of the lump-sum credit or other payment involved;
and
(II) payment of the lump-sum credit or other payment would
extinguish entitlement of the bankruptcy judge's or
magistrate judge's spouse or former spouse to any portion of
an annuity under subsection (i).
(B) Notification of a spouse or former spouse under this
paragraph shall be made in accordance with such requirements as
the Director of the Administrative Office of the United States
Courts shall by regulation prescribe. The Director may provide
under such regulations that subparagraph (A)(i) may be waived
with respect to a spouse or former spouse if the bankruptcy judge
or magistrate judge establishes to the satisfaction of the
Director that the whereabouts of such spouse or former spouse
cannot be determined.
(C) The Director shall prescribe regulations under which this
paragraph shall be applied in any case in which the Director
receives two or more orders or decrees described in subparagraph
(A).
(3) Definition. - For purposes of this subsection, the term
"lump-sum credit" means the unrefunded amount consisting of -
(A) retirement deductions made under this section from the
salary of a bankruptcy judge or magistrate judge;
(B) amounts deposited under subsection (k) by a bankruptcy
judge or magistrate judge covering earlier service; and
(C) interest on the deductions and deposits which, for any
calendar year, shall be equal to the overall average yield to
the Judicial Officers' Retirement Fund during the preceding
fiscal year from all obligations purchased by the Secretary of
the Treasury during such fiscal year under subsection (o);
but does not include interest -
(i) if the service covered thereby aggregates 1 year or less;
or
(ii) for the fractional part of a month in the total service.
(o) Judicial Officers' Retirement Fund. -
(1) Establishment. - There is established in the Treasury a
fund which shall be known as the "Judicial Officers' Retirement
Fund". The Fund is appropriated for the payment of annuities,
refunds, and other payments under this section.
(2) Investment of fund. - The Secretary of the Treasury shall
invest, in interest bearing securities of the United States, such
currently available portions of the Judicial Officers' Retirement
Fund as are not immediately required for payments from the Fund.
The income derived from these investments constitutes a part of
the Fund.
(3) Unfunded liability. - (A) There are authorized to be
appropriated to the Judicial Officers' Retirement Fund amounts
required to reduce to zero the unfunded liability of the Fund.
(B) For purposes of subparagraph (A), the term "unfunded
liability" means the estimated excess, determined on an annual
basis in accordance with the provisions of section 9503 of title
31, of the present value of all benefits payable from the
Judicial Officers' Retirement Fund over the sum of -
(i) the present value of deductions to be withheld under this
section from the future basic pay of bankruptcy judges and
magistrate judges; plus
(ii) the balance in the Fund as of the date the unfunded
liability is determined.
In making any determination under this subparagraph, the
Comptroller General shall use the applicable information
contained in the reports filed pursuant to section 9503 of title
31, with respect to the retirement annuities provided for in this
section.
(C) There are authorized to be appropriated such sums as may be
necessary to carry out this paragraph.