5 U.S.C. § 8452 : US Code - Section 8452: Computation of disability annuity

Search 5 U.S.C. § 8452 : US Code - Section 8452: Computation of disability annuity

(a)(1)(A) Except as provided in paragraph (2), or subsection (b),
(c), or (d), the annuity of an annuitant under this subchapter - 
(i) for the period beginning on the date on which such annuity
commences, or is restored (as described in section 8455(b)(2) or
(3)), and ending at the end of the twelfth month beginning on or
after such date, shall be equal to 60 percent of the annuitant's
average pay; and
(ii) after the end of the period referred to in clause (i),
shall be equal to 40 percent of the annuitant's average pay.
(B) An annuity computed under this paragraph - 
(i) shall not, during any period referred to in subparagraph
(A)(i), be adjusted under section 8462; but
(ii) shall, after the end of any period referred to in
subparagraph (A)(i), be adjusted to reflect all adjustments made
under section 8462(b) after the end of the period referred to in
subparagraph (A)(i), whether the amount actually payable to the
annuitant under this section in any month is determined under
this subsection or otherwise.
(2)(A) For any month in which an annuitant is entitled both to an
annuity under this subchapter as computed under paragraph (1) and
to a disability insurance benefit under section 223 of the Social
Security Act, the annuitant's annuity for such month (as so
computed) shall - 
(i) if such month occurs during a period referred to in
paragraph (1)(A)(i), be reduced by 100 percent of the annuitant's
assumed disability insurance benefit for such month; or
(ii) if such month occurs other than during a period referred
to in paragraph (1)(A)(i), be reduced by 60 percent of the
annuitant's assumed disability insurance benefit for such month;
except that an annuity may not be reduced below zero by reason of
this paragraph.
(B)(i) For purposes of this paragraph, the assumed disability
insurance benefit of an annuitant for any month shall be equal to -

(I) the amount of the disability insurance benefit to which the
annuitant is entitled under section 223 of the Social Security
Act for the month in which the annuity under this subchapter
commences, or is restored, or, if no entitlement to such
disability insurance benefits exists for such month, the first
month thereafter for which the annuitant is entitled both to an
annuity under this subchapter and disability insurance benefits
under section 223 of the Social Security Act, adjusted by
(II) all adjustments made under section 8462(b) after the end
of the period referred to in paragraph (1)(A)(i) (or, if later,
after the end of the month preceding the first month for which
the annuitant is entitled both to an annuity under this
subchapter and disability insurance benefits under section 223 of
the Social Security Act) and before the start of the month
involved (without regard to whether the annuitant's annuity was
affected by any of those adjustments).
(ii) For purposes of applying section 224 of the Social Security
Act to the assumed disability insurance benefit used to compute the
reduction under this paragraph, the amount of the annuity under
this subchapter which is considered shall be the amount of the
annuity as determined before the application of this paragraph.
(3) Section 8462 shall apply with respect to amounts under this
subsection only as provided in paragraphs (1) and (2).
(b)(1) Except as provided in subsection (d), if an annuitant is
entitled to an annuity under this subchapter as of the day before
the date of the sixty-second anniversary of the annuitant's birth
(hereinafter in this section referred to as the annuitant's
"redetermination date"), such annuity shall be redetermined by the
Office in accordance with paragraph (2). Effective as of the
annuitant's redetermination date, the annuity (as so redetermined)
shall be in lieu of any annuity to which such annuitant would
otherwise be entitled under this subchapter.
(2)(A) An annuity redetermined under this subsection shall be
equal to the amount of the annuity to which the annuitant would be
entitled under section 8415, taking into account the provisions of
subparagraph (B).
(B) In performing a computation under this paragraph - 
(i) creditable service of an annuitant shall be increased by
including any period (or periods) before the annuitant's
redetermination date during which the annuitant was entitled to
an annuity under this subchapter; and
(ii) the average pay which would otherwise be used shall be
adjusted to reflect all adjustments made under section 8462(b)
with respect to any period (or periods) referred to in clause (i)
(without regard to whether the annuitant's annuity was affected
by any of those adjustments).
(c) Except as provided in subsection (d), the annuity of an
annuitant under this subchapter shall be computed under section
8415 if - 
(1) such annuity commences, or is restored, beginning on or
after the redetermination date of the annuitant; or
(2) as of the day on which such annuity commences, or is
restored, the annuitant satisfies the age and service
requirements for entitlement to an annuity under section 8412
(other than subsection (g) of such section).
(d)(1) The annuity to which an annuitant is entitled under this
section (after the reduction under subsection (a)(2), if
applicable, has been made) shall not be less than the amount of an
annuity computed under section 8415 (excluding subsection (g) of
such section).
(2) In applying this subsection with respect to any annuitant,
the amount of an annuity so computed under section 8415 shall be
adjusted under section 8462 (including subsection (c) thereof) - 
(A) to the same extent, and otherwise in the same manner, as if
it were an annuity - 
(i) subject to adjustment under such section; and
(ii) with a commencement date coinciding with the date the
annuitant's annuity commenced or was restored under this
subchapter, as the case may be; and
(B) whether the amount actually payable to the annuitant under
this section in any month is determined under this subsection or
otherwise.