Abstract -- Introduction -- Withdrawal of Employee Contributions Under P.L. 99-335 -- Reduction of the Annuity. Retiree Characteristics Affecting the Annuity Reduction ; COLAs, Inflation, and Interest Rate Assumptions ; Accounting for Survivor Benefits -- Making the Withdrawal Decision -- Old Tax Law. Taxation of Pension Plan Distribution ; Old Tax Law Pertainting to Regular Pension Income -- Effects of New Tax Law on Withdrawals Under PL 99-335 -- Appendix A: Examples of Annuity Reduction Rates When CSRS Contributions are Withdrawn.
The Federal Employees' Retirement System Act of 1986 (P.L. 99-335) allows retiring Federal employees to elect to withdraw, in one lump-sum, their contributions into the retirement system in exchange for a reduced annuity. This paper describes (1) the withdrawal provision and Office of Personel Management (OPM) regulations for the annuity reduction, and (2) tax treatment of the lump-sum withdrawal.
Carolyn L. Merck, Specialist in Social Legislation, Education and Public Welfare Division
CRS 86-1023 EPW
"October 23, 1986"
"Updated December 10, 1986."
SuDoc # LC 14. 18/3
