5 CFR 841.605 - Interest included in the unexpended balance.
§ 841.605
Interest included in the unexpended balance.
(b)
For determining the amount of interest in the unexpended balance when none of the employee deductions have been returned (e.g., employee refunds or at the time of retirement), the amount of interest in the unexpended balance equals the sum of the amounts of interest applicable to each calendar year's deductions. The amount of interest on each calendar year's deductions equals the sum of—
(i)
Except during the last year of service, the amount of the employee's deductions for that calendar year times the rate of interest set under § 841.603 for that calendar year times the fraction whose numerator is the number of full months when deductions were withheld and whose denominator is 24;
(ii)
During the last year of service, the amount of the employee's deductions for that year times the rate of interest set under § 841.603 for that year times the fraction—
(1) One half times the number of months (fractional months rounded up) of that year during which the employee was employed;
(2) One for each full month of that year after the employee's service terminated; and
(2)
For each calendar year after the year when the deductions were withheld but before the calendar year of the computation, the amount of the employee's deductions plus interest for prior years, times the rate of interest set under § 841.603 for that year; and
(i)
If it is not the same calendar year that the deductions were withheld, the amount of the employee's deductions plus interest for prior years, times the rate of interest set under § 841.603 for that year times the fraction whose numerator is the number of full months that have been completed in the year of the computation and whose denominator is 12; or
(ii)
If it is the same calendar year that the deductions were withheld, the amount of the employee's deductions for that year times the rate of interest set under § 841.603 for that year times the fraction—
(1) One half times the number of months (fractional months rounded up) of that year during which the employee was employed;
(2) One for each full month of that year after the employee's service terminated; and
(c)
(1)
For adding interest to the unexpended balance after retirement, the unexpended balance including interest computed under paragraph (b) of this section is computed as of the time of retirement.
(2)
Each month after retirement, the unexpended balance is reduced by the amount of annuity paid and interest is added to the remaining portion at the rate computed as follows:
(iii)
Subtract one from the result of paragraph (c)(2)(ii) of this section to produce the interest rate for the month.
Title 5 published on 2013-01-01
no entries appear in the Federal Register after this date.
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