10 U.S. Code § 1409 - Retired pay multiplier
Pub. L. 114–92, div. A, title VI, §§ 631(a), 635, Nov. 25, 2015, 129 Stat. 842, 851, provided that, effective Jan. 1, 2018, with certain implementation requirements, subsection (b) of this section is amended by adding at the end the following new paragraph:
(4) Modernized retirement system.—
(A) Reduced multiplier for full tsp members.—Notwithstanding paragraphs (1), (2), and (3), in the case of a member who first becomes a member of the uniformed services on or after January 1, 2018, or a member who makes the election described in subparagraph (B) (referred to as a “full TSP member”)—
(i) paragraph (1)(A) shall be applied by substituting “2” for “2½”;
(ii) clause (i) of paragraph (3)(B) shall be applied by substituting “60 percent” for “75 percent”; and
(iii) clause (ii)(I) of such paragraph shall be applied by substituting “2” for “2½”.
(B) Election to participate in modernized retirement system.—Pursuant to subparagraph (C), a member of a uniformed service serving on December 31, 2017, who has served in the uniformed services for fewer than 12 years as of December 31, 2017, may elect, in exchange for the reduced multipliers described in subparagraph (A) for purposes of calculating the retired pay of the member, to receive Thrift Savings Plan contributions pursuant to section 8440e(e) of title 5.
(C) Election period.—
(i) In general.—Except as provided in clauses (ii) and (iii), a member of a uniformed service described in subparagraph (B) may make the election authorized by that subparagraph only during the period that begins on January 1, 2018, and ends on December 31, 2018.
(ii) Hardship extension.—The Secretary concerned may extend the election period described in clause (i) for a member who experiences a hardship as determined by the Secretary concerned.
(iii) Effect of break in service.—A member of a uniformed service who returns to service after a break in service that occurs during the election period specified in clause (i) shall make the election described in subparagraph (B) within 30 days after the date of the reentry into service of the member.
(D) No retroactive contributions pursuant to election.—Thrift Savings Plan contributions may not be made for a member making an election pursuant to subparagraph (B) for any period beginning before the date of the member’s election under that subparagraph by reason of the member’s election.
(E) Regulations.—The Secretary concerned shall prescribe regulations to implement this paragraph.
See 2015 Amendment note below.
Section 322 of title 37 (as in effect before the enactment of the National Defense Authorization Act for Fiscal Year 2008), referred to in subsec. (b)(2), means section 322 of title 37 as in effect before enactment of Pub. L. 110–181. Section 322 of title 37 was renumbered as section 354 of title 37 and amended by Pub. L. 110–181, div. A, title VI, § 661(b)(1), (2), Jan. 28, 2008, 122 Stat. 178.
2015—Subsec. (b)(4). Pub. L. 114–92 added par. (4).
2008—Subsec. (b)(2). Pub. L. 110–181, in introductory provisions, substituted “section 322 (as in effect before the enactment of the National Defense Authorization Act for Fiscal Year 2008) or section 354” for “section 322”.
2006—Subsec. (b)(3). Pub. L. 109–364 amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “In the case of a member with more than 30 years of creditable service, the percentage to be used under subsection (a) is 75 percent.”
1999—Subsec. (b)(2). Pub. L. 106–65 inserted “certain” after “Reduction applicable to” in heading and “has elected to receive a bonus under section 322 of title 37,” after “July 31, 1986,” in introductory provisions.
1994—Subsec. (a)(1)(B). Pub. L. 103–337 substituted “chapter 1223” for “chapter 67”.
1989—Subsec. (a)(1). Pub. L. 101–189 substituted “who is entitled to that pay” for “who is retired” in introductory provisions.
Amendment by Pub. L. 114–92 effective Jan. 1, 2018, with certain implementation requirements, see section 635 of Pub. L. 114–92, set out as a note under section 8432 of Title 5, Government Organization and Employees.
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