(a) Optional Retirement.—Except as provided in subsections (d) and (e), a covered employee may retire from further performance of duty if such officer or employee—
(b) Compulsory Retirement.—
A covered employee who becomes 70 years of age shall be compulsorily retired from further performance of duty.
(c) Retirement for Disability.—
(1) In general.—
A covered employee who has completed 15 years of active service in the Government and is found, after examination by a medical officer of the United States, to be disabled for useful and efficient service by reason of disease or injury not due to vicious habits, intemperance, or willful misconduct of such officer or employee, shall be retired.
(2) Restoration to active duty.—
Any individual retired under paragraph (1) may, upon recovery, be restored to active duty, and shall from time to time, before reaching the age at which such individual may retire under subsection (a), be reexamined by a medical officer of the United States upon the request of the Secretary of the department in which the Coast Guard is operating.
(d) Annual Compensation.—
(1) In general.—
Except as provided in paragraph (2), The annual compensation of a person retired under this section shall be a sum equal to one-fortieth of the average annual pay received for the last 3 years of service for each year of active service in the Lighthouse Service, or in a department or branch of the Government having a retirement system, not to exceed thirty-fortieths of such average annual pay received.
(2) Retirement before 55.—
The retirement pay computed under paragraph (1) for any officer or employee retiring under this section shall be reduced by one-sixth of 1 percent for each full month the officer or employee is under 55 years of age at the date of retirement.
(e) Exception.—The retirement and pay provision in this section shall not apply to—
any person in the field service of the Lighthouse Service whose duties do not require substantially all their time; or
Any person entitled to retirement pay under this section may decline to accept all or any part of such retirement pay by a waiver signed and filed with the Secretary of the Treasury. Such waiver may be revoked in writing at any time, but no payment of the retirement pay waived shall be made covering the period during which such waiver was in effect.
For the purposes of this section, the term “covered employee” means an officer or employee engaged in the field service or on vessels of the Lighthouse Service, except a person continuously employed in district offices or shop.