(a) Basic pay

(1) The employing agency shall deduct and withhold from the basic pay of each participant the applicable percentage of basic pay specified in paragraph (2) of this subsection minus the percentage then in effect under section 3101(a) of title 26 (relating to the rate of tax for old age, survivors, and disability insurance).

Terms Used In 22 USC 4071e

  • agency: means an agency as defined in section 552(e) 1 of title 5. See 22 USC 3902
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Fund: means the Foreign Service Retirement and Disability Fund maintained by the Secretary of the Treasury pursuant to section 4042 of this title. See 22 USC 4071a
  • further revised annuity participant: means any individual who&mdash. See 22 USC 4071a
  • individual: shall include every infant member of the species homo sapiens who is born alive at any stage of development. See 1 USC 8
  • participant: means a person who participates in the Foreign Service Pension System. See 22 USC 4071a
  • revised annuity participant: means any individual who&mdash. See 22 USC 4071a
  • Secretary: means the Secretary of State, except that (subject to section 3921 of this title) with reference to the exercise of functions under this Act with respect to any agency authorized by law to utilize the Foreign Service personnel system, such term means the head of that agency. See 22 USC 3902
  • State: means a State, the District of Columbia, the Commonwealth of Puerto Rico, or any other territory or possession of the United States. See 1 USC 7
  • United States: when used in a geographic sense, means the several States and the District of Columbia. See 22 USC 3902

(2)(A) The applicable percentage for a participant other than a revised annuity participant or a further revised annuity participant shall be as follows:

7.5 Before January 1, 1999.
7.75 January 1, 1999, to December 31, 1999.
7.9 January 1, 2000, to December 31, 2000.
7.55 After January 11, 2003.

(B) The applicable percentage for a revised annuity participant shall be as follows:

9.85 After December 31, 2012

(C) The applicable percentage for a further revised annuity participant shall be as follows:

11.15 After December 31, 2013.

(b) Consent to deductions; discharge of claims

Each participant is deemed to consent and agree to the deductions under subsection (a). Notwithstanding any law or regulation affecting the pay of a participant, payment less such deductions is a full and complete discharge and acquittance of all claims and demands for regular services during the period covered by the payment, except the right to any benefits under this part based on the service of the participant.

(c) Deposit of amounts

Amounts deducted and withheld under this section shall be deposited in the Treasury of the United States to the credit of the Fund under such procedures as the Comptroller General of the United States may prescribe.

(d) Entry on individual retirement records

Under such regulations as the Secretary of State may issue, amounts deducted under subsection (a) shall be entered on individual retirement records.

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