§ 2021. Contributions to fund
(a)
In general
(1)
Participant’s contributions
Except as provided in subsection (d) of this section, 7 percent of the basic pay received by a participant for any pay period shall be deducted and withheld from the pay of that participant and contributed to the fund.
(b)
Consent of participant to deductions from pay
Each participant shall be deemed to consent and agree to such deductions from basic pay, and payment less such deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for all regular services during the period covered by such payment, except the right to the benefits to which the participant is entitled under this subchapter, notwithstanding any law, rule, or regulation affecting the individual’s pay.
(c)
Treatment of contributions after 35 years of service
(1)
Accrual of interest
Amounts deducted and withheld from the basic pay of a participant under this section for pay periods after the first day of the first pay period beginning after the day on which the participant completes 35 years of creditable service computed under sections
2081 and
2082 of this title (excluding service credit for unused sick leave under section
2031
(a)(2) of this title) shall accrue interest. Such interest shall accrue at the rate of 3 percent a year through December 31, 1984, and thereafter at the rate computed under section
8334
(e) of title
5, and shall be compounded annually from the date on which the amount is so deducted and withheld until the date of the participant’s retirement or death.
(2)
Use of amounts withheld after 35 years of service
(B)
Lump-sum payment
Any balance of such amounts not so required for such a deposit shall be refunded to the participant in a lump sum after the participant’s separation (or, in the event of a death in service, to a beneficiary in order of precedence specified in subsection [1] 2071(c) of this title), subject to prior notification of a current spouse, if any, unless the participant establishes to the satisfaction of the Director, in accordance with regulations which the Director may prescribe, that the participant does not know, and has taken all reasonable steps to determine, the whereabouts of the current spouse.
(d)
Offset for social security taxes
(1)
Persons covered
In the case of a participant who was a participant subject to this subchapter before January 1, 1984, and whose service—
(A)
is employment for the purposes of title II of the Social Security Act [42 U.S.C. 401 et seq.] and chapter
21 of title
26, and
(B)
is not creditable service for any purpose under subchapter III of this chapter or chapter
84 of title
5,
there shall be deducted and withheld from the basic pay of the participant under this section during any pay period only the amount computed under paragraph (2).
(2)
Reduction in contribution
The amount deducted and withheld from the basic pay of a participant during any pay period pursuant to paragraph (1) shall be the excess of—
[1] So in original. Probably should be “section”.