The Federal Employees' Retirement System Act of 1986 (P.L. 99-335) allows retiring Federal employees to elect to withdraw, in one lump-sum, their contributions into the retirement system in exchange for a reduced annuity. This paper describes (1) the withdrawal provision and Office of Personel Management (OPM) regulations for the annuity reduction, and (2) tax treatment of the lump-sum withdrawal.

This paper describes the provisions of P.L. 99-177 ("Gramm-Rudman-Hollings") that pertain to Federal civil service employees and retirees.,Carolyn Merck, Specialist in Social Legislation, Education and Public Welfare Division,CRS 86-502 EPW,"January 2, 1986.",SuDoc# 14. 18/3