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§ 377. —  Retirement of bankruptcy judges and magistrate judges.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 28USC377]

 
               TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE
 
                     PART I--ORGANIZATION OF COURTS
 
      CHAPTER 17--RESIGNATION AND RETIREMENT OF JUSTICES AND JUDGES
 
Sec. 377. Retirement of bankruptcy judges and magistrate judges

    (a) Retirement Based on Years of Service.--A bankruptcy judge or 
magistrate judge to whom this section applies and who retires from 
office after attaining the age of 65 years and serving at least 14 
years, whether continuously or otherwise, as such bankruptcy judge or 
magistrate judge shall, subject to subsection (f), be entitled to 
receive, during the remainder of the judge's or magistrate judge's 
lifetime, an annuity equal to the salary being received at the time the 
judge or magistrate judge leaves office.
    (b) Retirement Upon Failure of Reappointment.--A bankruptcy judge or 
magistrate judge to whom this section applies, who is not reappointed 
following the expiration of the term of office of such judge or 
magistrate judge, and who retires upon the completion of the term shall, 
subject to subsection (f), be entitled to receive, upon attaining the 
age of 65 years and during the remainder of such bankruptcy judge's or 
magistrate judge's lifetime, an annuity equal to that portion of the 
salary being received at the time the judge or magistrate judge leaves 
office which the aggregate number of years of service, not to exceed 14, 
bears to 14, if--
        (1) such judge or magistrate judge has served at least 1 full 
    term as a bankruptcy judge or magistrate judge, and
        (2) not earlier than 9 months before the date on which the term 
    of office of such judge or magistrate judge expires, and not later 
    than 6 months before such date, such judge or magistrate judge 
    notified the appointing authority in writing that such judge or 
    magistrate judge was willing to accept reappointment to the position 
    in which such judge or magistrate judge was serving.

For purposes of this subsection, in the case of a bankruptcy judge, the 
written notice required by paragraph (2) shall be given to the chief 
judge of the circuit in which such bankruptcy judge is serving and, in 
the case of a magistrate judge, such notice shall be given to the chief 
judge of the district court in which the magistrate judge is serving.
    (c) Service of at Least 8 Years.--A bankruptcy judge or magistrate 
judge to whom this section applies and who retires after serving at 
least 8 years, whether continuously or otherwise, as such a bankruptcy 
judge or magistrate judge shall, subject to subsection (f), be entitled 
to receive, upon attaining the age of 65 years and during the remainder 
of the judge's or magistrate judge's lifetime, an annuity equal to that 
portion of the salary being received at the time the judge or magistrate 
judge leaves office which the aggregate number of years of service, not 
to exceed 14, bears to 14. Such annuity shall be reduced by \1/6\ of 1 
percent for each full month such bankruptcy judge or magistrate judge 
was under the age of 65 at the time the judge or magistrate judge left 
office, except that such reduction shall not exceed 20 percent.
    (d) Retirement for Disability.--A bankruptcy judge or magistrate 
judge to whom this section applies, who has served at least 5 years, 
whether continuously or otherwise, as such a bankruptcy judge or 
magistrate judge, and who retires or is removed from office upon the 
sole ground of mental or physical disability shall, subject to 
subsection (f), be entitled to receive, during the remainder of the 
judge's or magistrate judge's lifetime, an annuity equal to 40 percent 
of the salary being received at the time of retirement or removal or, in 
the case of a judge or magistrate judge who has served for at least 10 
years, an amount equal to that proportion of the salary being received 
at the time of retirement or removal which the aggregate number of years 
of service, not to exceed 14, bears to 14.
    (e) Cost-of-Living Adjustments.--A bankruptcy judge or magistrate 
judge who is entitled to an annuity under this section is also entitled 
to a cost-of-living adjustment in such annuity, calculated and payable 
in the same manner as adjustments under section 8340(b) of title 5, 
except that any such annuity, as increased under this subsection, may 
not exceed the salary then payable for the position from which the judge 
or magistrate judge retired or was removed.
    (f) Election; Annuity in Lieu of Other Annuities.--A bankruptcy 
judge or magistrate judge shall be entitled to an annuity under this 
section if the judge or magistrate judge elects an annuity under this 
section by notifying the Director of the Administrative Office of the 
United States Courts. A bankruptcy judge or magistrate judge who elects 
to receive an annuity under this section shall not be entitled to 
receive \1\
---------------------------------------------------------------------------
    \1\ So in original. Probably should be ``receive--''.
---------------------------------------------------------------------------
        (1) any annuity to which such judge or magistrate judge would 
    otherwise have been entitled under subchapter III of chapter 83, or 
    under chapter 84 (except for subchapters III and VII), of title 5, 
    for service performed as such a judge or magistrate judge or 
    otherwise;
        (2) an annuity or salary in senior status or retirement under 
    section 371 or 372 of this title;
        (3) retired pay under section 7447 of the Internal Revenue Code 
    of 1986; or
        (4) retired pay under section 7296 of title 38.

    (g) Calculation of Service.--(1) For purposes of calculating an 
annuity under this section--
        (A) full-time service as a bankruptcy judge or magistrate judge 
    to whom this section applies may be credited; and
        (B) each month of service shall be credited as one-twelfth of a 
    year, and the fractional part of any month shall not be credited.

    (2)(A) In the case of an individual who is a bankruptcy judge to 
whom this section applies and who retires under this section or who is 
removed from office under subsection (d) upon the sole ground of mental 
or physical disability, any service of that individual as a United 
States magistrate judge to whom this section applies, and any service of 
that individual as a full-time judicial officer who performed the duties 
of a magistrate judge and a bankruptcy judge at the same time, shall be 
included for purposes of calculating years of service under subsection 
(a), (b), (c), or (d), as the case may be.
    (B) In the case of an individual who is a magistrate judge to whom 
this section applies and who retires under this section or who is 
removed from office under subsection (d) upon the sole ground of mental 
or physical disability, any service of that individual as a bankruptcy 
judge to whom this section applies, and any service of that individual 
as a full-time judicial officer who performed the duties of magistrate 
judge and a bankruptcy judge at the same time, shall be included for 
purposes of calculating years of service under subsection (a), (b), (c), 
or (d), as the case may be.
    (h) Covered Positions and Service.--This section applies to--
        (1) any bankruptcy judge appointed under--
            (A) section 152 of this title;
            (B) section 34 of the Bankruptcy Act before the repeal of 
        that Act by section 401 of the Act of November 6, 1978 (Public 
        Law 95-598; 92 Stat. 2682); or
            (C) section 404 of the Act of November 6, 1978 (Public Law 
        95-598; 92 Stat. 2549); and

        (2) any United States magistrate judge appointed under section 
    631 of this title,

only with respect to service on or after October 1, 1979, as such a 
bankruptcy judge or magistrate judge.
    (i) Payments Pursuant to Court Order.--(1) Payments under this 
section which would otherwise be made to a bankruptcy judge or 
magistrate judge based upon his or her service shall be paid (in whole 
or in part) by the Director of the Administrative Office of the United 
States Courts to another person if and to the extent expressly provided 
for in the terms of any court decree of divorce, annulment, or legal 
separation, or the terms of any court order or court-approved property 
settlement agreement incident to any court decree of divorce, annulment, 
or legal separation. Any payment under this paragraph to a person bars 
recovery by any other person.
    (2) Paragraph (1) shall apply only to payments made by the Director 
of the Administrative Office of the United States Courts after the date 
of receipt by the Director of written notice of such decree, order, or 
agreement, and such additional information as the Director may 
prescribe.
    (3) As used in this subsection, the term ``court'' means any court 
of any State, the District of Columbia, the Commonwealth of Puerto Rico, 
Guam, the Northern Mariana Islands, or the Virgin Islands, and any 
Indian tribal court or courts of Indian offense.
    (j) Deductions, Contributions, and Deposits.--
        (1) Deductions.--Beginning with the next pay period after the 
    Director of the Administrative Office of the United States Courts 
    receives a notice under subsection (f) that a bankruptcy judge or 
    magistrate judge has elected an annuity under this section, the 
    Director shall deduct and withhold 1 percent of the salary of such 
    bankruptcy judge or magistrate judge. Amounts shall be so deducted 
    and withheld in a manner determined by the Director. Amounts 
    deducted and withheld under this subsection shall be deposited in 
    the Treasury of the United States to the credit of the Judicial 
    Officers' Retirement Fund. Deductions under this subsection from the 
    salary of a bankruptcy judge or magistrate judge shall terminate 
    upon the retirement of the bankruptcy judge or magistrate judge or 
    upon completing 14 years of service for which contributions under 
    this section have been made, whether continuously or otherwise, as 
    calculated under subsection (g), whichever occurs first.
        (2) Consent to Deductions; Discharge of Claims.--Each bankruptcy 
    judge or magistrate judge who makes an election under subsection (f) 
    shall be deemed to consent and agree to the deductions from salary 
    which are made under paragraph (1). Payment of such salary less such 
    deductions (and any deductions made under section 376 of this title) 
    is a full and complete discharge and acquittance of all claims and 
    demands for all services rendered by such bankruptcy judge or 
    magistrate judge during the period covered by such payment, except 
    the right to those benefits to which the bankruptcy judge or 
    magistrate judge is entitled under this section (and section 376).

    (k) Deposits for Prior Service.--Each bankruptcy judge or magistrate 
judge who makes an election under subsection (f) may deposit, for 
service performed before such election for which contributions may be 
made under this section, an amount equal to 1 percent of the salary 
received for that service. Credit for any period covered by that service 
may not be allowed for purposes of an annuity under this section until a 
deposit under this subsection has been made for that period.
    (l) Individual Retirement Records.--The amounts deducted and 
withheld under subsection (j), and the amounts deposited under 
subsection (k), shall be credited to individual accounts in the name of 
each bankruptcy judge or magistrate judge from whom such amounts are 
received, for credit to the Judicial Officers' Retirement Fund.
    (m) Annuities Affected in Certain Cases.--
        (1) Practicing law after retirement.--
            (A) Forfeiture of annuity.--Subject to subparagraph (B), any 
        bankruptcy judge or magistrate judge who retires under this 
        section and who thereafter practices law shall forfeit all 
        rights to an annuity under this section for all periods 
        beginning on or after the first day on which he or she so 
        practices law.
            (B) Forfeiture not to apply where individual elects to 
        freeze amount of annuity.--(i) If a bankruptcy judge or 
        magistrate judge makes an election to practice law after 
        retirement under this section--
                (I) subparagraph (A) shall not apply to such bankruptcy 
            judge or magistrate judge beginning on the date such 
            election takes effect, and
                (II) the annuity payable under this section to such 
            bankruptcy judge or magistrate judge, for periods beginning 
            on or after the date such election takes effect, shall be 
            equal to the annuity to which such bankruptcy judge or 
            magistrate judge is entitled on the day before such 
            effective date.

            (ii) An election under clause (i)--
                (I) may be made by a bankruptcy judge or magistrate 
            judge eligible for retirement under this section, and
                (II) shall be filed with the Director of the 
            Administrative Office of the United States Courts.

        Such an election, once it takes effect, shall be irrevocable.
            (iii) Any election under this subparagraph shall take effect 
        on the first day of the first month following the month in which 
        the election is made.

        (2) Recall not permitted.--Any bankruptcy judge or magistrate 
    judge who retires under this section and who thereafter practices 
    law shall not be eligible for recall under section 155(b), 375, or 
    636(h) of this title.
        (3) Accepting other employment.--Any bankruptcy judge or 
    magistrate judge who retires under this section and thereafter 
    accepts compensation for civil office or employment under the United 
    States Government (other than for the performance of functions as a 
    bankruptcy judge or magistrate judge under section 155(b), 375, or 
    636(h) of this title) shall forfeit all rights to an annuity under 
    this section for the period for which such compensation is received. 
    For purposes of this paragraph, the term ``compensation'' includes 
    retired pay or salary received in retired status.

    (n) Lump-Sum Payments.--
        (1) Eligibility.--(A) Subject to paragraph (2), an individual 
    who serves as a bankruptcy judge or magistrate judge and--
            (i) who leaves office and is not reappointed as a bankruptcy 
        judge or magistrate judge for at least 31 consecutive days;
            (ii) who files an application with the Administrative Office 
        of the United States Courts for payment of the lump-sum credit;
            (iii) is not serving as a bankruptcy judge or magistrate 
        judge at the time of filing of the application; and
            (iv) will not become eligible to receive an annuity under 
        this section within 31 days after filing the application;

    is entitled to be paid the lump-sum credit. Payment of the lump-sum 
    credit voids all rights to an annuity under this section based on 
    the service on which the lump-sum credit is based, until that 
    individual resumes office as a bankruptcy judge or magistrate judge.
        (B) Lump-sum benefits authorized by subparagraphs (C), (D), and 
    (E) of this paragraph shall be paid to the person or persons 
    surviving the bankruptcy judge or magistrate judge and alive on the 
    date title to the payment arises, in the order of precedence set 
    forth in subsection (o) of section 376 of this title, and in 
    accordance with the last two sentences of that subsection. For 
    purposes of the preceding sentence, the term ``judicial official'' 
    as used in subsection (o) of section 376 shall be deemed to mean 
    ``bankruptcy judge or magistrate judge''.
        (C) If a bankruptcy judge or magistrate judge dies before 
    receiving an annuity under this section, the lump-sum credit shall 
    be paid.
        (D) If all annuity rights under this section based on the 
    service of a deceased bankruptcy judge or magistrate judge terminate 
    before the total annuity paid equals the lump-sum credit, the 
    difference shall be paid.
        (E) If a bankruptcy judge or magistrate judge who is receiving 
    an annuity under this section dies, annuity accrued and unpaid shall 
    be paid.
        (F) Annuity accrued and unpaid on the termination, except by 
    death, of the annuity of a bankruptcy judge or magistrate judge 
    shall be paid to that individual.
        (G) Subject to paragraph (2), a bankruptcy judge or magistrate 
    judge who forfeits rights to an annuity under subsection (m)(3) 
    before the total annuity paid equals the lump-sum credit, shall be 
    entitled to be paid the difference if the bankruptcy judge or 
    magistrate judge files an application with the Administrative Office 
    of the United States Courts for payment of that difference. A 
    payment under this subparagraph voids all rights to an annuity on 
    which the payment is based.
        (2) Spouses and former spouses.--(A) Payment of the lump-sum 
    credit under paragraph (1)(A) or a payment under paragraph (1)(G)--
            (i) may be made only if any current spouse and any former 
        spouse of the bankruptcy judge or magistrate judge are notified 
        of the bankruptcy judge's or magistrate judge's application; and
            (ii) shall be subject to the terms of a court decree of 
        divorce, annulment, or legal separation or any court or court 
        approved property settlement agreement incident to such decree, 
        if--
                (I) the decree, order, or agreement expressly relates to 
            any portion of the lump-sum credit or other payment 
            involved; and
                (II) payment of the lump-sum credit or other payment 
            would extinguish entitlement of the bankruptcy judge's or 
            magistrate judge's spouse or former spouse to any portion of 
            an annuity under subsection (i).

        (B) Notification of a spouse or former spouse under this 
    paragraph shall be made in accordance with such requirements as the 
    Director of the Administrative Office of the United States Courts 
    shall by regulation prescribe. The Director may provide under such 
    regulations that subparagraph (A)(i) may be waived with respect to a 
    spouse or former spouse if the bankruptcy judge or magistrate judge 
    establishes to the satisfaction of the Director that the whereabouts 
    of such spouse or former spouse cannot be determined.
        (C) The Director shall prescribe regulations under which this 
    paragraph shall be applied in any case in which the Director 
    receives two or more orders or decrees described in subparagraph 
    (A).
        (3) Definition.--For purposes of this subsection, the term 
    ``lump-sum credit'' means the unrefunded amount consisting of--
            (A) retirement deductions made under this section from the 
        salary of a bankruptcy judge or magistrate judge;
            (B) amounts deposited under subsection (k) by a bankruptcy 
        judge or magistrate judge covering earlier service; and
            (C) interest on the deductions and deposits which, for any 
        calendar year, shall be equal to the overall average yield to 
        the Judicial Officers' Retirement Fund during the preceding 
        fiscal year from all obligations purchased by the Secretary of 
        the Treasury during such fiscal year under subsection (o);

    but does not include interest--
            (i) if the service covered thereby aggregates 1 year or 
        less; or
            (ii) for the fractional part of a month in the total 
        service.

    (o) Judicial Officers' Retirement Fund.--
        (1) Establishment.--There is established in the Treasury a fund 
    which shall be known as the ``Judicial Officers' Retirement Fund''. 
    The Fund is appropriated for the payment of annuities, refunds, and 
    other payments under this section.
        (2) Investment of fund.--The Secretary of the Treasury shall 
    invest, in interest bearing securities of the United States, such 
    currently available portions of the Judicial Officers' Retirement 
    Fund as are not immediately required for payments from the Fund. The 
    income derived from these investments constitutes a part of the 
    Fund.
        (3) Unfunded liability.--(A) There are authorized to be 
    appropriated to the Judicial Officers' Retirement Fund amounts 
    required to reduce to zero the unfunded liability of the Fund.
        (B) For purposes of subparagraph (A), the term ``unfunded 
    liability'' means the estimated excess, determined on an annual 
    basis in accordance with the provisions of section 9503 of title 31, 
    of the present value of all benefits payable from the Judicial 
    Officers' Retirement Fund over the sum of--
            (i) the present value of deductions to be withheld under 
        this section from the future basic pay of bankruptcy judges and 
        magistrate judges; plus
            (ii) the balance in the Fund as of the date the unfunded 
        liability is determined.

    In making any determination under this subparagraph, the Comptroller 
    General shall use the applicable information contained in the 
    reports filed pursuant to section 9503 of title 31, with respect to 
    the retirement annuities provided for in this section.
        (C) There are authorized to be appropriated such sums as may be 
    necessary to carry out this paragraph.

(Added Pub. L. 100-659, Sec. 2(a), Nov. 15, 1988, 102 Stat. 3910; 
amended Pub. L. 101-650, title III, Secs. 321, 325(b)(3), Dec. 1, 1990, 
104 Stat. 5117, 5121; Pub. L. 102-40, title IV, Sec. 402(d)(2), May 7, 
1991, 105 Stat. 239.)

                       References in Text

    Section 7447 of the Internal Revenue Code, referred to in subsec. 
(f)(3), is classified to section 7447 of Title 26, Internal Revenue 
Code.
    Section 34 of the Bankruptcy Act, referred to in subsec. (h)(1)(B), 
was classified to section 62 of former Title 11, Bankruptcy. The 
Bankruptcy Act was repealed effective Oct. 1, 1979, by Pub. L. 95-598, 
Secs. 401(a), 402(a), Nov. 6, 1978, 92 Stat. 2682, section 101 of which 
enacted revised Title 11.
    Section 404 of the Act of November 6, 1978 (Public Law 95-598; 92 
Stat. 2549), referred to in subsec. (h)(1)(C), was set out as a note 
preceding section 151 of this title prior to repeal by Pub. L. 98-353, 
title I, Sec. 114, July 10, 1984, 98 Stat. 343.


                               Amendments

    1991--Subsec. (f)(4). Pub. L. 102-40 substituted ``section 7296 of 
title 38'' for ``section 4096 of title 38''.
    1990--Subsec. (f). Pub. L. 101-650, Sec. 325(b)(3)(A), substituted 
pars. (1) to (4) for ``any annuity to which such judge or magistrate 
would otherwise have been entitled under subchapter III of chapter 83, 
or under chapter 84 (except for subchapters III and VII), of title 5.''
    Subsec. (h). Pub. L. 101-650, Sec. 325(b)(3)(B), substituted ``on or 
after'' for ``in or after'' in concluding provisions.

                         Change of Name

    Words ``magistrate judge'', ``magistrate judges'', and ``magistrate 
judge's'' substituted for ``magistrate'', ``magistrates'', and 
``magistrate's'', respectively, wherever appearing in section catchline 
and text pursuant to section 321 of Pub. L. 101-650, set out as a note 
under section 631 of this title.


                             Effective Date

    Section 9 of Pub. L. 100-659, as amended by Pub. L. 101-650, title 
III, Sec. 321, Dec. 1, 1990, 104 Stat. 5117, provided that:
    ``(a) In General.--Subject to subsection (b), this Act [enacting 
this section and section 8440a [now 8440b] of Title 5, Government 
Organization and Employees, amending sections 155, 375, 376, 604, 631, 
and 636 of this title and sections 8334 and 8402 of Title 5, and 
enacting provisions set out as notes under this section and sections 1 
and 376 of this title] and the amendments made by this Act shall take 
effect on the date of the enactment of this Act [Nov. 15, 1988] and 
shall apply to bankruptcy judges and magistrate judges who retire on or 
after the date of the enactment of this Act.
    ``(b) Exception for Judges and Magistrate Judges Retiring on or 
after July 31, 1987.--A bankruptcy judge or magistrate judge who left 
office on or after July 31, 1987, and before the date of the enactment 
of this Act [Nov. 15, 1988] may elect to receive an annuity, or to 
participate in the Judicial Survivors' Annuity System, under the 
amendments made by this Act if such bankruptcy judge or magistrate 
judge, within 60 days after so leaving office, accepted office or 
employment with the United States Government or a State government or 
was eligible at the time he or she left office for an immediate annuity 
under title 5, United States Code. Any election under this subsection 
shall not be valid unless it is made within 6 months after the date of 
the enactment of this Act and under the same conditions as other persons 
who may make elections under the amendments made by this Act, except 
that any such person who makes an election under this subsection shall 
not receive a lump-sum credit under section 8342 or 8424 of title 5, 
United States Code, for prior service and shall not be required to make 
contributions for prior years of creditable service.''


                  Annuity of Qualified Magistrate Judge

    Pub. L. 107-116, title V, Sec. 515, Jan. 10, 2002, 115 Stat. 2220, 
provided that:
    ``(a) In this section the term `qualified magistrate judge' means 
any person who--
        ``(1) retired as a magistrate judge before November 15, 1988; 
    and
        ``(2) on the date of filing an election under subsection (b)--
            ``(A) is serving as a recalled magistrate judge on a full-
        time basis under section 636(h) of title 28, United States Code; 
        and
            ``(B) has completed at least 5 years of full-time recall 
        service.
    ``(b) The Director of the Administrative Office of the United States 
Courts may accept the election of a qualified magistrate judge to--
        ``(1) receive an annuity under section 377 of title 28, United 
    States Code; and
        ``(2) come within the purview of section 376 of such title.
    ``(c) Full-time recall service performed by a qualified magistrate 
judge shall be credited for service in calculating an annuity elected 
under this section.
    ``(d) The Director of the Administrative Office of the United States 
Courts may promulgate regulations to carry out this section.''


  Retirement Annuities for Incumbent Bankruptcy Judges and Magistrate 
                                 Judges

    Section 2(c) of Pub. L. 100-659, as amended by Pub. L. 101-650, 
title III, Sec. 321, Dec. 1, 1990, 104 Stat. 5117, provided that:
    ``(1) Retirement annuity under title 5 and section 377 of title 
28.--A bankruptcy judge or United States magistrate judge in active 
service on the effective date of this Act [see Effective Date note 
above] shall, subject to paragraph (2), be entitled, in lieu of the 
annuity otherwise provided under the amendments made by this section 
[enacting this section] to--
        ``(A) an annuity under subchapter III of chapter 83, or under 
    chapter 84, of title 5, United States Code, as the case may be, for 
    creditable service before the date on which service would begin to 
    be credited for purposes of subparagraph (B), and
        ``(B) an annuity calculated under subsection (b) or (c) and 
    subsection (g) of section 377 of title 28, United States Code, as 
    added by this section, for any service as a full-time bankruptcy 
    judge or magistrate judge on or after October 1, 1979 (as specified 
    in the election pursuant to paragraph (2)) for which deductions and 
    deposits are made under subsections (j) and (k) of such section 377, 
    as applicable, without regard to the minimum number of years of 
    service as such a bankruptcy judge or magistrate judge, except 
    that--
            ``(i) in the case of a judge or magistrate judge who retires 
        with less than 8 years of service, the annuity under subsection 
        (c) of section 377 of title 28, United States Code, shall be 
        equal to that proportion of the salary being received at the 
        time the judge or magistrate judge leaves office which the years 
        of service bears to 14, subject to a reduction in accordance 
        with subsection (c) of such section 377 if the bankruptcy judge 
        or magistrate judge is under age 65 at the time he or she leaves 
        office, and
            ``(ii) the aggregate amount of the annuity initially payable 
        on retirement under this subsection may not exceed the rate of 
        pay for the bankruptcy judge or magistrate judge which is in 
        effect on the day before the retirement becomes effective.
    ``(2) Filing of notice of election.--A bankruptcy judge or 
magistrate judge shall be entitled to an annuity under this subsection 
only if the judge or magistrate judge files a notice of that election 
with the Director of the Administrative Office of the United States 
Courts specifying the date on which service would begin to be credited 
under section 377 of title 28, United States Code, in lieu of chapter 83 
or chapter 84 of title 5, United States Code.
    ``(3) Lump-sum credit under title 5.--A bankruptcy judge or 
magistrate judge who makes an election under paragraph (2) shall be 
entitled to a lump-sum credit under section 8342 or 8424 of title 5, 
United States Code, as the case may be, for any service which is covered 
under section 377 of title 28, United States Code, as added by this 
section, pursuant to that election, and with respect to which any 
contributions were made by the judge or magistrate judge under the 
applicable provisions of title 5, United States Code.
    ``(4) Recall.--With respect to any bankruptcy judge or magistrate 
judge receiving an annuity under this subsection who is recalled to 
serve under section 375 of title 28, United States Code--
        ``(A) the amount of compensation which such recalled judge or 
    magistrate judge receives under subsection (c) of such section shall 
    be calculated on the basis of the annuity received under this 
    subsection; and
        ``(B) such recalled judge or magistrate judge may serve as a 
    reemployed annuitant to the extent permitted by subsection (e) of 
    section 375 of such title.
Section 377(m)(3) of title 28, United States Code, as added by 
subsection (a) of this section, shall not apply with respect to service 
as a reemployed annuitant described in subparagraph (B).''


 Report to Congress on Financial Operation of Retirement Annuity Program

    Section 8 of Pub. L. 100-659 provided that: ``The Director of the 
Administrative Office of the United States Courts shall, not later than 
5 years after the date of the enactment of this Act [Nov. 15, 1988], 
submit a report to the Congress on the financial operation of the 
retirement annuity program established under this Act and the amendments 
made by this Act [see Effective Date note above]. The report shall, in 
particular, include a discussion of the deductions from salary and 
deposits made for contributions to the annuity program and the need for 
continuing the deductions at the level established under the amendments 
made by this Act.''

                  Section Referred to in Other Sections

    This section is referred to in sections 155, 364, 375, 376, 604, 636 
of this title; title 5 sections 8334, 8402, 8440b.



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