§ 5–717. Deferred annuities; refund of deductions; redeposits and interest.

(a) Except as provided in subsection (b) of this section, any member who is an officer or member of the Metropolitan Police force or the Fire Department of the District of Columbia who completes 5 years of police or fire service and who is thereafter separated from his department, except for retirement under § 5-709, § 5-710, or § 5-712, shall be entitled to an annuity commencing on the 1st day of the month during which such member attains the age of 55 or on the 1st day of the 1st month beginning after such member’s separation from his department, whichever month occurs later. Such annuity shall be computed at the rate of 21/2% of his average pay for each year of service up to 20 years of service and at the rate of 3% of his average pay for each year of service after 20 years of service, or, in the case of a member who first became such a member after the end of the 90-day period beginning on July 1, 1977, after 25 years of service, except that such annuity may not exceed 80% of the average pay of such member.

(b)(1) Any member who is an officer or member of the Metropolitan Police force or the Fire Department of the District of Columbia who completes 5 years of police or fire service and who is thereafter separated from his department (other than a member who retires under § 5-709, § 5-710, or § 5-712) may elect, at the time of his separation, to receive a refund of the amount of deductions made from his salary under this subchapter. Receipt of such refund by the member shall void all annuity rights under this subchapter.

(2)(A) Any member who, by electing to receive a refund under paragraph (1) of this subsection, loses annuity rights under this subchapter, may reestablish all such rights at any time prior to attaining the age of 55 by redepositing the amount of such refund plus interest computed in accordance with subsection (c) of this section.

(B) If any member who receives a refund under paragraph (1) of this subsection is subsequently reappointed to any department whose members come under this subchapter and elects, at the time of such reappointment, to redeposit the amount refunded to him under paragraph (1) of this subsection plus interest computed in accordance with subsection (c) of this section, then credit shall be allowed under this subchapter for such member’s prior period of service. Such redeposit (and the required interest thereon) may, at the election of the member, be made in a lump sum or in not to exceed 60 monthly installments, except that if the member dies before depositing the full amount due under the preceding sentence, the requirements of such sentence shall be deemed to have been met.

(c) The interest which is required by subsection (b)(2)(A) and (B) of this section and by subsection (b)(2) of § 5-706 to be paid by a member who redeposits the amount of previously refunded deductions shall be computed as follows:

(1) Interest shall be paid at a rate which (as determined by the District of Columbia Retirement Board) is equal to the average rate of return on investment (adjusted to the nearest one eighth of 1%) for the District of Columbia Police Officers and Fire Fighters’ Retirement Fund (established by § 1-712) for the period beginning on the 1st day of the 1st month which begins after the end of the service with respect to which the redeposit is made and ending on the last day of the month which precedes the month during which he redeposits the refund if he makes a lump-sum payment or during which he makes the 1st monthly payment if he makes monthly payments, except that for so much of any such period which precedes October 1, 1981, the average rate of interest on interest-bearing obligations of the United States forming a part of the public debt (adjusted to the nearest one eighth of 1%) shall be used in determining the interest rate to be paid on redeposits under this subchapter;

(2) Interest shall be payable for the period beginning on the 1st day of the 1st month which begins after the end of the period of service with respect to which the redeposit is made and ending on the last day of the month which precedes the month during which he redeposits the refund;

(3) If a member elects to make his redeposit in monthly installments, each monthly payment shall include interest on that portion of the refund which is then being redeposited.