StacksVerified U.S. regulatory reference

20 CFR §234.58

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
The separation allowance lump-sum payment is calculated as follows:
  1. (a)Determine the amount of the compensation due to the receipt of separation or severance pay that could not be considered in the computation of tier II;
  2. (b)Multiply this amount by the rate or rates of tax imposed by section 3201(b) of the Internal Revenue Code of 1954 or 1986 on the compensation (tier II tax); and
  3. (c)The product is the amount of the separation allowance lump-sum payment.