(a) At the time of retirement CSRS (or under FERS, if transferred from CSRS), a person may use the balance of a voluntary contribution account to purchase one of the following types of additional annuity:

1. (1) Annuity without survivor benefit; or
2. (2) Reduced annuity payable during the life of the employee or Member with one-half of the reduced annuity to be payable after his or her death to a person, named at time of retirement, during the life of the named person.

(d) If the applicant for retirement elects an annuity with survivor benefit, each $100 credited to his or her voluntary contribution account, including interest, purchases an additional annuity at the rate of $7 per year, plus 20 cents for each full year, if any, he or she is over age 55 at date of retirement, multiplied by the following percentage:

1. (1) Ninety percent of such amount if the named person is the same age or older than the applicant for retirement, or is less than 5 years younger than the applicant for retirement;
2. (2) Eighty-five percent if the named person is 5 but less than 10 years younger;
3. (3) Eighty percent if the named person is 10 but less than 15 years younger;
4. (4) Seventy-five percent if the named person is 15 but less than 20 years younger;
5. (5) Seventy percent if the named person is 20 but less than 25 years younger;
6. (6) Sixty-five percent if the named person is 25 but less than 30 years younger; and
7. (7) Sixty percent if the named person is 30 or more years younger.