Office of Personnel Management.
The Office of Personnel Management (OPM) is issuing a final rule to remove the premiums and age bands from the Federal Employees' Group Life Insurance (FEGLI) regulations. This allows OPM to make necessary premium changes on a more timely basis.
November 13, 2003.Start Further Info
FOR FURTHER INFORMATION CONTACT:
Karen Leibach, (202) 606-0004.End Further Info End Preamble Start Supplemental Information
On April 9, 2003, OPM published a proposed rule in the Federal Register (68 FR 17315) to remove the premiums and age bands from the FEGLI regulations. OPM will announce future premium changes in a Federal Register notice and will maintain the rates on the FEGLI Web site (www.opm.gov/insure/life). This will simplify the process for making premium changes when necessary and allow for changes to be made in a more timely manner.
We received no comments on the proposed regulatory change.
Regulatory Flexibility Act
I certify that this regulation will not have a significant economic impact on a substantial number of small entities because the regulation only affects life insurance benefits of Federal employees and retirees.
Executive Order 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget in accordance with Executive Order 12866.Start List of Subjects
List of Subjects in 5 CFR Part 870
- Administrative practice and procedure
- Government employees
- Life insurance
Office of Personnel Management.
Kay Coles James,
Accordingly, OPM is amending 5 CFR part 870 as follows:End Amendment Part Start Part
PART 870—FEDERAL EMPLOYEES’ GROUP LIFE INSURANCE PROGRAMEnd Part Start Amendment Part
1. The authority citation for part 870 is revised to read as follows:End Amendment Part
Subpart D—Cost of InsuranceStart Amendment Part
2. In § 870.401, revise paragraphs (a), (b)(1), and (d) to read as follows:End Amendment Part
(a)(1) The cost of Basic insurance is shared between the insured individual and the Government. The employee pays two-thirds of the cost, and the Government pays one-third.
(2) When OPM makes any adjustment to the Basic life insurance premium, it will issue a public notice in the Federal Register.
(b)(1) During each pay period in which an insured employee is in pay status for any part of the period, the employee's share of the premium must be withheld from the employee's biweekly pay. The amount withheld from the pay of an employee who is paid on other than a biweekly basis must be computed and adjusted to the nearest one-tenth of one cent.
(d)(1) For an annuitant or compensationer who elects to continue Basic insurance and chooses the maximum reduction of 75 percent after age 65 under § 870.702(a)(2), the annuitant's share of the premium is withheld monthly and the compensationer's share is withheld every 4 weeks. These withholdings stop the month after the month in which the annuitant or compensationer reaches age 65. There are no withholdings from individuals who retired or began receiving compensation before January 1, 1990, and who elected the 75 percent reduction. For the purpose of this paragraph, an individual who separates from service after meeting the requirements for an immediate annuity under 5 U.S.C. 8412(g) is considered to retire on the day before the annuity begins.
(2) An annuitant or compensationer who elects to continue Basic insurance and chooses either the reduction election of 50 percent or the election of no reduction after age 65 under § 870.702(a)(3) or (4) pays an additional premium for the 50 percent or no reduction election. This additional premium is withheld for each $1,000 of the BIA. At age 65, the Basic premium will stop, but the annuitant or compensationer must continue to pay the additional premium for either the 50 percent or the no reduction election.
3. Revise § 870.402 to read as follows:End Amendment Part
(a)(1) The insured individual pays the full cost of all Optional insurance. There is no Government contribution toward the cost of any Optional insurance.
(2) Optional insurance premiums are based on 5-year age bands beginning at age 35. The last age band for Option A is age 60+. The last age band for Options B and C is 80+. For the purpose of this subpart, effective April 24, 1999, an individual is considered to reach the next age band the 1st day of the pay period following the pay period in which his/her birthday occurs.
(3) When OPM makes any adjustment to the Optional life insurance premiums, it will issue a public notice in the Federal Register.
(b) During each pay period in any part of which an insured employee is in pay status, the employing agency must withhold the full cost of Optional insurance from his/her pay.
(c)(1) Subject to the provisions for reemployed annuitants in § 870.707, the Start Printed Page 59082full cost of Optional insurance must be withheld from the annuity of an annuitant the compensation of a compensationer.
(2) The withholdings for Option A stop the month after the month in which an annuitant or compensationer reaches age 65.
(3) For an annuitant or compensationer who elects Full Reduction for any Option B or Option C multiples under § 870.705, the withholdings for those multiples stop the month after the month in which he/she reaches age 65.
(4) For an annuitant or compensationer who elects No Reduction for any Option B or Option C multiples, the withholdings for those multiples continue, as long as he/she remains insured.
(d)(1) For Option A and Option C, the amount withheld from pay, annuity, or compensation paid on other than a biweekly basis must be computed and adjusted to the nearest cent.
(2) For Option B, the amount withheld from pay, annuity, or compensation paid on other than a biweekly basis must be computed and adjusted to the nearest one-tenth of 1 cent.
(e) If an employee's annual pay is paid during a period shorter than 52 work weeks, the employing office must determine the amount to withhold. To do this, it converts the biweekly cost to an annual cost and prorates it over the number of installments of pay regularly paid during the year.
(f) When an agency withholds less than or none of the proper amount of Optional life insurance deductions from an individual's pay, annuity, or compensation, the agency must submit an amount equal to the uncollected deductions required under 5 U.S.C. 8714a, 8714b, and 8714c to OPM for deposit in the Employees' Life Insurance Fund.
4. In § 870.404, revise paragraph (d) to read as follows:End Amendment Part
(d) The deposit described in §§ 870.401(f) and 870.402(f) must be made no later than 60 calendar days after the date the employing office determines the amount of the underdeduction that has occurred, regardless of whether or when the underdeduction is recovered by the agency. The agency must determine whether to waive collection of the overpayment of pay, in accordance with 5 U.S.C. 5584, as implemented by 4 CFR chapter I, subchapter G. However, if the agency involved is excluded from the provisions of 5 U.S.C. 5584, it may use any applicable authority to waive the collection.
5. In § 870.801, revise paragraph (e) to read as follows:End Amendment Part
(e) Upon the death of an insured family member, Option C benefits are paid to the employee, annuitant, or compensationer responsible for withholdings under § 870.402(a), except as provided in paragraph (f) of this section.
[FR Doc. 03-25945 Filed 10-10-03; 8:45 am]
BILLING CODE 6325-50-U