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Rule

Allotments From Federal Employees

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Information about this document as published in the Federal Register.

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AGENCY:

U.S. Office of Personnel Management.

ACTION:

Final rule.

SUMMARY:

The U.S. Office of Personnel Management (OPM) is issuing final regulations dealing with the use of OPM's allotment authority to allow for pretax salary reductions as part of OPM's flexible benefits plan. Using an allotment from an employee's pay to the employing agency allows certain payments (e.g., employee health insurance premiums, contributions to a flexible spending arrangement, and contributions to a health savings account) to be paid with pretax dollars, as provided under section 125 of the Internal Revenue Code. In addition, these regulations finalize certain policy clarifications and changes to make the regulations more readable.

DATES:

Effective Date: The final regulations are effective on March 10, 2008.

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FOR FURTHER INFORMATION CONTACT:

Kevin Kitchelt by telephone at (202) 606-2858; by fax at (202) 606-0824; or by e-mail at pay-performance-policy@opm.gov.

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SUPPLEMENTARY INFORMATION:

On November 17, 2006, the U.S. Office of Personnel Management (OPM), issued interim regulations (71 FR 66827) on OPM's allotment authority at 5 CFR part 550, subpart C, to allow for pretax salary reductions as part of OPM's flexible benefits plan. Using an allotment from an employee's pay to the employing agency allows certain payments (e.g., employee health insurance premiums, contributions to a flexible spending arrangement, and contributions to a health savings account) to be paid with pretax dollars, as provided under section 125 of the Internal Revenue Code. The interim regulations also made certain policy clarifications and changes to make the regulations more readable

The 60-day comment period ended on January 16, 2007. During the comment period, OPM received one comment that was outside the scope of these regulations. Therefore, we are adopting the interim regulations as final with a correction to a section title.

Regulatory Flexibility Act

I certify that these regulations will not have a significant economic impact on a substantial number of small entities because they will apply only to Federal agencies and employees.

E.O. 12866, Regulatory Review

The Office of Management and Budget has reviewed this rule in accordance with E.O. 12866.

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List of Subjects in 5 CFR Parts 550 and 892

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U.S. Office of Personnel Management.

Linda M. Springer,

Director.

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Accordingly, the interim rule amending

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PART 550—PAY ADMINISTRATION (GENERAL)

Subpart C—Allotments From Federal Employees

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1. The authority citation for subpart C of part 550 continues to read as follows:

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Authority: 5 U.S.C. 5527; E.O. 10982, 3 CFR 1959-1963 Comp., p.502.

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2. The heading of subpart C is revised to read as set forth above.

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3. The undesignated center heading “Allotments for Savings” following § 550.351 is removed.

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4. Revise the heading to § 550.361 to read as follows:

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Scope.
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[FR Doc. E8-2131 Filed 2-6-08; 8:45 am]

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