FEGLI Living Benefits Act

Summary: FEGLI Living Benefits Act - Provides that a Federal employee enrolled in the Federal Employees Group Life Insurance (FEGLI) Program who has been diagnosed as terminally ill with a life expectancy of nine months or less may elect to receive a lump-sum payment of his or her basic insurance amount, as adjusted actuarially under regulations of the Office of Personnel Management (OPM). 
Requires OPM to retain in the Employees Life Insurance Fund the portion of premium payments otherwise due as will, by the end of FY 1995, permanently reduce the contingency reserve by an amount equal to the amount by which payments from the Fund during FY 1995 exceed the payments that would have been paid had this Act not been enacted. 
Provides for continuation of health benefits coverage for individuals enrolled in a plan administered by the Office of the Comptroller of the Currency or the Office of Thrift Supervision before the plan's termination on January 7, 1995.  Requires transfer of terminated plan funds to the Employees Health Benefit Fund to cover such employees.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``FEGLI Living Benefits Act''.

SEC. 2. OPTION TO RECEIVE ``LIVING BENEFITS''.

    (a) In General.--Chapter 87 of title 5, United States Code, is 
amended by inserting after section 8714c the following:

``Sec. 8714d. Option to receive `living benefits'

    ``(a) For the purpose of this section, an individual shall be 
considered to be `terminally ill' if such individual has a medical 
prognosis that such individual's life expectancy is 9 months or less.
    ``(b) The Office of Personnel Management shall prescribe 
regulations under which any individual covered by group life insurance 
under section 8704(a) may, if such individual is terminally ill, elect 
to receive a lump-sum payment equal to--
        ``(1) the full amount of insurance under section 8704(a) (or 
    portion thereof designated for this purpose under subsection 
    (d)(4)) which would otherwise be payable under this chapter (on the 
    establishment of a valid claim)--
            ``(A) computed based on a date determined under regulations 
        of the Office (but not later than 30 days after the date on 
        which the individual's application for benefits under this 
        section is approved or deemed approved under subsection 
        (d)(3)); and
            ``(B) assuming continued coverage under this chapter at 
        that time;
    reduced by
        ``(2) an amount necessary to assure that there is no increase 
    in the actuarial value of the benefit paid (as determined under 
    regulations of the Office).
    ``(c)(1) If a lump-sum payment is taken under this section--
        ``(A) no insurance under the provisions of section 8704 (a) or 
    (b) shall be payable based on the death or any loss of the 
    individual involved, unless the lump-sum payment represents only a 
    portion of the total benefits which could have been taken, in which 
    case benefits under those provisions shall remain in effect, except 
    that the basic insurance amount on which they are based--
            ``(i) shall be reduced by the percentage which the 
        designated portion comprised relative to the total benefits 
        which could have been taken (rounding the result to the nearest 
        multiple of $1,000 or, if midway between multiples of $1,000, 
        to the next higher multiple of $1,000); and
            ``(ii) shall not be subject to further adjustment; and
        ``(B) deductions and withholdings under section 8707, and 
    contributions under section 8708, shall be terminated with respect 
    to such individual (or reduced in a manner consistent with the 
    percentage reduction in the individual's basic insurance amount, if 
    applicable), effective with respect to any amounts which would 
    otherwise become due on or after the date of payment under this 
    section.
    ``(2) An individual who takes a lump-sum payment under this section 
(whether full or partial) remains eligible for optional benefits under 
sections 8714a-8714c (subject to payment of the full cost of those 
benefits in accordance with applicable provisions of the section or 
sections involved, to the same extent as if no election under this 
section had been made).
    ``(d)(1) The Office's regulations shall include provisions 
regarding the form and manner in which an application under this 
section shall be made and the procedures in accordance with which any 
such application shall be considered.
    ``(2) An application shall not be considered to be complete unless 
it includes such information and supporting evidence as the regulations 
require, including certification by an appropriate medical authority as 
to the nature of the individual's illness and that the individual is 
not expected to live more than 9 months because of that illness.
    ``(3)(A) In order to ascertain the reliability of any medical 
opinion or finding submitted as part of an application under this 
section, the covered individual may be required to submit to a medical 
examination under the direction of the agency or entity considering the 
application. The individual shall not be liable for the costs 
associated with any examination required under this subparagraph.
    ``(B) Any decision by the reviewing agency or entity with respect 
to an application for benefits under this section (including one 
relating to an individual's medical prognosis) shall not be subject to 
administrative review.
    ``(4)(A) An individual making an election under this section may 
designate that only a limited portion (expressed as a multiple of 
$1,000) of the total amount otherwise allowable under this section be 
paid pursuant to such election.
    ``(B) A designation under this paragraph may not be made by an 
individual described in paragraph (1) or (2) of section 8706(b).
    ``(5) An election to receive benefits under this section shall be 
irrevocable, and not more than one such election may be made by any 
individual.
    ``(6) The regulations shall include provisions to address the 
question of how to apply section 8706(b)(3)(B) in the case of an 
electing individual who has attained 65 years of age.''.
    (b) Table of Sections.--The table of sections for chapter 87 of 
title 5, United States Code, is amended by inserting after the item 
relating to section 8714c the following:
``8714d. Option to receive `living benefits'.''.

SEC. 3. EFFECTIVE DATE; OPEN SEASON AND NOTICE.

    (a) Effective Date.--The amendments made by section 2 shall take 
effect 9 months after the date of the enactment of this Act.
    (b) Open Season; Notice.--(1) The Office of Personnel Management 
shall prescribe regulations under which, beginning not later than 9 
months after the date of the enactment of this Act, and over a period 
of not less than 8 weeks--
        (A) an employee (as defined by section 8701(a) of title 5, 
    United States Code) who declined or voluntarily terminated coverage 
    under chapter 87 of such title--
            (i) may elect to begin, or to resume, group life insurance 
        and group accidental death and dismemberment insurance; and
            (ii) may make such other elections under such chapter as 
        the Office may allow; and
        (B) such other elections as the Office allows may be made.
    (2) The Office shall take such action as may be necessary to ensure 
that employees and any other individuals who would be eligible to make 
an election under this subsection are afforded advance notification to 
that effect.

SEC. 4. FUNDING.

    Notwithstanding section 8714(a)(1) of title 5, United States Code, 
the Office of Personnel Management shall retain in the Employees' Life 
Insurance Fund such portion of premium payments otherwise due as will, 
no later than September 30, 1995, permanently reduce the contingency 
reserve established under the third sentence of section 8712 of such 
title 5 by an amount equal to the amount by which payments from the 
Employees' Life Insurance Fund during the fiscal year ending September 
30, 1995, exceed the payments that would have been paid had the 
amendments made by this Act not been enacted.
SEC. 5. CONTINUATION OF HEALTH BENEFITS COVERAGE FOR INDIVIDUALS 
ENROLLED IN A PLAN ADMINISTERED BY THE OFFICE OF THE COMPTROLLER OF THE 
CURRENCY OR THE OFFICE OF THRIFT SUPERVISION.
    (a) Enrollment in Chapter 89 Plan.--For purposes of the 
administration of chapter 89 of title 5, United States Code, any period 
of enrollment under a health benefits plan administered by the Office 
of the Comptroller of the Currency or the Office of Thrift Supervision 
before the termination of such plans on January 7, 1995, shall be 
deemed to be a period of enrollment in a health benefits plan under 
chapter 89 of such title.
    (b) Continued Coverage.--(1) Any individual who, on January 7, 
1995, is covered by a health benefits plan administered by the Office 
of the Comptroller of the Currency or the Office of Thrift Supervision 
may enroll in an approved health benefits plan described under section 
8903 or 8903a of title 5, United States Code--
        (A) either as an individual or for self and family, if such 
    individual is an employee, annuitant, or former spouse as defined 
    under section 8901 of such title; and
        (B) for coverage effective on and after January 8, 1995.
    (2) An individual who, on January 7, 1995, is entitled to continued 
coverage under a health benefits plan administered by the Office of the 
Comptroller of the Currency or the Office of Thrift Supervision--
        (A) shall be deemed to be entitled to continued coverage under 
    section 8905a of title 5, United States Code, for the same period 
    that would have been permitted under the plan administered by the 
    Office of the Comptroller of the Currency or the Office of Thrift 
    Supervision; and
        (B) may enroll in an approved health benefits plan described 
    under section 8903 or 8903a of such title in accordance with 
    section 8905a of such title for coverage effective on and after 
    January 8, 1995.
    (3) An individual who, on January 7, 1995, is covered as an 
unmarried dependent child under a health benefits plan administered by 
the Office of the Comptroller of the Currency or the Office of Thrift 
Supervision and who is not a member of family as defined under section 
8901(5) of title 5, United States Code--
        (A) shall be deemed to be entitled to continued coverage under 
    section 8905a of such title as though the individual had, on 
    January 7, 1995, ceased to meet the requirements for being 
    considered an unmarried dependent child under chapter 89 of such 
    title; and
        (B) may enroll in an approved health benefits plan described 
    under section 8903 or 8903a of such title in accordance with 
    section 8905a for continued coverage effective on and after January 
    8, 1995.
    (c) Transfers to the Employees Health Benefits Fund.--The Office of 
the Comptroller of the Currency and the Office of Thrift Supervision 
shall transfer to the Employees Health Benefits Fund established under 
section 8909 of title 5, United States Code, amounts determined by the 
Director of the Office of Personnel Management, after consultation with 
the Office of the Comptroller of the Currency and the Office of Thrift 
Supervision, to be necessary to reimburse the Fund for the cost of 
providing benefits under this section not otherwise paid for by the 
individuals covered by this section. The amounts so transferred shall 
be held in the Fund and used by the Office in addition to amounts 
available under section 8906(g)(1) of such title.
    (d) Administration and Regulations.--The Office of Personnel 
Management--
        (1) shall administer the provisions of this section to provide 
    for--
            (A) a period of notice and open enrollment for individuals 
        affected by this section; and
            (B) no lapse of health coverage for individuals who enroll 
        in a health benefits plan under chapter 89 of title 5, United 
        States Code, in accordance with this section; and
        (2) may prescribe regulations to implement this section.







                               Speaker of the House of Representatives.







                            Vice President of the United States and    
                                               President of the Senate.