This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

76615 

Vol. 75, No. 236 

Thursday, December 9, 2010 

OFFICE OF PERSONNEL 

MANAGEMENT 

5 CFR Parts 890 and 892 

RIN 3206–AL95 

Federal Employees Health Benefits 

Program Miscellaneous Changes 

AGENCY: U.S. Office of Personnel 

Management. 

ACTION: Final rule. 

SUMMARY: The U.S. Office of Personnel 

Management (OPM) is issuing a final 

regulation to provide for continuation of 

Federal Employees Health Benefits 

(FEHB) coverage for certain former 

Senate Restaurant employees who 

transferred to employment with a 

private contractor; to add a new 

opportunity for eligible employees to 

enroll in the FEHB, or to change FEHB 

enrollment status, under provisions of 

the Children’s Health Insurance 

Program Reauthorization Act of 2009; 

and to allow eligible FEHB plans to offer 

three options, without the requirement 

that one of the options be a high 

deductible health plan. 

DATES: Effective December 9, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Ronald Brown, Policy Analyst, at (202) 

606–0004 or e-mail: 

ronald.brown@opm.gov. 

SUPPLEMENTARY INFORMATION: On April 

19, 2010, OPM published proposed 

regulations (75 FR 20314) with 

miscellaneous changes, clarifications, 

and corrections. We received several 

comments requesting that the proposed 

change to FEHB Open Season dates 

begin in 2011 rather than in 2010. We 

received several comments that 

changing the FEHB Open Season dates 

to November 1st through November 

30th each year may result in employee 

confusion and additional administrative 

inconvenience because the Open Season 

will end immediately after the 

Thanksgiving holiday weekend, instead 

of ending the second full work week in 

December. Additionally, there was one 

comment that the Open Season could 

begin or end on a weekend, instead of 

a week day as is currently the case. We 

also received a comment that enrollees 

eligible for Medicare would have less 

flexibility to make health plan decisions 

if the FEHB Open Season dates ended 

in November. Currently, Medicare 

enrollees have from November 15 to 

December 31 to make changes in their 

Medicare coverage. Changing the FEHB 

Open Season dates would adversely 

affect this important segment of the 

FEHB population. Therefore, we have 

decided not to amend this provision of 

the FEHB regulations. 

One commenter asked that we 

continue the High Deductible Health 

Plans (HDHPs), including Health 

Savings Accounts, within the FEHB. We 

do not have any plans to discontinue 

offering HDHPs as a choice under the 

Program. 

We received one comment from an 

FEHB Plan requesting permission to 

offer two benefit levels or, alternatively, 

three options without offering an HDHP. 

However, the Plan is allowed by Federal 

law to only offer two levels of benefits. 

The authority to permit the Plan to offer 

more than two levels of benefits is a 

matter for Congress to consider and 

enact, if it chooses to do so. While we 

continue to look for ways to ensure that 

the FEHB offers choice and value, we 

are unable to permit a carrier any 

flexibility not allowed by law. We have 

no administrative authority to permit 

this change by revised ruling. 

Background 

Senate Restaurants Employees 

Public Law 110–279, enacted July 17, 

2008, provides for certain Federal 

employee benefits to be continued for 

certain employees of the Senate 

Restaurants after the operations of the 

Senate Restaurants are contracted to be 

performed by a private business 

concern. The law provides that a Senate 

Restaurants employee, who was an 

employee of the Architect of the Capitol 

on the date of enactment and who 

accepted employment by the private 

business concern as part of the 

transition, may elect to continue certain 

Federal benefits during continuous 

employment with the business concern. 

We are revising the FEHB regulations to 

address coverage for these individuals 

pursuant to relevant of Public Law 110– 

279. We are adding § 890.112 to subpart 

A. 

New Enrollment Opportunities 

Public Law 111–3, the Children’s 

Health Insurance Program (CHIP) 

Reauthorization Act of 2009 (the Act), 

enacted on February 4, 2009, allows 

States to subsidize health insurance 

premium payments for certain lowincome children who have access to 

qualified employer-sponsored health 

insurance coverage. FEHB-eligible 

enrollees who meet the criteria for child 

health assistance are eligible to receive 

State premium subsidy assistance 

payments to help them pay for their 

FEHB plan premiums. Current FEHB 

Program regulations already allow an 

eligible enrollee who loses coverage 

under the FEHB Program or another 

group health plan, including loss of 

eligibility or assistance under Medicaid 

or CHIP, to enroll or change enrollment 

from self only to self and family within 

the period beginning 31 days before and 

ending 60 days after the date of loss of 

coverage. The Act provides new 

opportunities for eligible employees to 

enroll in the FEHB Program or to change 

enrollment from self only to self and 

family when the employee or an eligible 

family member becomes eligible for 

premium assistance under CHIP. 

Employees must request the change in 

enrollment within 60 days after the date 

the employee or eligible family member 

is determined to be eligible for 

assistance. Employees may make these 

enrollment changes regardless of 

whether they are covered under 

premium conversion (pay premiums 

with pre-tax dollars). We are amending 

the regulations to reflect this enrollment 

opportunity. We are adding 

§ 890.301(m). 

Change in Options Offered 

The current regulations state that an 

FEHB plan shall not have more than two 

options and a high deductible health 

plan. We are revising the regulations to 

allow employee organization plans and 

health maintenance organizations to 

both offer two options and a high 

deductible health plan or to offer three 

options, without the requirement that 

one of the options be a high deductible 

health plan. These plans are eligible by 

statute to offer more than two options. 


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76616 Federal Register / Vol. 75, No. 236 / Thursday, December 9, 2010 / Rules and Regulations 

This change will provide for more 

flexibility in contracting with health 

plans for modern types of benefits. 

These changes can be found in 

890.201(b)(3)(i) and 890.201(b)(3)(ii). 

Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(PRA) imposes certain requirements on 

Federal agencies in connection with 

their conducting or sponsoring any 

collection of information as defined by 

the PRA. Certain provisions of this final 

rulemaking would result in new 

collection of information requirements 

within the meaning of the PRA. The 

Office of Personnel Management (OPM) 

therefore is revising a health benefits 

election form, Standard Form 2809. 

In the future, the OPM intends to 

publish a 60-day Federal Register 

Notice including the revised form that 

ties to this final rulemaking. The 

information collected in the notice will 

be submitted to the Office of 

Management and Budget (OMB) for 

review. The OMB assigned collection 

control number for this form is: 3206– 

0160. 

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 

health insurance benefits of Federal 

employees and annuitants. Executive 

Order 12866, 

Regulatory Review 

This rule has been reviewed by the 

Office of Management and Budget in 

accordance with Executive Order 12866. 

Federalism 

We have examined this rule in 

accordance with Executive Order 13132, 

Federalism, and have determined that 

this rule will not have any negative 

impact on the rights, roles, and 

responsibilities of State, local, or Tribal 

governments. 

List of Subjects in 5 CFR Parts 890 and 

892 

Administrative practice and 

procedure, Employee benefit plans, 

Government employees, Reporting and 

recordkeeping requirements, 

Retirement. 

U.S. Office of Personnel Management. 

John Berry, 

Director. 

■ Accordingly, OPM is amending 5 CFR 

part 890 and part 892 as follows: 

PART 890—FEDERAL EMPLOYEES 

HEALTH BENEFITS PROGRAM 

■ 1. The authority citation for part 890 

is revised to read as follows: 

Authority: 5 U.S.C. 8913; Sec. 890.301 

also issued under sec. 311 of Pub. L. 111–03, 

123 Stat. 64; Sec. 890.111 also issued under 

section 1622(b) of Pub. L. 104–106, 110 Stat. 

521; Sec. 890.112 also issued under section 

1 of Pub. L. 110–279, 122 Stat. 2604; 5 U.S.C. 

8913; Sec. 890.803 also issued under 50 

U.S.C. 403p, 22 U.S.C. 4069c and 4069c–1; 

subpart L also issued under sec. 599C of Pub. 

L. 101–513, 104 Stat. 2064, as amended; Sec. 

890.102 also issued under sections 11202(f), 

11232(e), 11246 (b) and (c) of Pub. L. 105– 

33, 111 Stat. 251; and section 721 of Pub. L. 

105–261, 112 Stat. 2061. 

Subpart A—Administration and 

General Provisions 

■ 2. Add § 890.112 to subpart A to read 

as follows: 

§ 890.112 Continuation of coverage for 

certain Senate Restaurants employees. 

(a) A Senate Restaurants employee 

who was an employee of the Architect 

of the Capitol on July 17, 2008, who 

accepted employment with the private 

business concern to which the Senate 

Restaurants’ food service operations 

were transferred as described in section 

1 of Public Law 110–279, and who 

elected to continue his or her Federal 

employee retirement benefits is deemed 

to be an employee for purposes of this 

part during continuous employment 

with the private business concern or its 

successor. The individual shall be 

entitled to the benefits of, and be subject 

to all conditions under, the FEHB 

Program on the same basis as if the 

individual were an employee of the 

Federal Government. 

(b) Cessation of employment with the 

private business concern or its successor 

for any period terminates eligibility for 

coverage under the FEHB Program as an 

employee during any subsequent 

employment by the private business 

concern. 

(c) The private business concern or its 

successor must make arrangements for 

the withholding from pay of an 

individual described by paragraph (a) of 

this section of an amount equal to the 

premiums withheld from Federal 

employees’ pay for FEHB coverage and, 

in accordance with procedures 

established by OPM, pay into the 

Employees Health Benefits Fund the 

amounts deducted from the individual’s 

pay. 

(d) The private business concern or its 

successor shall, in accordance with 

procedures established by OPM, pay 

into the Employees Health Benefits 

Fund amounts equal to any agency 

contributions required under the FEHB 

Program. 

Subpart B—Health Benefits Plans 

■ 3. Revise § 890.201(b)(3) to read as 

follows: 

§ 890.201 Minimum standards for health 

benefits plans. 

* * * * * 

(b) * * * 

(3)(i) Have more than two options and 

a high deductible health plan (26 U.S.C. 

223(c)(2)(A)) if the plan is described 

under 5 U.S.C. 8903(1) or (2); or 

(ii) Have either more than three 

options, or more than two options and 

a high deductible health plan (26 U.S.C. 

223(c)(2)(A)) if the plan is described 

under 5 U.S.C. 8903(3) or (4). 

* * * * * 

Subpart C—Enrollment 

■ 4. Add a new paragraph (m) to 

§ 890.301 to read as follows: 

§ 890.301 Opportunities for employees 

who are not participants in premium 

conversion to enroll or change enrollment; 

effective dates. 

* * * * * 

(m) An employee or eligible family 

member becomes eligible for premium 

assistance under Medicaid or a State 

Children’s Health Insurance Program 

(CHIP). An eligible employee may enroll 

and an enrolled employee may change 

his or her enrollment from self only to 

self and family, from one plan or option 

to another, or make any combination of 

these changes when the employee or an 

eligible family member of the employee 

becomes eligible for premium assistance 

under a Medicaid plan or CHIP. An 

employee must enroll or change his or 

her enrollment within 60 days after the 

date the employee or family member is 

determined to be eligible for assistance. 

PART 892—FEDERAL FLEXIBLE 

BENEFITS PLAN: PRE-TAX PAYMENT 

OF HEALTH BENEFITS PREMIUMS 

■ 5. The authority citation for part 892 

is revised to read as follows: 

Authority: 5 U.S.C 8913; 5 U.S.C. 

1103(a)(7); 26 U.S.C. 125; Sec. 892.101 also 

issued under sec. 311 of Pub. L. 111–3, 123 

Stat. 64. 

Subpart A—Administration and 

General Provisions 

■ 6. In § 892.101, amend the definition 

of qualifying life event by adding a new 

paragraph (13) to read as follows: 

§ 892.101 Definitions. 

* * * * * 


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Federal Register / Vol. 75, No. 236 / Thursday, December 9, 2010 / Rules and Regulations 76617 

1FHFA also relocated the part 925 regulations to 

part 1263 of the FHFA’s regulations. 75 FR 678. 

Qualifying life event * * * 

(13) An employee or eligible family 

member becomes eligible for premium 

assistance under Medicaid or a State 

Children’s Health Insurance Program 

(CHIP). An eligible employee may enroll 

and an enrolled employee may change 

his or her enrollment from self only to 

self and family, from one plan or option 

to another, or make any combination of 

these changes when the employee or an 

eligible family member of the employee 

becomes eligible for premium assistance 

under a Medicaid plan or a State 

Children’s Health Insurance Program. 

An employee must enroll or change his 

or her enrollment within 60 days after 

the date the employee or family member 

is determined to be eligible for 

assistance. 

[FR Doc. 2010–30962 Filed 12–8–10; 8:45 am] 

BILLING CODE 6325–39–P 

FEDERAL HOUSING FINANCE BOARD 

12 CFR Parts 950 and 980 

FEDERAL HOUSING FINANCE 

AGENCY 

12 CFR Parts 1264, 1266, 1269, and 

1272 

RIN 2590–AA24 

Use of Community Development Loans 

by Community Financial Institutions 

To Secure Advances; Secured Lending 

by Federal Home Loan Banks to 

Members and Their Affiliates; Transfer 

of Advances and New Business 

Activity Regulations 

AGENCY: Federal Housing Finance 

Board, Federal Housing Finance 

Agency. 

ACTION: Final rule. 

SUMMARY: Section 1211 of the Housing 

and Economic Recovery Act of 2008 

(HERA) amended the Federal Home 

Loan Bank Act (Bank Act) to expand the 

types of eligible collateral that 

community financial institution (CFI) 

members may pledge to secure Federal 

Home Loan Bank (Bank) advances to 

include secured loans for community 

development activities and to allow 

Banks to make long term advances to 

CFI members for purposes of financing 

community development activities. 

Section 1211 further provides that the 

Federal Housing Finance Agency 

(FHFA) shall define the term 

‘‘community development activities’’ by 

regulation. To implement these 

provisions, FHFA is amending the 

advances regulation to allow CFI 

members to pledge community 

development loans as collateral for 

advances and is adopting a definition of 

‘‘community development’’ as proposed. 

The final rule also will transfer the 

advances and new business activities 

rules from parts 950 and 980 of the 

Federal Housing Finance Board (FHFB) 

regulations, to new parts 1266 and 1272 

of the FHFA regulations, respectively, 

and make other conforming 

amendments. Finally, the final rule will 

make a change to the advances 

regulation to incorporate a longstanding policy previously established 

by the FHFB that secured lending to a 

member of any Bank is an advance that 

must meet the requirements of the 

advances regulation. The final rule 

language has been clarified to assure 

that certain types of transactions, such 

as derivatives, will not be considered 

secured lending for the purposes of this 

provision. The new provision 

addressing secured lending does not 

include a prohibition on secured 

transactions with affiliates of members, 

as was initially proposed. 

DATES: The final rule is effective on 

January 10, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Thomas E. Joseph, Senior Attorney 

Advisor, thomas.joseph@fhfa.gov, (202) 

414–3095 (not a toll-free number); 

Office of General Counsel, Federal 

Housing Finance Agency, Fourth Floor, 

1700 G Street, NW., Washington, DC 

20552; or Julie Paller, Senior Financial 

Analyst, julie.paller@fhfa.gov, 202–408– 

2842 (not a toll-free number); Division 

of Federal Home Loan Bank Regulation, 

Federal Housing Finance Agency, 1625 

Eye Street, NW., Washington, DC 20006. 

The telephone number for the 

Telecommunications Device for the 

Hearing Impaired is (800) 877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. Establishment of FHFA 

Effective July 30, 2008, Division A of 

HERA, Public Law 110–289, 122 Stat. 

2654 (2008), created FHFA as an 

independent agency of the Federal 

government. HERA transferred the 

supervisory and oversight 

responsibilities over the Federal 

National Mortgage Association (Fannie 

Mae), the Federal Home Loan Mortgage 

Corporation (Freddie Mac) (collectively, 

Enterprises), the Banks, and the Bank 

System’s Office of Finance, from the 

Office of Federal Housing Enterprise 

Oversight (OFHEO) and the FHFB to 

FHFA. FHFA is responsible for ensuring 

that the Enterprises and the Banks 

operate in a safe and sound manner, 

including being capitalized adequately, 

and that they carry out their public 

policy missions, including fostering 

liquid, efficient, competitive, and 

resilient national housing finance 

markets. The Enterprises and the Banks 

continue to operate under regulations 

promulgated by OFHEO and FHFB until 

FHFA issues its own regulations. See 

section 1302 Public Law 110–289, 122 

Stat. 2795. 

B. Statutory and Regulatory Background 

Each Bank is a cooperative institution 

that is owned by its members. Any 

eligible institution (generally a federally 

insured depository institution or stateregulated insurance company) may 

become a member of a Bank if it satisfies 

certain criteria and purchases a 

specified amount of the Bank’s capital 

stock. 12 U.S.C. 1424, 1426; 12 CFR part 

1263. Only members or certain eligible 

housing associates (such as state 

housing finance agencies) may obtain 

access to secured loans, known as 

advances, or other products provided by 

a Bank. 12 U.S.C. 1426(a)(4), 1430(a), 

1430b. 

Prior to HERA, CFIs were defined 

under the Bank Act as depository 

institutions insured under the Federal 

Deposit Insurance Act (12 U.S.C. 1811 et 

seq.) with average total assets of less 

than $500 million, as adjusted annually 

for inflation thereafter. 12 U.S.C. 

1422(13) (2008). Section 1211 of HERA 

raised the $500 million average total 

assets cap to $1 billion. See section 1211 

Public Law No. 110–289, 122 Stat. 2790 

(amending 12 U.S.C. 1422(10)). By 

Notice published in the Federal 

Register in February 2009, FHFA 

adjusted the $1 billion figure for 

inflation to $1.011 billion. 74 FR 7438 

(Feb. 17, 2009). As part of FHFA’s 

separate rulemaking addressing Bank 

membership for community 

development financial institutions, 

FHFA included a technical amendment 

to the definition of ‘‘CFI’’ to implement 

the average total asset cap increase to $1 

billion made by HERA.1 See 74 FR 

22848, 22857 (May 15, 2009); 75 FR 678, 

691 (Jan. 5, 2010). 

Under the Bank Act, any member, 

including a CFI, that wishes to borrow 

from its Bank must pledge certain types 

of collateral to secure its repayment 

obligation on advances, and must 

otherwise demonstrate to the Bank that 

it is creditworthy. 12 U.S.C. 1430(a). 

Each Bank sets its own lending and 

collateral policies, which may vary from 

Bank to Bank and will apply to all 

borrowing members of that Bank. Prior 

to HERA, section 10(a)(3) of the Bank 


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