I 

118TH CONGRESS 

2D SESSION H. R. 7337 

To provide a short-term disability insurance program for Federal employees 

for disabilities that are not work-related, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 13, 2024 

Ms. NORTON introduced the following bill; which was referred to the 

Committee on Oversight and Accountability 

A BILL 

To provide a short-term disability insurance program for 

Federal employees for disabilities that are not workrelated, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Employee 

5 Short-Term Disability Insurance Act of 2024’’. 

6 SEC. 2. PURPOSE. 

7 The purpose of this Act is to offer voluntary insur8 ance to Federal employees for protection against the loss 

9 of pay resulting from— 

10 (1) short-term injury or disability; 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
2 

•HR 7337 IH

1 (2) short-term leave taken for the purpose of 

2 caring for a family member; 

3 (3) the birth of a child of such an employee; or 

4 (4) making arrangements to adopt a child or to 

5 become a foster parent. 

6 SEC. 3. NON-WORK RELATED DISABILITY INSURANCE. 

7 (a) IN GENERAL.—Title 5, United States Code, is 

8 amended by inserting after chapter 87 the following: 

9 ‘‘CHAPTER 88—NON-WORK RELATED 

10 SHORT-TERM DISABILITY INSURANCE 

‘‘Sec. 

‘‘8801. Definitions. 

‘‘8802. Availability of insurance. 

‘‘8803. Contracting authority. 

‘‘8804. Benefits. 

‘‘8805. Premiums. 

‘‘8806. Preemption. 

‘‘8807. Studies, reports, and audits. 

‘‘8808. Jurisdiction of courts. 

‘‘8809. Administrative functions. 

‘‘8810. Cost accounting standards. 

11 ‘‘§ 8801. Definitions 

12 ‘‘For purposes of this chapter— 

13 ‘‘(1) the term ‘Director’ means the Director of 

14 the Office of Personnel Management; 

15 ‘‘(2) the term ‘employee’ means— 

16 ‘‘(A) an employee defined in section 

17 8901(1); and 

18 ‘‘(B) an officer or employee of the United 

19 States Postal Service or of the Postal Regu20 latory Commission; 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
3 

•HR 7337 IH

1 ‘‘(3) the term ‘injury or disability’, with respect 

2 to an employee, means that such employee is unable 

3 to perform the essential functions of such employee’s 

4 position of employment with the Federal Govern5 ment; 

6 ‘‘(4) the term ‘member of family’ has the mean7 ing given such term in section 8901(5); 

8 ‘‘(5) the term ‘carrier’ means an insurance 

9 company that is licensed to issue disability insurance 

10 in all States, taking into account any subsidiaries or 

11 affiliates of such a company; and 

12 ‘‘(6) the term ‘State’ includes the District of 

13 Columbia. 

14 ‘‘§ 8802. Availability of insurance 

15 ‘‘(a) The Director shall establish and administer a 

16 program to make insurance coverage available under this 

17 chapter— 

18 ‘‘(1) for an injury or disability not covered 

19 under chapter 81; 

20 ‘‘(2) for leave to care for, or leave to make ar21 rangements to care for, a member of family, includ22 ing the birth of a child; and 

23 ‘‘(3) for leave to make arrangements— 

24 ‘‘(A) to become a foster parent; or 

25 ‘‘(B) to adopt a child. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
4 

•HR 7337 IH

1 ‘‘(b) Insurance shall not be available under this chap2 ter if the injury or disability of an employee is— 

3 ‘‘(1) caused by willful misconduct of such em4 ployee; 

5 ‘‘(2) caused by such employee’s intention to 

6 bring about such injury or disability to himself or to 

7 another individual; or 

8 ‘‘(3) proximately caused by the intoxication of 

9 such employee. 

10 ‘‘(c) In addition to the requirements otherwise appli11 cable under section 8801(5), an insurance contract under 

12 this chapter must be fully insured, whether through rein13 surance with other carriers or otherwise. 

14 ‘‘§ 8803. Contracting authority 

15 ‘‘(a) The Director shall, without regard to any statute 

16 requiring competitive bidding, contract with one or more 

17 carriers for a policy or policies of disability insurance as 

18 described under this chapter. The Director shall ensure 

19 that each resulting contract is awarded on the basis of 

20 contractor qualifications, price, and reasonable competi21 tion. 

22 ‘‘(b)(1) Each contract under this section shall con23 tain— 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
5 

•HR 7337 IH

1 ‘‘(A) a detailed statement of the benefits of2 fered (including any maximums, limitations, exclu3 sions, and other definitions of benefits); 

4 ‘‘(B) the premiums charged (including any limi5 tations or other conditions on their subsequent ad6 justment); 

7 ‘‘(C) the duration of the enrollment period; and 

8 ‘‘(D) such other terms and conditions (includ9 ing procedures for establishing eligibility for insur10 ance under this chapter) as may be determined by 

11 the Director, consistent with the requirements of 

12 this chapter. 

13 ‘‘(2) Premiums charged under a contract under this 

14 section shall reasonably and equitably reflect the cost of 

15 the benefits provided, as determined by the Director. 

16 ‘‘(c)(1) Each contract under this section shall require 

17 the carrier— 

18 ‘‘(A) to provide payments or benefits described 

19 in section 8804(c) to an employee if such employee 

20 is entitled thereto under the terms of the contract; 

21 and 

22 ‘‘(B) with respect to disputes regarding claims 

23 for payments or benefits under the terms of the con24 tract— 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
6 

•HR 7337 IH

1 ‘‘(i) to establish internal procedures de2 signed to resolve such disputes expeditiously; 

3 and 

4 ‘‘(ii) to establish, for disputes not resolved 

5 through procedures under clause (i), procedures 

6 for one or more alternative means of dispute 

7 resolution involving independent third-party re8 view under circumstances acceptable to the Di9 rector. 

10 ‘‘(2) The carrier’s determination as to whether or not 

11 a particular employee is eligible to obtain insurance cov12 erage under this chapter shall be subject to review to the 

13 extent and in the manner provided in the applicable con14 tract. 

15 ‘‘(3) Nothing in this chapter shall be considered to 

16 grant authority for a third-party reviewer to change the 

17 terms of any contract under this chapter. 

18 ‘‘(d)(1) Each contract under this section shall be for 

19 a term of not less than 3 years and not greater than 7 

20 years, and may be terminated earlier than the termination 

21 date of such contract by the Director in accordance with 

22 the terms of such contract. However, the rights and re23 sponsibilities of the enrolled employee, the insurer, and the 

24 Director under each contract shall continue with respect 

25 to such employee until the termination of coverage of the 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
7 

•HR 7337 IH

1 enrolled employee or the effective date of a successor con2 tract. 

3 ‘‘(2) A contract described in paragraph (1) may be 

4 made automatically renewable, for a term of 1 year each 

5 January 1, unless written notice of non-renewal is given 

6 either by the Director or the carrier not less than 180 

7 days before the renewal date, or unless modified by mutual 

8 agreement. 

9 ‘‘(3) A contract described in paragraph (1) shall in10 clude such provisions as may be necessary to ensure that, 

11 once an employee becomes duly enrolled, insurance cov12 erage pursuant to that enrollment shall be terminated only 

13 if the individual is separated from Federal service or, 

14 where appropriate, for non-payment of premiums. 

15 ‘‘§ 8804. Benefits 

16 ‘‘(a) The Director may prescribe reasonable minimum 

17 standards for benefit plans offered under this chapter. 

18 ‘‘(b)(1) Benefits provided to an employee under this 

19 chapter shall offset other benefits received by such em20 ployee for the same injury or disability, leave to care for 

21 or make arrangements to care for a member of family (in22 cluding the birth of a child), or leave to make arrange23 ments to adopt a child or become a foster parent including 

24 worker’s compensation and disability retirement income. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
8 

•HR 7337 IH

1 ‘‘(2) A contract providing benefits under this chap2 ter— 

3 ‘‘(A) shall not provide for a preexisting condi4 tion exclusion; and 

5 ‘‘(B) shall not charge higher premiums, deny 

6 coverage, or drop coverage of an employee with a 

7 preexisting condition. 

8 ‘‘(3) A contract providing benefits under this chapter 

9 shall provide incentives for an employee who is receiving 

10 benefits under such contract to return to work. 

11 ‘‘(c)(1) For each instance that such employee suffers 

12 an injury or disability, takes leave to care for or make 

13 arrangements to care for a member of family (including 

14 the birth of a child), or takes leave to make arrangements 

15 to adopt a child or become a foster parent, and is eligible 

16 for benefits under this chapter, such employee may receive 

17 benefits under this chapter for a period not to exceed 12 

18 months beginning on the date on which such employee 

19 qualifies for such benefits. An employee shall receive such 

20 benefits after the expiration of the waiting period selected 

21 by such employee under paragraph (2)(A). The amount 

22 of benefits shall be equal to the lesser of— 

23 ‘‘(A) 70 percent of the annual rate of pay, ex24 cluding bonuses, of an employee at the time of the 

25 injury or disability of such employee occurs; or 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
9 

•HR 7337 IH

1 ‘‘(B) 70 percent of the maximum rate of basic 

2 pay provided for grade GS–15 of the General Sched3 ule. 

4 ‘‘(2)(A) The period for which benefits are payable to 

5 an employee under this subsection shall begin after the 

6 completion of a waiting period, subject to the requirement 

7 in subparagraph (C). An employee shall elect one of the 

8 following waiting period options: 

9 ‘‘(i) On the 8th day of continuous injury or dis10 ability, leave to care for or to make arrangements to 

11 care for a member of family (including the birth of 

12 a child), or leave to make arrangements to adopt a 

13 child or become a foster parent. 

14 ‘‘(ii) On the 31st day of continuous disability, 

15 leave to care for or to make arrangements to care 

16 for a member of family (including the birth of a 

17 child), or leave to make arrangements to adopt a 

18 child or become a foster parent. 

19 ‘‘(iii) On the 91st day of continuous disability, 

20 leave to care for or to make arrangements to care 

21 for a member of family (including the birth of a 

22 child), or leave to make arrangements to adopt a 

23 child or become a foster parent. 

24 ‘‘(iv) On the 181st day of continuous disability, 

25 leave to care for or to make arrangements to care 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
10 

•HR 7337 IH

1 for a member of family (including the birth of a 

2 child), or leave to make arrangements to adopt a 

3 child or become a foster parent. 

4 ‘‘(B) An employee who elects to receive benefits ear5 lier shall pay a higher premium. 

6 ‘‘(C) A waiting period selected under subparagraph 

7 (A) shall begin on the first day of an employee’s injury 

8 or disability. 

9 ‘‘§ 8805. Premiums 

10 ‘‘(a) Each eligible individual obtaining insurance cov11 erage under this chapter shall be responsible for 100 per12 cent of the premiums for such coverage. 

13 ‘‘(b) The amount necessary to pay the premiums for 

14 enrollment shall be withheld from the pay of the enrolled 

15 individual. 

16 ‘‘(c) The carrier participating under this chapter 

17 shall maintain records that permit it to account for all 

18 amounts received under this chapter (including investment 

19 earnings on those amounts) separate and apart from all 

20 other funds. 

21 ‘‘(d)(1)(A) The Employees’ Life Insurance Fund is 

22 available, without fiscal year limitation, for reasonable ex23 penses incurred in administering this chapter before the 

24 start of the first term described in section 8803(d)(1), in25 cluding reasonable implementation costs. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
11 

•HR 7337 IH

1 ‘‘(B) Such Fund shall be reimbursed, before the end 

2 of the first year of a contract described in section 

3 8803(d)(1), for all amounts obligated or expended under 

4 subparagraph (A) (including lost investment income). Re5 imbursement under this subparagraph shall be made by 

6 the carrier in accordance with applicable provisions in7 cluded in the relevant contract. 

8 ‘‘(C)(i) There is hereby established in the Employees’ 

9 Life Insurance Fund a Non-Work Related Disability In10 surance Administrative Account, which shall be available 

11 to the Office of Personnel Management, without fiscal 

12 year limitation, to defray reasonable expenses incurred by 

13 the Office in administering this chapter after the start of 

14 the first term described in section 8803(d)(1). 

15 ‘‘(ii) A contract under this chapter shall include ap16 propriate provisions under which the carrier involved shall, 

17 during each year, make such periodic contributions to the 

18 Non-Work Related Disability Insurance Administrative 

19 Account as necessary to ensure that the reasonable antici20 pated expenses of the Office of Personnel Management in 

21 administering this chapter during such year (adjusted to 

22 reconcile for any earlier overestimates or underestimates 

23 under this subparagraph) are defrayed. 

24 ‘‘(e) Nothing in this chapter shall, in the case of an 

25 enrolled individual applying for an extension of insurance 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
12 

•HR 7337 IH

1 coverage under this chapter after the expiration of such 

2 enrolled individual’s first opportunity to enroll, preclude 

3 the application of underwriting standards for later enroll4 ment. 

5 ‘‘§ 8806. Preemption 

6 ‘‘(a) The terms of any contract under this chapter 

7 which relate to the nature, provision, or extent of coverage 

8 or benefits (including payments with respect to benefits) 

9 shall supersede and preempt any State, territorial, tribal, 

10 or local law, or any regulation issued thereunder, which 

11 relates to non-work related disability insurance or con12 tracts. 

13 ‘‘(b)(1) No tax, fee, or other monetary payment may 

14 be imposed or collected, directly or indirectly, by any 

15 State, territory, tribe, or locality, or by any political sub16 division or other governmental authority thereof, on, or 

17 with respect to, any premium paid for an insurance policy 

18 under this chapter. 

19 ‘‘(2) Paragraph (1) shall not be construed to exempt 

20 any company or other entity issuing a policy of insurance 

21 under this chapter from the imposition, payment, or collec22 tion of a tax, fee, or other monetary payment on the net 

23 income or profit accruing to or realized by such entity 

24 from business conducted under this chapter, if that tax, 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
13 

•HR 7337 IH

1 fee, or payment is applicable to a broad range of business 

2 activity. 

3 ‘‘(c) No law of a State, territory, tribe, or locality, 

4 pertaining to subrogation or reimbursement with respect 

5 to benefits provided under this chapter, shall operate ex6 cept as expressly adopted by the Director. 

7 ‘‘§ 8807. Studies, reports, and audits 

8 ‘‘(a) A contract under this chapter shall contain pro9 visions requiring the carrier to furnish such reasonable re10 ports as the Director determines to be necessary to enable 

11 the Director to carry out the Director’s functions under 

12 this chapter. 

13 ‘‘(b) Each Federal agency shall keep such records, 

14 make such certifications, and furnish the Director, the 

15 carrier, or both, with such information and reports as the 

16 Director may require. 

17 ‘‘(c) The Director shall conduct periodic reviews of 

18 each plan under this chapter to ensure its competitiveness. 

19 ‘‘§ 8808. Jurisdiction of courts 

20 ‘‘The district courts of the United States have origi21 nal jurisdiction, concurrent with the United States Court 

22 of Federal Claims, of a civil action or claim against the 

23 United States under this chapter after such administrative 

24 remedies as required under section 8803(c) have been ex25 hausted, but only to the extent judicial review is not preVerDate Sep 11 2014 04:11 Feb 21, 2024 Jkt 049200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H7337.IH H7337

kjohnson on DSK7ZCZBW3PROD with $$_JOB
14 

•HR 7337 IH

1 cluded by any dispute resolution or other remedy under 

2 this chapter. 

3 ‘‘§ 8809. Administrative functions 

4 ‘‘(a)(1) Except as otherwise provided in this chapter, 

5 the Director shall prescribe regulations necessary to carry 

6 out this chapter and to make arrangements as necessary 

7 with other agencies and payroll systems to implement the 

8 program. 

9 ‘‘(2) Except as otherwise provided by law, the Direc10 tor shall specify in regulation the treatment of time spent 

11 by an individual in receipt of benefits under this chapter 

12 for the purposes of periodic increases in pay, retention 

13 purposes, and other rights, benefits, and conditions of em14 ployment for which length of service is a factor. 

15 ‘‘(b) The carrier shall provide for periodic coordinated 

16 enrollment, promotion, and education efforts, as specified 

17 by the Director. 

18 ‘‘§ 8810. Cost accounting standards 

19 ‘‘The cost accounting standards issued pursuant to 

20 section 1502 of title 41 shall not apply with respect to 

21 an insurance contract under this chapter.’’. 

22 (b) CONFORMING AMENDMENT.—Section 1005(f) of 

23 title 39, United States Code, is amended by inserting 

24 ‘‘88,’’ after ‘‘87,’’. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
15 

•HR 7337 IH

1 (c) CLERICAL AMENDMENT.—The analysis for part 

2 III of title 5, United States Code, is amended by adding 

3 at the end of subpart G the following: 

‘‘88. Non-Work Related Short-Term Disability 

Insurance .................................................................. 8801’’. 

4 (d) DATE OF APPLICATION.—The amendment made 

5 by subsection (a) shall apply to contracts that take effect 

6 with respect to the first calender year that begins more 

7 than 18 months after the date of enactment of this sec8 tion. 

Æ 


kjohnson on DSK7ZCZBW3PROD with $$_JOB