[Federal Register Volume 76, Number 163 (Tuesday, August 23, 2011)]
[Rules and Regulations]
[Pages 52539-52540]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-21396]


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OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 843

RIN 3206-AM29


Federal Employees' Retirement System; Present Value Conversion 
Factors for Spouses of Deceased Separated Employees

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing an interim 
rule to revise the table of reduction factors for early commencing 
dates of survivor annuities for spouses of separated employees who die 
before the date on which they would be eligible for unreduced deferred 
annuities, and to revise the annuity factor for spouses of deceased 
employees who die in service when those spouses elect to receive the 
basic employee death benefit in 36 installments under the Federal 
Employees' Retirement System (FERS) Act of 1986. These rules are 
necessary to ensure that the tables conform to the economic, 
demographic and mortality assumptions adopted by the Board of Actuaries 
and published in the Federal Register on June 3, 2011, as required by 5 
U.S.C. 8461(i).

DATES: This rule is effective August 23, 2011.

FOR FURTHER INFORMATION CONTACT: Roxann Johnson, (202) 606-0299.

SUPPLEMENTARY INFORMATION: OPM has published a notice in the Federal 
Register at 76 FR 32242 (June 3, 2011) to revise the normal cost 
percentages under the Federal Employees' Retirement System (FERS) Act 
of 1986, Public Law 99-335, 100 Stat. 514, as amended, based on 
economic assumptions, new demographic factors and mortality assumptions 
adopted by the Board of Actuaries of the Civil Service Retirement 
System. By statute under 5 U.S.C. 8461(i), the demographic factors, 
economic and mortality assumptions require corresponding changes in 
factors used to produce actuarially equivalent benefits when required 
by the FERS Act.
    Section 843.309 of title 5, Code of Federal Regulations, regulates 
the payment of the basic employee death benefit. Under 5 U.S.C. 
8442(b), the basic employee death benefit may be paid as a lump sum or 
as an equivalent benefit in 36 installments. These rules amend 5 CFR 
843.309(b)(2) to conform the factor used to convert the lump sum to 36-
installment payments with the revised economic assumptions.
    Section 843.311 of title 5, Code of Federal Regulations, regulates 
the benefits for the survivors of separated employees under 5 U.S.C. 
8442(c). This section provides a choice of benefits for eligible 
current and former spouses. If the current or former spouse is the 
person entitled to the unexpended balance under the order of precedence 
under 5 U.S.C. 8424, he or she may elect to receive the unexpended 
balance instead of an annuity.
    Alternatively, an eligible current or former spouse may elect to 
receive an annuity commencing on the day after the employee's death or 
on the deceased separated employee's 62nd birthday. If the annuity 
commences on the deceased separated employee's 62nd birthday, the 
annuity will equal 50 percent of the annuity that the separated 
employee would have received had he or she

[[Page 52540]]

attained age 62. If the current or former spouse elects the earlier 
commencing date, the annuity is reduced using the factors in Appendix A 
to subpart C of part 843 to make the annuity actuarially equivalent to 
the present value of the annuity that the spouse or former spouse would 
have received if the annuity had commenced on the retiree's 62nd 
birthday. These rules amend that appendix to conform to the revised 
economic assumptions.

Waiver of General Notice of Proposed Rulemaking

    Under section 553(b)(B) and (d)(3) of title 5, United States Code, 
I find that good reason exists for waiving the general notice of 
proposed rulemaking and for making these amendments effective in less 
than 30 days. The amendments made by this rule are statutorily mandated 
as a result of changes in economic assumptions that were published on 
June 3, 2011. Providing a comment period on the result of mathematical 
computations resulting from the changed economic assumptions is 
unnecessary and, to the extent that it would delay benefit payments, is 
contrary to the public interest.

Executive Order 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Order (E.O.) 12866, as amended by E.O. 
13258 and E.O. 13422.

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 
will only affect retirement payments to surviving current and former 
spouses of former employees and Members who separated from Federal 
service with title to a deferred annuity.

List of Subjects in 5 CFR Part 843

    Air traffic controllers, Disability benefits, Firefighters, 
Government employees, Law enforcement officers, Pensions, Retirement.


U.S. Office of Personnel Management.
John Berry,
Director.
    For the reasons stated in the preamble, the Office of Personnel 
Management amends 5 CFR part 843 as follows:

PART 843--FEDERAL EMPLOYEES RETIREMENT SYSTEM--DEATH BENEFITS AND 
EMPLOYEE REFUNDS

0
1. The authority citation for part 843 continues to read as follows:

    Authority:  5 U.S.C. 8461; Sec. Sec.  843.205, 843.208, and 
843.209 also issued under 5 U.S.C. 8424; Sec.  843.309 also issued 
under 5 U.S.C. 8442; Sec.  843.406 also issued under 5 U.S.C. 8441.

Subpart C--Current and Former Spouse Benefits

0
2. In Sec.  843.309, revise paragraph (b)(2) to read as follows:


Sec.  843.309  Basic employee death benefit.

* * * * *
    (b) * * *
    (2) For deaths occurring on or after October 1, 2004, 36 equal 
monthly installments of 3.01643 percent of the amount of the basic 
employee death benefit.
* * * * *

0
3. Revise Appendix A to subpart C of part 843 to read as follows:

Appendix A to Subpart C of Part 843--Present Value Conversion Factors 
for Earlier Commencing Date of Annuities of Current and Former Spouses 
of Diseased Separated Employees

With at least 10 but less than 20 years of creditable service--

------------------------------------------------------------------------
     Age of separated employee at birthday before death       Multiplier
------------------------------------------------------------------------
26.........................................................        .0581
27.........................................................        .0620
28.........................................................        .0687
29.........................................................        .0723
30.........................................................        .0807
31.........................................................        .0869
32.........................................................        .0933
33.........................................................        .1013
34.........................................................        .1086
35.........................................................        .1186
36.........................................................        .1273
37.........................................................        .1376
38.........................................................        .1474
39.........................................................        .1612
40.........................................................        .1737
41.........................................................        .1877
42.........................................................        .2026
43.........................................................        .2192
44.........................................................        .2365
45.........................................................        .2550
46.........................................................        .2757
47.........................................................        .2987
48.........................................................        .3222
49.........................................................        .3488
50.........................................................        .3767
51.........................................................        .4079
52.........................................................        .4410
53.........................................................        .4776
54.........................................................        .5176
55.........................................................        .5609
56.........................................................        .6081
57.........................................................        .6588
58.........................................................        .7152
59.........................................................        .7767
60.........................................................        .8441
61.........................................................        .9183
------------------------------------------------------------------------

With at least 20, but less than 30 years of creditable service--

------------------------------------------------------------------------
     Age of separated employee at birthday before death       Multiplier
------------------------------------------------------------------------
36.........................................................        .1516
37.........................................................        .1636
38.........................................................        .1756
39.........................................................        .1915
40.........................................................        .2066
41.........................................................        .2233
42.........................................................        .2410
43.........................................................        .2606
44.........................................................        .2811
45.........................................................        .3032
46.........................................................        .3279
47.........................................................        .3549
48.........................................................        .3829
49.........................................................        .4143
50.........................................................        .4475
51.........................................................        .4843
52.........................................................        .5235
53.........................................................        .5669
54.........................................................        .6139
55.........................................................        .6652
56.........................................................        .7208
57.........................................................        .7811
58.........................................................        .8476
59.........................................................        .9203
------------------------------------------------------------------------

With at least 30 years of creditable service--

------------------------------------------------------------------------
                                                         Multiplier by
                                                           separated
                                                      employee's year of
                                                             birth
Age of separated  employee at birthday  before death -------------------
                                                                  From
                                                        After     1950
                                                        1966     through
                                                                  1966
------------------------------------------------------------------------
46..................................................     .4213     .4572
47..................................................     .4557     .4943
48..................................................     .4918     .5335
49..................................................     .5318     .5768
50..................................................     .5744     .6231
51..................................................     .6213     .6738
52..................................................     .6714     .7282
53..................................................     .7267     .7880
54..................................................     .7866     .8528
55..................................................     .8518     .9233
56..................................................     .9227    1.0000
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[FR Doc. 2011-21396 Filed 8-22-11; 8:45 am]
BILLING CODE 6325-38-P