I

103D CONGRESS

1ST SESSION H. R. 512

To amend chapter 87 of title 5, United States Code, to provide that group

life insurance benefits under such chapter may, upon application, be

paid out to an insured individual who is terminally ill, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 21, 1993

Mr. GILMAN introduced the following bill; which was referred to the

Committee on Post Office and Civil Service

A BILL

To amend chapter 87 of title 5, United States Code, to

provide that group life insurance benefits under such

chapter may, upon application, be paid out to an insured

individual who is terminally ill, 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 ‘‘FEGLI Living Bene5 fits Act’’.
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1 SEC. 2. OPTION TO RECEIVE ‘‘LIVING BENEFITS’’.

2 (a) IN GENERAL.—Chapter 87 of title 5, United

3 States Code, is amended by inserting after section 8714c

4 the following:

5 ‘‘§ 8714d. Option to receive ‘living benefits’

6 ‘‘(a) For the purpose of this section, an individual

7 shall be considered to be ‘terminally ill’ if such individual

8 has a medical prognosis that such individual’s life expect9 ancy is 9 months or less.

10 ‘‘(b) The Office of Personnel Management shall pre11 scribe regulations under which any individual covered by

12 group life insurance under section 8704(a) may, if such

13 individual is terminally ill, elect to receive a lump-sum

14 payment equal to—

15 ‘‘(1) the full amount of insurance under section

16 8704(a) (or portion thereof designated for this pur17 pose under subsection (d)(4)) which would otherwise

18 be payable under this chapter (on the establishment

19 of a valid claim)—

20 ‘‘(A) computed based on a date determined

21 under regulations of the Office (but not later

22 than 30 days after the date on which the indi23 vidual’s application for benefits under this sec24 tion is approved or deemed approved under sub25 section (d)(3)); and
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1 ‘‘(B) assuming continued coverage under

2 this chapter at that time;

3 reduced by

4 ‘‘(2) an amount necessary to assure that there

5 is no increase in the actuarial value of the benefit

6 paid (as determined under regulations of the Office).

7 ‘‘(c)(1) If a lump-sum payment is taken under this

8 section—

9 ‘‘(A) no insurance under the provisions of sec10 tion 8704 (a) or (b) shall be payable based on the

11 death or any loss of the individual involved, unless

12 the lump-sum payment represents only a portion of

13 the total benefits which could have been taken, in

14 which case benefits under those provisions shall re15 main in effect, except that the basic insurance

16 amount on which they are based—

17 ‘‘(i) shall be reduced by the percentage

18 which the designated portion comprised relative

19 to the total benefits which could have been

20 taken (rounding the result to the nearest mul21 tiple of $1,000 or, if midway between multiples

22 of $1,000, to the next higher multiple of

23 $1,000); and

24 ‘‘(ii) shall not be subject to further adjust25 ment; and
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1 ‘‘(B) deductions and withholdings under section

2 8707, and contributions under section 8708, shall be

3 terminated with respect to such individual (or re4 duced in a manner consistent with the percentage

5 reduction in the individual’s basic insurance amount,

6 if applicable), effective with respect to any amounts

7 which would otherwise become due on or after the

8 date of payment under this section.

9 ‘‘(2) An individual who takes a lump-sum payment

10 under this section (whether full or partial) remains eligible

11 for optional benefits under sections 8714a–8714c (subject

12 to payment of the full cost of those benefits in accordance

13 with applicable provisions of the section or sections in14 volved, to the same extent as if no election under this sec15 tion had been made).

16 ‘‘(d)(1) The Office’s regulations shall include provi17 sions regarding the form and manner in which an applica18 tion under this section shall be made and the procedures

19 in accordance with which any such application shall be

20 considered.

21 ‘‘(2) An application shall not be considered to be com22 plete unless it includes such information and supporting

23 evidence as the regulations require, including certification

24 by an appropriate medical authority as to the nature of
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1 the individual’s illness and that the individual is not ex2 pected to live more than 9 months because of that illness.

3 ‘‘(3)(A) In order to ascertain the reliability of any

4 medical opinion or finding submitted as part of an applica5 tion under this section, the covered individual may be re6 quired to submit to a medical examination under the direc7 tion of the agency or entity considering the application.

8 The individual shall not be liable for the costs associated

9 with any examination required under this subparagraph.

10 ‘‘(B) Any decision by the reviewing agency or entity

11 with respect to an application for benefits under this sec12 tion (including one relating to an individual’s medical

13 prognosis) shall not be subject to administrative review.

14 ‘‘(4)(A) An individual making an election under this

15 section may designate that only a limited portion (ex16 pressed as a multiple of $1,000) of the total amount other17 wise allowable under this section be paid pursuant to such

18 election.

19 ‘‘(B) A designation under this paragraph may not be

20 made by an individual described in paragraph (1) or (2)

21 of section 8706(b).

22 ‘‘(5) An election to receive benefits under this section

23 shall be irrevocable, and not more than one such election

24 may be made by any individual.
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1 ‘‘(6) The regulations shall include provisions to ad2 dress the question of how to apply section 8706(b)(3)(B)

3 in the case of an electing individual who has attained 65

4 years of age.’’.

5 (b) TABLE OF SECTIONS.—The table of sections for

6 chapter 87 of title 5, United States Code, is amended by

7 inserting after the item relating to section 8714c the

8 following:

‘‘8714d. Option to receive ‘living benefits’.’’.

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

10 (a) EFFECTIVE DATE.—The amendments made by

11 section 2 shall take effect 9 months after the date of the

12 enactment of this Act.

13 (b) OPEN SEASON; NOTICE.—(1) The Office of Per14 sonnel Management shall prescribe regulations under

15 which, beginning not later than 9 months after the date

16 of the enactment of this Act, and over a period of not

17 less than 8 weeks—

18 (A) an employee (as defined by section 8701(a)

19 of title 5, United States Code) who declined or vol20 untarily terminated coverage under chapter 87 of

21 such title—

22 (i) may elect to begin, or to resume, group

23 life insurance and group accidental death and

24 dismemberment insurance; and
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1 (ii) may make such other elections under

2 such chapter as the Office may allow; and

3 (B) such other elections as the Office allows

4 may be made.

5 (2) The Office shall take such action as may be nec6 essary to ensure that employees and any other individuals

7 who would be eligible to make an election under this sub8 section are afforded advance notification to that effect.

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