Civil Service Federal Employees Federal Employees Federal Employees

Retirement Group Life Health Benefits Retirement

System Insurance Program System

United States

Office of Personnel Management

Retirement and Insurance Service

Benefits Administration Letter

Number: 97-704 Date: July 25, 1997 

Subject: Availability of a Computer Model to Help Employees Make

Retirement Coverage Elections Under Public Law 104-106.

Background

The U.S. Office of Personnel Management (OPM) and the Department of Defense (DOD) are

pleased to announce availability of a computer model to help employees make retirement

coverage elections under Public Law 104-106. This legislation gives certain appropriated fund

and nonappropriated fund employees the opportunity to resume retirement coverage under a

previous plan or to credit service under a prior plan under their current retirement plan. The

model computes estimated future retirement benefits under different scenarios to help

employees make their elections under Public Law 104-106.

Many employees should be able to make elections based on what they know about their past

employment history, future work plans, and the features of the retirement plans that are

available to them. However, others may want to see estimates of future benefits before they

make a decision. To assist these employees, DOD and OPM jointly contracted for the

development of a pc-based program that uses information about past service and the

employee's expectations about future employment to provide estimates of future benefits.

Program Elements

The program computes basic benefits, 401(k) and Thrift Savings Plan (TSP) benefits, and

Social Security benefits. It allows modeling of different scenarios by varying retirement dates

and TSP/401(k) savings projections. It estimates benefits under both regular rules and special

rules, such as for law enforcement officers, and allows the user to select reduced benefits for a

spouse. Because benefits cannot be projected with certainty, employees should not base

decisions to make an election under the law solely from this model. However, it can provide

another piece of information that employees can consider in making a decision. Even though

the program is easy to use, it is designed for use by human resources specialists because they

are responsible for informing eligible employees of their options.
Program Availability

The program, along with a Users' Guide, is available for downloading from:

* OPM Web site at http://www.opm.gov/asd/, or

* OPM Mainstreet (soon to be OPM ONLINE) Bulletin Board Service (BBS). The

program is available in the Retirement and Insurance Forum.

In addition, diskettes will be furnished to agency headquarters level benefits officers. Other

offices that need the program to counsel eligible employees may obtain it by:

* Calling (202) 606-0788, extension 954, or

* FAXing a request to (202) 606-1108, or 

* Emailing a request to ASD@OPM.GOV.

There is no charge for the diskettes or program.

System Requirements

The APF-NAFI Transfer Benefits for Windows uses and advanced software programming

platform to performs complex calculations "behind the scenes." The minimum computer

requirement need to run the model are:

* 80486 33Mhz processor

* Microsoft Windows 3.1 or NT

* Hard Disk with at least 10 megabytes free

* Windows-compatible printer

* Color VGA monitor

* Microsoft campatible mouse.

Program Demonstration

OPM and contractor staff will provide a demonstration of the program and answer questions

about using it at

The Office of Personnel Management

1900 E Street, NW, Room 2416

Washington, DC

on

July 31, 1997, at 1:00 PM 

The demonstration is open to both agency headquarters level benefits officers as well as other

staff responsible for assisting employees regarding this legislation. Because of enhanced

security measures at the OPM building, please allow time to gain access to the building.

Mary M. Sugar, Chief

Agency Services Division