Document headings vary by document type but may contain
                    the following: the agency or agencies that issued and signed a document
the number of the CFR title and the number of each part
                      the document amends, proposes to amend, or is directly
                      related to
the agency docket number / agency internal file number
the RIN which identifies each regulatory action listed in
                      the Unified Agenda of Federal Regulatory and Deregulatory
                      Actions See the
                    Document Drafting Handbook
                    for more details.
 Office of Personnel Management
 AGENCY: Office of Personnel Management.
 ACTION: Notice.
 SUMMARY: The Office of Personnel Management (OPM) is providing notice of adjusted present value factors applicable to retirees who elect to provide survivor annuity benefits to a spouse based on post-retirement marriage, and to retiring employees who elect the alternative form of annuity or elect to credit certain service with nonappropriated fund instrumentalities. This notice is necessary to conform the present value factors to changes in the economic and demographic assumptions adopted by the Board of Actuaries of the Civil Service Retirement System.
 DATES: The revised present value factors apply to survivor reductions or employee annuities that commence on or after October 1, 2015.
 ADDRESSES: Send requests for actuarial assumptions and data to the Board of Actuaries, care of Gregory Kissel, Senior Actuary, Office of Planning and Policy Analysis, Office of Personnel Management, Room 4307, 1900 E Street NW., Washington, DC 20415.
 FOR FURTHER INFORMATION CONTACT: Karla Yeakle, (202) 606-0299.


SUPPLEMENTARY INFORMATION: Several provisions of the Federal Employees' Retirement System (FERS) require reduction of annuities on an actuarial basis. Under each of these provisions, OPM is required to issue regulations on the method of determining the reduction to ensure that the present value of the reduced annuity plus a lump-sum equals, to the extent practicable, the present value of the unreduced benefit. The regulations for each of these benefits provide that OPM will publish a notice in the 
                    **Federal Register**
                     whenever it changes the factors used to compute the present values of these benefits. Section 842.706(a) of title 5, Code of Federal Regulations, prescribes the method for computing the reduction in the beginning rate of annuity payable to a retiree who elects an alternative form of annuity under 5 U.S.C. 8420a. That reduction is required to produce an annuity that is the actuarial equivalent of the annuity of a retiree who does not elect an alternative form of annuity. The present value factors listed below are used to compute the annuity reduction under 5 CFR 842.706(a). Section 842.615 of title 5, Code of Federal Regulations, prescribes the use of these factors for computing the reduction required for certain elections to provide survivor annuity benefits based on a post-retirement marriage or divorce under 5 U.S.C. 8416(b), 8416(c), or section 8417(b). Under section 11004 of the Omnibus Budget Reconciliation Act of 1993, Public Law 103-66, effective October 1, 1993, OPM ceased collection of these survivor election deposits by means of either a lump-sum payment or installments. Instead, OPM is required to establish a permanent actuarial reduction in the annuity of the retiree. This means that OPM must take the amount of the deposit computed under the old law and translate it into a lifetime reduction in the retiree's benefit. Subpart F of part 847 of title 5, Code of Federal Regulations, prescribes the use of present value factors for computing the deficiency the retiree must pay to receive credit for certain service with nonappropriated fund instrumentalities made creditable by an election under section 1043 of Public Law 104-106. Subpart I of part 847 of title 5, Code of Federal Regulations, prescribes the use of present value factors for employees that elect to credit nonappropriated fund instrumentality service to qualify for immediate retirement under section 1132 of Public Law 107-107. OPM published the present value factors currently in effect on May 21, 2014, at 79 FR 29222 and on April 3, 2015, OPM published a notice to revise the normal cost percentage under the Federal Employees' Retirement System (FERS) Act of 1986, Public Law 99-335, based on changed demographic assumptions adopted by the Board of Actuaries of the Civil Service Retirement System. Under 5 U.S.C. 8461(i), those changes require corresponding changes in the present value factors used to produce actuarially equivalent benefits when required by the FERS Act. The revised factors will become effective on October 1, 2015, to correspond with the changes in FERS normal cost percentages. For alternative forms of annuity, the new factors will apply to annuities that commence on or after October 1, 2015. See 5 CFR 842.706. For survivor election deposits, the new factors will apply to survivor 
                    ( print page 18266)
                    reductions that commence on or after October 1, 2015. See 5 CFR 842.615(b). For obtaining credit for service with certain nonappropriated fund instrumentalities, the new factors will apply to cases in which the date of computation under 5 CFR 847.603 or 847.809 is on or after October 1, 2015. See 5 CFR 847.602(c), 847.603, and 847.809. OPM is, therefore, revising the tables of present value factors to read as follows: Table I—FERS Present Value Factors for Ages 62 and Older
[Applicable to annuity payable following an election under 5 U.S.C. 8416(b), 8416(c), 8417(b), 8420a, under section 1043 of Public Law 104-106, or under section 1132 of Public Law 107-107]
Age
Present value factor62
200.863
195.064
189.165
183.266
177.267
171.268
165.169
158.970
152.871
146.672
140.473
134.274
128.075
121.976
116.077
110.178
104.379
98.780
93.281
87.982
82.783
77.884
72.985
68.386
63.987
59.688
55.589
51.690
48.091
44.792
41.693
38.794
36.195
33.896
31.797
29.998
28.199
26.4100
24.9101
23.7102
22.5103
21.2104
20.2105
19.4106
18.4107
16.5108
12.9109
6.4
 Table II.A—FERS Present Value Factors for Ages 40 Through 61
[Applicable to annuity payable when annuity is not increased by cost-of-living adjustments before age 62 following an election under 5 U.S.C. 8416(b), 8416(c), 8417(b), 8420a, under section 1043 of Public Law 104-106, or under section 1132 of Public Law 107-107]
Age
Present
                             value factor40
216.841
216.542
216.143
215.644
215.145
214.646
214.047
213.448
212.849
212.250
211.751
211.152
210.553
209.854
209.055
208.256
207.257
206.258
205.159
204.160
203.061
201.9
 Table II.B—FERS Present Value Factors for Ages 40 Through 61
[Applicable to annuity payable when annuity is increased by cost-of-living adjustments before age 62 following an election under 5 U.S.C. 8416(b), 8416(c), 8417(b), or 8420a, under section 1043 of Public Law 104-106, or under section 1132 of Public Law 107-107]
Age
Present
                             value factor40
295.841
292.742
289.543
286.244
282.745
279.146
275.447
271.648
267.749
263.850
259.951
255.852
251.753
247.354
242.855
238.056
233.057
228.058
222.859
217.460
212.061
206.4
 Table III—FERS Present Value Factors for Ages at Calculation Below 40
[Applicable to annuity payable following an election under section 1043 of Public Law 104-106 or under section 1132 of Public Law 107-107]
Age at calculation
Present
                             value of 
                             a monthly 
                             annuity17
348.518
346.819
345.120
343.321
341.422
339.523
337.624
335.625
333.626
331.527
329.428
327.229
324.930
322.631
320.232
317.833
315.334
312.735
310.136
307.437
304.638
301.739
298.8
 U.S. Office of Personnel Management. Katherine Archuleta, Director.


[FR Doc. 2015-07694 Filed 4-2-15; 8:45 am] BILLING CODE 6325-38-P