Source: https://www.federalregister.gov/documents/2003/04/09/03-8610/federal-employees-group-life-insurance-program-removal-of-premiums-and-age-bands-from-regulations
Timestamp: 2017-09-26 00:44:53
Document Index: 395129960

Matched Legal Cases: ['§\u2009870', '§\u2009870', '§\u2009870', '§\u2009870', '§\u2009870', '§\u2009870', '§\u2009870', '§\u2009870', '§\u2009870', '§\u2009870']

A Proposed Rule by the Personnel Management Office on 04/09/2003
Submit comments on or before June 9, 2003.
68 FR 17315
03-8610
https://www.federalregister.gov/d/03-8610 https://www.federalregister.gov/d/03-8610
Start Preamble Start Printed Page 17315
The Office of Personnel Management (OPM) is issuing proposed regulations to remove the premium rates and age bands under the Federal Employees' Group Life Insurance (FEGLI) Program from regulation. The information will be maintained on the FEGLI Web site at http://www.opm.gov/​insure/​life. Future rate and age band changes will be announced in the Federal Register.
Send written comments to Abby L. Block, Special Advisor for Employee and Family Support, Strategic Human Resources Policy Division, Office of Personnel Management, Washington, DC 20415-3666; or deliver to OPM, Room 3425, 1900 E Street NW., Washington, DC; or FAX to (202) 606-0633.
OPM is removing the premiums and age bands from the regulations to streamline the process used by OPM to adjust premium rates based on mortality and claims experiences, and actuarial determinations. The premiums in the FEGLI Program represent actuarial estimates of premium income necessary to pay future expected benefits costs. The rates for all coverage categories are specific to the experience of the FEGLI group and are not based on mortality rates within the general population. Actuarial analysis of changing mortality rates and Program changes, if any, make periodic premium adjustments necessary. OPM needs a simplified process to ensure that premium income can pay the future expected benefit costs in the FEGLI Program.
When OPM determines rate changes are needed, we will announce them in a public notice in the Federal Register. We also will issue guidance to all agencies for the purpose of counseling employees and we will notify affected annuitants directly. We will update the FEGLI Program Booklet when necessary to reflect changes and maintain the Booklet and premium rates on the FEGLI Web site www.opm.gov/​insure/​life.
Although members of the public will no longer have the opportunity to comment on changes through the formal regulatory process, they can continue as always to comment through emails and letters to OPM. Almost all the comments we receive regarding premium and age band changes are in response to these types of notification, rather than formal responses to regulations. We will accept and reply to comments from members of the public as always. Publishing these changes in the Federal Register will allow OPM to implement them in a more timely and efficient manner.
I certify that this regulation will not have a significant economic impact on a substantial number of small entities, because the regulation only affects life insurance benefits of Federal employees and retirees.
Authority: 5 U.S.C. 8716; subpart J also issued under sec. 599C, Pub. L. 101-513, 104 Stat. 2064, as amended; § 870.302(a)(3)(ii) also issued under sec. 153, Pub. L. 104-134, 110 Stat. 1321; § 870.302(a)(3) also issued under sections 11202(f), 11232(e), and 11246(b) and (c) of Pub. L. 105-33, 111 Stat. 251 and section 7(e), Pub. L. 105-274, 112 Stat. 2419.
2. In § 870.401, paragraphs (a), (b)(1), and (d) are revised to read as follows:
(a)(1) The cost of Basic insurance is shared between the insured individual and the Government. The employee pays two thirds of the cost, and the Government pays one-third.
(2) When OPM makes any adjustment to the Basic life insurance premium, we will issue a public notice in the Federal Register.
(b)(1) During each pay period in which an insured employee is in pay status for any part of the period, the employee's share of the premium must be withheld from the employee's biweekly pay. The amount withheld from the pay of an employee who is paid on other than a biweekly basis must be prorated and adjusted to the nearest one-tenth of one cent.
(d)(1) For an annuitant or compensationer who elects to continue Basic insurance and chooses the maximum reduction of 75 percent after age 65, under § 870.702(a)(2), the annuitant's share of the premium is withheld monthly and the compensationer's share is withheld every four weeks. These withholdings stop the month after the month in which the annuitant or compensationer reaches age 65. There are no withholdings from individuals who retired or began receiving compensation before January 1, 1990, and who elected the 75 percent reduction. For the purpose of this paragraph, an individual who separates from service after meeting the requirements for an immediate annuity under 5 U.S.C. 8412 (g) is considered to retire on the day before the annuity begins. Start Printed Page 17316
(2) An annuitant or compensationer who elects to continue Basic insurance and chooses either the reduction election of 50 percent or the no reduction after age 65, under § 870.702(a)(3) or § 870.702(a)(4), pays an additional premium for the 50 percent or no reduction election. This additional premium is withheld for each $1,000 of the BIA. At age 65, the Basic premium will stop, but the annuitant or compensationer must continue to pay the additional premium for either the 50 percent or the no reduction election.
(3) When OPM makes any adjustment to the Optional life insurance premiums, we will issue a public notice in the Federal Register.
(c)(1) Subject to the provisions for reemployed annuitants in § 870.707, the full cost of Optional insurance must be withheld from the annuity of an annuitant and the compensation of a compensationer.
(3) For an annuitant or compensationer who elects Full Reduction for any Option B or Option C multiples, the withholdings for those multiples stop the month after the month in which he/she reaches age 65.
(d)(1) For Option A and Option C, the amount withheld from pay, annuity, or compensation paid on other than a biweekly basis must be prorated and adjusted to the nearest cent.
(2) For Option B, the amount withheld from pay, annuity, or compensation paid on other than a biweekly basis must be prorated and adjusted to the nearest one-tenth of 1 cent.
(f) When an agency withholds less than or none of the proper amount of Optional life insurance deductions from an individual's pay, annuity or compensation, the agency must submit an amount equal to the uncollected deductions required under 5 U.S.C. 8714a, 8714b, 8714c to OPM for deposit in the Employees' Life Insurance Fund.
4. In § 870.404, paragraph (d) is revised to read as follows:
5. In § 870.801, paragraph (e) is revised to read as follows:
(e) Upon the death of an insured family member, Option C benefits are paid to the employee, annuitant or compensationer responsible for withholdings under § 870.402(a), except as provided in paragraph (f) of this section.
[FR Doc. 03-8610 Filed 4-8-03; 8:45 am]