Federal Employees Life Insurance Improvement Act
PL 105-311 (H.R.2675), enacted 10/30/1998

112 STAT. 2950 
PUBLIC LAW 105-311—OCT. 30, 1998 
Public Law 105-311 
105th Congress 
An Act 
Oct. 30, 1998 
[H.R. 2675] 
Federal 
Employees Life 
Insurance 
Improvement 
Act. 
To provide for the Office of Personnel Management to conduct a study and submit 
a report to Congress on the provision of certain options for universal life insurance 
coverage and additional death and dismemberment insurance under chapter 87 
of title 5, United States Code, to improve the administration of such chapter, 
and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Federal Employees Life Insurance 
5 use 8701 note. Improvement Act". 
SEC. 2. STUDY AND REPORT ON CERTAIN LIFE INSURANCE OPTIONS 
OFFERED TO FEDERAL EMPLOYEES. 
(a) IN GENERAL.—Not later than July 31, 1998, the Office 
of Personnel Management shall conduct a study on life insurance 
options for Federal employees described under subsection (b) and 
submit a report to Congress. 
(b) STUDY AND REPORT.—The study and report referred to under 
subsection (a) shall— 
(1) survey and ascertain the interest of Federal employees 
in an offering under chapter 87 of title 5, United States Code, 
of insurance coverage options relating to— 
(A) group universal life insurance; 
(B) group variable universal life insurance; and 
(C) additional voluntary accidental death and dis-
memberment insurance; and 
(2) include any comments, analysis, and recommendations 
of the Office of Personnel Management relating to such options. 
SEC. 3. REPEAL OF MAXIMUM LIMITATION ON EMPLOYEE INSURANCE. 
Chapter 87 of title 5, United States Code, is amended— 
(1) in section 8701(c), in the first sentence, by striking 
the comma immediately following "$10,000" and all that follows 
and inserting a period; and 
(2) in section 8714b(b), in the first sentence, by striking 
"except" and all that follows and inserting a period. 
SEC. 4. FOSTER CHILD COVERAGE. 
Section 8701(d)(1)(B) of title 5, United States Code, is amended 
by inserting "or foster child" after "stepchild" both places it appears. 
PUBLIC LAW 105-311—OCT. 30, 1998 
112 STAT. 2951 
SEC. 5. INCONTESTABILITY OF ERRONEOUS COVERAGE. 
Section 8706 of title 5, United States Code, as amended by 
section 5(2), is further amended by adding at the end the following 
new subsection: 
"(g) The insurance of an employee under a policy purchased 
under section 8709 shall not be invalidated based on a finding 
that the employee erroneously became insured, or erroneously 
continued insurance upon retirement or entitlement to compensa-
tion under subchapter I of chapter 81 of this title, if such finding 
occurs after the erroneous insurance and applicable withholdings 
have been in force for 2 years during the employee's lifetime.". 
SEC. 6. DIRECT PAYMENT OF INSURANCE CONTRIBUTIONS. 
Chapter 87 of title 5, United States Code, is amended— 
(Din section 8707— 
(A) in subsection (a), by striking "(a) During" and 
inserting "(a) Subject to subsection (c)(2), during"; 
(B) in subsection (b), by striking "(b)(1) Whenever" 
and inserting "(b)(1) Subject to subsection (c)(2), whenever"; 
and 
(C) in subsection (c), by inserting "(1)" immediately 
after "(c)" and by adding at the end the following new 
paragraph: 
"(2) An employee who is subject to withholdings under this 
section and whose pay, annuity, or compensation is insufficient 
to cover such withholdings may nevertheless continue insurance 
if the employee arranges to pay currently into the Employees' 
Life Insurance Fund, through the agency or retirement system 
that administers pay, annuity, or compensation, an amount equal 
to the withholdings that would otherwise be required under this 
section."; 
(2) in section 8714a(d), by adding at the end the following 
new paragraph: 
"(3) Notwithstanding paragraph (1), an employee who is subject 
to withholdings under this subsection and whose pay, annuity, 
or compensation is insufficient to cover such withholdings may 
nevertheless continue optional insurance if the employee arranges 
to pay currently into the Employees' Life Insurance Fund, through 
the agency or retirement system which administers pay, annuity, 
or compensation, an amount equal to the withholdings that would 
otherwise be required under this subsection."; 
(3) in section 8714b(d), by adding at the end the following 
new paragraph: 
"(3) Notwithstanding paragraph (1), an employee who is subject 
to withholdings under this subsection and whose pay, annuity, 
or compensation is insufficient to cover such withholdings may 
nevertheless continue additional optional insurance if the employee 
arranges to pay currently into the Employees' Life Insurance Fund, 
through the agency or retirement system which administers pay, 
annuity, or compensation, an amount equal to the withholdings 
that would otherwise be required under this subsection."; and 
(4) in section 8714c(d), by adding at the end the following 
new paragraph: 
"(3) Notwithstanding paragraph (1), an employee who is subject 
to withholdings under this subsection and whose pay, annuity, 
or compensation is insufficient to cover such withholdings may 
nevertheless continue optional life insurance on family members 
59-194 O- 98 - 7 : QL 3 Part 5 
X 
112 STAT. 2952 
PUBLIC LAW 105-311—OCT. 30, 1998 
if the employee arranges to pay currently into the Employees' 
Life Insurance Fund, through the agency or retirement system 
that administers pay, annuity, or compensation, an amount equal 
to the withholdings that would otherwise be required under this 
subsection.". 
SEC. 7. ADDITIONAL OPTIONAL LIFE INSURANCE CONTINUATION AND 
PORTABILITY. 
(a) IN GENERAL.—Section 8714b of title 5, United States Code, 
is amended— 
(1) in subsection (c)— 
(A) by striking the last 2 sentences of paragraph (2); 
and 
(B) by adding at the end the following: 
"(3) The amount of additional optional insurance continued 
under paragraph (2) shall be continued, with or without reduction, 
in accordance with the employee's written election at the time 
eligibility to continue insurance during retirement or receipt of 
compensation arises, as follows: 
"(A) The employee may elect to have withholdings cease 
in accordance with subsection (d), in which case— 
"(i) the amount of additional optional insurance contin-
ued under paragraph (2) shall be reduced each month 
by 2 percent effective at the beginning of the second cal-
endar month after the date the employee becomes 65 years 
of age and is retired or is in receipt of compensation; 
and 
"(ii) the reduction under clause (i) shall continue for 
50 months at which time the insurance shall stop. 
"(B) The employee may, instead of the option under 
subparagraph (A), elect to have the full cost of additional 
optional insurance continue to be withheld from such employee's 
annuity 
or compensation 
on and 
after 
the 
date 
such 
withholdings would otherwise cease pursuant to an election 
under subparagraph (A), in which case the amount of additional 
optional insurance continued under paragraph (2) shall not 
be reduced, subject to paragraph (4). 
"(C) An employee who does not make any election under 
the preceding provisions of this paragraph shall be treated 
as if such employee had made an election under subparagraph 
(A). 
"(4) If an employee makes an election under paragraph (3)(B), 
that individual may subsequently cancel such election, in which 
case additional optional insurance shall be determined as if the 
individual had originally made an election under paragraph (3)(A). 
"(5)(A) An employee whose additional optional insurance under 
this section would otherwise stop in accordance with paragraph 
(1) and who is not eligible to continue insurance under paragraph 
(2) may elect, under conditions prescribed by the Office of Personnel 
Management, to continue all or a portion of so much of the addi-
tional optional insurance as has been in force for not less than— 
"(i) the 5 years of service immediately preceding the date 
of the event which would cause insurance to stop under para-
graph (1); or 
"(ii) the full period or periods of service during which 
the insurance was available to the employee, if fewer than 
5 years. 
PUBLIC LAW 105-311—OCT. 30, 1998 
112 STAT. 2953 
at group rates established for purposes of this section, in lieu 
of conversion to an individual policy. The amount of insurance 
continued under this paragraph shall be reduced by 50 percent 
effective at the beginning of the second calendar month after the 
date the employee or former employee attains age 70 and shall 
stop at the beginning of the second calendar month after attainment 
of age 80, subject to a provision for temporary extension of life 
insurance coverage and for conversion to an individual policy of 
life insurance under conditions approved by the Office. Alter-
natively, insurance continued under this paragraph may be reduced 
or stopped at any time the employee or former employee elects. 
"(B) When an employee or former employee elects to continue 
additional optional insurance under this paragraph following sepa-
ration from service or 12 months without pay, the insured individual 
shall submit timely payment of the full cost thereof, plus any 
amount the Office determines necessary to cover associated adminis-
trative expenses, in such manner as the Office shall prescribe 
by regulation. Amounts required under this subparagraph shall 
be deposited, used, and invested as provided under section 8714 
and shall be reported and accounted for together with amounts 
withheld under section 8714a(d). 
"(C)(i) Subject to clause (ii), no election to continue additional 
optional insurance may be made under this paragraph 3 years 
after the effective date of this paragraph. 
"(ii) On and after the date on which an election may not 
be made under clause (i), all additional optional insurance under 
this paragraph for former employees shall terminate, subject to 
a provision for temporary extension of life insurance coverage and 
for conversion to an individual policy of life insurance under condi-
tions approved by the Office."; and 
(2) in the second sentence of subsection (d)(1) by inserting 
"if insurance is continued as provided under subsection 
(c)(3)(A)," after "except that,". 
(b) REPORT.—^Not later than 3 years after the date of enactment Deadline. 
of this Act, the Office of Personnel Management shall submit a 
5 USC 8714b 
report to Congress on additional optional insurance provided under 
^o^. 
section 8714b(c)(5) of title 5, United States Code (as added by 
subsection (a) of this section). Such report shall include rec-
ommendations on whether continuation for such additional optional 
insurance should terminate as provided under such section, be 
extended, or be made permanent. 
(c) TECHNICAL AMENDMENT.—^The last sentence of section 
8714b(d)(l) of title 5, United States Code, is amended by inserting 
"(and any amounts withheld as provided in subsection (c)(3)(B))" 
after "Amounts so withheld". 
SEC. 8. IMPROVED OPTIONAL LIFE INSURANCE ON FAMILY MEMBERS. 
(a) IN GENERAL.—Section 8714c(b) of title 5, United States 
Code, is amended to read as follows: 
"(b)(1) The optional life insurance on family members provided 
under this section shall be made available to each eligible employee 
who has elected coverage under this section, under conditions the 
Office shall prescribe, in multiples, at the employee's election, of 
1, 2, 3, 4, or 5 times— 
"(A) $5,000 for a spouse; and 
"(B) $2,500 for each child described under section 8701(d). 
112 STAT. 2954 
PUBLIC LAW 105-311—OCT. 30, 1998 
"(2) An employee may reduce or stop coverage elected pursuant 
to this section at any time.". 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—Section 8714c 
of title 5, United States Code, is amended— 
(1) in subsection (c)(2), by striking "section 8714b(c)(2) of 
this title" and inserting "section 8714b(c) (2) through (4)"; and 
(2) in subsection (d)(1), by inserting before the last sentence 
the following: "Notwithstanding the preceding sentence, the 
full cost shall be continued after the calendar month in which 
the former employee becomes 65 years of age if, and for so 
long as, an election under this section corresponding to that 
described in section 8714b(c)(3)(B) remains in effect with 
respect to such former employee.". 
DeadUne. 
SEC. 9. OPEN SEASON. 
5 use 8701 note. 
Beginning not later than 180 days after the date of enactment 
of this Act, the Offi.ce of Personnel Management shall conduct 
an open enrollment opportunity for purposes of chapter 87 of title 
5, United States Code, over a period of not less than 8 weeks. 
During this period, an employee (as defined under section 8701(a) 
of such title)— 
(1) may, if the employee previously declined or voluntarily 
terminated any coverage under chapter 87 of such title, elect 
to begin, resume, or increase group life insurance (and acquire 
applicable accidental death and dismemberment insurance) 
under all sections of such chapter without submitting evidence 
of insurability; and 
(2) may, if currently insured for optional life insurance 
on family members, elect an amount above the minimum insur-
ance on a spouse. 
SEC. 10. MERIT SYSTEM JUDICIAL REVIEW. 
(a) IN GENERAL.—Section 7703 of title 5, United States Code, 
is amended— 
(1) in subsection (b)(1) by striking "within 30 days" and 
inserting "within 60 days"; and 
(2) in subsection (d) in the first sentence, by inserting 
after "filing" the following: ", within 60 days after the date 
the Director received notice of the final order or decision of 
the Board,". 
5 use 7703 note. 
(b) EFFECTIVE DATE.—^The amendments made by this section 
shall take effect on the date of enactment of this Act, and apply 
to any suit, action, or other administrative or judicial proceeding 
pending on such date or commenced on or after such date. 
5 u s e 8701 note. 
SEC. 11. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as otherwise provided in this Act, 
the amendments made by this Act shall take effect on the date 
of enactment of this Act. 
(b) MAXIMUM LIMITATION ON EMPLOYEE INSURANCE.—Section 
3 shall take effect on the first day of the first applicable pay 
period beginning on or after the date of enactment of this Act. 
(c) ERRONEOUS COVERAGE.—Section 5 shall be effective in any 
case in which a finding of erroneous insurance coverage is made 
on or after the date of enactment of this Act. 
(d) DIRECT PAYMENT OF INSURANCE CONTRIBUTIONS.—Section 
6 shall take effect on the first day of the first applicable pay 
PUBLIC LAW 105-311—OCT. 30, 1998 
112 STAT. 2955 
period beginning on or after the date of enactment of this 
Act. 
(e) ADDITIONAL OPTIONAL LIFE INSURANCE.— 
(1) IN GENERAL.—Section 7 shall take effect on the first 
day of the first pay period that begins on or after the 180th 
day following the date of enactment of this Act, or on any 
earlier date that the Office of Personnel Management may 
prescribe that is at least 60 days after the date of enactment 
of this Act. 
(2) REGULATIONS.—^The Office shall prescribe regulations 
under which an employee may elect to continue additional 
optional insurance that remains in force on such effective date 
without subsequent reduction and with the fiiU cost withheld 
from annuity or compensation on and after such effective date 
if that employee— 
(A) separated from service before such effective date 
due to retirement or entitlement to compensation under 
subchapter I of chapter 81 of title 5, United States Code; 
and 
(B) continued additional optional insurance pursuant 
to section 8714b(c)(2) as in effect immediately before such 
effective date. 
(f) IMPROVED OPTIONAL LIFE INSURANCE ON FAMILY MEM-
BERS.—^The amendments made by section 8 shall take effect on 
the first day of the first pay period which begins on or after 
the 180th day following the date of enactment of this Act or on 
any earlier date that the Office of Personnel Management may 
prescribe. 
(g) OPEN SEASON.—Any election made by an employee under 
section 9, and applicable withholdings, shall be effective on the 
first day of the first applicable pay period that— 
(1) begins on or after the date occurring 365 days after 
the first day of the election period authorized under section 
9; and 
(2) follows a pay period in which the employee was in 
a pay and duty status. 
Approved October 30, 1998. 
LEGISLATIVE HISTORY—H.R. 2675: 
HOUSE REPORTS: No. 105-373 (Comm. on Government Reform and Oversight). 
SENATE REPORTS: No. 105-337 (Comm. on Governmental Affairs). 
CONGRESSIONAL RECORD: 
Vol. 143 (1997): Nov. 4, considered and passed House. 
Vol. 144 (1998): Oct. 5, considered and passed Senate, amended. 
Oct. 8, House concurred in Senate amendments.