Federal Employees' Group Life Insurance Act of 1980
PL 96-427 (H.R.7666), enacted 10/10/1980

PUBLIC LAW 96-427—OCT. 10, 1980 
94 STAT. 1831 
Public Law 96-427 
96th Congress 
An Act 
To amend chapter 87 of title 5, United States Ckxie, to increase the amounts of 
regular and optional group life insurance available to Federal employees and 
provide optional life insurance on family members, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
SHORT TITLE 
SECTION 1. This Act mav be cited as the 
Life Insurance Act of 1980". 
'Federal Employees' Group 
Oct. 10, 1980 
[H.R. 7666] 
Federal 
Employees' 
Group Life 
Insurance 
Act of 1980. 
5 u s e 8701 note. 
"Basic insurance 
amount." 
REGULAR 
GROUP 
INSURANCE 
PAYMENTS 
SEC. 2. (a) Section 8701 of title 5, United States Code, is amended— 
(1) in the section heading, bjj striking out "Definition" and 
inserting in lieu thereof "Definitions"; and 
(2) by inserting at the end thereof the following new subsection: 
"(c) For the purpose of this chapter, 'basic insurance amount' 
means, in the case of any employee under this chapter, an amount 
equal to the greater o
f
— 
"(1) the annual rate of basic i)ay pavable to the employee, 
rounded to the next higher multiple of $1,000, plus $2,000, or 
"(2) $10,000, 
except that the amount of insurance may not exceed the annual rate 
of 
basic pay payable for positions at level n of the Executive Schedule 
under section 5313 of 
this title, rounded to the next higher multiple of 5 use 5313. 
$1,000, plus $2,000. In the case of any former employee entitled to 
coverage under this chapter, the term means the basic insurance 
amount applicable for the employee at the time the insurance to 
which the employee is entitled as an employee under this chapter 
stops pursuant to section 8706(a) of 
this title.". 
(b) Section 8704(a) of 
title 5 is amended to read as follows: 
"(a) An employee eligible for insurance is entitled to be insured for 
an amount of 
group life insurance equal to— 
"(1) the employee's basic insurance amount, multiplied by 
"(2) the appropriate factor determined on the basis of the 
employee's age in accordance with the following schedule: 
"If the age of the 
The appropriate 
employee is: 
factor is: 
35 or under. 
... 
.... 
........ 
..... 
...................2.0 
36 
1.9 
37 
1.8 
38 
1.7 
39 
.1.6 
40 
1.5 
41 
1.4 
42 
1.8 
43 
1.2 
44 
1.1 
45 or over 
. 
...... 
..... 
........ 
..... 1.0.". 
5 use 8706. 
94 STAT. 1832 
PUBLIC LAW 96-427—OCT. 10, 1980 
"Annual pay.' 
5 use 5545. 
5 use 8331. 
5 u s e 5545. 
Effective date. 
5 use 8704 
note. 
5 use 8101. 
(c) Section 87O40t)) of 
title 5 is amended— 
(1) by inserting before "Subject to" the following new sentence: 
"An employee eligible for insurance is entitled to be insured for 
group accidental death and dismemberment insurance in accord-
ance with this subsection."; 
(2) in the table, by striking out "shown in the schedule in 
subsection (a) of this section" each place it appears and inserting 
in lieu thereof "of the employee's basic insurance amount"; and 
(3) in the last sentence, oy striking out "the amount shown in 
the schedule in subsection (a) of this section" and inserting in 
lieu thereof "an amount equal to the employee's basic insurance 
amount.". 
(d) Section 8704(c) of title 5 is amended by striking out the last 
sentence and inserting in lieu thereof the following: "For the purpose 
of 
this chapter, 'annusu pay* includes— 
"(1) premium pay under section 5545(c)(1) of this title; and 
"(2) with respect to a law enforcement officer as defined in 
section 8331(20) of this title, premium pay under section 
5545(cX2) of 
this title.". 
(e) The item relating to section 8701 in the table of sections for 
chapter 87 of title 5 is amended by striking out "Definition" and 
inserting in lieu thereof "Definitions . 
if) SuD@ections (b) and (c) of this section shall take effect beginning 
with the first pay period beginning on or after Ctetober 1, 1981. 
CONTINUATION OF REGULAR GROUP LIFE INSURANCE 
SEC. 3. (a) Section 87060i)) of title 5, United States Code, is amended 
to read as follows: 
"(bXD In the case of any employee who retires on an immediate 
annuitv and has been insured under this chapter throughout— 
(A) the 5 years of service immediately preceding the date of 
the employee s retirement, or 
"(B) the full period or periods of service during which the 
employee was entitled to be insured, if fewer than 5 years, 
life insurance, without accidental death and dismemberment insur-
ance, may be continued, under conditions determined by the Office. 
"(2) In the case of any employee who becomes entitled to receive 
compensation under subchapter I of 
chapter 81 of 
this title because of 
disease or injury to the employee and has been insured imder this 
chapter throughout— 
"(A) the 5 years of service immediately preceding the date the 
employee becomes entitled to compensation, or 
(B) the full period or periods of service during which the 
employee was entitled to be insured, if fewer than 5 years, 
life insurance, without accidental death and dismemberment msur-
ance, may be continued, under conditions determined by the Office, 
during the period the employee is receiving compensation and is held 
by the Secretary of Labor or the Secretary's delegate to be unable to 
return to duty. 
"(3) The amount of life insurance continued under paragraph (1) or 
(2) of this subsection shall be continued, with or without reiduction, at 
the end of each full calendar month after the date the employee 
becomes 65 years of 
age and is retired or is receiving compensation for 
disease or injury, in accordance with the employee's written election 
at the time eligibility to continue insurance during retirement or 
receipt of 
compensation arises, as follows: 
PUBLIC LAW 96-427—OCT. 10, 1980 
94 STAT. 1833 
"(A) the employee may elect to have the deductions required by 
section 8707 of this title withheld from annuity or compensation, 5 use 8707. 
and the employee's life insurance shall be reduced each month by 
2 percent of the face value until 25 percent of the amount of life 
insurance in force before the first reduction remains; or 
"(B) in addition to any deductions which would be required if 
the insurance were continued as provided under subparagraph 
(A) of this paragraph, the employee may elect continuous with-
holdings from annuity or compensation in amounts determined 
by the Office, and the employee's life insurance coverage shall be 
either continued without reduction or reduced each month by no 
more than 1 percent of its face value until no less than 50 percent 
of the amount of insurance in force before the first reduction 
remains. 
"(4) If an employee elects to continue insurance under subpara-
graph (B) of paragraph (3) of this subsection at the time eligibility to 
continue insurance during retirement or receipt of compensation for 
disease or injury arises, the individual may later cancel that election 
and life insurance coverage shall continue as if the individual had 
originally elected coverage under subparagraph (A) of paragraph (3) 
of this subsection.". 
EMPLOYEE DEDUCTIONS; WITHHOLDING 
SEC. 4. (a) Section 8707 of title 5, United States Code, is amended to 
read as follows: 
"§ 8707. Employee deductions; withholding 
5 use 8707. 
"(a) During each period in which an employee is insured under a 
policy purchased by the Office of Personnel Management under 
section 8709 of this title, there shall be withheld from the employee's 5 use 8709. 
pay a share of the cost of the group life insurance and accidental 
death and dismemberment insurance. 
"(b)(1) Whenever life insurance continues after an employee retires 
on an immediate annuity or while the employee is receiving compen-
sation under subchapter I of chapter 81 of this title because of disease 5 use 8ioi. 
or injury to the employee, as provided in section 87060b) of this title, 
deductions for insurance shall be withheld from the employee's 
annuity or compensation, except that, in any case in which the 
insurance is continued as provided in section 8706(b)(3)(A) of this title, 5 use 8706. 
the deductions shall not be made for months after the calendar 
month in which the employee becomes 65 years of age. 
"(2) Notwithstanding paragraph (1) of this subsection, insurance 
shall be so continued without cost (other than as provided under 
section 8706(b)(3)(B)) to each employee who so retires, or commences 
receiving compensation, on or before December 31,1989. 
"(c) The amount withheld from the pay, annuity, or compensation 
of each employee subject to insurance deductions shall be at the rate, 
adjusted to the nearest half-cent, of 66% percent of the level cost as 
determined by the Office for each $1,000 of the employee's basic 
insurance amount. 
"(d) If an agency fails to withhold the proper amount of life Waiver. 
insurance deductions from an individual's salarj^ compensation, or 
retirement annuity, the collection of unpaid deductions may be 
waived by the agency if, in the judgment of the agency, the individual 
is without fault and recovery would be against equity and good 
conscience. However, if the agency so waives the collection of unpaid 
deductions, the agency shall submit an amount equal to the sum of 
94 STAT. 1834 
PUBLIC LAW 96-427—OCT. 10, 1980 
the uncollected deductions and related agency contributions required 
5 use 8708. 
under section 8708 of this title to the Office for deposit to the 
Employees' Life Insurance Fund.". 
"State." 
PREEMPTION 
SEC. 5. (a) Section 8709 of title 5, United States Code, is amended by 
inserting at the end thereof the following new subsection: 
"(d)(1) The provisions of any contract under this chapter which 
relate to the nature or extent of coverage or benefits (including 
payments with respect to benefits) shall supersede and preempt any 
law of any State or political subdivision thereof, or any regulation 
issued thereunder, which relates to group life insurance to the extent 
that the law or regulation is inconsistent with the contractual 
provisions. 
"(2) For the purpose of this section, 'State* means a State of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, and a territory or possession of the United States.". 
Waiver. 
5 u s e 8714b. 
5 use 
8709-8712. 
5 u s e 8702. 
5 u s e 8714a. 
CONTINUATION OF REGULAR OPTIONAL INSURANCE 
SEC. 6. (a) Section 8714a(cX2)(C) of title 5, United States Code, is 
amended to read as follows: 
"(C) The amount of optional life insurance continued under subpar-
agraph (A) or subparagraph (B) of this paragraph shall be reduced by 
2 percent at the end of each full calendar month after the date the 
employee becomes 65 years of age and is retired or is receiving 
compensation for disease or injury. The Office shall prescribe mini-
mum amounts, not less than 25 percent of the amount of life 
insurance in force before the first reduction, to which the insurance 
may be reduced.". 
(b) Section 8714a(d) of title 5 is amended by inserting "(1)" after 
"(d)" and by adding at the end thereof the following new paragraph: 
"(2) If an agency fails to withhold the proper cost of optioned 
insurance from an individual's salary, compensation, or retirement 
annuity, the collection of amounts properly due may be waived by the 
agency if, in the judgment of the agency, the individual is without 
fault and recovery would be against equity and good conscience. 
However, if the agency so waives the collection of any unpaid 
amount, the agency shall submit an amount equal to the uncollected 
amount to the Office for deposit to the Employees' Life Insurance 
Fund.". 
ADDITIONAL OPTIONAL LIFE INSURANCE 
SEC. 7. (a) Chapter 87 of title 5, United States Code, is further 
amended by inserting after section 8714a the following new section: 
"§ 8714b. Additional optional life insurance 
"(a) Under the conditions, directives, and terms specified in sec-
tions 8709 through 8712 of this title, the Office of Personnel Manage-
ment, without regard to section 5 of title 41, may purchase a policy 
which shall make available to each employee insured under section 
8702 of this title amounts of additional optional life insurance 
(without accidental death and dismemberment insurance). An 
employee may elect coverage under this section without regard to 
whether the employee has elected coverage under optional insurance 
available under section 8714a of 
this title. 
PUBLIC LAW 96-427—OCT. 10, 1980 
94 STAT. 1835 
"(b) The additional optional insurance provided under this section 
shall be made available to each eligible employee who has elected 
coverage under this section, under conditions the Office shall pre-
scribe, in multiples, at the employee's election, of 1,2,3,4, or 5 times 
the annual rate of basic pay payable to the employee (rounded to the 
next higher multiple of $1,000) except that coverage may not exceed 
an amount equal to 5 times the annual rate of basic pay payable for 
positions at level II of the Executive Schedule under section 5313 of 
this title (rounded to the next higher multiple of $1,000). An employee 5 use 5313. 
may reduce or stop coverage elected pursuant to this section at any 
time. 
"(c)(1) The additional optional insurance elected by an employee 
pursuant to this section shall stop on separation from service, 12 
months after discontinuance of pay, or on entry on active military 
duty or active duty for training, subject to provision for a 31-day 
temporary extension of insurance coverage and for conversion to an 
individual policy, as provided in sections 8706(a) and 8706(c) of this 
title. 
5 use 8706. 
"(2) In the case of any employee who retires on an immediate 
annuity or who becomes entitled to receive compensation under 
subchapter I of chapter 81 of this title because of disease or injury to 5 use 8101. 
the employee, so much of the additional optional insurance £is has 
been in force for not less than— 
"(A) the 5 years of service immediately preceding the date of 
retirement or entitlement to compensation, or 
"(B) the full period or periods of service during which the 
insurance was available to the employee, if fewer than 5 years, 
may be continued under conditions determined by the Office after 
retirement or while the employee is receiving compensation under 
subchapter I of chapter 81 of this title and is held by the Secretary of 
Labor (or the Secretary's delegate) to be unable to return to duty. The 
amount of insurance continued under this paragraph shall be 
reduced each month by 2 percent effective at the beginning of the 
second calendar month after the date the employee becomes 65 years 
of age and is retired or is in receipt of compensation. The reduction 
shall continue for 50 months at which time the insurance stops. 
"(d)(1) During each period in which the additional optional insur-
ance is in force on an employee the fiill cost thereof shall be withheld 
from the employee's pay. During each period in which an employee 
continues additional optional insurance after retirement or while in 
receipt of compensation under subchapter I of chapter 81 of this title 
because of disease or injury to the employee, as provided in subsection 
(c) of this section, the full cost thereof shall be withheld from the 
former employee's annuity or compensation, except that, beginning 
at the end of the calendar month in which the former employee 
becomes 65 years of age, the additional optional life insurance shall 
be without cost to the former employee. Amounts so withheld shall be 
deposited, used, and invested as provided in section 8714 of this title 5 use 8714. 
and shall be reported and accounted for together with amounts 
withheld under section 8714a(d) of this title. 
"(2) If an agency fails to withhold the proper cost of additional Waiver. 
optional insurance from an individual's salary, compensation, or 
retirement annuity, the collection of amounts properly due may be 
waived by the agency if, in the judgment of the agency, the individual 
is without fault and recovery would be against equity and good 
conscience. However, if the agency so waives the collection of any 
unpaid amount, the agency shall submit an amount equal to the 
94 STAT. 1836 
PUBLIC LAW 96-427—OCT. 10, 1980 
5 use 8714a. 
5 use 8705. 
uncollected amount to the Office for deposit to the Employees' Life 
Insurance Fund. 
"(e) The cost of the additional optional insurance shaU be deter-
mined from time to time by the Office on the basis of the employee's 
age relative to such age groups as the Office establishes under section 
8714a(e) of this title. 
"(f) The amount of additional optional life insurance in force on an 
employee at the date of his death shall be paid as provided in section 
8705 of this title.". 
(b) The table of 
sections for chapter 87 of 
title 5, United States Code, 
is amended by inserting after the item relating to section 8714a the 
following new item: 
"8714b. Additional optional life insurance.". 
5 use 8714c. 
5 use 
8709-8712. 
5 use 8702. 
5 use 8701. 
5 use 8706. 
5 use 8101. 
Ante, p. 1834. 
OPTIONAL LIFE INSURANCE ON FAMILY MEMBERS 
SEC. 8. (a) Chapter 87 of title 5, United States Code, is further 
amended by inserting after section 8714b (as added by section 7 of this 
Act) the following new section: 
*'§ 8714c. Optional life insurance on family members 
"(a) Under the conditions, directives, and terms specified in sec-
tions 8709 through 8712 of this title, the Office of Personnel Manage-
ment, without regard to section 5 of title 41, may purchase a policy 
which shall make available to each employee insured imder section 
8702 of this title amounts of optional life insurance (without acciden-
tal death and dismemberment insurance) on the employee's family 
members. 
"(b) The optional life insurance on family members provided under 
this section shall be made available to each eligible employee Who 
elects coverage under this section, under conditions the Office shall 
prescribe, in the amount of $5,000 for a spouse and $2,500 for each 
child described in section 8701(d). The employee may stop coverage 
elected under this section at any time. 
"(c)(1) Optional life insurance on family members shall stop at the 
earlier of the employee's death, the employee's separation from the 
service, 12 months after discontinuance of pay, or the employee's 
entry on active duty or active duty for training, as provided in 
sections 8706(a) and 8706(c) of this title, subject to provision for a 31-
day temporary extension of insurance coverage and for conversion to 
individual policies under conditions approved by the Office. 
"(2) In the case of any employee who retires on an immediate 
annuity or who becomes entitled to receive compensation under 
subchapter I of chapter 81 of this title because of disesise or injury to 
the employee and who has had in force insurance under this section 
for no less than— 
"(A) the 5 years of service immediately preceding the date of 
retirement or entitlement to compensation, or 
"(B) the full period or periods of service during which the 
insurance was available to the employee, if fewer than 5 years, 
optional life insurance on family members may be continued under 
the same conditions as provided in section 8714b(cX2) of this title. 
"(d)(1) During each period in which the optional life insurance on 
family members is in force the full cost thereof shall be withheld from 
the employee's pay. During each period in which an employee 
continues optional life insurance on family members after retirement 
or while in receipt of compensation under subchapter I of chapter 81 
of this title because of disease or injury to the employee, as provided 
PUBLIC LAW 96-427—OCT. 10, 1980 
94 STAT. 1837 
5 u s e 8714. 
5 u s e 8714a. 
Waiver. 
in subsection (c) of this section, the full cost shall be withheld from 
the annuity or compensation, except that, beginning at the end of the 
calendar month in which the former employee becomes 65 years of 
age, the optional life insurance on family members shall be without 
cost to the employee. Amounts so withheld shall be deposited, used, 
and invested as provided in section 8714 of this title and shall be 
reported and accounted for together with amounts withheld under 
section 8714a(d) of this title. 
"(2) If an agency fails to withhold the proper cost of optional life 
insurance on family members from an individual's salary, compensa-
tion, or retirement annuity, the collection of amounts properly due 
may be waived by the agency if, in the judgment of the agency, the 
individual is without fault and recovery would be against equity and 
good conscience. However, if the agency so waives the collection of 
any unpaid amount, the agency shall submit an amount equal to the 
uncollected amount to the Office for deposit to the Employees' Life 
Insurance Fund. 
"(e) The cost of the optional life insurance on family members shall 
be determined from time to time by the Office on the basis of the 
employee's age relative to such age groups as the Office establishes 
under section 8714a(e) of 
this title. 
"(f) The amount of optional life insurance which is in force under 
this section on a family member of an employee or former employee 
on the date of the death of the family member shall be paid, on the 
establishment of a valid claim by the employee, to such employee or, 
in the event of the death of the employee before payment can be 
made, to the person or persons entitled to the group life insurance in 
force on the employee under section 8705 of 
this title.". 
O
t
>
) Section 8701 of title 5 is further amended by inserting at the end 
thereof the following new subsection: 
"(d)(1) For the purpose of this chapter, 'family member*, when used 
with respect to any individual, means— 
"(A) the spouse of 
the individual; and 
"(B) an unmarried dependent child of the individual (other 
than a stillborn child), including an adopted child, stepchild Ot)ut 
only if the stepchild lived with the individual in a regular parent-
child relationship), or recognized natural child— 
"(i) who is less than 22 years of age, or 
"(ii) who is 22 years of age or older and is incapable of self-
support because of a mental or physical disability which 
existed before the child became 22 years of age. 
"(2) For the purpose of this subsection, 'dependent', in the case of "Dependent." 
any child, means that the individual involved was, at the time of the 
child's death, either living with or contributing to the support of the 
child, as determined in accordance with the regulations the Office 
shall prescribe.". 
(c) The table of sections for chapter 87 of such title 5 is amended by 
inserting after the item relating to section 8714b (as added by section 
7 of this Act) the following new item: 
"8714c. Optional life insurance on family members.". 
5 u s e 8705. 
Ante, p. 1831. 
"Family 
member." 
REPEAL OP SECTION 8713 OP TITLE 5 
SEC. 9. (a) Section 8713 of title 5, United States Code, is repealed. 
(b) The table of sections for chapter 87 of title 5 is amended by 
striking out the item relating to section 8713. 
94 STAT. 1838 
PUBLIC LAW 96-427—OCT. 10, 1980 
EFFECTIVE DATES 
5 use 8701 note. 
SEC. 10. (a) Unless otherwise specified, this Act shall take effect on 
the date of the enactment of this Act and shall have no effect in the 
case of an employee who died, was separated, or retired before the 
date of enactment. 
(b) The amendment made by subsection (d) of section 2 of this Act 
shall apply with r e s ^ t to premium pay payable under section 
5545(cX2) of title 5, United States Code, from and after the first day of 
the first pay ^riod which begins on or after the date of the 
enactment of tms Act. 
(c) The amendments made by section 3 of this Act shall apply only 
in the case of an emplo^^ee who retires or becomes entitled to receive 
compensation for work injury on or after the 180th day following the 
date of the enactment of this Act, or any earlier date that the Office of 
Personnel Management may prescribe which is at least 60 days after 
the date of enactment. 
(d) The amendments made by sections 7 and 8 of this Act shall take 
effect on the first day of the first pay period which begins on or after 
the 180th day following the date of the enactment of this Act, or on 
any earlier date that the Office may prescribe which is at least 60 
days after the date of enactment, and shall have no effect in the case 
of an employee who died, was finally separated, or retired before the 
effective date. 
AVAILABILITY OF'CERTAIN FUNDS IN EMPLOYEES* LIFE INSURANCE FUND 
5 use 8714a 
SEC. 11. Amounts credited to the Employees* Life Insurance Fund 
"°*« 
under section 8714a(d) of title 5, United States Code, shall be 
available for expenses incurred by the Office of Personnel Manage-
ment in implementing the amenditnents made by sections 7 and 8 of 
this Act. 
Approved October 10, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-1280 (Post Office and eivil Service). 
eONGRESSIONAL RECORD, Vol. 126 (1980): 
Sept. 8, considered and passed House. 
Sept. 29, considered and passed Senate.