FEGLI Living Benefits Act
PL 103-409 (H.R.512), enacted 10/25/1994

108 STAT. 4230 
PUBLIC LAW 103-409—OCT. 25, 1994 
Public Law 103-409 
103d Congress 
Oct. 25, 1994 
[H.R. 512] 
FEGLI Living 
Benefits Act. 
5 u s e 8701 
note. 
Regulations. 
An Act 
To amend chapter 87 of title 5, United States Code, to provide that group life 
insurance benefits under such chapter may, upon application, be paid out to 
an insured individual who is terminally ill; to provide for continuation of health 
benefits coverage for certain individuals enrolled in health benefits plans adminis-
tered by the Office of the Comptroller of the Currency or the Office of Thrifl 
Supervision; and for other piuposes. 
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 "FEGLI Living Benefits Act". 
SEC. 2. OPTION TO RECEIVE "LIVING HENEFTrS". 
(a) IN GENERAL.—Chapter 87 of title 5, United States Code, 
is amended by inserting after section 8714c the following: 
"§ 8714d. Option to receive *living benefits' 
"(a) For the purpose of this section, an individual shall be 
considered to be Terminally ill' if such individual has a medical 
{)rognosis that such individual's life expectancy is 9 months or 
ess. 
"(b) The OflBce of Personnel Management shall prescribe regula-
tions under which anv individual covered by group life insurance 
under section 8704(a) may, if such individual is terminally ill, 
elect to receive a lump-sum payment equal to— 
"(1) the ftiU amount of insurance under section 8704(a) 
(or portion thereof designated for this purpose under subsection 
(d)(4)) which would omerwise be payable imder this chapter 
(on the establishment of a valid claim)— 
"(A) computed based on a date determined under regu-
lations of the Office (but not later than 30 days after 
tiie date on which the individual's application for benefits 
under this section is approved or deemed approved under 
subsection (d)(3)); and 
"(B) assuming continued coverage under this chapter 
at that time; 
reduced by 
"(2) an amount necessary to assure that there is no increase 
in the actuarial value of the benefit paid (as determined under 
regulations of the Office). 
"(c)(1) If a lump-sum payment is taken imder this section— 
"(A) no insurance under the provisions of section 8704 
(a) or (b) shall be payable based on the death or any loss 
of the individual involved, unless the lump-sum payment rep-
PUBLIC LAW 103-409—OCT. 25, 1994 
108 STAT. 4231 
resents only a portion of the total benefits which could have 
been taken, in which case benefits under those provisions shall 
remain in effect, except that the basic insurance amount on 
which they are based— 
"(i) shall be reduced by the percentage which the des-
ignated portion comprised relative to tiie total benefits 
which could have been taken (rounding the result to the 
nearest multiple of $1,000 or, if midway between multiples 
. . 
of $1,000, to the next higher multiple of $1,000); and 
**(ii) shall not be subject to further a^ustment; and 
"(B) deductions and withholdings under section 8707, and 
contributions under section 8708, shaU be terminated with 
respect to such individual (or reduced in a manner consistent ' 
witii the percentage reduction in the individual's basic insur- » 
ance amount, if applicable), effective with respect to any 
amounts which would otherwise become due on or after the 
date of payment under this section. 
"(2) An individual who takes a lump-sum payment under this 
section (whether full or partial) remains eligible for optional benefits * 
under sections 8714a-8714c (subject to payment of the fiill cost 
of those benefits in accordance with applicable provisions of the 
section or sections involved, to the same extent as if no election 
under this section had been made). 
"(d)(1) The Office's regulations shall include provisions regard-
ing the form and manner in which an application under this section 
i 
shall be made and the procedures in accordance with which any 
such application shall be considered. 
"(2) AQ application shall not be considered to be complete 
unless it includes such information and supporting evidence as 
the regulations require, including certification by an appropriate 
medical authority as to the nature of the individual's illness and 
that the individual is not expected to live more than 9 months 
because of that illness. 
"(3)(A) In order to ascertain the reUability of any medical opin-
ion or finding submitted as part of an appUcation under this section, 
the covered individual may be required to submit to a medical 
examination under tlie direction of me agency or entity considering 
the application. The individual shall not be liable for the costs 
associated with any examination required under this subparagraph. 
"(B) Any decision by the reviewing agency or entity with respect 
to an application for benefits under tiiis section (including one 
relating to an individual's medical prognosis) shall not be subject 
to administrative review. 
"(4)(A) An individual making an election under this section > 
may designate that only a limited portion (expressed as a multiple 
of $1,000) of the total amount otherwise allowable under this section 
be paid pursuant to such election. 
"(B) A designation under this paragraph may not be made 
by an individual described in paragraph (1) or (2) of section 8706(b). 
"(5) An election to receive benefits under this section shall 
be irrevocable, and not more than one such election may be made 
by any individual. 
"(6) The regulations shall iaclude provisions to address the 
question of how to apply section 8706(bX3XB) in the case of an 
electing individuEil who has attained 65 years of age.". 
108 STAT. 4232 
PUBLIC LAW 103-409—OCT. 25, 1994 
(b) TABLE OF SECTIONS.—^The table of sections for chapter 87 
of title 5, United States Code, is amended by inserting after the 
item relating to section 8714c the following: 
"8714d. Option to receive living benefits'.". 
SEC. 3. EFFECTIVE DATE; OPEN SEASON AND NOTICE. 
5 use 8704 
(a) EFFECTIVE DATE.—^The amendments made by section 2 shall 
^^^- 
take effect 9 months after the date of the enactment of this Act. 
Regulations. 
(b) OPEN SEASON; NOTICE.—(1) The Office of Personnel Manage-
^ V^^ ^^^^ 
ment shall prescribe regulations under which, beginning not later 
"^ 
than 9 months after the date of the enactment of this Act, and 
over a period of not less than 8 weeks— 
(A) an employee (as defined by section 8701(a) of titie 
5, United States Code) who declined or voluntarily terminated 
coverage imder chapter 87 of such title— 
(i) may elect to begin, or to restune, group life insurance 
•^ 
and group accidental death and dismemberment insurance; 
and 
-
f 
(ii) may make such other elections under such chapter 
as the Office may allow; and 
(B) such other elections as the Office allows may be made. 
(2) The Office shsJl take such action as may be necessary 
to ensure that employees and any other individuals who would 
be eligible to make an election under this subsection are afforded 
advance notification to that effect. 
5 use 8714 
SEC. 4. FUNDING. 
Notwithstanding section 8714(aXl) of titie 5, United States 
Code, the Office of Personnel Management shall retain in tiie 
Employees' Life Insurance Fund such portion of premium payments 
otherwise due as wiU, no later than September 30, 1995, perma-
nentiy reduce the contingency reserve established under the third 
sentence of section 8712 of such titie 5 by an amount equal to 
the amount by which payments from the Employees' Life Insurance 
Fund dming the fiscal year ending September 30, 1995, exceed 
the payments that would have been paid had the amendments 
made by this Act not been enacted. 
5 use 8901 
SEC. 5. CONTINUATION 
OF HEALTH 
BENEFITS 
COVERAGE FOR 
note- 
INDIVIDUALS ENROLLED IN A PLAN ADMINISTERED BY THE 
OFFICE OF THE COMPTROLLER OF THE CURRENCY OR THE 
OFFICE OF THRIFT SUPERVISION. 
(a) ENROLLMENT IN CHAPTER 89 PLAN.—For purposes of the 
administration of chapter 89 of titie 5, United States Code, amy 
period of enrollment under a health benefits plan administered 
by tiie Office of the Comptroller of the Currency or the Office 
of Thrift Supervision before the termination of such plans on Janu-
ary 7, 1995, shall be deemed to be a period of enrollment in 
a health benefits plan under chapter 89 of such titie. 
(b) CONTINUED COVERAGE.—-(1) Any individual who, on January 
7, 1995, is covered by a hesdth benefits pleui administered by the 
Office of the Comptroller of the Ciirrency or the Office of Thrift 
Supervision may enroll in an approved health benefits plsui 
described under section 8903 or 8903a of titie 5, United States 
Code— 
(A) either as an individual or for self and family, if such 
individual is an employee, annuitant, or former spouse as 
defined under section 8901 of such titie; and 
PUBLIC LAW 103-409—OCT. 25, 1994 
108 STAT. 4233 
(B) for coverage effective on and after January 8, 1995. 
(2) An individual who, on January 7, 1995, is entitled to contin-
ued coverage under a health benefits plan administered by the 
Office of the Comptroller of the Currency or the Office of Thrift 
Supervision— 
(A) shall be deemed to be entitled to continued coverage 
under section 8905a of titie 5, United States Code, for the 
same period that would have been permitted under the plan 
administered by the Office of the Comptroller of the Currency 
or the Office of Thrift Supervision; and 
(B) may enroll in an approved health benefits plan 
described under section 8903 or 8903a of such titie in accord-
since with section 8905a of such titie for coverage effective 
on and after January 8,1995. 
(3) An individual who, on January 7, 1995, is covered as an 
unmarried dependent child under a healtii benefits pl£in adminis-
tered by the Office of the Comptroller of the Currency or the 
Office of Thrift Supervision and who is not a member of family 
as defined under section 8901(5) of titie 5, United States Code— 
(A) shall be deemed to be entitied to continued coverage 
imder section 8905a of such titie as though the individual 
had, on January 7, 1995, ceased to meet the requirements 
for being considered an unmarried dependent child under chap-
ter 89 of such titie; and 
(B) may enroll in an approved health benefits plan 
described under section 8903 or 8903a of such titie in accord-
ance with section 8905a for continued coverage effective on 
and Eifter January 8,1995. 
(c) TRANSFERS TO THE EMPLOYEES HEALTH BENEFITS FUND.— 
The Office of the Comptroller of the Currency and the Office of 
Thrift Supervision shall transfer to the Employees Health Benefits 
Fund established under section 8909 of titie 5, United States Code, 
Eunounts determined by the Director of the Office of Personnel 
Management, after consultation with the Office of the Comptroller 
of the Currency and the Office of Thrift Supervision, to be necessary 
to reimburse the Fund for the cost of providing benefits under 
this section not otherwise paid for by the individuals covered by 
this section. The amounts so transferred shall be held in the Fund 
and used by the Office in addition to amounts available under 
section 8906(g)(1) of such titie. 
(d) ADMINISTRATION AND REGULATIONS.—The Office of Person-
nel Msmagement— 
(1) shall administer the provisions of this section to provide 
for— 
(A) a period of notice and open enrollment for individ-
uals affected by this section; and 
108 STAT. 4234 
PUBLIC LAW 103-409—OCT. 25, 1994 
(B) no lapse of health coverage for individuals who 
enroll in a health benefits plan under chapter 89 of title 
5, United States Code, in accordance wim this section; 
and 
(2) may prescribe regulations to implement this section. 
Approved October 25, 1994. 
LEGISLATIVE HISTORY—H.R. 512: 
HOUSE REPORTS: No. 103-608 (Comm. on Post Office and Civil Service). 
SENATE REPORTS: 103-395 (Comm. on Governmental Affairs). 
CONGRESSIONAL RECORD, Vol. 140 (1994): 
July 19, considered and passed House. 
Oct. 7, considered and passed Senate, amended. House concurred 
in Senate amendments.