An Act to amend subchapter III of chapter 83 of title 5, United States Code, to provide that employees who retire after 5 years of service, in certain instances, may be eligible to retain their life and health insurance benefits, and for other purposes.
PL 95-583 (H.R.4319), enacted 11/02/1978

PUBLIC LAW 95-583—NOV. 2, 1978 
92 STAT. 2481 
Public Law 95-583 
95th Congress 
An Act 
To amend subchapter III of chapter 83 of title 5, United States Code, to provide 
that employees who retire after 5 years of service, in certain instances, may 
be eligible to retain their life and health insurance benefits, and for other 
purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled-, That (a) section 
8706 of title 5, United States Code, is amended— 
(1) by striking out subsections (b) and (c) and inserting in 
lieu thereof the following new subsection: 
"(b)(1) If on the date the insurance would otherwise stop the 
employee retires on an immediate annuity and has been insured under 
this chapter throughout— 
"(A) the 5 years of service immediately preceding such date, 
or 
"(B) the full period or periods of service during which the 
employee was entitled to be insured, if less than 5 years, 
life insurance only may be continued, without cost to the employee, 
under conditions determined by the Commission. 
" (2) If on the date the insurance would otherwise stop the employee 
is receiving compensation under subchapter I of chapter 81 of this 
title because of disease or injury to the employee and has been insured 
under this chapter throughout— 
" (A) the 5 years of service immediately preceding such date, or 
"(B) the full period or periods of service during which the 
employee was entitled to be insured, if less than 5 years, 
life insurance only may be continued, without cost to the employee, 
under conditions determined by the Commission, during the period 
the employee is receiving compensation for work injuries and is held 
by the Secretary of Labor or his delegate to be unable to return to 
duty. 
"(3) The amount of life insurance continued under paragraph (1) 
or paragraph (2) of this subsection 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 such compensa-
tion for disease or injury. The Commission shall prescribe minimum 
amounts, not less than 25 percent of the amount of life insurance in 
force before the first reduction, to Avhich the insurance may be 
reduced."; 
(2) by redesignating subsections (d) through (f) as subsections 
(c) through (e),respectively; and 
(3) by striking out "(a)-(c)" in subsection (d), as redesig-
nated by paragraph (2), and inserting in lieu thereof "(a) and 
(b) Section 8705(a) of title 5, United States Code, is amended by 
striking out "or (c)". 
(c) Section 8714a of title 5, United States Code, is amended— 
(1) by striking out "8706(d)" in subsection (c) (1) and insert-
ing in lieu thereof "8706 (c)"; 
(2) by amending subsection (c) (2) to read as follows: 
Nov. 2, 1978 
[H.R. 4319] 
Federal 
employees, life 
and health 
insurance 
benefits. 
Compensation. 
5 u s e 8101 et 
seq. 
92 STAT. 2482 
PUBLIC LAW 95-583—NOV. 2, 1978 
Optional life 
insurance. 
Compensation. 
5 use 8101. 
Effective date. 
5 u s e 8706 note. 
" (2) (A) In the case of any employee who retires on an immediate 
annuity and has been insured under this section throughout— 
"(i) the 5 years of service immediately preceding the date of 
such retirement, or 
"(ii) the full period or i)eriods of service during which the 
employee was entitled to be insured, if less than 5 years, 
the amount of optional life insurance only which has been in force 
throughout such period may be continued, under conditions deter-
mined by the Commission. 
"(B) 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 under this 
section throughout— 
"(i) the 5 years of service immediately preceding the date such 
employee becomes entitled to such compensation, or 
"(ii) the full period or periods of service during which the 
employee was entitled to be insured, if less than 5 years, 
the amount of optional life insurance only which has been in force 
throughout such period may be continued, under conditions deter-
mined by the Commission, during the period the employee is receiving 
such compensation for disease or injury and is held by the Secretary 
of Labor or his delegate to be unable to return to duty. 
"(C) The amount of optional life insurance continued under sub-
paragraph (A) or subparagraph (B) of this paragraph shall be 
subject to the same monthly reductions as required for regular life 
insurance under section 8706(b) (3) of this title."; and 
(3) by striking out "or 8706 (c)" in subsection (d). 
SEC. 2. Section 8901(3) (A) of title 5, United States Code, is 
amended by striking out "12" and inserting in lieu thereof "5". 
SEC. 3. The amendments made by this Act shall take effect on the 
date of the enactment of this Act. 
Approved November 2, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-284 (eomm. on Post Office and Civil Service). 
SENATE REPORT No. 95-1080 (Comm. on Governmental Affairs). 
CONGRESSIONAL RECORD: 
Vol. 123 (1977): July 18, considered and passed House. 
Vol. 124 (1978): Aug. 18, considered and passed Senate, amended. 
Oct. 10, House concurred in Senate amendment with 
amendment. 
Oct. 13, Senate concurred in House amendment.