80 FR 18265 - Federal Employees' Retirement System; Present Value Factors

OFFICE OF PERSONNEL MANAGEMENT

Federal Register Volume 80, Issue 64 (April 3, 2015)

Page Range		18265-18266
FR Document		2015-07694
The Office of Personnel Management (OPM) is providing notice of adjusted present value factors applicable to retirees who elect to provide survivor annuity benefits to a spouse based on post-retirement marriage, and to retiring employees who elect the alternative form of annuity or elect to credit certain service with nonappropriated fund instrumentalities. This notice is necessary to conform the present value factors to changes in the economic and demographic assumptions adopted by the Board of Actuaries of the Civil Service Retirement System.
Federal Register, Volume 80 Issue 64 (Friday, April 3, 2015)
[Federal Register Volume 80, Number 64 (Friday, April 3, 2015)]
[Notices]
[Pages 18265-18266]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-07694]


-----------------------------------------------------------------------

OFFICE OF PERSONNEL MANAGEMENT


Federal Employees' Retirement System; Present Value Factors

AGENCY: Office of Personnel Management.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Office of Personnel Management (OPM) is providing notice 
of adjusted present value factors applicable to retirees who elect to 
provide survivor annuity benefits to a spouse based on post-retirement 
marriage, and to retiring employees who elect the alternative form of 
annuity or elect to credit certain service with nonappropriated fund 
instrumentalities. This notice is necessary to conform the present 
value factors to changes in the economic and demographic assumptions 
adopted by the Board of Actuaries of the Civil Service Retirement 
System.

DATES: The revised present value factors apply to survivor reductions 
or employee annuities that commence on or after October 1, 2015.

ADDRESSES: Send requests for actuarial assumptions and data to the 
Board of Actuaries, care of Gregory Kissel, Senior Actuary, Office of 
Planning and Policy Analysis, Office of Personnel Management, Room 
4307, 1900 E Street NW., Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT: Karla Yeakle, (202) 606-0299.

SUPPLEMENTARY INFORMATION: Several provisions of the Federal Employees' 
Retirement System (FERS) require reduction of annuities on an actuarial 
basis. Under each of these provisions, OPM is required to issue 
regulations on the method of determining the reduction to ensure that 
the present value of the reduced annuity plus a lump-sum equals, to the 
extent practicable, the present value of the unreduced benefit. The 
regulations for each of these benefits provide that OPM will publish a 
notice in the Federal Register whenever it changes the factors used to 
compute the present values of these benefits.
    Section 842.706(a) of title 5, Code of Federal Regulations, 
prescribes the method for computing the reduction in the beginning rate 
of annuity payable to a retiree who elects an alternative form of 
annuity under 5 U.S.C. 8420a. That reduction is required to produce an 
annuity that is the actuarial equivalent of the annuity of a retiree 
who does not elect an alternative form of annuity. The present value 
factors listed below are used to compute the annuity reduction under 5 
CFR 842.706(a).
    Section 842.615 of title 5, Code of Federal Regulations, prescribes 
the use of these factors for computing the reduction required for 
certain elections to provide survivor annuity benefits based on a post-
retirement marriage or divorce under 5 U.S.C. 8416(b), 8416(c), or 
section 8417(b). Under section 11004 of the Omnibus Budget 
Reconciliation Act of 1993, Public Law 103-66, effective October 1, 
1993, OPM ceased collection of these survivor election deposits by 
means of either a lump-sum payment or installments. Instead, OPM is 
required to establish a permanent actuarial reduction in the annuity of 
the retiree. This means that OPM must take the amount of the deposit 
computed under the old law and translate it into a lifetime reduction 
in the retiree's benefit.
    Subpart F of part 847 of title 5, Code of Federal Regulations, 
prescribes the use of present value factors for computing the 
deficiency the retiree must pay to receive credit for certain service 
with nonappropriated fund instrumentalities made creditable by an 
election under section 1043 of Public Law 104-106. Subpart I of part 
847 of title 5, Code of Federal Regulations, prescribes the use of 
present value factors for employees that elect to credit 
nonappropriated fund instrumentality service to qualify for immediate 
retirement under section 1132 of Public Law 107-107.
    OPM published the present value factors currently in effect on May 
21, 2014, at 79 FR 29222 and on April 3, 2015, OPM published a notice 
to revise the normal cost percentage under the Federal Employees' 
Retirement System (FERS) Act of 1986, Public Law 99-335, based on 
changed demographic assumptions adopted by the Board of Actuaries of 
the Civil Service Retirement System. Under 5 U.S.C. 8461(i), those 
changes require corresponding changes in the present value factors used 
to produce actuarially equivalent benefits when required by the FERS 
Act. The revised factors will become effective on October 1, 2015, to 
correspond with the changes in FERS normal cost percentages. For 
alternative forms of annuity, the new factors will apply to annuities 
that commence on or after October 1, 2015. See 5 CFR 842.706. For 
survivor election deposits, the new factors will apply to survivor

[[Page 18266]]

reductions that commence on or after October 1, 2015. See 5 CFR 
842.615(b). For obtaining credit for service with certain 
nonappropriated fund instrumentalities, the new factors will apply to 
cases in which the date of computation under 5 CFR 847.603 or 847.809 
is on or after October 1, 2015. See 5 CFR 847.602(c), 847.603, and 
847.809.
    OPM is, therefore, revising the tables of present value factors to 
read as follows:

        Table I--FERS Present Value Factors for Ages 62 and Older
   [Applicable to annuity payable following an election under 5 U.S.C.
 8416(b), 8416(c), 8417(b), 8420a, under section 1043 of Public Law 104-
            106, or under section 1132 of Public Law 107-107]
------------------------------------------------------------------------
                                                           Present value
                           Age                                factor
------------------------------------------------------------------------
62......................................................           200.8
63......................................................           195.0
64......................................................           189.1
65......................................................           183.2
66......................................................           177.2
67......................................................           171.2
68......................................................           165.1
69......................................................           158.9
70......................................................           152.8
71......................................................           146.6
72......................................................           140.4
73......................................................           134.2
74......................................................           128.0
75......................................................           121.9
76......................................................           116.0
77......................................................           110.1
78......................................................           104.3
79......................................................            98.7
80......................................................            93.2
81......................................................            87.9
82......................................................            82.7
83......................................................            77.8
84......................................................            72.9
85......................................................            68.3
86......................................................            63.9
87......................................................            59.6
88......................................................            55.5
89......................................................            51.6
90......................................................            48.0
91......................................................            44.7
92......................................................            41.6
93......................................................            38.7
94......................................................            36.1
95......................................................            33.8
96......................................................            31.7
97......................................................            29.9
98......................................................            28.1
99......................................................            26.4
100.....................................................            24.9
101.....................................................            23.7
102.....................................................            22.5
103.....................................................            21.2
104.....................................................            20.2
105.....................................................            19.4
106.....................................................            18.4
107.....................................................            16.5
108.....................................................            12.9
109.....................................................             6.4
------------------------------------------------------------------------


      Table II.A--FERS Present Value Factors for Ages 40 Through 61
[Applicable to annuity payable when annuity is not increased by cost-of-
  living adjustments before age 62 following an election under 5 U.S.C.
 8416(b), 8416(c), 8417(b), 8420a, under section 1043 of Public Law 104-
            106, or under section 1132 of Public Law 107-107]
------------------------------------------------------------------------
                                                           Present value
                           Age                                factor
------------------------------------------------------------------------
40......................................................           216.8
41......................................................           216.5
42......................................................           216.1
43......................................................           215.6
44......................................................           215.1
45......................................................           214.6
46......................................................           214.0
47......................................................           213.4
48......................................................           212.8
49......................................................           212.2
50......................................................           211.7
51......................................................           211.1
52......................................................           210.5
53......................................................           209.8
54......................................................           209.0
55......................................................           208.2
56......................................................           207.2
57......................................................           206.2
58......................................................           205.1
59......................................................           204.1
60......................................................           203.0
61......................................................           201.9
------------------------------------------------------------------------


      Table II.B--FERS Present Value Factors for Ages 40 Through 61
  [Applicable to annuity payable when annuity is increased by cost-of-
  living adjustments before age 62 following an election under 5 U.S.C.
  8416(b), 8416(c), 8417(b), or 8420a, under section 1043 of Public Law
          104-106, or under section 1132 of Public Law 107-107]
------------------------------------------------------------------------
                                                           Present value
                           Age                                factor
------------------------------------------------------------------------
40......................................................           295.8
41......................................................           292.7
42......................................................           289.5
43......................................................           286.2
44......................................................           282.7
45......................................................           279.1
46......................................................           275.4
47......................................................           271.6
48......................................................           267.7
49......................................................           263.8
50......................................................           259.9
51......................................................           255.8
52......................................................           251.7
53......................................................           247.3
54......................................................           242.8
55......................................................           238.0
56......................................................           233.0
57......................................................           228.0
58......................................................           222.8
59......................................................           217.4
60......................................................           212.0
61......................................................           206.4
------------------------------------------------------------------------


 Table III--FERS Present Value Factors for Ages at Calculation Below 40
 [Applicable to annuity payable following an election under section 1043
   of Public Law 104-106 or under section 1132 of Public Law 107-107]
------------------------------------------------------------------------
                                                           Present value
                   Age at calculation                      of a monthly
                                                              annuity
------------------------------------------------------------------------
17......................................................           348.5
18......................................................           346.8
19......................................................           345.1
20......................................................           343.3
21......................................................           341.4
22......................................................           339.5
23......................................................           337.6
24......................................................           335.6
25......................................................           333.6
26......................................................           331.5
27......................................................           329.4
28......................................................           327.2
29......................................................           324.9
30......................................................           322.6
31......................................................           320.2
32......................................................           317.8
33......................................................           315.3
34......................................................           312.7
35......................................................           310.1
36......................................................           307.4
37......................................................           304.6
38......................................................           301.7
39......................................................           298.8
------------------------------------------------------------------------


U.S. Office of Personnel Management.
Katherine Archuleta,
Director.
[FR Doc. 2015-07694 Filed 4-2-15; 8:45 am]
BILLING CODE 6325-38-P
Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Notices 18265

CSRS PRESENT VALUE FACTORS AP- U.S. Office of Personnel Management. of annuity under 5 U.S.C. 8420a. That
PLICABLE TO ANNUITY PAYABLE FOL- Katherine Archuleta, reduction is required to produce an
LOWING AN ELECTION UNDER SEC- Director. annuity that is the actuarial equivalent
TION 8339(J) OR (K) OR SECTION [FR Doc. 2015–07677 Filed 4–2–15; 8:45 am] of the annuity of a retiree who does not
elect an alternative form of annuity. The
8343A OF TITLE 5, UNITED STATES BILLING CODE 6325–38–P
present value factors listed below are
CODE, OR UNDER SECTION 1043 OF used to compute the annuity reduction
PUBLIC LAW 104–106 OR UNDER OFFICE OF PERSONNEL under 5 CFR 842.706(a).
SECTION 1132 OF PUBLIC LAW 107– MANAGEMENT Section 842.615 of title 5, Code of
107 OR UNDER FERCCA OR FOL- Federal Regulations, prescribes the use
LOWING A REDEPOSIT UNDER SEC- Federal Employees’ Retirement of these factors for computing the
TION 8334(D)(2) OF TITLE 5, UNITED System; Present Value Factors reduction required for certain elections
STATES CODE—Continued to provide survivor annuity benefits
AGENCY: Office of Personnel based on a post-retirement marriage or
Management. divorce under 5 U.S.C. 8416(b), 8416(c),
Present value
Age ACTION: Notice. or section 8417(b). Under section 11004
factor
of the Omnibus Budget Reconciliation
98 .......................................... 28.4 SUMMARY: The Office of Personnel Act of 1993, Public Law 103–66,
99 .......................................... 26.7 Management (OPM) is providing notice effective October 1, 1993, OPM ceased
100 ........................................ 25.1 of adjusted present value factors collection of these survivor election
101 ........................................ 23.9 applicable to retirees who elect to deposits by means of either a lump-sum
102 ........................................ 22.6 provide survivor annuity benefits to a payment or installments. Instead, OPM
103 ........................................ 21.3 spouse based on post-retirement is required to establish a permanent
104 ........................................ 20.3 marriage, and to retiring employees who actuarial reduction in the annuity of the
105 ........................................ 19.5 elect the alternative form of annuity or retiree. This means that OPM must take
106 ........................................ 18.5 elect to credit certain service with the amount of the deposit computed
107 ........................................ 16.5 nonappropriated fund instrumentalities. under the old law and translate it into
108 ........................................ 12.9 This notice is necessary to conform the a lifetime reduction in the retiree’s
109 ........................................ 6.4 present value factors to changes in the benefit.
economic and demographic Subpart F of part 847 of title 5, Code
assumptions adopted by the Board of of Federal Regulations, prescribes the
CSRS PRESENT VALUE FACTORS AP- Actuaries of the Civil Service use of present value factors for
PLICABLE TO ANNUITY PAYABLE FOL- Retirement System. computing the deficiency the retiree
LOWING AN ELECTION UNDER SEC- DATES: The revised present value factors must pay to receive credit for certain
TION 1043 OF PUBLIC LAW 104–106 apply to survivor reductions or service with nonappropriated fund
OR UNDER SECTION 1132 OF PUB- employee annuities that commence on instrumentalities made creditable by an
LIC LAW 107–107 OR UNDER or after October 1, 2015. election under section 1043 of Public
FERCCA ADDRESSES: Send requests for actuarial Law 104–106. Subpart I of part 847 of
[For ages at calculation below 40] assumptions and data to the Board of title 5, Code of Federal Regulations,
Actuaries, care of Gregory Kissel, Senior prescribes the use of present value
Present value Actuary, Office of Planning and Policy factors for employees that elect to credit
Age at calculation of a monthly Analysis, Office of Personnel nonappropriated fund instrumentality
annuity Management, Room 4307, 1900 E Street service to qualify for immediate
NW., Washington, DC 20415. retirement under section 1132 of Public
17 .......................................... 402.6 Law 107–107.
18 .......................................... 400.1 FOR FURTHER INFORMATION CONTACT: OPM published the present value
19 .......................................... 397.6 Karla Yeakle, (202) 606–0299. factors currently in effect on May 21,
20 .......................................... 395.0 SUPPLEMENTARY INFORMATION: Several 2014, at 79 FR 29222 and on April 3,
21 .......................................... 392.3 provisions of the Federal Employees’ 2015, OPM published a notice to revise
22 .......................................... 389.6 Retirement System (FERS) require the normal cost percentage under the
23 .......................................... 386.8 reduction of annuities on an actuarial Federal Employees’ Retirement System
24 .......................................... 384.0 basis. Under each of these provisions, (FERS) Act of 1986, Public Law 99–335,
25 .......................................... 381.1 OPM is required to issue regulations on based on changed demographic
26 .......................................... 378.2 the method of determining the assumptions adopted by the Board of
27 .......................................... 375.2 reduction to ensure that the present Actuaries of the Civil Service
28 .......................................... 372.1 value of the reduced annuity plus a Retirement System. Under 5 U.S.C.
29 .......................................... 369.0 lump-sum equals, to the extent 8461(i), those changes require
30 .......................................... 365.8 practicable, the present value of the corresponding changes in the present
31 .......................................... 362.5 unreduced benefit. The regulations for value factors used to produce actuarially
32 .......................................... 359.2 each of these benefits provide that OPM equivalent benefits when required by
33 .......................................... 355.8 will publish a notice in the Federal the FERS Act. The revised factors will
asabaliauskas on DSK5VPTVN1PROD with NOTICES

34 .......................................... 352.4 Register whenever it changes the factors become effective on October 1, 2015, to
35 .......................................... 348.8 used to compute the present values of correspond with the changes in FERS
36 .......................................... 345.2 these benefits. normal cost percentages. For alternative
37 .......................................... 341.5 Section 842.706(a) of title 5, Code of forms of annuity, the new factors will
38 .......................................... 337.7 Federal Regulations, prescribes the apply to annuities that commence on or
39 .......................................... 333.9 method for computing the reduction in after October 1, 2015. See 5 CFR
the beginning rate of annuity payable to 842.706. For survivor election deposits,
a retiree who elects an alternative form the new factors will apply to survivor

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18266 Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Notices

reductions that commence on or after TABLE II.A—FERS PRESENT VALUE TABLE III—FERS PRESENT VALUE
October 1, 2015. See 5 CFR 842.615(b). FACTORS FOR AGES 40 THROUGH 61 FACTORS FOR AGES AT CALCULA-
For obtaining credit for service with [Applicable to annuity payable when annuity is TION BELOW 40
certain nonappropriated fund not increased by cost-of-living adjustments [Applicable to annuity payable following an
instrumentalities, the new factors will before age 62 following an election under 5 election under section 1043 of Public Law
apply to cases in which the date of U.S.C. 8416(b), 8416(c), 8417(b), 8420a, 104–106 or under section 1132 of Public
computation under 5 CFR 847.603 or under section 1043 of Public Law 104–106, Law 107–107]
or under section 1132 of Public Law 107–
847.809 is on or after October 1, 2015. 107]
See 5 CFR 847.602(c), 847.603, and Present
value of
847.809. Present Age at calculation a monthly
Age
OPM is, therefore, revising the tables value factor annuity
of present value factors to read as 40 .......................................... 216.8 17 .......................................... 348.5
follows: 41 .......................................... 216.5 18 .......................................... 346.8
42 .......................................... 216.1 19 .......................................... 345.1
TABLE I—FERS PRESENT VALUE 43 .......................................... 215.6 20 .......................................... 343.3
FACTORS FOR AGES 62 AND OLDER 44 .......................................... 215.1 21 .......................................... 341.4
[Applicable to annuity payable following an 45 .......................................... 214.6 22 .......................................... 339.5
election under 5 U.S.C. 8416(b), 8416(c), 46 .......................................... 214.0 23 .......................................... 337.6
8417(b), 8420a, under section 1043 of Pub- 24 .......................................... 335.6
47 .......................................... 213.4
lic Law 104–106, or under section 1132 of 25 .......................................... 333.6
Public Law 107–107] 48 .......................................... 212.8 26 .......................................... 331.5
49 .......................................... 212.2 27 .......................................... 329.4
Present value 50 .......................................... 211.7 28 .......................................... 327.2
Age 51 .......................................... 211.1
factor 29 .......................................... 324.9
52 .......................................... 210.5 30 .......................................... 322.6
62 .......................................... 200.8 53 .......................................... 209.8 31 .......................................... 320.2
63 .......................................... 195.0 54 .......................................... 209.0 32 .......................................... 317.8
64 .......................................... 189.1 55 .......................................... 208.2 33 .......................................... 315.3
65 .......................................... 183.2 56 .......................................... 207.2 34 .......................................... 312.7
66 .......................................... 177.2 57 .......................................... 206.2 35 .......................................... 310.1
67 .......................................... 171.2 36 .......................................... 307.4
58 .......................................... 205.1
68 .......................................... 165.1 37 .......................................... 304.6
59 .......................................... 204.1
69 .......................................... 158.9 38 .......................................... 301.7
70 .......................................... 152.8 60 .......................................... 203.0
39 .......................................... 298.8
71 .......................................... 146.6 61 .......................................... 201.9
72 .......................................... 140.4
73 .......................................... 134.2 U.S. Office of Personnel Management.
74 .......................................... 128.0 TABLE II.B—FERS PRESENT VALUE Katherine Archuleta,
75 .......................................... 121.9 FACTORS FOR AGES 40 THROUGH 61 Director.
76 .......................................... 116.0 [Applicable to annuity payable when annuity is [FR Doc. 2015–07694 Filed 4–2–15; 8:45 am]
77 .......................................... 110.1 increased by cost-of-living adjustments be- BILLING CODE 6325–38–P
78 .......................................... 104.3 fore age 62 following an election under 5
79 .......................................... 98.7 U.S.C. 8416(b), 8416(c), 8417(b), or 8420a,
80 .......................................... 93.2 under section 1043 of Public Law 104–106,
81 .......................................... 87.9 or under section 1132 of Public Law 107– OFFICE OF PERSONNEL
107] MANAGEMENT
82 .......................................... 82.7
83 .......................................... 77.8
84 .......................................... 72.9 Age Present Submission for Review: Report of
85 .......................................... 68.3 value factor Withholdings and Contributions for
86 .......................................... 63.9 Health Benefits, Life Insurance and
40 .......................................... 295.8
87 .......................................... 59.6 Retirement (Standard Form 2812);
88 .......................................... 55.5 41 .......................................... 292.7
Report of Withholdings and
89 .......................................... 51.6 42 .......................................... 289.5
43 .......................................... 286.2
Contributions for Health Benefits By
90 .......................................... 48.0 Enrollment Code (Standard Form
91 .......................................... 44.7 44 .......................................... 282.7
92 .......................................... 41.6 45 .......................................... 279.1 2812–A); Supplemental Semiannual
93 .......................................... 38.7 46 .......................................... 275.4 Headcount Report (OPM Form 1523),
94 .......................................... 36.1 47 .......................................... 271.6 3206–0262
95 .......................................... 33.8 48 .......................................... 267.7 AGENCY: Office of Personnel
96 .......................................... 31.7 49 .......................................... 263.8
97 .......................................... 29.9
Management.
50 .......................................... 259.9
98 .......................................... 28.1 ACTION: 30-day notice and request for
51 .......................................... 255.8
99 .......................................... 26.4 52 .......................................... 251.7
comments.
100 ........................................ 24.9 53 .......................................... 247.3 SUMMARY: Trust Funds Group of the
asabaliauskas on DSK5VPTVN1PROD with NOTICES

101 ........................................ 23.7
54 .......................................... 242.8 Office of Chief Financial Officer, Office
102 ........................................ 22.5
55 .......................................... 238.0 of Personnel Management (OPM) offers
103 ........................................ 21.2
104 ........................................ 20.2 56 .......................................... 233.0 the general public and other Federal
105 ........................................ 19.4 57 .......................................... 228.0
agencies the opportunity to comment on
106 ........................................ 18.4 58 .......................................... 222.8
changes to the existing information
107 ........................................ 16.5 59 .......................................... 217.4
60 .......................................... 212.0
collection request (ICR) 3206–0262,
108 ........................................ 12.9
109 ........................................ 6.4 61 .......................................... 206.4
Standard Form 2812, Standard Form
2812–A, and OPM Form 1523. As

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Document Created: 2015-12-18 15:28:55
Document Modified: 2015-12-18 15:28:55
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice.
Dates		The revised present value factors apply to survivor reductions or employee annuities that commence on or after October 1, 2015.
Contact		Karla Yeakle, (202) 606-0299.
FR Citation		80 FR 18265