81 FR 26997 - Federal Employees' Group Life Insurance Program: Options B and C
OFFICE OF PERSONNEL MANAGEMENT Federal Register Volume 81, Issue 87 (May 5, 2016)
Federal Register Volume 81, Issue 87 (May 5, 2016)
| Page Range | 26997-26998 | |
| FR Document | 2016-10539 |
[Federal Register Volume 81, Number 87 (Thursday, May 5, 2016)] [Rules and Regulations] [Pages 26997-26998] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-10539] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. ======================================================================== Federal Register / Vol. 81, No. 87 / Thursday, May 5, 2016 / Rules and Regulations [[Page 26997]] OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 870 RIN 3206-AM96 Federal Employees' Group Life Insurance Program: Options B and C AGENCY: U.S. Office of Personnel Management. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The U.S. Office of Personnel Management (OPM) is issuing a final rule to amend the Federal Employees' Group Life Insurance (FEGLI) regulation to provide a second reduction election opportunity for annuitants and compensationers enrolled in FEGLI Option B and Option C. This new procedure replaces the procedure by which FEGLI enrollees elect the allowable multiples of coverage they wish to continue during retirement or while receiving compensation. DATES: Effective May 5, 2016. ADDRESSES: Send written comments to Ronald Brown, Planning and Policy Analysis, U.S. Office of Personnel Management, Room 4312, 1900 E Street NW., Washington, DC 20415. You may also submit comments using the Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. FOR FURTHER INFORMATION CONTACT: Ronald Brown, Policy Analyst, (202) 606-0004, or by email to [email protected]. SUPPLEMENTARY INFORMATION: On October 30, 1998, Public Law 105-311,112 Stat. 2950, was signed into law. This law, the Federal Employees Life Insurance Improvement Act, changed many parts of the FEGLI Program. Before the enactment of Public Law 105-311, Option B and C coverage began to reduce for annuitants when they reached age 65. Both coverages reduced by 2% per month until there was no coverage left. This reduction was automatic, and annuitants had no choice. Public Law 105-311 allows annuitants and persons becoming insured as compensationers to make an election at retirement as to whether they want their Option B and Option C coverage to reduce. Previous FEGLI regulations provided that shortly before an individual's 65th birthday, he/she would receive a reminder notice, showing what reduction the annuitant/compensationer elected at the time of retirement and what the premiums would be for coverage beyond age 65. The individual then had an opportunity to change his/her reduction election; including choosing to have some multiples of Optional insurance reduce and others not reduce. For persons who were already over age 65 at the time of retirement or becoming insured as a compensationer, the reminder notice was sent as soon as the retirement processing was completed. On October 1, 2010, OPM published FEGLI final regulations (75 FR 60573) with miscellaneous changes, clarifications, and corrections, including a change made to 5 CFR 870.705(b) and 870.705(d) ending the reduction election opportunity at age 65. OPM published a FEGLI proposed rule in the Federal Register, 78 FR 77365, December 23, 2013, proposing to reverse the changes to 5 CFR 870.705(b) and 870.705(d) authorized on October 1, 2010, and inviting public comments. The December 23, 2013 rule proposed to restore the second election opportunity for annuitants and compensationers who attain age 65. OPM received no comments and will implement the rule as proposed. Changes Public Law 105-311, the Federal Employees Life Insurance Improvement Act, 112 Stat. 2950, enacted October 30, 1998, amended chapter 87 of title 5, U.S. Code, to allow retiring employees to elect either No Reduction or Full Reduction for their Option B and Option C coverage. This election was to be made at the time of retirement, the same as the election for Basic insurance. Implementing this provision required programming changes to the electronic records system for annuitants to allow for ``mixed'' elections, i.e., electing reductions for some coverage, but not for other coverage. While these system changes were being made, annuitants were required to elect either No Reduction or Full Reduction for all Option B and Option C multiples at the time of retirement. Then, shortly before the annuitant's 65th birthday, the insured was given a second opportunity to make a reduction election, this time being allowed to choose No Reduction for some multiples and Full Reduction for others. While the law states that the reduction election must be made at the time of retirement, enrollees affected by this provision have expressed interest in having a second reduction election opportunity. Thus, we are restoring the opportunity for a second election at age 65. This change can be found in Sec. 870.705(b) and Sec. 870.705(d). Regulatory Impact Analysis OPM has examined the impact of this rule as required by Executive Order 12866 and Executive Order 13563, which directs agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public, health, and safety effects, distributive impacts, and equity). A regulatory impact analysis must be prepared for major rules with economically significant effects of $100 million or more in any one year. This rule is not considered a major rule because there will be a minimal impact on costs to Federal agencies. Regulatory Flexibility Act I certify that this regulation will not have a significant economic impact on a substantial number of small entities because the regulation only affects life insurance benefits of Federal employees and retirees. Executive Order 12866, Regulatory Review This rule has been reviewed by the Office of Management and Budget in accordance with Executive Order 12866. Federalism We have examined this rule in accordance with Executive Order 13132, Federalism, and have determined that this rule will not have any negative impact on the rights, roles and [[Page 26998]] responsibilities of State, local, or tribal governments. List of Subjects in 5 CFR Part 870 Administrative practice and procedure, Government employees, Life insurance, Retirement. U.S. Office of Personnel Management. Beth F. Cobert, Acting Director. Accordingly, OPM is amending 5 CFR part 870 as follows: PART 870--FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM 0 1. The authority citation for 5 CFR part 870 is revised to read as follows: Authority: 5 U.S.C. 8716; Subpart J also issued under section 599C of Pub. L. 101-513, 104 Stat. 2064, as amended; Sec. 870.302(a)(3)(ii) also issued under section 153 of Pub. L. 104-134, 110 Stat. 1321; Sec. 870.302(a)(3) also issued under sections 11202(f), 11232(e), and 11246(b) and (c) of Pub. L. 105-33, 111 Stat. 251, and section 7(e) of Pub. L. 105-274, 112 Stat. 2419; Sec. 870.302(a)(3) also issued under section 145 of Pub. L. 106-522, 114 Stat. 2472; Secs. 870.302(b)(8), 870.601(a), and 870.602(b) also issued under Pub. L. 110-279, 122 Stat. 2604; Subpart E also issued under 5 U.S.C. 8702(c); Sec. 870.601(d)(3) also issued under 5 U.S.C. 8706(d); Sec. 870.703(e)(1) also issued under section 502 of Pub. L. 110-177, 121 Stat. 2542; Sec. 870.705 also issued under 5 U.S.C. 8714b(c) and 8714c(c); Public Law 104-106, 110 Stat. 521. Subpart G--Annuitants and Compensationers 0 2. Amend Sec. 870.705 by revising paragraph (b)(3)(ii), adding paragraph (b)(4), and revising paragraph (d)(1)(i) to read as follows: Sec. 870.705 Amount and election of Option B and Option C. * * * * * (b) * * * (3) * * * (ii) Except as provided in paragraph (b)(4) of this section, after reaching age 65, an annuitant or compensationer cannot change from Full Reduction to No Reduction. (4)(i) Shortly before an annuitant or compensationer's 65th birthday, an annuitant's retirement system will send a reminder about the post-age-65 reduction election he/she made and will offer the individual a chance to change the initial election made at the time of retirement. (ii) If the individual is already 65 or older at the time of retirement or becoming insured as a compensationer, the retirement system will process the retirement using the current Continuation of Life Insurance Coverage (SF 2818) on file, send the reminder, and give the opportunity to change the election as soon as the retirement processing or compensation transfer is complete. (iii) If the individual assigned his/her insurance as provided in subpart I of this part, and if the employee elected No Reduction for Option B coverage at the time of retirement or becoming insured as a compensationer, the retirement system will send the reminder notice for Option B coverage to the assignee. (iv) An annuitant or compensationer who wishes to change his/her reduction election must return the notice by the end of the month following the month in which the individual turns 65, or if already over age 65, by the end of the 4th month after the date of the letter. An annuitant or compensationer who does not return the election notice will keep his/her initial election or the default election, as applicable. * * * * * (d)(1) * * * (i) Annuitants and compensationers who were under age 65 were notified of the option to elect No Reduction. The retirement system will send these individuals an actual election notice before their 65th birthday, as provided in paragraph (b)(4) of this section. * * * * * [FR Doc. 2016-10539 Filed 5-4-16; 8:45 am] BILLING CODE 6325-63-P
![26998 Federal Register / Vol. 81, No. 87 / Thursday, May 5, 2016 / Rules and Regulations
responsibilities of State, local, or tribal Continuation of Life Insurance Coverage ADDRESSES: See the companion
governments. (SF 2818) on file, send the reminder, document titled ‘‘Notice of Opportunity
and give the opportunity to change the to Submit a Petition to Amend the Rule
List of Subjects in 5 CFR Part 870
election as soon as the retirement Establishing Procedures for Requests for
Administrative practice and processing or compensation transfer is Correction of Errors in Rules’’ published
procedure, Government employees, Life complete. elsewhere in this issue of the Federal
insurance, Retirement. (iii) If the individual assigned his/her Register for addresses to submit a
U.S. Office of Personnel Management. insurance as provided in subpart I of petition to amend, or a comment on a
Beth F. Cobert, this part, and if the employee elected No petition to amend, this rule.
Acting Director.
Reduction for Option B coverage at the FOR FURTHER INFORMATION CONTACT: Mr.
time of retirement or becoming insured John Cymbalsky, U.S. Department of
Accordingly, OPM is amending 5 CFR as a compensationer, the retirement Energy, Office of Energy Efficiency and
part 870 as follows: system will send the reminder notice for Renewable Energy, Building
Option B coverage to the assignee. Technologies Program, EE–5B, 1000
PART 870—FEDERAL EMPLOYEES’ (iv) An annuitant or compensationer Independence Avenue SW.,
GROUP LIFE INSURANCE PROGRAM who wishes to change his/her reduction Washington, DC 20585–0121.
election must return the notice by the Telephone: (202) 287–1692 or
■ 1. The authority citation for 5 CFR
end of the month following the month John.Cymbalsky@ee.doe.gov.
part 870 is revised to read as follows:
in which the individual turns 65, or if SUPPLEMENTARY INFORMATION:
Authority: 5 U.S.C. 8716; Subpart J also already over age 65, by the end of the
issued under section 599C of Pub. L. 101– 4th month after the date of the letter. An Table of Contents
513, 104 Stat. 2064, as amended; Sec. annuitant or compensationer who does I. Authority and Background
870.302(a)(3)(ii) also issued under section II. Summary of the Rule
153 of Pub. L. 104–134, 110 Stat. 1321; Sec.
not return the election notice will keep
his/her initial election or the default III. Paragraph-by-Paragraph Analysis
870.302(a)(3) also issued under sections IV. Procedural Issues and Regulatory Review
11202(f), 11232(e), and 11246(b) and (c) of election, as applicable.
Pub. L. 105–33, 111 Stat. 251, and section * * * * * I. Authority and Background
7(e) of Pub. L. 105–274, 112 Stat. 2419; Sec. (d)(1) * * * Title III of the Energy Policy and
870.302(a)(3) also issued under section 145 of (i) Annuitants and compensationers
Pub. L. 106–522, 114 Stat. 2472; Secs.
Conservation Act of 1975, as amended
who were under age 65 were notified of (‘‘EPCA’’ or, in context, ‘‘the Act’’)
870.302(b)(8), 870.601(a), and 870.602(b) also
issued under Pub. L. 110–279, 122 Stat. 2604;
the option to elect No Reduction. The establishes a program designed to
Subpart E also issued under 5 U.S.C. 8702(c); retirement system will send these improve the energy efficiency of
Sec. 870.601(d)(3) also issued under 5 U.S.C. individuals an actual election notice consumer products (other than
8706(d); Sec. 870.703(e)(1) also issued under before their 65th birthday, as provided automobiles) and of certain industrial
section 502 of Pub. L. 110–177, 121 Stat. in paragraph (b)(4) of this section. equipment. Pursuant to EPCA, the
2542; Sec. 870.705 also issued under 5 U.S.C. * * * * * Department sets energy conservation
8714b(c) and 8714c(c); Public Law 104–106, [FR Doc. 2016–10539 Filed 5–4–16; 8:45 am] standards and other requirements for
110 Stat. 521. covered products and equipment;
BILLING CODE 6325–63–P
Subpart G—Annuitants and prescribes protocols to test products and
Compensationers equipment against the standards;
requires labeling of covered products
DEPARTMENT OF ENERGY and equipment; and establishes
■ 2. Amend § 870.705 by revising
paragraph (b)(3)(ii), adding paragraph 10 CFR Parts 430 and 431 procedural mechanisms such as
(b)(4), and revising paragraph (d)(1)(i) to certification programs and enforcement
read as follows: RIN 1904–AD63 procedures. See 42 U.S.C. 6291, et seq.
This rule establishes error-correction
§ 870.705 Amount and election of Option B Energy Conservation Program: procedures that DOE will use in the
and Option C. Establishment of Procedures for course of prescribing energy
* * * * * Requests for Correction of Errors in conservation standards under EPCA. It
(b) * * * Rules also interprets several provisions of
(3) * * * EPCA that may be relevant to the
(ii) Except as provided in paragraph AGENCY: Office of Energy Efficiency and functioning of those procedures.
(b)(4) of this section, after reaching age Renewable Energy, Department of One of EPCA’s many purposes is to
65, an annuitant or compensationer Energy. improve energy efficiency for a variety
cannot change from Full Reduction to ACTION: Final rule. of major consumer products and
No Reduction. industrial equipment. To achieve this
(4)(i) Shortly before an annuitant or SUMMARY: The U.S. Department of purpose, the Act directs the Department
compensationer’s 65th birthday, an Energy (‘‘DOE’’ or the ‘‘Department’’) is both to undertake certain rulemakings to
annuitant’s retirement system will send establishing a procedure through which establish or revise energy conservation
a reminder about the post-age-65 an interested party can, within a 30-day standards and to consider amending
reduction election he/she made and will period after DOE posts a rule such standards on a periodic basis—for
offer the individual a chance to change establishing or amending an energy many products within six years of
the initial election made at the time of conservation standard, identify a issuance of a prior final rule. 42 U.S.C.
ehiers on DSK5VPTVN1PROD with RULES
retirement. possible error in such a rule and request 6295(m)(1). The Act contemplates that
(ii) If the individual is already 65 or that DOE correct the error before the such a rulemaking or periodic review
older at the time of retirement or rule is published in the Federal will result in a new or amended
becoming insured as a compensationer, Register. standard if the Department concludes
the retirement system will process the DATES: The effective date of this rule is that such standard would be
retirement using the current June 6, 2016. technologically feasible and
VerDate Sep<11>2014 13:35 May 04, 2016 Jkt 238001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\05MYR1.SGM 05MYR1](https://thefederalregister.org/doc/81_FR_27084/page/2.svg)
Document Created: 2016-05-05 01:15:30
Document Modified: 2016-05-05 01:15:30
| 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 | Rules and Regulations | |
| Action | Final rule. | |
| Dates | Effective May 5, 2016. | |
| Contact | Ronald Brown, Policy Analyst, (202) 606-0004, or by email to [email protected] | |
| FR Citation | 81 FR 26997 | |
| RIN Number | 3206-AM96 | |
| CFR Associated | Administrative Practice and Procedure; Government Employees; Life Insurance and Retirement |
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