81_FR_59686 81 FR 59518 - Federal Employees Health Benefits (FEHB) Program: FEHB Employee Premium Contributions for Employees in Leave Without Pay or Other Nonpay Status

81 FR 59518 - Federal Employees Health Benefits (FEHB) Program: FEHB Employee Premium Contributions for Employees in Leave Without Pay or Other Nonpay Status

OFFICE OF PERSONNEL MANAGEMENT

Federal Register Volume 81, Issue 168 (August 30, 2016)

Page Range59518-59521
FR Document2016-20565

The United States Office of Personnel Management (OPM) is issuing a proposed rule to provide flexibility to agencies regarding payment for Federal Employees Health Benefits (FEHB) coverage for employees entering leave without pay (LWOP) or any other type of nonpay status, except when nonpay is as a result of a lapse of appropriations. The regulation also affects employees who have insufficient pay to cover their premium contribution. Under current regulations, a Federal agency pays the employee's share and the Government's share of FEHB premiums if an employee in LWOP or other nonpay status elects to continue coverage while in LWOP or other nonpay status and agrees to repay the agency (referred to interchangeably as ``employing office'') for their employee share upon return to employment for up to 365 days. In other words, the agency must allow an employee to incur a debt for the employee contribution to premium. This outlay of funds may result in an agency incurring a significant amount of debt. This proposed rule would provide an agency with the flexibility to require that all of its employees in LWOP or other nonpay status, except as a result of lapse of appropriations, pay their employee share for FEHB coverage directly to the agency and keep the payments current, if those employees elect to continue FEHB enrollment. Under 5 U.S.C. 8906(e), if an employee in LWOP status chooses to continue FEHB enrollment, the employee and Government contributions shall be paid on a current basis; and, if necessary, the agency shall approve advance payment of a portion of basic pay sufficient to cover the employee contribution. The agency will then recover the amount that it advanced from the employee upon his or her return to employment. Under current regulations employees in LWOP or other nonpay status can elect to make premium payments directly to an agency and keep payments current. Alternatively, employees in these circumstances may elect not to pay premiums directly on a current basis and can incur a debt such that their employing office advances the payments to cover their premiums. The employee agrees that upon his or her return to employment, or upon pay becoming sufficient, the employing office will deduct, in addition to the current pay period's premium, the accrued unpaid premiums from the employee's salary until the debt is recovered. Under this proposed rule, an agency may choose to require that an employee pay premiums directly to the agency on a current basis if the agency makes a determination that all employees in non-pay or insufficient pay status must pay premiums currently. The proposed rule also specifies the procedures for disenrollment for nonpayment of premiums.

Federal Register, Volume 81 Issue 168 (Tuesday, August 30, 2016)
[Federal Register Volume 81, Number 168 (Tuesday, August 30, 2016)]
[Proposed Rules]
[Pages 59518-59521]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-20565]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 81, No. 168 / Tuesday, August 30, 2016 / 
Proposed Rules

[[Page 59518]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 890

RIN 3206-AN33


Federal Employees Health Benefits (FEHB) Program: FEHB Employee 
Premium Contributions for Employees in Leave Without Pay or Other 
Nonpay Status

AGENCY: U.S. Office of Personnel Management.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The United States Office of Personnel Management (OPM) is 
issuing a proposed rule to provide flexibility to agencies regarding 
payment for Federal Employees Health Benefits (FEHB) coverage for 
employees entering leave without pay (LWOP) or any other type of nonpay 
status, except when nonpay is as a result of a lapse of appropriations. 
The regulation also affects employees who have insufficient pay to 
cover their premium contribution. Under current regulations, a Federal 
agency pays the employee's share and the Government's share of FEHB 
premiums if an employee in LWOP or other nonpay status elects to 
continue coverage while in LWOP or other nonpay status and agrees to 
repay the agency (referred to interchangeably as ``employing office'') 
for their employee share upon return to employment for up to 365 days. 
In other words, the agency must allow an employee to incur a debt for 
the employee contribution to premium. This outlay of funds may result 
in an agency incurring a significant amount of debt. This proposed rule 
would provide an agency with the flexibility to require that all of its 
employees in LWOP or other nonpay status, except as a result of lapse 
of appropriations, pay their employee share for FEHB coverage directly 
to the agency and keep the payments current, if those employees elect 
to continue FEHB enrollment. Under 5 U.S.C. 8906(e), if an employee in 
LWOP status chooses to continue FEHB enrollment, the employee and 
Government contributions shall be paid on a current basis; and, if 
necessary, the agency shall approve advance payment of a portion of 
basic pay sufficient to cover the employee contribution. The agency 
will then recover the amount that it advanced from the employee upon 
his or her return to employment.
    Under current regulations employees in LWOP or other nonpay status 
can elect to make premium payments directly to an agency and keep 
payments current. Alternatively, employees in these circumstances may 
elect not to pay premiums directly on a current basis and can incur a 
debt such that their employing office advances the payments to cover 
their premiums. The employee agrees that upon his or her return to 
employment, or upon pay becoming sufficient, the employing office will 
deduct, in addition to the current pay period's premium, the accrued 
unpaid premiums from the employee's salary until the debt is recovered. 
Under this proposed rule, an agency may choose to require that an 
employee pay premiums directly to the agency on a current basis if the 
agency makes a determination that all employees in non-pay or 
insufficient pay status must pay premiums currently. The proposed rule 
also specifies the procedures for disenrollment for nonpayment of 
premiums.

DATES: Comments are due on or before October 31, 2016.

ADDRESSES: Send written comments to Julia Elam, Planning and Policy 
Analysis, U.S. Office of Personnel Management, Room 4316, 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: Julia Elam at (202) 606-0004.

SUPPLEMENTARY INFORMATION: OPM is revising the options and procedures 
that employing offices may use when an employee elects to continue FEHB 
coverage in leave without pay (LWOP) or other nonpay status, except as 
a result of lapse of appropriations, when the employee's pay is 
insufficient to cover premiums. Under 5 U.S.C. 8906(e)(1)(a), an 
employee enrolled in a health benefits plan who is placed in a leave 
without pay or other nonpay status may have his coverage and the 
coverage of members of his family continued under the plan for not to 
exceed one year. According to the statute, the agency is responsible 
for ensuring the employee and Government contributions are paid to the 
Employees Health Benefits Fund on a current basis; and if necessary, 
the head of the agency may approve advance payment of employee 
premiums, which the agency can later recover from the employee. The 
employee may alternatively elect to terminate FEHB enrollment. This 
proposed rule does not affect agencies' advancing payment of health 
insurance premiums for employees with the following categories of 
qualifying LWOP, which includes the following: Family and Medical Leave 
Act, performance of duty in the uniformed services under the Uniformed 
Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. 4301 
et seq., receiving medical treatment under Executive Order 5396 (Jul. 7 
1930), and periods during which workers compensation is received under 
the Federal Employees Compensation Act, 5 U.S.C. chapter 81. We solicit 
comments on the exemption of categories of employees in LWOP from this 
proposed rule.
    Under current regulations at 5 CFR 890.502(b), an employing office 
must inform the employee about available health benefits choices as 
soon as it becomes aware that an employee's premium payments cannot be 
made because he or she will be, or already is in a LWOP or other nonpay 
status, or the employee's pay is insufficient to cover premium. The 
employing office must give the employee written notice of the options 
to terminate coverage or continue coverage with either the direct pay 
or the advance payment option. The employee then must elect in writing 
to either continue health benefits coverage or terminate it, while in 
LWOP or other nonpay status or pay is insufficient to cover premiums. 
If the employee's coverage is continued, the employee may pay the 
employee share of the premium directly to the agency, or the employee 
may opt for the agency to advance payment of the employee portion of 
the premium and agree to repay the premiums to the agency upon 
returning to employment or upon pay

[[Page 59519]]

becoming sufficient. Accordingly, there is the possibility that the 
employee will incur a debt to the agency if the employee chooses to 
continue coverage and receive an advanced payment and does not return 
to work or is, for some reason, unable to repay the premium amount. 
Under Sec.  890.502(b)(2)(ii), the employing office can pay the 
employee's contributions and recover the amount of accrued unpaid 
premiums as a debt to the Federal Government upon the employee's return 
to employment or when the employee's pay becomes sufficient.
    Under this proposed regulation, each agency would make the 
determination of whether its employees in LWOP or other nonpay status 
would be required to pay the employee share of premiums directly to the 
agency on a current basis, or whether it is necessary, within the 
meaning of 5 U.S.C. 8906(e)(1)(B), for the agency to approve advance 
payment of the employee share of the premium. The agency would make the 
determination for all its affected employees at least once every 2 
years. OPM is proposing this change to complement the FEHB Modification 
of Eligibility final regulation (79 FR 62325, published on October 17, 
2014) which allows generally for certain temporary, intermittent and 
seasonal employees to enroll in the FEHB Program if they are expected 
to work at least 130 hours per month for at least 90 days. OPM 
recognizes that the recent expansion of eligibility for FEHB coverage 
may impact an agency's budget due to the required FEHB Government 
health benefit contributions for newly eligible employees who elect to 
participate in FEHB coverage and go into LWOP or other nonpay status 
based on the intermittent nature of the work performed.
    OPM proposes for Sec.  890.502(b) to establish that an agency have 
the discretion to determine whether it is necessary for employees in 
LWOP or other nonpay status to be advanced a portion of basic pay 
sufficient to pay current employee contribution to premium, or whether 
the employees must be required to pay the employee contribution of the 
FEHB premium currently to the agency. The determination made by the 
agency must apply to all employees in non-pay or insufficient pay 
status, and it cannot be made on a case-by-case basis. When assessing 
whether it is necessary to pay advanced employee contributions for 
premiums, the regulation provides that an agency shall balance the 
needs of the agency, including available financial resources and ease 
of operation, with those of its employees, including typical job series 
and pay grades and access to direct payment methods. Agencies should 
also consider that if they do advance employee contributions for 
premiums, these employees will incur a debt which may not occur if the 
employee had an option to pay premiums directly to the agency. We are 
seeking comment on these and other factors agencies should utilize to 
make this determination. The agency may reassess its determination 
every one or two years and provide notification to all employees. An 
agency may default to its original determination and is not required to 
make a new determination at the time of reassessment. If an agency 
chooses to require its employees in these circumstances to make direct 
premium contributions on a current basis, it must provide written 
notice to the affected employees. This section also explains that an 
agency may choose the other option to exercise its discretion to 
approve advance payment of the employee portion of the premium while 
its employees are in LWOP or other nonpay status. This would be a 
change to current regulations at Sec.  890.502(b)(2)(ii), which 
presently provides that an employee may choose this option if he or she 
does not does not wish to pay the premium directly to the agency and 
keep the payments current.
    OPM proposes for Sec.  890.502(c)(2) to establish procedures for 
terminating enrollment for employees in LWOP or nonpay status that fail 
to directly pay premiums currently. The regulation also proposes notice 
requirements for the employee to receive regarding termination of 
enrollment.
    Under this proposed regulation, an employee that is in LWOP or 
other nonpay status or has insufficient pay to cover his or her share 
of FEHB premiums will have his or her enrollment cancelled if he or she 
has signed an agreement to directly pay premiums on a current basis and 
fails to make these payments currently, or enrollment terminated if the 
employee does not return the written notice. The proposed regulation 
gives an employee the opportunity to seek reinstatement from the agency 
if he or she can show they were prevented from paying premiums, or from 
returning the written notice, by circumstances beyond their control. 
The employee must describe the circumstances that prevented him or her 
from making a payment or returning the notice within 31 days after 
receiving notice of disenrollment. Under this proposal, termination of 
an enrollment for failure to return a written notice entitles the 
employee to a 31-day temporary extension of coverage and opportunity to 
convert to an individual policy, while failure to pay premiums after 
electing to continue FEHB enrollment is considered a cancellation. OPM 
is seeking comments on the implementation of this proposed rule for 
employees currently on LWOP or other nonpay status in which pay is 
insufficient to cover the employee share of FEHB premiums. OPM proposes 
making the rule effective for employees who enter into LWOP or other 
nonpay status after the date of the rule and not affecting employees 
currently on LWOP or other nonpay status.

Regulatory Impact Analysis

    OPM has examined the impact of this proposed 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 health insurance benefits of Federal employees and 
annuitants.

Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Orders 13563 and 12866.

Federalism

    We have examined this rule in accordance with Executive Order 
13132, Federalism, and have determined that this rule restates existing 
rights, roles and responsibilities of State, local, or tribal 
governments.

List of Subjects on 5 CFR Part 890

    Administrative practice and procedure, Government employees, Health 
insurance.

U.S. Office of Personnel Management.
Beth F. Cobert,
Acting Director.

    For the reasons set forth in the preamble, the Office of Personnel 
Management proposes to amend 5 CFR part 890 as follows:

[[Page 59520]]

PART 890--FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM

0
1. The authority citation for part 890 continues to read as follows:

    Authority:  5 U.S.C. 8913; Sec. 890.301 also issued under sec. 
311 of Pub. L. 111-03, 123 Stat. 64; Sec. 890.111 also issued under 
section 1622(b) of Pub. L. 104-106, 110 Stat. 521; Sec. 890.112 also 
issued under section 1 of Pub. L. 110-279, 122 Stat. 2604; 5 U.S.C. 
8913; Sec. 890.803 also issued under 50 U.S.C. 403p, 22 U.S.C. 4069c 
and 4069c-1; subpart L also issued under sec. 599C of 101, 104 Stat. 
2064, as amended; Sec. 890.102 also issued under sections 
11202(f),11232(e), 11246(b) and (c) of Pub. L. 105-33, 111 Stat. 
251; and section 721 of Pub. L. 105-261, 112 Stat. 2061.

Subpart E--Contributions and Withholdings

0
2. In Sec.  890.502:
0
a. Redesignate paragraphs (b) through (f) as paragraphs (c) through 
(g).
0
b. Add new paragraph (b).
0
c. Revise newly redesignated paragraph (c).
    The addition and revision read as follows:


Sec.  890.502  Withholdings, contributions, LWOP, premiums, and direct 
premium payment.

* * * * *
    (b) Agency flexibility to require direct payment of employee 
premiums on a current basis. An agency may require all employees that 
enter leave without pay (LWOP) or other nonpay status except for as a 
result of lapse of appropriations, whose pay is insufficient to cover 
premium, pay their employee premium contributions directly to the 
agency on a current basis or; if necessary, the agency may elect to 
provide advance payment of the employee portion of premium for all 
employees in these circumstances. In determining whether it is 
necessary to pay employee contributions for premiums, an agency shall 
balance the needs of the agency, including available financial 
resources and ease of operation, with those of its employees, including 
typical job series and pay grades and access to direct payment methods. 
The agency may reassess its policy decision every one or two years and 
should provide notification to all its employees. An agency must choose 
one of these two options for all employees that enter non-pay status or 
whose pay is insufficient to cover premium, except for certain 
qualifying LWOP categories.
    (1) For purposes of this paragraph (b), qualifying LWOP categories 
are exempt from an agency determination. Regardless of the agency's 
determination under paragraph (b), an agency shall advance payment for 
employee premiums for employees utilizing the following categories of 
LWOP: For purposes of the Family and Medical Leave Act, for performance 
of duty in the uniformed services under the Uniformed Services 
Employment and Reemployment Rights Act of 1994, 38 U.S.C. 4301 et seq., 
for receiving medical treatment under Executive Order 5396 (Jul. 7 
1930), and for periods during which workers compensation is received 
under the Federal Employees Compensation Act, 5 U.S.C. chapter 81.
    (2) If an employing office requires an employee to pay the employee 
share of premium contributions directly to the agency on a current 
basis for the period during which an employee specifies he or she will 
be in LWOP or other nonpay status, the employing office must provide 
the employee written notice and an agreement that he or she will be 
required to pay premiums directly to the agency on a current basis by 
following the procedures as outlined in paragraphs (c)(2) of this 
section. The employee must sign the agreement if he or she chooses to 
continue coverage under an agency's election to require that payments 
be made directly on a current basis.
    (3) If necessary, an agency may elect to advance a portion of basic 
pay sufficient to pay current employee contributions to premium for 
employees entering LWOP or other nonpay status. If the agency so 
elects, the employing office must provide the employee written notice 
and an agreement that he or she will incur a debt to the extent of the 
advanced premiums, and will be required to repay the unpaid premiums 
from salary deduction, upon returning to pay status or upon payment 
becoming sufficient to cover premiums, until the debt is recovered in 
full, by following the procedures as outlined in paragraphs (c)(2) of 
this section.
* * * * *
    (c) Procedures when an employee enters a leave without pay (LWOP) 
or other nonpay status or pay is insufficient to cover premium. The 
employing office must tell the employee about available health benefits 
choices as soon as it becomes aware that an employee's premium payments 
cannot be made because he or she will be or is already in a leave 
without pay (LWOP) status or other type of nonpay status. (This does 
not apply when nonpay is as a result of a lapse of appropriations or 
employees have been furloughed. In these instances, the premiums will 
accumulate and be paid upon return to duty). The employing office must 
also tell the employee about the option available to them as determined 
by the agency or that the employee can elect to terminate enrollment 
when an employee's pay is not enough to cover the premiums.
    (1) The employing office must provide the employee written notice 
of the option available to them as determined by the agency and 
consequences as described in paragraphs (c) (2) (i) and (ii) of this 
section and will send a letter by first class mail if it cannot give it 
to the employee directly. If it mails the notice, it is deemed to be 
received within 5 days.
    (2) The employee must elect in writing to either continue their 
FEHB enrollment under the option that the employer has chosen or 
terminate it. (Exception: An employee who is subject to a court or 
administrative order as discussed in Sec.  890.301(g)(3) cannot elect 
to terminate his or her enrollment as long as the court or 
administrative order is still in effect and the employee has at least 
one child identified in the order who is still eligible under the FEHB 
Program, unless the employee provides documentation that he or she has 
other coverage for the child(ren).) The employee may continue 
enrollment by returning a signed form to the employing office within 31 
days after he or she receives the notice (45 days for an employee 
residing overseas). When an employee mails the signed form, its 
postmark will be used as the date the form is returned to the employing 
office. If an employee elects to continue their enrollment under the 
option that the employer has chosen, he or she must elect in writing 
the option that has been specified by the employing office for all 
employees as described in paragraph (b). The employee would agree to 
the following as specified by the employing office:
    (i) If the agency has elected to allow all employees to pay the 
premium directly to the agency and keep the payments current, the 
employee must agree to pay the premium directly, or;
    (ii) If the agency has elected to allow all employees to incur a 
debt as described in paragraph (b)(2) he or she must agree that upon 
returning to employment or upon pay becoming sufficient to cover the 
premiums, the employing office will deduct, in addition to the current 
pay period's premiums, an amount equal to the premiums for a pay period 
during which the employee was in a leave without pay (LWOP) or other 
nonpay status, or pay was not enough to cover premiums. The employing 
office will continue using this method to deduct the accrued unpaid 
premiums from salary until the debt is recovered in full.

[[Page 59521]]

The employee must also agree that if he or she does not return to work 
or the employing office cannot recover the debt in full from salary, 
the employing office may recover the debt from whatever other sources 
it normally has available for recovery of a debt to the Federal 
Government.
    (iii) If an employee elects to terminate enrollment, the effective 
date of the termination is retroactive to the end of the last pay 
period in which the premium was withheld from pay.
    (3) If the employee does not return the signed form within the time 
period described in paragraph (c)(2) of this section, the employing 
office will terminate the enrollment and notify the employee in writing 
of the termination.
    (4) If an employee has not elected to terminate enrollment and is 
prevented by circumstances from returning a signed form indicating the 
employee elects to continue their enrollment under the option that the 
employer has chosen, the employee may request reinstatement.
    (i) If the employee is prevented by circumstances beyond his or her 
control from returning a signed form to the employing office within the 
time period described in paragraph (c)(2) of this section, he or she 
may write to the employing office and request reinstatement of the 
enrollment. The employee must describe the circumstances that prevented 
him or her from returning the form. The request for reinstatement must 
be made within 30 calendar days from the date the employing office 
gives the employee notice of the termination. The employing office will 
determine if the employee is eligible for reinstatement of coverage. 
When the determination is affirmative, the employing office will 
reinstate the enrollment of the employee retroactive to the date of 
termination. If the determination is negative, the employee may request 
a review of the decision from the employing office (see Sec.  890.104).
    (ii) If the employee is subject to a court or administrative order 
as discussed in Sec.  890.301(g)(3), the coverage cannot terminate 
unless the employee has provided documentation to the employing office 
that he or she has other coverage for the child or children, and the 
employing office has determined the coverage is appropriate, as 
discussed in 5 CFR 890.301(g)(3). If the employee does not return the 
signed form, the coverage will continue and the employee will incur a 
debt to the Federal Government, and the employing office will recover 
the amount of accrued unpaid premium as a debt under as discussed in 
paragraph(c)(2)(ii) of this section.
    (5) Terminations of enrollment under paragraphs (c)(2) and (3) of 
this section are retroactive to the last day of the last pay period in 
which the premium was withheld from pay. The employee and covered 
family members, if any, are entitled to the 31-day temporary extension 
of coverage and opportunity to convert to a non-group policy under 
Sec.  890.401. An employee whose coverage is terminated under this 
paragraph may re-enroll upon his or her return to duty in pay status in 
a position in which the employee is eligible for coverage under this 
part.
    (6) If an employee signs and returns a form to the employing office 
stating that he or she will make premium payments directly to the 
agency and keep the payments current in accordance with paragraph 
(c)(2)(i) but fails to pay currently, as soon as it becomes aware of 
the nonpayment of premium, the employing office shall notify the 
employee that he or she has 31 days to make payments current or she or 
he will have coverage terminated retroactively to the day that follows 
the last day of the last pay period for which a current employee 
contribution was received.
    (i) If the employee does not make a payment within the 31 days of 
the notification, the employing office must terminate the employee's 
enrollment retroactively to the day that follows the last day of the 
last pay period for which a current employee contribution was received.
    (ii) Termination of an enrollment for failure to pay premiums after 
the employee had elected to continue coverage and to pay premiums 
currently under (c)(2)(i) and (c)(6), is considered a cancellation as 
described in Sec.  890.401(a)(2) and the employee is not entitled to a 
31-day temporary extension of coverage or opportunity to convert to an 
individual policy.
    (iii) If an employee that has enrollment terminated under this part 
was prevented by circumstances beyond his or her control from making 
payment within 31 days after receipt of the notice of termination, he 
or she may request reinstatement of coverage by writing to the 
employing office. Such a request must be filed within 30 calendar days 
from the date of termination and must be accompanied by verification 
that the employee was prevented by circumstances beyond his or her 
control from paying within the time limit. The verification must 
describe the circumstances that prevented him or her from making a 
payment within 31 days after receipt of the notice of termination. The 
employing office will determine if the employee is eligible for 
reinstatement of coverage; and, when the determination is affirmative, 
notify the carrier of the decision. The notice must set forth the 
findings on which the decision was based. If the employing office 
determines that the employee was prevented from making payments current 
within the timeframe due to circumstances beyond his or her control, 
the employee's enrollment will be reinstated retroactive to the date of 
termination.
    (iv) An employee whose coverage is terminated under paragraph 
(c)(6) may enroll upon his or her return to duty in pay status in a 
position in which the employee is eligible for coverage.
* * * * *
[FR Doc. 2016-20565 Filed 8-29-16; 8:45 am]
 BILLING CODE 6325-63-P



                                                    59518

                                                    Proposed Rules                                                                                                Federal Register
                                                                                                                                                                  Vol. 81, No. 168

                                                                                                                                                                  Tuesday, August 30, 2016



                                                    This section of the FEDERAL REGISTER                    in LWOP status chooses to continue                    health benefits plan who is placed in a
                                                    contains notices to the public of the proposed          FEHB enrollment, the employee and                     leave without pay or other nonpay
                                                    issuance of rules and regulations. The                  Government contributions shall be paid                status may have his coverage and the
                                                    purpose of these notices is to give interested          on a current basis; and, if necessary, the            coverage of members of his family
                                                    persons an opportunity to participate in the            agency shall approve advance payment                  continued under the plan for not to
                                                    rule making prior to the adoption of the final
                                                    rules.
                                                                                                            of a portion of basic pay sufficient to               exceed one year. According to the
                                                                                                            cover the employee contribution. The                  statute, the agency is responsible for
                                                                                                            agency will then recover the amount                   ensuring the employee and Government
                                                    OFFICE OF PERSONNEL                                     that it advanced from the employee                    contributions are paid to the Employees
                                                    MANAGEMENT                                              upon his or her return to employment.                 Health Benefits Fund on a current basis;
                                                                                                              Under current regulations employees                 and if necessary, the head of the agency
                                                    5 CFR Part 890                                          in LWOP or other nonpay status can                    may approve advance payment of
                                                                                                            elect to make premium payments                        employee premiums, which the agency
                                                    RIN 3206–AN33                                           directly to an agency and keep                        can later recover from the employee.
                                                                                                            payments current. Alternatively,                      The employee may alternatively elect to
                                                    Federal Employees Health Benefits
                                                                                                            employees in these circumstances may                  terminate FEHB enrollment. This
                                                    (FEHB) Program: FEHB Employee
                                                                                                            elect not to pay premiums directly on a               proposed rule does not affect agencies’
                                                    Premium Contributions for Employees
                                                                                                            current basis and can incur a debt such               advancing payment of health insurance
                                                    in Leave Without Pay or Other Nonpay
                                                                                                            that their employing office advances the              premiums for employees with the
                                                    Status
                                                                                                            payments to cover their premiums. The                 following categories of qualifying
                                                    AGENCY: U.S. Office of Personnel                        employee agrees that upon his or her                  LWOP, which includes the following:
                                                    Management.                                             return to employment, or upon pay                     Family and Medical Leave Act,
                                                    ACTION: Notice of proposed rulemaking.                  becoming sufficient, the employing                    performance of duty in the uniformed
                                                                                                            office will deduct, in addition to the                services under the Uniformed Services
                                                    SUMMARY:    The United States Office of                 current pay period’s premium, the                     Employment and Reemployment Rights
                                                    Personnel Management (OPM) is issuing                   accrued unpaid premiums from the                      Act of 1994, 38 U.S.C. 4301 et seq.,
                                                    a proposed rule to provide flexibility to               employee’s salary until the debt is                   receiving medical treatment under
                                                    agencies regarding payment for Federal                  recovered. Under this proposed rule, an               Executive Order 5396 (Jul. 7 1930), and
                                                    Employees Health Benefits (FEHB)                        agency may choose to require that an                  periods during which workers
                                                    coverage for employees entering leave                   employee pay premiums directly to the                 compensation is received under the
                                                    without pay (LWOP) or any other type                    agency on a current basis if the agency               Federal Employees Compensation Act, 5
                                                    of nonpay status, except when nonpay                    makes a determination that all                        U.S.C. chapter 81. We solicit comments
                                                    is as a result of a lapse of                            employees in non-pay or insufficient                  on the exemption of categories of
                                                    appropriations. The regulation also                     pay status must pay premiums                          employees in LWOP from this proposed
                                                    affects employees who have insufficient                 currently. The proposed rule also                     rule.
                                                    pay to cover their premium                              specifies the procedures for                             Under current regulations at 5 CFR
                                                    contribution. Under current regulations,                disenrollment for nonpayment of                       890.502(b), an employing office must
                                                    a Federal agency pays the employee’s                    premiums.                                             inform the employee about available
                                                    share and the Government’s share of                     DATES:  Comments are due on or before                 health benefits choices as soon as it
                                                    FEHB premiums if an employee in                         October 31, 2016.                                     becomes aware that an employee’s
                                                    LWOP or other nonpay status elects to                                                                         premium payments cannot be made
                                                                                                            ADDRESSES: Send written comments to
                                                    continue coverage while in LWOP or                                                                            because he or she will be, or already is
                                                    other nonpay status and agrees to repay                 Julia Elam, Planning and Policy                       in a LWOP or other nonpay status, or
                                                    the agency (referred to interchangeably                 Analysis, U.S. Office of Personnel                    the employee’s pay is insufficient to
                                                    as ‘‘employing office’’) for their                      Management, Room 4316, 1900 E Street                  cover premium. The employing office
                                                    employee share upon return to                           NW., Washington, DC 20415. You may                    must give the employee written notice
                                                    employment for up to 365 days. In other                 also submit comments using the Federal                of the options to terminate coverage or
                                                    words, the agency must allow an                         eRulemaking Portal: http://                           continue coverage with either the direct
                                                    employee to incur a debt for the                        www.regulations.gov/. Follow the                      pay or the advance payment option. The
                                                    employee contribution to premium.                       instructions for submitting comments.                 employee then must elect in writing to
                                                    This outlay of funds may result in an                   FOR FURTHER INFORMATION CONTACT: Julia                either continue health benefits coverage
                                                    agency incurring a significant amount of                Elam at (202) 606–0004.                               or terminate it, while in LWOP or other
                                                    debt. This proposed rule would provide                  SUPPLEMENTARY INFORMATION: OPM is                     nonpay status or pay is insufficient to
                                                    an agency with the flexibility to require               revising the options and procedures that              cover premiums. If the employee’s
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                                                    that all of its employees in LWOP or                    employing offices may use when an                     coverage is continued, the employee
                                                    other nonpay status, except as a result                 employee elects to continue FEHB                      may pay the employee share of the
                                                    of lapse of appropriations, pay their                   coverage in leave without pay (LWOP)                  premium directly to the agency, or the
                                                    employee share for FEHB coverage                        or other nonpay status, except as a                   employee may opt for the agency to
                                                    directly to the agency and keep the                     result of lapse of appropriations, when               advance payment of the employee
                                                    payments current, if those employees                    the employee’s pay is insufficient to                 portion of the premium and agree to
                                                    elect to continue FEHB enrollment.                      cover premiums. Under 5 U.S.C.                        repay the premiums to the agency upon
                                                    Under 5 U.S.C. 8906(e), if an employee                  8906(e)(1)(a), an employee enrolled in a              returning to employment or upon pay


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                                                                           Federal Register / Vol. 81, No. 168 / Tuesday, August 30, 2016 / Proposed Rules                                            59519

                                                    becoming sufficient. Accordingly, there                 job series and pay grades and access to               opportunity to convert to an individual
                                                    is the possibility that the employee will               direct payment methods. Agencies                      policy, while failure to pay premiums
                                                    incur a debt to the agency if the                       should also consider that if they do                  after electing to continue FEHB
                                                    employee chooses to continue coverage                   advance employee contributions for                    enrollment is considered a cancellation.
                                                    and receive an advanced payment and                     premiums, these employees will incur a                OPM is seeking comments on the
                                                    does not return to work or is, for some                 debt which may not occur if the                       implementation of this proposed rule
                                                    reason, unable to repay the premium                     employee had an option to pay                         for employees currently on LWOP or
                                                    amount. Under § 890.502(b)(2)(ii), the                  premiums directly to the agency. We are               other nonpay status in which pay is
                                                    employing office can pay the                            seeking comment on these and other                    insufficient to cover the employee share
                                                    employee’s contributions and recover                    factors agencies should utilize to make               of FEHB premiums. OPM proposes
                                                    the amount of accrued unpaid                            this determination. The agency may                    making the rule effective for employees
                                                    premiums as a debt to the Federal                       reassess its determination every one or               who enter into LWOP or other nonpay
                                                    Government upon the employee’s return                   two years and provide notification to all             status after the date of the rule and not
                                                    to employment or when the employee’s                    employees. An agency may default to its               affecting employees currently on LWOP
                                                    pay becomes sufficient.                                 original determination and is not                     or other nonpay status.
                                                       Under this proposed regulation, each                 required to make a new determination at
                                                    agency would make the determination                                                                           Regulatory Impact Analysis
                                                                                                            the time of reassessment. If an agency
                                                    of whether its employees in LWOP or                     chooses to require its employees in                      OPM has examined the impact of this
                                                    other nonpay status would be required                   these circumstances to make direct                    proposed rule as required by Executive
                                                    to pay the employee share of premiums                   premium contributions on a current                    Order 12866 and Executive Order
                                                    directly to the agency on a current basis,              basis, it must provide written notice to              13563, which directs agencies to assess
                                                    or whether it is necessary, within the                  the affected employees. This section                  all costs and benefits of available
                                                    meaning of 5 U.S.C. 8906(e)(1)(B), for                  also explains that an agency may choose               regulatory alternatives and, if regulation
                                                    the agency to approve advance payment                   the other option to exercise its                      is necessary, to select regulatory
                                                    of the employee share of the premium.                   discretion to approve advance payment                 approaches that maximize net benefits
                                                    The agency would make the                               of the employee portion of the premium                (including potential economic,
                                                    determination for all its affected                      while its employees are in LWOP or                    environmental, public, health, and
                                                    employees at least once every 2 years.                  other nonpay status. This would be a                  safety effects, distributive impacts, and
                                                    OPM is proposing this change to                         change to current regulations at                      equity). A regulatory impact analysis
                                                    complement the FEHB Modification of                     § 890.502(b)(2)(ii), which presently                  must be prepared for major rules with
                                                    Eligibility final regulation (79 FR 62325,              provides that an employee may choose                  economically significant effects of $100
                                                    published on October 17, 2014) which                    this option if he or she does not does                million or more in any one year. This
                                                    allows generally for certain temporary,                 not wish to pay the premium directly to               rule is not considered a major rule
                                                    intermittent and seasonal employees to                  the agency and keep the payments                      because there will be a minimal impact
                                                    enroll in the FEHB Program if they are                  current.                                              on costs to Federal agencies.
                                                    expected to work at least 130 hours per                   OPM proposes for § 890.502(c)(2) to                 Regulatory Flexibility Act
                                                    month for at least 90 days. OPM                         establish procedures for terminating
                                                    recognizes that the recent expansion of                 enrollment for employees in LWOP or                      I certify that this regulation will not
                                                    eligibility for FEHB coverage may                       nonpay status that fail to directly pay               have a significant economic impact on
                                                    impact an agency’s budget due to the                    premiums currently. The regulation also               a substantial number of small entities
                                                    required FEHB Government health                         proposes notice requirements for the                  because the regulation only affects
                                                    benefit contributions for newly eligible                employee to receive regarding                         health insurance benefits of Federal
                                                    employees who elect to participate in                   termination of enrollment.                            employees and annuitants.
                                                    FEHB coverage and go into LWOP or                         Under this proposed regulation, an                  Regulatory Review
                                                    other nonpay status based on the                        employee that is in LWOP or other
                                                    intermittent nature of the work                         nonpay status or has insufficient pay to                This rule has been reviewed by the
                                                    performed.                                              cover his or her share of FEHB                        Office of Management and Budget in
                                                       OPM proposes for § 890.502(b) to                     premiums will have his or her                         accordance with Executive Orders
                                                    establish that an agency have the                       enrollment cancelled if he or she has                 13563 and 12866.
                                                    discretion to determine whether it is                   signed an agreement to directly pay                   Federalism
                                                    necessary for employees in LWOP or                      premiums on a current basis and fails to                 We have examined this rule in
                                                    other nonpay status to be advanced a                    make these payments currently, or                     accordance with Executive Order 13132,
                                                    portion of basic pay sufficient to pay                  enrollment terminated if the employee                 Federalism, and have determined that
                                                    current employee contribution to                        does not return the written notice. The               this rule restates existing rights, roles
                                                    premium, or whether the employees                       proposed regulation gives an employee                 and responsibilities of State, local, or
                                                    must be required to pay the employee                    the opportunity to seek reinstatement                 tribal governments.
                                                    contribution of the FEHB premium                        from the agency if he or she can show
                                                    currently to the agency. The                            they were prevented from paying                       List of Subjects on 5 CFR Part 890
                                                    determination made by the agency must                   premiums, or from returning the written                 Administrative practice and
                                                    apply to all employees in non-pay or                    notice, by circumstances beyond their                 procedure, Government employees,
                                                    insufficient pay status, and it cannot be               control. The employee must describe
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                                                                                                                                                                  Health insurance.
                                                    made on a case-by-case basis. When                      the circumstances that prevented him or
                                                                                                                                                                  U.S. Office of Personnel Management.
                                                    assessing whether it is necessary to pay                her from making a payment or returning
                                                    advanced employee contributions for                     the notice within 31 days after receiving             Beth F. Cobert,
                                                    premiums, the regulation provides that                  notice of disenrollment. Under this                   Acting Director.
                                                    an agency shall balance the needs of the                proposal, termination of an enrollment                  For the reasons set forth in the
                                                    agency, including available financial                   for failure to return a written notice                preamble, the Office of Personnel
                                                    resources and ease of operation, with                   entitles the employee to a 31-day                     Management proposes to amend 5 CFR
                                                    those of its employees, including typical               temporary extension of coverage and                   part 890 as follows:


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                                                    59520                  Federal Register / Vol. 81, No. 168 / Tuesday, August 30, 2016 / Proposed Rules

                                                    PART 890—FEDERAL EMPLOYEES                              agency shall advance payment for                      available to them as determined by the
                                                    HEALTH BENEFITS PROGRAM                                 employee premiums for employees                       agency or that the employee can elect to
                                                                                                            utilizing the following categories of                 terminate enrollment when an
                                                    ■ 1. The authority citation for part 890                LWOP: For purposes of the Family and                  employee’s pay is not enough to cover
                                                    continues to read as follows:                           Medical Leave Act, for performance of                 the premiums.
                                                       Authority: 5 U.S.C. 8913; Sec. 890.301               duty in the uniformed services under                     (1) The employing office must provide
                                                    also issued under sec. 311 of Pub. L. 111–03,           the Uniformed Services Employment                     the employee written notice of the
                                                    123 Stat. 64; Sec. 890.111 also issued under            and Reemployment Rights Act of 1994,                  option available to them as determined
                                                    section 1622(b) of Pub. L. 104–106, 110 Stat.           38 U.S.C. 4301 et seq., for receiving                 by the agency and consequences as
                                                    521; Sec. 890.112 also issued under section             medical treatment under Executive                     described in paragraphs (c) (2) (i) and
                                                    1 of Pub. L. 110–279, 122 Stat. 2604; 5 U.S.C.                                                                (ii) of this section and will send a letter
                                                                                                            Order 5396 (Jul. 7 1930), and for periods
                                                    8913; Sec. 890.803 also issued under 50                                                                       by first class mail if it cannot give it to
                                                    U.S.C. 403p, 22 U.S.C. 4069c and 4069c–1;               during which workers compensation is
                                                                                                            received under the Federal Employees                  the employee directly. If it mails the
                                                    subpart L also issued under sec. 599C of 101,
                                                    104 Stat. 2064, as amended; Sec. 890.102 also           Compensation Act, 5 U.S.C. chapter 81.                notice, it is deemed to be received
                                                    issued under sections 11202(f),11232(e),                   (2) If an employing office requires an             within 5 days.
                                                    11246(b) and (c) of Pub. L. 105–33, 111 Stat.           employee to pay the employee share of                    (2) The employee must elect in
                                                    251; and section 721 of Pub. L. 105–261, 112            premium contributions directly to the                 writing to either continue their FEHB
                                                    Stat. 2061.                                             agency on a current basis for the period              enrollment under the option that the
                                                                                                            during which an employee specifies he                 employer has chosen or terminate it.
                                                    Subpart E—Contributions and                             or she will be in LWOP or other nonpay                (Exception: An employee who is subject
                                                    Withholdings                                            status, the employing office must                     to a court or administrative order as
                                                    ■  2. In § 890.502:                                     provide the employee written notice                   discussed in § 890.301(g)(3) cannot elect
                                                    ■  a. Redesignate paragraphs (b) through                and an agreement that he or she will be               to terminate his or her enrollment as
                                                    (f) as paragraphs (c) through (g).                      required to pay premiums directly to the              long as the court or administrative order
                                                    ■ b. Add new paragraph (b).                             agency on a current basis by following                is still in effect and the employee has at
                                                    ■ c. Revise newly redesignated                          the procedures as outlined in                         least one child identified in the order
                                                    paragraph (c).                                          paragraphs (c)(2) of this section. The                who is still eligible under the FEHB
                                                       The addition and revision read as                    employee must sign the agreement if he                Program, unless the employee provides
                                                    follows:                                                or she chooses to continue coverage                   documentation that he or she has other
                                                                                                            under an agency’s election to require                 coverage for the child(ren).) The
                                                    § 890.502 Withholdings, contributions,                                                                        employee may continue enrollment by
                                                    LWOP, premiums, and direct premium                      that payments be made directly on a
                                                                                                                                                                  returning a signed form to the
                                                    payment.                                                current basis.
                                                                                                                                                                  employing office within 31 days after he
                                                    *      *    *      *     *                                 (3) If necessary, an agency may elect
                                                                                                                                                                  or she receives the notice (45 days for
                                                       (b) Agency flexibility to require direct             to advance a portion of basic pay
                                                                                                                                                                  an employee residing overseas). When
                                                    payment of employee premiums on a                       sufficient to pay current employee
                                                                                                                                                                  an employee mails the signed form, its
                                                    current basis. An agency may require all                contributions to premium for employees
                                                                                                                                                                  postmark will be used as the date the
                                                    employees that enter leave without pay                  entering LWOP or other nonpay status.
                                                                                                                                                                  form is returned to the employing office.
                                                    (LWOP) or other nonpay status except                    If the agency so elects, the employing
                                                                                                                                                                  If an employee elects to continue their
                                                    for as a result of lapse of appropriations,             office must provide the employee
                                                                                                                                                                  enrollment under the option that the
                                                    whose pay is insufficient to cover                      written notice and an agreement that he
                                                                                                                                                                  employer has chosen, he or she must
                                                    premium, pay their employee premium                     or she will incur a debt to the extent of             elect in writing the option that has been
                                                    contributions directly to the agency on                 the advanced premiums, and will be                    specified by the employing office for all
                                                    a current basis or; if necessary, the                   required to repay the unpaid premiums                 employees as described in paragraph
                                                    agency may elect to provide advance                     from salary deduction, upon returning                 (b). The employee would agree to the
                                                    payment of the employee portion of                      to pay status or upon payment becoming                following as specified by the employing
                                                    premium for all employees in these                      sufficient to cover premiums, until the               office:
                                                    circumstances. In determining whether                   debt is recovered in full, by following                  (i) If the agency has elected to allow
                                                    it is necessary to pay employee                         the procedures as outlined in                         all employees to pay the premium
                                                    contributions for premiums, an agency                   paragraphs (c)(2) of this section.                    directly to the agency and keep the
                                                    shall balance the needs of the agency,                  *      *      *    *     *                            payments current, the employee must
                                                    including available financial resources                    (c) Procedures when an employee                    agree to pay the premium directly, or;
                                                    and ease of operation, with those of its                enters a leave without pay (LWOP) or                     (ii) If the agency has elected to allow
                                                    employees, including typical job series                 other nonpay status or pay is                         all employees to incur a debt as
                                                    and pay grades and access to direct                     insufficient to cover premium. The                    described in paragraph (b)(2) he or she
                                                    payment methods. The agency may                         employing office must tell the employee               must agree that upon returning to
                                                    reassess its policy decision every one or               about available health benefits choices               employment or upon pay becoming
                                                    two years and should provide                            as soon as it becomes aware that an                   sufficient to cover the premiums, the
                                                    notification to all its employees. An                   employee’s premium payments cannot                    employing office will deduct, in
                                                    agency must choose one of these two                     be made because he or she will be or is               addition to the current pay period’s
                                                    options for all employees that enter non-               already in a leave without pay (LWOP)                 premiums, an amount equal to the
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                                                    pay status or whose pay is insufficient                 status or other type of nonpay status.                premiums for a pay period during
                                                    to cover premium, except for certain                    (This does not apply when nonpay is as                which the employee was in a leave
                                                    qualifying LWOP categories.                             a result of a lapse of appropriations or              without pay (LWOP) or other nonpay
                                                       (1) For purposes of this paragraph (b),              employees have been furloughed. In                    status, or pay was not enough to cover
                                                    qualifying LWOP categories are exempt                   these instances, the premiums will                    premiums. The employing office will
                                                    from an agency determination.                           accumulate and be paid upon return to                 continue using this method to deduct
                                                    Regardless of the agency’s                              duty). The employing office must also                 the accrued unpaid premiums from
                                                    determination under paragraph (b), an                   tell the employee about the option                    salary until the debt is recovered in full.


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                                                                           Federal Register / Vol. 81, No. 168 / Tuesday, August 30, 2016 / Proposed Rules                                                59521

                                                    The employee must also agree that if he                 under as discussed in paragraph(c)(2)(ii)             The employing office will determine if
                                                    or she does not return to work or the                   of this section.                                      the employee is eligible for
                                                    employing office cannot recover the                        (5) Terminations of enrollment under               reinstatement of coverage; and, when
                                                    debt in full from salary, the employing                 paragraphs (c)(2) and (3) of this section             the determination is affirmative, notify
                                                    office may recover the debt from                        are retroactive to the last day of the last           the carrier of the decision. The notice
                                                    whatever other sources it normally has                  pay period in which the premium was                   must set forth the findings on which the
                                                    available for recovery of a debt to the                 withheld from pay. The employee and                   decision was based. If the employing
                                                    Federal Government.                                     covered family members, if any, are                   office determines that the employee was
                                                       (iii) If an employee elects to terminate             entitled to the 31-day temporary                      prevented from making payments
                                                    enrollment, the effective date of the                   extension of coverage and opportunity                 current within the timeframe due to
                                                    termination is retroactive to the end of                to convert to a non-group policy under                circumstances beyond his or her
                                                    the last pay period in which the                        § 890.401. An employee whose coverage                 control, the employee’s enrollment will
                                                    premium was withheld from pay.                          is terminated under this paragraph may                be reinstated retroactive to the date of
                                                       (3) If the employee does not return the              re-enroll upon his or her return to duty              termination.
                                                    signed form within the time period                      in pay status in a position in which the                (iv) An employee whose coverage is
                                                    described in paragraph (c)(2) of this                   employee is eligible for coverage under               terminated under paragraph (c)(6) may
                                                    section, the employing office will                      this part.                                            enroll upon his or her return to duty in
                                                    terminate the enrollment and notify the                    (6) If an employee signs and returns               pay status in a position in which the
                                                    employee in writing of the termination.                 a form to the employing office stating                employee is eligible for coverage.
                                                                                                            that he or she will make premium
                                                       (4) If an employee has not elected to                                                                      *     *     *     *     *
                                                                                                            payments directly to the agency and
                                                    terminate enrollment and is prevented                                                                         [FR Doc. 2016–20565 Filed 8–29–16; 8:45 am]
                                                                                                            keep the payments current in
                                                    by circumstances from returning a                                                                             BILLING CODE 6325–63–P
                                                                                                            accordance with paragraph (c)(2)(i) but
                                                    signed form indicating the employee
                                                                                                            fails to pay currently, as soon as it
                                                    elects to continue their enrollment
                                                                                                            becomes aware of the nonpayment of
                                                    under the option that the employer has                                                                        DEPARTMENT OF AGRICULTURE
                                                                                                            premium, the employing office shall
                                                    chosen, the employee may request
                                                                                                            notify the employee that he or she has
                                                    reinstatement.                                                                                                Agricultural Marketing Service
                                                                                                            31 days to make payments current or
                                                       (i) If the employee is prevented by                  she or he will have coverage terminated
                                                    circumstances beyond his or her control                                                                       7 CFR Part 205
                                                                                                            retroactively to the day that follows the
                                                    from returning a signed form to the                     last day of the last pay period for which             [Document Number AMS–NOP–16–0069;
                                                    employing office within the time period                 a current employee contribution was                   NOP–16–08]
                                                    described in paragraph (c)(2) of this                   received.
                                                    section, he or she may write to the                        (i) If the employee does not make a                National Organic Program: Notice of
                                                    employing office and request                            payment within the 31 days of the                     Interim Instruction on Material Review
                                                    reinstatement of the enrollment. The                    notification, the employing office must
                                                    employee must describe the                                                                                    AGENCY:  Agricultural Marketing Service,
                                                                                                            terminate the employee’s enrollment                   USDA.
                                                    circumstances that prevented him or her                 retroactively to the day that follows the
                                                    from returning the form. The request for                                                                      ACTION: Notice of availability of interim
                                                                                                            last day of the last pay period for which
                                                    reinstatement must be made within 30                                                                          instruction with request for comments.
                                                                                                            a current employee contribution was
                                                    calendar days from the date the                         received.                                             SUMMARY:    The Agricultural Marketing
                                                    employing office gives the employee                        (ii) Termination of an enrollment for              Service (AMS) is announcing the
                                                    notice of the termination. The                          failure to pay premiums after the                     availability of an interim instruction
                                                    employing office will determine if the                  employee had elected to continue                      document intended for use by
                                                    employee is eligible for reinstatement of               coverage and to pay premiums currently                accredited certifying agents. The interim
                                                    coverage. When the determination is                     under (c)(2)(i) and (c)(6), is considered             instruction document is entitled: NOP
                                                    affirmative, the employing office will                  a cancellation as described in                        3012: Material Review. This instruction
                                                    reinstate the enrollment of the employee                § 890.401(a)(2) and the employee is not               specifies the criteria and process that
                                                    retroactive to the date of termination. If              entitled to a 31-day temporary extension              USDA accredited organic certifying
                                                    the determination is negative, the                      of coverage or opportunity to convert to              agents (certifiers) must follow when
                                                    employee may request a review of the                    an individual policy.                                 approving substances for use in organic
                                                    decision from the employing office (see                    (iii) If an employee that has                      production and handling. This
                                                    § 890.104).                                             enrollment terminated under this part                 instruction is directed at certifiers, who
                                                       (ii) If the employee is subject to a                 was prevented by circumstances beyond                 must meet certain terms and conditions
                                                    court or administrative order as                        his or her control from making payment                as part of their accreditation. The AMS
                                                    discussed in § 890.301(g)(3), the                       within 31 days after receipt of the notice            invites interested parties to submit
                                                    coverage cannot terminate unless the                    of termination, he or she may request                 comments about this instruction
                                                    employee has provided documentation                     reinstatement of coverage by writing to               document.
                                                    to the employing office that he or she                  the employing office. Such a request
                                                    has other coverage for the child or                     must be filed within 30 calendar days                 DATES:  To ensure that NOP considers
                                                    children, and the employing office has                  from the date of termination and must                 your comment on this interim
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                                                    determined the coverage is appropriate,                 be accompanied by verification that the               instruction before it begins work on the
                                                    as discussed in 5 CFR 890.301(g)(3). If                 employee was prevented by                             final version, submit written comments
                                                    the employee does not return the signed                 circumstances beyond his or her control               on the interim instruction by October
                                                    form, the coverage will continue and the                from paying within the time limit. The                31, 2016.
                                                    employee will incur a debt to the                       verification must describe the                        ADDRESSES: Submit written requests for
                                                    Federal Government, and the employing                   circumstances that prevented him or her               hard copies of this interim instruction to
                                                    office will recover the amount of                       from making a payment within 31 days                  Dr. Paul Lewis, Standards Division,
                                                    accrued unpaid premium as a debt                        after receipt of the notice of termination.           National Organic Program (NOP),


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Document Created: 2018-02-09 11:42:21
Document Modified: 2018-02-09 11:42:21
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking.
DatesComments are due on or before October 31, 2016.
ContactJulia Elam at (202) 606-0004.
FR Citation81 FR 59518 
RIN Number3206-AN33
CFR AssociatedAdministrative Practice and Procedure; Government Employees and Health Insurance

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