81 FR 60235 - Special Rights for Transferred Employees Under the Dodd-Frank Act Regarding Federal Employees' Group Life Insurance

OFFICE OF PERSONNEL MANAGEMENT

Federal Register Volume 81, Issue 170 (September 1, 2016)

The U.S. Office of Personnel Management (OPM) is issuing a Final Rulemaking to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act). The Act includes authorization for certain transferred employees to have a special enrollment opportunity and special rights regarding Federal Employees' Group Life Insurance (FEGLI) to ensure their continuity of benefits coverage.

[Federal Register Volume 81, Number 170 (Thursday, September 1, 2016)]
[Rules and Regulations]
[Pages 60235-60236]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-21077]



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Federal Register / Vol. 81, No. 170 / Thursday, September 1, 2016 / 
Rules and Regulations

[[Page 60235]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 870

RIN 3206-AM81


Special Rights for Transferred Employees Under the Dodd-Frank Act 
Regarding Federal Employees' Group Life Insurance

AGENCY: U.S. Office of Personnel Management.

ACTION: Final rulemaking.

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SUMMARY: The U.S. Office of Personnel Management (OPM) is issuing a 
Final Rulemaking to implement provisions of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (the Act). The Act includes 
authorization for certain transferred employees to have a special 
enrollment opportunity and special rights regarding Federal Employees' 
Group Life Insurance (FEGLI) to ensure their continuity of benefits 
coverage.

DATES: Effective September 1, 2016.

FOR FURTHER INFORMATION CONTACT: Rachel Royster, Senior Policy Analyst, 
Planning and Policy Analysis, U.S. Office of Personnel Management, 1900 
E Street NW., Washington, DC 20415.

SUPPLEMENTARY INFORMATION: On January 6, 2014, the U.S. Office of 
Personnel Management (OPM) published a proposed regulation at 79 FR 
613. The Administrative Procedures Act requires Federal agencies to 
publish a final regulation after a notice and comment period. 
Therefore, OPM is now finalizing this rule. The rule gave special FEGLI 
rights to the following employees who were carrying employer sponsored 
life insurance other than FEGLI: Employees from Office of Thrift 
Supervision (OTS) transferred to Office of the Comptroller of the 
Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) under 
the Act (Pub. L. 111-203). The new regulatory provisions include new 
subparts in part 870 of title 5 of the Code of Federal Regulations.
    Authorizing legislation: Section 322 of Public Law 111-203 
discusses the transfer of employees and their special FEGLI rights.

Section 322 Transfer of Employees From OTS to OCC or FDIC

    The relevant portions of this section states that if, after the 1-
year period beginning on the transfer date, the Office of the 
Comptroller of the Currency or the Corporation determines that the 
Office of the Comptroller of the Currency or the Corporation will not 
continue to participate in any dental, vision or life insurance program 
of an agency from which an employee was transferred, a transferred 
employee who is a member of the program may, before the decision takes 
effect and without regard to any regularly scheduled open season, elect 
to enroll in the Federal Employees' Group Life Insurance Program 
established under chapter 87 of title 5, United States Code, without 
regard to any requirement of insurability.
    For any transferred employee, enrollment in a life insurance plan 
administered by the agency from which the employee transferred, 
immediately before enrollment in a life insurance plan under chapter 87 
of title 5, United States Code, shall be considered as enrollment in a 
life insurance plan under that chapter for the purpose of 8706(b)(1)(A) 
of title 5, United States Code.
    These provisions allow a transferring employee that participated in 
an OTS life insurance program that is no longer available at OCC or 
FDIC to have a special enrollment period for FEGLI. OTS maintained the 
Office of Thrift Supervision Group Life Insurance Program in which OCC 
and FDIC did not continue to participate. Therefore, at approximately 
one year after the transfer date, July 21, 2011, OPM held a special 
enrollment period for transferred employees participating in Office of 
Thrift Supervision Group Life Insurance Program to enroll in FEGLI. The 
special enrollment period began on June 1, 2012 and ended July 29, 
2012.
    Any employee that enrolled in FEGLI during this special enrollment 
period will have their time in a life insurance plan administered by 
OTS credited towards their 5 years of continuous enrollment to continue 
FEGLI coverage into retirement.
    There were other provisions in the Dodd-Frank Act relating to FEGLI 
coverage discussed in the Notice of Proposed Rulemaking. However, these 
do not require further changes in FEGLI rulemaking. We received no 
comments on the proposed rule.
    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 OPM expects that this rule will not impose costs of more 
than $100 million in any one year.

Executive Orders 13563 and 12866, 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 will not have 
any negative impact on the rights, roles and responsibilities of State, 
local, or tribal governments.

 List of Subjects in 5 CFR Part 870

    Administrative practice and procedure, Government employees, Life 
insurance.

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

    For the reasons set forth in the preamble, the U.S. Office of 
Personnel Management amends 5 CFR part 870 as follows:

[[Page 60236]]

Title 5--Administrative Personnel

PART 870--FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM

0
1. The authority citation for 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.

0
2. In Sec.  870.701, add paragraph (f) to read as follows:


Sec.  870.701  Eligibility for life insurance.

* * * * *
    (f) An individual's period of coverage in a life insurance plan is 
credited to the 5 years of service under paragraph (a)(2) of this 
section if:
    (1) He/she participated in the Office of Thrift Supervision (OTS) 
life insurance plan and transferred to the Office of the Comptroller of 
the Currency or the Federal Deposit Insurance Corporation under the 
Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 
111-203; and
    (2) Elected FEGLI coverage during the special enrollment period 
between June 1, 2012 and July 29, 2012. Evidence of the non-FEGLI 
period of continuous coverage will be documented in a manner designated 
by OPM.
[FR Doc. 2016-21077 Filed 8-31-16; 8:45 am]
 BILLING CODE 6325-63-P