81 FR 93851 - Federal Employees' Retirement System; Government Costs
OFFICE OF PERSONNEL MANAGEMENT Federal Register Volume 81, Issue 246 (December 22, 2016)
Federal Register Volume 81, Issue 246 (December 22, 2016)
| Page Range | 93851-93855 | |
| FR Document | 2016-30487 |
[Federal Register Volume 81, Number 246 (Thursday, December 22, 2016)] [Proposed Rules] [Pages 93851-93855] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-30487] ======================================================================== 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. 246 / Thursday, December 22, 2016 / Proposed Rules [[Page 93851]] OFFICE OF PERSONNEL MANAGEMENT 5 CFR Parts 831, 839, 841, 842, and 847 RIN 3206-AN22 Federal Employees' Retirement System; Government Costs AGENCY: Office of Personnel Management. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: This rule proposes to amend its regulations to clarify the manner for determining a supplemental liability, the process by which the United States Postal Service (USPS) and the United States Department of the Treasury (Treasury) may request reconsideration of OPM's valuation of the supplemental liability, and to make associated changes. OPM also proposes to amends its regulations to clarify the employee categories it will use to compute the normal cost percentages. DATES: We must receive your comments by February 21, 2017. ADDRESSES: You may submit comments, identified by docket number and/or RIN number 3206-AN22 by any of the following methods:Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. Email: [email protected]. Include RIN number 3206-AN22 in the subject line of the message. Mail: Roxann Johnson, Retirement Policy, Retirement Services, Office of Personnel Management, 1900 E Street NW., Washington, DC 20415-3200. FOR FURTHER INFORMATION CONTACT: Roxann Johnson, (202) 606-0299. SUPPLEMENTARY INFORMATION: OPM's determination of the Federal Employees' Retirement System (FERS) normal cost percentage necessary to fund the Civil Service Retirement and Disability Fund (CSRDF) is subject to appeal by agencies with at least 1,000 employees in the general category of employees or 500 employees in any of the special category of employees, and the Secretary of the Treasury or the Postmaster General may request the Board of Actuaries reconsider the amount determined to be payable with respect to any supplemental liability in accordance with 5 U.S.C.8423(c) and 5 CFR 841.409. Sections 841.401 through 841.411 establish the time limits and requirements for an agency appeal of OPM's determination of a normal cost percentage. However, these regulations do not include detailed requirements for the contents of a USPS or a Treasury request for reconsideration of the amount payable with respect to a supplemental liability. Therefore, OPM proposes to include new regulations under 5 CFR part 841 that clarify the process by which the Secretary of the Treasury and the U.S. Postmaster General may file a request for the Board of Actuaries of the Civil Service Retirement System to reconsider an amount determined to be payable to the CSRDF with respect to a supplemental liability. OPM also proposes to amend its definition of ``actuary'' in 5 CFR 841.402. The current definition is limited to ``an associate or fellow in the Society of Actuaries and one who is enrolled under section 3042 of Public Law 93-406, the Employee Retirement Income Security Act of 1974'' (ERISA). OPM believes this definition no longer reflects professional standards generally required of an actuary for this subpart, and that the current regulatory definition is overly narrow because it works to exclude knowledgeable and experienced actuaries who may not be enrolled under ERISA, but who are well qualified to issue statements of opinion with regard to the CSRDF. As a result, OPM proposes to amend the definition of ``actuary'' under 5 CFR 841.402 to include those who are qualified under actuarial standards of practice in the United States and who have the experience and knowledge to issue a statement of opinion with regard to defined benefit retirement plans. Additionally, OPM proposes to amend its regulations under 5 CFR 841.403 to make clear that it determines separate normal cost percentages for employees covered under FERS, FERS Revised Annuity Employees (FERS-RAE), and FERS Further Revised Annuity Employees (FERS- FRAE) in compliance with section 5001 of the ``Middle Class Tax Relief and Job Creation Act of 2012,'' Public Law 112-96, 126 Stat. 199 (Feb. 22, 2012), and section 401 of the ``Bipartisan Budget Act of 2013,'' Public Law 113-67, 127 Stat. 1165 (Dec. 26, 2013). This legislation defined FERS-RAE and FERS-FRAE employees for whom increased retirement deductions apply, which results in increased outlays from the CSRDF in refund and lump-sum payments of employee contributions. For that reason, the normal cost percentages for FERS-RAE and FERS-FRAE employees are expected to exceed the normal cost percentages for other FERS employees. The legislation also reduced the benefit accrual rates for Members and Congressional employees (other than Capitol Police) subject to FERS-RAE and FERS-FRAE, resulting in lower associated normal cost percentages. To ensure regulations reflect current statutory language, OPM proposes to amend 5 CFR 841.403 to clearly establish separate normal cost percentages for FERS, FERS-RAE and FERS-FRAE employees within each employee category listed under 5 CFR 841.403. Also under 5 CFR 841.403, OPM proposes to clarify that it will include members of the Capitol Police as ``Congressional Employees'' for purposes of deriving separate normal cost percentages for this employee group. OPM includes members of the Capitol Police with Congressional employees when deriving the normal cost percentages for this employee group because, in part, 5 U.S.C. 2107(4), defines ``a member or employee of the Capitol Police'' as ``a Congressional employee.'' The Middle Class Tax Relief and Job Creation Act of 2014 eliminated for FERS-RAE and FERS-FRAE employees the higher annuity accrual rates for Congressional employees provided under 5 U.S.C. 8415(c) (see 5 U.S.C. 8415(d)), but did not eliminate the higher annuity accrual rates under 5 U.S.C. 8415(e) for members of the Capitol Police subject to FERS-RAE and FERS-FRAE. The annuity benefits of members of the Capitol Police are more closely comparable to another of the special employee groups (law enforcement officers, whose annuities are computed under 5 U.S.C. 8415(e)) for the purpose of determining their FERS normal cost percentage. However, because a member of the Capitol Police is not within the FERS definition of [[Page 93852]] ``law enforcement officer'' at 5 U.S.C. 8401(17), members of the Capitol Police are not included in the special category of ``law enforcement officers'' under 5 U.S.C. 8423(a)(1)(B) and, therefore, are not subject to the normal cost percentage applicable to that group. The only special category listed in 5 U.S.C. 8423(a)(1)(B) that does apply to members of the Capitol Police is ``Congressional employees.'' Thus, despite the fact that the other Congressional employees subject to FERS-RAE and FERS-FRAE do not receive enhanced annuity accrual rates, OPM must include Capitol Police in the Congressional employee normal cost percentage calculation under 5 U.S.C. 8423(a)(1)(B). Therefore, OPM proposes to amend 5 CFR 841.403(b) to reflect all Congressional employees including members of the Capitol Police in determining the FERS, FERS-RAE and FERS-FRAE normal cost percentages for the ``Congressional Employees'' category. OPM proposes to amend 5 CFR 841.403 to also include U.S. Postal Service employees as a separate category for which OPM will derive normal cost percentages. OPM has determined a government-wide normal cost percentage for each category of employee, and USPS employees have been included in the category of either ``all other employees'' or ``law enforcement officer'' under 5 CFR 841.403(c) and (g). In reviewing a request of the USPS for reconsideration under 5 U.S.C. 8423(c), the Board of Actuaries of the Civil Service Retirement System has recommended OPM to consider that the supplemental liability under 5 U.S.C. 8423(b)(1)(B), and the normal cost percentage for USPS employees who do not fall under the category of ``law enforcement officer'' at 5 CFR 841.403(c), be calculated using USPS-specific assumptions regarding demographic factors, rather than government-wide demographic assumptions. Because of the separate Unites State Postal Service funding provisions established the under 5 U.S.C. 8423(b), OPM is proposing regulations to provide for the use of USPS-specific assumptions regarding demographic factors in the calculation of the USPS supplemental liability and in the determination of the normal cost percentage for Postal Service employees who do not fall under the category of ``law enforcement officer.'' OPM proposes and amends 5 CFR 841.414, which will provide specific guidance on the calculation of the supplemental liability; and OPM proposes to add employees of the USPS, who are not ``law enforcement officers'' under 5 CFR 841.403(c), as a separate category for which OPM will derive normal cost percentages under 5 CFR 841.403. OPM also proposes to add sections 841.415 through 841.417. These sections would establish the procedures and requirements for a request for reconsideration of a supplemental liability determination filed by the Secretary of the Treasury or the Postmaster General. Under Sec. 841.417, the actuarial analysis submitted with the request must demonstrate a difference in the supplemental liability of at least 2 percent of the present value of future benefits calculated in OPM's computation of the supplemental liability. The Board of Actuaries recommended that the threshold to sustain a request for reconsideration be set as a difference in present value of future benefits. OPM's actuaries tested the effect of what might be considered substantive changes in the demographic assumptions and produced results within a range of 0 percent to a decrease of 5.9 percent. As a result, OPM has decided that a reasonable threshold requirement for the Board of Actuaries to sustain a request for reconsideration of a supplemental liability is 2 percent of the present value of future benefits. Additionally, OPM proposes to refine its definitions of present value factor and actuarial present value under 5 CFR parts 831, 839, 842, and 847 to ensure that these definitions are uniform and appropriate. Several provisions of the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) require reduction of annuities on an actuarial basis. For example, OPM applies the present value factors to: 1. Retirees who elect to provide survivor annuity benefits to spouses based on post-retirement marriages; 2. Retiring employees who elect the alternative form of annuity; 3. Employees who owe certain redeposits based on refunds of contributions for service ending before March 1, 1991; 4. Employees who elect to credit certain service with nonappropriated fund instrumentalities; and 5. Retirees with certain types of retirement coverage errors who can elect to receive credit for service by taking an actuarial reduction under the provisions of the Federal Erroneous Retirement Coverage Correction Act (FERCCA). Specifically, OPM proposes to clarify, under 5 CFRs 831.303, 831.603, 831.2202, 839.102, 842.602, 842.702, and 847.103, that the present value factors are computed by using a composite of sex-distinct factors based upon mortality assumptions for annuitant populations. The factors reflect an increase in benefit payments at an assumed rate of cost-of living adjustment, where appropriate. OPM proposes to remove Sec. 847.602, which currently provides a separate description of present value factors for purposes of Subpart F of part 847 in order to include a definition of ``present value factor'' for all of part 847 and to include a new section (Sec. 842.616) to describe when the present value factors will be published. Additionally, OPM proposes to clarify under 5 CFRs 842.602 and 842.702 that separate present value factors apply to FERS annuities that receive cost-of-living adjustments before the retiree attains age 62 versus annuities that do not receive cost-of-living adjustments before age 62. Executive Order 12866, Regulatory Review This rule has been reviewed by the Office of Management and Budget in accordance with Executive Order (E.O.) 12866, as amended by E.O. 13258 and E.O. 13422. Regulatory Flexibility Act I certify that this regulation will not have a significant economic impact on a substantial number of small entities. List of Subjects 5 CFR Part 831 Firefighters, Government employees, Income taxes, Intergovernmental relations, Law enforcement officers, Pensions, Reporting and recordkeeping requirements, Retirement. 5 CFR Part 839 Administrative practice and procedure, Claims, Employment taxes, Government employees, Pensions, Reporting and recordkeeping requirements, Retirement, Social security. 5 CFR Part 841 Administrative practice and procedure, Air traffic controllers, Claims, Disability benefits, Firefighters, Government employees, Income taxes, Intergovernmental relations, Law enforcement officers, Pensions, Retirement. 5 CFR Part 842 Air traffic controllers, Alimony, Firefighters, Law enforcement officers, Pensions, Retirement. [[Page 93853]] 5 CFR Part 847 Administrative practice and procedure, Disability benefits, Government employees, Pensions, Reporting and recordkeeping requirements, Retirement. U.S. Office of Personnel Management. Beth F. Cobert, Acting Director. For the reasons stated in the preamble, the Office of Personnel Management proposes to amend 5 CFR parts 831, 839, 841, 842, and 847 as set forth below: PART 831--RETIREMENT 0 1. The authority citation for part 831 continues to read as follows: Authority: 5 U.S.C. 8347; Sec. 831.102 also issued under 5 U.S.C. 8334; Sec. 831.106 also issued under 5 U.S.C. 552a; Sec. 831.108 also issued under 5 U.S.C. 8336(d)(2); Sec. 831.114 also issued under 5 U.S.C. 8336(d)(2), and Sec. 1313(b)(5) of Pub. L. 107-296, 116 Stat. 2135; Sec. 831.201(b)(1) also issued under 5 U.S.C. 8347(g); Sec. 831.201(b)(6) also issued under 5 U.S.C. 7701(b)(2); Sec. 831.201(g) also issued under Secs. 11202(f), 11232(e), and 11246(b) of Pub. L. 105-33, 111 Stat. 251; Sec. 831.201(g) also issued under Sec. 7(b) and (e) of Pub. L. 105-274, 112 Stat. 2419; Sec. 831.201(i) also issued under Secs. 3 and 7(c) of Pub. L. 105-274, 112 Stat. 2419; Sec. 831.204 also issued under Sec. 102(e) of Pub. L. 104-8, 109 Stat. 102, as amended by Sec. 153 of Pub. L. 104-134, 110 Stat. 1321; Sec. 831.205 also issued under Sec. 2207 of Pub. L. 106-265, 114 Stat. 784; Sec. 831.206 also issued under Sec. 1622(b) of Pub. L. 104-106, 110 Stat. 515; Sec. 831.301 also issued under Sec. 2203 of Pub. L. 106-265, 114 Stat. 780; Sec. 831.303 also issued under 5 U.S.C. 8334(d)(2) and Sec. 2203 of Pub. L. 106-235, 114 Stat. 780; Sec. 831.502 also issued under 5 U.S.C. 8337, and Sec. 1(3), E.O. 11228, 3 CFR 1965-1965 Comp. p. 317; Sec. 831.663 also issued under 5 U.S.C. 8339(j) and (k)(2); Secs. 831.663 and 831.664 also issued under Sec. 11004(c)(2) of Pub. L. 103-66, 107 Stat. 412; Sec. 831.682 also issued under Sec. 201(d) of Pub. L. 99-251, 100 Stat. 23; Sec. 831.912 also issued under Sec. 636 of Appendix C to Pub. L. 106-554, 114 Stat. 2763A-164; Subpart P also issued under Sec. 535(d) of Title V of Division E of Pub. L. 110-161, 121 Stat. 2042; Subpart V also issued under 5 U.S.C. 8343a and Sec. 6001 of Pub. L. 100-203, 101 Stat. 1330-275; Sec. 831.2203 also issued under Sec. 7001(a)(4) of Pub. L. 101-508, 104 Stat. 1388-328. Subpart A--Administration and General Provisions 0 2. Add Sec. 831.117 to read as follows: Sec. 831.117 Computation of the Supplemental Liability (a) OPM will compute each supplemental liability of the Fund using demographic factors specific to the populations for which the supplemental liability applies. (b) The supplemental liability will be computed based on the economic assumptions used by the Board of Actuaries of the Civil Service Retirement System for the most recent valuation of the System. (c) Each supplemental liability shall be rounded to the nearest one hundred million dollars. 0 3. Amend Sec. 831.303 by revising paragraphs (c)(3) and (d)(3) to read as follows: Sec. 831.303 Civilian service. * * * * * (c) * * * (3) For the purpose of paragraph (b)(2) of this section, the term ``present value factor'' has the same meaning as defined in Sec. 831.603 and ``time of retirement'' has the same meaning as defined in Sec. 831.2202. (d) * * * (3) For the purpose of paragraph (d)(2) of this section, the term ``present value factor'' has the same meaning as defined in Sec. 831.603 and ``time of retirement'' has the same meaning as defined in Sec. 831.2202. 0 4. Amend Sec. 831.603 by revising the definition of ``present value factor'' to read as follows: Sec. 831.603 Definitions. * * * * * Present value factor means the amount of money (earning interest at an assumed rate) required at the time of annuity commencement to fund an annuity that starts at the rate of $1 a month and is payable in monthly installments for the annuitant's lifetime based on mortality rates for annuitants paid from the Civil Service Retirement and Disability Fund; and increases each year at an assumed rate of cost of living adjustment. Assumed rates of interest, mortality, and cost-of- living adjustments used in computing the present value are those used by the Board of Actuaries of the Civil Service Retirement System for valuation of the System based on dynamic assumptions. The present value factors are unisex factors obtained as a composite of sex-distinct present value factors. * * * * * 0 5. Amend Sec. 831.2202 by revising the definition of ``present value factor'' to read as follows: Sec. 831.2202 Definitions. * * * * * Present value factor has the same meaning in this subpart as defined in Sec. 831.603. * * * * * PART 839--CORRECTION OF RETIREMENT COVERAGE ERRORS UNDER THE FEDERAL ERRONEOUS RETIREMENT COVERAGE CORRECTIONS ACT 0 6. The authority citation for part 839 continues to read as follows: Authority: Title II, Pub. L. 106-265, 114 Stat. 770. Subpart A--General Provisions 0 7. Amend Sec. 839.102 by revising the definition of ``present value factor'' to read as follows: Sec. 839.102 Definitions. * * * * * Present value factor has the same meaning in this subpart as defined in Sec. 831.603 of this chapter. * * * * * PART 841--FEDERAL EMPLOYEES RETIREMENT SYSTEM--GENERAL ADMINSTRATION 0 8. The authority citation for part 841 continues to read as follows: Authority: 5 U.S.C. 8461; Sec. 841.108 also issued under 5 U.S.C. 552a; Secs. 841.110 and 841.111 also issued under 5 U.S.C. 8470(a); subpart D also issued under 5 U.S.C. 8423; Sec. 841.504 also issued under 5 U.S.C. 8422; Sec. 841.507 also issued under section 505 of Pub. L. 99-335; subpart J also issued under 5 U.S.C. 8469; Sec. 841.506 also issued under 5 U.S.C. 7701(b)(2); Sec. 841.508 also issued under section 505 of Pub. L. 99-335; Sec. 841.604 also issued under Title II, Pub. L. 106-265, 114 Stat. 780. Subpart D--Government Costs 0 9. Amend Sec. 841.401 by revising paragraphs (b)(3) and (4), and adding paragraph (b)(5) to read as follows: Sec. 841.401 Purpose and scope. * * * * * (b) * * * (3) Agency appeals of rate determinations; (4) Methodology for determining the amount due from each agency; and (5) Requests for reconsideration of the Supplemental Liability. 0 10. Amend Sec. 841.402 by revising the definition of ``actuary'' to read as follows: Sec. 841.402 Definitions. * * * * * Actuary means a professional who is qualified under actuarial standards of practice in the United States to issue a [[Page 93854]] statement of opinion in regard to defined benefit pension plans. * * * * * 0 11. Amend Sec. 841.403 by revising the introductory text, and paragraphs (b) and (g), and adding paragraph (h) to read as follows: Sec. 841.403 Categories of employees for computation of normal cost percentages. Separate normal cost percentages for FERS, FERS-RAE and FERS-FRAE will be determined for each of the following groups of employees: * * * * * (b) Congressional employees, including members of the Capitol Police; * * * * * (g) Other employees of the United States Postal Service; (h) All other employees. 0 12. Revise Sec. 841.409 to read as follows: Sec. 841.409 Agency right to appeal normal cost percentage. (a) An agency with at least 1,000 employees in the general category of employees or 500 employees in any of the special categories may appeal to the Board the normal cost percentage for that category as applied to that agency. (b) No appeal will be considered by the Board unless the agency files, no later than 6 months after the date of publication of the notice of normal cost percentages under Sec. 841.407, a petition for appeal that meets all the requirements of Sec. 841.410. 0 13. Revise the section heading of Sec. 841.410 to read as follows: Sec. 841.410 Contents of petition for appeal of normal cost percentage. * * * * * 0 14. Revise the section heading of Sec. 841.411 to read as follows: Sec. 841.411 Appeals procedure of normal cost percentage. * * * * * 0 15. Add Sec. 841.414 to subpart D to read as follows: Sec. 841.414 Computation of the supplemental liability. (a) OPM will compute each supplemental liability of the Civil Service Retirement and Disability Fund using demographic factors consistent with those used for the computation of the normal cost percentages under Sec. 841.403. (b) The supplemental liability will be computed based on the economic assumptions determined by the Board for the most recent valuation of the Federal Employees Retirement System. (c) Each supplemental liability will be rounded to the nearest one hundred million dollars. 0 16. Add Sec. 841.415 to subpart D to read as follows: Sec. 841.415 Right to request reconsideration of the supplemental liability. (a) The Secretary of the Treasury or the Postmaster General may request the Board to reconsider a determination of the amount payable with respect to any supplemental liability. (b) No request for reconsideration will be considered by the Board unless the Secretary of the Treasury or the Postmaster General files, no later than 6 months after the date of receipt of the first notice of the amount payable with respect to the supplemental liability, a request for reconsideration that meets all the requirements of Sec. 841.416. 0 17. Add Sec. 841.416 to subpart D to read as follows: Sec. 841.416 Contents of a request for reconsideration of the supplemental liability. (a) To request reconsideration of the amount payable with respect to the supplemental liability, the Secretary of the Treasury or the Postmaster General must file with OPM-- (1) A signed letter of appeal summarizing the basis of the request; and (2) An actuarial report that contains a detailed actuarial analysis of the request. (b) The actuarial report must-- (1) Be signed by an actuary; (2) Specifically present any data and development of assumptions related to the request for reconsideration; (3) Use each of the demographic factors listed in Sec. 841.404; and (4) Use the economic assumptions under Sec. 841.414(b). When a request is based in whole or in part on a pattern of merit salary increases, the report may include an analysis of the economic assumptions concerning salary and wage growth to take into account the combined effect of merit and general wage and salary growth. 0 18. Add Sec. 841.417 to subpart D to read as follows: Sec. 841.417 Reconsideration of the supplemental liability. (a) The Board cannot sustain a request for reconsideration unless the Board finds that-- (1) The data used in the actuarial report required by Sec. 841.416 are sufficient and reliable; (2) The assumptions used in the actuarial report required by Sec. 841.416 are justified; and (3) The difference in the supplemental liability amount is at least 2 percent of the present value of future benefits calculated in OPM's computation of the supplemental liability. (b) If the Board sustains a request for reconsideration of the supplemental liability, OPM will recompute the supplemental liability according to the economic and demographic assumptions recommended by the Board. PART 842--FEDERAL EMPLOYEES RETIREMENT SYSTEM--BASIC ANNUITY 0 19. The authority citation for part 842 continues to read as follows: Authority: 5 U.S.C. 8461(g); Secs. 842.104 and 842.106 also issued under 5 U.S.C. 8461(n); Sec. 842.104 also issued under Secs. 3 and 7(c) of Pub. L. 105-274, 112 Stat. 2419; Sec. 842.105 also issued under 5 U.S.C. 8402(c)(1) and 7701(b)(2); Sec. 842.106 also issued under Sec. 102(e) of Pub. L. 104-8, 109 Stat. 102, as amended by Sec. 153 of Pub. L. 104-134, 110 Stat. 1321-102; Sec. 842.107 also issued under Secs. 11202(f), 11232(e), and 11246(b) of Pub. L. 105-33, 111 Stat. 251, and Sec. 7(b) of Pub. L. 105-274, 112 Stat. 2419; Sec. 842.108 also issued under Sec. 7(e) of Pub. L. 105-274, 112 Stat. 2419; Sec. 842.109 also issued under Sec. 1622(b) of Public Law 104-106, 110 Stat. 515; Sec. 842.208 also issued under Sec. 535(d) of Title V of Division E of Pub. L. 110-161, 121 Stat. 2042; Sec. 842.213 also issued under 5 U.S.C. 8414(b)(1)(B) and Sec. 1313(b)(5) of Pub. L. 107-296, 116 Stat. 2135; Secs. 842.304 and 842.305 also issued under Sec. 321(f) of Pub. L. 107-228, 116 Stat. 1383, Secs. 842.604 and 842.611 also issued under 5 U.S.C. 8417; Sec. 842.607 also issued under 5 U.S.C. 8416 and 8417; Sec. 842.614 also issued under 5 U.S.C. 8419; Sec. 842.615 also issued under 5 U.S.C. 8418; Sec. 842.703 also issued under Sec. 7001(a)(4) of Pub. L. 101-508, 104 Stat. 1388; Sec. 842.707 also issued under Sec. 6001 of Pub. L. 100-203, 101 Stat. 1300; Sec. 842.708 also issued under Sec. 4005 of Pub. L. 101-239, 103 Stat. 2106 and Sec. 7001 of Pub. L. 101-508, 104 Stat. 1388; Subpart H also issued under 5 U.S.C. 1104; Sec. 842.810 also issued under Sec. 636 of Appendix C to Pub. L. 106-554 at 114 Stat. 2763A-164; Sec. 842.811 also issued under Sec. 226(c)(2) of Public Law 108-176, 117 Stat. 2529; Subpart J also issued under Sec. 535(d) of Title V of Division E of Pub. L. 110- 161, 121 Stat. 2042. Subpart F--Survivor Elections 0 20. Amend Sec. 842.602 by revising the definition of ``present value factor'' to read as follows: Sec. 842.602 Definitions. * * * * * Present value factor means the amount of money (earning interest at an assumed rate) required at the time of annuity commencement to fund an annuity that starts at the rate of $1 a month and is payable in monthly installments for the annuitant's lifetime [[Page 93855]] based on mortality rates for annuitants paid from the Civil Service Retirement and Disability Fund; and increases each year at an assumed rate of cost-of-living adjustment. Assumed rates of interest, mortality, and cost-of-living adjustments used in computing the present value are those used by the Board of Actuaries of the Civil Service Retirement System for valuation of the Federal Employees' Retirement System based on dynamic assumptions. The present value factors are unisex factors obtained as a composite of sex-distinct present value factors. Separate present value factors apply for FERS annuities that receive cost-of-living adjustments before the retiree attains age 62, versus FERS annuities that do not receive cost-of-living adjustments before the retiree attains age 62. * * * * * 0 21. Add Sec. 842.616 to subpart F to read as follows: Sec. 842.616 Publication of present value factors. When OPM publishes in the Federal Register notice of normal cost percentages under Sec. 841.407 of this chapter, it will also publish updated present value factors. 0 22. Amend Sec. 842.702 by revising the definition of ``present value factor'' to read as follows: Sec. 842.702 Definitions. * * * * * Present value factor has the same meaning in this subpart as defined in Sec. 842.602. * * * * * PART 847--ELECTIONS OF RETIREMENT COVERAGE BY CURRENT AND FORMER EMPLOYEES OF NONAPPROPRIATED FUND INSTRUMENTALITIES 0 23. The authority citation for part 847 continues to read as follows: Authority: 5 U.S.C. 8332(b)(17) and 8411(b)(6) and sections 1131 and 1132 of Pub. L. 107-107, December 28, 2001, 115 Stat 1242; 5 U.S.C. 8347(a) and 8461(g) and section 1043(b) of Pub. L. 104-106, Div. A, Title X, Feb. 10, 1996, 110 Stat. 434. Subpart B also issued under 5 U.S.C. 8347(q) and 8461(n). Subpart A--General Provisions 0 24. Amend Sec. 847.103(b) by revising the definition of ``actuarial present value'' and adding the definition of ``present value factor'' in alphabetical order as follows: Sec. 847.103 Definitions. * * * * * (b) * * * Actuarial present value means the amount of monthly annuity at time of retirement multiplied by the applicable present value factor. * * * Present value factor has the same meaning in this part as defined in Sec. 842.602. * * * * * Sec. 847.602 [Removed and Reserved] 0 25. Remove and reserve Sec. 847.602. [FR Doc. 2016-30487 Filed 12-21-16; 8:45 am] BILLING CODE 6325-38-P
![Federal Register / Vol. 81, No. 246 / Thursday, December 22, 2016 / Proposed Rules 93855
based on mortality rates for annuitants Actuarial present value means the W12–140, 1200 New Jersey Avenue SE.,
paid from the Civil Service Retirement amount of monthly annuity at time of Washington, DC 20590.
and Disability Fund; and increases each retirement multiplied by the applicable • Hand Delivery: Deliver to Mail
year at an assumed rate of cost-of-living present value factor. address above between 9 a.m. and 5
adjustment. Assumed rates of interest, * * * p.m., Monday through Friday, except
mortality, and cost-of-living adjustments Present value factor has the same Federal holidays.
used in computing the present value are meaning in this part as defined in
those used by the Board of Actuaries of § 842.602. For service information identified in
the Civil Service Retirement System for this NPRM, contact Pratt & Whitney,
* * * * * 400 Main St., East Hartford, CT 06108;
valuation of the Federal Employees’
Retirement System based on dynamic § 847.602 [Removed and Reserved] phone: 860–565–8770; fax: 860–565–
assumptions. The present value factors ■ 25. Remove and reserve § 847.602.
4503. You may view this service
are unisex factors obtained as a [FR Doc. 2016–30487 Filed 12–21–16; 8:45 am] information at the FAA, Engine &
composite of sex-distinct present value BILLING CODE 6325–38–P
Propeller Directorate, 1200 District
factors. Separate present value factors Avenue, Burlington, MA. For
apply for FERS annuities that receive information on the availability of this
cost-of-living adjustments before the material at the FAA, call 781–238–7125.
DEPARTMENT OF TRANSPORTATION
retiree attains age 62, versus FERS Examining the AD Docket
annuities that do not receive cost-of- Federal Aviation Administration
living adjustments before the retiree You may examine the AD docket on
attains age 62. 14 CFR Part 39 the Internet at http://
* * * * * www.regulations.gov by searching for
[Docket No. FAA–2013–0740; Directorate
■ 21. Add § 842.616 to subpart F to read Identifier 2013–NE–24–AD]
and locating Docket No. FAA–2013–
as follows: 0740; or in person at the Docket
RIN 2120–AA64 Management Facility between 9 a.m.
§ 842.616 Publication of present value and 5 p.m., Monday through Friday,
factors. Airworthiness Directives; Pratt & except Federal holidays. The AD docket
When OPM publishes in the Federal Whitney Turbofan Engines contains this proposed AD, the
Register notice of normal cost AGENCY: Federal Aviation regulatory evaluation, any comments
percentages under § 841.407 of this Administration (FAA), DOT. received, and other information. The
chapter, it will also publish updated street address for the Docket Office
ACTION: Notice of proposed rulemaking
present value factors. (phone: 800–647–5527) is in the
(NPRM).
■ 22. Amend § 842.702 by revising the ADDRESSES section. Comments will be
definition of ‘‘present value factor’’ to SUMMARY: We propose to supersede available in the AD docket shortly after
read as follows: Airworthiness Directive (AD) 2014–05– receipt.
§ 842.702 Definitions. 32, which applies to all Pratt & Whitney FOR FURTHER INFORMATION CONTACT:
(PW) PW2037, PW2037D, PW2037M, Brian Kierstead, Aerospace Engineer,
* * * * *
Present value factor has the same PW2040, PW2040D, PW2043, PW2143, Engine Certification Office, FAA, Engine
meaning in this subpart as defined in PW2643, and F117–PW–100 turbofan & Propeller Directorate, 1200 District
§ 842.602. engines. AD 2014–05–32 currently Avenue, Burlington, MA 01803; phone:
requires one-time eddy current 781–238–7772; fax: 781–238–7199;
* * * * * inspection (ECI) of affected engines with email: brian.kierstead@faa.gov.
PART 847—ELECTIONS OF certain diffuser and HPT cases installed.
AD 2014–05–32 also requires a SUPPLEMENTARY INFORMATION:
RETIREMENT COVERAGE BY
CURRENT AND FORMER EMPLOYEES fluorescent-penetrant inspection (FPI) of Comments Invited
OF NONAPPROPRIATED FUND the diffuser case rear flange and the HPT
INSTRUMENTALITIES case front flange. Since we issued AD We invite you to send any written
2014–05–32, the manufacturer relevant data, views, or arguments about
■ 23. The authority citation for part 847 determined through analysis that the this proposed AD. Send your comments
continues to read as follows: inspections required by AD 2014–05–32 to an address listed under the
Authority: 5 U.S.C. 8332(b)(17) and are not adequate to maintain safety. This ADDRESSES section. Include ‘‘Docket No.
8411(b)(6) and sections 1131 and 1132 of proposed AD would add additional FAA–2013–0740; Directorate Identifier
Pub. L. 107–107, December 28, 2001, 115 Stat repetitive, on-wing ECI inspections. We 2013–NE–24–AD’’ at the beginning of
1242; 5 U.S.C. 8347(a) and 8461(g) and are proposing this AD to correct the your comments. We specifically invite
section 1043(b) of Pub. L. 104–106, Div. A, unsafe condition on these products. comments on the overall regulatory,
Title X, Feb. 10, 1996, 110 Stat. 434. Subpart
B also issued under 5 U.S.C. 8347(q) and DATES: We must receive comments on economic, environmental, and energy
8461(n). this proposed AD by February 6, 2017. aspects of this proposed AD. We will
ADDRESSES: You may send comments, consider all comments received by the
Subpart A—General Provisions using the procedures found in 14 CFR closing date and may amend this
11.43 and 11.45, by any of the following proposed AD because of those
■ 24. Amend § 847.103(b) by revising comments.
methods:
Lhorne on DSK30JT082PROD with PROPOSALS
the definition of ‘‘actuarial present
value’’ and adding the definition of • Federal eRulemaking Portal: Go to We will post all comments we
‘‘present value factor’’ in alphabetical http://www.regulations.gov. Follow the receive, without change, to http://
order as follows: instructions for submitting comments. www.regulations.gov, including any
• Fax: 202–493–2251. personal information you provide. We
§ 847.103 Definitions. • Mail: U.S. Department of will also post a report summarizing each
* * * * * Transportation, Docket Operations, M– substantive verbal contact we receive
(b) * * * 30, West Building Ground Floor, Room about this proposed AD.
VerDate Sep<11>2014 15:19 Dec 21, 2016 Jkt 241001 PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 E:\FR\FM\22DEP1.SGM 22DEP1](https://thefederalregister.org/doc/81_FR_94097/page/5.svg)
Document Created: 2016-12-21 23:52:25
Document Modified: 2016-12-21 23:52:25
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Proposed rule. | |
| Dates | We must receive your comments by February 21, 2017. | |
| Contact | Roxann Johnson, (202) 606-0299. | |
| FR Citation | 81 FR 93851 | |
| RIN Number | 3206-AN22 | |
| CFR Citation | 5
CFR
831 5 CFR 839 5 CFR 841 5 CFR 842 5 CFR 847 | |
| CFR Associated | Firefighters; Government Employees; Income Taxes; Intergovernmental Relations; Law Enforcement Officers; Pensions; Reporting and Recordkeeping Requirements; Retirement; Administrative Practice and Procedure; Claims; Employment Taxes; Social Security; Air Traffic Controllers; Disability Benefits and Alimony |
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