Retirement Credit for Certain Government Service Performed Abroad, 50951-50954 [05-17053]
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50951
Rules and Regulations
Federal Register
Vol. 70, No. 166
Monday, August 29, 2005
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
OFFICE OF PERSONNEL
MANAGEMENT
5 CFR Part 842
RIN 3206–AK84
Retirement Credit for Certain
Government Service Performed
Abroad
Office of Personnel
Management.
ACTION: Interim rule with request for
comment.
AGENCY:
SUMMARY: The Office of Personnel
Management (OPM) is issuing interim
regulations to implement a section of
the Foreign Relations Authorization Act,
Fiscal Year 2003 affecting the Federal
Employees Retirement System. These
regulations describe how individuals
who performed certain Government
service at a United States diplomatic
mission, consular post, or other Foreign
Service post abroad after December 31,
1988, and before May 24, 1998, can get
retirement credit for that service under
the Federal Employees’ Retirement
System.
This interim rule is effective
August 29, 2005. We must receive your
comments by October 28, 2005.
ADDRESSES: You may submit comments,
identified by RIN number 3206–AK84,
by any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail: combox@opm.gov. Include
RIN number 3206–AK84 in the subject
line of the message.
• Mail: Mary Ellen Wilson, Manager,
Retirement Group, Office of Personnel
Management; 1900 E Street, NW.,
Washington, DC 20415–3200.
• FAX: (202) 606–0990.
FOR FURTHER INFORMATION CONTACT: Jim
Giuseppe, (202) 606–0299.
DATES:
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Section
321 of Public Law 107–228, 116 Stat.
1380, the Foreign Relations
Authorization Act, Fiscal Year 2003,
allows retirement credit under the
Federal Employees’ Retirement System
(FERS) for certain Government service
performed abroad under a temporary
appointment. Service performed after
December 31, 1988, and before May 24,
1998, under a temporary appointment
pursuant to sections 309 and 311 of the
Foreign Service Act of 1980, may now
be creditable under FERS provided all
of the following conditions set out in
section 321 are satisfied.
• The service must have been
performed at a United States diplomatic
mission, consular post (other than a
consular agency), or other Foreign
Service post abroad.
• The individual who performed the
service must have satisfied all eligibility
requirements under regulations of the
Department of State (as in effect on
September 30, 2002) for a family
member limited non-career appointment
at the time the service was performed.
Individuals not employed by the
Department of State while performing
such service shall be treated as if they
were so employed for the purposes of
this requirement.
• The service would have been
creditable under FERS had it been
performed before 1989 and had the
appropriate service credit deposit been
paid.
• The service cannot otherwise be
creditable under FERS or any other
retirement system for employees of the
United States Government (disregarding
title II of the Social Security Act).
• The service must have totaled 90
days or more.
• The individual who performed the
service must file an application to pay
a deposit for the service no later than 36
months after the effective date of these
regulations, and pay the deposit. The
deposit equals the amount of FERS
employee deductions that would have
been withheld from the individual’s
basic pay had the service been subject
to FERS deductions, plus interest. If the
individual who performed the service is
deceased, any person who is or would
be eligible for a survivor annuity under
FERS based on the service of the
individual can apply for the service
credit and pay this deposit.
• The department or agency where
the individual performed the service
SUPPLEMENTARY INFORMATION:
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must pay a deposit for the service. The
deposit the department or agency owes
equals the FERS Government
contributions that would have been due
had the service been subject to FERS,
plus interest.
These provisions allowing FERS
service credit for certain Government
service performed abroad differ from
other FERS provisions that allow service
credit for service not subject to FERS
retirement deductions in three
important respects. First, they specify a
specific location where the service must
have been performed—at a United
States diplomatic mission, consular
post, or other Foreign Service post
abroad as defined under the Foreign
Service Act of 1980. Second, they
require the application of Department of
State regulations in determining if the
service is creditable. And third, they
require that Government contributions
accompany the deposit that individuals
have to pay for the service. The
department or agency where the
individual performed the service must
pay those Government contributions.
While individuals may have performed
this service at any number of
departments or agencies, including the
Departments of Defense, Commerce, and
Agriculture, and the United States
Agency for International Development,
we believe that most of the individuals
affected by this legislation worked for
the Department of State.
Because of these unique service credit
provisions, we have established a
process for obtaining service credit for
certain Government service performed
abroad that differs from the normal
process used for establishing service
credit for other types of civilian service.
Where normally the Office of Personnel
Management (OPM) determines whether
service is creditable for FERS retirement
purpose, these regulations recognize
that the Department of State is in a
better position than OPM to interpret
the Foreign Service Act and the
Department of State’s own regulations to
determine if the service is creditable.
And where normally the individual
applying for service credit for civilian
service applies to OPM and pays a
deposit to OPM, these regulations
require that the individual apply for
service credit to the department or
agency where the individual performed
the service (the Department of State in
most cases) and pay the deposit to that
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Federal Register / Vol. 70, No. 166 / Monday, August 29, 2005 / Rules and Regulations
department or agency. The department
or agency must then submit the
individual’s deposit to OPM, along with
the Government contributions, so that
OPM receives the full payment for the
service at the same time.
When the Department of State or
other appropriate department or agency
responsible for processing the
application for service credit under
these regulations (hereinafter the
employing entity) receives an
application from an individual for
certain Government service performed
abroad, it must determine if the service
qualifies for service credit under Section
321 of Public Law 107–228. (If the
employing entity is not the Department
of State, it may need to consult with the
Department of State if there are any
questions about whether or not the
service is creditable.) The employing
entity must then compute the amount of
the deposit the individual owes for the
service and notify the individual of the
amount due. It must also compute the
amount of the Government
contributions it owes for the service;
collect the deposit from the individual;
and immediately forward both the
individual’s deposit and the
Government contributions to OPM in a
manner prescribed by OPM. If the
employing entity finds that the service
is not creditable under Section 321 of
Public Law 107–228, it must provide the
individual with a written decision
explaining the reason why the service is
not creditable and explaining the
individual’s rights to appeal the
decision to the Merit Systems Protection
Board (MSPB).
When the employing entity is not the
Department of State, the Department of
State must provide whatever assistance
is necessary to help the employing
entity determine if the service
performed abroad is creditable under
Section 321 of Public Law 107–228. If
the employing entity no longer exists,
the Department of State must assume
most of the employing entity’s duties
related to these regulations. The only
exception is that the Department of
State, when performing these duties for
an employing entity that is no longer in
existence, does not have to forward the
actual Government contributions to
OPM. If the Department of State finds
that the service is not creditable, it must
provide the individual with a written
notice that explains the reason why the
service is not creditable and explains
the individual’s rights to appeal to the
MSPB.
Individuals eligible to make the
deposit must pay the deposit to the
appropriate employing entity in one
lump sum within 180 days of being
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notified of the amount of the deposit.
The employing entity must then forward
the individual’s deposit along with the
Government deposit and all relevant
information relating to the period of
service to OPM in a manner prescribed
by OPM. If the individual making the
deposit is currently receiving a
retirement or survivor annuity, OPM
will recompute the annuity to include
credit for the service and pay the
additional annuity resulting from the
service credit retroactive to the date the
annuity began. If the individual making
the deposit is not currently receiving a
retirement or survivor annuity, OPM
will evaluate whether or not the
individual qualifies to begin receiving
an annuity with the additional service
credit. If an individual becomes eligible
to receive an annuity with the
additional service credit, OPM will send
the individual the appropriate
application for benefits. After the
individual returns the application, OPM
will begin to pay the annuity as of the
earliest date that the annuity could
commence, subject to the commencing
date provisions in chapter 84 of title 5
United States Code.
Therefore, OPM is amending 5 CFR
part 842, subpart C, the subpart
concerning credit for service.
Specifically, subpart C is amended at 5
CFR 842.304 and 842.305.
In § 842.304, paragraph (e) is added
outlining the conditions for crediting
certain Government service performed
abroad.
In § 842.305, paragraph (j) is added
outlining how the individual and
employer deposits for the service should
be processed.
Waiver of Notice of Proposed
Rulemaking
Under section 553(b)(3)(B) and (d)(3)
of title 5, United States Code, I find that
good cause exists for waiving the
general notice of proposed rulemaking
and to make these rules effective in less
than 30 days. The processing of deposits
for certain Government service
performed abroad under these
regulations will affect only a relatively
limited number of qualifying
individuals’ retirement eligibility or
eligibility for survivor benefits, and the
amounts of their retirement or survivor
benefits. We recognize that notice and
comment may be waived when the
agency for good cause finds that notice
and public procedure are impracticable,
unnecessary, or contrary to the public
interest. Publication of a general notice
of proposed rulemaking in this situation
would be contrary to the public interest
because it would unnecessarily and
unreasonably delay the availability of
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the potential benefits of Public Law
107–228, and because no individual or
group will suffer any detriment,
financial or otherwise, because of the
application of this regulation without
notice and comment. The application of
these regulations benefits a specific
group of individuals by revising an
existing regulatory provision that is
contrary to the benefit enacted by the
Congress. The application of this
regulation before public comment is
consistent with the limited interest in
this matter by the general public and in
which the interest of the affected public,
those seeking FERS retirement credit for
certain Government service earned
while working abroad, would be set
back by any unnecessary requirement of
advance notice.
Regulatory Flexibility Act
I certify that this regulation will not
have a significant economic impact on
a substantial number of small entities
because it affects only certain Federal
employees.
Executive Order 12866, Regulatory
Review
This rule has been reviewed by the
Office of Management and Budget in
accordance with Executive Order 12866.
Lists of Subjects in 5 CFR Part 842
Air traffic controllers, Alimony,
Firefighters, Government employees,
Law enforcement officers, Pensions,
Retirement.
U.S. Office of Personnel Management.
Linda M. Springer,
Director.
For the reasons stated in the preamble,
the Office of Personnel Management
amends 5 CFR part 842 as follows:
I
PART 842—FEDERAL EMPLOYEES
RETIREMENT SYSTEM—BASIC
ANNUITY
1. The authority citation for part 842
is revised to read as follows:
I
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
sections 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 section 102(e) of
Pub. L. 104–8, 109 Stat. 102, as amended by
section 153 of Pub. L. 104–134, 110 Stat.
1321–102; Sec. 842.107 also issued under
sections 11202(f), 11232(e), and 11246(b) of
Pub. L. 105–33, 111 Stat. 251, and section
7(b) of Pub. L. 105–274, 112 Stat. 2419; Sec.
842.108 also issued under section 7(e) of Pub.
L. 105–274, 112 Stat. 2419; Sec. 842.213 also
issued under 5 U.S.C. 8414(b)(1)(B) and
section 1313(b)(5) of Pub. L. 107–296, 116
Stat. 2135; Secs. 842.304 and 842.305 also
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issued under section 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 section
7001(a)(4) of Pub. L. 101–508, 104 Stat. 1388;
Sec. 842.707 also issued under section 6001
of Pub. L. 100–203, 101 Stat. 1300; Sec.
842.708 also issued under section 4005 of
Pub. L. 101–239, 103 Stat. 2106 and section
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 section 636 of
Appendix C to Pub. L. 106–554 at 114 Stat.
2763A–164; Sec. 842.811 also issued under
section 226(c)(2) of Public Law 108–176, 117
Stat. 2529.
Subpart C—Credit for Service
2. In § 842.304, add paragraph (e) to
read as follows:
I
§ 842.304
Civilian service.
*
*
*
*
*
(e) Certain Government service
performed abroad after December 31,
1988, and before May 24, 1998. (1)
Definition. In this section, certain
Government service performed abroad is
service performed at a United States
diplomatic mission, consular post (other
than a consular agency), or other
Foreign Service post abroad under a
temporary appointment pursuant to
sections 309 and 311 of the Foreign
Service Act of 1980 (22 U.S.C. 3949 and
3951).
(2) Conditions for Creditability.
Service credit is allowed under section
321 of Pub. L. 107–228 for certain
Government service performed abroad
after December 31, 1988, and before
May 24, 1998, provided—
(i) The service in the aggregate totaled
90 days or more;
(ii) The individual performing the
service would have satisfied all
eligibility requirements under
regulations of the Department of State
(as in effect on September 30, 2002) for
a family member limited noncareer
appointment (within the meaning of
such regulations, as in effect on
September 30, 2002) at the time the
service was performed, except that, in
applying this paragraph, an individual
not employed by the Department of
State while performing the service shall
be treated as if then so employed;
(iii) The service would have been
creditable under FERS had it been
performed before 1989 and had the
deposit requirements of § 842.305 been
met;
(iv) The service is not otherwise
creditable under FERS or any other
retirement system for employees of the
U.S. Government (disregarding title II of
the Social Security Act);
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(v) The individual applying for the
service credit submits a written
application to make a deposit with the
department or agency where the service
was performed, and completes the
deposit, in accordance with § 842.305(j);
and
(vi) The department or agency where
the service was performed remits
Government contributions for the
service to OPM in accordance with
§ 842.305(j).
(3) Departments or agencies no longer
in existence. If the department or agency
where the individual performed certain
Government service abroad no longer
exists, the Department of State must
process applications for service credit
under this section. Government
contributions for the service will not
need to be remitted to OPM.
I 3. In § 842.305, add paragraph (j) to
read as follows:
§ 842.305
Deposits for civilian service.
*
*
*
*
*
(j) Certain Government service
performed abroad after December 31,
1988, and before May 24, 1998.
(1) Eligibility-current and former
employees, and retirees. A current or
former employee, or a retiree who
performed certain Government service
abroad described in § 842.304(e) may
make a deposit for such service, in a
form prescribed by OPM.
(2) Eligibility-survivors. A survivor of
a current employee, former employee, or
a retiree eligible to make a deposit
under paragraph (j)(1) of this section
may make a deposit under this section
if the current or former employee, or
retiree is deceased and the survivor is
eligible or would be eligible for a
survivor annuity under FERS based on
the service of the current or former
employee, or retiree.
(3) Filing of deposit application. An
individual eligible to make a deposit
under paragraphs (j)(1) and (2) of this
section for service described in
§ 842.304(e) must submit a written
application to make a deposit for such
service with the appropriate office in
the department or agency where such
service was performed. If the
department or agency where the service
was performed no longer exists, the
individual must submit the written
application to the appropriate office in
the Department of State.
(4) Time limit for filing application.
An application to make a deposit under
this section must be submitted on or
before August 29, 2008.
(5) Amount of deposit. (i) A deposit
under this section must be computed
using distinct periods of service. For the
purpose of this section, a distinct period
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50953
of service means a period of service not
interrupted by a break in service of more
than 3 days. A deposit may be made for
any or all distinct periods of service.
(ii) The amount of deposit under this
section equals the amount of deductions
from basic pay that would have been
required under section 8422 of title 5,
United States Code, if at the time the
service was performed the service had
been subject to FERS deductions under
that section, plus interest.
(6) Forms of deposit. A deposit under
this section must be made as a single
lump sum within 180 days of being
notified of the deposit amount.
(7) Processing deposit applications
and payments. (i) The department or
agency where the service described in
§ 842.304(e) was performed must
process the deposit applications and
payments under this section. If the
department or agency where the service
was performed no longer exists, the
Department of State must process the
deposit applications and payments
under this section.
(ii) Whenever requested, the
Department of State must assist the
department or agency responsible for
processing deposit applications under
this section determine whether the
application meets the requirements of
§ 842.304(e ).
(iii) Upon receiving a deposit
application under this section, the
department or agency must determine
whether the application meets the
requirements of § 842.304(e); compute
the deposit, including interest; and
advise the applicant of the total amount
of deposit due.
(iv) The department or agency must
establish a deposit account showing the
total amount due.
(v) When it receives an individual’s
payment for the service, the department
or agency must remit the payment to
OPM immediately for deposit to the
Civil Service Retirement and Disability
Fund in accordance with instructions
issued by OPM.
(vi) Once a deposit has been paid in
full or otherwise closed out, the
department or agency must submit the
documentation pertaining to the deposit
to OPM in accordance with instructions
issued by OPM.
(8) Government contributions. (i) The
department or agency where service
described in § 842.304(e) was performed
must pay Government contributions for
each period of service covered by a
deposit under this section.
(ii) The amount of contributions
under this section equals the amount of
Government contributions which would
have been required for the service under
section 8423 of title 5, United States
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Code, if the service had been covered
under chapter 84 of title 5, United States
Code, plus interest.
(iii) The department or agency must
remit the amount of Government
contributions under this section to OPM
at the same time it remits the employee
deposit for this service to OPM in
accordance with instructions issued by
OPM.
(9) Interest. Interest must be
computed as described under
paragraphs (2) and (3) of 5 U.S.C.
8334(e). Interest must be computed for
each distinct period of service from the
midpoint of each distinct period of
service. The interest accrues annually
on the outstanding deposit and is
compounded annually, until the deposit
is paid.
(10) Effect of deposit. An individual
completing a deposit under this section
will receive retirement credit for the
service covered by the deposit when
OPM receives certification that the
deposit has been paid in full, and the
deposit payment and agency
contributions are remitted to the Civil
Service Retirement and Disability Fund.
(11) Appeal rights. When the
department or agency processing an
application for deposit under this
section determines that the individual is
not eligible to make a deposit for a
period of service, it must provide the
individual with a written decision
explaining the reason for the decision
and explaining the individual’s right to
appeal the decision to the Merit Systems
Protection Board.
[FR Doc. 05–17053 Filed 8–26–05; 8:45 am]
BILLING CODE 6325–39–P
DEPARTMENT OF HOMELAND
SECURITY
U.S. Citizenship and Immigration
Services
8 CFR Part 103
[CIS No. 2245–02 and Docket No. DHS–
2004–0021]
RIN 1615–AA88
Adjustment of the Appeal and Motion
Fees To Recover Full Costs
U.S. Citizenship and
Immigration Services, Department of
Homeland Security.
ACTION: Final rule.
AGENCY:
I. Introduction
SUMMARY: This rule adjusts the fee for
filing appeals of, and motions to reopen
or reconsider, any decision under the
immigration laws in any type of
proceeding other than those described at
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15:16 Aug 26, 2005
Jkt 205001
8 CFR 1003.1(b), over which the Board
of Immigration Appeals (BIA) in the
Department of Justice (DOJ) has
appellate jurisdiction. The rule also
adds a non-substantive modification to
the language of the fee regulation in
order to enhance clarity.
This rule applies to fees for appeals
and motions relating to the types of
cases under the jurisdiction of the
Administrative Appeals Office (AAO).
The AAO is an appellate office of U.S.
Citizenship and Immigration Services
(USCIS). The BIA remains a component
of DOJ, and has appellate jurisdiction
over the orders of immigration judges,
denials of relative immigrant visa
petitions (Form I–130), and decisions
involving administrative fines and
penalties. This rule does not apply to,
or affect in any manner, the fees
associated with the BIA. Appeals from
denials of all other types of
applications, such as Applications for
Temporary Protected Status (Form I–
821), and petitions, such as Petitions for
Amerasian, Widow(er), or Special
Immigrant (Form I–360), and any
subsequently filed motions, are under
the jurisdiction of the AAO.
The fees, deposited into the
Immigration Examinations Fee Account
(IEFA), are adjusted from $110 to $385
to recover the full costs associated with
the processing of an appeal, motion to
reopen or motion to reconsider. Federal
statutes authorize USCIS to establish
and collect fees to recover the full cost
of processing immigration benefit
applications, rather than supporting
these services with tax revenue.
Finally, the rule replaces a reference
in the regulations to an obsolete form
with a reference to the revised version
of that form.
DATES: Effective Date: This final rule is
effective September 28, 2005.
Compliance Date: Applications
mailed, postmarked, or otherwise filed,
on or after September 28, 2005 require
the new fee.
FOR FURTHER INFORMATION CONTACT: Paul
Schlesinger, Director, Office of Budget,
U.S. Citizenship and Immigration
Services, Department of Homeland
Security, 20 Massachusetts Avenue,
NW., 4th Floor, Washington, DC 20529,
telephone (202) 272–1930.
SUPPLEMENTARY INFORMATION:
USCIS published a proposed rule in
the Federal Register on November 30,
2004, at 69 FR 69546, to adjust the fees
for processing of an appeal, motion to
reopen or motion to reconsider. The
proposed rule was published with a 30day comment period, which closed on
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December 30, 2004. USCIS received 14
comments pertaining to the adjustment
of the fees for processing of an appeal
or motion to reopen or motion to
reconsider.
Comments were received from 13
concerned individuals and one
association. All of the relevant
comments were carefully considered
before preparing this final rule. USCIS’
responses to the concerns raised by the
commenters primarily are based upon
the November 2002 fee review report
provided by KMPG Consulting.
The following is a discussion of the
comments received for the November
30, 2004 proposed rule and USCIS’
response.
II. Summary of Comments
A. Why Is the Fee Increase Necessary?
Eight comments were received
expressing dissatisfaction with the size
of the fee increase. Three commenters
also stated that the increase in appeals
and motions of 12% over the last 10
years does not justify the proposed
increased fees. USCIS notes, however,
that the fee increase is not based upon
the 12% increase in the filing of
motions and appeals. While the fees for
other applications have increased more
than threefold during this time, the
appeal and motion fee has remained the
same.
The increase in fees is necessary so
that USCIS can recover the full costs of
processing appeals and motions.
Three commenters asserted that the
increase in fees should also increase the
timeliness and quality of the decisions
rendered. Similarly, one commenter
suggested that the AAO be added to the
USCIS backlog reduction plan, while
another indicated support for the
proposed increase with the stipulation
that the increase be used to fund
additional resources for the AAO.
USCIS agrees with commenters that
the timeliness and quality of the
decisions is important, as are increases
in personnel and resources and notes
that such considerations were taken into
account during the fee review. In
response to the commenter’s suggestion
that the AAO be added to the USCIS
backlog reduction plan, we note that the
AAO has been a part of the backlog
reduction plan since its inception. As
indicated in the proposed rule, based on
the increase in motion and appeal
filings from 1993 to 2002, a fee review
was conducted by a consulting firm to
determine the fee necessary to ensure
that USCIS was able to collect the full
cost for processing motions and appeals.
According to Office of Management and
Budget (OMB) Circular A–25, the ‘‘full
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]]>Agencies
[Federal Register Volume 70, Number 166 (Monday, August 29, 2005)]
[Rules and Regulations]
[Pages 50951-50954]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-17053]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
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Federal Register / Vol. 70, No. 166 / Monday, August 29, 2005 / Rules
and Regulations
[[Page 50951]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 842
RIN 3206-AK84
Retirement Credit for Certain Government Service Performed Abroad
AGENCY: Office of Personnel Management.
ACTION: Interim rule with request for comment.
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SUMMARY: The Office of Personnel Management (OPM) is issuing interim
regulations to implement a section of the Foreign Relations
Authorization Act, Fiscal Year 2003 affecting the Federal Employees
Retirement System. These regulations describe how individuals who
performed certain Government service at a United States diplomatic
mission, consular post, or other Foreign Service post abroad after
December 31, 1988, and before May 24, 1998, can get retirement credit
for that service under the Federal Employees' Retirement System.
DATES: This interim rule is effective August 29, 2005. We must receive
your comments by October 28, 2005.
ADDRESSES: You may submit comments, identified by RIN number 3206-AK84,
by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: combox@opm.gov. Include RIN number 3206-AK84 in
the subject line of the message.
Mail: Mary Ellen Wilson, Manager, Retirement Group, Office
of Personnel Management; 1900 E Street, NW., Washington, DC 20415-3200.
FAX: (202) 606-0990.
FOR FURTHER INFORMATION CONTACT: Jim Giuseppe, (202) 606-0299.
SUPPLEMENTARY INFORMATION: Section 321 of Public Law 107-228, 116 Stat.
1380, the Foreign Relations Authorization Act, Fiscal Year 2003, allows
retirement credit under the Federal Employees' Retirement System (FERS)
for certain Government service performed abroad under a temporary
appointment. Service performed after December 31, 1988, and before May
24, 1998, under a temporary appointment pursuant to sections 309 and
311 of the Foreign Service Act of 1980, may now be creditable under
FERS provided all of the following conditions set out in section 321
are satisfied.
The service must have been performed at a United States
diplomatic mission, consular post (other than a consular agency), or
other Foreign Service post abroad.
The individual who performed the service must have
satisfied all eligibility requirements under regulations of the
Department of State (as in effect on September 30, 2002) for a family
member limited non-career appointment at the time the service was
performed. Individuals not employed by the Department of State while
performing such service shall be treated as if they were so employed
for the purposes of this requirement.
The service would have been creditable under FERS had it
been performed before 1989 and had the appropriate service credit
deposit been paid.
The service cannot otherwise be creditable under FERS or
any other retirement system for employees of the United States
Government (disregarding title II of the Social Security Act).
The service must have totaled 90 days or more.
The individual who performed the service must file an
application to pay a deposit for the service no later than 36 months
after the effective date of these regulations, and pay the deposit. The
deposit equals the amount of FERS employee deductions that would have
been withheld from the individual's basic pay had the service been
subject to FERS deductions, plus interest. If the individual who
performed the service is deceased, any person who is or would be
eligible for a survivor annuity under FERS based on the service of the
individual can apply for the service credit and pay this deposit.
The department or agency where the individual performed
the service must pay a deposit for the service. The deposit the
department or agency owes equals the FERS Government contributions that
would have been due had the service been subject to FERS, plus
interest.
These provisions allowing FERS service credit for certain
Government service performed abroad differ from other FERS provisions
that allow service credit for service not subject to FERS retirement
deductions in three important respects. First, they specify a specific
location where the service must have been performed--at a United States
diplomatic mission, consular post, or other Foreign Service post abroad
as defined under the Foreign Service Act of 1980. Second, they require
the application of Department of State regulations in determining if
the service is creditable. And third, they require that Government
contributions accompany the deposit that individuals have to pay for
the service. The department or agency where the individual performed
the service must pay those Government contributions. While individuals
may have performed this service at any number of departments or
agencies, including the Departments of Defense, Commerce, and
Agriculture, and the United States Agency for International
Development, we believe that most of the individuals affected by this
legislation worked for the Department of State.
Because of these unique service credit provisions, we have
established a process for obtaining service credit for certain
Government service performed abroad that differs from the normal
process used for establishing service credit for other types of
civilian service. Where normally the Office of Personnel Management
(OPM) determines whether service is creditable for FERS retirement
purpose, these regulations recognize that the Department of State is in
a better position than OPM to interpret the Foreign Service Act and the
Department of State's own regulations to determine if the service is
creditable. And where normally the individual applying for service
credit for civilian service applies to OPM and pays a deposit to OPM,
these regulations require that the individual apply for service credit
to the department or agency where the individual performed the service
(the Department of State in most cases) and pay the deposit to that
[[Page 50952]]
department or agency. The department or agency must then submit the
individual's deposit to OPM, along with the Government contributions,
so that OPM receives the full payment for the service at the same time.
When the Department of State or other appropriate department or
agency responsible for processing the application for service credit
under these regulations (hereinafter the employing entity) receives an
application from an individual for certain Government service performed
abroad, it must determine if the service qualifies for service credit
under Section 321 of Public Law 107-228. (If the employing entity is
not the Department of State, it may need to consult with the Department
of State if there are any questions about whether or not the service is
creditable.) The employing entity must then compute the amount of the
deposit the individual owes for the service and notify the individual
of the amount due. It must also compute the amount of the Government
contributions it owes for the service; collect the deposit from the
individual; and immediately forward both the individual's deposit and
the Government contributions to OPM in a manner prescribed by OPM. If
the employing entity finds that the service is not creditable under
Section 321 of Public Law 107-228, it must provide the individual with
a written decision explaining the reason why the service is not
creditable and explaining the individual's rights to appeal the
decision to the Merit Systems Protection Board (MSPB).
When the employing entity is not the Department of State, the
Department of State must provide whatever assistance is necessary to
help the employing entity determine if the service performed abroad is
creditable under Section 321 of Public Law 107-228. If the employing
entity no longer exists, the Department of State must assume most of
the employing entity's duties related to these regulations. The only
exception is that the Department of State, when performing these duties
for an employing entity that is no longer in existence, does not have
to forward the actual Government contributions to OPM. If the
Department of State finds that the service is not creditable, it must
provide the individual with a written notice that explains the reason
why the service is not creditable and explains the individual's rights
to appeal to the MSPB.
Individuals eligible to make the deposit must pay the deposit to
the appropriate employing entity in one lump sum within 180 days of
being notified of the amount of the deposit. The employing entity must
then forward the individual's deposit along with the Government deposit
and all relevant information relating to the period of service to OPM
in a manner prescribed by OPM. If the individual making the deposit is
currently receiving a retirement or survivor annuity, OPM will
recompute the annuity to include credit for the service and pay the
additional annuity resulting from the service credit retroactive to the
date the annuity began. If the individual making the deposit is not
currently receiving a retirement or survivor annuity, OPM will evaluate
whether or not the individual qualifies to begin receiving an annuity
with the additional service credit. If an individual becomes eligible
to receive an annuity with the additional service credit, OPM will send
the individual the appropriate application for benefits. After the
individual returns the application, OPM will begin to pay the annuity
as of the earliest date that the annuity could commence, subject to the
commencing date provisions in chapter 84 of title 5 United States Code.
Therefore, OPM is amending 5 CFR part 842, subpart C, the subpart
concerning credit for service. Specifically, subpart C is amended at 5
CFR 842.304 and 842.305.
In Sec. 842.304, paragraph (e) is added outlining the conditions
for crediting certain Government service performed abroad.
In Sec. 842.305, paragraph (j) is added outlining how the
individual and employer deposits for the service should be processed.
Waiver of Notice of Proposed Rulemaking
Under section 553(b)(3)(B) and (d)(3) of title 5, United States
Code, I find that good cause exists for waiving the general notice of
proposed rulemaking and to make these rules effective in less than 30
days. The processing of deposits for certain Government service
performed abroad under these regulations will affect only a relatively
limited number of qualifying individuals' retirement eligibility or
eligibility for survivor benefits, and the amounts of their retirement
or survivor benefits. We recognize that notice and comment may be
waived when the agency for good cause finds that notice and public
procedure are impracticable, unnecessary, or contrary to the public
interest. Publication of a general notice of proposed rulemaking in
this situation would be contrary to the public interest because it
would unnecessarily and unreasonably delay the availability of the
potential benefits of Public Law 107-228, and because no individual or
group will suffer any detriment, financial or otherwise, because of the
application of this regulation without notice and comment. The
application of these regulations benefits a specific group of
individuals by revising an existing regulatory provision that is
contrary to the benefit enacted by the Congress. The application of
this regulation before public comment is consistent with the limited
interest in this matter by the general public and in which the interest
of the affected public, those seeking FERS retirement credit for
certain Government service earned while working abroad, would be set
back by any unnecessary requirement of advance notice.
Regulatory Flexibility Act
I certify that this regulation will not have a significant economic
impact on a substantial number of small entities because it affects
only certain Federal employees.
Executive Order 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with Executive Order 12866.
Lists of Subjects in 5 CFR Part 842
Air traffic controllers, Alimony, Firefighters, Government
employees, Law enforcement officers, Pensions, Retirement.
U.S. Office of Personnel Management.
Linda M. Springer,
Director.
0
For the reasons stated in the preamble, the Office of Personnel
Management amends 5 CFR part 842 as follows:
PART 842--FEDERAL EMPLOYEES RETIREMENT SYSTEM--BASIC ANNUITY
0
1. The authority citation for part 842 is revised 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
sections 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 section 102(e) of Pub. L. 104-8, 109 Stat. 102, as
amended by section 153 of Pub. L. 104-134, 110 Stat. 1321-102; Sec.
842.107 also issued under sections 11202(f), 11232(e), and 11246(b)
of Pub. L. 105-33, 111 Stat. 251, and section 7(b) of Pub. L. 105-
274, 112 Stat. 2419; Sec. 842.108 also issued under section 7(e) of
Pub. L. 105-274, 112 Stat. 2419; Sec. 842.213 also issued under 5
U.S.C. 8414(b)(1)(B) and section 1313(b)(5) of Pub. L. 107-296, 116
Stat. 2135; Secs. 842.304 and 842.305 also
[[Page 50953]]
issued under section 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 section 7001(a)(4) of Pub. L.
101-508, 104 Stat. 1388; Sec. 842.707 also issued under section 6001
of Pub. L. 100-203, 101 Stat. 1300; Sec. 842.708 also issued under
section 4005 of Pub. L. 101-239, 103 Stat. 2106 and section 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 section 636 of Appendix
C to Pub. L. 106-554 at 114 Stat. 2763A-164; Sec. 842.811 also
issued under section 226(c)(2) of Public Law 108-176, 117 Stat.
2529.
Subpart C--Credit for Service
0
2. In Sec. 842.304, add paragraph (e) to read as follows:
Sec. 842.304 Civilian service.
* * * * *
(e) Certain Government service performed abroad after December 31,
1988, and before May 24, 1998. (1) Definition. In this section, certain
Government service performed abroad is service performed at a United
States diplomatic mission, consular post (other than a consular
agency), or other Foreign Service post abroad under a temporary
appointment pursuant to sections 309 and 311 of the Foreign Service Act
of 1980 (22 U.S.C. 3949 and 3951).
(2) Conditions for Creditability. Service credit is allowed under
section 321 of Pub. L. 107-228 for certain Government service performed
abroad after December 31, 1988, and before May 24, 1998, provided--
(i) The service in the aggregate totaled 90 days or more;
(ii) The individual performing the service would have satisfied all
eligibility requirements under regulations of the Department of State
(as in effect on September 30, 2002) for a family member limited
noncareer appointment (within the meaning of such regulations, as in
effect on September 30, 2002) at the time the service was performed,
except that, in applying this paragraph, an individual not employed by
the Department of State while performing the service shall be treated
as if then so employed;
(iii) The service would have been creditable under FERS had it been
performed before 1989 and had the deposit requirements of Sec. 842.305
been met;
(iv) The service is not otherwise creditable under FERS or any
other retirement system for employees of the U.S. Government
(disregarding title II of the Social Security Act);
(v) The individual applying for the service credit submits a
written application to make a deposit with the department or agency
where the service was performed, and completes the deposit, in
accordance with Sec. 842.305(j); and
(vi) The department or agency where the service was performed
remits Government contributions for the service to OPM in accordance
with Sec. 842.305(j).
(3) Departments or agencies no longer in existence. If the
department or agency where the individual performed certain Government
service abroad no longer exists, the Department of State must process
applications for service credit under this section. Government
contributions for the service will not need to be remitted to OPM.
0
3. In Sec. 842.305, add paragraph (j) to read as follows:
Sec. 842.305 Deposits for civilian service.
* * * * *
(j) Certain Government service performed abroad after December 31,
1988, and before May 24, 1998.
(1) Eligibility-current and former employees, and retirees. A
current or former employee, or a retiree who performed certain
Government service abroad described in Sec. 842.304(e) may make a
deposit for such service, in a form prescribed by OPM.
(2) Eligibility-survivors. A survivor of a current employee, former
employee, or a retiree eligible to make a deposit under paragraph
(j)(1) of this section may make a deposit under this section if the
current or former employee, or retiree is deceased and the survivor is
eligible or would be eligible for a survivor annuity under FERS based
on the service of the current or former employee, or retiree.
(3) Filing of deposit application. An individual eligible to make a
deposit under paragraphs (j)(1) and (2) of this section for service
described in Sec. 842.304(e) must submit a written application to make
a deposit for such service with the appropriate office in the
department or agency where such service was performed. If the
department or agency where the service was performed no longer exists,
the individual must submit the written application to the appropriate
office in the Department of State.
(4) Time limit for filing application. An application to make a
deposit under this section must be submitted on or before August 29,
2008.
(5) Amount of deposit. (i) A deposit under this section must be
computed using distinct periods of service. For the purpose of this
section, a distinct period of service means a period of service not
interrupted by a break in service of more than 3 days. A deposit may be
made for any or all distinct periods of service.
(ii) The amount of deposit under this section equals the amount of
deductions from basic pay that would have been required under section
8422 of title 5, United States Code, if at the time the service was
performed the service had been subject to FERS deductions under that
section, plus interest.
(6) Forms of deposit. A deposit under this section must be made as
a single lump sum within 180 days of being notified of the deposit
amount.
(7) Processing deposit applications and payments. (i) The
department or agency where the service described in Sec. 842.304(e)
was performed must process the deposit applications and payments under
this section. If the department or agency where the service was
performed no longer exists, the Department of State must process the
deposit applications and payments under this section.
(ii) Whenever requested, the Department of State must assist the
department or agency responsible for processing deposit applications
under this section determine whether the application meets the
requirements of Sec. 842.304(e ).
(iii) Upon receiving a deposit application under this section, the
department or agency must determine whether the application meets the
requirements of Sec. 842.304(e); compute the deposit, including
interest; and advise the applicant of the total amount of deposit due.
(iv) The department or agency must establish a deposit account
showing the total amount due.
(v) When it receives an individual's payment for the service, the
department or agency must remit the payment to OPM immediately for
deposit to the Civil Service Retirement and Disability Fund in
accordance with instructions issued by OPM.
(vi) Once a deposit has been paid in full or otherwise closed out,
the department or agency must submit the documentation pertaining to
the deposit to OPM in accordance with instructions issued by OPM.
(8) Government contributions. (i) The department or agency where
service described in Sec. 842.304(e) was performed must pay Government
contributions for each period of service covered by a deposit under
this section.
(ii) The amount of contributions under this section equals the
amount of Government contributions which would have been required for
the service under section 8423 of title 5, United States
[[Page 50954]]
Code, if the service had been covered under chapter 84 of title 5,
United States Code, plus interest.
(iii) The department or agency must remit the amount of Government
contributions under this section to OPM at the same time it remits the
employee deposit for this service to OPM in accordance with
instructions issued by OPM.
(9) Interest. Interest must be computed as described under
paragraphs (2) and (3) of 5 U.S.C. 8334(e). Interest must be computed
for each distinct period of service from the midpoint of each distinct
period of service. The interest accrues annually on the outstanding
deposit and is compounded annually, until the deposit is paid.
(10) Effect of deposit. An individual completing a deposit under
this section will receive retirement credit for the service covered by
the deposit when OPM receives certification that the deposit has been
paid in full, and the deposit payment and agency contributions are
remitted to the Civil Service Retirement and Disability Fund.
(11) Appeal rights. When the department or agency processing an
application for deposit under this section determines that the
individual is not eligible to make a deposit for a period of service,
it must provide the individual with a written decision explaining the
reason for the decision and explaining the individual's right to appeal
the decision to the Merit Systems Protection Board.
[FR Doc. 05-17053 Filed 8-26-05; 8:45 am]
BILLING CODE 6325-39-P
