Electronic Retirement Processing, 14233-14236 [2013-04965]
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14233
Proposed Rules
Federal Register
Vol. 78, No. 43
Tuesday, March 5, 2013
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.
OFFICE OF PERSONNEL
MANAGEMENT
5 CFR Part 850
RIN 3206–AM45
Electronic Retirement Processing
Office of Personnel
Management.
ACTION: Proposed rule.
emcdonald on DSK67QTVN1PROD with PROPOSALS
AGENCY:
SUMMARY: Pursuant to the President’s
January 18, 2011, Executive Order
13563—Improving Regulation and
Regulatory Review, published in the
Federal Register, the Office of Personnel
Management (OPM) undertook a review
of our regulations, to streamline and
revise this part so that it better serves
OPM’s ongoing modernization of the
processing of benefits under the Civil
Service Retirement System (CSRS), the
Federal Employees’ Retirement System
(FERS), the Federal Employees’ Group
Life Insurance (FEGLI), the Federal
Employees Health Benefits (FEHB), and
the Retired Federal Employee Health
Benefits (RFEHB) Programs. OPM
proposes these amendments to ensure
the rule reflects the electronic
recordkeeping and automated
retirement processing improvements
being deployed by OPM, agencies, and
Shared Service Centers under OPM’s
Human Resources Line of Business.
These amendments are also being
proposed to provide OPM with the
flexibility to implement further
improvements in automated retirement
processing, recordkeeping, and
electronic submission of forms and
retirement applications as OPM’s
technological initiatives reach
completion.
DATES: We must receive your comments
by May 6, 2013.
ADDRESSES: You may submit comments,
identified by docket number and/or RIN
number 3206–AM54, by any of the
following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
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• Email: combox@opm.gov. Include
RIN number 3206–AM45 in the subject
line of the message.
• Mail: John Panagakos, Retirement
Policy, Retirement Services, Office of
Personnel Management, 1900 E. Street
NW., Washington, DC 20415–3200.
FOR FURTHER INFORMATION CONTACT:
Roxann Johnson or Kristine Prentice,
(202) 606–0299.
SUPPLEMENTARY INFORMATION: OPM
proposes to amend part 850 of title 5,
Code of Federal Regulations, by
updating the regulations previously
published at 72 FR 73573 (December 28,
2007). OPM is proceeding with its
efforts to modernize its retirement
processing systems and, therefore, is
proposing these changes so that part 850
better reflects the automated systems
OPM has developed and to afford
flexibility in developing and adopting
automated technologies that improve
the quality and timeliness of retirement,
health, and life insurance benefits
processing.
To assist in meeting the ongoing
objective to modernize the processing of
employee and retirement benefits, we
have removed references to OPM’s
‘‘Retirement Systems Modernization’’
(RSM) initiative so that part 850 reflects
OPM’s current efforts in modernizing
these systems. For that reason, OPM
proposes renaming part 850 ‘‘Electronic
Retirement Processing.’’ This proposed
rule would also amend §§ 850.101 and
850.102 by removing specific references
to RSM and the electronic retirement
and insurance processing system so that
these subsections better reflect OPM’s
current modernization efforts and
objectives. The proposed rule adds
language in § 850.101(a) to clarify that
automated technologies implemented to
improve the quality and timeliness of
retirement, health, and life insurance
benefits processing must be accessible
to people with disabilities as required
by section 508 of the Rehabilitation Act,
29 U.S.C. 794(d).
The proposed rule would add
definitions within § 850.103 that
describe specific databases, electronic
records, and processes OPM has
developed, utilized, or is in the process
of implementing since part 850 was first
issued in 2007. Specifically, we have
included definitions of OPM’s
Electronic Document Management
System, the Electronic Official
Personnel Record Folder, the Electronic
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Individual Retirement Record, the
Electronic Retirement Record, and the
Retirement Data Repository.
The proposed rule also revises
language at § 850.106(a)(4) to clarify that
when there are regulatory requirements
under CSRS, FERS, FEGLI, FEHB or
RFEHB that require a signature be
notarized, the notarization requirement
may be satisfied if the notary public or
other official’s signature is attached to,
or logically associated with, all records
necessary to meet the prescribed
regulations. Additionally, we have
added language in the proposed rule to
clarify that a person making an
electronic signature must be in the
physical presence of a notary or other
official. However, the proposed rule
would allow the Director to issue
directives allowing for virtual presence
if the procedures used by the notary or
official (such as audio-video
conferencing) have safeguards
equivalent to the physical presence of
the person signing.
We also propose removing the
references to notice requirements under
§§ 850.201(c) and 850.203(b). These
requirements were included in part 850
to accommodate specific processes
designed for the previous RSM effort.
However, upon review, OPM has
determined that under future retirement
processes, OPM’s standard
informational material provided to
annuitants and OPM’s annual notices,
which include information to
annuitants regarding their postretirement survivor election rights and
annuity Cost-of-Living Adjustments,
provide sufficient information to
annuitants to satisfy the purpose of the
notice requirements under §§ 850.201(c)
and 850.203(b).
The proposed rule would also add
specific references at § 850.301 to the
Electronic Individual Retirement
Record. These electronic record
equivalents for the hardcopy based
Individual Retirement Record (SF 2806
or SF 3100) are, or will be, provided to
OPM by agencies and Shared Service
Centers through the electronic data
feeds for storage in OPM’s Retirement
Data Repository databases. Section
850.301 would also be amended to add
a reference to OPM’s Electronic
Document Management System, which
is a database of electronic images of
hardcopy documents imaged and stored
during OPM’s RSM initiative.
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Federal Register / Vol. 78, No. 43 / Tuesday, March 5, 2013 / Proposed Rules
Additionally, we propose removing
subsection (c) from section 850.301,
which requires OPM to retain
documents in accordance with
requirements under title 44, United
States Code, after they have been
imaged or converted to electronic
records. Because title 44, United States
Code, provides the requirements federal
agencies must follow in retaining
documents after they have been
converted to electronic records, the
additional requirements noted under
§ 850.301(c) regarding retention are
unnecessary.
Finally, OPM has received many
requests from agencies to allow them
the ability to submit electronically
notices of law enforcement officer,
firefighter, or nuclear materials
retirement coverage required by
§§ 831.811(a), 831.911(a), 842.808(a), or
842.910(a). To accommodate these
requests, we have included instructions
under § 850.401 on how to submit these
notices electronically and propose
amending this section to require
agencies and other entities to use this
method when submitting future notices.
Executive Order 13563 and Executive
Order 12866
The Office of Management and Budget
has reviewed this rule in accordance
with E.O. 13563 and E.O. 12866.
Regulatory Flexibility Act
I certify that this regulation will not
have a significant economic impact on
a substantial number of small entities
because the purpose of this regulation is
to assist in facilitating OPM’s ongoing
modernization of the processing of
benefits under CSRS, FERS, FEGLI,
FEHB, and RFEHB.
List of Subjects in 5 CFR Parts 850
Administrative practice and
procedure, Air traffic controllers,
Alimony, Claims, Disability benefits,
Firefighters, Government employees,
Income taxes, Intergovernmental
relations, Law enforcement officers,
Pensions, Reporting and recordkeeping
requirements, Retirement.
emcdonald on DSK67QTVN1PROD with PROPOSALS
Office of Personnel Management.
John Berry,
Director.
For the reasons discussed in the
preamble, the Office of Personnel
Management is proposing to amend 5
CFR parts 850 as follows:
PART 850—RETIREMENT SYSTEMS
MODERNIZATION
1. The authority citation for part 850
continues to read as follows:
■
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Authority: 5 U.S.C. 8347; 5 U.S.C. 8461;
5 U.S.C. 8716; 5 U.S.C. 8913; sec. 9 of Pub.
L. 86–724, 74 Stat. 849, 851–52 (September
8, 1960) as amended by sec. 102 of
Reorganization Plan No. 2 of 1978, 92 Stat.
3781, 3783 (February 23, 1978).
2. The heading for part 850 is revised
as above to read as follows:
■ 3. Revise § 850.101 to read as follows:
■
§ 850.101
Purpose and scope.
(a) The purpose of this part is to
enable changes to OPM’s retirement and
insurance processing systems to
improve the quality and timeliness of
services to employees and annuitants
covered by CSRS and FERS by using
contemporary, automated business
processes and supporting accessible
technologies. By utilizing these
automated processes, OPM will employ
more efficient and effective business
systems to respond to increased
customer demand for higher levels of
customer service and online self-service
tools.
(b) The provisions of this part
authorize exceptions from regulatory
provisions that would otherwise apply
to CSRS and FERS annuities and FEGLI,
FEHB, and RFEHB benefits processed by
or at the direction of OPM. Those
regulatory provisions that would
otherwise apply were established for a
hardcopy based retirement and
insurance benefits processing system
that may eventually be phased out but
which will continue to operate
concurrently with OPM’s modernization
efforts. During the phased transition to
electronic retirement and insurance
processing, certain regulations that were
not designed with information
technology needs in mind, and which
are incompatible with electronic
business processes, must be set aside
with respect to electronic retirement
and insurance processing. The
regulations set forth in this part make
the transition to electronic processing
possible.
(c) The provisions of this part do not
affect retirement and insurance
eligibility and annuity computation
provisions. The provisions for capturing
retirement and insurance data in an
electronic format, however, may
support, in some instances, more
precise calculations of annuity and
insurance benefits than were possible
using hardcopy records.
■ 4. Revise § 850.103 to read as follows:
§ 850.103
Definitions.
In this part—
Agency means an Executive agency as
defined in section 105 of title 5, United
States Code; a legislative branch agency;
a judicial branch agency; the U.S. Postal
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Service; the Postal Regulatory
Commission; and the District of
Columbia government.
Biometrics means the technology that
converts a unique characteristic of an
individual into a digital form, which is
then interpreted by a computer and
compared with a digital exemplar copy
of the characteristic stored in the
computer. Among the unique
characteristics of an individual that can
be converted into a digital form are
voice patterns, fingerprints, and the
blood vessel patterns present on the
retina of one or both eyes.
Cryptographic control method means
an approach to authenticating identity
or the authenticity of an electronic
document through the use of a cipher
(i.e., a pair of algorithms) which
performs encryption and decryption.
CSRS means the Civil Service
Retirement System established under
subchapter III of chapter 83 of title 5,
United States Code.
Digital signature means an electronic
signature generated by means of an
algorithm that ensures that the identity
of the signatory and the integrity of the
data can be verified. A value, referred to
as the ‘‘private key,’’ is generated to
produce the signature and another
value, known as the ‘‘public key,’’
which is linked to but is not the same
as the private key, is used to verify the
signature.
Digitized signature means a graphical
image of a handwritten signature
usually created using a special
computer input device (such as a digital
pen and pad), which contains unique
biometric data associated with the
creation of each stroke of the signature
(such as duration of stroke or pen
pressure). A digitized signature can be
verified by a comparison with the
characteristics and biometric data of a
known or exemplar signature image.
Director means the Director of the
Office of Personnel Management.
Electronic communication means any
information conveyed through
electronic means and includes
electronic forms, applications, elections,
and requests submitted by email or any
other electronic message.
Electronic Document Management
System (EDMS) means the electronic
system of images of hardcopy individual
retirement records (SF 2806 and SF
3100) and other retirement-related
documents.
Electronic Official Personnel Record
Folder (eOPF) means an electronic
version of the hardcopy Official
Personnel Folder (OPF), providing Webenabled access for federal employees
and HR staff to view eOPF documents.
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Federal Register / Vol. 78, No. 43 / Tuesday, March 5, 2013 / Proposed Rules
Electronic Individual Retirement
Record (eIRR) means a web-based
database that contains certified
electronic closeout and fully paid post56 military service deposit Individual
Retirement Records (IRRs), also known
as Standard Form (SF) 2806 and SF
3100. The eIRR is stored in the
Electronic Individual Retirement Record
records storage database (formerly
known as the Individual Retirement
Record Closeout Data Capture or ICDC
records storage database).
Employee means an individual, other
than a Member of Congress, who is
covered by CSRS or FERS.
Enterprise Human Resources
Integration (EHRI) Data System means
the comprehensive electronic retirement
record-keeping system that supports
OPM’s retirement processing across the
Federal Government.
Electronic Retirement Record (ERR)
means the certified electronic retirement
record submitted to OPM as a retirement
data feed in accordance with the Guide
to Retirement Data Reporting. The ERR
is submitted to OPM whenever an
Agency would otherwise submit a
hardcopy IRR to OPM.
FEGLI means the Federal Employees’
Group Life Insurance Program
established under chapter 87 of title 5,
United States Code.
FEHB means the Federal Employees
Health Benefits Program established
under chapter 89 of title 5, United States
Code.
FERS means the Federal Employees’
Retirement System established under
chapter 84 of title 5, United States Code.
Member means a Member of Congress
as defined by section 2106 of title 5,
United States Code, who is covered by
CSRS or FERS.
Non-cryptographic method is an
approach to authenticating identity that
relies solely on an identification and
authentication mechanism that must be
linked to a specific software platform for
each application.
Personal identification number (PIN)
or password means a non-cryptographic
method of authenticating the identity of
a user of an electronic application,
involving the use of an identifier known
only to the user and to the electronic
system, which checks the identifier
against data in a database to
authenticate the user’s identity.
Public/private key (asymmetric)
cryptography is a method of creating a
unique mark, known as a digital
signature, on an electronic document or
file. This method involves the use of
two computer-generated,
mathematically-linked keys: A private
signing key that is kept private and a
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public validation key that is available to
the public.
Retirement Data Repository means a
secure centralized data warehouse that
stores electronic retirement data of
employees covered under the Civil
Service Retirement System or the
Federal Employees Retirement System
compiled from multiple sources
including agencies and Shared Service
Centers.
RFEHB means the Retired Federal
Employees Health Benefits Program
established under Public Law 86–724,
74 Stat. 849, 851–52 (September 8,
1960), as amended.
Shared Service Centers means
processing centers delivering a broad
array of administrative services to
multiple agencies.
Shared symmetric key cryptography
means a method of authentication in
which a single key is used to sign and
verify an electronic document. The
single key (also known as a ‘‘private
key’’) is known only by the user and the
recipient or recipients of the electronic
document.
Smart card means a plastic card,
typically the size of a credit card,
containing an embedded integrated
circuit or ‘‘chip’’ that can generate,
store, or process data. A smart card can
be used to facilitate various
authentication technologies that may be
embedded on the same card.
■ 5. Amend § 850.106 by revising
paragraph (a)(4) to read as follows:
§ 850.106
Electronic signatures.
(a) * * *
(4)(i) In general, any regulatory
requirement under CSRS, FERS, FEGLI,
FEHB or RFEHB that a signature be
notarized, certified, or otherwise
witnessed, by a notary public or other
official authorized to administer oaths
may be satisfied by the electronic
signature of the person authorized to
perform those acts when such electronic
signature is attached to or logically
associated with all other information
and records required to be included by
the applicable regulation.
(ii) Except as provided in paragraph
(iii), a person signing a consent or
election for the purpose of electronic
notarization under paragraph (i) must be
in the physical presence of the notary
public or an official authorized to
administer oaths.
(iii) The Director may provide in
directives issued under § 850.104 that
alternative procedures utilized by a
notary public or other official
authorized to administer oaths (such as
audio-video conference technology) will
be deemed to satisfy the physical
presence requirement for a notarized,
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14235
certified, or witnessed election or
consent, but only if those procedures
with respect to the electronic system
provide the same safeguards as are
provided by physical presence.
*
*
*
*
*
■ 6. Revise § 850.201 to read as follows:
§ 850.201
Applications for benefits.
(a) Hardcopy applications and related
submissions that are otherwise required
to be made to an individual’s employing
agency (other than by statute) may
instead be submitted electronically in
such form as the Director prescribes
under § 850.104.
(b) Data provided under subpart C of
this part are the basis for adjudicating
claims for CSRS and FERS retirement
benefits, and will support the
administration of FEGLI, FEHB and
RFEHB coverage for annuitants, under
this part.
§ 850.202
[Amended]
7. Amend § 850.202 by removing
paragraphs (b)(1) and (b)(2).
■ 8. Revise § 850.203 to read as follows:
■
§ 850.203
Other elections.
Any other election may be effected in
such form as the Director prescribes
under § 850.104. Such elections include
but are not limited to elections of
coverage under CSRS, FERS, FEGLI,
FEHB, or RFEHB by individuals entitled
to elect such coverage; applications for
service credit and applications to make
deposit; and elections regarding the
withholding of State income tax from
annuity payments.
■ 9. Revise § 850.301 to read as follows:
§ 850.301 Electronic records; other
acceptable records.
(a) Acceptable electronic records for
retirement and insurance processing by
OPM include—
(1) Electronic employee data,
including an eIRR or an ERR, submitted
by an agency, agency payroll office, or
Shared Service Center, or other entity
and stored within the EHRI Retirement
Data Repository, the eIRR records
storage database, or other OPM
database.
(2) Electronic Official Personnel
Folder (eOPF) data; and
(3) Documents, including hardcopy
versions of the Individual Retirement
Record (SF 2806 or SF 3100), or data or
images obtained from such documents,
including images stored in EDMS, that
are converted to an electronic or digital
form by means of image scanning or
other forms of electronic or digital
conversion.
(b) Documents that are not converted
to an electronic or digital form will
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Federal Register / Vol. 78, No. 43 / Tuesday, March 5, 2013 / Proposed Rules
continue to be acceptable records for
processing by the retirement and
insurance processing system.
■ 10. Revise § 850.401 to read as
follows:
§ 850.401 Electronic notice of coverage
determination.
An agency or other entity that submits
electronic employee records directly or
through a Shared Service Center must
include in the notice of law enforcement
officer, firefighter, or nuclear materials
retirement coverage, required by
§§ 831.811(a), 831.911(a), 842.808(a), or
842.910(a) of this chapter, the position
description number, or other unique
alphanumeric identifier, in the notice
for the position for which law
enforcement officer, firefighter, or
nuclear materials courier retirement
coverage has been approved. Agencies
or other entities must submit position
descriptions to OPM in a PDF document
to combox address: combox@opm.gov.
[FR Doc. 2013–04965 Filed 3–4–13; 8:45 am]
BILLING CODE 6325–38–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Doc. No. AMS–FV–12–0052; FV12–905–2
PR]
Oranges, Grapefruit, Tangerines, and
Tangelos Grown in Florida; Revising
Reporting Requirements and New
Information Collection
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
emcdonald on DSK67QTVN1PROD with PROPOSALS
AGENCY:
SUMMARY: This rule invites comments
on a proposed change to reporting
requirements prescribed under the
Federal marketing order for oranges,
grapefruit, tangerines, and tangelos
grown in Florida (order). The Citrus
Administrative Committee (Committee)
is responsible for local administration of
the order. This action would require all
fresh citrus handlers to provide the
Committee with a list of all growers
whose fruit they handled each season.
This information would enable the
Committee to more efficiently
administer the order and improve
communication with growers. This
proposal also announces the
Agricultural Marketing Service’s (AMS)
intention to request approval from
Office of Management and Budget
(OMB) of a new information collection.
DATES: Comments on the proposed
rulemaking must be received by May 6,
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2013. Pursuant to the Paperwork
Reduction Act, comments on the
information collection burden must be
received by May 6, 2013.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposal. Comments
must be sent to the Docket Clerk,
Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Fax: (202) 720–8938; or
Internet: https://www.regulations.gov. All
comments should reference the
document number and the date and
page number of this issue of the Federal
Register and will be made available for
public inspection in the Office of the
Docket Clerk during regular business
hours, or can be viewed at: https://
www.regulations.gov. All comments
submitted in response to this rule will
be included in the record and will be
made available to the public. Please be
advised that the identity of the
individuals or entities submitting the
comments will be made public on the
Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Jennie M. Varela, Marketing Specialist,
or Christian D. Nissen, Regional
Director, Southeast Marketing Field
Office, Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA; Telephone: (863) 324–
3375, Fax: (863) 325–8793, or Email:
Jennie.Varela@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Laurel May,
Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Laurel.May@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This
proposal is issued under Marketing
Order No. 905, as amended (7 CFR part
905), regulating the handling of oranges,
grapefruit, tangerines, and tangelos
grown in Florida, hereinafter referred to
as the ‘‘order.’’ The order is effective
under the Agricultural Marketing
Agreement Act of 1937, as amended (7
U.S.C. 601–674), hereinafter referred to
as the ‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Order
12866.
This proposal has been reviewed
under Executive Order 12988, Civil
Justice Reform. This rule is not intended
to have retroactive effect.
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The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. A handler
is afforded the opportunity for a hearing
on the petition. After the hearing, USDA
would rule on the petition. The Act
provides that the district court of the
United States in any district in which
the handler is an inhabitant, or has his
or her principal place of business, has
jurisdiction to review USDA’s ruling on
the petition, provided an action is filed
not later than 20 days after the date of
the entry of the ruling.
This proposed rule would revise the
reporting requirements prescribed under
the order. This action would require all
fresh citrus handlers to provide the
Committee with a list of all growers
whose fruit they handled each season.
This information would enable the
Committee to more efficiently
administer the order and better
communicate fresh market issues to
fresh market citrus growers. This
proposed change was unanimously
recommended by the Committee at a
July 17, 2012, meeting.
Section 905.71 of the order provides
the Committee, with the approval of the
Secretary, authority to collect
information from handlers that is
deemed necessary for administering the
order. This proposed rule would utilize
this authority to establish a new
§ 905.171 under the rules and
regulations of the order. This new
section would require handlers of fresh
citrus to report to the Committee a list
of names and contact information for all
growers whose fruit they have shipped
by June 15 of each season.
Currently, the Committee does not
require handlers to report any
information regarding the growers who
supply them. In order to communicate
with its grower base regarding the order
or Committee actions, the Committee
depends on mailing lists from other
industry groups. However, third-party
lists are often incomplete, out of date, or
do not distinguish between those
growing for the fresh market or those
growing for the processed market.
Ninety percent of the volume of citrus
produced in Florida is sold for
processing into juice, which is not
regulated under the order.
Consequently, while there are an
estimated 8,000 citrus growers, it is
estimated only 750 growers produce for
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]]>Agencies
[Federal Register Volume 78, Number 43 (Tuesday, March 5, 2013)]
[Proposed Rules]
[Pages 14233-14236]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-04965]
========================================================================
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. 78, No. 43 / Tuesday, March 5, 2013 /
Proposed Rules
[[Page 14233]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 850
RIN 3206-AM45
Electronic Retirement Processing
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: Pursuant to the President's January 18, 2011, Executive Order
13563--Improving Regulation and Regulatory Review, published in the
Federal Register, the Office of Personnel Management (OPM) undertook a
review of our regulations, to streamline and revise this part so that
it better serves OPM's ongoing modernization of the processing of
benefits under the Civil Service Retirement System (CSRS), the Federal
Employees' Retirement System (FERS), the Federal Employees' Group Life
Insurance (FEGLI), the Federal Employees Health Benefits (FEHB), and
the Retired Federal Employee Health Benefits (RFEHB) Programs. OPM
proposes these amendments to ensure the rule reflects the electronic
recordkeeping and automated retirement processing improvements being
deployed by OPM, agencies, and Shared Service Centers under OPM's Human
Resources Line of Business. These amendments are also being proposed to
provide OPM with the flexibility to implement further improvements in
automated retirement processing, recordkeeping, and electronic
submission of forms and retirement applications as OPM's technological
initiatives reach completion.
DATES: We must receive your comments by May 6, 2013.
ADDRESSES: You may submit comments, identified by docket number and/or
RIN number 3206-AM54, by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: combox@opm.gov. Include RIN number 3206-AM45 in the
subject line of the message.
Mail: John Panagakos, Retirement Policy, Retirement
Services, Office of Personnel Management, 1900 E. Street NW.,
Washington, DC 20415-3200.
FOR FURTHER INFORMATION CONTACT: Roxann Johnson or Kristine Prentice,
(202) 606-0299.
SUPPLEMENTARY INFORMATION: OPM proposes to amend part 850 of title 5,
Code of Federal Regulations, by updating the regulations previously
published at 72 FR 73573 (December 28, 2007). OPM is proceeding with
its efforts to modernize its retirement processing systems and,
therefore, is proposing these changes so that part 850 better reflects
the automated systems OPM has developed and to afford flexibility in
developing and adopting automated technologies that improve the quality
and timeliness of retirement, health, and life insurance benefits
processing.
To assist in meeting the ongoing objective to modernize the
processing of employee and retirement benefits, we have removed
references to OPM's ``Retirement Systems Modernization'' (RSM)
initiative so that part 850 reflects OPM's current efforts in
modernizing these systems. For that reason, OPM proposes renaming part
850 ``Electronic Retirement Processing.'' This proposed rule would also
amend Sec. Sec. 850.101 and 850.102 by removing specific references to
RSM and the electronic retirement and insurance processing system so
that these subsections better reflect OPM's current modernization
efforts and objectives. The proposed rule adds language in Sec.
850.101(a) to clarify that automated technologies implemented to
improve the quality and timeliness of retirement, health, and life
insurance benefits processing must be accessible to people with
disabilities as required by section 508 of the Rehabilitation Act, 29
U.S.C. 794(d).
The proposed rule would add definitions within Sec. 850.103 that
describe specific databases, electronic records, and processes OPM has
developed, utilized, or is in the process of implementing since part
850 was first issued in 2007. Specifically, we have included
definitions of OPM's Electronic Document Management System, the
Electronic Official Personnel Record Folder, the Electronic Individual
Retirement Record, the Electronic Retirement Record, and the Retirement
Data Repository.
The proposed rule also revises language at Sec. 850.106(a)(4) to
clarify that when there are regulatory requirements under CSRS, FERS,
FEGLI, FEHB or RFEHB that require a signature be notarized, the
notarization requirement may be satisfied if the notary public or other
official's signature is attached to, or logically associated with, all
records necessary to meet the prescribed regulations. Additionally, we
have added language in the proposed rule to clarify that a person
making an electronic signature must be in the physical presence of a
notary or other official. However, the proposed rule would allow the
Director to issue directives allowing for virtual presence if the
procedures used by the notary or official (such as audio-video
conferencing) have safeguards equivalent to the physical presence of
the person signing.
We also propose removing the references to notice requirements
under Sec. Sec. 850.201(c) and 850.203(b). These requirements were
included in part 850 to accommodate specific processes designed for the
previous RSM effort. However, upon review, OPM has determined that
under future retirement processes, OPM's standard informational
material provided to annuitants and OPM's annual notices, which include
information to annuitants regarding their post-retirement survivor
election rights and annuity Cost-of-Living Adjustments, provide
sufficient information to annuitants to satisfy the purpose of the
notice requirements under Sec. Sec. 850.201(c) and 850.203(b).
The proposed rule would also add specific references at Sec.
850.301 to the Electronic Individual Retirement Record. These
electronic record equivalents for the hardcopy based Individual
Retirement Record (SF 2806 or SF 3100) are, or will be, provided to OPM
by agencies and Shared Service Centers through the electronic data
feeds for storage in OPM's Retirement Data Repository databases.
Section 850.301 would also be amended to add a reference to OPM's
Electronic Document Management System, which is a database of
electronic images of hardcopy documents imaged and stored during OPM's
RSM initiative.
[[Page 14234]]
Additionally, we propose removing subsection (c) from section 850.301,
which requires OPM to retain documents in accordance with requirements
under title 44, United States Code, after they have been imaged or
converted to electronic records. Because title 44, United States Code,
provides the requirements federal agencies must follow in retaining
documents after they have been converted to electronic records, the
additional requirements noted under Sec. 850.301(c) regarding
retention are unnecessary.
Finally, OPM has received many requests from agencies to allow them
the ability to submit electronically notices of law enforcement
officer, firefighter, or nuclear materials retirement coverage required
by Sec. Sec. 831.811(a), 831.911(a), 842.808(a), or 842.910(a). To
accommodate these requests, we have included instructions under Sec.
850.401 on how to submit these notices electronically and propose
amending this section to require agencies and other entities to use
this method when submitting future notices.
Executive Order 13563 and Executive Order 12866
The Office of Management and Budget has reviewed this rule in
accordance with E.O. 13563 and E.O. 12866.
Regulatory Flexibility Act
I certify that this regulation will not have a significant economic
impact on a substantial number of small entities because the purpose of
this regulation is to assist in facilitating OPM's ongoing
modernization of the processing of benefits under CSRS, FERS, FEGLI,
FEHB, and RFEHB.
List of Subjects in 5 CFR Parts 850
Administrative practice and procedure, Air traffic controllers,
Alimony, Claims, Disability benefits, Firefighters, Government
employees, Income taxes, Intergovernmental relations, Law enforcement
officers, Pensions, Reporting and recordkeeping requirements,
Retirement.
Office of Personnel Management.
John Berry,
Director.
For the reasons discussed in the preamble, the Office of Personnel
Management is proposing to amend 5 CFR parts 850 as follows:
PART 850--RETIREMENT SYSTEMS MODERNIZATION
0
1. The authority citation for part 850 continues to read as follows:
Authority: 5 U.S.C. 8347; 5 U.S.C. 8461; 5 U.S.C. 8716; 5
U.S.C. 8913; sec. 9 of Pub. L. 86-724, 74 Stat. 849, 851-52
(September 8, 1960) as amended by sec. 102 of Reorganization Plan
No. 2 of 1978, 92 Stat. 3781, 3783 (February 23, 1978).
0
2. The heading for part 850 is revised as above to read as follows:
0
3. Revise Sec. 850.101 to read as follows:
Sec. 850.101 Purpose and scope.
(a) The purpose of this part is to enable changes to OPM's
retirement and insurance processing systems to improve the quality and
timeliness of services to employees and annuitants covered by CSRS and
FERS by using contemporary, automated business processes and supporting
accessible technologies. By utilizing these automated processes, OPM
will employ more efficient and effective business systems to respond to
increased customer demand for higher levels of customer service and
online self-service tools.
(b) The provisions of this part authorize exceptions from
regulatory provisions that would otherwise apply to CSRS and FERS
annuities and FEGLI, FEHB, and RFEHB benefits processed by or at the
direction of OPM. Those regulatory provisions that would otherwise
apply were established for a hardcopy based retirement and insurance
benefits processing system that may eventually be phased out but which
will continue to operate concurrently with OPM's modernization efforts.
During the phased transition to electronic retirement and insurance
processing, certain regulations that were not designed with information
technology needs in mind, and which are incompatible with electronic
business processes, must be set aside with respect to electronic
retirement and insurance processing. The regulations set forth in this
part make the transition to electronic processing possible.
(c) The provisions of this part do not affect retirement and
insurance eligibility and annuity computation provisions. The
provisions for capturing retirement and insurance data in an electronic
format, however, may support, in some instances, more precise
calculations of annuity and insurance benefits than were possible using
hardcopy records.
0
4. Revise Sec. 850.103 to read as follows:
Sec. 850.103 Definitions.
In this part--
Agency means an Executive agency as defined in section 105 of title
5, United States Code; a legislative branch agency; a judicial branch
agency; the U.S. Postal Service; the Postal Regulatory Commission; and
the District of Columbia government.
Biometrics means the technology that converts a unique
characteristic of an individual into a digital form, which is then
interpreted by a computer and compared with a digital exemplar copy of
the characteristic stored in the computer. Among the unique
characteristics of an individual that can be converted into a digital
form are voice patterns, fingerprints, and the blood vessel patterns
present on the retina of one or both eyes.
Cryptographic control method means an approach to authenticating
identity or the authenticity of an electronic document through the use
of a cipher (i.e., a pair of algorithms) which performs encryption and
decryption.
CSRS means the Civil Service Retirement System established under
subchapter III of chapter 83 of title 5, United States Code.
Digital signature means an electronic signature generated by means
of an algorithm that ensures that the identity of the signatory and the
integrity of the data can be verified. A value, referred to as the
``private key,'' is generated to produce the signature and another
value, known as the ``public key,'' which is linked to but is not the
same as the private key, is used to verify the signature.
Digitized signature means a graphical image of a handwritten
signature usually created using a special computer input device (such
as a digital pen and pad), which contains unique biometric data
associated with the creation of each stroke of the signature (such as
duration of stroke or pen pressure). A digitized signature can be
verified by a comparison with the characteristics and biometric data of
a known or exemplar signature image.
Director means the Director of the Office of Personnel Management.
Electronic communication means any information conveyed through
electronic means and includes electronic forms, applications,
elections, and requests submitted by email or any other electronic
message.
Electronic Document Management System (EDMS) means the electronic
system of images of hardcopy individual retirement records (SF 2806 and
SF 3100) and other retirement-related documents.
Electronic Official Personnel Record Folder (eOPF) means an
electronic version of the hardcopy Official Personnel Folder (OPF),
providing Web-enabled access for federal employees and HR staff to view
eOPF documents.
[[Page 14235]]
Electronic Individual Retirement Record (eIRR) means a web-based
database that contains certified electronic closeout and fully paid
post-56 military service deposit Individual Retirement Records (IRRs),
also known as Standard Form (SF) 2806 and SF 3100. The eIRR is stored
in the Electronic Individual Retirement Record records storage database
(formerly known as the Individual Retirement Record Closeout Data
Capture or ICDC records storage database).
Employee means an individual, other than a Member of Congress, who
is covered by CSRS or FERS.
Enterprise Human Resources Integration (EHRI) Data System means the
comprehensive electronic retirement record-keeping system that supports
OPM's retirement processing across the Federal Government.
Electronic Retirement Record (ERR) means the certified electronic
retirement record submitted to OPM as a retirement data feed in
accordance with the Guide to Retirement Data Reporting. The ERR is
submitted to OPM whenever an Agency would otherwise submit a hardcopy
IRR to OPM.
FEGLI means the Federal Employees' Group Life Insurance Program
established under chapter 87 of title 5, United States Code.
FEHB means the Federal Employees Health Benefits Program
established under chapter 89 of title 5, United States Code.
FERS means the Federal Employees' Retirement System established
under chapter 84 of title 5, United States Code.
Member means a Member of Congress as defined by section 2106 of
title 5, United States Code, who is covered by CSRS or FERS.
Non-cryptographic method is an approach to authenticating identity
that relies solely on an identification and authentication mechanism
that must be linked to a specific software platform for each
application.
Personal identification number (PIN) or password means a non-
cryptographic method of authenticating the identity of a user of an
electronic application, involving the use of an identifier known only
to the user and to the electronic system, which checks the identifier
against data in a database to authenticate the user's identity.
Public/private key (asymmetric) cryptography is a method of
creating a unique mark, known as a digital signature, on an electronic
document or file. This method involves the use of two computer-
generated, mathematically-linked keys: A private signing key that is
kept private and a public validation key that is available to the
public.
Retirement Data Repository means a secure centralized data
warehouse that stores electronic retirement data of employees covered
under the Civil Service Retirement System or the Federal Employees
Retirement System compiled from multiple sources including agencies and
Shared Service Centers.
RFEHB means the Retired Federal Employees Health Benefits Program
established under Public Law 86-724, 74 Stat. 849, 851-52 (September 8,
1960), as amended.
Shared Service Centers means processing centers delivering a broad
array of administrative services to multiple agencies.
Shared symmetric key cryptography means a method of authentication
in which a single key is used to sign and verify an electronic
document. The single key (also known as a ``private key'') is known
only by the user and the recipient or recipients of the electronic
document.
Smart card means a plastic card, typically the size of a credit
card, containing an embedded integrated circuit or ``chip'' that can
generate, store, or process data. A smart card can be used to
facilitate various authentication technologies that may be embedded on
the same card.
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5. Amend Sec. 850.106 by revising paragraph (a)(4) to read as follows:
Sec. 850.106 Electronic signatures.
(a) * * *
(4)(i) In general, any regulatory requirement under CSRS, FERS,
FEGLI, FEHB or RFEHB that a signature be notarized, certified, or
otherwise witnessed, by a notary public or other official authorized to
administer oaths may be satisfied by the electronic signature of the
person authorized to perform those acts when such electronic signature
is attached to or logically associated with all other information and
records required to be included by the applicable regulation.
(ii) Except as provided in paragraph (iii), a person signing a
consent or election for the purpose of electronic notarization under
paragraph (i) must be in the physical presence of the notary public or
an official authorized to administer oaths.
(iii) The Director may provide in directives issued under Sec.
850.104 that alternative procedures utilized by a notary public or
other official authorized to administer oaths (such as audio-video
conference technology) will be deemed to satisfy the physical presence
requirement for a notarized, certified, or witnessed election or
consent, but only if those procedures with respect to the electronic
system provide the same safeguards as are provided by physical
presence.
* * * * *
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6. Revise Sec. 850.201 to read as follows:
Sec. 850.201 Applications for benefits.
(a) Hardcopy applications and related submissions that are
otherwise required to be made to an individual's employing agency
(other than by statute) may instead be submitted electronically in such
form as the Director prescribes under Sec. 850.104.
(b) Data provided under subpart C of this part are the basis for
adjudicating claims for CSRS and FERS retirement benefits, and will
support the administration of FEGLI, FEHB and RFEHB coverage for
annuitants, under this part.
Sec. 850.202 [Amended]
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7. Amend Sec. 850.202 by removing paragraphs (b)(1) and (b)(2).
0
8. Revise Sec. 850.203 to read as follows:
Sec. 850.203 Other elections.
Any other election may be effected in such form as the Director
prescribes under Sec. 850.104. Such elections include but are not
limited to elections of coverage under CSRS, FERS, FEGLI, FEHB, or
RFEHB by individuals entitled to elect such coverage; applications for
service credit and applications to make deposit; and elections
regarding the withholding of State income tax from annuity payments.
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9. Revise Sec. 850.301 to read as follows:
Sec. 850.301 Electronic records; other acceptable records.
(a) Acceptable electronic records for retirement and insurance
processing by OPM include--
(1) Electronic employee data, including an eIRR or an ERR,
submitted by an agency, agency payroll office, or Shared Service
Center, or other entity and stored within the EHRI Retirement Data
Repository, the eIRR records storage database, or other OPM database.
(2) Electronic Official Personnel Folder (eOPF) data; and
(3) Documents, including hardcopy versions of the Individual
Retirement Record (SF 2806 or SF 3100), or data or images obtained from
such documents, including images stored in EDMS, that are converted to
an electronic or digital form by means of image scanning or other forms
of electronic or digital conversion.
(b) Documents that are not converted to an electronic or digital
form will
[[Page 14236]]
continue to be acceptable records for processing by the retirement and
insurance processing system.
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10. Revise Sec. 850.401 to read as follows:
Sec. 850.401 Electronic notice of coverage determination.
An agency or other entity that submits electronic employee records
directly or through a Shared Service Center must include in the notice
of law enforcement officer, firefighter, or nuclear materials
retirement coverage, required by Sec. Sec. 831.811(a), 831.911(a),
842.808(a), or 842.910(a) of this chapter, the position description
number, or other unique alphanumeric identifier, in the notice for the
position for which law enforcement officer, firefighter, or nuclear
materials courier retirement coverage has been approved. Agencies or
other entities must submit position descriptions to OPM in a PDF
document to combox address: combox@opm.gov.
[FR Doc. 2013-04965 Filed 3-4-13; 8:45 am]
BILLING CODE 6325-38-P
