Federal Employees' Group Life Insurance Program: Options B and C, 77365-77366 [2013-30415]
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77365
Proposed Rules
Federal Register
Vol. 78, No. 246
Monday, December 23, 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 870
RIN 3206–AM96
Federal Employees’ Group Life
Insurance Program: Options B and C
U.S. Office of Personnel
Management.
ACTION: Proposed rule.
AGENCY:
The U.S. Office of Personnel
Management (OPM) is proposing to
amend the Federal Employees’ Group
Life Insurance (FEGLI) regulations to
provide an election opportunity for
employees enrolled in FEGLI Option B
and Option C. This new procedure
replaces the procedure by which FEGLI
enrollees elect the allowable multiples
of coverage they wish to continue
during retirement or while receiving
compensation.
DATES: Comments are due on or before
February 21, 2014.
FOR FURTHER INFORMATION CONTACT:
Ronald Brown, Policy Analyst, (202)
606–0004, or by email to
Ronald.Brown@opm.gov.
SUPPLEMENTARY INFORMATION: On
October 30, 1998, Public Law 105–311,
112 Stat. 2950, was signed into law.
This law, the Federal Employees Life
Insurance Improvement Act, changed
many parts of the FEGLI Program.
Before the enactment of Public Law
105–311, Option B and C coverage
began to reduce for annuitants when
they reached age 65. Both coverages
were reduced by 2% per month until
there was no coverage left. This
reduction was automatic, and
annuitants had no choice about it.
Public Law 105–311 allows an
annuitant to make an election at
retirement as to whether or not he/she
wants Option B and Option C coverage
to reduce. (This also applies to persons
becoming insured as compensationers.)
Previous FEGLI regulations provided
that shortly before an individual’s 65th
birthday, he/she would receive a
tkelley on DSK3SPTVN1PROD with PROPOSALS
SUMMARY:
VerDate Mar<15>2010
17:16 Dec 20, 2013
Jkt 232001
reminder notice, showing what coverage
the annuitant/compensationer elected
and what the premiums would be for
coverage beyond age 65. The individual
then had an opportunity to change his/
her election, including choosing to have
some multiples of Optional insurance
reduced and others not reduced. For a
person already over age 65 at the time
of retirement or becoming insured as a
compensationer, the reminder notice
was sent as soon as the retirement
processing was completed.
On October 1, 2010, OPM published
FEGLI final regulations (75 FR 60573)
with miscellaneous changes,
clarifications, and corrections, ending
the election opportunity at age 65. OPM
has further reviewed the changes made
to 5 CFR 870.705(b) and 870.705(d) that
required that any employee separating
for retirement or becoming insured as a
compensationer elect the number of
multiples of Option B and Option C
insurance he or she wants to continue
by making an election at the time of
retirement or at the time he or she
becomes insured as a compensationer.
In light of OPM policy to expand the
options available under the FEGLI
program and the comments received in
response to our October 1, 2010 ruling,
we are reversing this regulation so that
the post-65 election for FEGLI Option B
and Option C will be made at the time
the enrollee attains age 65. We are
restoring this election opportunity in
order to allow enrollees expanded
flexibility to choose among several
retirement coverage levels beginning at
age 65.
Changes
Public Law 105–311, the Federal
Employees Life Insurance Improvement
Act, 112 Stat. 2950, enacted October 30,
1998, amended chapter 87 of title 5,
U.S. Code, to allow a retiring employee
to elect either No Reduction or Full
Reduction for his/her Option B and
Option C coverage. This election was to
be made at the time of retirement, the
same as the election for Basic insurance.
Implementing this provision required
programming changes to the electronic
records system for an annuitant to allow
for ‘‘mixed’’ elections, i.e., electing
reductions for some coverage but not for
other coverage. While these system
changes were being made, an annuitant
was required to elect either No
Reduction or Full Reduction for Option
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
B and Option C coverage at the time of
retirement. Then, shortly before the
annuitant’s 65th birthday, the insured
was given a second opportunity to make
another election, this time being
allowed to choose No Reduction for
some multiples and Full Reduction for
others. While the law states that the
election must be made at the time of
retirement, enrollees affected by this
provision have expressed interest in
having a second election. Thus, we are
restoring the opportunity for a second
election at age 65. This change can be
found in section 870.705(b) and
870.705(d).
Regulatory Flexibility Act
I certify that this regulation will not
have a significant economic impact on
a substantial number of small entities
because the regulation only affects life
insurance benefits of Federal employees
and retirees.
Executive Order 12866, Regulatory
Review
This rule has been reviewed by the
Office of Management and Budget in
accordance with Executive Order 12866.
List of Subjects in 5 CFR Part 870
Administrative practice and
procedure, Government employees, Life
insurance, Retirement.
U.S. Office of Personnel Management.
Katherine Archuleta,
Director.
For the reasons stated in the
preamble, OPM proposes to amend 5
CFR part 870 as follows:
PART 870—FEDERAL EMPLOYEES’
GROUP LIFE INSURANCE PROGRAM
1. The authority citation for 5 CFR
part 870 is revised to read as follows:
■
Authority: 5 U.S.C. 8716; Subpart J also
issued under section 599C of Pub. L. 101–
513, 104 Stat. 2064, as amended; Sec.
870.302(a)(3)(ii) also issued under section
153 of Pub. L. 104–134, 110 Stat. 1321; Sec.
870.302(a)(3) also issued under sections
11202(f), 11232(e), and 11246(b) and (c) of
Pub. L. 105–33, 111 Stat. 251, and section
7(e) of Pub. L. 105–274, 112 Stat. 2419; Sec.
870.302(a)(3) also issued under section 145 of
Pub. L. 106–522, 114 Stat. 2472; Secs.
870.302(b)(8), 870.601(a), and 870.602(b) also
issued under Pub. L. 110–279, 122 Stat. 2604;
Subpart E also issued under 5 U.S.C. 8702(c);
Sec. 870.601(d)(3) also issued under 5 U.S.C.
8706(d); Sec. 870.703(e)(1) also issued under
section 502 of Pub. L. 110–177, 121 Stat.
E:\FR\FM\23DEP1.SGM
23DEP1
77366
Federal Register / Vol. 78, No. 246 / Monday, December 23, 2013 / Proposed Rules
2542; Sec. 870.705 also issued under 5 U.S.C.
8714b(c) and 8714c(c); Public Law 104–106,
110 Stat. 521.
5 CFR Part 894
Subpart G—Annuitants and
Compensationers
RIN 3206–AM57
2. Amend § 870.705 by revising
paragraph (b)(3)(ii), adding paragraph
(b)(4), and revising paragraph (d)(1)(i) to
read as follows:
■
§ 870.705 Amount and election of Option B
and Option C.
tkelley on DSK3SPTVN1PROD with PROPOSALS
*
*
*
*
*
(b) * * *
(3) * * *
(ii) Except as provided in paragraph
(b)(4) of this section, after reaching age
65, an annuitant or compensationer
cannot change from Full Reduction to
No Reduction.
(4)(i) Shortly before an annuitant or
compensationer’s 65 birthday, the
retirement system will send a reminder
about the election he/she made and will
offer the individual a chance to change
the election. At that time, the annuitant
or compensationer can choose to have
some multiples of Option B and Option
C reduce and some not reduce.
(ii) If the individual is already 65 or
older at the time of retirement or
becoming insured as a compensationer,
the retirement system will send the
reminder and give the opportunity to
change the election as soon as the
retirement processing or compensation
transfer is complete.
(iii) If the individual assigned his/her
insurance as provided in subpart I of
this part, and if the employee elected No
Reduction for Option B coverage at the
time of retirement or becoming insured
as a compensationer, the retirement
system will send the reminder notice for
Option B coverage to the assignee.
(iv) An annuitant or compensationer
who wishes to change his/her reduction
election must return the notice by the
end of the month following the month
in which the individual turns 65, or if
already over age 65, by the end of the
4th month after the date of the letter. An
annuitant or compensationer who does
not return the election notice will keep
his/her initial election.
*
*
*
*
*
(d)(1) * * *
(i) Annuitants and compensationers
who were under age 65 were notified of
the option to elect No Reduction. The
retirement system will send these
individuals an actual election notice
before their 65th birthday, as provided
in paragraph (b)(4) of this section.
*
*
*
*
*
[FR Doc. 2013–30415 Filed 12–20–13; 8:45 am]
BILLING CODE 6325–39–P
VerDate Mar<15>2010
17:16 Dec 20, 2013
OFFICE OF PERSONNEL
MANAGEMENT
Jkt 232001
Federal Employee Dental and Vision
Insurance Program; Qualifying Life
Event Amendments
U.S. Office of Personnel
Management.
ACTION: Notice of Proposed Rulemaking.
AGENCY:
The U.S. Office of Personnel
Management (OPM) is issuing a Notice
of Proposed Rulemaking to change some
conditions under which Federal
employees may change an enrollment
status under the Federal Employee
Dental and Vision Insurance Program.
OPM is proposing these changes to
expand the opportunities for FEDVIP
enrollment changes and therefore better
align FEDVIP with the Federal
Employees Health Benefits (FEHB)
Program.
SUMMARY:
Comment date: Comments are
due on or before February 21, 2014.
ADDRESSES: You may submit comments,
identified by RIN number ‘‘3206–
AM57’’ using any of the following
methods:
Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
Mail: Planning and Policy Analysis,
U.S. Office of Personnel Management,
1900 E Street NW., Washington, DC
20415, Michael W. Kaszynski.
FOR FURTHER INFORMATION CONTACT:
Michael W. Kaszynski, Senior Policy
Analyst at mwkaszyn@opm.gov or (202)
606–0004.
SUPPLEMENTARY INFORMATION: The U.S.
Office of Personnel Management (OPM)
is issuing a Notice of Proposed
Rulemaking to change some of the
requirements for Federal employees to
make enrollment changes under the
Federal Employee Dental and Vision
Insurance Program (FEDVIP). OPM is
proposing these changes to expand the
opportunities for FEDVIP enrollment
changes and therefore better align
FEDVIP with the Federal Employees
Health Benefits (FEHB) Program.
The Federal Employee Dental and
Vision Benefits Enhancement Act of
2004 provided OPM the opportunity to
establish arrangements under which
supplemental dental and vision benefits
were made available to federal
employees, retirees, and their family
members.
FEDVIP is available to eligible Federal
and Postal employees, retirees, and their
eligible family members on an enrolleeDATES:
PO 00000
Frm 00002
Fmt 4702
Sfmt 4702
pay-all basis. This program allows
dental and vision insurance to be
purchased on a group basis with
competitive premiums and no preexisting condition limitations.
Premiums for enrolled federal and
postal employees are withheld from
salary on a pre-tax basis.
Enrollment takes place during the
annual Federal Benefits Open Season in
November and December of each year.
New and newly eligible employees can
enroll within 60 days after they become
eligible.
Eligible individuals can enroll in a
dental plan and/or a vision plan.
Individuals may enroll in a plan for
Self-only, Self plus one, or Self and
family coverage. The rules for family
members’ eligibility are the same as they
are for the FEHB Program.
OPM is proposing to expand
enrollment opportunities so FEDVIP
enrollees can make enrollment changes
under the same qualifying life events
(QLEs) as enrollees under the FEHB
Program. This Notice of Proposed
rulemaking is intended to authorize this
change.
Regulatory Impact Analysis
OPM has examined the impact of this
proposed rule as required by Executive
Order 12866 and Executive Order
13563, which directs agencies to assess
all costs and benefits of available
regulatory alternatives and, if regulation
is necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public, health, and
safety effects, distributive impacts, and
equity). A regulatory impact analysis
must be prepared for major rules with
economically significant effects of $100
million or more in any one year. This
rule is not considered a major rule
because there will be a minimal impact
on costs to Federal agencies.
Regulatory Flexibility Act
I certify that this regulation will not
have a significant economic impact on
a substantial number of small entities
because the regulation only adds
flexibility to the current enrollment
process.
Executive Order 12866, Regulatory
Review
This rule has been reviewed by the
Office of Management and Budget in
accordance with Executive Order 12866.
Federalism
We have examined this rule in
accordance with Executive Order 13132,
Federalism, and have determined that
this rule will not have any negative
E:\FR\FM\23DEP1.SGM
23DEP1
]]>Agencies
[Federal Register Volume 78, Number 246 (Monday, December 23, 2013)]
[Proposed Rules]
[Pages 77365-77366]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-30415]
========================================================================
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. 246 / Monday, December 23, 2013 /
Proposed Rules
[[Page 77365]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 870
RIN 3206-AM96
Federal Employees' Group Life Insurance Program: Options B and C
AGENCY: U.S. Office of Personnel Management.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The U.S. Office of Personnel Management (OPM) is proposing to
amend the Federal Employees' Group Life Insurance (FEGLI) regulations
to provide an election opportunity for employees enrolled in FEGLI
Option B and Option C. This new procedure replaces the procedure by
which FEGLI enrollees elect the allowable multiples of coverage they
wish to continue during retirement or while receiving compensation.
DATES: Comments are due on or before February 21, 2014.
FOR FURTHER INFORMATION CONTACT: Ronald Brown, Policy Analyst, (202)
606-0004, or by email to Ronald.Brown@opm.gov.
SUPPLEMENTARY INFORMATION: On October 30, 1998, Public Law 105-311, 112
Stat. 2950, was signed into law. This law, the Federal Employees Life
Insurance Improvement Act, changed many parts of the FEGLI Program.
Before the enactment of Public Law 105-311, Option B and C coverage
began to reduce for annuitants when they reached age 65. Both coverages
were reduced by 2% per month until there was no coverage left. This
reduction was automatic, and annuitants had no choice about it.
Public Law 105-311 allows an annuitant to make an election at
retirement as to whether or not he/she wants Option B and Option C
coverage to reduce. (This also applies to persons becoming insured as
compensationers.)
Previous FEGLI regulations provided that shortly before an
individual's 65th birthday, he/she would receive a reminder notice,
showing what coverage the annuitant/compensationer elected and what the
premiums would be for coverage beyond age 65. The individual then had
an opportunity to change his/her election, including choosing to have
some multiples of Optional insurance reduced and others not reduced.
For a person already over age 65 at the time of retirement or becoming
insured as a compensationer, the reminder notice was sent as soon as
the retirement processing was completed.
On October 1, 2010, OPM published FEGLI final regulations (75 FR
60573) with miscellaneous changes, clarifications, and corrections,
ending the election opportunity at age 65. OPM has further reviewed the
changes made to 5 CFR 870.705(b) and 870.705(d) that required that any
employee separating for retirement or becoming insured as a
compensationer elect the number of multiples of Option B and Option C
insurance he or she wants to continue by making an election at the time
of retirement or at the time he or she becomes insured as a
compensationer.
In light of OPM policy to expand the options available under the
FEGLI program and the comments received in response to our October 1,
2010 ruling, we are reversing this regulation so that the post-65
election for FEGLI Option B and Option C will be made at the time the
enrollee attains age 65. We are restoring this election opportunity in
order to allow enrollees expanded flexibility to choose among several
retirement coverage levels beginning at age 65.
Changes
Public Law 105-311, the Federal Employees Life Insurance
Improvement Act, 112 Stat. 2950, enacted October 30, 1998, amended
chapter 87 of title 5, U.S. Code, to allow a retiring employee to elect
either No Reduction or Full Reduction for his/her Option B and Option C
coverage. This election was to be made at the time of retirement, the
same as the election for Basic insurance. Implementing this provision
required programming changes to the electronic records system for an
annuitant to allow for ``mixed'' elections, i.e., electing reductions
for some coverage but not for other coverage. While these system
changes were being made, an annuitant was required to elect either No
Reduction or Full Reduction for Option B and Option C coverage at the
time of retirement. Then, shortly before the annuitant's 65th birthday,
the insured was given a second opportunity to make another election,
this time being allowed to choose No Reduction for some multiples and
Full Reduction for others. While the law states that the election must
be made at the time of retirement, enrollees affected by this provision
have expressed interest in having a second election. Thus, we are
restoring the opportunity for a second election at age 65. This change
can be found in section 870.705(b) and 870.705(d).
Regulatory Flexibility Act
I certify that this regulation will not have a significant economic
impact on a substantial number of small entities because the regulation
only affects life insurance benefits of Federal employees and retirees.
Executive Order 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with Executive Order 12866.
List of Subjects in 5 CFR Part 870
Administrative practice and procedure, Government employees, Life
insurance, Retirement.
U.S. Office of Personnel Management.
Katherine Archuleta,
Director.
For the reasons stated in the preamble, OPM proposes to amend 5 CFR
part 870 as follows:
PART 870--FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM
0
1. The authority citation for 5 CFR part 870 is revised to read as
follows:
Authority: 5 U.S.C. 8716; Subpart J also issued under section
599C of Pub. L. 101-513, 104 Stat. 2064, as amended; Sec.
870.302(a)(3)(ii) also issued under section 153 of Pub. L. 104-134,
110 Stat. 1321; Sec. 870.302(a)(3) also issued under sections
11202(f), 11232(e), and 11246(b) and (c) of Pub. L. 105-33, 111
Stat. 251, and section 7(e) of Pub. L. 105-274, 112 Stat. 2419; Sec.
870.302(a)(3) also issued under section 145 of Pub. L. 106-522, 114
Stat. 2472; Secs. 870.302(b)(8), 870.601(a), and 870.602(b) also
issued under Pub. L. 110-279, 122 Stat. 2604; Subpart E also issued
under 5 U.S.C. 8702(c); Sec. 870.601(d)(3) also issued under 5
U.S.C. 8706(d); Sec. 870.703(e)(1) also issued under section 502 of
Pub. L. 110-177, 121 Stat.
[[Page 77366]]
2542; Sec. 870.705 also issued under 5 U.S.C. 8714b(c) and 8714c(c);
Public Law 104-106, 110 Stat. 521.
Subpart G--Annuitants and Compensationers
0
2. Amend Sec. 870.705 by revising paragraph (b)(3)(ii), adding
paragraph (b)(4), and revising paragraph (d)(1)(i) to read as follows:
Sec. 870.705 Amount and election of Option B and Option C.
* * * * *
(b) * * *
(3) * * *
(ii) Except as provided in paragraph (b)(4) of this section, after
reaching age 65, an annuitant or compensationer cannot change from Full
Reduction to No Reduction.
(4)(i) Shortly before an annuitant or compensationer's 65 birthday,
the retirement system will send a reminder about the election he/she
made and will offer the individual a chance to change the election. At
that time, the annuitant or compensationer can choose to have some
multiples of Option B and Option C reduce and some not reduce.
(ii) If the individual is already 65 or older at the time of
retirement or becoming insured as a compensationer, the retirement
system will send the reminder and give the opportunity to change the
election as soon as the retirement processing or compensation transfer
is complete.
(iii) If the individual assigned his/her insurance as provided in
subpart I of this part, and if the employee elected No Reduction for
Option B coverage at the time of retirement or becoming insured as a
compensationer, the retirement system will send the reminder notice for
Option B coverage to the assignee.
(iv) An annuitant or compensationer who wishes to change his/her
reduction election must return the notice by the end of the month
following the month in which the individual turns 65, or if already
over age 65, by the end of the 4th month after the date of the letter.
An annuitant or compensationer who does not return the election notice
will keep his/her initial election.
* * * * *
(d)(1) * * *
(i) Annuitants and compensationers who were under age 65 were
notified of the option to elect No Reduction. The retirement system
will send these individuals an actual election notice before their 65th
birthday, as provided in paragraph (b)(4) of this section.
* * * * *
[FR Doc. 2013-30415 Filed 12-20-13; 8:45 am]
BILLING CODE 6325-39-P
