Federal Employees' Retirement System; Present Value Factors, 18265-18266 [2015-07694]

Download as PDF Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Notices CSRS PRESENT VALUE FACTORS APPLICABLE TO ANNUITY PAYABLE FOLLOWING AN ELECTION UNDER SECTION 8339(J) OR (K) OR SECTION 8343A OF TITLE 5, UNITED STATES CODE, OR UNDER SECTION 1043 OF PUBLIC LAW 104–106 OR UNDER SECTION 1132 OF PUBLIC LAW 107– 107 OR UNDER FERCCA OR FOLLOWING A REDEPOSIT UNDER SECTION 8334(D)(2) OF TITLE 5, UNITED STATES CODE—Continued Age Present value factor 98 .......................................... 99 .......................................... 100 ........................................ 101 ........................................ 102 ........................................ 103 ........................................ 104 ........................................ 105 ........................................ 106 ........................................ 107 ........................................ 108 ........................................ 109 ........................................ 28.4 26.7 25.1 23.9 22.6 21.3 20.3 19.5 18.5 16.5 12.9 6.4 CSRS PRESENT VALUE FACTORS APPLICABLE TO ANNUITY PAYABLE FOLLOWING AN ELECTION UNDER SECTION 1043 OF PUBLIC LAW 104–106 OR UNDER SECTION 1132 OF PUBLIC LAW 107–107 OR UNDER FERCCA [For ages at calculation below 40] asabaliauskas on DSK5VPTVN1PROD with NOTICES Age at calculation 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... VerDate Sep<11>2014 17:49 Apr 02, 2015 Present value of a monthly annuity 402.6 400.1 397.6 395.0 392.3 389.6 386.8 384.0 381.1 378.2 375.2 372.1 369.0 365.8 362.5 359.2 355.8 352.4 348.8 345.2 341.5 337.7 333.9 Jkt 235001 U.S. Office of Personnel Management. Katherine Archuleta, Director. [FR Doc. 2015–07677 Filed 4–2–15; 8:45 am] BILLING CODE 6325–38–P OFFICE OF PERSONNEL MANAGEMENT Federal Employees’ Retirement System; Present Value Factors Office of Personnel Management. ACTION: Notice. AGENCY: The Office of Personnel Management (OPM) is providing notice of adjusted present value factors applicable to retirees who elect to provide survivor annuity benefits to a spouse based on post-retirement marriage, and to retiring employees who elect the alternative form of annuity or elect to credit certain service with nonappropriated fund instrumentalities. This notice is necessary to conform the present value factors to changes in the economic and demographic assumptions adopted by the Board of Actuaries of the Civil Service Retirement System. DATES: The revised present value factors apply to survivor reductions or employee annuities that commence on or after October 1, 2015. ADDRESSES: Send requests for actuarial assumptions and data to the Board of Actuaries, care of Gregory Kissel, Senior Actuary, Office of Planning and Policy Analysis, Office of Personnel Management, Room 4307, 1900 E Street NW., Washington, DC 20415. FOR FURTHER INFORMATION CONTACT: Karla Yeakle, (202) 606–0299. SUPPLEMENTARY INFORMATION: Several provisions of the Federal Employees’ Retirement System (FERS) require reduction of annuities on an actuarial basis. Under each of these provisions, OPM is required to issue regulations on the method of determining the reduction to ensure that the present value of the reduced annuity plus a lump-sum equals, to the extent practicable, the present value of the unreduced benefit. The regulations for each of these benefits provide that OPM will publish a notice in the Federal Register whenever it changes the factors used to compute the present values of these benefits. Section 842.706(a) of title 5, Code of Federal Regulations, prescribes the method for computing the reduction in the beginning rate of annuity payable to a retiree who elects an alternative form SUMMARY: PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 18265 of annuity under 5 U.S.C. 8420a. That reduction is required to produce an annuity that is the actuarial equivalent of the annuity of a retiree who does not elect an alternative form of annuity. The present value factors listed below are used to compute the annuity reduction under 5 CFR 842.706(a). Section 842.615 of title 5, Code of Federal Regulations, prescribes the use of these factors for computing the reduction required for certain elections to provide survivor annuity benefits based on a post-retirement marriage or divorce under 5 U.S.C. 8416(b), 8416(c), or section 8417(b). Under section 11004 of the Omnibus Budget Reconciliation Act of 1993, Public Law 103–66, effective October 1, 1993, OPM ceased collection of these survivor election deposits by means of either a lump-sum payment or installments. Instead, OPM is required to establish a permanent actuarial reduction in the annuity of the retiree. This means that OPM must take the amount of the deposit computed under the old law and translate it into a lifetime reduction in the retiree’s benefit. Subpart F of part 847 of title 5, Code of Federal Regulations, prescribes the use of present value factors for computing the deficiency the retiree must pay to receive credit for certain service with nonappropriated fund instrumentalities made creditable by an election under section 1043 of Public Law 104–106. Subpart I of part 847 of title 5, Code of Federal Regulations, prescribes the use of present value factors for employees that elect to credit nonappropriated fund instrumentality service to qualify for immediate retirement under section 1132 of Public Law 107–107. OPM published the present value factors currently in effect on May 21, 2014, at 79 FR 29222 and on April 3, 2015, OPM published a notice to revise the normal cost percentage under the Federal Employees’ Retirement System (FERS) Act of 1986, Public Law 99–335, based on changed demographic assumptions adopted by the Board of Actuaries of the Civil Service Retirement System. Under 5 U.S.C. 8461(i), those changes require corresponding changes in the present value factors used to produce actuarially equivalent benefits when required by the FERS Act. The revised factors will become effective on October 1, 2015, to correspond with the changes in FERS normal cost percentages. For alternative forms of annuity, the new factors will apply to annuities that commence on or after October 1, 2015. See 5 CFR 842.706. For survivor election deposits, the new factors will apply to survivor E:\FR\FM\03APN1.SGM 03APN1 18266 Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Notices reductions that commence on or after October 1, 2015. See 5 CFR 842.615(b). For obtaining credit for service with certain nonappropriated fund instrumentalities, the new factors will apply to cases in which the date of computation under 5 CFR 847.603 or 847.809 is on or after October 1, 2015. See 5 CFR 847.602(c), 847.603, and 847.809. OPM is, therefore, revising the tables of present value factors to read as follows: TABLE I—FERS PRESENT VALUE FACTORS FOR AGES 62 AND OLDER [Applicable to annuity payable following an election under 5 U.S.C. 8416(b), 8416(c), 8417(b), 8420a, under section 1043 of Public Law 104–106, or under section 1132 of Public Law 107–107] asabaliauskas on DSK5VPTVN1PROD with NOTICES Age 62 .......................................... 63 .......................................... 64 .......................................... 65 .......................................... 66 .......................................... 67 .......................................... 68 .......................................... 69 .......................................... 70 .......................................... 71 .......................................... 72 .......................................... 73 .......................................... 74 .......................................... 75 .......................................... 76 .......................................... 77 .......................................... 78 .......................................... 79 .......................................... 80 .......................................... 81 .......................................... 82 .......................................... 83 .......................................... 84 .......................................... 85 .......................................... 86 .......................................... 87 .......................................... 88 .......................................... 89 .......................................... 90 .......................................... 91 .......................................... 92 .......................................... 93 .......................................... 94 .......................................... 95 .......................................... 96 .......................................... 97 .......................................... 98 .......................................... 99 .......................................... 100 ........................................ 101 ........................................ 102 ........................................ 103 ........................................ 104 ........................................ 105 ........................................ 106 ........................................ 107 ........................................ 108 ........................................ 109 ........................................ VerDate Sep<11>2014 17:49 Apr 02, 2015 Present value factor 200.8 195.0 189.1 183.2 177.2 171.2 165.1 158.9 152.8 146.6 140.4 134.2 128.0 121.9 116.0 110.1 104.3 98.7 93.2 87.9 82.7 77.8 72.9 68.3 63.9 59.6 55.5 51.6 48.0 44.7 41.6 38.7 36.1 33.8 31.7 29.9 28.1 26.4 24.9 23.7 22.5 21.2 20.2 19.4 18.4 16.5 12.9 6.4 Jkt 235001 TABLE II.A—FERS PRESENT VALUE FACTORS FOR AGES 40 THROUGH 61 [Applicable to annuity payable when annuity is not increased by cost-of-living adjustments before age 62 following an election under 5 U.S.C. 8416(b), 8416(c), 8417(b), 8420a, under section 1043 of Public Law 104–106, or under section 1132 of Public Law 107– 107] [Applicable to annuity payable following an election under section 1043 of Public Law 104–106 or under section 1132 of Public Law 107–107] Age at calculation Present value factor Age 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 TABLE III—FERS PRESENT VALUE FACTORS FOR AGES AT CALCULATION BELOW 40 .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... 216.8 216.5 216.1 215.6 215.1 214.6 214.0 213.4 212.8 212.2 211.7 211.1 210.5 209.8 209.0 208.2 207.2 206.2 205.1 204.1 203.0 201.9 TABLE II.B—FERS PRESENT VALUE FACTORS FOR AGES 40 THROUGH 61 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Present value of a monthly annuity .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... 348.5 346.8 345.1 343.3 341.4 339.5 337.6 335.6 333.6 331.5 329.4 327.2 324.9 322.6 320.2 317.8 315.3 312.7 310.1 307.4 304.6 301.7 298.8 U.S. Office of Personnel Management. Katherine Archuleta, Director. [Applicable to annuity payable when annuity is [FR Doc. 2015–07694 Filed 4–2–15; 8:45 am] increased by cost-of-living adjustments be- BILLING CODE 6325–38–P fore age 62 following an election under 5 U.S.C. 8416(b), 8416(c), 8417(b), or 8420a, under section 1043 of Public Law 104–106, or under section 1132 of Public Law 107– OFFICE OF PERSONNEL 107] MANAGEMENT Present value factor Age 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 PO 00000 .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... .......................................... Frm 00079 Fmt 4703 Sfmt 4703 295.8 292.7 289.5 286.2 282.7 279.1 275.4 271.6 267.7 263.8 259.9 255.8 251.7 247.3 242.8 238.0 233.0 228.0 222.8 217.4 212.0 206.4 Submission for Review: Report of Withholdings and Contributions for Health Benefits, Life Insurance and Retirement (Standard Form 2812); Report of Withholdings and Contributions for Health Benefits By Enrollment Code (Standard Form 2812–A); Supplemental Semiannual Headcount Report (OPM Form 1523), 3206–0262 Office of Personnel Management. ACTION: 30-day notice and request for comments. AGENCY: Trust Funds Group of the Office of Chief Financial Officer, Office of Personnel Management (OPM) offers the general public and other Federal agencies the opportunity to comment on changes to the existing information collection request (ICR) 3206–0262, Standard Form 2812, Standard Form 2812–A, and OPM Form 1523. As SUMMARY: E:\FR\FM\03APN1.SGM 03APN1

Agencies

[Federal Register Volume 80, Number 64 (Friday, April 3, 2015)]
[Notices]
[Pages 18265-18266]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-07694]


-----------------------------------------------------------------------

OFFICE OF PERSONNEL MANAGEMENT


Federal Employees' Retirement System; Present Value Factors

AGENCY: Office of Personnel Management.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Office of Personnel Management (OPM) is providing notice 
of adjusted present value factors applicable to retirees who elect to 
provide survivor annuity benefits to a spouse based on post-retirement 
marriage, and to retiring employees who elect the alternative form of 
annuity or elect to credit certain service with nonappropriated fund 
instrumentalities. This notice is necessary to conform the present 
value factors to changes in the economic and demographic assumptions 
adopted by the Board of Actuaries of the Civil Service Retirement 
System.

DATES: The revised present value factors apply to survivor reductions 
or employee annuities that commence on or after October 1, 2015.

ADDRESSES: Send requests for actuarial assumptions and data to the 
Board of Actuaries, care of Gregory Kissel, Senior Actuary, Office of 
Planning and Policy Analysis, Office of Personnel Management, Room 
4307, 1900 E Street NW., Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT: Karla Yeakle, (202) 606-0299.

SUPPLEMENTARY INFORMATION: Several provisions of the Federal Employees' 
Retirement System (FERS) require reduction of annuities on an actuarial 
basis. Under each of these provisions, OPM is required to issue 
regulations on the method of determining the reduction to ensure that 
the present value of the reduced annuity plus a lump-sum equals, to the 
extent practicable, the present value of the unreduced benefit. The 
regulations for each of these benefits provide that OPM will publish a 
notice in the Federal Register whenever it changes the factors used to 
compute the present values of these benefits.
    Section 842.706(a) of title 5, Code of Federal Regulations, 
prescribes the method for computing the reduction in the beginning rate 
of annuity payable to a retiree who elects an alternative form of 
annuity under 5 U.S.C. 8420a. That reduction is required to produce an 
annuity that is the actuarial equivalent of the annuity of a retiree 
who does not elect an alternative form of annuity. The present value 
factors listed below are used to compute the annuity reduction under 5 
CFR 842.706(a).
    Section 842.615 of title 5, Code of Federal Regulations, prescribes 
the use of these factors for computing the reduction required for 
certain elections to provide survivor annuity benefits based on a post-
retirement marriage or divorce under 5 U.S.C. 8416(b), 8416(c), or 
section 8417(b). Under section 11004 of the Omnibus Budget 
Reconciliation Act of 1993, Public Law 103-66, effective October 1, 
1993, OPM ceased collection of these survivor election deposits by 
means of either a lump-sum payment or installments. Instead, OPM is 
required to establish a permanent actuarial reduction in the annuity of 
the retiree. This means that OPM must take the amount of the deposit 
computed under the old law and translate it into a lifetime reduction 
in the retiree's benefit.
    Subpart F of part 847 of title 5, Code of Federal Regulations, 
prescribes the use of present value factors for computing the 
deficiency the retiree must pay to receive credit for certain service 
with nonappropriated fund instrumentalities made creditable by an 
election under section 1043 of Public Law 104-106. Subpart I of part 
847 of title 5, Code of Federal Regulations, prescribes the use of 
present value factors for employees that elect to credit 
nonappropriated fund instrumentality service to qualify for immediate 
retirement under section 1132 of Public Law 107-107.
    OPM published the present value factors currently in effect on May 
21, 2014, at 79 FR 29222 and on April 3, 2015, OPM published a notice 
to revise the normal cost percentage under the Federal Employees' 
Retirement System (FERS) Act of 1986, Public Law 99-335, based on 
changed demographic assumptions adopted by the Board of Actuaries of 
the Civil Service Retirement System. Under 5 U.S.C. 8461(i), those 
changes require corresponding changes in the present value factors used 
to produce actuarially equivalent benefits when required by the FERS 
Act. The revised factors will become effective on October 1, 2015, to 
correspond with the changes in FERS normal cost percentages. For 
alternative forms of annuity, the new factors will apply to annuities 
that commence on or after October 1, 2015. See 5 CFR 842.706. For 
survivor election deposits, the new factors will apply to survivor

[[Page 18266]]

reductions that commence on or after October 1, 2015. See 5 CFR 
842.615(b). For obtaining credit for service with certain 
nonappropriated fund instrumentalities, the new factors will apply to 
cases in which the date of computation under 5 CFR 847.603 or 847.809 
is on or after October 1, 2015. See 5 CFR 847.602(c), 847.603, and 
847.809.
    OPM is, therefore, revising the tables of present value factors to 
read as follows:

        Table I--FERS Present Value Factors for Ages 62 and Older
   [Applicable to annuity payable following an election under 5 U.S.C.
 8416(b), 8416(c), 8417(b), 8420a, under section 1043 of Public Law 104-
            106, or under section 1132 of Public Law 107-107]
------------------------------------------------------------------------
                                                           Present value
                           Age                                factor
------------------------------------------------------------------------
62......................................................           200.8
63......................................................           195.0
64......................................................           189.1
65......................................................           183.2
66......................................................           177.2
67......................................................           171.2
68......................................................           165.1
69......................................................           158.9
70......................................................           152.8
71......................................................           146.6
72......................................................           140.4
73......................................................           134.2
74......................................................           128.0
75......................................................           121.9
76......................................................           116.0
77......................................................           110.1
78......................................................           104.3
79......................................................            98.7
80......................................................            93.2
81......................................................            87.9
82......................................................            82.7
83......................................................            77.8
84......................................................            72.9
85......................................................            68.3
86......................................................            63.9
87......................................................            59.6
88......................................................            55.5
89......................................................            51.6
90......................................................            48.0
91......................................................            44.7
92......................................................            41.6
93......................................................            38.7
94......................................................            36.1
95......................................................            33.8
96......................................................            31.7
97......................................................            29.9
98......................................................            28.1
99......................................................            26.4
100.....................................................            24.9
101.....................................................            23.7
102.....................................................            22.5
103.....................................................            21.2
104.....................................................            20.2
105.....................................................            19.4
106.....................................................            18.4
107.....................................................            16.5
108.....................................................            12.9
109.....................................................             6.4
------------------------------------------------------------------------


      Table II.A--FERS Present Value Factors for Ages 40 Through 61
[Applicable to annuity payable when annuity is not increased by cost-of-
  living adjustments before age 62 following an election under 5 U.S.C.
 8416(b), 8416(c), 8417(b), 8420a, under section 1043 of Public Law 104-
            106, or under section 1132 of Public Law 107-107]
------------------------------------------------------------------------
                                                           Present value
                           Age                                factor
------------------------------------------------------------------------
40......................................................           216.8
41......................................................           216.5
42......................................................           216.1
43......................................................           215.6
44......................................................           215.1
45......................................................           214.6
46......................................................           214.0
47......................................................           213.4
48......................................................           212.8
49......................................................           212.2
50......................................................           211.7
51......................................................           211.1
52......................................................           210.5
53......................................................           209.8
54......................................................           209.0
55......................................................           208.2
56......................................................           207.2
57......................................................           206.2
58......................................................           205.1
59......................................................           204.1
60......................................................           203.0
61......................................................           201.9
------------------------------------------------------------------------


      Table II.B--FERS Present Value Factors for Ages 40 Through 61
  [Applicable to annuity payable when annuity is increased by cost-of-
  living adjustments before age 62 following an election under 5 U.S.C.
  8416(b), 8416(c), 8417(b), or 8420a, under section 1043 of Public Law
          104-106, or under section 1132 of Public Law 107-107]
------------------------------------------------------------------------
                                                           Present value
                           Age                                factor
------------------------------------------------------------------------
40......................................................           295.8
41......................................................           292.7
42......................................................           289.5
43......................................................           286.2
44......................................................           282.7
45......................................................           279.1
46......................................................           275.4
47......................................................           271.6
48......................................................           267.7
49......................................................           263.8
50......................................................           259.9
51......................................................           255.8
52......................................................           251.7
53......................................................           247.3
54......................................................           242.8
55......................................................           238.0
56......................................................           233.0
57......................................................           228.0
58......................................................           222.8
59......................................................           217.4
60......................................................           212.0
61......................................................           206.4
------------------------------------------------------------------------


 Table III--FERS Present Value Factors for Ages at Calculation Below 40
 [Applicable to annuity payable following an election under section 1043
   of Public Law 104-106 or under section 1132 of Public Law 107-107]
------------------------------------------------------------------------
                                                           Present value
                   Age at calculation                      of a monthly
                                                              annuity
------------------------------------------------------------------------
17......................................................           348.5
18......................................................           346.8
19......................................................           345.1
20......................................................           343.3
21......................................................           341.4
22......................................................           339.5
23......................................................           337.6
24......................................................           335.6
25......................................................           333.6
26......................................................           331.5
27......................................................           329.4
28......................................................           327.2
29......................................................           324.9
30......................................................           322.6
31......................................................           320.2
32......................................................           317.8
33......................................................           315.3
34......................................................           312.7
35......................................................           310.1
36......................................................           307.4
37......................................................           304.6
38......................................................           301.7
39......................................................           298.8
------------------------------------------------------------------------


U.S. Office of Personnel Management.
Katherine Archuleta,
Director.
[FR Doc. 2015-07694 Filed 4-2-15; 8:45 am]
BILLING CODE 6325-38-P
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