Federal Employees' Retirement System; Normal Cost Percentages, 22915-22916 [2019-10292]

Download as PDF Federal Register / Vol. 84, No. 97 / Monday, May 20, 2019 / Notices Date Document ADAMS Accession No. April 25, 2016 ...................... April 25, 2016 ...................... Consultation Letter: ML16120A553–RLSO ....................................................................................... Letter to M. Fris re: U.S. Nuclear Regulatory Commission Preliminary Determination of No Effects Regarding the Humboldt Bay Independent Spent Fuel Storage Installation Decommissioning Funding Plan. NRC staff’s Final EA for the approval of the decommissioning funding plan ................................... ML17083A015 ML16118A221 April 26, 2019 ...................... Dated at Rockville, Maryland, this 15th day of May 2019. For the Nuclear Regulatory Commission. John McKirgan, Chief, Spent Fuel Licensing Branch, Division of Spent Fuel Management, Office of Nuclear Material Safety and Safeguards. [FR Doc. 2019–10419 Filed 5–17–19; 8:45 am] BILLING CODE 7590–01–P OFFICE OF PERSONNEL MANAGEMENT Federal Employees’ Retirement System; Normal Cost Percentages Office of Personnel Management. ACTION: Notice. AGENCY: The Office of Personnel Management (OPM) is providing notice of revised normal cost percentages for employees covered by the Federal Employees’ Retirement System (FERS) Act of 1986. DATES: The revised normal cost percentages are effective at the beginning of the first pay period commencing on or after October 1, 2019. Agency appeals of the normal cost percentages must be filed no later than November 19, 2019. ADDRESSES: Send or deliver agency appeals of the normal cost percentages and requests for actuarial assumptions and data to the Board of Actuaries, care of Gregory Kissel, Senior Actuary, Office of Healthcare and Insurance, Office of Personnel Management, Room 4316, 1900 E Street NW, Washington, DC 20415. SUMMARY: FOR FURTHER INFORMATION CONTACT: Karla Yeakle, (202) 606–0299. The FERS Act of 1986, Public Law 99–335, created a new retirement system intended to cover most Federal employees hired after 1983. Most Federal employees hired before 1984 are under the older Civil Service Retirement System (CSRS). Section 8423 of title 5, United States Code, as added by the FERS Act of 1986, provides for the payment of the Government’s share of the cost of the retirement system under FERS. Employees’ contributions are SUPPLEMENTARY INFORMATION: khammond on DSKBBV9HB2PROD with NOTICES 22915 VerDate Sep<11>2014 16:41 May 17, 2019 Jkt 247001 established by law and constitute only a portion of the cost of funding the retirement system; employing agencies are required to pay the remaining costs. The amount of funding required, known as ‘‘normal cost,’’ is the entry age normal cost of the provisions of FERS that relate to the Civil Service Retirement and Disability Fund (Fund). The normal cost must be computed by OPM in accordance with generally accepted actuarial practices and standards (using dynamic assumptions). The normal cost calculations depend on economic and demographic assumptions. Subpart D of part 841 of title 5, Code of Federal Regulations, regulates how normal costs are determined. In its meeting on June 1, 2017, the Board of Actuaries of the Civil Service Retirement System (the Board) recommended revisions to the long term economic assumptions and recommended changes to the demographic assumptions used in the actuarial valuations of CSRS and FERS. The economic assumptions have decreased from the previous long term economic assumptions. The demographic assumptions include assumed rates of mortality, employee withdrawal, retirement, and merit and longevity pay increases. The revised demographic assumptions are generally based on the recent ten-year or twentyyear experience under the retirement systems, modified to reflect expected future experience where applicable. OPM has adopted the Board’s recommendations. On October 25, 2017, OPM published revised regulations related to the calculation of the FERS normal cost percentages. These regulations clarified the employee categories OPM uses to compute the FERS normal cost percentages and added a category of normal cost percentage for employees of the U.S. Postal Service. Because these revised regulations had not been published when the Board met on June 1, 2017, the recommended demographic assumptions reflect expected government-wide experience rather than separate postal-specific and non-postal specific experience. For non-postal employees, the normal cost percentage will reflect the economic assumptions PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 ML19120A216 and government-wide demographic assumptions determined by the Board at its June 1, 2017, meeting. The normal cost percentages for employees of the Postal Service will also reflect the economic assumptions determined by the Board at its June 1, 2017, meeting but will use demographic assumptions that are based on assumptions specific to the expected experience of postal employees. With regard to the economic assumptions described under section 841.402 of title 5, Code of Federal Regulations, used in the actuarial valuations of FERS, the Board concluded that it would be appropriate to assume a rate of investment return of 4.50 percent, a reduction of 0.75 percent from the existing rate of 5.25 percent. In addition, the Board determined that the assumed inflation rate should be reduced 0.50 percent from 3.00 percent to 2.50 percent, that the assumed rate of FERS annuitant Cost of Living Adjustments should remain at 80 percent of the assumed rate of inflation, and that the projected rate of General Schedule salary increases should be reduced 0.50 percent from 3.25 percent to 2.75 percent. These salary increases are in addition to assumed within-grade increases. These assumptions are intended to reflect the long term expected future experience of the Systems. The demographic assumptions are determined separately for each of a number of special groups, in cases where separate experience data is available. Based on the demographic and economic assumptions described above, OPM has determined the normal cost percentage for each category of employees under section 841.403 of title 5, Code of Federal Regulations. Section 5001 of Public Law 112–96, The Middle Class Tax Relief and Jobs Creation Act of 2012, established provisions for FERS Revised Annuity Employees (FERS–RAE). The law permanently increases the retirement contributions by 2.30 percent of pay for these employees. Subsequently, Section 401 of Public Law 113–67, the Bipartisan Budget Act of 2013, created another class of FERS coverage, FERSFurther Revised Annuity Employee (FERS–FRAE). Employees subject to E:\FR\FM\20MYN1.SGM 20MYN1 22916 Federal Register / Vol. 84, No. 97 / Monday, May 20, 2019 / Notices FERS–FRAE must pay an increase of 1.30 percent of pay above the retirement contribution percentage set for FERS– RAE. Separate normal cost percentages apply for employees covered under FERS–RAE and for employees covered under FERS–FRAE. The normal cost percentages for each category of employee, including the employee contributions, are as follows: NORMAL COST PERCENTAGES FOR FERS, FERS-REVISED ANNUITY EMPLOYEE (RAE), AND FERS-FURTHER REVISED ANNUITY (FRAE) GROUPS FERS Normal cost (percent) Group Members ...................................................................................................................................... Congressional employees, including members of the Capitol Police ......................................... Law enforcement officers, members of the Supreme Court Police, firefighters, nuclear materials couriers, customs and border protection officers, and employees under section 302 of the Central Intelligence Agency Retirement Act of 1964 for certain employees .................... Air traffic controllers ..................................................................................................................... Military reserve technicians ......................................................................................................... Employees under section 303 of the Central Intelligence Agency Retirement Act of 1964 for certain employees (when serving abroad) ............................................................................... Other employees of the United States Postal Service ................................................................ All other regular FERS employees .............................................................................................. Under section 841.408 of title 5, Code of Federal Regulations, these normal cost percentages are effective at the beginning of the first pay period commencing on or after October 1, 2019. The time limit and address for filing agency appeals under sections 841.409 through 841.412 of title 5, Code of Federal Regulations, are stated in the DATES and ADDRESSES sections of this notice. Office of Personnel Management. Alexys Stanley, Regulatory Affairs Analyst. BILLING CODE 6325–38–P POSTAL SERVICE Privacy Act of 1974; System of Records Postal ServiceTM. ACTION: Notice of a modified system of records; response to comments. AGENCY: The United States Postal Service® (Postal Service) is responding to public comments regarding revisions to a Customer Privacy Act Systems of Records (SOR). These revisions were made to support the Targeted Offers Powered by Informed Address (IA) service initiative, within the Informed Delivery platform. There will be no changes to the system of records or the implementation date of March 11, 2019 in light of the public comments. DATES: The revisions to USPS SOR 820.300 Informed Delivery were originally scheduled to be effective on March 11, 2019, without further notice. After review and evaluation of comments received, the Postal Service khammond on DSKBBV9HB2PROD with NOTICES VerDate Sep<11>2014 16:41 May 17, 2019 Jkt 247001 FOR FURTHER INFORMATION CONTACT: Janine Castorina, Chief Privacy and Records Management Officer, Privacy and Records Office, United States Postal Service, 475 L’Enfant Plaza SW, Room 1P830, Washington, DC 20260–1101, telephone 202–268–3069, or privacy@ usps.gov. On February 7, 2019, the Postal Service published notice of its intent to modify an existing system of records, USPS 820.300 Informed Delivery to support the Targeted Offers application. Targeted Offers Powered by Informed Address (‘‘Targeted Offers’’) is an application that will enable consumers to securely share their preferences related to marketing content with mailers, and mailers to target and prospect consumers based on this data. Targeted Offers will be incorporated into the Informed Delivery platform, allowing the Postal Service to capitalize on Informed Delivery’s success and existing user base. As a new feature of Informed Delivery, Targeted Offers will encourage new user adoption and provide additional benefits for current users. The Postal Service provides the following responses to the comments received pursuant to its Federal Register notice regarding Targeted Offers Powered by Informed Address service: (1) Comment: The comments received question the Postal Service’s perceived SUPPLEMENTARY INFORMATION: [FR Doc. 2019–10292 Filed 5–17–19; 8:45 am] SUMMARY: has found that no substantive changes to the system of records are required, and that the effective date for the implementation of the proposed revisions should proceed as scheduled. PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 FERS-RAE normal cost (percent) FERS–FRAE normal cost (percent) 23.5 25.2 17.3 19.4 17.5 19.6 34.7 34.5 19.5 35.2 35.0 19.9 35.4 35.1 20.2 23.8 15.5 16.8 24.4 15.9 17.3 24.6 16.1 17.5 expansion of its collection of personally identifiable information. Answer: This system of records update does not expand any current collection policies, therefore the Postal Service views these comments as directed at its Informed Delivery System as a whole, and not the particular modifications to the existing system of records for which notice was provided. As such, no response is required to said comments. (2) Comment: Is it the intent of the Postal Service to limited Informed Delivery and/or Informed Address to letters only? Answer: The Postal Service intends to offer this service to consumers for all physical mail delivered via Informed Delivery. Brittany M. Johnson, Attorney, Federal Compliance. [FR Doc. 2019–10457 Filed 5–17–19; 8:45 am] BILLING CODE 7710–12–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–85855; File No. SR–C2– 2019–010] Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Add Certain Fees Related to the Listing and Trading of Options Contracts on the Dow Jones Industrial Average Index (‘‘DJX’’) May 14, 2019. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the E:\FR\FM\20MYN1.SGM 20MYN1

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[Federal Register Volume 84, Number 97 (Monday, May 20, 2019)]
[Notices]
[Pages 22915-22916]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-10292]


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OFFICE OF PERSONNEL MANAGEMENT


Federal Employees' Retirement System; Normal Cost Percentages

AGENCY: Office of Personnel Management.

ACTION: Notice.

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

SUMMARY: The Office of Personnel Management (OPM) is providing notice 
of revised normal cost percentages for employees covered by the Federal 
Employees' Retirement System (FERS) Act of 1986.

DATES: The revised normal cost percentages are effective at the 
beginning of the first pay period commencing on or after October 1, 
2019. Agency appeals of the normal cost percentages must be filed no 
later than November 19, 2019.

ADDRESSES: Send or deliver agency appeals of the normal cost 
percentages and requests for actuarial assumptions and data to the 
Board of Actuaries, care of Gregory Kissel, Senior Actuary, Office of 
Healthcare and Insurance, Office of Personnel Management, Room 4316, 
1900 E Street NW, Washington, DC 20415.

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

SUPPLEMENTARY INFORMATION: The FERS Act of 1986, Public Law 99-335, 
created a new retirement system intended to cover most Federal 
employees hired after 1983. Most Federal employees hired before 1984 
are under the older Civil Service Retirement System (CSRS). Section 
8423 of title 5, United States Code, as added by the FERS Act of 1986, 
provides for the payment of the Government's share of the cost of the 
retirement system under FERS. Employees' contributions are established 
by law and constitute only a portion of the cost of funding the 
retirement system; employing agencies are required to pay the remaining 
costs. The amount of funding required, known as ``normal cost,'' is the 
entry age normal cost of the provisions of FERS that relate to the 
Civil Service Retirement and Disability Fund (Fund). The normal cost 
must be computed by OPM in accordance with generally accepted actuarial 
practices and standards (using dynamic assumptions). The normal cost 
calculations depend on economic and demographic assumptions. Subpart D 
of part 841 of title 5, Code of Federal Regulations, regulates how 
normal costs are determined.
    In its meeting on June 1, 2017, the Board of Actuaries of the Civil 
Service Retirement System (the Board) recommended revisions to the long 
term economic assumptions and recommended changes to the demographic 
assumptions used in the actuarial valuations of CSRS and FERS. The 
economic assumptions have decreased from the previous long term 
economic assumptions. The demographic assumptions include assumed rates 
of mortality, employee withdrawal, retirement, and merit and longevity 
pay increases. The revised demographic assumptions are generally based 
on the recent ten-year or twenty-year experience under the retirement 
systems, modified to reflect expected future experience where 
applicable. OPM has adopted the Board's recommendations.
    On October 25, 2017, OPM published revised regulations related to 
the calculation of the FERS normal cost percentages. These regulations 
clarified the employee categories OPM uses to compute the FERS normal 
cost percentages and added a category of normal cost percentage for 
employees of the U.S. Postal Service. Because these revised regulations 
had not been published when the Board met on June 1, 2017, the 
recommended demographic assumptions reflect expected government-wide 
experience rather than separate postal-specific and non-postal specific 
experience. For non-postal employees, the normal cost percentage will 
reflect the economic assumptions and government-wide demographic 
assumptions determined by the Board at its June 1, 2017, meeting. The 
normal cost percentages for employees of the Postal Service will also 
reflect the economic assumptions determined by the Board at its June 1, 
2017, meeting but will use demographic assumptions that are based on 
assumptions specific to the expected experience of postal employees.
    With regard to the economic assumptions described under section 
841.402 of title 5, Code of Federal Regulations, used in the actuarial 
valuations of FERS, the Board concluded that it would be appropriate to 
assume a rate of investment return of 4.50 percent, a reduction of 0.75 
percent from the existing rate of 5.25 percent. In addition, the Board 
determined that the assumed inflation rate should be reduced 0.50 
percent from 3.00 percent to 2.50 percent, that the assumed rate of 
FERS annuitant Cost of Living Adjustments should remain at 80 percent 
of the assumed rate of inflation, and that the projected rate of 
General Schedule salary increases should be reduced 0.50 percent from 
3.25 percent to 2.75 percent. These salary increases are in addition to 
assumed within-grade increases. These assumptions are intended to 
reflect the long term expected future experience of the Systems.
    The demographic assumptions are determined separately for each of a 
number of special groups, in cases where separate experience data is 
available. Based on the demographic and economic assumptions described 
above, OPM has determined the normal cost percentage for each category 
of employees under section 841.403 of title 5, Code of Federal 
Regulations.
    Section 5001 of Public Law 112-96, The Middle Class Tax Relief and 
Jobs Creation Act of 2012, established provisions for FERS Revised 
Annuity Employees (FERS-RAE). The law permanently increases the 
retirement contributions by 2.30 percent of pay for these employees. 
Subsequently, Section 401 of Public Law 113-67, the Bipartisan Budget 
Act of 2013, created another class of FERS coverage, FERS-Further 
Revised Annuity Employee (FERS-FRAE). Employees subject to

[[Page 22916]]

FERS-FRAE must pay an increase of 1.30 percent of pay above the 
retirement contribution percentage set for FERS-RAE. Separate normal 
cost percentages apply for employees covered under FERS-RAE and for 
employees covered under FERS-FRAE.
    The normal cost percentages for each category of employee, 
including the employee contributions, are as follows:

 Normal Cost Percentages for FERS, FERS-Revised Annuity Employee (RAE), and FERS-Further Revised Annuity (FRAE)
                                                     Groups
----------------------------------------------------------------------------------------------------------------
                                                                                     FERS-RAE        FERS-FRAE
                              Group                                 FERS Normal     normal cost     normal cost
                                                                  cost (percent)     (percent)       (percent)
----------------------------------------------------------------------------------------------------------------
Members.........................................................            23.5            17.3            17.5
Congressional employees, including members of the Capitol Police            25.2            19.4            19.6
Law enforcement officers, members of the Supreme Court Police,              34.7            35.2            35.4
 firefighters, nuclear materials couriers, customs and border
 protection officers, and employees under section 302 of the
 Central Intelligence Agency Retirement Act of 1964 for certain
 employees......................................................
Air traffic controllers.........................................            34.5            35.0            35.1
Military reserve technicians....................................            19.5            19.9            20.2
Employees under section 303 of the Central Intelligence Agency              23.8            24.4            24.6
 Retirement Act of 1964 for certain employees (when serving
 abroad)........................................................
Other employees of the United States Postal Service.............            15.5            15.9            16.1
All other regular FERS employees................................            16.8            17.3            17.5
----------------------------------------------------------------------------------------------------------------

    Under section 841.408 of title 5, Code of Federal Regulations, 
these normal cost percentages are effective at the beginning of the 
first pay period commencing on or after October 1, 2019.
    The time limit and address for filing agency appeals under sections 
841.409 through 841.412 of title 5, Code of Federal Regulations, are 
stated in the DATES and ADDRESSES sections of this notice.

    Office of Personnel Management.
Alexys Stanley,
Regulatory Affairs Analyst.
[FR Doc. 2019-10292 Filed 5-17-19; 8:45 am]
 BILLING CODE 6325-38-P
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