Federal Employees' Retirement System; Normal Cost Percentage for Certain Members of the Capitol Police, 39851-39852 [2020-13610]

Agencies

• Office of Personnel Management

[Federal Register Volume 85, Number 128 (Thursday, July 2, 2020)]
[Proposed Rules]
[Pages 39851-39852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13610]


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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.

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Federal Register / Vol. 85, No. 128 / Thursday, July 2, 2020 / 
Proposed Rules

[[Page 39851]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 841

RIN 3206-AO02


Federal Employees' Retirement System; Normal Cost Percentage for 
Certain Members of the Capitol Police

AGENCY: Office of Personnel Management.

ACTION: Proposed rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing a proposed 
rule to revise the categories of employees for computation of normal 
cost percentages for certain members of the Capitol Police who are 
covered by the Federal Employees' Retirement System (FERS) Act of 1986.

DATES: Send comments on or before August 31, 2020.

ADDRESSES: You may submit comments identified by docket number and/or 
Regulatory Information Number (RIN) and title, by the following method:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
    All submissions received must include the agency name and docket 
number or RIN for this document. The general policy for comments and 
other submissions from members of the public is to make these 
submissions available for public viewing at https://www.regulations.gov 
as they are received without change, including any personal identifiers 
or contact information.

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

SUPPLEMENTARY INFORMATION: On April 6, 2020, OPM published notice 85 FR 
19174 in the Federal Register to revise the normal cost percentages 
under the Federal Employees' Retirement System (FERS) Act of 1986, 
Public Law 99-335, 100 Stat. 514, as amended, based on economic 
assumptions and demographic factors adopted by the Board of Actuaries 
of the Civil Service Retirement System. As a result of new legislation 
enacted on December 20, 2019, under sec. 211 of title II, division E of 
Public Law 116-94, the Further Consolidated Appropriations Act, 2020, 
OPM was required to provide separate normal cost percentages for 
certain members of the Capitol Police as distinct from other 
Congressional Employees. Prior to the enactment of the Further 
Consolidated Appropriations Act, 2020, members of the Capitol Police 
were combined with Congressional Employees for the purpose of 
determining the normal cost percentages for those employee populations. 
This rule is necessary to ensure that the rules for computation of 
normal cost percentages are consistent with the categories of employees 
as provided under 5 U.S.C. 8423(a)(1)(B)(i), as amended by sec. 211 of 
title II, division E of Public Law 116-94, the Further Consolidated 
Appropriations Act, 2020.
    The Middle Class Tax Relief and Jobs Creation Act of 2012, sec. 
5001 of Public Law 112-96, 126 Stat. 157, and subsequently, sect. 401 
of Public Law 113-67, 113 Stat. 1165, the Bipartisan Budget Act of 
2013, increased the retirement contributions for certain FERS employees 
(Revised Annuity Employees (FERS-RAE) and Further Revised Annuity 
Employees (FERS-FRAE)) and established separate FERS deduction rates 
for Congressional employees and members of the Capitol Police. These 
Acts reduced the retirement annuity accrual rates of new legislative 
(Congressional) branch employees (other than Capitol Police) equal to 
that of most regular federal employees, while the retirement accrual 
rates for new Capitol Police remained at an enhanced level. Despite the 
difference in annuity benefits, these Acts did not establish separate 
employee categories for the computation of normal cost percentages for 
Capitol Police versus other legislative branch employees. With the 
passage of the Further Consolidated Appropriations Act, 2020, members 
of the Capitol Police covered under 5 U.S.C. 8412(d) and 5 U.S.C. 
8425(c), who receive enhanced retirement accrual rates similar to that 
of law enforcement officers under 5 U.S.C. 8415(e), have been removed 
from the Congressional employee normal cost category and now have their 
own normal cost category.
    Section 841.403 of title 5, Code of Federal Regulations, regulates 
the categories of employees for computation of normal cost percentages 
that the government is required to pay for employees under 5 U.S.C. 
8423. OPM's proposed rule would amend its regulation under 5 CFR 
841.403 to eliminate the category of ``Congressional employees, 
including members of the Capitol Police,'' and to establish separate 
normal cost percentages for certain members of the Capitol Police and 
for Congressional employees in compliance with sec. 211 of title II, 
division E of Public Law 116-94, the Further Consolidated 
Appropriations Act, 2020. In accordance with the Further Consolidated 
Appropriations Act, 2020, 5 CFR 841.403 must list members of the 
Capitol Police covered under 5 U.S.C. 8412(d) and 5 U.S.C. 8425(c) as 
separate categories. All other Capitol Police, who are not members 
covered under 5 U.S.C. 8412(d) and 5 U.S.C. 8425(c), will fall under 
the new category of ``other Congressional employees.''

Regulatory Impact Analysis

    OPM has examined the impact of this 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 was not designated as a ``significant regulatory 
action,'' under Executive Order 12866.

Reducing Regulation and Controlling Regulatory Costs

    This rule is not an E.O. 13771 regulatory action because this rule 
is related to agency organization, management, or personnel.

Regulatory Flexibility Act

    The Office of Personnel Management certifies that this rule will 
not have a significant economic impact on a substantial number of small 
entities.

[[Page 39852]]

Federalism

    We have examined this rule in accordance with Executive Order 
13132, Federalism, and have determined that this rule will not have any 
negative impact on the rights, roles and responsibilities of State, 
local, or tribal governments.

Civil Justice Reform

    This regulation meets the applicable standard set forth in 
Executive Order 12988.

Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by state, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any year and it will not significantly or uniquely 
affect small governments. Therefore, no actions were deemed necessary 
under the provisions of the Unfunded Mandates Reform Act of 1995.

Congressional Review Act

    This action pertains to agency management, personnel, and 
organization and does not substantially affect the rights or 
obligations of nonagency parties and, accordingly, is not a ``rule'' as 
that term is used by the Congressional Review Act (Subtitle E of the 
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)). 
Therefore, the reporting requirement of 5 U.S.C. 801 does not apply.

Paperwork Reduction Act

    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall any person be subject to a penalty for failure 
to comply with a collection of information subject to the requirements 
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid Office 
of Management and Budget (OMB) Control Number.
    This rule involves an OMB approved collection of information 
subject to the PRA Application for Death Benefits (FERS)/Documentation 
and Elections in Support of Application for Death Benefits when 
Deceased was an Employee at the Time of Death (FERS), 3206-0172. The 
public reporting burden for this collection is estimated to average 60 
minutes per response, including time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information. The 
total burden hour estimate for this form is 16,751 hours. The systems 
of record notice for this collection is: OPM SORN CENTRAL-1-Civil 
Service Retirement and Insurance Records.

List of Subjects in 5 CFR Part 841

    Administrative practice and procedure, Air traffic controllers, 
Claims, Disability benefits, Firefighters, Government employees, Income 
taxes, Intergovernmental relations, Law enforcement officers, Pensions, 
Retirement.

    Office of Personnel Management.
Alexys Stanley,
Regulatory Affairs Analyst.

    For the reasons stated in the preamble, the Office of Personnel 
Management proposes to amend 5 CFR part 841 as follows:

PART 841--FEDERAL EMPLOYEES RETIREMENT SYSTEM--GENERAL 
ADMINISTRATION

0
1. The authority citation for part 841 continues to read as follows:

    Authority: 5 U.S.C. 8461; Sec. 841.108 also issued under 5 
U.S.C. 552a; Secs. 841.110 and 841.111 also issued under 5 U.S.C. 
8470(a); subpart D also issued under 5 U.S.C. 8423; Sec. 841.504 
also issued under 5 U.S.C. 8422; Sec. 841.507 also issued under 
section 505 of Pub. L. 99-335; subpart J also issued under 5 U.S.C. 
8469; Sec. 841.506 also issued under 5 U.S.C. 7701(b)(2); Sec. 
841.508 also issued under section 505 of Pub. L. 99-335; Sec. 
841.604 also issued under Title II, Pub. L. 106-265, 114 Stat. 780.

Subpart D--Government Costs

0
2. Amend Sec.  841.403 by redesignating paragraphs (c) through (h) as 
paragraphs (d) through (i) respectively, revise paragraph (b), and add 
new paragraph (c) to read as follows:


Sec.  841.403  Categories of employees for computation of normal cost 
percentages.

* * * * *
    (b) Capitol Police covered under 5 U.S.C. 8412(d) and 5 U.S.C. 
8425(c);
    (c) Other Congressional employees;
* * * * *
[FR Doc. 2020-13610 Filed 7-1-20; 8:45 am]
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