Federal Employees' Retirement System; Normal Cost Percentage for Certain Members of the Capitol Police, 59377-59378 [2020-20783]

Download as PDF 59377 Rules and Regulations Federal Register Vol. 85, No. 184 Tuesday, September 22, 2020 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. 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 Office of Personnel Management. ACTION: Final rule. AGENCY: The Office of Personnel Management (OPM) is adopting its 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: This rule becomes effective on October 1, 2020. 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 SUMMARY: VerDate Sep<11>2014 16:32 Sep 21, 2020 Jkt 250001 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 final rule amends 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 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 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 a separate category. 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.’’ OPM received no written comments on the proposed rule published July 2, 2020 (85 FR 39851). 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. 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. E:\FR\FM\22SER1.SGM 22SER1 59378 Federal Register / Vol. 85, No. 184 / Tuesday, September 22, 2020 / Rules and Regulations 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. VerDate Sep<11>2014 16:32 Sep 21, 2020 Jkt 250001 Office of Personnel Management. Alexys Stanley, Regulatory Affairs Analyst. For the reasons stated in the preamble, the Office of Personnel Management amends 5 CFR part 841 as follows: employee death benefit in 36 installments under the Federal Employees’ Retirement System (FERS) Act of 1986. These rules are necessary to ensure that the tables conform to the economic and demographic assumptions adopted by the Board of Actuaries and published in the Federal Register on April 6, 2020, as required by the United States Code. PART 841—FEDERAL EMPLOYEES RETIREMENT SYSTEM—GENERAL ADMINISTRATION DATES: 1. The authority citation for part 841 continues to read as follows: FOR FURTHER INFORMATION CONTACT: ■ 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. 2. Amend § 841.403 by revising paragraph (b), redesignating paragraphs (c) through (h) as paragraphs (d) through (i), and adding new paragraph (c) to read as follows: ■ § 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. 2020–20783 Filed 9–21–20; 8:45 am] BILLING CODE 6325–38–P OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 843 RIN 3206–AO03 Federal Employees’ Retirement System; Present Value Conversion Factors for Spouses of Deceased Separated Employees Office of Personnel Management. ACTION: Final rule. AGENCY: The Office of Personnel Management (OPM) is adopting its proposed rule to revise the table of reduction factors for early commencing dates of survivor annuities for spouses of separated employees who die before the date on which they would be eligible for unreduced deferred annuities, and to revise the annuity factor for spouses of deceased employees who die in service when those spouses elect to receive the basic SUMMARY: PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 This rule becomes effective on October 1, 2020. Karla Yeakle, (202) 606–0299. On April 6, 2020, OPM published at 85 FR 19174, a notice 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. By statute under 5 U.S.C. 8461(i), the revisions to the actuarial assumptions require corresponding changes in factors used to produce actuarially equivalent benefits when required by the FERS Act. As a result, on July 2, 2020, at 85 FR 39852, OPM published a proposed rule in the Federal Register to revise the table of reduction factors in Appendix A to subpart C of part 843, Code of Federal Regulations, for early commencing dates of survivor annuities for spouses of separated employees who die before the date on which they would be eligible for unreduced deferred annuities, and to revise the annuity factor for spouses of deceased employees who die in service when those spouses elect to receive the basic employee death benefit in 36 installments under 5 CFR 843.309. OPM received no written comments on the proposed rule. SUPPLEMENTARY INFORMATION: 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. E:\FR\FM\22SER1.SGM 22SER1

Agencies

[Federal Register Volume 85, Number 184 (Tuesday, September 22, 2020)]
[Rules and Regulations]
[Pages 59377-59378]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20783]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 85, No. 184 / Tuesday, September 22, 2020 / 
Rules and Regulations

[[Page 59377]]


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

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: Final rule.

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

SUMMARY: The Office of Personnel Management (OPM) is adopting its 
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: This rule becomes effective on October 1, 2020.

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 final rule amends 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 a 
separate category. 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.'' OPM received no 
written comments on the proposed rule published July 2, 2020 (85 FR 
39851).

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.

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.

[[Page 59378]]

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 amends 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.


0
2. Amend Sec.  841.403 by revising paragraph (b), redesignating 
paragraphs (c) through (h) as paragraphs (d) through (i), and adding 
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. 2020-20783 Filed 9-21-20; 8:45 am]
BILLING CODE 6325-38-P
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