Representative Payees Under the Civil Service Retirement System and Federal Employees' Retirement System, 13217-13221 [2021-04628]
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13217
Proposed Rules
Federal Register
Vol. 86, No. 43
Monday, March 8, 2021
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 849
RIN 3206–AO08
Representative Payees Under the Civil
Service Retirement System and
Federal Employees’ Retirement
System
Office of Personnel
Management.
ACTION: Proposed rule.
AGENCY:
The Office of Personnel
Management (OPM) is issuing a
proposed rule to promulgate regulations
which administer the representative
payee program authorized by statute.
This proposed rule is necessary to
ensure proper procedures for annuity
payments due minors or individuals
who are mentally incompetent or under
other legal disability and are unable to
manage their respective payments.
DATES: Send comments on or before
May 7, 2021.
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:
Michael Shipley, (202) 606–0299.
SUPPLEMENTARY INFORMATION: Under the
Civil Service Retirement System (CSRS),
the provisions of Public Law 89–554,
Sept. 6, 1966, 80 Stat. 582 authorized
the United States Civil Service
Commission, precursor to the United
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SUMMARY:
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States Office of Personnel Management
(OPM), to make payments due a minor
or an individual mentally incompetent,
or under other legal disability, to a
person who is constituted guardian or
other fiduciary by the law of the State
of residence of the claimant or any
person, who in the judgment of the
Commission, is responsible for the care
of the claimant. Similarly, the Federal
Employees’ Retirement System (FERS)
Act of 1986, Public Law 99–335, Title I,
section 101(a), June 6, 1986, 100 Stat.
575, authorized OPM to make the same
payments under FERS. According to
these statutes, OPM has historically
authorized these payments to
individuals, and in some instances,
organizations on behalf of the annuitant
as representative payees.
On March 18, 2020, Congress enacted
Public Law 116–126, 134 Stat. 174–177
(2020), the Representative Payee Fraud
Prevention Act of 2019 (the Act), which
made numerous changes to existing
statutes regarding representative payees.
First the Act officially defined the term
representative payee under both CSRS
and FERS as the ‘‘person (including an
organization) designated . . . to receive
payment on behalf of a minor or an
individual mentally incompetent or
under other legal disability’’ at 5 U.S.C.
8331(33) and 5 U.S.C. 8401(39),
respectively. Ensuring that organization
was added to the definition recognizes
that other entities, such as agencies,
institutions, nursing homes, et al., may
serve as representative payees.
Congress also enacted 5 U.S.C. 8345a
and 8466a to address the embezzlement
or conversion of payments. Congress
made it unlawful for a representative
payee to use the funds received as a
representative payee for any use other
than the use and benefit of the
individual on whose behalf the
payments were received. OPM was
given the authority to revoke
certification as a representative payee, if
we determine that a representative
payee has embezzled or converted the
annuity payments, and to certify
payments to another representative
payee or directly to the annuitant.
Congress set forth the penalty for misuse
of benefits by a representative payee,
under title 18 U.S.C., as a fine,
imprisonment for not more than 5 years,
or both.
Furthermore, in selecting a
representative payee, OPM was granted
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authority to defer or suspend the
annuity payment until a representative
payee is located, if we determine that
paying the annuitant directly would
cause substantial harm to the annuitant.
Substantial harm exists if both of the
following conditions exist:
(1) Direct payment of benefits can be
expected to cause serious physical or
mental injury to the individual; and
(2) The potential effect of the injury
outweighs the effect of having no
income to meet the basic needs of the
individual.
We have included this language
concerning substantial harm to the
proposed regulations.
Finally, the Act created limitations on
who can be appointed as a
representative payee. Individuals that
have been convicted of a violation of: (1)
5 U.S.C. 8345a or 8466a; (2) section 208
or 1632 of the Social Security Act (42
U.S.C. 408, 1383a); or (3) section 6101
of title 38, are barred from serving as a
representative payee.
OPM is promulgating the proposed
regulations to fully implement and
administer the representative payee
program for CSRS and FERS. The
regulations are required to prevent
misuse and fraud by representative
payees.
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 was not designated as a ‘‘significant
regulatory action,’’ under Executive
Order 12866.
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,
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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.
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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.
OPM believes the changes proposed
in this document do not impose
additional information collection
requirements to the paperwork burden
previously approved for the following
Office of Management and Budget
Control numbers:
• 3206–0140—Representative Payee
Application/Information Necessary for a
Competency Determination which is
comprised of 2 forms—an application
form with a burden of 30 minutes and
a separate form for a competency
determination with a burden of 60
minutes.
• 3206–0208—Representative Payee
Survey with a burden of 20 minutes.
These burden numbers include time
for reviewing instructions, searching
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existing data sources, gathering and
maintaining the data needed, and
completing and reviewing the collection
of information. The systems of record
notice for this collection is: https://
www.opm.gov/informationmanagement/privacy-policy/sorn/opmsorn-central-1-civil-service-retirementand-insurance-records.pdf. (OPM SORN
CENTRAL–1–Civil Service Retirement
and Insurance Records.)
List of Subjects in 5 CFR Part 849
Claims, Disability benefits, Fraud,
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 add 5 CFR part
849 to read as follows:
PART 849—REPRESENTATIVE
PAYEES
Subpart A—General Provisions
Sec.
849.101 Applicability and purpose.
849.102 Definitions.
849.103 Implementing directives.
Subpart B—Determining Whether or Not
Representative Payment Is Appropriate
849.201 When to make payment to a
representative payee.
849.202 Payment of annuity while finding a
suitable representative payee.
849.203 Information considered in
determining whether to appoint a
representative payee.
Subpart C—Selection of a Representative
Payee
849.301 Information considered in selecting
a representative payee.
849.302 Order of preference in selecting a
representative payee.
849.303 Individuals who may not serve as
a representative payee.
849.304 Selecting a representative payee.
849.305 Notice of determination to select a
representative payee.
Subpart D—Responsibility and
Accountability of a Representative Payee
849.401 Responsibilities of a representative
payee.
849.402 Use of payments.
849.403 Accountability of a representative
payee.
Subpart E—Misuse of Annuity by a
Representative Payee
849.501 Misuse of benefits by a
representative payee.
849.502 Liability for misused funds.
Subpart F—Changes to the Representative
Payee
849.601 When new a representative payee
will be selected.
849.602 When representative payments will
be stopped.
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849.603 Transfer of conserved or
accumulated funds.
Authority: 5 U.S.C. 8331; 5 U.S.C. 8345(e)–
(f); 5 U.S.C. 8345a; 5 U.S.C. 8401; 5 U.S.C.
8461; 5 U.S.C. 8466(c)–(d); 5 U.S.C. 8466a.
Subpart A—General Provisions
§ 849.101
Applicability and purpose.
This part contains regulations of the
Office of Personnel Management (OPM)
to implement the provisions 5 U.S.C.
8345(e)–(f), 8345a, 8466(c)–(d), and
8466a regarding payment of an annuity
to a representative payee. This part
establishes the criteria OPM uses to
determine if representative payments
are appropriate, the information OPM
uses to select a representative payee, the
responsibilities of a representative
payee, the accountability of a
representative payee, the limitations on
the appointment of a representative
payee, and the definition of and penalty
for misuse of benefits by the
representative payee.
§ 849.102
Definitions.
As used in this part:
Agency means the Office of Personnel
Management (OPM).
CSRS means the Civil Service
Retirement System as described in
subchapter III of chapter 83 of title 5,
United States Code.
FERS means the Federal Employees’
Retirement System as described in
chapter 84 of title 5, United States Code.
Misuse of benefits means the
embezzlement or conversion of all or
any part of the amount received by the
representative payee for a use other than
for the use and benefit of the minor or
individual on whose behalf such
payments were received.
Representative payee means a person,
who is at least 18 years of age, or an
organization designated to receive
annuity payments on behalf of a minor
or an individual mentally incompetent
or under other legal disability.
§ 849.103
Implementing directives.
The Director may prescribe, in the
form he or she deems appropriate, such
detailed procedures as are necessary to
carry out the purpose of this part.
Subpart B—Determining Whether or
Not Representative Payment is
Appropriate
§ 849.201 When to make payment to a
representative payee.
The agency will make payment to a
representative payee—
(a) If payments are due to a minor
under the age of 18; or
(b) If payments are due to an
annuitant or survivor who is mentally
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incompetent or under other legal
disability; or
(c) If payments are due to an
annuitant when the annuitant is
physically or mentally incapable of
managing or directing the management
of his or her benefit.
§ 849.202 Payment of annuity while finding
a suitable representative payee.
(a) Annuity payments will be made
directly to the annuitant or survivor
annuitant while a suitable
representative payee is located, unless
the agency determines that direct
payment would cause substantial harm
to the individual.
(b) Substantial harm exists if both of
the following conditions exist:
(1) Direct payment of benefits can be
expected to cause serious physical or
mental injury to the individual; and
(2) The potential effect of the injury
outweighs the effect of having no
income to meet the basic needs of the
individual.
(c) If the agency determines that direct
payment of benefits would cause
substantial harm to the annuitant,
annuity payments may be deferred (in
the case of initial entitlement to
benefits) or suspended (in the case of
existing entitlement to benefits) until
such time as a representative payee is
appointed.
(d) Annuity payments will commence
or resume as soon as practicable and
will include all retroactive payments
due to be paid.
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§ 849.203 Information considered in
determining whether to appoint a
representative payee.
In determining whether to appoint a
representative payee, the agency will
consider the following information:
(a) Evidence of legal guardianship or
other court determinations. Evidence of
the appointment of a legal guardian or
other person legally vested with the care
of the individual or estate of an
incompetent or a minor shall be a
certified copy of the court’s
determination.
(b) Medical evidence. The agency will
use medical evidence to help determine
whether an annuitant is capable of
managing or directing the management
of benefit payments. For example, a
statement by a physician or other
medical professional, based upon his or
her recent examination of the annuitant
and his or her knowledge of the
annuitant’s present condition, will be
used in the agency’s determination, if it
includes information concerning the
nature of the annuitant’s illness or
disability, the annuitant’s chances for
recovery and the opinion of the
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physician or other medical professional
as to whether the annuitant is able to
manage or direct the management of
benefit payments.
(c) Other evidence. The agency may
also require statements of relatives,
friends, or other people in a position to
know and observe the annuitant, which
contain information helpful to the
agency in deciding whether the
annuitant is able to manage or direct the
management of benefit payments.
Subpart C—Selection of a
Representative Payee
§ 849.301 Information considered in
selecting a representative payee.
The goal in selecting a payee is to
select the person, organization, or
institution that will best serve the
interest of the annuitant. In making the
selection, the agency considers—
(a) The age of the representative payee
applicant. An individual must be over
the age of 18 to serve as a representative
payee, except as listed in § 849.303(a);
(b) The relationship of the person,
organization, or institution to the
annuitant;
(c) Legal authority, in the form of
conservatorship or guardianship, that
the person, organization or institution
has to act on behalf of the annuitant;
(d) The amount of concern that the
person or organization shows in the
annuitant;
(e) Whether the potential payee has
custody of the annuitant;
(f) Whether the potential payee is in
a position to know of and look after the
needs of the annuitant;
(g) Whether the representative payee
applicant is currently serving, or has
previously served, as a representative
payee for other annuitants; and
(h) The potential representative
payee’s criminal history.
§ 849.302 Order of preference in selecting
a representative payee.
As a guide in selecting a
representative payee, categories of
preferred payees are set out in
paragraphs (a) through (e) of this
section. The primary concern of the
agency is to select the payee who will
best serve the annuitant’s interest. The
preferences, in descending order of
importance, are:
(a) A legal conservator, guardian,
spouse, or other relative who has
custody or guardianship of the
annuitant or who demonstrates strong
concern for the personal welfare of the
annuitant;
(b) A friend or neighbor who has
custody or guardianship of the
annuitant or demonstrates strong
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concern for the personal welfare of the
annuitant;
(c) A public or nonprofit agency or
institution having custody or
guardianship of the annuitant;
(d) A private institution operated for
profit and licensed under State law,
which has custody or guardianship of
the annuitant; and
(e) Persons other than those listed
above who are qualified to carry out the
responsibilities of a representative
payee and who are able and willing to
serve as a payee for an annuitant; e.g.,
members of community groups or
organizations who volunteer to serve as
representative payee for an annuitant.
§ 849.303 Individuals who may not serve
as a representative payee.
A representative payee applicant may
not serve as a representative payee if he
or she:
(a) Is under the age of 18, unless he
or she is the custodial parent of the
minor child applying for or receiving
the annuity;
(b) Is found by a court to be
incompetent or receives benefits under
title II or title XVI of the Social Security
Act through a representative payee or
receives a retirement annuity pursuant
to CSRS or FERS through a
representative payee;
(c) Has previously served as a
representative payee and has been
found by a court of competent
jurisdiction to have misused benefits;
(d) Has been convicted of a violation
of:
(1) 5 U.S.C. 8345a or 8466a;
(2) Section 208 or 1632 of the Social
Security Act (42 U.S.C. 408, 1383a); or
(3) 38 U.S.C 6101; or
(e) Has been convicted of an offense
resulting in imprisonment for more than
one year. The agency may make
exception to the prohibition in this
paragraph (e) if the nature of the
conviction is such that selection of the
applicant poses no risk to the annuitant
and the exception is in the best interest
of the annuitant.
§ 849.304
payee.
Selecting a representative
Before selecting an individual or
organization to serve as a representative
payee, the agency will conduct an
investigation. The investigation will:
(a) Require the applicant to submit
documented proof of identity.
(b) Verify the applicant’s social
security number.
(c) Conduct a background check on
the applicant to determine if the
applicant has been convicted of any
crimes as defined in § 849.303(d) or (e).
(d) Determine if the applicant has
previously served as a representative
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payee and if any previous appointments
as representative payee were revoked or
terminated due to misuse.
§ 849.305 Notice of the determination to
select a representative payee.
(a) If the agency determines that the
annuitant requires a representative
payee due to mental incompetence or
other legal disability or is physically or
mentally unable to manage or direct the
management of his or her annuity
payments, the agency will issue a
written decision to the annuitant. The
decision will include a statement of the
findings and determinations;
specifically, the individual or
organization named as the
representative payee, and an
explanation of the right to appeal the
decision under §§ 831.110 and 841.307
of this chapter. If the annuitant appeals
the decision, the agency will continue to
make direct payments to the annuitant
until the due process rights have been
exhausted.
(b) A decision by the agency to not
select an individual or organization as a
representative payee is not subject to the
due process procedures described in 5
U.S.C. 8347(d) and 8461(e).
Subpart D—Responsibility and
Accountability of a Representative
Payee
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§ 849.401 Responsibilities of a
representative payee.
(a) A representative payee shall,
subject to review by the agency and
subject to such requirements as it may
periodically prescribe, apply the
payments made on behalf of the
annuitant only for the use and benefit of
such annuitant, and in a manner or
purpose that is in the best interest of the
annuitant.
(b) A representative payee shall notify
the agency of any event that will affect
the amount of benefits the annuitant
receives or the right of the annuitant to
receive benefits.
(c) A representative payee shall notify
the agency of any change in
circumstances that would affect
performance of the payee’s
responsibilities.
(d) A representative payee shall keep
the annuity paid to him or her on behalf
of the annuitant separate from his or her
own money in an account that shows
that the annuitant is still the owner of
the funds. The applicant must show
proof of this account when applying to
be the representative payee and use this
account for direct deposit. Exceptions to
this paragraph (d) are joint accounts for
spouses, when one spouse applies to be
representative payee for the other
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spouse and they already have an
existing joint account.
(e) Any interest earned on the annuity
will be the annuitant’s property.
(f) A representative payee shall
respond to requests, regarding the use of
annuity payments, from OPM within a
specified period of time.
§ 849.402
Use of payments.
(a) Current maintenance. Payments
certified to a representative payee on
behalf of an annuitant shall be
considered as having been applied for
the use and benefit of the annuitant
when they are used for the annuitant’s
current maintenance. Current
maintenance includes costs incurred in
obtaining food, shelter, clothing,
medical care, and personal comfort
items.
(b) Institutional care. If an annuitant
is receiving care in a Federal, state, or
private institution because of mental or
physical incapacity, current
maintenance includes the customary
charges made by the institution in
providing care and maintenance, as well
as expenditures for those items which
will aid in the annuitant’s recovery or
release from the institution or expenses
for personal needs which will improve
the annuitant’s conditions while in the
institution.
(c) Support of legal dependents. If the
current maintenance needs of the
annuitant are met, the representative
payee may use part of the payments for
the support of the annuitant’s legally
dependent spouse, child, and/or parent.
(d) Claims of creditors. A
representative payee may satisfy debts
to creditors out of present benefit
payments only if the current and
reasonably foreseeable needs of the
annuitant are met.
(e) Conservation and investment.
After the representative payee has used
the annuity payments consistent with
the rules in paragraphs (a) through (d)
of this section, any remaining annuity
shall be conserved or invested on behalf
of the annuitant. Any investment must
show clearly that the representative
payee holds the property in trust for the
annuitant.
§ 849.403 Accountability of a
representative payee.
(a) An individual, or institution, to
whom payments are made as
representative payee on behalf of an
annuitant is accountable for the use of
the payments and shall submit a written
report in such form and at such times
as the agency may require, accounting
for the payments certified to him or her
on behalf of the annuitant.
(b) If, however, such payee is a courtappointed fiduciary and, as such, is
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required to make an annual accounting
to the court, a true copy of each such
account filed with the court may be
submitted in lieu of the accounting form
prescribed by the agency.
(c) If any representative payee fails to
submit the required accounting within
the specified period of time after it is
requested, no further payments shall be
made to the representative payee on
behalf of the annuitant unless for good
cause shown, the default of the
representative payee is excused by the
agency and the required accounting is
thereafter submitted.
(d) At any time after the agency has
selected a representative payee, the
agency may ask such payee to submit
information showing a continuing
relationship to the annuitant and a
continuing responsibility for the care of
the annuitant. If the representative
payee does not give the agency the
requested information within the
specified period of time, the agency may
stop paying such payee unless the
agency determines that the payee had a
good reason for not complying with the
request, and the agency receives the
information requested.
Subpart E—Misuse of Annuity by a
Representative Payee
§ 849.501 Misuse of benefits by a
representative payee.
(a) It is unlawful for a representative
payee to misuse the payments received
on behalf of an annuitant. For purposes
of this subpart, misuse of benefits by a
representative payee occurs in any case
in which the representative payee
receives payment on behalf of an
annuitant and embezzles or converts
such payment, or any part thereof, to a
use other than for the use and benefit of
the annuitant.
(b) The penalty for a representative
payee found to be in violation of
paragraph (a) of this section is a fine,
imprisonment for not more than 5 years,
or both.
(c) If the agency determines that a
representative payee has misused any
payments as described in paragraph (a)
of this section, the agency will promptly
revoke the certification for payment of
benefits to the representative payee, and
will make payment to an alternative
representative payee or, if the interest of
the annuitant would be served thereby,
to the annuitant.
(d) The agency will make the
annuitant whole by repaying any
annuity that was misused by the
representative payee once the misused
benefits have been repaid to the agency
by the representative payee.
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§ 849.502
Liability for misused funds.
(a) A representative payee who
misuses benefits, as determined in
§ 849.501(a), is responsible for
repayment of the misused benefits.
(b) OPM will seek restitution from the
former representative payee.
(b) A certified copy of a court order
restoring the annuitant’s rights in a case
where an annuitant was adjudged
legally incompetent; or
(c) Other evidence which establishes
the annuitant’s ability to manage or
direct the management of benefits.
Subpart F—Changes of the
Representative Payee
§ 849.603 Transfer of conserved or
accumulated funds.
§ 849.601 When a new representative
payee will be selected.
(a) When the agency learns that the
interests of the annuitant are not served
by continuing payment to the present
representative payee or that the present
representative payee is no longer able or
willing to carry out the payee
responsibilities, the agency will
undertake to find a new representative
payee.
(b) The agency will select a new
representative payee if the agency finds
a preferred payee or if the present
payee:
(1) Has been found by the agency or
a court of competent jurisdiction to have
misused the benefits;
(2) Has not used the benefit payments
on the annuitant’s behalf in accordance
with the rules in this part;
(3) Has not carried out the other
responsibilities described in this
subpart;
(4) Dies;
(5) No longer wishes to be the
representative payee;
(6) Is unable to manage the benefit
payments; or
(7) Fails to cooperate, within a
reasonable time, in providing evidence,
accounting, or other information
requested by the agency.
(c) The agency may suspend payment
as explained in § 849.202(c) if we
determine that making direct payment
to the annuitant would cause substantial
harm. Payments, including all
retroactive amounts due, will resume
once a representative payee is located.
jbell on DSKJLSW7X2PROD with PROPOSALS
§ 849.602 When representative payments
will be stopped.
If an annuitant demonstrates that he
or she is mentally and physically able
to manage or direct the management of
benefit payments, the agency will make
direct payment to the annuitant.
Information which the annuitant may
give to the agency to support his or her
request for direct payment includes, but
is not limited to, the following:
(a) A physician’s statement regarding
the annuitant’s condition, or a statement
by a medical officer of the institution
where the annuitant is or was confined,
showing that the annuitant is able to
manage or direct the management of his
or her funds;
VerDate Sep<11>2014
16:28 Mar 05, 2021
Jkt 253001
A representative payee who has
conserved or invested annuity payments
shall transfer these funds and any
interest earned from the invested funds
to either a successor payee, to the
annuitant, or to the agency as we will
specify. If the funds and the earned
interest are returned to the agency, we
will recertify them to the successor
representative payee or to the annuitant.
[FR Doc. 2021–04628 Filed 3–5–21; 8:45 am]
BILLING CODE 6325–38–P
DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection
Service
9 CFR Chapter I
Food Safety and Inspection Service
9 CFR Chapter III
[Docket No. APHIS–2020–0079]
RIN 0579–AE60
Regulation of the Movement of
Animals Modified or Developed by
Genetic Engineering
Animal and Plant Health
Inspection Service, Department of
Agriculture (USDA); Food Safety and
Inspection Service, USDA.
ACTION: Advance notice of proposed
rulemaking; reopening of comment
period.
AGENCY:
We are reopening the
comment period for our advance notice
of proposed rulemaking on establishing
regulations for the movement of certain
animals modified or developed by
genetic engineering. This action will
allow interested persons additional time
to prepare and submit comments.
DATES: The comment period for the
advance notice of proposed rulemaking
published on December 28, 2020 (85 FR
84269) is reopened. We will consider all
comments that we receive on or before
May 7, 2021.
ADDRESSES: You may submit comments
by either of the following methods:
• Federal eRulemaking Portal: Go to
www.regulations.gov. Enter APHIS–
2020–0079 in the Search field. Select
SUMMARY:
PO 00000
Frm 00005
Fmt 4702
Sfmt 4702
13221
the Documents tab, then select the
Comment button in the list of
documents.
• Postal Mail/Commercial Delivery:
Send your comment to Docket No.
APHIS–2020–0079, Regulatory Analysis
and Development, PPD, APHIS, Station
3A–03.8, 4700 River Road, Unit 118,
Riverdale, MD 20737–1238.
Supporting documents and any
comments we receive on this docket
may be viewed at regulations.gov or in
our reading room, which is located in
Room 1620 of the USDA South
Building, 14th Street and Independence
Avenue SW, Washington, DC. Normal
reading room hours are 8 a.m. to 4:30
p.m., Monday through Friday, except
holidays. To be sure someone is there to
help you, please call (202) 799–7039
before coming.
FOR FURTHER INFORMATION CONTACT: Dr.
Alan Pearson, Assistant Deputy
Administrator, Biotechnology
Regulatory Services; APHIS, 4700 River
Road, Unit 98, Riverdale, MD 20737–
1238; (301) 851–3944; Alan.Pearson@
usda.gov. Dr. Kis Robertson Hale,
Deputy Assistant Administrator, Office
of Public Health Science, USDA Food
Safety and Inspection Service, 1400
Independence Avenue SW, Room 341–
E. Whitten Building; (202) 720–4819;
Kis.Robertson1@usda.gov.
SUPPLEMENTARY INFORMATION: On
December 28, 2020, we published in the
Federal Register (85 FR 84269–84275,
Docket No. APHIS–2020–0079) an
advance notice of proposed rulemaking
(ANPR) on establishing regulations for
the movement of certain animals
modified or developed by genetic
engineering. As outlined in the ANPR,
the United States Department of
Agriculture would promulgate
regulations using the authorities granted
to the Department through the Animal
Health Protection Act, the Federal Meat
Inspection Act (FMIA), and the Poultry
Products Inspection Act (PPIA).
Pursuant to these authorities, the
Animal and Plant Health Inspection
Service would conduct a safety
assessment of animals subject to the
FMIA or PPIA that have been modified
or developed using genetic engineering
that may increase the animal’s
susceptibility to pests or diseases of
livestock, including zoonotic diseases,
or ability to transmit the same. The
Food Safety and Inspection Service
would conduct a pre-slaughter food
safety assessment to ensure that the
slaughter and processing of certain
animals modified or developed using
genetic engineering would not result in
a product that is adulterated or
misbranded.
E:\FR\FM\08MRP1.SGM
08MRP1
Agencies
[Federal Register Volume 86, Number 43 (Monday, March 8, 2021)]
[Proposed Rules]
[Pages 13217-13221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04628]
========================================================================
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. 86, No. 43 / Monday, March 8, 2021 / Proposed
Rules
[[Page 13217]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 849
RIN 3206-AO08
Representative Payees Under the Civil Service Retirement System
and Federal Employees' Retirement System
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management (OPM) is issuing a proposed
rule to promulgate regulations which administer the representative
payee program authorized by statute. This proposed rule is necessary to
ensure proper procedures for annuity payments due minors or individuals
who are mentally incompetent or under other legal disability and are
unable to manage their respective payments.
DATES: Send comments on or before May 7, 2021.
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: Michael Shipley, (202) 606-0299.
SUPPLEMENTARY INFORMATION: Under the Civil Service Retirement System
(CSRS), the provisions of Public Law 89-554, Sept. 6, 1966, 80 Stat.
582 authorized the United States Civil Service Commission, precursor to
the United States Office of Personnel Management (OPM), to make
payments due a minor or an individual mentally incompetent, or under
other legal disability, to a person who is constituted guardian or
other fiduciary by the law of the State of residence of the claimant or
any person, who in the judgment of the Commission, is responsible for
the care of the claimant. Similarly, the Federal Employees' Retirement
System (FERS) Act of 1986, Public Law 99-335, Title I, section 101(a),
June 6, 1986, 100 Stat. 575, authorized OPM to make the same payments
under FERS. According to these statutes, OPM has historically
authorized these payments to individuals, and in some instances,
organizations on behalf of the annuitant as representative payees.
On March 18, 2020, Congress enacted Public Law 116-126, 134 Stat.
174-177 (2020), the Representative Payee Fraud Prevention Act of 2019
(the Act), which made numerous changes to existing statutes regarding
representative payees. First the Act officially defined the term
representative payee under both CSRS and FERS as the ``person
(including an organization) designated . . . to receive payment on
behalf of a minor or an individual mentally incompetent or under other
legal disability'' at 5 U.S.C. 8331(33) and 5 U.S.C. 8401(39),
respectively. Ensuring that organization was added to the definition
recognizes that other entities, such as agencies, institutions, nursing
homes, et al., may serve as representative payees.
Congress also enacted 5 U.S.C. 8345a and 8466a to address the
embezzlement or conversion of payments. Congress made it unlawful for a
representative payee to use the funds received as a representative
payee for any use other than the use and benefit of the individual on
whose behalf the payments were received. OPM was given the authority to
revoke certification as a representative payee, if we determine that a
representative payee has embezzled or converted the annuity payments,
and to certify payments to another representative payee or directly to
the annuitant. Congress set forth the penalty for misuse of benefits by
a representative payee, under title 18 U.S.C., as a fine, imprisonment
for not more than 5 years, or both.
Furthermore, in selecting a representative payee, OPM was granted
authority to defer or suspend the annuity payment until a
representative payee is located, if we determine that paying the
annuitant directly would cause substantial harm to the annuitant.
Substantial harm exists if both of the following conditions exist:
(1) Direct payment of benefits can be expected to cause serious
physical or mental injury to the individual; and
(2) The potential effect of the injury outweighs the effect of
having no income to meet the basic needs of the individual.
We have included this language concerning substantial harm to the
proposed regulations.
Finally, the Act created limitations on who can be appointed as a
representative payee. Individuals that have been convicted of a
violation of: (1) 5 U.S.C. 8345a or 8466a; (2) section 208 or 1632 of
the Social Security Act (42 U.S.C. 408, 1383a); or (3) section 6101 of
title 38, are barred from serving as a representative payee.
OPM is promulgating the proposed regulations to fully implement and
administer the representative payee program for CSRS and FERS. The
regulations are required to prevent misuse and fraud by representative
payees.
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 was not designated as a ``significant regulatory
action,'' under Executive Order 12866.
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,
[[Page 13218]]
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.
OPM believes the changes proposed in this document do not impose
additional information collection requirements to the paperwork burden
previously approved for the following Office of Management and Budget
Control numbers:
3206-0140--Representative Payee Application/Information
Necessary for a Competency Determination which is comprised of 2
forms--an application form with a burden of 30 minutes and a separate
form for a competency determination with a burden of 60 minutes.
3206-0208--Representative Payee Survey with a burden of 20
minutes.
These burden numbers include time for reviewing instructions,
searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information. The
systems of record notice for this collection is: https://www.opm.gov/information-management/privacy-policy/sorn/opm-sorn-central-1-civil-service-retirement-and-insurance-records.pdf. (OPM SORN CENTRAL-1-Civil
Service Retirement and Insurance Records.)
List of Subjects in 5 CFR Part 849
Claims, Disability benefits, Fraud, 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 add 5 CFR part 849 to read as follows:
PART 849--REPRESENTATIVE PAYEES
Subpart A--General Provisions
Sec.
849.101 Applicability and purpose.
849.102 Definitions.
849.103 Implementing directives.
Subpart B--Determining Whether or Not Representative Payment Is
Appropriate
849.201 When to make payment to a representative payee.
849.202 Payment of annuity while finding a suitable representative
payee.
849.203 Information considered in determining whether to appoint a
representative payee.
Subpart C--Selection of a Representative Payee
849.301 Information considered in selecting a representative payee.
849.302 Order of preference in selecting a representative payee.
849.303 Individuals who may not serve as a representative payee.
849.304 Selecting a representative payee.
849.305 Notice of determination to select a representative payee.
Subpart D--Responsibility and Accountability of a Representative Payee
849.401 Responsibilities of a representative payee.
849.402 Use of payments.
849.403 Accountability of a representative payee.
Subpart E--Misuse of Annuity by a Representative Payee
849.501 Misuse of benefits by a representative payee.
849.502 Liability for misused funds.
Subpart F--Changes to the Representative Payee
849.601 When new a representative payee will be selected.
849.602 When representative payments will be stopped.
849.603 Transfer of conserved or accumulated funds.
Authority: 5 U.S.C. 8331; 5 U.S.C. 8345(e)-(f); 5 U.S.C. 8345a;
5 U.S.C. 8401; 5 U.S.C. 8461; 5 U.S.C. 8466(c)-(d); 5 U.S.C. 8466a.
Subpart A--General Provisions
Sec. 849.101 Applicability and purpose.
This part contains regulations of the Office of Personnel
Management (OPM) to implement the provisions 5 U.S.C. 8345(e)-(f),
8345a, 8466(c)-(d), and 8466a regarding payment of an annuity to a
representative payee. This part establishes the criteria OPM uses to
determine if representative payments are appropriate, the information
OPM uses to select a representative payee, the responsibilities of a
representative payee, the accountability of a representative payee, the
limitations on the appointment of a representative payee, and the
definition of and penalty for misuse of benefits by the representative
payee.
Sec. 849.102 Definitions.
As used in this part:
Agency means the Office of Personnel Management (OPM).
CSRS means the Civil Service Retirement System as described in
subchapter III of chapter 83 of title 5, United States Code.
FERS means the Federal Employees' Retirement System as described in
chapter 84 of title 5, United States Code.
Misuse of benefits means the embezzlement or conversion of all or
any part of the amount received by the representative payee for a use
other than for the use and benefit of the minor or individual on whose
behalf such payments were received.
Representative payee means a person, who is at least 18 years of
age, or an organization designated to receive annuity payments on
behalf of a minor or an individual mentally incompetent or under other
legal disability.
Sec. 849.103 Implementing directives.
The Director may prescribe, in the form he or she deems
appropriate, such detailed procedures as are necessary to carry out the
purpose of this part.
Subpart B--Determining Whether or Not Representative Payment is
Appropriate
Sec. 849.201 When to make payment to a representative payee.
The agency will make payment to a representative payee--
(a) If payments are due to a minor under the age of 18; or
(b) If payments are due to an annuitant or survivor who is mentally
[[Page 13219]]
incompetent or under other legal disability; or
(c) If payments are due to an annuitant when the annuitant is
physically or mentally incapable of managing or directing the
management of his or her benefit.
Sec. 849.202 Payment of annuity while finding a suitable
representative payee.
(a) Annuity payments will be made directly to the annuitant or
survivor annuitant while a suitable representative payee is located,
unless the agency determines that direct payment would cause
substantial harm to the individual.
(b) Substantial harm exists if both of the following conditions
exist:
(1) Direct payment of benefits can be expected to cause serious
physical or mental injury to the individual; and
(2) The potential effect of the injury outweighs the effect of
having no income to meet the basic needs of the individual.
(c) If the agency determines that direct payment of benefits would
cause substantial harm to the annuitant, annuity payments may be
deferred (in the case of initial entitlement to benefits) or suspended
(in the case of existing entitlement to benefits) until such time as a
representative payee is appointed.
(d) Annuity payments will commence or resume as soon as practicable
and will include all retroactive payments due to be paid.
Sec. 849.203 Information considered in determining whether to appoint
a representative payee.
In determining whether to appoint a representative payee, the
agency will consider the following information:
(a) Evidence of legal guardianship or other court determinations.
Evidence of the appointment of a legal guardian or other person legally
vested with the care of the individual or estate of an incompetent or a
minor shall be a certified copy of the court's determination.
(b) Medical evidence. The agency will use medical evidence to help
determine whether an annuitant is capable of managing or directing the
management of benefit payments. For example, a statement by a physician
or other medical professional, based upon his or her recent examination
of the annuitant and his or her knowledge of the annuitant's present
condition, will be used in the agency's determination, if it includes
information concerning the nature of the annuitant's illness or
disability, the annuitant's chances for recovery and the opinion of the
physician or other medical professional as to whether the annuitant is
able to manage or direct the management of benefit payments.
(c) Other evidence. The agency may also require statements of
relatives, friends, or other people in a position to know and observe
the annuitant, which contain information helpful to the agency in
deciding whether the annuitant is able to manage or direct the
management of benefit payments.
Subpart C--Selection of a Representative Payee
Sec. 849.301 Information considered in selecting a representative
payee.
The goal in selecting a payee is to select the person,
organization, or institution that will best serve the interest of the
annuitant. In making the selection, the agency considers--
(a) The age of the representative payee applicant. An individual
must be over the age of 18 to serve as a representative payee, except
as listed in Sec. 849.303(a);
(b) The relationship of the person, organization, or institution to
the annuitant;
(c) Legal authority, in the form of conservatorship or
guardianship, that the person, organization or institution has to act
on behalf of the annuitant;
(d) The amount of concern that the person or organization shows in
the annuitant;
(e) Whether the potential payee has custody of the annuitant;
(f) Whether the potential payee is in a position to know of and
look after the needs of the annuitant;
(g) Whether the representative payee applicant is currently
serving, or has previously served, as a representative payee for other
annuitants; and
(h) The potential representative payee's criminal history.
Sec. 849.302 Order of preference in selecting a representative payee.
As a guide in selecting a representative payee, categories of
preferred payees are set out in paragraphs (a) through (e) of this
section. The primary concern of the agency is to select the payee who
will best serve the annuitant's interest. The preferences, in
descending order of importance, are:
(a) A legal conservator, guardian, spouse, or other relative who
has custody or guardianship of the annuitant or who demonstrates strong
concern for the personal welfare of the annuitant;
(b) A friend or neighbor who has custody or guardianship of the
annuitant or demonstrates strong concern for the personal welfare of
the annuitant;
(c) A public or nonprofit agency or institution having custody or
guardianship of the annuitant;
(d) A private institution operated for profit and licensed under
State law, which has custody or guardianship of the annuitant; and
(e) Persons other than those listed above who are qualified to
carry out the responsibilities of a representative payee and who are
able and willing to serve as a payee for an annuitant; e.g., members of
community groups or organizations who volunteer to serve as
representative payee for an annuitant.
Sec. 849.303 Individuals who may not serve as a representative payee.
A representative payee applicant may not serve as a representative
payee if he or she:
(a) Is under the age of 18, unless he or she is the custodial
parent of the minor child applying for or receiving the annuity;
(b) Is found by a court to be incompetent or receives benefits
under title II or title XVI of the Social Security Act through a
representative payee or receives a retirement annuity pursuant to CSRS
or FERS through a representative payee;
(c) Has previously served as a representative payee and has been
found by a court of competent jurisdiction to have misused benefits;
(d) Has been convicted of a violation of:
(1) 5 U.S.C. 8345a or 8466a;
(2) Section 208 or 1632 of the Social Security Act (42 U.S.C. 408,
1383a); or
(3) 38 U.S.C 6101; or
(e) Has been convicted of an offense resulting in imprisonment for
more than one year. The agency may make exception to the prohibition in
this paragraph (e) if the nature of the conviction is such that
selection of the applicant poses no risk to the annuitant and the
exception is in the best interest of the annuitant.
Sec. 849.304 Selecting a representative payee.
Before selecting an individual or organization to serve as a
representative payee, the agency will conduct an investigation. The
investigation will:
(a) Require the applicant to submit documented proof of identity.
(b) Verify the applicant's social security number.
(c) Conduct a background check on the applicant to determine if the
applicant has been convicted of any crimes as defined in Sec.
849.303(d) or (e).
(d) Determine if the applicant has previously served as a
representative
[[Page 13220]]
payee and if any previous appointments as representative payee were
revoked or terminated due to misuse.
Sec. 849.305 Notice of the determination to select a representative
payee.
(a) If the agency determines that the annuitant requires a
representative payee due to mental incompetence or other legal
disability or is physically or mentally unable to manage or direct the
management of his or her annuity payments, the agency will issue a
written decision to the annuitant. The decision will include a
statement of the findings and determinations; specifically, the
individual or organization named as the representative payee, and an
explanation of the right to appeal the decision under Sec. Sec.
831.110 and 841.307 of this chapter. If the annuitant appeals the
decision, the agency will continue to make direct payments to the
annuitant until the due process rights have been exhausted.
(b) A decision by the agency to not select an individual or
organization as a representative payee is not subject to the due
process procedures described in 5 U.S.C. 8347(d) and 8461(e).
Subpart D--Responsibility and Accountability of a Representative
Payee
Sec. 849.401 Responsibilities of a representative payee.
(a) A representative payee shall, subject to review by the agency
and subject to such requirements as it may periodically prescribe,
apply the payments made on behalf of the annuitant only for the use and
benefit of such annuitant, and in a manner or purpose that is in the
best interest of the annuitant.
(b) A representative payee shall notify the agency of any event
that will affect the amount of benefits the annuitant receives or the
right of the annuitant to receive benefits.
(c) A representative payee shall notify the agency of any change in
circumstances that would affect performance of the payee's
responsibilities.
(d) A representative payee shall keep the annuity paid to him or
her on behalf of the annuitant separate from his or her own money in an
account that shows that the annuitant is still the owner of the funds.
The applicant must show proof of this account when applying to be the
representative payee and use this account for direct deposit.
Exceptions to this paragraph (d) are joint accounts for spouses, when
one spouse applies to be representative payee for the other spouse and
they already have an existing joint account.
(e) Any interest earned on the annuity will be the annuitant's
property.
(f) A representative payee shall respond to requests, regarding the
use of annuity payments, from OPM within a specified period of time.
Sec. 849.402 Use of payments.
(a) Current maintenance. Payments certified to a representative
payee on behalf of an annuitant shall be considered as having been
applied for the use and benefit of the annuitant when they are used for
the annuitant's current maintenance. Current maintenance includes costs
incurred in obtaining food, shelter, clothing, medical care, and
personal comfort items.
(b) Institutional care. If an annuitant is receiving care in a
Federal, state, or private institution because of mental or physical
incapacity, current maintenance includes the customary charges made by
the institution in providing care and maintenance, as well as
expenditures for those items which will aid in the annuitant's recovery
or release from the institution or expenses for personal needs which
will improve the annuitant's conditions while in the institution.
(c) Support of legal dependents. If the current maintenance needs
of the annuitant are met, the representative payee may use part of the
payments for the support of the annuitant's legally dependent spouse,
child, and/or parent.
(d) Claims of creditors. A representative payee may satisfy debts
to creditors out of present benefit payments only if the current and
reasonably foreseeable needs of the annuitant are met.
(e) Conservation and investment. After the representative payee has
used the annuity payments consistent with the rules in paragraphs (a)
through (d) of this section, any remaining annuity shall be conserved
or invested on behalf of the annuitant. Any investment must show
clearly that the representative payee holds the property in trust for
the annuitant.
Sec. 849.403 Accountability of a representative payee.
(a) An individual, or institution, to whom payments are made as
representative payee on behalf of an annuitant is accountable for the
use of the payments and shall submit a written report in such form and
at such times as the agency may require, accounting for the payments
certified to him or her on behalf of the annuitant.
(b) If, however, such payee is a court-appointed fiduciary and, as
such, is required to make an annual accounting to the court, a true
copy of each such account filed with the court may be submitted in lieu
of the accounting form prescribed by the agency.
(c) If any representative payee fails to submit the required
accounting within the specified period of time after it is requested,
no further payments shall be made to the representative payee on behalf
of the annuitant unless for good cause shown, the default of the
representative payee is excused by the agency and the required
accounting is thereafter submitted.
(d) At any time after the agency has selected a representative
payee, the agency may ask such payee to submit information showing a
continuing relationship to the annuitant and a continuing
responsibility for the care of the annuitant. If the representative
payee does not give the agency the requested information within the
specified period of time, the agency may stop paying such payee unless
the agency determines that the payee had a good reason for not
complying with the request, and the agency receives the information
requested.
Subpart E--Misuse of Annuity by a Representative Payee
Sec. 849.501 Misuse of benefits by a representative payee.
(a) It is unlawful for a representative payee to misuse the
payments received on behalf of an annuitant. For purposes of this
subpart, misuse of benefits by a representative payee occurs in any
case in which the representative payee receives payment on behalf of an
annuitant and embezzles or converts such payment, or any part thereof,
to a use other than for the use and benefit of the annuitant.
(b) The penalty for a representative payee found to be in violation
of paragraph (a) of this section is a fine, imprisonment for not more
than 5 years, or both.
(c) If the agency determines that a representative payee has
misused any payments as described in paragraph (a) of this section, the
agency will promptly revoke the certification for payment of benefits
to the representative payee, and will make payment to an alternative
representative payee or, if the interest of the annuitant would be
served thereby, to the annuitant.
(d) The agency will make the annuitant whole by repaying any
annuity that was misused by the representative payee once the misused
benefits have been repaid to the agency by the representative payee.
[[Page 13221]]
Sec. 849.502 Liability for misused funds.
(a) A representative payee who misuses benefits, as determined in
Sec. 849.501(a), is responsible for repayment of the misused benefits.
(b) OPM will seek restitution from the former representative payee.
Subpart F--Changes of the Representative Payee
Sec. 849.601 When a new representative payee will be selected.
(a) When the agency learns that the interests of the annuitant are
not served by continuing payment to the present representative payee or
that the present representative payee is no longer able or willing to
carry out the payee responsibilities, the agency will undertake to find
a new representative payee.
(b) The agency will select a new representative payee if the agency
finds a preferred payee or if the present payee:
(1) Has been found by the agency or a court of competent
jurisdiction to have misused the benefits;
(2) Has not used the benefit payments on the annuitant's behalf in
accordance with the rules in this part;
(3) Has not carried out the other responsibilities described in
this subpart;
(4) Dies;
(5) No longer wishes to be the representative payee;
(6) Is unable to manage the benefit payments; or
(7) Fails to cooperate, within a reasonable time, in providing
evidence, accounting, or other information requested by the agency.
(c) The agency may suspend payment as explained in Sec. 849.202(c)
if we determine that making direct payment to the annuitant would cause
substantial harm. Payments, including all retroactive amounts due, will
resume once a representative payee is located.
Sec. 849.602 When representative payments will be stopped.
If an annuitant demonstrates that he or she is mentally and
physically able to manage or direct the management of benefit payments,
the agency will make direct payment to the annuitant. Information which
the annuitant may give to the agency to support his or her request for
direct payment includes, but is not limited to, the following:
(a) A physician's statement regarding the annuitant's condition, or
a statement by a medical officer of the institution where the annuitant
is or was confined, showing that the annuitant is able to manage or
direct the management of his or her funds;
(b) A certified copy of a court order restoring the annuitant's
rights in a case where an annuitant was adjudged legally incompetent;
or
(c) Other evidence which establishes the annuitant's ability to
manage or direct the management of benefits.
Sec. 849.603 Transfer of conserved or accumulated funds.
A representative payee who has conserved or invested annuity
payments shall transfer these funds and any interest earned from the
invested funds to either a successor payee, to the annuitant, or to the
agency as we will specify. If the funds and the earned interest are
returned to the agency, we will recertify them to the successor
representative payee or to the annuitant.
[FR Doc. 2021-04628 Filed 3-5-21; 8:45 am]
BILLING CODE 6325-38-P