, 16401-16402 [2021-06325]
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Federal Register / Vol. 86, No. 58 / Monday, March 29, 2021 / Notices
CSRS PRESENT VALUE FACTORS APPLICABLE TO ANNUITY PAYABLE FOLLOWING AN ELECTION UNDER SECTION 8339(j) OR (k) OR SECTION
8343a OF TITLE 5, UNITED STATES
CODE, OR UNDER SECTION 1043 OF
PUBLIC LAW 104–106 OR UNDER
SECTION 1132 OF PUBLIC LAW 107–
107 OR UNDER FERCCA OR FOLLOWING A REDEPOSIT UNDER SECTION 8334(d)(2) OF TITLE 5, UNITED
STATES CODE—Continued
Age
44 ........................................
45 ........................................
46 ........................................
47 ........................................
48 ........................................
49 ........................................
50 ........................................
51 ........................................
52 ........................................
53 ........................................
54 ........................................
55 ........................................
56 ........................................
57 ........................................
58 ........................................
59 ........................................
60 ........................................
61 ........................................
62 ........................................
63 ........................................
64 ........................................
65 ........................................
66 ........................................
67 ........................................
68 ........................................
69 ........................................
70 ........................................
71 ........................................
72 ........................................
73 ........................................
74 ........................................
75 ........................................
76 ........................................
77 ........................................
78 ........................................
79 ........................................
80 ........................................
81 ........................................
82 ........................................
83 ........................................
84 ........................................
85 ........................................
86 ........................................
87 ........................................
88 ........................................
89 ........................................
90 ........................................
91 ........................................
92 ........................................
93 ........................................
94 ........................................
95 ........................................
96 ........................................
97 ........................................
98 ........................................
99 ........................................
100 ......................................
101 ......................................
VerDate Sep<11>2014
17:20 Mar 26, 2021
CSRS PRESENT VALUE FACTORS APPLICABLE TO ANNUITY PAYABLE FOLLOWING AN ELECTION UNDER SECTION 8339(j) OR (k) OR SECTION
8343a OF TITLE 5, UNITED STATES
CODE, OR UNDER SECTION 1043 OF
PUBLIC LAW 104–106 OR UNDER
SECTION 1132 OF PUBLIC LAW 107–
107 OR UNDER FERCCA OR FOLLOWING A REDEPOSIT UNDER SECTION 8334(d)(2) OF TITLE 5, UNITED
STATES CODE—Continued
Present value
factor
364.8
358.4
351.9
345.4
338.9
332.3
325.6
318.9
312.1
305.2
298.3
291.2
283.9
276.5
269.1
261.7
254.2
246.6
238.9
231.3
223.6
215.8
208.2
200.5
192.8
185.1
177.5
169.9
162.4
154.9
147.6
140.3
133.1
126.1
119.2
112.4
105.8
99.4
93.2
87.3
81.6
76.1
70.9
65.9
61.3
56.9
52.9
49.1
45.6
42.3
39.4
36.7
34.2
32.0
30.0
28.2
26.5
25.0
Jkt 253001
Present value
factor
Age
102
103
104
105
106
107
108
109
......................................
......................................
......................................
......................................
......................................
......................................
......................................
......................................
23.5
22.1
20.7
19.1
17.1
14.3
9.5
6.4
CSRS PRESENT VALUE FACTORS APPLICABLE TO ANNUITY PAYABLE FOLLOWING AN ELECTION UNDER SECTION 1043 OF PUBLIC LAW 104–106
OR UNDER SECTION 1132 OF PUBLIC LAW 107–107 OR UNDER
FERCCA (FOR AGES AT CALCULATION BELOW 40)
Present value
of a monthly
annuity
Age at calculation
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
507.2
503.0
498.7
494.4
490.0
485.5
480.9
476.3
471.5
466.7
461.8
456.9
451.8
446.7
441.4
436.1
430.7
425.2
419.6
413.9
408.1
402.2
396.2
Office of Personnel Management.
Alexys Stanley,
Regulatory Affairs Analyst.
[FR Doc. 2021–06326 Filed 3–26–21; 8:45 am]
OFFICE OF PERSONNEL
MANAGEMENT
Federal Employees’ Retirement
System; Normal Cost Percentages
Office of Personnel
Management.
ACTION: Notice.
AGENCY:
The Office of Personnel
Management (OPM) is providing notice
of revised normal cost percentages for
employees covered by the Federal
Employees’ Retirement System (FERS)
Act of 1986.
DATES: The revised normal cost
percentages are effective at the
beginning of the first pay period
commencing on or after October 1, 2021.
Agency appeals of the normal cost
percentages must be filed no later than
September 29, 2021.
ADDRESSES: Send or deliver agency
appeals of the normal cost percentages
and requests for actuarial assumptions
and data to the Board of Actuaries, care
of Gregory Kissel, Senior Actuary, Office
of Healthcare and Insurance, Office of
Personnel Management, Room 4316,
1900 E Street NW, Washington, DC
20415, or by email to actuary@opm.gov.
FOR FURTHER INFORMATION CONTACT:
Karla Yeakle, (202) 606–0299.
SUPPLEMENTARY INFORMATION: The FERS
Act of 1986, Public Law 99–335, created
a new retirement system intended to
cover most Federal employees hired
after 1983. Most Federal employees
hired before 1984 are under the older
Civil Service Retirement System (CSRS).
Section 8423 of title 5, United States
Code, as added by the FERS Act of 1986,
provides for the payment of the
Government’s share of the cost of the
retirement system under FERS.
Employees’ contributions are
established by law and constitute only
a portion of the cost of funding the
retirement system; employing agencies
are required to pay the remaining costs.
The amount of funding required, known
as ‘‘normal cost,’’ is the entry age
normal cost of the provisions of FERS
that relate to the Civil Service
Retirement and Disability Fund (Fund).
The normal cost must be computed by
OPM in accordance with generally
accepted actuarial practices and
standards (using dynamic assumptions).
The normal cost calculations depend on
economic and demographic
assumptions. Subpart D of part 841 of
title 5, Code of Federal Regulations,
regulates how normal costs are
determined.
SUMMARY:
BILLING CODE 6325–38–P
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16402
Federal Register / Vol. 86, No. 58 / Monday, March 29, 2021 / Notices
In its meeting on April 2, 2020, the
Board of Actuaries of the Civil Service
Retirement System (the Board)
recommended revisions to the long-term
economic assumptions and
recommended changes to the
demographic assumptions used in the
actuarial valuations of CSRS and FERS.
The economic assumptions have
decreased from the previous long-term
economic assumptions. The
demographic assumptions include
assumed rates of mortality, employee
withdrawal, retirement, and merit and
longevity pay increases. The Board
recommended adjustments to
demographic assumptions for employee
withdrawal rates and annuitant
mortality rates for certain categories of
employees. OPM has adopted the
Board’s recommendations.
Section 211 of Title II, Division E of
Public Law 116–94, the Further
Consolidated Appropriations Act of
2020, provided for separate normal cost
percentages for certain members of the
Capitol Police as distinct from other
Congressional Employees. As a result,
OPM published regulations on
September 22, 2020, that revised 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.
With regard to the economic
assumptions described under section
841.402 of title 5, Code of Federal
Regulations, used in the actuarial
valuations of FERS, the Board
concluded that it would be appropriate
to assume a rate of investment return of
4.0 percent, a reduction of 0.25 percent
from the existing rate of 4.25 percent. In
addition, the Board determined that the
assumed inflation rate should be
reduced 0.10 percent from 2.50 percent
to 2.40 percent, that the assumed rate of
FERS annuitant Cost of Living
Adjustments should remain at 80
percent of the assumed rate of inflation,
and that the projected rate of General
Schedule salary increases should be
reduced 0.10 percent from 2.75 percent
to 2.65 percent. The general salary
increases are in addition to assumed
within-grade increases. These
assumptions are intended to reflect the
long term expected future experience of
the Systems.
The demographic assumptions are
determined separately for each of a
number of special groups, in cases
where separate experience data is
available. Based on the demographic
and economic assumptions described
above, OPM has determined the normal
cost percentage for each category of
employees under section 841.403 of title
5, Code of Federal Regulations.
Section 5001 of Public Law 112–96,
The Middle Class Tax Relief and Jobs
Creation Act of 2012, established
provisions for FERS Revised Annuity
Employees (FERS–RAE). The law
permanently increases the retirement
contributions by 2.30 percent of pay for
these employees. Subsequently, Section
401 of Public Law 113–67, the
Bipartisan Budget Act of 2013, created
another class of FERS coverage, FERSFurther Revised Annuity Employee
(FERS–FRAE). Employees subject to
FERS–FRAE must pay an increase of
1.30 percent of pay above the retirement
contribution percentage set for FERS–
RAE. Separate normal cost percentages
apply for employees covered under
FERS–RAE and for employees covered
under FERS–FRAE.
The normal cost percentages for each
category of employee, including the
employee contributions, are as follows:
NORMAL COST PERCENTAGES FOR FERS, FERS–REVISED ANNUITY EMPLOYEE (RAE), AND FERS–FURTHER REVISED
ANNUITY (FRAE) GROUPS
FERS normal
cost
(percent)
Group
Members ......................................................................................................................................
Capitol Police covered under 5 U.S.C. 8412(d) and 5 U.S.C. 8425(c) ......................................
Other Congressional employees .................................................................................................
Law enforcement officers, members of the Supreme Court Police, firefighters, nuclear materials couriers, customs and border protection officers, and employees under section 302 of
the Central Intelligence Agency Retirement Act of 1964 for certain employees ....................
Air traffic controllers .....................................................................................................................
Military reserve technicians .........................................................................................................
Employees under section 303 of the Central Intelligence Agency Retirement Act of 1964 for
certain employees (when serving abroad) ...............................................................................
Other employees of the United States Postal Service ................................................................
All other regular FERS employees ..............................................................................................
Under section 841.408 of title 5, Code
of Federal Regulations, these normal
cost percentages are effective at the
beginning of the first pay period
commencing on or after October 1, 2021.
The time limit and address for filing
agency appeals under sections 841.409
through 841.412 of title 5, Code of
Federal Regulations, are stated in the
DATES and ADDRESSES sections of this
notice.
Alexys Stanley,
Regulatory Affairs Analyst, Office of
Personnel Management.
[FR Doc. 2021–06325 Filed 3–26–21; 8:45 am]
BILLING CODE 6325–38–P
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17:20 Mar 26, 2021
Jkt 253001
POSTAL REGULATORY COMMISSION
[Docket Nos. MC2021–75 and CP2021–78]
New Postal Products
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is noticing a
recent Postal Service filing for the
Commission’s consideration concerning
a negotiated service agreement. This
notice informs the public of the filing,
invites public comment, and takes other
administrative steps.
DATES: Comments are due: March 31,
2021.
SUMMARY:
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
FERS–RAE
normal cost
(percent)
FERS–FRAE
normal cost
(percent)
25.6
38.9
27.1
19.7
39.4
19.7
19.9
39.6
19.9
38.9
38.8
21.9
39.4
39.4
22.4
39.6
39.5
22.6
27.0
17.0
19.2
27.6
17.5
19.7
27.8
17.8
19.9
Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
E:\FR\FM\29MRN1.SGM
29MRN1
]]>Agencies
- Office of Personnel Management
- Federal Employees' Retirement System; Normal Cost Percentages
[Federal Register Volume 86, Number 58 (Monday, March 29, 2021)]
[Notices]
[Pages 16401-16402]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06325]
-----------------------------------------------------------------------
OFFICE OF PERSONNEL MANAGEMENT
Federal Employees' Retirement System; Normal Cost Percentages
AGENCY: Office of Personnel Management.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management (OPM) is providing notice
of revised normal cost percentages for employees covered by the Federal
Employees' Retirement System (FERS) Act of 1986.
DATES: The revised normal cost percentages are effective at the
beginning of the first pay period commencing on or after October 1,
2021. Agency appeals of the normal cost percentages must be filed no
later than September 29, 2021.
ADDRESSES: Send or deliver agency appeals of the normal cost
percentages and requests for actuarial assumptions and data to the
Board of Actuaries, care of Gregory Kissel, Senior Actuary, Office of
Healthcare and Insurance, Office of Personnel Management, Room 4316,
1900 E Street NW, Washington, DC 20415, or by email to [email protected].
FOR FURTHER INFORMATION CONTACT: Karla Yeakle, (202) 606-0299.
SUPPLEMENTARY INFORMATION: The FERS Act of 1986, Public Law 99-335,
created a new retirement system intended to cover most Federal
employees hired after 1983. Most Federal employees hired before 1984
are under the older Civil Service Retirement System (CSRS). Section
8423 of title 5, United States Code, as added by the FERS Act of 1986,
provides for the payment of the Government's share of the cost of the
retirement system under FERS. Employees' contributions are established
by law and constitute only a portion of the cost of funding the
retirement system; employing agencies are required to pay the remaining
costs. The amount of funding required, known as ``normal cost,'' is the
entry age normal cost of the provisions of FERS that relate to the
Civil Service Retirement and Disability Fund (Fund). The normal cost
must be computed by OPM in accordance with generally accepted actuarial
practices and standards (using dynamic assumptions). The normal cost
calculations depend on economic and demographic assumptions. Subpart D
of part 841 of title 5, Code of Federal Regulations, regulates how
normal costs are determined.
[[Page 16402]]
In its meeting on April 2, 2020, the Board of Actuaries of the
Civil Service Retirement System (the Board) recommended revisions to
the long-term economic assumptions and recommended changes to the
demographic assumptions used in the actuarial valuations of CSRS and
FERS. The economic assumptions have decreased from the previous long-
term economic assumptions. The demographic assumptions include assumed
rates of mortality, employee withdrawal, retirement, and merit and
longevity pay increases. The Board recommended adjustments to
demographic assumptions for employee withdrawal rates and annuitant
mortality rates for certain categories of employees. OPM has adopted
the Board's recommendations.
Section 211 of Title II, Division E of Public Law 116-94, the
Further Consolidated Appropriations Act of 2020, provided for separate
normal cost percentages for certain members of the Capitol Police as
distinct from other Congressional Employees. As a result, OPM published
regulations on September 22, 2020, that revised 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.
With regard to the economic assumptions described under section
841.402 of title 5, Code of Federal Regulations, used in the actuarial
valuations of FERS, the Board concluded that it would be appropriate to
assume a rate of investment return of 4.0 percent, a reduction of 0.25
percent from the existing rate of 4.25 percent. In addition, the Board
determined that the assumed inflation rate should be reduced 0.10
percent from 2.50 percent to 2.40 percent, that the assumed rate of
FERS annuitant Cost of Living Adjustments should remain at 80 percent
of the assumed rate of inflation, and that the projected rate of
General Schedule salary increases should be reduced 0.10 percent from
2.75 percent to 2.65 percent. The general salary increases are in
addition to assumed within-grade increases. These assumptions are
intended to reflect the long term expected future experience of the
Systems.
The demographic assumptions are determined separately for each of a
number of special groups, in cases where separate experience data is
available. Based on the demographic and economic assumptions described
above, OPM has determined the normal cost percentage for each category
of employees under section 841.403 of title 5, Code of Federal
Regulations.
Section 5001 of Public Law 112-96, The Middle Class Tax Relief and
Jobs Creation Act of 2012, established provisions for FERS Revised
Annuity Employees (FERS-RAE). The law permanently increases the
retirement contributions by 2.30 percent of pay for these employees.
Subsequently, Section 401 of Public Law 113-67, the Bipartisan Budget
Act of 2013, created another class of FERS coverage, FERS-Further
Revised Annuity Employee (FERS-FRAE). Employees subject to FERS-FRAE
must pay an increase of 1.30 percent of pay above the retirement
contribution percentage set for FERS-RAE. Separate normal cost
percentages apply for employees covered under FERS-RAE and for
employees covered under FERS-FRAE.
The normal cost percentages for each category of employee,
including the employee contributions, are as follows:
Normal Cost Percentages for FERS, FERS-Revised Annuity Employee (RAE), and FERS-Further Revised Annuity (FRAE)
Groups
----------------------------------------------------------------------------------------------------------------
FERS-FRAE
Group FERS normal FERS-RAE normal cost
cost (percent) normal cost (percent)
-------------------------------------------------------------------------------------(percent)------------------
Members......................................................... 25.6 19.7 19.9
Capitol Police covered under 5 U.S.C. 8412(d) and 5 U.S.C. 38.9 39.4 39.6
8425(c)........................................................
Other Congressional employees................................... 27.1 19.7 19.9
Law enforcement officers, members of the Supreme Court Police, 38.9 39.4 39.6
firefighters, nuclear materials couriers, customs and border
protection officers, and employees under section 302 of the
Central Intelligence Agency Retirement Act of 1964 for certain
employees......................................................
Air traffic controllers......................................... 38.8 39.4 39.5
Military reserve technicians.................................... 21.9 22.4 22.6
Employees under section 303 of the Central Intelligence Agency 27.0 27.6 27.8
Retirement Act of 1964 for certain employees (when serving
abroad)........................................................
Other employees of the United States Postal Service............. 17.0 17.5 17.8
All other regular FERS employees................................ 19.2 19.7 19.9
----------------------------------------------------------------------------------------------------------------
Under section 841.408 of title 5, Code of Federal Regulations,
these normal cost percentages are effective at the beginning of the
first pay period commencing on or after October 1, 2021.
The time limit and address for filing agency appeals under sections
841.409 through 841.412 of title 5, Code of Federal Regulations, are
stated in the DATES and ADDRESSES sections of this notice.
Alexys Stanley,
Regulatory Affairs Analyst, Office of Personnel Management.
[FR Doc. 2021-06325 Filed 3-26-21; 8:45 am]
BILLING CODE 6325-38-P
