Extension of Veterans' Group Life Insurance (VGLI) Application Periods in Response to the COVID-19 Public Health Emergency, 30541-30543 [2021-12017]
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Federal Register / Vol. 86, No. 109 / Wednesday, June 9, 2021 / Rules and Regulations
home.treasury.gov/policy-issues/
financial-markets-financial-institutionsand-fiscal-service/federal-insuranceoffice/terrorism-risk-insurance-program.
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DEPARTMENT OF VETERANS
AFFAIRS
10. Amend § 50.90 by revising
paragraph (c) to read as follows:
§ 50.90 Mandatory and discretionary
recoupment.
Extension of Veterans’ Group Life
Insurance (VGLI) Application Periods
in Response to the COVID–19 Public
Health Emergency
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AGENCY:
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(c) If the Secretary imposes a federal
terrorism policy surcharge as provided
in paragraph (a) of this section, then the
required amounts, based upon the
extent to which payments for the
Federal Share of Compensation have
been made by the collection deadlines
in section 103(e)(7)(E) of the Act, shall
be collected in accordance with such
deadlines:
(1) For any act of terrorism that occurs
on or before December 31, 2022, the
Secretary shall collect all required
amounts by September 30, 2024;
(2) For any act of terrorism that occurs
between January 1, 2023 and December
31, 2023, the Secretary shall collect 35%
of any required amounts by September
30, 2024, and the remainder by
September 30, 2029; and
(3) For any act of terrorism that occurs
on or after January 1, 2024, the Secretary
shall collect all required amounts by
September 30, 2029.
11. Amend § 50.103 by revising
paragraph (a) as to read as follows:
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§ 50.103 Procedure for requesting
approval of proposed settlements.
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(a) Submission of notice. Insurers
must request advance approval of a
proposed settlement by submitting a
notice of the proposed settlement and
other required information in writing to
the Terrorism Risk Insurance Program
Office or its designated representative.
The address where notices are to be
submitted will be available at https://
home.treasury.gov/policy-issues/
financial-markets-financial-institutionsand-fiscal-service/federal-insuranceoffice/terrorism-risk-insurance-program
following any certification of an act of
terrorism pursuant to section 102(1) of
the Act.
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Dated: June 3, 2021.
Steven E. Seitz,
Director, Federal Insurance Office,
performing the Delegable Duties of the
Assistant Secretary for Financial Institutions.
[FR Doc. 2021–12014 Filed 6–8–21; 8:45 am]
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38 CFR Part 9
RIN 2900–AR24
ACTION:
Department of Veterans Affairs.
Interim final rule.
The Department of Veterans
Affairs (VA) is issuing this interim final
rule to extend the deadline for former
members insured under
Servicemembers’ Group Life Insurance
(SGLI) to apply for VGLI coverage
following separation from service in
order to address the inability of former
members directly or indirectly affected
by the 2019 Novel Coronavirus (COVID–
19) public health emergency to purchase
VGLI. This rule will be in effect until
December 11, 2021.
DATES: This interim final rule is
effective June 9, 2021.
Comment date: Comments must be
received on or before July 9, 2021.
ADDRESSES: Comments may be
submitted through www.Regulations.gov
or mailed to Director, VA Insurance
Service (29), 5000 Wissahickon Avenue,
Philadelphia, PA 19144. Please note that
due to circumstances associated with
the COVID–19 pandemic, VA
discourages the submission of
comments by mail. Comments should
indicate that they are submitted in
response to ‘‘RIN 2900–AR24 Interim
Final Rule—Extension of VGLI
Application Periods in Response to the
COVID–19 Public Health Emergency.’’
Comments received will be available at
regulations.gov for public viewing,
inspection or copies.
FOR FURTHER INFORMATION CONTACT: Paul
Weaver, Department of Veterans Affairs
Insurance Service (310/290B), 5000
Wissahickon Avenue, Philadelphia, PA
19144, (215) 842–2000, ext. 4263. (This
is not a toll-free number.)
SUPPLEMENTARY INFORMATION: Section
1977 of title 38, United States Code,
authorizes the VGLI program, which
provides former members separating
from service with the option of
converting existing SGLI coverage into
renewable, 5-year term group life
insurance coverage in amounts ranging
from $10,000 to $400,000 based upon
the amount of SGLI coverage. See 38
U.S.C. 1967(a), 1968(b)(1)(A), 1977(a),
(b). Section 9.2 of title 38, Code of
Federal Regulations, provides the
effective dates of VGLI coverage and
SUMMARY:
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30541
application requirements. VGLI
coverage may be granted if an
application, the initial premium, and
evidence of insurability are received
within 1 year and 120 days following
termination of duty. 38 CFR 9.2(c).
Evidence of insurability is not required
during the initial 240 days following
termination of duty. Id.
On October 7, 2020, VA published a
final rule in the Federal Register (85 FR
63208) that amended 38 CFR 9.2 by
adding new paragraph (f)(1) to extend
by 90 days the time periods under 38
CFR 9.2(c) during which former
members may apply for VGLI. Thus,
former members who submit a VGLI
application and the initial premium
within 330 days following separation
from service will not be required to
submit evidence of insurability. Former
members who do not apply for VGLI
within 330 days following separation
from service may still receive VGLI
coverage if they apply for the coverage
within 1 year and 210 days following
separation from service and submit the
initial premium and evidence of
insurability. The 90-day extensions for
former members to apply for VGLI are
in effect from June 11, 2020, through
June 11, 2021. Between June 11, 2020
and March 31, 2021, 14,855 former
members utilized these 90-day
extensions to purchase VGLI coverage.
The rationale for applying the rule for
one year was that VA is obligated to
manage VGLI according to sound and
accepted actuarial principles (see 38
U.S.C. 1977(c), (f), (g)), and that VA
would be able to utilize this one-year
time period to gather and analyze data
on VGLI claims experience to determine
if it would be actuarially sound to
further extend the applicability date.
VGLI is funded by premiums from
insured Veterans, and VA has
determined that current premium
amounts that insured Veterans pay for
VGLI coverage are sufficient to absorb
the cost of any additional VGLI claims
that would be paid due to VA extending
that application deadline period for an
additional six months. Considering the
continuing challenges involved with
obtaining necessary medical records
brought about by the COVID–19
pandemic, and that VA has determined
that it would be actuarially sound to
extend VGLI application deadlines, VA
will be extending the deadline for VGLI
applications received between June 12,
2021 and December 11, 2021. This
interim final rulemaking will continue
to provide separating service members
an additional 90 days to apply for VGLI
during the COVID–19 pandemic and is
intended to ease some of the financial
consequences of the COVID–19
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Federal Register / Vol. 86, No. 109 / Wednesday, June 9, 2021 / Rules and Regulations
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pandemic for former members,
especially those with disabilities
incurred while in service, since many of
these former members would otherwise
not qualify for a private commercial
plan of insurance due to such
disabilities.
Administrative Procedure Act
The Secretary of Veterans Affairs
finds that there is good cause to
dispense with the opportunity for prior
comment with respect to this rule and
to make the rule effective upon
publication. Pursuant to 5 U.S.C.
553(b)(B), the opportunity for advance
public comment is not required with
respect to a rulemaking when an
‘‘agency for good cause finds (and
incorporates the finding and a brief
statement of reasons therefor in the
rules issued) that notice and public
procedure thereon are impracticable,
unnecessary, or contrary to the public
interest.’’
VA previously published an interim
final rule on June 11, 2020 which
expires on June 11, 2021. In this interim
final rulemaking, we are extending the
prior rulemaking by an additional six
months. If the interim final rulemaking
is not published prior to the expiration
date, then there will be a gap in the
application deadline extensions for
those individuals applying for VGLI.
The need for this interim final rule
was unanticipated because the data
pertaining to COVID–19 was
continuously evolving and VA had to
evaluate data from an actuarial
perspective to ensure that another
extension of the application deadlines
would not put upward pressure on VGLI
premiums or otherwise negatively
impact the financial stability of the
program. The Secretary finds that it is
impracticable to delay this regulation
for the purpose of soliciting public
comment because former members
cannot receive VGLI coverage if they do
not satisfy the application requirements
within the deadlines established by 38
CFR 9.2(c). The VGLI statute does not
authorize retroactive adjudication of
applications for VGLI coverage, and
former members who wish to apply for
VGLI would be significantly harmed if
these extensions lapse, since many
former members choose to purchase
VGLI because these former members are
unable to qualify for private commercial
plans of insurance coverage due to
disabilities incurred while in service.
Section 553(d) also requires a 30-day
delayed effective date following
publication of a rule, except for ‘‘(1) a
substantive rule which grants or
recognizes an exemption or relieves a
restriction; (2) interpretative rules and
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statements of policy; or (3) as otherwise
provided by the agency for good cause
found and published with the rule.’’
Pursuant to section 553(d)(1), the
Secretary finds that this interim final
rule should be effective immediately
upon publication because this is a
substantive rule which relieves
restrictions, i.e., extends deadlines for
VGLI applications. Also, pursuant to
section 553(d)(3), the Secretary finds
that there is good cause to make the rule
effective upon publication because of
the impracticability of delaying
implementation of the regulatory
amendment, as discussed above.
For the foregoing reasons, the
Secretary of Veterans Affairs is issuing
this rule as an interim final rule with an
immediate effective date. The Secretary
of Veterans Affairs will consider and
address comments that are received
within 30 days of the date this interim
final rule is published in the Federal
Register.
regulatory flexibility analysis
requirements of 5 U.S.C. 603 and 604 do
not apply.
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563
direct agencies to assess the costs and
benefits of available regulatory
alternatives and, when regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, and other advantages;
distributive impacts; and equity).
Executive Order 13563 (Improving
Regulation and Regulatory Review)
emphasizes the importance of
quantifying both costs and benefits,
reducing costs, harmonizing rules, and
promoting flexibility. The Office of
Information and Regulatory Affairs has
determined that this rule is not a
significant regulatory action under
Executive Order 12866. The Regulatory
Impact Analysis associated with this
rulemaking can be found as a
supporting document at
www.regulations.gov.
Paperwork Reduction Act
This interim final rule contains no
provisions constituting a collection of
information under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501–
3521).
Regulatory Flexibility Act
The Secretary hereby certifies that
this interim final rule will not have a
significant economic impact on a
substantial number of small entities as
they are defined in the Regulatory
Flexibility Act, 5 U.S.C. 601–612. The
provisions contained in this interim
final rulemaking are applicable to
individual Veterans, and applications
for VGLI, as submitted by such
individuals, are specifically managed
and processed within VA and through
Prudential Insurance Company of
America, which is not considered to be
a small entity. Therefore, pursuant to 5
U.S.C. 605(b), the initial and final
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Unfunded Mandates
The Unfunded Mandates Reform Act
of 1995 requires, at 2 U.S.C. 1532, that
agencies prepare an assessment of
anticipated costs and benefits before
issuing any rule that may result in the
expenditure by State, local, and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
(adjusted annually for inflation) in any
one year. This interim final rule will
have no such effect on State, local, and
tribal governments, or on the private
sector.
Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the Office of
Information and Regulatory Affairs
designated this rule as not a major rule,
as defined by 5 U.S.C. 804(2).
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic
Assistance number and title for the
program affected by this document is
64.103, Life Insurance for Veterans.
List of Subjects in 38 CFR Part 9
Life insurance, Military personnel,
Veterans.
Signing Authority
Denis McDonough, Secretary of
Veterans Affairs, approved this
document on May 24, 2021, and
authorized the undersigned to sign and
submit the document to the Office of the
Federal Register for publication
electronically as an official document of
the Department of Veterans Affairs.
Jeffrey M. Martin,
Assistant Director, Office of Regulation Policy
& Management, Office of the Secretary,
Department of Veterans Affairs.
For the reasons stated in the
preamble, the Department of Veterans
Affairs amends 38 CFR part 9 as set
forth below:
PART 9—SERVICEMEMBERS’ GROUP
LIFE INSURANCE AND VETERANS’
GROUP LIFE INSURANCE
1. The authority citation for part 9
continues to read as follows:
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Authority: 38 U.S.C. 501, 1965–1980A,
unless otherwise noted.
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Federal Register / Vol. 86, No. 109 / Wednesday, June 9, 2021 / Rules and Regulations
■ 2. Section 9.2 is amended by revising
paragraph (f)(2) to read as follows:
§ 9.2
Effective date; applications
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(f) * * *
(2) Paragraph (f)(1) of this section
shall not apply to an application or
initial premium received after December
11, 2021.
[FR Doc. 2021–12017 Filed 6–8–21; 8:45 am]
BILLING CODE 8320–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R03–OAR–2020–0321; FRL–10023–
81–Region 3]
Air Plan Approval; Pennsylvania; 1997
8-Hour Ozone National Ambient Air
Quality Standards Second
Maintenance Plan for the Tioga County
Area
section for
additional availability information.
FOR FURTHER INFORMATION CONTACT:
Adam Yarina, Planning &
Implementation Branch (3AD30), Air &
Radiation Division, U.S. Environmental
Protection Agency, Region III, 1650
Arch Street, Philadelphia, Pennsylvania
19103. The telephone number is (215)
814–2108. Mr. Yarina can also be
reached via electronic mail at
Yarina.Adam@epa.gov.
SUPPLEMENTARY INFORMATION:
INFORMATION CONTACT
I. Background
On February 8, 2021 (86 FR 8569),
EPA published a notice of proposed
rulemaking (NPRM) for the
Commonwealth of Pennsylvania. In the
NPRM, EPA proposed approval of
Pennsylvania’s plan for maintaining the
1997 ozone NAAQS in the Tioga County
Area through July 6, 2027, in
accordance with CAA section 175A. The
formal SIP revision was submitted by
PADEP on March 10, 2020.
II. Summary of SIP Revision and EPA
Analysis
On July 6, 2007 (72 FR 36892,
effective same day), EPA approved a
SUMMARY: The Environmental Protection redesignation request and maintenance
plan from PADEP for the Tioga County
Agency (EPA) is approving a state
Area. In accordance with CAA section
implementation plan (SIP) revision
175A(b), at the end of the eighth year
submitted by the Commonwealth of
after the effective date of the
Pennsylvania. The revision pertains to
the Commonwealth’s plan, submitted by redesignation, the state must also
submit a second maintenance plan to
the Pennsylvania Department of
ensure ongoing maintenance of the
Environmental Protection (PADEP), for
standard for an additional 10 years, and
maintaining the 1997 8-hour ozone
in South Coast Air Quality Management
national ambient air quality standard
District v. EPA,1 the D.C. Circuit held
(NAAQS) (referred to as the ‘‘1997
that this requirement cannot be waived
ozone NAAQS’’) in the Tioga County,
for areas—like the Tioga County Area—
Pennsylvania area (Tioga County Area).
that had been redesignated to
EPA is approving these revisions to the
attainment for the 1997 8-hour ozone
Pennsylvania SIP in accordance with
NAAQS prior to revocation and that
the requirements of the Clean Air Act
were designated attainment for the 2008
(CAA).
ozone NAAQS. CAA section 175A sets
DATES: This final rule is effective on July
forth the criteria for adequate
9, 2021.
maintenance plans. In addition, EPA
ADDRESSES: EPA has established a
has published longstanding guidance
docket for this action under Docket ID
that provides further insight on the
Number EPA–R03–OAR–2020–0321. All content of an approvable maintenance
documents in the docket are listed on
plan, explaining that a maintenance
the https://www.regulations.gov
plan should address five elements: (1)
website. Although listed in the index,
An attainment emissions inventory; (2)
some information is not publicly
a maintenance demonstration; (3) a
available, e.g., confidential business
commitment for continued air quality
information (CBI) or other information
monitoring; (4) a process for verification
whose disclosure is restricted by statute. of continued attainment; and (5) a
Certain other material, such as
contingency plan.2 PADEP’s March 10,
copyrighted material, is not placed on
2020 submittal fulfills Pennsylvania’s
the internet and will be publicly
1 882 F.3d 1138 (D.C. Cir. 2018).
available only in hard copy form.
2 ‘‘Procedures for Processing Requests to
Publicly available docket materials are
Redesignate Areas to Attainment,’’ Memorandum
available through https://
from John Calcagni, Director, Air Quality
www.regulations.gov, or please contact
Management Division, September 4, 1992 (Calcagni
the person identified in the FOR FURTHER Memo).
Environmental Protection
Agency (EPA).
ACTION: Final rule.
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obligation to submit a second
maintenance plan and addresses each of
the five necessary elements.
As discussed in the February 8, 2021
NPRM, EPA allows the submittal of a
limited maintenance plan (LMP) to meet
the statutory requirement that the area
will maintain for the statutory period.
Qualifying areas may meet the
maintenance demonstration by showing
that the area’s design value 3 is well
below the NAAQS and that the
historical stability of the area’s air
quality levels indicates that the area is
unlikely to violate the NAAQS in the
future. EPA evaluated PADEP’s March
10, 2020 submittal for consistency with
all applicable EPA guidance and CAA
requirements. EPA found that the
submittal met CAA section 175A and all
CAA requirements and proposed
approval of the LMP for the Tioga
County Area as a revision to the
Pennsylvania SIP.
Other specific requirements of
PADEP’s March 10, 2020 submittal and
the rationale for EPA’s proposed action
are explained in the NPRM and will not
be restated here.
III. EPA’s Response to Comments
Received
EPA received comments on the
February 8, 2021 NPRM from two
commenters. All comments received are
in the docket for this rulemaking action.
A summary of the comments and EPA’s
responses are provided herein.
The first commenter asserts that EPA
cannot approve this plan because air
quality levels were not at or below 85%
of the NAAQS, and that one of EPA’s
methods for demonstrating continued
future maintenance of the NAAQS is
flawed.
Comment 1: The commenter asserts
that EPA cannot approve this plan
‘‘because the air quality has not been
below 85% of the NAAQS for the time
period EPA claims.’’ The commenter
claims that the following statement in
EPA’s proposed approval of the limited
maintenance plan is incorrect: ‘‘The
Tioga County Area has maintained air
quality levels below the 1997 ozone
NAAQS since the Area first attained the
NAAQS in 2006, and maintained air
quality levels at or below 85% of the
NAAQS since 2009.’’ The commenter
claims that this statement is refuted by
EPA’s own data, which shows the air
quality was at 0.071 for the years 2010–
2012.
3 The ozone design value for a monitoring site is
the 3-year average of the annual fourth-highest daily
maximum 8-hour average ozone concentrations.
The design value for an ozone nonattainment area
is the highest design value of any monitoring site
in the area.
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[Federal Register Volume 86, Number 109 (Wednesday, June 9, 2021)]
[Rules and Regulations]
[Pages 30541-30543]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12017]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 9
RIN 2900-AR24
Extension of Veterans' Group Life Insurance (VGLI) Application
Periods in Response to the COVID-19 Public Health Emergency
AGENCY: Department of Veterans Affairs.
ACTION: Interim final rule.
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SUMMARY: The Department of Veterans Affairs (VA) is issuing this
interim final rule to extend the deadline for former members insured
under Servicemembers' Group Life Insurance (SGLI) to apply for VGLI
coverage following separation from service in order to address the
inability of former members directly or indirectly affected by the 2019
Novel Coronavirus (COVID-19) public health emergency to purchase VGLI.
This rule will be in effect until December 11, 2021.
DATES: This interim final rule is effective June 9, 2021.
Comment date: Comments must be received on or before July 9, 2021.
ADDRESSES: Comments may be submitted through www.Regulations.gov or
mailed to Director, VA Insurance Service (29), 5000 Wissahickon Avenue,
Philadelphia, PA 19144. Please note that due to circumstances
associated with the COVID-19 pandemic, VA discourages the submission of
comments by mail. Comments should indicate that they are submitted in
response to ``RIN 2900-AR24 Interim Final Rule--Extension of VGLI
Application Periods in Response to the COVID-19 Public Health
Emergency.'' Comments received will be available at regulations.gov for
public viewing, inspection or copies.
FOR FURTHER INFORMATION CONTACT: Paul Weaver, Department of Veterans
Affairs Insurance Service (310/290B), 5000 Wissahickon Avenue,
Philadelphia, PA 19144, (215) 842-2000, ext. 4263. (This is not a toll-
free number.)
SUPPLEMENTARY INFORMATION: Section 1977 of title 38, United States
Code, authorizes the VGLI program, which provides former members
separating from service with the option of converting existing SGLI
coverage into renewable, 5-year term group life insurance coverage in
amounts ranging from $10,000 to $400,000 based upon the amount of SGLI
coverage. See 38 U.S.C. 1967(a), 1968(b)(1)(A), 1977(a), (b). Section
9.2 of title 38, Code of Federal Regulations, provides the effective
dates of VGLI coverage and application requirements. VGLI coverage may
be granted if an application, the initial premium, and evidence of
insurability are received within 1 year and 120 days following
termination of duty. 38 CFR 9.2(c). Evidence of insurability is not
required during the initial 240 days following termination of duty. Id.
On October 7, 2020, VA published a final rule in the Federal
Register (85 FR 63208) that amended 38 CFR 9.2 by adding new paragraph
(f)(1) to extend by 90 days the time periods under 38 CFR 9.2(c) during
which former members may apply for VGLI. Thus, former members who
submit a VGLI application and the initial premium within 330 days
following separation from service will not be required to submit
evidence of insurability. Former members who do not apply for VGLI
within 330 days following separation from service may still receive
VGLI coverage if they apply for the coverage within 1 year and 210 days
following separation from service and submit the initial premium and
evidence of insurability. The 90-day extensions for former members to
apply for VGLI are in effect from June 11, 2020, through June 11, 2021.
Between June 11, 2020 and March 31, 2021, 14,855 former members
utilized these 90-day extensions to purchase VGLI coverage.
The rationale for applying the rule for one year was that VA is
obligated to manage VGLI according to sound and accepted actuarial
principles (see 38 U.S.C. 1977(c), (f), (g)), and that VA would be able
to utilize this one-year time period to gather and analyze data on VGLI
claims experience to determine if it would be actuarially sound to
further extend the applicability date. VGLI is funded by premiums from
insured Veterans, and VA has determined that current premium amounts
that insured Veterans pay for VGLI coverage are sufficient to absorb
the cost of any additional VGLI claims that would be paid due to VA
extending that application deadline period for an additional six
months. Considering the continuing challenges involved with obtaining
necessary medical records brought about by the COVID-19 pandemic, and
that VA has determined that it would be actuarially sound to extend
VGLI application deadlines, VA will be extending the deadline for VGLI
applications received between June 12, 2021 and December 11, 2021. This
interim final rulemaking will continue to provide separating service
members an additional 90 days to apply for VGLI during the COVID-19
pandemic and is intended to ease some of the financial consequences of
the COVID-19
[[Page 30542]]
pandemic for former members, especially those with disabilities
incurred while in service, since many of these former members would
otherwise not qualify for a private commercial plan of insurance due to
such disabilities.
Administrative Procedure Act
The Secretary of Veterans Affairs finds that there is good cause to
dispense with the opportunity for prior comment with respect to this
rule and to make the rule effective upon publication. Pursuant to 5
U.S.C. 553(b)(B), the opportunity for advance public comment is not
required with respect to a rulemaking when an ``agency for good cause
finds (and incorporates the finding and a brief statement of reasons
therefor in the rules issued) that notice and public procedure thereon
are impracticable, unnecessary, or contrary to the public interest.''
VA previously published an interim final rule on June 11, 2020
which expires on June 11, 2021. In this interim final rulemaking, we
are extending the prior rulemaking by an additional six months. If the
interim final rulemaking is not published prior to the expiration date,
then there will be a gap in the application deadline extensions for
those individuals applying for VGLI.
The need for this interim final rule was unanticipated because the
data pertaining to COVID-19 was continuously evolving and VA had to
evaluate data from an actuarial perspective to ensure that another
extension of the application deadlines would not put upward pressure on
VGLI premiums or otherwise negatively impact the financial stability of
the program. The Secretary finds that it is impracticable to delay this
regulation for the purpose of soliciting public comment because former
members cannot receive VGLI coverage if they do not satisfy the
application requirements within the deadlines established by 38 CFR
9.2(c). The VGLI statute does not authorize retroactive adjudication of
applications for VGLI coverage, and former members who wish to apply
for VGLI would be significantly harmed if these extensions lapse, since
many former members choose to purchase VGLI because these former
members are unable to qualify for private commercial plans of insurance
coverage due to disabilities incurred while in service. Section 553(d)
also requires a 30-day delayed effective date following publication of
a rule, except for ``(1) a substantive rule which grants or recognizes
an exemption or relieves a restriction; (2) interpretative rules and
statements of policy; or (3) as otherwise provided by the agency for
good cause found and published with the rule.'' Pursuant to section
553(d)(1), the Secretary finds that this interim final rule should be
effective immediately upon publication because this is a substantive
rule which relieves restrictions, i.e., extends deadlines for VGLI
applications. Also, pursuant to section 553(d)(3), the Secretary finds
that there is good cause to make the rule effective upon publication
because of the impracticability of delaying implementation of the
regulatory amendment, as discussed above.
For the foregoing reasons, the Secretary of Veterans Affairs is
issuing this rule as an interim final rule with an immediate effective
date. The Secretary of Veterans Affairs will consider and address
comments that are received within 30 days of the date this interim
final rule is published in the Federal Register.
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, when
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, and other advantages; distributive impacts;
and equity). Executive Order 13563 (Improving Regulation and Regulatory
Review) emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
The Office of Information and Regulatory Affairs has determined that
this rule is not a significant regulatory action under Executive Order
12866. The Regulatory Impact Analysis associated with this rulemaking
can be found as a supporting document at www.regulations.gov.
Regulatory Flexibility Act
The Secretary hereby certifies that this interim final rule will
not have a significant economic impact on a substantial number of small
entities as they are defined in the Regulatory Flexibility Act, 5
U.S.C. 601-612. The provisions contained in this interim final
rulemaking are applicable to individual Veterans, and applications for
VGLI, as submitted by such individuals, are specifically managed and
processed within VA and through Prudential Insurance Company of
America, which is not considered to be a small entity. Therefore,
pursuant to 5 U.S.C. 605(b), the initial and final regulatory
flexibility analysis requirements of 5 U.S.C. 603 and 604 do not apply.
Unfunded Mandates
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C.
1532, that agencies prepare an assessment of anticipated costs and
benefits before issuing any rule that may result in the expenditure by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more (adjusted annually for
inflation) in any one year. This interim final rule will have no such
effect on State, local, and tribal governments, or on the private
sector.
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a major rule, as defined by 5 U.S.C. 804(2).
Paperwork Reduction Act
This interim final rule contains no provisions constituting a
collection of information under the Paperwork Reduction Act of 1995 (44
U.S.C. 3501-3521).
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number and title for the
program affected by this document is 64.103, Life Insurance for
Veterans.
List of Subjects in 38 CFR Part 9
Life insurance, Military personnel, Veterans.
Signing Authority
Denis McDonough, Secretary of Veterans Affairs, approved this
document on May 24, 2021, and authorized the undersigned to sign and
submit the document to the Office of the Federal Register for
publication electronically as an official document of the Department of
Veterans Affairs.
Jeffrey M. Martin,
Assistant Director, Office of Regulation Policy & Management, Office of
the Secretary, Department of Veterans Affairs.
For the reasons stated in the preamble, the Department of Veterans
Affairs amends 38 CFR part 9 as set forth below:
PART 9--SERVICEMEMBERS' GROUP LIFE INSURANCE AND VETERANS' GROUP
LIFE INSURANCE
0
1. The authority citation for part 9 continues to read as follows:
Authority: 38 U.S.C. 501, 1965-1980A, unless otherwise noted.
[[Page 30543]]
0
2. Section 9.2 is amended by revising paragraph (f)(2) to read as
follows:
Sec. 9.2 Effective date; applications
* * * * *
(f) * * *
(2) Paragraph (f)(1) of this section shall not apply to an
application or initial premium received after December 11, 2021.
[FR Doc. 2021-12017 Filed 6-8-21; 8:45 am]
BILLING CODE 8320-01-P
