[Federal Register Volume 72, Number 73 (Tuesday, April 17, 2007)]
[Rules and Regulations]
[Pages 19099-19100]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-7267]
-----------------------------------------------------------------------
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 890
RIN 3206-AI62
Waiver of Requirements for Continued Coverage During Retirement
AGENCY: Office of Personnel Management.
ACTION: Final Rule.
-----------------------------------------------------------------------
SUMMARY: Under current Federal Employees Health Benefits (FEHB) Program
regulations, the Office of Personnel Management (OPM) may waive the
eligibility requirements for health benefits coverage as an annuitant
for an individual when, in its sole discretion, it determines that it
would be against equity and good conscience not to allow a person to be
enrolled in the FEHB Program as an annuitant. The regulations state
that an individual's failure to satisfy eligibility requirements must
be due to exceptional circumstances. They also list specific situations
where a waiver will not be granted by OPM such as when an individual's
retirement is based on a disability or an involuntary separation, or
when an individual was misadvised by his/her employing office. This
final regulation eliminates these specific situations from the
regulation. This final regulation provides OPM with more flexibility
when granting waivers.
EFFECTIVE DATE: May 17, 2007.
ADDRESSES: This document is available for viewing at the U.S. Office of
Personnel Management, 1900 E Street, NW., Washington DC 20415. Send all
comments to Michael Kaszynski, Insurance Policy, U.S. Office of
Personnel Management, 1900 E Street, NW., Room 3415, Washington DC
20415.
FOR FURTHER INFORMATION CONTACT: Michael Kaszynski, Policy Analyst, at
202-606-0004.
SUPPLEMENTARY INFORMATION: Under 5 U.S.C. 8905(b), OPM may waive the
eligibility requirements for health benefits coverage as an annuitant
for an individual when, in its sole discretion, it determines that it
would be against equity and good conscience not to allow a person to be
enrolled in the FEHB Program as an annuitant. Under 5 CFR 890.108, an
individual's failure to satisfy eligibility requirements must be due to
exceptional circumstances. An individual requesting a waiver must
provide OPM with evidence that (1) the individual intended to have FEHB
coverage as an annuitant (retiree); (2) the circumstances that
prevented the individual from meeting the requirements of 5 U.S.C.
8905(b) were beyond the individual's control; and (3) the individual
acted reasonably to protect his or her right to continue coverage into
retirement.
Section 890.108 lists specific situations where a waiver will not
be granted by OPM such as when an individual's retirement is based on a
disability or an involuntary separation, or an individual was
misadvised by his/her employing office. This final regulation
eliminates these specific situations from 5 CFR 890.108 to provide more
flexibility to the waiver process.
On August 7, 2006, a proposed regulation was published in the
Federal Register at 71 FR 44592. We received no comments on the
proposed rule. We have made no changes to this rule from its proposed
version.
Collection of Information Requirement
This final rule does not impose information collection and
recordkeeping requirements that meet the definition of the Paperwork
Reduction Act of 1995's term ``collection of information'' which means
obtaining, causing to be obtained, soliciting, or requiring the
disclosure to third parties or the public, of facts or opinions by or
for an agency, regardless of form or format, calling for either answers
to identical questions posed to, or identical reporting or
recordkeeping requirements imposed on ten or more persons, other than
agencies, instrumentalities, or employees of the United States; or
answers to questions posed to agencies, instrumentalities, or employees
of the United States which are to be used for general statistical
purposes. Consequently, it need not be reviewed by the Office of
Management and Budget under the authority of the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.).
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) requires agencies to analyze
options for regulatory relief of small businesses. For purposes of the
RFA, small entities include small businesses, nonprofit organizations,
and government agencies with revenues of $11.5 million or less in any
one year. This final rulemaking affects FEHB Program health insurance
eligibility requirements which do not impact the dollar threshold.
Therefore, I certify that this final regulation will not have a
significant economic impact on a substantial number of small entities.
Regulatory Impact Analysis
We have examined the impact of this final rule as required by
Executive Order 12866 (September 1993, Regulatory Planning and Review),
the RFA (September 16, 1980, Pub. L. 96-354), section 1102(b) of the
Social Security Act, the Unfunded Mandates Reform Act of 1995, (Pub. L.
104-4), and Executive Order 13132. Executive Order 12866 (as amended by
Executive Order 13258, which merely assigns responsibility of duties)
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 ($100 million or more
in any one year). This rule is not considered a major rule, as defined
in section 804(2) of title 5, United States Code, because we estimate
its impact will only affect federal government employment offices. Any
resulting economic impact would not be expected to exceed the dollar
threshold.
Executive Order 12866, Regulatory Review
This final rule has been reviewed by the Office of Management and
Budget in accordance with Executive Order 12866.
[[Page 19100]]
List of Subjects in 5 CFR Part 890
Administrative practice and procedure, Government employees, Health
facilities, Health insurance, Health professionals, Hostages, Iraq,
Kuwait, Lebanon, Military personnel, Reporting and recordkeeping
requirements, Retirement.
Office of Personnel Management.
Linda M. Springer,
Director.
0
For the reasons set forth in the preamble, OPM is amending 5 CFR part
890 as follows:
PART 890--FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM
0
1. The authority citation for part 890 continues to read as follows:
Authority: 5 U.S.C. 8913; Sec. 890.803 also issued under 50
U.S.C. 403p, 22 U.S.C. 4069c and 4069c-1; subpart L also issued
under sec. 599C of Pub. L. 101-513, 104 Stat. 2064, as amended;
Sec. 890.102 also issued under sections 11202(f), 11232(e), 11246
(b) and (c) of Pub. L. 105-33, 111 Stat. 251; and section 721 of
Pub. L. 105-261, 112 Stat. 2061, unless otherwise noted.
0
2. Section 890.108 is revised to read as follows:
Sec. 890.108 Will OPM waive requirements for continued coverage
during retirement?
(a) Under 5 U.S.C. 8905(b), OPM may waive the eligibility
requirements for health benefits coverage as an annuitant for an
individual when, in its sole discretion, it determines that due to
exceptional circumstances it would be against equity and good
conscience not to allow a person to be enrolled in the FEHB Program as
an annuitant.
(b) The individual's failure to satisfy the eligibility
requirements must be due to exceptional circumstances. An individual
requesting a waiver must provide OPM with evidence that:
(1) The individual intended to have FEHB coverage as an annuitant
(retiree);
(2) The circumstances that prevented the individual from meeting
the requirements of 5 U.S.C. 8905(b) were beyond the individual's
control; and
(3) The individual acted reasonably to protect his or her right to
continue coverage into retirement.
[FR Doc. E7-7267 Filed 4-16-07; 8:45 am]
BILLING CODE 6329-39-P