[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Proposed Rules]
[Pages 41928-41930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16949]
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OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 843
RIN 3206-AM99
Federal Employees' Retirement System; Present Value Conversion
Factors for Spouses of Deceased Separated Employees
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
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SUMMARY: The Office of Personnel Management (OPM) is issuing a proposed
rule to revise the table of reduction factors for early commencing
dates of survivor annuities for spouses of separated employees who die
before the date on which they would be eligible for unreduced deferred
annuities, and to revise the annuity factor for spouses of deceased
employees who die in service when those spouses elect to receive the
basic employee death benefit in 36 installments under the Federal
Employees' Retirement System (FERS) Act of 1986. These rules are
necessary to ensure that the tables conform to the economic and
demographic assumptions adopted by the Board of Actuaries and published
in the Federal Register on May 21, 2014, as required by 5 U.S.C.
8461(i).
DATES: We must receive your comments by September 16, 2014.
ADDRESSES: You may submit comments, identified by docket number and/or
RIN number 3206-AM99, by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Email: [email protected]. Include RIN number 3206-AM99 in the
subject line of the message.
Mail: Jim Giuseppe, Retirement Policy, Retirement
Services, Office of Personnel Management, 1900 E. Street NW.,
Washington, DC 20415-3200.
FOR FURTHER INFORMATION CONTACT: Roxann Johnson, (202) 606-0299.
SUPPLEMENTARY INFORMATION: On May 21, 2014, OPM published a notice in
the Federal Register to revise the normal cost percentages under the
Federal Employees' Retirement System (FERS) Act of 1986, Public Law 99-
335, 100 Stat. 514, as amended, based on economic assumptions and
demographic factors adopted by the Board of Actuaries of the Civil
Service Retirement System. 79 Fed. Reg. 29,224 (May 21, 2014). By
statute under 5 U.S.C. 8461(i), the demographic factors
[[Page 41929]]
and economic assumptions require corresponding changes in factors used
to produce actuarially equivalent benefits when required by the FERS
Act.
Section 843.309 of title 5, Code of Federal Regulations, regulates
the payment of the basic employee death benefit. Under 5 U.S.C.
8442(b), the basic employee death benefit may be paid as a lump sum or
as an equivalent benefit in 36 installments. These rules amend 5 CFR
843.309(b)(2) to conform the factor used to convert the lump sum to 36-
installment payments with the revised economic assumptions.
Section 843.311 of title 5, Code of Federal Regulations, regulates
the benefits for the survivors of separated employees under 5 U.S.C.
8442(c). This section provides a choice of benefits for eligible
current and former spouses. If the current or former spouse is the
person entitled to the unexpended balance under the order of precedence
under 5 U.S.C. 8424, he or she may elect to receive the unexpended
balance instead of an annuity.
Alternatively, an eligible current or former spouse may elect to
receive an annuity commencing on the day after the employee's death or
on the deceased separated employee's 62nd birthday. If the annuity
commences on the deceased separated employee's 62nd birthday, the
annuity will equal 50 percent of the annuity that the separated
employee would have received had he or she attained age 62. If the
current or former spouse elects the earlier commencing date, the
annuity is reduced using the factors in Appendix A to subpart C of part
843 to make the annuity actuarially equivalent to the present value of
the annuity that the spouse or former spouse would have received if the
annuity had commenced on the retiree's 62nd birthday. These rules amend
that appendix to conform to the revised economic assumptions.
Executive Order 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with Executive Order (E.O.) 12866, as amended by E.O.
13258 and E.O. 13422.
Regulatory Flexibility Act
I certify that this regulation will not have a significant economic
impact on a substantial number of small entities because the regulation
will only affect retirement payments to surviving current and former
spouses of former employees and Members who separated from Federal
service with title to a deferred annuity.
List of Subjects in 5 CFR Part 843
Air traffic controllers, Disability benefits, Firefighters,
Government employees, Law enforcement officers, Pensions, Retirement.
U.S. Office of Personnel Management.
Katherine Archuleta,
Director.
For the reasons stated in the preamble, the Office of Personnel
Management proposes to amend 5 CFR part 843 as follows:
PART 843--FEDERAL EMPLOYEES RETIREMENT SYSTEM--DEATH BENEFITS AND
EMPLOYEE REFUNDS
0
1. The authority citation for part 843 continues to read as follows:
Authority: 5 U.S.C. 8461; Sec. Sec. 843.205, 843.208, and
843.209 also issued under 5 U.S.C. 8424; Sec. 843.309 also issued
under 5 U.S.C. 8442; Sec. 843.406 also issued under 5 U.S.C. 8441.
Subpart C--Current and Former Spouse Benefits
0
2. In Sec. 843.309, revise paragraph (b)(2) to read as follows:
Sec. 843.309 Basic employee death benefit.
* * * * *
(b) * * *
(2) For deaths occurring on or after October 1, 2014, 36 equal
monthly installments of 2.99522 percent of the amount of the basic
employee death benefit.
* * * * *
0
3. Revise Appendix A to subpart C of part 843 to read as follows:
Appendix A to Subpart C of Part 843--Present Value Conversion Factors
for Earlier Comencing Date of Annuities of Current and Former Spouses
of Deceased Separated Employees
With at least 10 but less than 20 years of creditable service--
------------------------------------------------------------------------
Age of separated employee at birthday before death Multiplier
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26...................................................... .0638
27...................................................... .0700
28...................................................... .0764
29...................................................... .0831
30...................................................... .0902
31...................................................... .0978
32...................................................... .1058
33...................................................... .1142
34...................................................... .1233
35...................................................... .1331
36...................................................... .1435
37...................................................... .1547
38...................................................... .1667
39...................................................... .1794
40...................................................... .1931
41...................................................... .2079
42...................................................... .2236
43...................................................... .2406
44...................................................... .2588
45...................................................... .2784
46...................................................... .2993
47...................................................... .3218
48...................................................... .3463
49...................................................... .3725
50...................................................... .4008
51...................................................... .4313
52...................................................... .4644
53...................................................... .5001
54...................................................... .5387
55...................................................... .5806
56...................................................... .6262
57...................................................... .6756
58...................................................... .7295
59...................................................... .7882
60...................................................... .8525
61...................................................... .9228
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With at least 20, but less than 30 years of creditable service--
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Age of separated employee at birthday before death Multiplier
------------------------------------------------------------------------
36...................................................... .1693
37...................................................... .1825
38...................................................... .1966
39...................................................... .2116
40...................................................... .2276
41...................................................... .2449
42...................................................... .2634
43...................................................... .2833
44...................................................... .3047
45...................................................... .3276
46...................................................... .3523
47...................................................... .3787
48...................................................... .4073
49...................................................... .4380
50...................................................... .4712
51...................................................... .5070
52...................................................... .5457
53...................................................... .5875
54...................................................... .6327
55...................................................... .6818
56...................................................... .7351
57...................................................... .7930
58...................................................... .8560
59...................................................... .9248
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With at least 30 years of creditable service--
------------------------------------------------------------------------
Multiplier by separated
employee's year of birth
Age of separated employee at birthday before -------------------------
death From 1950
After 1966 through
1966
------------------------------------------------------------------------
46............................................ .4457 .4811
47............................................ .4790 .5170
48............................................ .5151 .5559
49............................................ .5538 .5976
50............................................ .5955 .6426
51............................................ .6405 .6911
52............................................ .6892 .7435
53............................................ .7417 .8001
54............................................ .7986 .8614
55............................................ .8603 .9279
56............................................ .9272 1.0000
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[FR Doc. 2014-16949 Filed 7-17-14; 8:45 am]
BILLING CODE 6325-38-P