[Federal Register Volume 81, Number 81 (Wednesday, April 27, 2016)]
[Rules and Regulations]
[Page 24693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09674]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 81, No. 81 / Wednesday, April 27, 2016 /
Rules and Regulations
[[Page 24693]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 870
RIN 3206-AM67
Federal Employees' Group Life Insurance Program: Court Orders
Prior to July 22, 1998
AGENCY: U.S. Office of Personnel Management.
ACTION: Final rule.
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SUMMARY: The Office of Personnel Management (OPM) is issuing this final
regulation to adopt as final the interim final regulation published on
December 4, 2012. The regulation implements section 8705 of title 5,
United States Code regarding the effect of any court decree of divorce,
annulment, or legal separation, or any court-approved property
settlement agreement incident to any court decree of divorce,
annulment, or legal separation (hereinafter ``court order'') where the
court order expressly provides that an individual receive Federal
Employee's Group Life Insurance (FEGLI) benefits. The regulations will
allow court orders submitted to the appropriate Federal agency before
July 22, 1998 to be effective for providing FEGLI benefits if the court
order was received in the appropriate office before the insured Federal
employee's or annuitant's death. This revision does not affect the
current statutory limitation that court orders apply only when FEGLI
benefits are based on insured individuals who died on or after July 22,
1998.
DATES: This rule is effective April 27, 2016.
FOR FURTHER INFORMATION CONTACT: Marguerite Martel, Senior Policy
Analyst, at (202) 606-0004 or email: [email protected].
SUPPLEMENTARY INFORMATION: Public Law 105-205, 112 Stat. 683, enacted
July 22, 1998, amending section 8705 of title 5, United States Code,
required benefits to be paid in accordance with the terms of a court
order instead of the otherwise existing statutory order of precedence
for payment of benefits under FEGLI. On October 8, 1999, OPM published
a final regulation interpreting the law to mean that only those court
orders received in the appropriate office after the date the law was
enacted would be valid to name a FEGLI beneficiary. The regulation
amended section 870.801(d)(2), of title 5, Code of Federal Regulations.
Based on Pascavage v. Office of Personnel Management, 773 F.
Supp.2d 452 (D. Del. 2011), OPM is changing this regulation to provide
FEGLI benefits based on court orders submitted to the appropriate
Federal agency before July 22, 1998, so long as the court order was
received in the appropriate office before the insured Federal
employee's or annuitant's death. This change is consistent with the
settlement agreement in this case, Pascavage v. Office of Personnel
Management, C.A. No.: 09-276-LPS-MPT (D. Del. filed Aug. 6, 2012).\1\
This revision does not affect the current statutory limitation that
court orders apply only when FEGLI benefits are based on insured
individuals who died on or after July 22, 1998. On December 4, 2012,
OPM published an interim final regulation at 77 FR 71687. We received
no comments on the interim final regulation. Therefore, OPM is adopting
the interim final regulation with no changes.
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\1\ The settlement agreement has been preliminarily approved by
the Court.
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Regulatory Impact Analysis
OPM has examined the impact of this rule as required by Executive
Order 12866 (September 1993, Regulatory Planning and Review) 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 is not
considered a major rule because OPM estimates there are relatively few
court orders received by the appropriate office before July 22, 1998.
Paperwork Reduction Act
This document does not contain proposed information collection
requirements subject to the Paperwork Reduction Act of 1995, Public Law
104-13.
Regulatory Flexibility Act
I certify that these regulations will not have a significant
economic impact on a substantial number of small entities because they
will apply only to Federal employees, annuitants and their former
spouses.
List of Subjects in 5 CFR Part 870
Administrative practice and procedure, Government employees,
Hostages, Iraq, Kuwait, Lebanon, Life insurance, Retirement.
U.S. Office of Personnel Management.
Beth F. Cobert,
Acting Director.
PART 870--FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM
0
Accordingly, the interim rule amending 5 CFR part 870 which was
published at 77 FR 71687 on Dceemmber 4, 2012, is adopted as a final
rule without change.
[FR Doc. 2016-09674 Filed 4-26-16; 8:45 am]
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