[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 512 Reported in Senate (RS)]
Calendar No. 708
103d CONGRESS
2d Session
H. R. 512
[Report No. 103-395]
_______________________________________________________________________
AN ACT
To amend chapter 87 of title 5, United States Code, to provide that
group life insurance benefits under such chapter may, upon application,
be paid out to an insured individual who is terminally ill, and for
other purposes.
_______________________________________________________________________
October 3 (legislative day, September 12), 1994
Reported without amendment and an amendment to the title
Calendar No. 708
103d CONGRESS
2d Session
H. R. 512
[Report No. 103-395]
To amend chapter 87 of title 5, United States Code, to provide that
group life insurance benefits under such chapter may, upon application,
be paid out to an insured individual who is terminally ill, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 20, 1994
Received; read twice and referred to the Committee on Governmental
Affairs
October 3 (legislative day, September 12), 1994
Reported by Mr. Glenn, without amendment and an amendment to the title
_______________________________________________________________________
AN ACT
To amend chapter 87 of title 5, United States Code, to provide that
group life insurance benefits under such chapter may, upon application,
be paid out to an insured individual who is terminally ill, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``FEGLI Living Benefits Act''.
SEC. 2. OPTION TO RECEIVE ``LIVING BENEFITS''.
(a) In General.--Chapter 87 of title 5, United States Code, is
amended by inserting after section 8714c the following:
``Sec. 8714d. Option to receive `living benefits'
``(a) For the purpose of this section, an individual shall be
considered to be `terminally ill' if such individual has a medical
prognosis that such individual's life expectancy is 9 months or less.
``(b) The Office of Personnel Management shall prescribe
regulations under which any individual covered by group life insurance
under section 8704(a) may, if such individual is terminally ill, elect
to receive a lump-sum payment equal to--
``(1) the full amount of insurance under section 8704(a)
(or portion thereof designated for this purpose under
subsection (d)(4)) which would otherwise be payable under this
chapter (on the establishment of a valid claim)--
``(A) computed based on a date determined under
regulations of the Office (but not later than 30 days
after the date on which the individual's application
for benefits under this section is approved or deemed
approved under subsection (d)(3)); and
``(B) assuming continued coverage under this
chapter at that time;
reduced by
``(2) an amount necessary to assure that there is no
increase in the actuarial value of the benefit paid (as
determined under regulations of the Office).
``(c)(1) If a lump-sum payment is taken under this section--
``(A) no insurance under the provisions of section 8704 (a)
or (b) shall be payable based on the death or any loss of the
individual involved, unless the lump-sum payment represents
only a portion of the total benefits which could have been
taken, in which case benefits under those provisions shall
remain in effect, except that the basic insurance amount on
which they are based--
``(i) shall be reduced by the percentage which the
designated portion comprised relative to the total
benefits which could have been taken (rounding the
result to the nearest multiple of $1,000 or, if midway
between multiples of $1,000, to the next higher
multiple of $1,000); and
``(ii) shall not be subject to further adjustment;
and
``(B) deductions and withholdings under section 8707, and
contributions under section 8708, shall be terminated with
respect to such individual (or reduced in a manner consistent
with the percentage reduction in the individual's basic
insurance amount, if applicable), effective with respect to any
amounts which would otherwise become due on or after the date
of payment under this section.
``(2) An individual who takes a lump-sum payment under this section
(whether full or partial) remains eligible for optional benefits under
sections 8714a-8714c (subject to payment of the full cost of those
benefits in accordance with applicable provisions of the section or
sections involved, to the same extent as if no election under this
section had been made).
``(d)(1) The Office's regulations shall include provisions
regarding the form and manner in which an application under this
section shall be made and the procedures in accordance with which any
such application shall be considered.
``(2) An application shall not be considered to be complete unless
it includes such information and supporting evidence as the regulations
require, including certification by an appropriate medical authority as
to the nature of the individual's illness and that the individual is
not expected to live more than 9 months because of that illness.
``(3)(A) In order to ascertain the reliability of any medical
opinion or finding submitted as part of an application under this
section, the covered individual may be required to submit to a medical
examination under the direction of the agency or entity considering the
application. The individual shall not be liable for the costs
associated with any examination required under this subparagraph.
``(B) Any decision by the reviewing agency or entity with respect
to an application for benefits under this section (including one
relating to an individual's medical prognosis) shall not be subject to
administrative review.
``(4)(A) An individual making an election under this section may
designate that only a limited portion (expressed as a multiple of
$1,000) of the total amount otherwise allowable under this section be
paid pursuant to such election.
``(B) A designation under this paragraph may not be made by an
individual described in paragraph (1) or (2) of section 8706(b).
``(5) An election to receive benefits under this section shall be
irrevocable, and not more than one such election may be made by any
individual.
``(6) The regulations shall include provisions to address the
question of how to apply section 8706(b)(3)(B) in the case of an
electing individual who has attained 65 years of age.''.
(b) Table of Sections.--The table of sections for chapter 87 of
title 5, United States Code, is amended by inserting after the item
relating to section 8714c the following:
``8714d. Option to receive `living benefits'.''.
SEC. 3. EFFECTIVE DATE; OPEN SEASON AND NOTICE.
(a) Effective Date.--The amendments made by section 2 shall take
effect 9 months after the date of the enactment of this Act.
(b) Open Season; Notice.--(1) The Office of Personnel Management
shall prescribe regulations under which, beginning not later than 9
months after the date of the enactment of this Act, and over a period
of not less than 8 weeks--
(A) an employee (as defined by section 8701(a) of title 5,
United States Code) who declined or voluntarily terminated
coverage under chapter 87 of such title--
(i) may elect to begin, or to resume, group life
insurance and group accidental death and dismemberment
insurance; and
(ii) may make such other elections under such
chapter as the Office may allow; and
(B) such other elections as the Office allows may be made.
(2) The Office shall take such action as may be necessary to ensure
that employees and any other individuals who would be eligible to make
an election under this subsection are afforded advance notification to
that effect.
SEC. 4. FUNDING.
Notwithstanding section 8714(a)(1) of title 5, United States Code,
the Office of Personnel Management shall retain in the Employees' Life
Insurance Fund such portion of premium payments otherwise due as will,
no later than September 30, 1995, permanently reduce the contingency
reserve established under the third sentence of section 8712 of such
title 5 by an amount equal to the amount by which payments from the
Employees' Life Insurance Fund during the fiscal year ending September
30, 1995, exceed the payments that would have been paid had the
amendments made by this Act not been enacted.
Passed the House of Representatives July 19, 1994.
Attest:
DONNALD K. ANDERSON,
Clerk.
Amend the title so as to read: ``An Act to amend chapter 87
of title 5, United States Code, to provide that group life
insurance benefits under such chapter may, upon application, be
paid out to an insured individual who is terminally ill, and
for other purposes.''.