[Federal Register Volume 59, Number 213 (Friday, November 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27363]
[[Page Unknown]]
[Federal Register: November 4, 1994]
VOL. 59, NO. 213
Friday, November 4, 1994
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Parts 831 and 842
RIN 3206-AG16
Retirement; Alternative Forms of Annuity
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
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SUMMARY: The Office of Personnel Management (OPM) is proposing changes
in our current regulations on alternative forms of annuity to implement
the changes in sections 8343a and 8420a of title 5, United States Code,
made by the Omnibus Budget Reconciliation Act of 1993. These
regulations provide for the termination of the alternative form of
annuity for employees whose annuities commence on or after October 1,
1994, except for employees who have a life-threatening affliction of
other critical medical condition. They would also revise the list of
critical medical conditions considered prima facie evidence of
eligibility. The regulations are necessary to conform the current
regulations with current law.
DATES: Comments must be received on or before January 3, 1995.
ADDRESSES: Send comments to Reginald M. Jones, Jr., Assistant Director
for Retirement Policy Development; Retirement and Insurance Group;
Office of Personnel Management; P.O. Box 57; Washington, DC 20044; or
deliver to OPM, Room 4351, 1900 E Street NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT:Harold L. Siegelman, (202) 606-0299.
SUPPLEMENTARY INFORMATION: Since 1986, some individuals retiring under
the Civil Service Retirement System or the Federal Employees Retirement
System have been eligible to elect an alternative form of annuity. The
alternative form of annuity consisted of a lump-sum payment of the
individual's retirement deductions plus reduced monthly benefits. The
amount of the reduction was determined so that the present value of the
future unreduced annuity would be actuarially equivalent to the present
value of the lump sum plus the future reduced annuity payments.
The Omnibus Budget Reconciliation Act of 1993, Pub. L. 103-66,
amended sections 8343a and 8420a of title 5, United States Code, to
limit eligibility for the alternative form of annuity for individuals
whose annuities commence on or after October 1, 1994, to those with a
``life-threatening affliction or other critical medical condition.''
These regulations would change sections 831.2203(h) and 842.703(d) to
reflect this new statutory eligibility requirement.
Our proposed change in sections 831.2207 and 842.707 refines the
list of medical conditions that constitute prima facie evidence of a
``life-threatening affliction or other critical medical condition.'' We
are removing two conditions from the list (ventricular tachycardia and
ventricular flutter). We are also clarifying the severity required for
four other medical conditions before we will accept those conditions as
prima facie evidence. Of course, this change in no way affects a
claimant's right to show that medical conditions, not on the list, are
qualifying conditions under sections 831.2207(c)(3)(iv) and
842.707(c)(3)(iv) of Title 5, Code of Federal Regulations.
E.O. 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with E.O. 12866.
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 Federal employees and agencies and retirement payments
to retired Government employees and their survivors.
List of Subjects in 5 CFR Parts 831 and 842
Administrative practice and procedure, Air Traffic Controllers,
Firefighters, Government employees, Law enforcement officers, Pensions,
Reporting and recordkeeping, Retirement.
U.S. Office of Personnel Management.
Lorraine A. Green,
Deputy Director.
Accordingly, OPM proposes to amend 5 CFR parts 831 and 842 as
follows:
PART 831--RETIREMENT
1. The authority citation for part 831 continues to read in part as
follows:
Authority: 5 U.S.C. 8347, * * * subpart V also issued under 5
U.S.C. 8343a and section 6001 of the Omnibus Budget Reconciliation
Act of 1987, Pub. L. 100-203, 101 Stat. 1330-275; Sec. 831.2203 also
issued under section 7001(a)(4) of the Omnibus Budget Reconciliation
Act of 1990, Pub. L. 101-508; 104 Stat. 1388-328.
2. In section 831.2203, paragraphs (h)(1), (h)(1)(i), and
(h)(1)(ii) are redesignated as paragraphs (h)(1)(i), (h)(1)(i)(A), and
(h)(1)(i)(B), respectively, and a new paragraph (h)(1)(ii) is added to
read as follows:
Sec. 831.2203 Eligibility.
* * * * *
(h)(1) * * *
(ii) An individual whose annuity commences on or after October 1,
1994, may elect an alternative form of annuity only if that individual
is an employee or Member who meets the conditions and fulfills the
requirements described in Sec. 831.2207(c) (2) and (3).
* * * * *
3. In section 831.2207, paragraph (c)(3)(ii)(G) is removed and
reserved, paragraph (c)(3)(ii)(V) is removed, and paragraphs (c)(3)(ii)
(B), (H), (K), and (M) are revised to read as follows:
Sec. 831.2207 Partial deferred payment of the lump-sum credit if
annuity commences after January 3, 1988, and before October 1, 1989.
* * * * *
(c) * * *
(3) * * *
(ii) * * *
(B) Aortic stenosis (severe).
* * * * *
(H) Severe cardiomyopathy--Class IV.
* * * * *
(K) Cardiac aneurysm not amenable to surgical treatment.
* * * * *
(M) Severe hepatic failure.
* * * * *
PART 842--FEDERAL EMPLOYEES RETIREMENT SYSTEM--BASIC ANNUITY
4. The authority citation for part 842 continues to read as
follows:
Authority: 5 U.S.C. 8461(g); Secs. 842.104 and 842.106 also
issued under 5 U.S.C. 8461(n); Sec. 842.105 also issued under 5
U.S.C. 8402(c)(1) and 7701(b)(2); Sec. 842.106 also issued under
section 7202(m)(2) of the Omnibus Budget Reconciliation Act of 1990,
Pub. L. 101-508 and 5 U.S.C. 8402(c)(1); Secs. 842.604 and 842.611
also issued under 5 U.S.C. 8417; Sec. 842.607 also issued under 5
U.S.C. 8416 and 8417; Sec. 842.614 also issued under 5 U.S.C. 8419;
Sec. 842.615 also issued under 5 U.S.C. 8418; Sec. 842.703 also
issued under section 7001(a)(4) of the Omnibus Budget Reconciliation
Act of 1990, Pub. L. 101-508; Sec. 842.707 also issued under section
6001 of the Omnibus Budget Reconciliation Act of 1987, Pub. L. 100-
203; Sec. 842.708 also issued under section 4005 of the Omnibus
Budget Reconciliation Act of 1989, Pub. L. 101-239 and section 7001
of the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508;
subpart H also issued under 5 U.S.C. 1104.
5. In section 842.703, paragraphs (d)(1), (d)(1)(i), and (d)(1)(ii)
are redesignated as paragraphs (d)(1)(i), (d)(1)(i)(A), (d)(1)(i)(B),
respectively, and a new paragraph (d)(1)(ii) is added to read as
follows:
Sec. 842.703 Eligibility.
* * * * *
(d)(1) * * *
(ii) An individual whose annuity commences on or after October 1,
1994, may elect an alternative form of annuity only if that individual
is an employee or Member who meets the conditions and fulfills the
requirements described in Sec. 842.707(c) (2) and (3).
* * * * *
6. In section 842.707 paragraph (c)(3)(ii)(G) is removed and
reserved, paragraph (c)(3)(ii)(V) is removed, and paragraphs (c)(3)(ii)
(B), (H), (K), and (M) are revised to read as follows:
Sec. 842.707 Partial deferred payment of the lump-sum credit if
annuity commences after January 3, 1988, and before October 1, 1989.
* * * * *
(c) * * *
(3) * * *
(ii) * * *
(B) Aortic Stenosis (severe).
* * * * *
(H) Severe cardiomyopathy--Class IV.
* * * * *
(K) Cardiac aneurysm not amenable to surgical treatment.
* * * * *
(M) Severe hepatic failure.
* * * * *
Secs. 831.2203, 831.2208, 842.703, 842.708 [Amended]
7. In the list below, for each section and paragraph indicated in
the left two columns, remove the reference indicated in the third
column where it appears in the paragraph, and add the reference
indicated in the fourth column:
----------------------------------------------------------------------------------------------------------------
Section Paragraph Remove Add
----------------------------------------------------------------------------------------------------------------
831.2203............ newly designated 1995............................. 1994
(h)(1)(i).
831.2203............ (h)(2) introductory (h)(1)(ii)....................... (h)(1)(i)(B)
text.
831.2208............ (a) introductory 1995............................. 1994
text.
831.2208............ (b)................. 1995............................. 1994
831.2208............ (c)(2)(ii).......... 831.2203 (h)(1)(i)............... 831.2203 (h)(1)(i)(A)
842.703............. newly designated 1995............................. 1994
(d)(1)(i).
842.703............. (d)(2) introductory (d)(1)(ii)....................... (d)(1)(i)(B)
text.
842.708............. (a) introductory 1995............................. 1994
text.
842.708............. (b)................. 1995............................. 1994
842.708............. (c)(2)(ii).......... 842.703(d)(1)(i)................. 842.703(d)(1)(i)(A)
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[FR Doc. 94-27363 Filed 11-3-94; 8:45 am]
BILLING CODE 6325-01-M
