94-16715. Civil Service Retirement System; Alternative Forms of Annuity Factors

[Federal Register Volume 59, Number 132 (Tuesday, July 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16715]


[[Page Unknown]]

[Federal Register: July 12, 1994]


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OFFICE OF PERSONNEL MANAGEMENT

 

Civil Service Retirement System; Alternative Forms of Annuity 
Factors

AGENCY: Office of Personnel Management.

ACTION: Notice.

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SUMMARY: The Office of Personnel Management (OPM) is providing notice 
of adjusted present value factors applicable to employees who elect the 
alternative form of annuity under section 8343a of title 5, United 
States Code. This notice is necessary to conform the present value 
factors to changes in economic assumptions approved by the Board of 
Actuaries.

EFFECTIVE DATE: Revised present value factors will apply to anyone 
whose annuity commences October 1, 1994, or later.

ADDRESSES: Send requests for actuarial assumptions and data to the 
Office of the Actuary, Room 4307 STOP, Office of Personnel Management, 
Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT:
Harold L. Siegelman, [phone].

SUPPLEMENTARY INFORMATION: Section 831.2205(a) of Title 5, Code of 
Federal Regulations, prescribes the method for computing the reduction 
in the beginning rate of annuity payable to a retiree who elects an 
alternative form of annuity under 5 U.S.C. 8343a. That reduction is 
required in order to produce an annuity that is actuarially equivalent 
to the annuity of a retiree who does not elect an alternative form of 
annuity. The present value factors currently used to compute the 
reduction were published by OPM (56 FR 7424) on February 22, 1991.
    On September 20, 1993, OPM published (58 FR 49066) a notice in the 
Federal Register to revise the normal cost percentage under the FERS 
Act of 1988, Pub. L. 99-335, based on changed economic assumptions 
approved by the Board of Actuaries. Those changed economic assumptions 
require corresponding changes in the present value factors used to 
compute an alternative form of annuity. The changed factors will also 
be used, in accordance with 5 U.S.C. 8334(d)(2), to compute the annuity 
of an employee whose annuity commences on or after October 1, 1994, and 
who retires while owing a redeposit of a refund for service that ended 
before October 1, 1990. OPM is, therefore, revising the table of 
present value factors to read as follows:

                       CSRS Present Value Factors                       
------------------------------------------------------------------------
                                           Present               Present
                                          value of              value of
            Age at retirement                 a       Age at        a   
                                           monthly  retirement   monthly
                                           annuity               annuity
------------------------------------------------------------------------
40......................................     294.4         66      156.0
41......................................     290.0         67      150.7
42......................................     285.5         68      145.4
43......................................     280.8         69      140.2
44......................................     276.2         70      134.7
45......................................     270.4         71      129.4
46......................................     264.7         72      124.0
47......................................     259.2         73      118.8
48......................................     253.5         74      113.6
49......................................     247.2         75      108.5
50......................................     240.4         76      103.5
51......................................     235.0         77       98.7
52......................................     229.8         78       93.9
53......................................     224.4         79       89.4
54......................................     218.6         80       84.9
55......................................     212.6         81       80.5
56......................................     207.5         82       76.3
57......................................     202.4         83       72.3
58......................................     197.0         84       68.4
59......................................     192.3         85       64.7
60......................................     188.3         86       61.2
61......................................     182.9         87       57.9
62......................................     177.0         88       54.7
63......................................     171.9         89       51.8
64......................................     166.5         90       48.9
65......................................     161.1                      
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U.S. Office of Personnel Management.
Lorraine A. Green,
Deputy Director.
[FR Doc. 94-16715 Filed 7-11-94; 8:45 am]
BILLING CODE 6325-01-M