2020-13609. Federal Employees' Retirement System; Present Value Conversion Factors for Spouses of Deceased Separated Employees  

  • Start Preamble

    AGENCY:

    Office of Personnel Management.

    ACTION:

    Proposed rule.

    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 April 6, 2020.

    DATES:

    Send comments on or before August 31, 2020.

    ADDRESSES:

    You may submit comments identified by docket number and/or Regulatory Information Number (RIN) and title, by the following method:

    All submissions received must include the agency name and docket number or RIN for this document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing at http://www.regulations.gov as they are received without change, including any personal identifiers or contact information.

    Start Further Info

    FOR FURTHER INFORMATION CONTACT:

    Karla Yeakle, (202) 606-0299.

    End Further Info End Preamble Start Supplemental Information

    SUPPLEMENTARY INFORMATION:

    On April 6, 2020, OPM published notice 85 FR 19174 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 Start Printed Page 39853Retirement System. By statute under 5 U.S.C. 8461(i), the revisions to the actuarial 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 to a surviving spouse 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. If the separated employee died before having attained the minimum retirement age, the annuity commences on the day the deceased separated employee would have been eligible for an unreduced annuity as specified under this section. If the current or former spouse instead elects to receive an adjusted annuity beginning on the day after the death of the separated employee, 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 otherwise would have received. These rules amend appendix A to subpart C of part 843 to conform the factors to the revised actuarial assumptions.

    Regulatory Impact Analysis

    OPM has examined the impact of this rule as required by Executive Order 12866 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 was not designated as a “significant regulatory action,” under Executive Order 12866.

    Reducing Regulation and Controlling Regulatory Costs

    This rule is not an E.O. 13771 regulatory action because this rule is related to agency organization, management, or personnel.

    Regulatory Flexibility Act

    The Office of Personnel Management certifies that this rule will not have a significant economic impact on a substantial number of small entities.

    Federalism

    We have examined this rule in accordance with Executive Order 13132, Federalism, and have determined that this rule will not have any negative impact on the rights, roles and responsibilities of State, local, or tribal governments.

    Civil Justice Reform

    This regulation meets the applicable standard set forth in Executive Order 12988.

    Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by state, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any year and it will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995.

    Congressional Review Act

    This action pertains to agency management, personnel, and organization and does not substantially affect the rights or obligations of nonagency parties and, accordingly, is not a “rule” as that term is used by the Congressional Review Act (Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)). Therefore, the reporting requirement of 5 U.S.C. 801 does not apply.

    Paperwork Reduction Act

    Notwithstanding any other provision of law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with a collection of information subject to the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless that collection of information displays a currently valid Office of Management and Budget (OMB) Control Number.

    This rule involves an OMB approved collection of information subject to the PRA Application for Death Benefits (FERS)/Documentation and Elections in Support of Application for Death Benefits when Deceased was an Employee at the Time of Death (FERS), 3206-0172. The public reporting burden for this collection is estimated to average 60 minutes per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. The total burden hour estimate for this form is 16,751 hours. The systems of record notice for this collection is: OPM SORN CENTRAL-1-Civil Service Retirement and Insurance Records.

    Start List of Subjects

    List of Subjects in 5 CFR Part 843

    • Air traffic controllers
    • Disability benefits
    • Firefighters
    • Government employees
    • Law enforcement officers
    • Pensions
    • Retirement
    End List of Subjects Start Signature

    Office of Personnel Management.

    Alexys Stanley,

    Regulatory Affairs Analyst.

    End Signature

    For the reasons stated in the preamble, the Office of Personnel Management proposes to amend 5 CFR part 843 as follows:

    Start Part

    PART 843—FEDERAL EMPLOYEES RETIREMENT SYSTEM—DEATH BENEFITS AND EMPLOYEE REFUNDS

    End Part Start Amendment Part

    1. The authority citation for part 843 is revised to read as follows:

    End Amendment Part Start Authority

    Authority: 5 U.S.C. 8461; 843.205, 843.208, and 843.209 also issued under 5 U.S.C. 8424; 843.309 also issued under 5 U.S.C. 8442; 843.406 also issued under 5 U.S.C. 8441.

    End Authority

    Subpart C—Current and Former Spouse Benefits

    Start Amendment Part

    2. In § 843.309, revise paragraph (b)(2) to read as follows:

    End Amendment Part
    Basic employee death benefit.
    * * * * *

    (b) * * *

    (2) For deaths occurring on or after October 1, 2020, 36 equal monthly installments of 2.95307 percent of the amount of the basic employee death benefit.

    * * * * *
    Start Amendment Part

    3. Revise appendix A to subpart C of part 843 to read as follows:

    End Amendment Part

    Appendix A to Subpart C of Part 843—Present Value Conversion Factors for Earlier Commencing Date of Annuities of Current and Former Spouses of Deceased Separated Employees

    With at least 10 but less than 20 years of creditable service—Start Printed Page 39854

    Age of separated employee at birthday before deathMultiplier
    26.1014
    27.1077
    28.1144
    29.1215
    30.1290
    31.1370
    32.1454
    33.1544
    34.1641
    35.1742
    36.1852
    37.1963
    38.2090
    39.2216
    40.2348
    41.2498
    42.2657
    43.2822
    44.3007
    45.3197
    46.3409
    47.3625
    48.3860
    49.4114
    50.4386
    51.4681
    52.4997
    53.5336
    54.5703
    55.6095
    56.6527
    57.6994
    58.7499
    59.8047
    60.8642
    61.9291

    With at least 20, but less than 30 years of creditable service—

    Age of separated employee at birthday before deathMultiplier
    36.2142
    37.2272
    38.2418
    39.2566
    40.2720
    41.2894
    42.3078
    43.3270
    44.3484
    45.3705
    46.3949
    47.4201
    48.4473
    49.4767
    50.5082
    51.5423
    52.5788
    53.6180
    54.6605
    55.7060
    56.7558
    57.8096
    58.8680
    59.9312

    With at least 30 years of creditable service—

    Age of separated employee at birthday before deathMultiplier by separated employee's year of birth
    After 1966From 1950 through 1966
    46.4881.5228
    47.5194.5563
    48.5531.5924
    49.5894.6314
    50.6283.6730
    51.6704.7180
    52.7154.7662
    53.7638.8181
    54.8162.8741
    55.8725.9345
    56.93381.0000
    End Supplemental Information

    [FR Doc. 2020-13609 Filed 7-1-20; 8:45 am]

    BILLING CODE 6325-38-P

Document Information

Published:
07/02/2020
Department:
Personnel Management Office
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
2020-13609
Dates:
Send comments on or before August 31, 2020.
Pages:
39852-39854 (3 pages)
RINs:
3206-ANO0
Topics:
Air traffic controllers, Disability benefits, Firefighters, Government employees, Law enforcement officers, Pensions, Retirement
PDF File:
2020-13609.pdf
Supporting Documents:
» Agency Information Collection Activities; Proposals, Submissions, and Approvals
» Excepted Service
» Agency Information Collection Activities; Proposals, Submissions, and Approvals
» Agency Information Collection Activities; Proposals, Submissions, and Approvals: Federal Employees Health Benefits Open Season Express Interactive Voice Response System and Open Season Website
» Agency Information Collection Activities; Proposals, Submissions, and Approvals
» Agency Information Collection Activities; Proposals, Submissions, and Approvals: We Need Information About Your Missing Payment-OPM Form RI 38-31, OMB No. 3206-0187
» Agency Information Collection Activities; Proposals, Submissions, and Approvals: Representative Payee Survey
» Meetings: Hispanic Council on Federal Employment
» Federal Long Term Care Insurance Program Enrollee Decision Period for Current Enrollees
» Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Deferred or Postponed Retirement- Federal Employees Retirement System
CFR: (1)
5 CFR 843.309