2020-13609. Federal Employees' Retirement System; Present Value Conversion Factors for Spouses of Deceased Separated Employees
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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:
- Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.
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 InfoFOR FURTHER INFORMATION CONTACT:
Karla Yeakle, (202) 606-0299.
End Further Info End Preamble Start Supplemental InformationSUPPLEMENTARY 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 SubjectsList of Subjects in 5 CFR Part 843
- Air traffic controllers
- Disability benefits
- Firefighters
- Government employees
- Law enforcement officers
- Pensions
- Retirement
Office of Personnel Management.
Alexys Stanley,
Regulatory Affairs Analyst.
For the reasons stated in the preamble, the Office of Personnel Management proposes to amend 5 CFR part 843 as follows:
Start PartPART 843—FEDERAL EMPLOYEES RETIREMENT SYSTEM—DEATH BENEFITS AND EMPLOYEE REFUNDS
End Part Start Amendment Part1. The authority citation for part 843 is revised to read as follows:
End Amendment PartSubpart C—Current and Former Spouse Benefits
Start Amendment Part2. In § 843.309, revise paragraph (b)(2) to read as follows:
End Amendment PartBasic 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.
* * * * *3. Revise appendix A to subpart C of part 843 to read as follows:
End Amendment PartAppendix 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 death Multiplier 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 death Multiplier 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—
End Supplemental InformationAge of separated employee at birthday before death Multiplier by separated employee's year of birth After 1966 From 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 .9338 1.0000 [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