2019-20124. Federal Employees' Retirement System; Present Value Conversion Factors for Spouses of Deceased Separated Employees  

  • Start Preamble Start Printed Page 49635

    AGENCY:

    Office of Personnel Management.

    ACTION:

    Final rule.

    SUMMARY:

    The Office of Personnel Management (OPM) is adopting its 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 May 20, 2019, as required by the United States Code.

    DATES:

    This rule becomes effective on October 1, 2019.

    Start Further Info

    FOR FURTHER INFORMATION CONTACT:

    Karla Yeakle, (202) 606-0299.

    End Further Info End Preamble Start Supplemental Information

    SUPPLEMENTARY INFORMATION:

    On May 20, 2019, OPM published at 84 FR 22915, a notice 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 Retirement 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. As a result, on May 28, 2019, at 84 FR 24401, OPM published a proposed rule in the Federal Register to revise the table of reduction factors in appendix A to subpart C of part 843, Code of Federal Regulations, 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 5 CFR 843.309. OPM received no written comments on the proposed rule.

    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). This rule is not a significant regulatory action, under Executive Order 12866 and was not reviewed by OMB. This rule is not a major rule under 5 U.S.C. 804.

    Reducing Regulation and Controlling Regulatory Costs

    This rule is not an E.O. 13771 regulatory action because this rule is not a significant regulatory action under E.O. 12866.

    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 Start Printed Page 49636SORN 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.

    Stephen Hickman,

    Federal Register Liaison.

    End Signature

    For the reasons stated in the preamble, the Office of Personnel Management amends 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 continues 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, 2019, 36 equal monthly installments of 2.96358 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 Start Appendix

    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

    Age of separated employee at birthday before deathMultiplier
    With at least 10 but less than 20 years of creditable service—
    26.0998
    27.1068
    28.1138
    29.1214
    30.1291
    31.1375
    32.1463
    33.1555
    34.1651
    35.1755
    36.1867
    37.1986
    38.2113
    39.2247
    40.2390
    41.2540
    42.2701
    43.2875
    44.3057
    45.3252
    46.3460
    47.3680
    48.3917
    49.4171
    50.4445
    51.4739
    52.5055
    53.5393
    54.5758
    55.6151
    56.6578
    57.7037
    58.7536
    59.8076
    60.8663
    61.9302
    With at least 20, but less than 30 years of creditable service—
    36.2153
    37.2291
    38.2436
    39.2592
    40.2756
    41.2930
    42.3116
    43.3316
    44.3527
    45.3752
    46.3992
    47.4247
    48.4521
    Start Printed Page 49637
    49.4814
    50.5131
    51.5470
    52.5834
    53.6225
    54.6646
    55.7100
    56.7592
    57.8123
    58.8698
    59.9322
    Age of separated employee at birthday before deathMultiplier by separated employee's year of birth
    After 1966From 1950 through 1966
    With at least 30 years of creditable service—
    46.4912.5254
    47.5226.5591
    48.5564.5953
    49.5926.6340
    50.6316.6757
    51.6733.7203
    52.7181.7683
    53.7663.8199
    54.8182.8754
    55.8741.9353
    56.93461.0000
    End Appendix End Supplemental Information

    [FR Doc. 2019-20124 Filed 9-20-19; 8:45 am]

    BILLING CODE 6325-38-P

Document Information

Effective Date:
10/1/2019
Published:
09/23/2019
Department:
Personnel Management Office
Entry Type:
Rule
Action:
Final rule.
Document Number:
2019-20124
Dates:
This rule becomes effective on October 1, 2019.
Pages:
49635-49637 (3 pages)
RINs:
3206-AN82: Federal Employees' Retirement System; Present Value Conversion Factors for Spouses of Deceased Separated Employees
RIN Links:
https://www.federalregister.gov/regulations/3206-AN82/federal-employees-retirement-system-present-value-conversion-factors-for-spouses-of-deceased-separat
Topics:
Air traffic controllers, Disability benefits, Firefighters, Government employees, Law enforcement officers, Pensions, Retirement
PDF File:
2019-20124.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