[Federal Register Volume 61, Number 222 (Friday, November 15, 1996)]
[Rules and Regulations]
[Pages 58457-58460]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29309]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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Federal Register / Vol. 61, No. 222 / Friday, November 15, 1996 /
Rules and Regulations
[[Page 58457]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Parts 831, 842, 846, 870, 871, 872, 873 and 890
RIN 3206-AG78
Retirement, Health, and Life Insurance Coverage for DC Financial
Control Authority Employees
AGENCY: Office of Personnel Management.
ACTION: Interim rule with request for comments.
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SUMMARY: The Office of Personnel Management (OPM) is issuing interim
regulations to implement the District of Columbia Financial
Responsibility and Management Assistance Act of 1995. The Act allows
certain employees of the District of Columbia Financial Control
Authority to elect to be considered Federal employees for purposes of
Federal retirement, health and life insurance coverage. These
regulations set forth the conditions under which these employees may
acquire Federal benefits coverage and clarify when such coverage is
effective.
DATES: Interim rules effective October 26, 1996; comments must be
received on or before January 14, 1997.
ADDRESSES: Send comments to John E. Landers, Chief, Retirement Policy
Division; Retirement and Insurance Service; 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: Patrick Jennings, (202) 606-0299
concerning retirement coverage, or Margaret Sears (202) 606-0004
concerning health and life insurance coverage.
SUPPLEMENTARY INFORMATION: The District of Columbia Financial
Responsibility and Management Assistance Act of 1995 was enacted on
April 17, 1995, as Public Law 104-8, 109 Stat. 97. It established the
District of Columbia Financial Responsibility and Management Assistance
Authority (the Authority), and permitted certain former Federal
employees to continue Federal retirement coverage as employees of the
Authority if appointed to the Authority within 2 months after leaving a
Federal position with coverage under the Civil Service Retirement
System (CSRS) or the Federal Employees Retirement System (FERS). It did
not provide for Federal health or life insurance coverage.
Section 153 of Public Law 104-134, 110 Stat. 1321, enacted April
26, 1996, amended the Act to permit Federal employees separating from
Federal service and other individuals employed by the Authority to
elect to be deemed a Federal employee while employed with the Authority
for the purposes of the following chapters of title 5, United States
Code: chapter 83 (CSRS) or 84 (FERS); chapter 87 (the Federal
Employees' Group Life Insurance Program--FEGLI); and chapter 89 (the
Federal Employees Health Benefits Program--FEHB). The Act, as amended,
also allows certain Authority employees to participate in the Thrift
Savings Plan administered by the Federal Employees Thrift Investment
Board, which will issue separate regulations.
The basic rule established in law is that employees of the
Authority must elect to be covered by Federal benefits or District of
Columbia benefits. Under these interim regulations, all employees
appointed by the Authority before the effective date of the regulations
will have equal access to Federal benefits unless they have chosen
District of Columbia benefits.
Beginning on the effective date of these regulations, October 26,
1996, individuals appointed by the Authority to a position not excluded
from CSRS coverage (such as service under a temporary or intermittent
appointment) may elect to be deemed a Federal employee for CSRS or FERS
purposes unless the employee elects to participate in a retirement,
health, or life insurance program offered by the District of Columbia.
However, by law, a former Federal employee being appointed by the
Authority on or after October 26, 1996, no more than 3 days (not
counting District of Columbia holidays) after separation from Federal
employment, cannot elect to be deemed a Federal employee for CSRS or
FERS purposes unless the election was made before separation from
Federal employment.
Under these regulations, the FEGLI and FEHB coverage rules for
other Federal employees generally apply to employees of the Authority
who elect to be considered Federal employees for life insurance and
health benefits purposes. This is especially true for those hired by
the Authority on and after these regulations become effective. However,
those hired by the Authority before that date did not have the
opportunity to make elections under these programs on what would
normally be considered a timely basis. Therefore, these regulations
clarify that the time limits begin with the individual's election to be
considered a Federal employee for insurance purposes, if that is to the
benefit of the individual. In addition, these regulations allow the
employee to control whether the effective date of the FEHB enrollment
election is prospective or retroactive.
Federal employees may be detailed to the Authority under the
provisions of part 334 of title 5, Code of Federal Regulations, which
addresses assignments of Federal employees to State governments, and
the District of Columbia. The Act authorizes such details to the
Authority at the request of the Chair of the Authority and with the
approval of the head of the employee's Federal department or agency.
Employees detailed under part 334 retain their status as Federal
employees and are not required to make the elections provided for in
these regulations in order to retain Federal benefits coverage.
Section 153 of Public Law 104-134, 110 Stat. 1321, required that
regulations be prescribed within 6 months after enactment on April 26,
1996; accordingly, these regulations are effective October 26, 1996.
Waiver of General Notice of Proposed Rulemaking
Under section 553 (b)(3)(B) and (d)(3) of title 5, United States
Code, I find that good cause exists for waiving the general notice of
proposed rulemaking and for making these rules effective in less than
30 days. Elections under these regulations will affect qualifying
employees' retirement coverage
[[Page 58458]]
retroactive to their entry on duty with the Authority. The legislation
was intended to allow for current retirement deductions to be withheld
from pay as soon as practicable. Publication of a general notice on
proposed rulemaking would be contrary to the public interest because it
would delay the election opportunity for eligible individuals employed
during the initial staffing of the Authority.
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 a small number of former Federal employees and a
single entity within the Government of the District of Columbia.
List of Subjects
5 CFR Parts 831, 842 and 846
Administrative practice and procedure, Air traffic controllers,
Alimony, Claims, Disability benefits, Firefighters, Government
employees, Income taxes, Intergovernmental relations, Law enforcement
officers, Pensions, Reporting and recordkeeping requirements,
Retirement.
5 CFR Part 870
Administrative practice and procedure, Government employees,
Hostages, Iraq, Kuwait, Lebanon, Life insurance, Retirement.
5 CFR Parts 871, 872, and 873
Administrative practice and procedure, Government employees, Life
insurance, Retirement.
5 CFR Part 890
Administrative practice and procedure, Government employees, Health
facilities, Health insurance, Health professions, Hostages, Iraq,
Kuwait, Lebanon, Reporting and recordkeeping requirements, Retirement.
U.S. Office of Personnel Management.
Lorraine A. Green,
Deputy Director.
Accordingly, OPM is amending 5 CFR parts 831, 842, 846, 870, 871,
872, 873 and 890 as follows:
PART 831--RETIREMENT
1. The authority citation for part 831 is revised to read as
follows:
Authority: 5 U.S.C. 8347; Sec. 831.102 also issued under 5
U.S.C. 8334; Sec. 831.106 also issued under 5 U.S.C. 552a;
Sec. 831.108 also issued under 5 U.S.C. 8336(d)(2);
Sec. 831.201(b)(6) also issued under 5 U.S.C. 7701(b)(2);
Sec. 831.204 also issued under section 102(e) of the District of
Columbia Financial Responsibility and Management Assistance Act of
1995, Pub. L. 104-8, 109 Stat. 102, as amended by section 153 of
Pub. L. 104-134, 110 Stat. 1321; Sec. 831.303 also issued under 5
U.S.C. 8334(d)(2); Sec. 831.502 also issued under 5 U.S.C. 8337;
Sec. 831.502 also issued under section 1(3), E.O. 11228, 3 CFR 1964-
1965 Comp.; Sec. 831.663 also issued under 5 U.S.C. 8339 (j) and
(k)(2); Secs. 831.663 and 831.664 also issued under section
11004(c)(2) of the Omnibus Budget Reconciliation Act of 1993, Pub.
L. 103-66, 107 Stat. 410; Sec. 831.682 also issued under section
201(d) of the Federal Employees Benefits Improvement Act of 1986,
Pub. L. 99-251, 100 Stat. 23; subpart S also issued under 5 U.S.C.
8345(k); 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. Section 831.204 is added to read as follows:
Sec. 831.204 Elections of retirement coverage under the District of
Columbia Financial Responsibility and Management Assistance Act of
1995.
(a) Who may elect--(1) General rule. Any individual appointed by
the District of Columbia Financial Responsibility and Management
Assistance Authority (the Authority) in a position not excluded from
CSRS coverage under Sec. 831.201 may elect to be deemed a Federal
employee for CSRS purposes unless the employee has elected to
participate in a retirement, health or life insurance program offered
by the District of Columbia.
(2) Exception. A former Federal employee being appointed by the
Authority on or after October 26, 1996, no more than 3 days (not
counting District of Columbia holidays) after separation from Federal
employment cannot elect to be deemed a Federal employee for CSRS
purposes unless the election was made before separation from Federal
employment.
(b) Opportunity to elect FERS. An individual who elects CSRS under
paragraph (a) of this section after a break of more than 3 days between
Federal service and employment with the Authority may elect FERS in
accordance with 5 CFR 846.201(b)(ii).
(c) Procedure for making an election. The Authority or the agency
providing administrative support services to the Authority
(Administrative Support Agency) must establish a procedure for
notifying employees of their election rights and for accepting
elections.
(d) Time limit for making an election. (1) An election under
paragraph (a)(1) of this section must be made within 30 days after the
employee receives the notice under paragraph (c) of this section.
(2) The Authority or its Administrative Support Agency will waive
the time limit under paragraph (d)(1) of this section upon a showing
that--
(i) The employee was not advised of the time limit and was not
otherwise aware of it; or
(ii) Circumstances beyond the control of the employee prevented him
or her from making a timely election and the employee thereafter acted
with due diligence in making the election.
(e) Effect of an election. (1) An election under paragraph (a) of
this section is effective on the commencing date of the employee's
service with the Authority.
(2) An individual who makes an election under paragraph (a) of this
section is ineligible, during the period of employment covered by that
election, to participate in any retirement system for employees of the
government of the District of Columbia.
(f) Irrevocability. An election under paragraph (a) of this section
becomes irrevocable when received by the Authority or its
Administrative Support Agency.
(g) Employee deductions. The Authority or its Administrative
Support Agency must withhold, from the pay of an employee of the
District of Columbia Financial Responsibility and Assistance Authority
who has elected to be deemed a Federal employee for CSRS purposes, an
amount equal to the percentage withheld from Federal employees' pay for
periods of service covered by CSRS and, in accordance with procedures
established by OPM, pay into the Civil Service Retirement and
Disability Fund the amounts deducted from an employee's pay.
(h) Employer contributions. The District of Columbia Financial
Responsibility and Assistance Authority must, in accordance with
procedures established by OPM, pay into the Civil Service Retirement
and Disability Fund amounts equal to any agency contributions required
under CSRS.
PART 842--FEDERAL EMPLOYEES RETIREMENT SYSTEM--BASIC ANNUITY
4. The authority citation for part 842 is revised 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 102(e) of the District of Columbia Financial Responsibility
and Management Assistance Act of 1995, Pub. L. 104-8, 109 Stat. 102,
as amended by section
[[Page 58459]]
153 of Pub. L. 104-134, 110 Stat. 1321; 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, 104 Stat. 1388-328; Sec. 842.707 also
issued under section 6001 of the Omnibus Budget Reconciliation Act
of 1987, Pub. L. 100-203, 101 Stat. 1330-275; Sec. 842.708 also
issued under section 4005 of the Omnibus Budget Reconciliation Act
of 1989, Pub. L. 101-239, 103 Stat. 2135, and section 7001 of the
Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, 104
Stat. 1388-327; subpart H also issued under 5 U.S.C. 1104.
5. Section 842.106 is added to read as follows:
Sec. 842.106 Elections of retirement coverage under the District of
Columbia Financial Responsibility and Management Assistance Act of
1995.
(a) Who may elect--(1) General rule. Any individual appointed by
the District of Columbia Financial Responsibility and Management
Assistance Authority (the Authority) in a position not excluded from
FERS coverage under Sec. 842.105 may elect to be deemed a Federal
employee for FERS purposes unless the employee has elected to
participate in a retirement, health or life insurance program offered
by the District of Columbia.
(2) Exception. A former Federal employee being appointed by the
Authority on or after October 26, 1996, no more than 3 days (not
counting District of Columbia holidays) after separation from Federal
employment cannot elect to be deemed a Federal employee for FERS
purposes unless the election was made before separation from Federal
employment.
(b) Procedure for making an election. The Authority or the agency
providing administrative support services to the Authority
(Administrative Support Agency) must establish a procedure for
notifying employees of their election rights and for accepting
elections.
(c) Time limit for making an election. (1) An election under
paragraph (a)(1) of this section must be made within 30 days after the
employee received the notice under paragraph (b) of this section.
(2) The Authority or its Administrative Support Agency will waive
the time limit under paragraph (c)(1) of this section upon a showing
that--
(i) The employee was not advised of the time limit and was not
otherwise aware of it; or
(ii) Circumstances beyond the control of the employee prevented him
or her from making a timely election and the employee thereafter acted
with due diligence in making the election.
(d) Effect of an election. (1) An election under paragraph (a) of
this section is effective on the commencing date of the employee's
service with the Authority.
(2) An individual who makes an election under paragraph (a) of this
section is ineligible, during the period of employment covered by that
election, to participate in any retirement system for employees of the
government of the District of Columbia.
(e) Irrevocability. An election under paragraph (a) of this section
becomes irrevocable when received by the Authority or its
Administrative Support Agency.
(f) Employee deductions. The Authority or its Administrative
Support Agency must withhold, from the pay of an employee of the
District of Columbia Financial Responsibility and Assistance Authority
who has elected to be deemed a Federal employee for FERS purposes, an
amount equal to the percentage withheld from Federal employees' pay for
periods of service covered by FERS and, in accordance with procedures
established by OPM, pay into the Civil Service Retirement and
Disability Fund the amounts deducted from an employee's pay.
(g) Employer contributions. The District of Columbia Financial
Responsibility and Assistance Authority must, in accordance with
procedures established by OPM, pay into the Civil Service Retirement
and Disability Fund amounts equal to any agency contributions required
under FERS.
PART 846--FEDERAL EMPLOYEES RETIREMENT SYSTEM--ELECTING COVERAGE
4. The authority citation for part 846 is revised to read as
follows:
Authority: 5 U.S.C. 8461(g); Sec. 846.201(b) also issued under 5
U.S.C. 7701(b)(2); Sec. 846.202 also issued under section 301(d)(3)
of Pub. L. 99-335, 100 Stat. 600; Sec. 846.201(b)(ii) also issued
under section 153 of Pub. L. 104-134, 110 Stat. 1321.
5. In section 846.201, paragraph (b) is redesignated as paragraph
(b)(1), and a new paragraph (b)(2) is added to read as follows:
Sec. 846.201 Elections to become subject to FERS.
* * * * *
(b)(1) * * *
(2) Separated employees who are employed with the District of
Columbia Financial Management and Assistance Authority (Authority). A
former employee who becomes employed with the Authority and subject to
CSRS may elect, during the 6-month period beginning on the date he or
she becomes subject to CSRS, to become subject to FERS, except that an
employee serving under an interim appointment under the authority of
Sec. 772.102 of this chapter is not eligible to elect to become subject
to FERS.
* * * * *
PART 870--BASIC LIFE INSURANCE
6. The authority citation for part 870 is revised to read as
follows:
Authority: 5 U.S.C. 8716; Sec. 870.210(b) also issued under sec.
153 of Pub. L. 104-134, 110 Stat. 1321; Sec. 870.202(c) also issued
under 5 U.S.C. 7701(b)(2); subpart J also issued under sec. 599C of
Pub. L. 101-513, 104 Stat. 2064, as amended.
7. In Sec. 870.201, the existing paragraph is designated as
paragraph (a) and a new paragraph (b) is added to read as follows:
Sec. 870.201 Coverage.
* * * * *
(b) An employee of the District of Columbia Financial
Responsibility and Management Assistance Authority (the Authority) who
makes an election under the Technical Corrections to Financial
Responsibility and Management Assistance Act (section 153 of Public Law
104-134, 110 Stat. 1321) to be considered a Federal employee for life
insurance and other benefit purposes is subject to this part. Subject
to the provisions of Sec. 870.203, Basic life insurance is effective
the later of either the date the employee enters on duty in a pay
status with the Authority or the date the Authority receives the
employee's election to be considered a Federal employee for life
insurance purposes. Employees of the Authority who are former Federal
employees are subject to the provisions of Sec. 870.204 and
Sec. 870.601(e).
PART 871--STANDARD OPTIONAL LIFE INSURANCE
8. The authority citation for part 871 is revised to read as
follows:
Authority: 5 U.S.C. 8716; Sec. 871.201(b) also issued under sec.
153 of Pub. L. 104-134, 110 Stat. 1321.
9. In Sec. 871,201, the existing paragraph is designated as
paragraph (a) and a new paragraph (b) is added to read as follows:
Sec. 871.201 Eligibility
* * * * *
(b) An employee of the District of Columbia Financial
Responsibility and Management Assistance Authority (the
[[Page 58460]]
Authority) who makes an election under the Technical Corrections to
Financial Responsibility and Management Assistance Act (section 153 of
Public Law 104-134, 110 Stat. 1321) to be considered a Federal employee
for life insurance and other benefit purposes is subject to this part.
If the employee is eligible to make an election under Sec. 871.202,
such election must be made within 31 days after the later of either the
date employment with the Authority begins or the date the Authority
receives his or her election to be considered a Federal employee.
Employees of the Authority who are former Federal employees are subject
to the provisions of Sec. 871.205 and Sec. 871.604.
PART 872--ADDITIONAL OPTIONAL LIFE INSURANCE
10. The authority citation for part 872 is revised to read as
follows:
Authority: 5 U.S.C. 8716; Sec. 870.201(b) also issued under sec.
153 of Pub. L. 104-134, 110 Stat. 1321.
11. In Sec. 872.201, the existing paragraph is designated as
paragraph (a) and a new paragraph (b) is added to read as follows:
Sec. 872.201 Eligibility.
* * * * *
(b) An employee of the District of Columbia Financial
Responsibility and Management Assistance Authority (the Authority) who
makes an election under the Technical Corrections to Financial
Responsibility and Management Assistance Act (section 153 of Pub. L.
104-134, 110 Stat. 1321) to be considered a Federal employee for life
insurance and other benefit purposes is subject to this part. If the
employee is eligible to make an election under Sec. 872.202, such
election must be made within 41 days after the later of either the date
employment with the Authority begins or the date the Authority receives
his or her election to be considered a Federal employee. Employees of
the Authority who are former Federal employees are subject to the
provisions of Sec. 872.205 and Sec. 872.604.
PART 873--FAMILY OPTIONAL LIFE INSURANCE
12. The authority citation for part 873 is revised to read as
follows:
Authority: 5 U.S.C. 8716; Sec. 873.201(b) also issued under sec.
153 of Pub. L. 104-134, 110 Stat. 1321.
13. In Sec. 873.201, the existing paragraph is designated as
paragraph (a) and a new paragraph (b) is added to read as follows:
Sec. 873.201 Eligibility.
* * * * *
(b) An employee of the District of Columbia Financial
Responsibility and Management Assistance Authority (the Authority) who
makes an election under the Technical Corrections to Financial
Responsibility and Management Assistance Act (section 153 of Public Law
104-134, 110 Stat. 1321) to be considered a Federal employee for life
insurance and other benefit purposes is subject to this part. If the
employee is eligible to make an election under Sec. 873.202, such
election must be made within 31 days after the later of either the date
employment with the Authority begins or the date the Authority receives
his or her election to be considered a Federal employee. Employees of
the Authority who are former Federal employees are subject to the
provisions of Sec. 873.205 and Sec. 873.604.
PART 890--THE FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM
14. The authority citation for part 890 is revised to read as
follows:
Authority: 5 U.S.C. 8913; Sec. 890.102(f) also issued under sec.
153 of Pub. L. 104-134, 110 Stat. 1321; Sec. 890.803 also issued
under 50 U.S.C. 403p, 22 U.S.C. 4069c and 4069c-1; subpart L also
issued under sec. 599C of Pub. L. 101-513, 104 Stat. 2064, as
amended.
15. In Sec. 890.102 a new paragraph (f) is added to read as
follows:
Sec. 890.102 Coverage.
* * * * *
(f) An employee of the District of Columbia Financial
Responsibility and Management Assistance Authority (the Authority) who
makes an election under the Technical Corrections to Financial
Responsibility and Management Assistance Act (section 153 of Pub. L.
104-134, 110 Stat. 1321) to be considered a Federal employee for health
benefits and other benefit purposes is subject to this part. If the
employee is eligible to make an election to enroll under Sec. 890.301,
such election must be made within 60 days after the later of either the
date the employment with the Authority begins or the date the Authority
receives his or her election to be considered a Federal employee.
Employees of the Authority who are former Federal employees are subject
to the provisions of Sec. 890.303(a), except that a former Federal
employee employed by the Authority before October 26, 1996, and within
3 days following the termination of the Federal employment may make an
election to enroll under Sec. 890.301(c). Annuitants who have continued
their coverage under this part as annuitants are not eligible to enroll
under this paragraph. An election to enroll under this part is
effective under the provisions of Sec. 890.306(a) unless the employee
requests the Authority to make the enrollment effective on the first
day of the first pay period following the date the employee entered on
duty in a pay status with the Authority.
[FR Doc. 96-29309 Filed 11-13-96; 10:05 am]
BILLING CODE 6325-01-M
