Federal Employees' Retirement System; Present Value Conversion Factors for Spouses of Deceased Separated Employees

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 843

RIN 3206-AN16

Federal Employees' Retirement System; Present Value Conversion Factors for Spouses of Deceased Separated Employees

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. This rule is 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 March 20, 2015.

DATES:

Effective October 1, 2015.

FOR FURTHER INFORMATION CONTACT:

Roxann Johnson, (202) 606-0299.

SUPPLEMENTARY INFORMATION:

On March 20, 2015, OPM published at 80 FR 15036, 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. Under 5 U.S.C. 8461(i), the demographic factors and economic assumptions require corresponding changes in factors used to produce actuarially equivalence when required by the FERS Act. As a result, on April 3, 2015, at 80 FR 18159, 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. OPM received no written comments on the proposed rule.

Executive Order 12866, Regulatory Review

This rule has been reviewed by the Office of Management and Budget in accordance with Executive Order (E.O.) 12866, as amended by E.O. 13258 and E.O. 13422.

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 retirement payments to surviving current and former spouses of former employees and Members who separated from Federal service with title to a deferred annuity.

List of Subjects in 5 CFR Part 843

Air traffic controllers, Disability benefits, Firefighters, Government employees, Law enforcement officers, Pensions, Retirement.

U.S. Office of Personnel Management.

Katherine Archuleta,

Director.

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

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

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

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.

Subpart C—Current and Former Spouse Benefits

2. Revise Appendix A to subpart C of part 843 to read as follows:

APPENDIX A TO SUPART C OF PART 843—PRESENT VALUE CONVERSION FACTORS FOR EARLIER COMENCING DATE OF ANNUITIES OF CURRENT AND FORMER SPOUSES OF DISEASED SEPARATED EMPLOYEES

With at least 10 but less than 20 years of creditable service—

Age of separated employee at birthday before death

Multiplier

26

.0726

27

.0792

28

.0859

29

.0930

30

.1002

31

.1081

32

.1165

33

.1252

34

.1343

35

.1443

36

.1550

37

.1664

38

.1786

39

.1914

40

.2053

41

.2200

42

.2358

43

.2528

44

.2710

45

.2905

46

.3114

47

.3337

48

.3580

49

.3839

50

.4118

51

.4419

52

.4745

53

.5097

54

.5477

55

.5889

56

.6336

57

.6822

58

.7350

59

.7926

60

.8556

61

.9244

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

Age of separated employee at birthday before death

Multiplier

36

.1810

37

.1943

38

.2086

39

.2236

40

.2398

41

.2570

42

.2754

43

.2953

44

.3166

45

.3394

46

.3638

47

.3899

48

.4182

49

.4485

50

.4812

51

.5164

52

.5545

53

.5955

54

.6400

55

.6881

56

.7404

57

.7972

58

.8590

59

.9264

With at least 30 years of creditable service—

Age of separated employee at birthday before death

Multiplier by separated employee's year of birth

After

1966

From

1950

through

1966

46

.4561

.4910

47

.4889

.5264

48

.5244

.5646

49

.5624

.6055

50

.6035

.6497

51

.6476

.6973

52

.6954

.7487

53

.7469

.8042

54

.8027

.8643

55

.8631

.9294

56

.9287

1.0000

[FR Doc. 2015-15992 Filed 6-29-15; 8:45 am]

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