Federal Employees Retirement SystemGeneral Administration; Government Costs

SUMMARY: The Office of Personnel Management (OPM) is updating the table

of normal cost percentages that Federal agencies pay to finance the

Federal Employees Retirement System (FERS). This regulation is

necessary for the table to reflect the changes in the rates that are

effective in October 1994.

EFFECTIVE DATE: August 26, 1994.

FOR FURTHER INFORMATION CONTACT:

Harold L. Siegelman, (202) 606-0299.

SUPPLEMENTARY INFORMATION: On September 21, 1993, OPM published in the

Federal Register a notice changing the normal cost percentages

effective in October 1994. Subpart D of Part 841 of Title 5, Code of

Federal Regulations, contains the methodology that OPM uses to

determine the rates that agencies must pay to fund the cost of the

Federal Employees Retirement System (FERS) and the procedures that OPM

must follow to change the rates. Under those procedures, OPM must

publish a notice of changes in the rates at least 3 months before the

beginning of the fiscal year in which the new rates become effective.

Appendix A to Subpart D of Part 841 contains a table of the normal

cost percentages. This table has no regulatory effect. It merely

provides information about the rates. This final rule amends that table

to reflect the rates that will become effective in October 1994.

Under section 553(b)(3)(B) of title 5, United States Code, I find

that good cause exists for waiving the general notice of proposed

rulemaking. Notice of proposed rulemaking is unnecessary because this

final rule merely provides information and has no regulatory effect.

Correction of Prior Notice of Final Rulemaking

On March 16, 1994, OPM published (59 FR 12143) a final rule

concerning payment of survivor deposits by actuarial reduction. (FR

Doc. 94-6046) This document adopted OPM's interim rule on that subject

as final rules. In two places, reference to the page number for the

interim rule was stated incorrectly. In both places, the incorrect

reference to 58 FR 56877 is corrected to 58 FR 52877.

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

only provides information about the rate of payment by Federal agencies

to OPM for the normal cost of their employees' FERS benefits.

List of Subjects in 5 CFR Part 841

Administrative practice and procedure, Claims, Disability benefits,

Firefighters, Government employees, Income taxes, Intergovernmental

relations, Law enforcement officers, Pensions, Retirement.

U.S. Office of Personnel Management.

Lorraine A. Green,

Deputy Director.

Accordingly, OPM is amending Part 841 of Title 5, Code of Federal

Regulations, as follows.

PART 841--FEDERAL EMPLOYEES RETIREMENT SYSTEM--GENERAL

ADMINISTRATION

1. The authority citation for Part 841 continues to read as

follows:

Authority: 5 U.S.C. 8461; Sec. 841.108 also issued under 5

U.S.C. 552a; subpart D also issued under 5 U.S.C. 8423,;

Sec. 841.504 also issued under 5 U.S.C. 8422; Sec. 841.506 also

issued under 5 U.S.C. 7701(b)(2); Sec. 841.507 also issued under

section 505 of Pub. L. 99-335; Sec. 841.508 also issued under

section 505 of Pub. L. 99-335; subpart J also issued under 5 U.S.C.

8469.

Subpart D--Government Costs

2. Appendix A to Subpart D of Part 841 is revised to read as

follows:

Appendix A to Subpart D of Part 841.--Table of Normal Cost Percentages

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Government-wide normal cost percentages effective at the

beginning of the first pay period commencing on or after--

Category of employees ---------------------------------------------------------------

January 1, October 1, October 1, October 1,

1987 1987 1991 1994

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Members......................................... 23.5 20.9 20.8 19.1

Congressional employees......................... 23.8 20.2 20.1 18.2

Law enforcement officers, firefighters, and

employees under section 302 of the Central

Intelligence Agency Act of 1964 for Certain

Employees...................................... 31.2 26.7 28.6 25.6

Air traffic controllers......................... 33.3 28.4 26.2 23.2

Military reserve technicians.................... 16.0 13.7 13.3 12.1

Employees under section 303 of the Central

Intelligence Agency Act of 1964 for Certain

Employees when serving abroad.................. 22.8 19.0 19.1 17.1

All other employees............................. 16.1 13.8 13.7 12.2

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All normal cost percentages in the above table include employee contributions.

[FR Doc. 94-18263 Filed 7-26-94; 8:45 am]

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