Federal Employees Retirement SystemComputation of the Basic Employee Death Benefit for Customs Officers

SUMMARY: The Office of Personnel Management (OPM) is proposing

regulations concerning the use of overtime and premium pay in

determining the final annual rate of basic pay of customs officers

under the Federal Employees Retirement System (FERS). These regulations

would establish the methodology (similar to the one that OPM uses for

other flexible schedule employees) that the employing agency will use

to compute customs officers' ``final annual rate of basic pay'' for

determining FERS ``basic employee death benefit.'' The regulations are

necessary to implement the changes in the statutory definition of basic

pay under FERS made by section 13812 of the Omnibus Budget

Reconciliation Act of 1993.

DATES: Comments must be received on or before December 5, 1994.

ADDRESSES: Send comments to Reginald M. Jones, Jr., Assistant Director

for Retirement Policy Development; Retirement and Insurance Group;

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

SUPPLEMENTARY INFORMATION: Section 13812 of the Omnibus Budget

Reconciliation Act of 1993, Pub. L. 103-66, amended section 8331(3) of

title 5, United States Code, the definition of basic pay under the

Civil Service Retirement System (CSRS), to include, as basic pay for

CSRS computations, certain overtime pay for customs officers. Section

8401(4) of title 5, United States Code, provides that the CSRS

definition of basic pay in section 8331(3) applies to the Federal

Employees Retirement System (FERS). For customs officers, basic pay

will include the regular pay under the general schedule, any applicable

locality pay, and allowable overtime pay up to $12,500 per fiscal year.

Basic pay is used to compute final salary for the basic employee death

benefit under FERS.

For determining final salary, the employing agency will use a

methodology similar to the one used for determining the ``final annual

rate of basic pay'' of intermittent employees for the FERS basic

employee death benefit established in Sec. 843.102 of title 5, Code of

Federal Regulations. The employing agency will determine the total

number of hours for which the employee was paid two-times-hourly-rate

overtime and the total number of hours for which the employee was paid

three-times-hourly-rate overtime during the 52-week workyear ending the

pay period before separation. The employing agency will then determine

the amount of overtime pay that the employee would have received during

the 52-week workyear if that overtime were paid at two or three times

the employee's hourly rate (regular general schedule pay rate plus

locality pay) at the time of death. The amount of allowable overtime is

the lesser of the amount that would have been paid during that 52-week

workyear using the employee's hourly rate (times the appropriate

multiplier) at the time of separation or $12,500. The final salary is

equal to the allowable overtime computed under the previous sentence,

plus the final annual general schedule pay, plus locality pay.

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 Federal employees and agencies and retirement payments

to retired Government employees and their survivors.

List of Subjects in 5 CFR Part 843

Administrative practice and procedure, Claims, Disability benefits,

Government employees, Intergovernmental relations, Pensions, Reporting

and recordkeeping, Retirement.

U.S. Office of Personnel Management.

Lorraine A. Green,

Deputy Director.

Accordingly, OPM proposes to amend 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; Secs. 843.205, 843.208 and 843.209

also issued under 5 U.S.C. 8424; Sec. 843.309 also issued under 5

U.S.C. 8442; Sec. 843.406 also issued under 5 U.S.C. 8441.

2. In the definition of ``final annual rate of basic pay'' in

section 843.102, paragraph (d) is added to read as follows:

Sec. 843.102 Definitions

* * * * *

Final annual rate of basic pay * * *

(d) The annual pay for customs officers is the sum of the

employee's general schedule pay, locality pay, and the lesser of--

(1) Two times the employee's final hourly rate of pay times the

number of hours for which the employee was paid two times salary as

compensation for overtime inspectional service under section 5(a) of

the Act of February 11, 1911 (19 U.S.C. 261 and 267) plus three times

the employee's final hourly rate of pay times the number of hours for

which the employee was paid three times salary as compensation for

overtime inspectional service under section 5(a) in the 52-week work

year immediately preceding the end of the last pay period in which the

employee was in pay status; or

(2) $12,500.

* * * * *

[FR Doc. 94-24455 Filed 10-4-94; 8:45 am]

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