Payment of Survivor Deposits by Actuarial Reduction

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 831, 838, 842, and 890

RIN 3206-AF66

Payment of Survivor Deposits by Actuarial Reduction

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is adopting its

interim regulations to implement section 11004 of the Omnibus Budget

Reconciliation Act of 1993 as final. The Act requires OPM to reduce a

retiree's annuity instead of collecting a deposit when the retiree

marries during retirement and elects to provide a survivor annuity for

the new spouse. These regulations comply with the requirement that OPM

establish, by regulation, the method for computing the reduction on an

actuarial basis. These regulations also reorganize OPM's survivor

elections and survivor annuity regulations for the Civil Service

Retirement System to group together sections on similar subjects and

provide a more detailed table of contents to make the regulations

easier to use.

EFFECTIVE DATE: April 15, 1994.

FOR FURTHER INFORMATION CONTACT:

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

SUPPLEMENTARY INFORMATION: On October 13, 1993, we published (at 58 FR

56877) interim regulations concerning survivor elections under the

Civil Service Retirement System (CSRS) and the Federal Employees

Retirement System (FERS) and survivor annuities under CSRS. The interim

regulations implemented the statutory change in the way we collect

survivor election deposits for post-retirement marriage. The interim

regulations also reorganized subpart F of our CSRS regulations to make

it easier to use. We also requested comments on the interim

regulations. We received no comments.

Under section 11004 of the Omnibus Budget Reconciliation Act of

1993, Public Law 103-66, effective October 1, 1993, OPM will no longer

collect these deposits in either a lump sum or by installments.

Instead, OPM is now required to establish a permanent actuarial

reduction in the annuity of the retiree. This means that OPM must take

the amount of the deposit computed under the old law, and ``translate''

it into a lifetime reduction in the retiree's benefit. The reduction is

based on actuarial tables, similar to those used for alternative forms

of annuity under sections 8343a and 8420a of title 5, United States

Code.

The following three charts contain the present value factors that

will apply beginning on the first day of the month beginning on or

after the effective date of the final regulations. These present value

factors have been revised to reflect the new economic assumption

adopted by the Board of Actuaries of the Civil Service Retirement and

Disability Fund. On September 21, 1993, we published (at 58 FR 49066)

the new economic assumption as part of the notice of change in FERS

normal cost percentage effective at the beginning of fiscal year 1995.

CSRS Present Value Factors

------------------------------------------------------------------------

Reduction

Age factor

------------------------------------------------------------------------

40......................................................... 294.4

41......................................................... 290.0

42......................................................... 285.5

43......................................................... 280.8

44......................................................... 276.2

45......................................................... 270.4

46......................................................... 264.7

47......................................................... 259.2

48......................................................... 253.5

49......................................................... 247.2

50......................................................... 240.4

51......................................................... 235.0

52......................................................... 229.8

53......................................................... 224.4

54......................................................... 218.6

55......................................................... 212.6

56......................................................... 207.5

57......................................................... 202.4

58......................................................... 197.0

59......................................................... 192.3

60......................................................... 188.3

61......................................................... 182.9

62......................................................... 177.0

63......................................................... 171.9

64......................................................... 166.5

65......................................................... 161.1

66......................................................... 156.0

67......................................................... 150.7

68......................................................... 145.4

69......................................................... 140.2

70......................................................... 134.7

71......................................................... 129.4

72......................................................... 124.0

73......................................................... 118.8

74......................................................... 113.6

75......................................................... 108.5

76......................................................... 103.5

77......................................................... 98.7

78......................................................... 93.9

79......................................................... 89.4

80......................................................... 84.9

81......................................................... 80.5

82......................................................... 76.3

83......................................................... 72.3

84......................................................... 68.4

85......................................................... 64.7

86......................................................... 61.2

87......................................................... 57.9

88......................................................... 54.7

89......................................................... 51.8

90......................................................... 48.9

------------------------------------------------------------------------

FERS Present Value Factors for Regular Employees

------------------------------------------------------------------------

Reduction

Age factor

------------------------------------------------------------------------

40......................................................... 169.2

41......................................................... 168.8

42......................................................... 168.4

43......................................................... 168.1

44......................................................... 167.7

45......................................................... 166.9

46......................................................... 166.1

47......................................................... 165.4

48......................................................... 164.7

49......................................................... 163.7

50......................................................... 162.4

51......................................................... 161.9

52......................................................... 161.6

53......................................................... 161.2

54......................................................... 160.6

55......................................................... 160.0

56......................................................... 160.0

57......................................................... 160.2

58......................................................... 160.4

59......................................................... 161.2

60......................................................... 162.7

61......................................................... 163.5

62......................................................... 161.3

63......................................................... 157.1

64......................................................... 152.5

65......................................................... 148.0

66......................................................... 143.6

67......................................................... 139.1

68......................................................... 134.6

69......................................................... 130.1

70......................................................... 125.4

71......................................................... 120.7

72......................................................... 116.0

73......................................................... 111.4

74......................................................... 106.8

75......................................................... 102.2

76......................................................... 97.8

77......................................................... 93.5

78......................................................... 89.2

79......................................................... 85.0

80......................................................... 80.9

81......................................................... 77.0

82......................................................... 73.1

83......................................................... 69.4

84......................................................... 65.8

85......................................................... 62.4

86......................................................... 59.1

87......................................................... 56.0

88......................................................... 53.0

89......................................................... 50.2

90......................................................... 47.5

------------------------------------------------------------------------

FERS Present Value Factors for Law Enforcement Officers, Firefighters,

Air Traffic Controllers, and Military Reserve Technicians Who Retire

Under 5 U.S.C. 8414(c) by Reason of Disability

------------------------------------------------------------------------

Reduction

Age factor

------------------------------------------------------------------------

40......................................................... 245.2

41......................................................... 241.9

42......................................................... 238.5

43......................................................... 235.0

44......................................................... 231.5

45......................................................... 227.9

46......................................................... 224.2

47......................................................... 220.3

48......................................................... 216.5

49......................................................... 212.6

50......................................................... 208.6

51......................................................... 204.5

52......................................................... 200.3

53......................................................... 196.1

54......................................................... 191.8

55......................................................... 187.4

56......................................................... 183.1

57......................................................... 178.6

58......................................................... 174.2

59......................................................... 169.7

60......................................................... 165.1

61......................................................... 160.4

------------------------------------------------------------------------

(Age 62 and over, see table for regular employees.)

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

5 CFR Parts 831 and 842

Administrative practice and procedure, Air traffic controllers,

Claims, Disability benefits, Firefighters, Government employees, Income

taxes, Intergovernmental relations, Law enforcement officers, Pensions,

Reporting and recordkeeping requirements, Retirement.

5 CFR Part 838

Administrative practice and procedure, Claims, Disability benefits,

Government employees, Income taxes, Pensions, Retirement, Courts.

5 CFR Part 890

Administrative practice and procedure, Government employees, Health

facilities, Health insurance, Health professionals, Hostages, Reporting

and recordkeeping requirements, Retirement.

U.S. Office of Personnel Management.

Lorraine A. Green,

Deputy Director.

Accordingly, under authority of 5 U.S.C. 8347, 8461, and 8913, OPM

is adopting its interim rules amending 5 CFR parts 831, 838, 842, and

890 published on October 13, 1993, at 58 FR 56877, as final rules

without change.

[FR Doc. 94-6046 Filed 3-15-94; 8:45 am]

BILLING CODE 6325-01-M