Retirement; Alternative Forms of Annuity

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 831 and 842

RIN 3206-AG16

Retirement; Alternative Forms of Annuity

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing final

regulations on alternative forms of annuity. The regulations establish

a new standard for determining what constitutes a critical medical

condition and implement the changes made by the Omnibus Budget

Reconciliation Act of 1993. Under this law the alternative form of

annuity was repealed for employees whose annuities commence on or after

October 1, 1994, except for employees who have a life-threatening

affliction or other critical medical condition. The regulations also

revise the list of critical medical conditions that are qualifying.

EFFECTIVE DATE: June 12, 1996.

FOR FURTHER INFORMATION CONTACT:

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

SUPPLEMENTARY INFORMATION: On October 25, 1995, we published (at 60 FR

54585) interim regulations on alternative forms of annuity to change

the standard for determining what constitutes a critical medical

condition. Our previous regulations used a 1-year-or-less life

expectancy as the standard, but the interim regulations adopted a 2-

year-or-less standard. The interim regulations also make effective the

previously proposed regulations (published on November 4, 1994, at 59

FR 55211) on alternative forms of annuity (AFA) to implement the

changes in sections 8343a and 8420a of title 5, United States Code,

made by the Omnibus Budget Reconciliation Act of 1993, Pub. L. 103-66.

The Act included a provision terminating this benefit for employees

whose annuities commence on or after October 1, 1994, except for

employees who have a life-threatening affliction or other critical

medical condition. The interim regulations also made effective a

revised list of critical medical conditions. This revised list was

included in the 1994 general notice of proposed rulemaking. We received

no comments on the interim regulations. We addressed the one comment

that we received on the 1994 proposed regulations in the supplementary

information section of the interim regulations.

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 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.

Office of Personnel Management.

James B. King,

Director.

Accordingly, under authority of 5 U.S.C. 8347 and 8467, OPM is

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

on October 25, 1995, at 60 FR 54585, as final rules without change.

[FR Doc. 96-11864 Filed 5-10-96; 8:45 am]

BILLING CODE 6325-01-M