Retirement and InsuranceExemption From Continuity of Coverage Requirements for Certain Decennial Census Employees With Dual Appointments

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 831, 842, 870, and 890

RIN 3206-AI12

Retirement and Insurance--Exemption From Continuity of Coverage

Requirements for Certain Decennial Census Employees With Dual

Appointments

AGENCY: Office of Personnel Management.

ACTION: Proposed rule.

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

regulations to provide an exemption from continuity of coverage

requirements for Federal retirement, health insurance, and life

insurance benefits, for certain Federal employees who accept a second

appointment to perform intermittent decennial census duties. The

purpose of this exemption is to facilitate hiring Federal employees for

the decennial census by eliminating administrative complexities that

would otherwise result under current regulations. Employees will retain

the retirement and insurance benefits to which they are entitled under

their primary Federal jobs, while earning additional wages in their

second jobs with the Census Bureau.

DATES: Comments must be received on or before January 23, 1998.

ADDRESSES: Send comments to Mary Ellen Wilson, Retirement Policy

Division, Office of Personnel Management, P.O. Box 57, Washington, DC

20044; or deliver to OPM, Room 4351, 1900 E Street, NW., Washington DC.

Comments may also be submitted by electronic mail to [email protected].

FOR FURTHER INFORMATION CONTACT: For Parts 831 and 842: Robert

Girouard, (202) 606-0299; and for Parts 870 and 890: Karen Leibach,

(202) 606-0004.

SUPPLEMENTARY INFORMATION:

An individual who is hired into a Federal position from outside

Government under a temporary, intermittent appointment is excluded from

retirement and insurance coverage under the Civil Service Retirement

System (CSRS), the Federal Employees Retirement System (FERS), the

Federal Employees' Group Life Insurance Program (FEGLI), and the

Federal Employees Health Benefits Program (FEHB). However, by

regulation, Federal employees in positions covered by retirement,

health insurance, and life insurance, who move to Federal positions not

covered by these benefits, can generally continue their benefit

coverage if they have no break in Federal service. This continuity of

coverage rule also applies when a Federal employee accepts a second,

concurrent Federal job that would otherwise be excluded from coverage.

The Bureau of the Census, U.S. Department of Commerce (``Census

Bureau'') has asked OPM for an exemption from this continuity of

coverage requirement, when a Federal employee is hired by the Census

Bureau for a second job performing intermittent decennial census

duties.

The Census Bureau anticipates evaluating 2.6 million applicants and

hiring 260 thousand workers for peak operations of the year 2000

decennial census. The Census Bureau is placing a special emphasis on

hiring current Federal employees for decennial census operations,

because of the scale of hiring that must be carried out by the Census

Bureau beginning in 1998; the special skills of Federal employees; and

the low unemployment rate, which reduces the supply of labor readily

available for temporary hiring.

It is anticipated that 95 to 98 percent of Federal employees hired

for second jobs by the Census Bureau will be hired as intermittent,

excepted-service appointees, under temporary appointments not to exceed

one year. These appointments will generally be made under section 23(b)

of title 13, United States Code, which allows Federal employees to be

compensated for second positions conducting census field work, without

regard to the restrictions on dual compensation found in section 5533

of title 5, United States Code.

Continuity of coverage rules for retirement and insurance make it

difficult for the Census Bureau to hire Federal employees for second

appointments. While each Federal employee retains benefit coverage

under his or her primary position with little or no additional benefits

accruing from the intermittent Census employment, the Census Bureau

would be required to coordinate closely with each employee's agency to

determine the amount of additional retirement deductions and insurance

premiums that would have to be withheld as a result of continuity of

coverage. The administrative complexities resulting from week by week

coordination with the employee's primary agency would be highly

susceptible to error and would make large-scale hiring from the pool of

Federal employees administratively prohibitive. Placing Federal

employees hired to perform short term decennial census service on the

same benefit footing as persons hired from outside the Government will

significantly reduce the coordination burden, and assist the Census

Bureau in meeting its unique staffing requirements.

For these reasons, the Office of Personnel Management is proposing

to amend the continuity of coverage rules to exempt Federal employees

hired by the Census Bureau under temporary, intermittent appointments

to perform decennial census duties. OPM's authority to make this

exemption is in sections 8347(g), 8402(c)(1), 8716(b), and 8913(b) of

title 5, United States Code.

In order for these regulations to meet their stated purpose of

providing timely relief, they must take effect by the Spring of 1998,

when the Census Bureau will begin hiring Federal employees for

decennial census rehearsal activities. Therefore, the Office of

Personnel Management is issuing the proposed regulations with a 30-day

comment period.

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 and insurance benefits of retired

Government employees and their survivors.

Executive Order 12866, Regulatory Review

This rule has been reviewed by the Office of Management and Budget

in accordance with Executive Order 12866.

[[Page 67296]]

List of Subjects

5 CFR Parts 831 and 842

Administrative practice and procedure, Air traffic controllers,

Alimony, Claims, Disability benefits, Firefighters, Government

employees, Income taxes, Intergovernmental relations, Law enforcement

officers, Pensions, Reporting and recordkeeping requirements,

Retirement.

5 CFR Part 870

Administrative practice and procedure, Government employees,

Hostages, Iraq, Kuwait, Lebanon, Life insurance, Retirement.

5 CFR Part 890

Administrative practice and procedure, Government employees, Health

facilities, Health insurance, Health professions, Hostages, Iraq,

Kuwait, Lebanon, Reporting and recordkeeping requirements, Retirement.

U.S. Office of Personnel Management.

Janice R. Lachance,

Director.

Accordingly, OPM proposed to amend Parts 831, 842, 870, and 890 of

Title 5 of the Code of Federal Regulations as follows:

PART 831--RETIREMENT

1. The authority citation for part 831 is revised to read as

follows:

Authority: 5 U.S.C. 8347; Sec. 831.102 also issued under 5

U.S.C. 8334; Sec. 831.106 also issued under 5 U.S.C. 552a;

Sec. 831.108 also issued under 5 U.S.C. 8336(d)(2);

Sec. 831.201(b)(1) also issued under 5 U.S.C. 8347(g);

Sec. 831.201(b)(6) also issued under 5 U.S.C. 7701(b)(2);

Sec. 831.201(g) also issued under sections 11202(f), 11232(e), and

11246(b) of title XI of Pub. L. 105-33, 111 Stat. 251; Sec. 831.204

also issued under section 102(e) of Pub. L. 104-8, 109 Stat. 102, as

amended by section 153 of Pub. L. 104-134, 110 Stat. 1321;

Sec. 831.303 also issued under 5 U.S.C. 8334(d)(2); Sec. 831.502

also issued under 5 U.S.C. 8337; Sec. 831.502 also issued under

section 1(3), E.O. 11228, 3 CFR 1964-1965 Comp. p. 317; Sec. 831.663

also issued under 5 U.S.C. 8339(j) and (k)(2); Secs. 831.663 and

831.664 also issued under Pub. L. 103-66, 107 Stat. 412;

Sec. 831.682 also issued under section 201(d) of the Pub. L. 99-251,

100 Stat. 23; subpart S also issued under 5 U.S.C. 8345(k); subpart

V also issued under 5 U.S.C. 8343a and section 6001 of Pub. L. 100-

203, 101 Stat. 1330-275; Sec. 831.2203 also issued under section

7001(a)(4) of Pub. L. 101-508, 104 Stat. 1388-328.

Subpart B--Coverage

2. In Sec. 831.201, paragraph (b)(1) is revised to read as follows:

Sec. 831.201 Exclusions from retirement coverage.

* * * * *

(b) * * *

(1) Employment in an excluded category follows employment subject

to subchapter III of chapter 83 of title 5, United States Code, without

a break in service or after a separation from service of 3 days or

less, except in the case of:

(i) An alien employee whose duty station is located in a foreign

country; or

(ii) An employee hired by the Census Bureau under a temporary,

intermittent appointment to perform decennial census duties.

* * * * *

PART 842--FEDERAL EMPLOYEES RETIREMENT SYSTEM--BASIC ANNUITY

3. The authority citation for section 842 continues to read as

follows:

Authority: 5 U.S.C. 8461(g); Secs. 842.104 and 842.106 also

issued under 5 U.S.C. 8461(n); Sec. 842.105 also issued under 5

U.S.C. 8402(c)(1) and 7701(b)(2); Sec. 842.106 also issued under

section 102(e) of the District of Columbia Financial Responsibility

and Management Assistance Act of 1995, Pub. L. 104-8, 109 Stat. 102,

as amended by section 153 of Pub. L. 104-134, 110 Stat. 1321;

Sec. 842.107 also issued under sections 11202(f), 11232(e), and

11246(b) of the National Capital Revitalization and Self-Government

Improvement Act of 1997, title XI of Pub. L. 105-33, 111 Stat. 251;

Secs. 842.604 and 842.611 also issued under 5 U.S.C. 8417;

Sec. 842.607 also issued under 5 U.S.C. 8416 and 8417; Sec. 842.614

also issued under 5 U.S.C. 8419; Sec. 842.615 also issued under 5

U.S.C. 8418; Sec. 842.703 also issued under section 7001(a)(4) of

the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508;

Sec. 842.707 also issued under section 6001 of the Omnibus Budget

Reconciliation Act of 1987, Pub. L. 100-203; Sec. 842.708 also

issued under section 4005 of the Omnibus Budget Reconciliation Act

of 1989, Pub. L. 101-239 and section 7001 of the Omnibus Budget

Reconciliation Act of 1990, Pub. L. 101-508; subpart H also issued

under 5 U.S.C. 1104.

Subpart A--Coverage

4. In Sec. 842.105, paragraph (b) is revised to read as follows:

Sec. 842.105 Regulatory exclusions.

* * * * *

(b) When an employee who is covered by FERS moves to a position

listed in paragraph (a) of this section without a break in service or

after a separation of 3 days or less, his or her FERS coverage will

continue, except in the case of an employee hired by the Census Bureau

under a temporary, intermittent appointment to perform decennial census

duties.

* * * * *

PART 870--FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM

5. The authority citation for part 870 is revised to read as

follows:

Authority: 5 U.S.C. 8716; subpart J also issued under sec. 599C

of Pub. L. 101-513, 104 Stat. 2064, as amended; Sec. 870.302 also

issued under sections 11202(f), 11232(e), and 11246(b) and (c) of

Pub. L. 105-33, 111 Stat. 251.

6. In Sec. 870.301, add paragraph (d) to read as follows:

Sec. 870.301 Eligibility for life insurance.

* * * * *

(d) Notwithstanding any other provision in this part, the hiring of

a Federal employee, whether in pay status or nonpay status, for a

temporary, intermittent position with the decennial census has no

effect on the amount of his/her Basic or Option B insurance, the

withholdings or Government contribution for his/her insurance, or the

determination of when 12 months in nonpay status ends.

PART 890--FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM

7. The authority citation for part 890 continues to read as

follows:

Authority: 5 U.S.C. 8913; Sec. 890.803 also issued under 50

U.S.C. 403p, 22 U.S.C. 4069c and 4069c-1; subpart L also issued

under sec. 599C of Pub. L. 101-513, 104 Stat. 2064, as amended;

Sec. 890.102 also issued under sections 11202(f), 11232(e), and

11246(b) and (c) of Pub. L. 105-33, 111 Stat.251.

8. In Sec. 890.102, paragraph (g) is added to read as follows:

Sec. 890.102 Coverage

* * * * *

(g) Notwithstanding any other provision in this part, the hiring of

a Federal employee, whether in pay status or nonpay status, for a

temporary, intermittent position with the decennial census has no

effect on the withholding or Government contribution for his/her

coverage or the determination of when 365 days in nonpay status ends.

[FR Doc. 97-33732 Filed 12-23-97; 8:45 am]

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