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: Final rule.

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

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.

EFFECTIVE DATE: March 27, 1998.

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: On December 24, 1997, we published (at 62 FR

67295) a proposed rule 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. We

received no comments on the proposed rule.

Continuity of coverage rules for retirement and insurance make it

difficult for the Bureau of the Census, U.S. Department of Commerce

(``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. Accordingly, we are amending the

continuity of coverage rules to exempt Federal employees hired by the

Census Bureau under temporary, intermittent appointments to perform

decennial census duties.

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 Government

employees.

Executive Order 12866, Regulatory Review

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

in accordance with Executive Order 12866.

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.

Office of Personnel Management.

Janice R. Lachance,

Director.

Accordingly, OPM is amending 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 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.; Sec. 831.663 also issued under 5

U.S.C. 8339(j) and (k)(2); Secs. 831.663 and 831.664 also issued

under section 11004(c)(2) of Pub. L. 103-66, 107 Stat. 412;

Sec. 831.682 also issued under section 201(d) of 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) * * *

[[Page 9402]]

(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 part 842 is revised 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 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 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 Pub. L. 101-508; Sec. 842.707 also issued under

section 6001 of Pub. L. 100-203; Sec. 842.708 also issued under

section 4005 of Pub. L. 101-239 and section 7001 of 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 (c) to read as follows:

Sec. 870.301 Eligibility for life insurance.

* * * * *

(c) 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. 98-4781 Filed 2-24-98; 8:45 am]

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