Retirement and Insurance Benefits When an Annuitant Is Missing

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 880

RIN 3206-AH75

Retirement and Insurance Benefits When an Annuitant Is Missing

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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

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

regulations to establish a uniform standard that OPM will use in its

administration of retirement and insurance benefits in cases in which

an annuitant disappears. These regulations establish procedures to

determine the status of the missing annuitant and allow OPM to provide

benefits to the missing annuitant's dependents until the missing

annuitant's status is resolved.

EFFECTIVE DATE: April 2, 1998.

FOR FURTHER INFORMATION CONTACT: Harold L. Siegelman, (202) 606-0299.

SUPPLEMENTARY INFORMATION: On July 2, 1997, we published (at 62 FR

35693) proposed regulations to establish OPM's procedures for making

payments of annuity during a period when an annuitant is missing, and

until the annuitant is either found or officially determined to have

died. The regulations are aimed at providing continuing support to the

family of a missing annuitant, while balancing the interest of the

Government in protecting the retirement system from unwarranted

disbursements. The regulations also provide procedures that OPM will

follow to continue the family health insurance coverage of a missing

annuitant, to restore retroactively the annuity of a missing annuitant

who is found to be alive, and to authorize lump-sum death benefits,

survivor health insurance coverage, and life insurance payments in the

case of a missing annuitant's death. OPM received no comments on the

proposed rule.

The final regulations include two conforming changes resulting from

recent consolidations of insurance regulations. On July 18, 1997, we

published (at 62 FR 38433) final regulations that simplified and

clarified the Federal Employees Health Benefits (FEHB) Program

regulations concerning opportunities to enroll and make changes in

enrollment. The reference to section 890.301(p) in Sec. 880.303(a) of

the proposed regulations has been changed to section 890.306(r) to

conform to the current numbering of the FEHB regulations.

On September 17, 1997, we published final regulations to combine

the five parts of Title 5 of the Code of Federal Regulations relating

the Federal Employees Group Life Insurance (FEGLI) Program and to

simplify the language of the regulations. The reference parts 870

through 873 in section 880.102 of the proposed regulations has been

changed to part 870 to conform to the current numbering of the FEGLI

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 retirement and insurance benefits of retired

Government employees and their survivors.

List of Subjects in 5 CFR Parts 880

Administrative practice and procedure, Government employees, Health

insurance, Hostages, Life insurance, Pensions, Retirement.

U.S. Office of Personnel Management.

Janice R. Lachance,

Acting Director.

Accordingly, OPM is amending 5 CFR by adding part 880 to read as

follows:

PART 880--RETIREMENT AND INSURANCE BENEFITS DURING PERIODS OF

UNEXPLAINED ABSENCE

Subpart A--General

Sec.

880.101 Purpose and scope.

880.102 Regulatory structure.

880.103 Definitions.

Subpart B--Procedures

880.201 Purpose and scope.

880.202 Referral to Associate Director.

880.203 Missing annuitant status and suspension of annuity.

880.204 Restoration of annuity.

880.205 Determinations of death.

880.206 Date of death.

880.207 Adjustment of accounts after finding of death.

Subpart C--Continuation of Benefits

880.301 Purpose.

880.302 Payments of CSRS or FERS benefits.

880.303 FEHBP coverage.

880.304 FEGLI coverage.

Authority: 5 U.S.C. 8347(a), 8461(g), 8716, 8913.

Subpart A--General

Sec. 880.101 Purpose and scope.

(a) The purpose of this part is to establish a uniform standard

that OPM will use in its administration of benefits for CSRS, FERS,

FEHBP and FEGLI in cases in which an annuitant becomes a missing

annuitant.

(b) This part establishes the procedures that OPM will follow to--

(1) Determine--

(i) Who is a missing annuitant,

(ii) When a missing annuitant has died,

(iii) When benefits will be paid in missing annuitant cases, and

(iv) FEHBP coverage for family members of a missing annuitant; and

(2) Make adjustments to CSRS and FERS benefit payments, FEHBP

coverage and premiums, and FEGLI benefit payments and premiums after a

determination that a missing annuitant is dead.

(c) This part applies only to situations in which an individual who

satisfies the statutory definition of an annuitant under section

8331(9) or section 8401(2) of title 5, United States Code, disappears

and has not been determined to be dead by an authorized institution.

This part does not apply to--

(1) An employee, regardless of whether the absence is covered by

subchapter VII of chapter 55 of title 5, United States Code; or

(2) A separated employee who either--

(i) Does not meet the age and service requirements for an annuity,

or

(ii) Has not filed an application for annuity.

[[Page 10292]]

Sec. 880.102 Regulatory structure.

(a) This part contains the following subparts:

(1) Subpart A contains general information about this part and

related subjects.

(2) Subpart B establishes the procedures that OPM will follow in

missing annuitant cases.

(3) Subpart C establishes the methodologies that OPM will apply in

determining continuations of coverage and amounts of payments in

missing annuitant cases.

(b) Part 831 of this chapter contains information about benefits

under CSRS.

(c) Part 838 of this chapter contains information about benefits

available to former spouses under court orders.

(d) Parts 841 through 844 of this chapter contain information about

benefits under FERS.

(e) Part 870 of this chapter contains information about benefits

under FEGLI.

(f) Part 890 of this chapter contains information about benefits

under FEHBP.

(g) Part 1200 of this title contains information about Merit

Systems Protection Board review of OPM decisions affecting interests in

CSRS or FERS benefits.

(h) Part 1600 of this title contains information about benefits

under the Thrift Savings Plan.

Sec. 880.103 Definitions.

For purposes of this part--

Annuitant means an individual who has separated from the Federal

service with, and has retained, title to a CSRS or FERS annuity, has

satisfied the age and service requirements for commencement of that

annuity, and has filed an application for that annuity;

Associate Director means OPM's Associate Director for Retirement

and Insurance or his or her designee;

Authorized institution means a government organization or official

legally charged with making determinations of death in the State or

country of the missing annuitant's domicile, citizenship, or

disappearance;

CSRS means the Civil Service Retirement System established in

subchapter III of chapter 83 of title 5, United States Code;

FEGLI means the Federal Employees Group Life Insurance program

established in chapter 87 of title 5, United States Code;

FEHBP means the Federal Employees Health Benefits Program

established in chapter 89 of title 5, United States Code;

FERS means the basic benefit portion of the Federal Employees

Retirement System established in subchapters I, II, IV, V, and VI of

chapter 84 of title 5, United States Code; FERS does not include

benefits under the Thrift Savings Plan established under subchapters

III and VII of chapter 84 of title 5, United States Code;

Missing annuitant means an individual who has acquired the status

of missing annuitant under Sec. 880.203(b).

Subpart B--Procedures

Sec. 880.201 Purpose and scope.

This subpart establishes the procedures that OPM will use to--

(a) Determine that an individual is a missing annuitant;

(b) Suspend payment of annuity to a missing annuitant;

(c) Notify individuals affected by such a suspension of payments;

and

(d) Determine that a missing annuitant has died.

Sec. 880.202 Referral to Associate Director.

Any OPM office that receives information concerning the possibility

that an annuitant might have disappeared will notify the Associate

Director.

Sec. 880.203 Missing annuitant status and suspension of annuity.

(a) Upon receipt of information concerning the possibility that an

annuitant has disappeared, the Associate Director will conduct such

inquiry as he or she determines to be necessary to determine whether

the annuitant is alive and whether the annuitant's whereabouts can be

determined.

(b) If during an inquiry under paragraph (a) of this section, or

upon subsequent receipt of additional information, the Associate

Director finds substantial evidence (as defined in Sec. 1201.56(c)(1)

of this title) to believe that an annuitant is either not alive or that

the annuitant's whereabouts cannot be determined, the annuitant

acquires the status of missing annuitant. The Associate Director will

then--

(1) Suspend payments to the missing annuitant; and

(2) Notify individuals who may be able to qualify for payments

under Sec. 880.302 that--

(i) OPM has suspended the annuity payments to the missing

annuitant;

(ii) Payment may be made under Sec. 880.302, including the amount

available for payment, how that amount was determined, and the

documentation required (if any) to qualify for such payments; and

(iii) In response to an inquiry from any person seeking CSRS, FERS,

FEHBP, or FEGLI benefits, OPM will provide information about

documentation necessary to establish a claim for such benefits.

Sec. 880.204 Restoration of annuity.

(a) If the missing annuitant's whereabouts are determined, and he

or she is alive and--

(1) Competent, OPM will resume payments to the annuitant and pay

retroactive annuity for the period in missing status less any payment

made to the family during that period; or

(2) Incompetent, OPM will resume payments to a representative payee

under section 8345(e) or section 8466(c) of title 5, United States

Code, and pay retroactive annuity for the period in missing status less

any payment made to the family during that period.

(b) If the missing annuitant's whereabouts cannot be determined,

missing annuitant status continues until an authorized institution

determines that the missing annuitant is dead. (See Sec. 880.205.)

Sec. 880.205 Determinations of death.

OPM does not make findings of presumed death. A claimant for CSRS,

FERS, or FEGLI death benefits (other than payments under Sec. 880.302)

or an individual seeking an adjustment of accounts under Sec. 880.207

must submit a death certificate or other legal certification of death

issued by an authorized institution.

Sec. 880.206 Date of death.

(a) Except as provided in paragraph (b) of this section, for the

purpose of benefits administered by OPM, the date of death of a missing

annuitant who has been determined to be dead by an authorized

institution is the date of disappearance as determined by the Associate

Director.

(b) For the purpose of determining whether a claim is untimely

under any statute of limitations applicable to CSRS, FERS or FEGLI

benefits (section 8345(i)(2), section 8466(b), or section 8705(b)

through (d) of title 5, United States Code), the time between the date

of disappearance and the date on which the authorized institution

issues its decision that the missing annuitant is dead is excluded.

Sec. 880.207 Adjustment of accounts after finding of death.

After a missing annuitant is determined to be dead under

Sec. 880.205, OPM will review the case to determine whether additional

benefits are payable or excess insurance premiums have been withheld.

[[Page 10293]]

Subpart C--Continuation of Benefits

Sec. 880.301 Purpose.

This subpart establishes OPM's policy concerning the availability

and amount of CSRS and FERS annuity payments and the continuation of

FEHBP and FEGLI coverage and premiums while an annuitant is classified

as a missing annuitant.

Sec. 880.302 Payments of CSRS or FERS benefits.

(a) OPM will pay an amount equal to the survivor annuity that would

be payable as CSRS or FERS survivor annuity to an account in a

financial institution designated (under electronic funds transfer

regulations in part 209 or part 210 of Title 31, Code of Federal

Regulations) by an individual who, if the missing annuitant were dead,

would be entitled to receive payment of a survivor annuity.

(b) If more than one individual would qualify for survivor annuity

payments in the event of the missing annuitant's death, OPM will make

separate payments in the same manner as if the missing annuitant were

dead.

Sec. 880.303 FEHBP coverage.

(a) If the missing annuitant had a family enrollment, the

enrollment will be transferred to the eligible family members under

Sec. 890.303(c) of this chapter. If there is only one eligible family

member, the enrollment will be changed to a self-only enrollment under

Sec. 890.306(r) of this chapter. The changes will be effective the

first day of the pay period following the date of disappearance.

(b) If the missing annuitant was covered by a self only enrollment

or if there is no eligible family member remaining, the enrollment

terminates at midnight of the last day of the pay period in which he or

she disappeared, subject to the temporary extension of coverage for

conversion.

(c) If the missing annuitant is found to be alive, the coverage

held before the disappearance is reinstated effective with the pay

period during which the annuitant is found, unless the annuitant, or

the annuitant's representative, requests that the enrollment be

restored retroactively to the pay period in which the disappearance

occurred.

Sec. 880.304 FEGLI coverage.

(a) FEGLI premiums will not be collected during periods when an

annuitant is a missing annuitant.

(b)(1) If the annuity of a missing annuitant is restored under

Sec. 880.204(a), OPM will deduct the amount of FEGLI premiums

attributable to the period when the annuitant was a missing annuitant

from any adjustment payment due the annuitant under Sec. 880.204(a).

(2) If a missing annuitant is determined to be dead under

Sec. 880.205, FEGLI premiums and benefits will be computed using the

date of death established under Sec. 880.206(a).

[FR Doc. 98-5401 Filed 3-2-98; 8:45 am]

BILLING CODE 6325-01-P