Federal Employees' Retirement System; Present Value Conversion Factors for Spouses of Deceased Separated Employees

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 843

RIN 3206-AL31

Federal Employees' Retirement System; Present Value Conversion Factors for Spouses of Deceased Separated Employees

AGENCY:

Office of Personnel Management.

ACTION:

Interim rule.

SUMMARY:

The Office of Personnel Management (OPM) is issuing an interim rule to revise the table of reduction factors for early commencing dates of survivor annuities for spouses of separated employees who die before the date on which they would be eligible for unreduced deferred annuities under the Federal Employees' Retirement System (FERS) Act of 1986. These rules are necessary to conform the tables to the economic assumptions adopted by the Board of Actuaries and published previously in the

Federal Register

.

DATES:

This interim rule is effective December 19, 2007. We must receive your comments by January 18, 2008.

ADDRESSES:

You may submit comments, identified by RIN number 3206-AL31, by any of the following methods:

•

Federal eRulemaking Portal: http://www.regulations.gov.

Follow the instructions for submitting comments.

•

E-mail: combox@opm.gov.

Include RIN number 3206-AL31 in the subject line of the message.

•

Fax:

(202) 606-0990

•

Mail:

John Panagakos, Manager, Retirement Group, Office of Personnel Management, 1900 E Street NW., RM 4351, Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT:

Jessica Johnson, (202) 606-0299.

SUPPLEMENTARY INFORMATION:

OPM has published a notice in the

Federal Register

at 72 FR 31631 (June 7, 2007) to revise the normal cost percentage under the Federal Employees' Retirement System (FERS) Act of 1986, Public Law 99-335, 100 Stat. 514, based on changed economic assumptions and demographic factors adopted by the Board of Actuaries of the Civil Service Retirement System. Those changed economic assumptions require corresponding changes in factors used to produce actuarially equivalent benefits when required by the FERS Act.

Section 843.311 of title 5, Code of Federal Regulations, regulates the benefits for the survivors of separated employees under 5 U.S.C. 8442(c). This section provides a choice of benefits for eligible current and former spouses. If the current or former spouse is the person entitled to the unexpended balance under the order of precedence under 5 U.S.C. 8424, he or she may elect to receive the unexpended balance instead of an annuity.

Alternatively, an eligible current or former spouse may elect to receive an annuity commencing on the day after the employee's death or on the deceased separated employee's 62nd birthday. If the annuity commences on the deceased separated employee's 62nd birthday, it equals 50 percent of the annuity that the separated employee would have received when he or she attained age 62. If the current or former spouse elects the earlier commencing date, the annuity is reduced using the factors in Appendix A to subpart C of part 843 to make the annuity actuarially equivalent to the present value of the annuity that he or she would have received if it commenced on the retiree's 62nd birthday. These rules amend that appendix to conform to the revised economic assumptions.

Waiver of General Notice of Proposed Rulemaking

Under section 553(b)(3)(B) and (d)(3) of title 5, United States Code, I find that good reason exists for waiving the general notice of proposed rulemaking and for making these amendments effective in less than 30 days. The amendments made by this rule are required by changes in economic assumptions that were published on June 7, 2007. Providing a comment period on the result of mathematical computations resulting from the changed economic assumptions is unnecessary and, to the extent that it would delay benefit payments, is contrary to the public interest.

Executive Order 12866, Regulatory Review

This rule has been reviewed by the Office of Management and Budget in accordance with Executive Order (E.O.) 12866, as amended by E.O. 13258 and E.O. 13422.

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 payments to surviving current and former spouses of former employees and Members who separated from Federal service with title to a deferred annuity.

List of Subjects in 5 CFR Part 843

Air traffic controllers, Disability benefits, Firefighters, Government employees, Law enforcement officers, Pensions, Retirement.

United States Office of Personnel Management.

Linda M. Springer,

Director.

For the reasons stated in the preamble, the Office of Personnel Management amends 5 CFR part 843 as follows:

PART 843—FEDERAL EMPLOYEES RETIREMENT SYSTEM—DEATH BENEFITS AND EMPLOYEE REFUNDS

1. The authority citation for part 843 continues to read as follows:

Authority:

5 U.S.C. 8461; §§ 843.205, 843.208, and § 843.209 also issued under 5 U.S.C. 8424; § 843.309 also issued under 5 U.S.C. 8442; § 843.406 also issued under 5 U.S.C. 8441.

Subpart C—Current and Former Spouse Benefits

2. Revise Appendix A to subpart C of part 843 to read as follows:

Appendix A to Subpart C of Part 843.—Present Value Conversion Factors for Earlier Commencing Date of Annuities of Current and Former Spouses of Deceased Separated Employees

Age of separated employee at birthday before death

Multiplier

With at least 10, but less than 20 years of creditable service—

26

0.0592

27

.0633

28

.0688

29

.0730

30

.0804

31

.0859

32

.0921

33

.0991

34

.1064

35

.1158

36

.1234

37

.1333

38

.1422

39

.1551

40

.1668

41

.1799

42

.1938

43

.2097

44

.2260

45

.2437

46

.2635

47

.2858

48

.3085

49

.3346

50

.3618

51

.3926

52

.4255

53

.4623

54

.5025

55

.5463

56

.5944

57

.6461

58

.7040

59

.7675

60

.8374

61

.9146

With at least 20, but less than 30 years of creditable service—

36

0.1483

37

.1598

38

.1709

39

.1858

40

.2000

41

21.59

42

.2325

43

.2514

44

.2708

45

.2922

46

.3160

47

.3424

48

.3697

49

.4007

50

.4335

51

.4701

52

.5093

53

.5532

54

.6010

55

.6532

56

.7104

57

.7722

58

.8411

59

.9167

Age of separated employee at birthday before death

Multiplier by separated employee's year of birth

After 1966

From 1950 through 1966

Before 1950

With at least 30 years of creditable service—

46

0.4109

0.4476

0.4870

47

.4449

.4843

.5268

48

.4805

.5232

.5691

49

.5204

.5666

.6161

50

.5630

.6130

.6666

51

.6102

.6642

.7222

52

.6610

.7195

.7823

53

.7175

.7807

.8487

54

.7790

.8474

.9210

55

.8461

.9203

1.0000

56

.9195

1.0000

1.0000

[FR Doc. E7-24527 Filed 12-18-07; 8:45 am]

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