# 48 CFR § 2132.170: 2132.170 Recurring premium payments to Contractors

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-48-2132.170

## Section

- **Citation:** 48 CFR § 2132.170
- **Heading:** 2132.170 Recurring premium payments to Contractors
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 48—Federal Acquisition Regulations System > CHAPTER 21—OFFICE OF PERSONNEL MANAGEMENT, FEDERAL EMPLOYEES GROUP LIFE INSURANCE FEDERAL ACQUISITION REGULATION > SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS > PART 2132—CONTRACT FINANCING > Subpart 2132.1—General

## Text

(a) OPM will make payments on a letter of credit (LOC) basis. OPM and the Contractor will concur on an estimate of benefits and administrative costs plus the fixed service or risk charge for the forthcoming contract year, as specified in the contract. The annual premium to the Contractor, based on this estimate, will be credited to the Contractor's LOC account in 12 equal monthly installments due on the first business day of each month and available for drawdown. OPM will credit the Contractor's LOC account for the December payment no later than the last business day of each calendar year. Following the close of the contract year, a reconciliation of premiums, benefits, and other costs will be performed as a limited cost redetermination. In addition, interest distribution payments will be made available for Contractor drawdown from the LOC account. The Contractor will use the LOC account in accordance with guidelines issued by OPM.
(b) Withdrawals from the LOC account for benefit costs of $5,000 or more will be made on a claims-paid basis. Withdrawals from the LOC account for benefit costs of less than $5,000 and other FEGLI Program disbursements will be made on a checks-presented basis. Under a checks-presented basis, drawdown on the LOC is delayed until the checks issued for FEGLI Program disbursements are presented to the Contractor's bank for payment.
(c) Nothing in this chapter will affect the ability of the Contractor to hold the special contingency reserve established and maintained in accordance with the terms of 5 U.S.C. 8712.
[70 FR 41153, July 18, 2005]

## Nearby sections

- [48 CFR § 2132.170 2132.170 Recurring premium payments to Contractors.](https://www.frixlaw.com/law-library/statutes/ecfr-48-2132.170.md)
- [48 CFR § 2132.171 2132.171 Contract clause.](https://www.frixlaw.com/law-library/statutes/ecfr-48-2132.171.md)
- [48 CFR § 2132.607 2132.607 Tax credit.](https://www.frixlaw.com/law-library/statutes/ecfr-48-2132.607.md)
- [48 CFR § 2132.617 2132.617 Contract clause.](https://www.frixlaw.com/law-library/statutes/ecfr-48-2132.617.md)
- [48 CFR § 2132.770 2132.770 Insurance premium payments and special contingency reserve.](https://www.frixlaw.com/law-library/statutes/ecfr-48-2132.770.md)
- [48 CFR § 2132.771 2132.771 Non-commingling of FEGLI Program funds.](https://www.frixlaw.com/law-library/statutes/ecfr-48-2132.771.md)
- [48 CFR § 2132.772 2132.772 Contract clause.](https://www.frixlaw.com/law-library/statutes/ecfr-48-2132.772.md)
- [48 CFR § 2132.806 2132.806 Contract clause.](https://www.frixlaw.com/law-library/statutes/ecfr-48-2132.806.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-48-2132.170. Check the current official text before relying on it. Not legal advice.