[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 512 Referred in Senate (RFS)]

103d CONGRESS
  2d Session
                                H. R. 512


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 20, 1994

  Received; read twice and referred to the Committee on Governmental 
                                Affairs

_______________________________________________________________________

                                 A ACT


 
  To amend chapter 87 of title 5, United States Code, to provide that 
group life insurance benefits under such chapter may, upon application, 
  be paid out to an insured individual who is terminally ill, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``FEGLI Living Benefits Act''.

SEC. 2. OPTION TO RECEIVE ``LIVING BENEFITS''.

    (a) In General.--Chapter 87 of title 5, United States Code, is 
amended by inserting after section 8714c the following:
``Sec. 8714d. Option to receive `living benefits'
    ``(a) For the purpose of this section, an individual shall be 
considered to be `terminally ill' if such individual has a medical 
prognosis that such individual's life expectancy is 9 months or less.
    ``(b) The Office of Personnel Management shall prescribe 
regulations under which any individual covered by group life insurance 
under section 8704(a) may, if such individual is terminally ill, elect 
to receive a lump-sum payment equal to--
            ``(1) the full amount of insurance under section 8704(a) 
        (or portion thereof designated for this purpose under 
        subsection (d)(4)) which would otherwise be payable under this 
        chapter (on the establishment of a valid claim)--
                    ``(A) computed based on a date determined under 
                regulations of the Office (but not later than 30 days 
                after the date on which the individual's application 
                for benefits under this section is approved or deemed 
                approved under subsection (d)(3)); and
                    ``(B) assuming continued coverage under this 
                chapter at that time;
        reduced by
            ``(2) an amount necessary to assure that there is no 
        increase in the actuarial value of the benefit paid (as 
        determined under regulations of the Office).
    ``(c)(1) If a lump-sum payment is taken under this section--
            ``(A) no insurance under the provisions of section 8704 (a) 
        or (b) shall be payable based on the death or any loss of the 
        individual involved, unless the lump-sum payment represents 
        only a portion of the total benefits which could have been 
        taken, in which case benefits under those provisions shall 
        remain in effect, except that the basic insurance amount on 
        which they are based--
                    ``(i) shall be reduced by the percentage which the 
                designated portion comprised relative to the total 
                benefits which could have been taken (rounding the 
                result to the nearest multiple of $1,000 or, if midway 
                between multiples of $1,000, to the next higher 
                multiple of $1,000); and
                    ``(ii) shall not be subject to further adjustment; 
                and
            ``(B) deductions and withholdings under section 8707, and 
        contributions under section 8708, shall be terminated with 
        respect to such individual (or reduced in a manner consistent 
        with the percentage reduction in the individual's basic 
        insurance amount, if applicable), effective with respect to any 
        amounts which would otherwise become due on or after the date 
        of payment under this section.
    ``(2) An individual who takes a lump-sum payment under this section 
(whether full or partial) remains eligible for optional benefits under 
sections 8714a-8714c (subject to payment of the full cost of those 
benefits in accordance with applicable provisions of the section or 
sections involved, to the same extent as if no election under this 
section had been made).
    ``(d)(1) The Office's regulations shall include provisions 
regarding the form and manner in which an application under this 
section shall be made and the procedures in accordance with which any 
such application shall be considered.
    ``(2) An application shall not be considered to be complete unless 
it includes such information and supporting evidence as the regulations 
require, including certification by an appropriate medical authority as 
to the nature of the individual's illness and that the individual is 
not expected to live more than 9 months because of that illness.
    ``(3)(A) In order to ascertain the reliability of any medical 
opinion or finding submitted as part of an application under this 
section, the covered individual may be required to submit to a medical 
examination under the direction of the agency or entity considering the 
application. The individual shall not be liable for the costs 
associated with any examination required under this subparagraph.
    ``(B) Any decision by the reviewing agency or entity with respect 
to an application for benefits under this section (including one 
relating to an individual's medical prognosis) shall not be subject to 
administrative review.
    ``(4)(A) An individual making an election under this section may 
designate that only a limited portion (expressed as a multiple of 
$1,000) of the total amount otherwise allowable under this section be 
paid pursuant to such election.
    ``(B) A designation under this paragraph may not be made by an 
individual described in paragraph (1) or (2) of section 8706(b).
    ``(5) An election to receive benefits under this section shall be 
irrevocable, and not more than one such election may be made by any 
individual.
    ``(6) The regulations shall include provisions to address the 
question of how to apply section 8706(b)(3)(B) in the case of an 
electing individual who has attained 65 years of age.''.
    (b) Table of Sections.--The table of sections for chapter 87 of 
title 5, United States Code, is amended by inserting after the item 
relating to section 8714c the following:

``8714d. Option to receive `living benefits'.''.

SEC. 3. EFFECTIVE DATE; OPEN SEASON AND NOTICE.

    (a) Effective Date.--The amendments made by section 2 shall take 
effect 9 months after the date of the enactment of this Act.
    (b) Open Season; Notice.--(1) The Office of Personnel Management 
shall prescribe regulations under which, beginning not later than 9 
months after the date of the enactment of this Act, and over a period 
of not less than 8 weeks--
            (A) an employee (as defined by section 8701(a) of title 5, 
        United States Code) who declined or voluntarily terminated 
        coverage under chapter 87 of such title--
                    (i) may elect to begin, or to resume, group life 
                insurance and group accidental death and dismemberment 
                insurance; and
                    (ii) may make such other elections under such 
                chapter as the Office may allow; and
            (B) such other elections as the Office allows may be made.
    (2) The Office shall take such action as may be necessary to ensure 
that employees and any other individuals who would be eligible to make 
an election under this subsection are afforded advance notification to 
that effect.

SEC. 4. FUNDING.

    Notwithstanding section 8714(a)(1) of title 5, United States Code, 
the Office of Personnel Management shall retain in the Employees' Life 
Insurance Fund such portion of premium payments otherwise due as will, 
no later than September 30, 1995, permanently reduce the contingency 
reserve established under the third sentence of section 8712 of such 
title 5 by an amount equal to the amount by which payments from the 
Employees' Life Insurance Fund during the fiscal year ending September 
30, 1995, exceed the payments that would have been paid had the 
amendments made by this Act not been enacted.

            Passed the House of Representatives July 19, 1994.

            Attest:

                                           DONNALD K. ANDERSON,

                                                                 Clerk.