[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2675 Referred in Senate (RFS)]

  1st Session
                                H. R. 2675


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 5, 1997

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

_______________________________________________________________________

                                 AN ACT


 
  To require that the Office of Personnel Management submit proposed 
   legislation under which group universal life insurance and group 
 variable universal life insurance would be available under chapter 87 
        of title 5, United States Code, 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 ``Federal Employees Life Insurance 
Improvement Act''.

SEC. 2. REQUIREMENT THAT A LEGISLATIVE PROPOSAL BE SUBMITTED.

    (a) In General.--Within 6 months after the date of enactment of 
this Act, the Office of Personnel Management shall submit to Congress 
proposed legislation under which there would be made available to 
Federal employees and annuitants the following:
            (1) Group universal life insurance.
            (2) Group variable universal life insurance.
            (3) Additional voluntary accidental death and dismemberment 
        insurance.
The proposal shall indicate whether any such insurance could be taken 
in addition to, in lieu of, or in combination with any insurance 
otherwise offered under chapter 87 of title 5, United States Code.
    (b) Description of Policies and Costs.--The proposed legislation 
shall be accompanied by a report which shall include a concise 
description of the policies proposed, an estimate of the cost to the 
Government anticipated with respect to each of those policies, and any 
other information which the Office of Personnel Management may consider 
appropriate.

SEC. 3. UNREDUCED ADDITIONAL OPTIONAL LIFE INSURANCE.

    (a) In General.--Section 8714b of title 5, United States Code, is 
amended--
            (1) in subsection (c)--
                    (A) by striking the last 2 sentences of paragraph 
                (2); and
                    (B) by adding at the end the following:
    ``(3) The amount of additional optional insurance continued under 
paragraph (2) shall be continued, with or without reduction, in 
accordance with the employee's written election at the time eligibility 
to continue insurance during retirement or receipt of compensation 
arises, as follows:
            ``(A) The employee may elect to have withholdings cease in 
        accordance with subsection (d), in which case--
                    ``(i) the amount of additional optional insurance 
                continued under paragraph (2) shall be reduced each 
                month by 2 percent effective at the beginning of the 
                second calendar month after the date the employee 
                becomes 65 years of age and is retired or is in receipt 
                of compensation; and
                    ``(ii) the reduction under clause (i) shall 
                continue for 50 months at which time the insurance 
                shall stop.
            ``(B) The employee may, instead of the option under 
        subparagraph (A), elect to have the full cost of additional 
        optional insurance continue to be withheld from such employee's 
        annuity or compensation on and after the date such withholdings 
        would otherwise cease pursuant to an election under 
        subparagraph (A), in which case the amount of additional 
        optional insurance continued under paragraph (2) shall not be 
        reduced, subject to paragraph (4).
            ``(C) An employee who does not make any election under the 
        preceding provisions of this paragraph shall be treated as if 
        such employee had made an election under subparagraph (A).
    ``(4) If an employee makes an election under paragraph (3)(B), that 
individual may subsequently cancel such election, in which case 
additional optional insurance shall be determined as if the individual 
had originally made an election under paragraph (3)(A).''; and
            (2) in the second sentence of subsection (d)(1) by 
        inserting ``if insurance is continued as provided in 
        subparagraph (A) of paragraph (3),'' after ``except that,''.
    (b) Technical Amendment.--The last sentence of section 8714b(d)(1) 
of title 5, United States Code, is amended by inserting ``(and any 
amounts withheld as provided in subsection (c)(3)(B))'' after ``Amounts 
so withheld''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the 120th day after the date of enactment of this Act and 
shall apply with respect to employees who become eligible, on or after 
such 120th day, to continue additional optional insurance during 
retirement or receipt of compensation.

SEC. 4. IMPROVED OPTIONAL LIFE INSURANCE ON FAMILY MEMBERS.

    (a) In General.--Subsection (b) of section 8714c of title 5, United 
States Code, is amended to read as follows:
    ``(b) The optional life insurance on family members provided under 
this section shall be made available to each eligible employee who has 
elected coverage under this section, under conditions the Office shall 
prescribe, in multiples, at the employee's election, of 1, 2, 3, 4, or 
5 times--
            ``(1) $5,000 for a spouse; and
            ``(2) $2,500 for each child described in section 8701(d).
An employee may reduce or stop coverage elected pursuant to this 
section at any time.''.
    (b) Technical and Conforming Amendments.--Section 8714c of title 5, 
United States Code, is amended--
            (1) in subsection (c)(2) by striking ``section 8714b(c)(2) 
        of this title'' and inserting ``section 8714b(c)(2)-(4)''; and
            (2) in subsection (d)(1) by inserting before the last 
        sentence the following: ``Notwithstanding the preceding 
        sentence, the full cost shall be continued after the calendar 
        month in which the former employee becomes 65 years of age if, 
        and for so long as, an election under this section 
        corresponding to that described in section 8714b(c)(3)(B) 
        remains in effect with respect to such former employee.''.
    (c) Effective Date; Open Enrollment Period.--
            (1) Effective date.--The amendments made by this section 
        shall take effect on the first day of the first pay period 
        which begins on or after the 180th day following the date of 
        enactment of this Act or on any earlier date that the Office of 
        Personnel Management may prescribe.
            (2) Open enrollment period.--
                    (A) In general.--Before the effective date under 
                paragraph (1), the Office shall afford eligible 
                employees a reasonable opportunity to elect to begin 
                coverage under section 8714c of title 5, United States 
                Code (as amended by this section), or to increase any 
                existing optional life insurance on family members to 
                any amount allowable under such section (as so 
                amended), beginning on such effective date.
                    (B) Definition of an eligible employee.--For 
                purposes of subparagraph (A), the term ``eligible 
                employee'' means any employee (within the meaning of 
                section 8701 of title 5, United States Code) covered by 
                group life insurance under section 8704(a) of such 
                title.

            Passed the House of Representatives November 4, 1997.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.