I 111th CONGRESS 2d Session H. R. 6175 IN THE HOUSE OF REPRESENTATIVES September 22, 2010 Mr. Connolly of Virginia introduced the following bill; which was referred to the Committee on Oversight and Government Reform A BILL To amend title 5, United States Code, to provide that payments under the Federal Employees’ Group Life Insurance program shall be made in a lump sum, unless the insured or the beneficiary elects otherwise.

1.

Short title

This Act may be cited as the Federal Life Insurance Transparency Act.

2.

Payment of claims

(a)

In general

Section 8705 of title 5, United States Code, is amended by adding at the end the following: (f)(1)The employee may elect settlement of insurance under this chapter either in a lump sum or by such alternative form of payment as the Office may (in addition to a lump-sum payment) provide for. (2)(A)If the employee does not make such an election, the beneficiary or beneficiaries may elect settlement by any form of payment that was available to the employee under paragraph (1). (B)If the employee does make such an election, the beneficiary or beneficiaries may elect settlement by any other form of payment that was available to the employee under paragraph (1). (3)An election under paragraph (1) or (2) shall not be effective unless it is submitted to the Office, in writing, in such form and manner as the Office prescribes. (4)If no election is made under this subsection, the settlement shall be made in the form of a lump-sum payment. . (b)

Effective date

The amendment made by subsection (a) shall apply in the case of any employee who first becomes insured under chapter 87 of title 5, United States Code, in any calendar year beginning at least 3 months after the date of the enactment of this Act. For purposes of the preceding sentence, the term employee has the meaning given such term under section 8701 of such title.