[Congressional Record Volume 141, Number 189 (Wednesday, November 29, 1995)]
[Extensions of Remarks]
[Pages E2258-E2259]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   DEPENDENTS WITH DISABILITIES FEDERAL LIFE INSURANCE PROTECTION ACT

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                       HON. CONSTANCE A. MORELLA

                              of maryland

                    in the house of representatives

                      Wednesday, November 29, 1995

  Mrs. MORELLA. Mr. Speaker, today, I am introducing the Dependents 
With Disabilities Federal Life Insurance Protection Act of 1995. The 
bill would permit a Federal retiree over the age of 65 to continue 
additional optional life insurance coverage when the beneficiary is a 
person with a disability. In this case, the disability would have to be 
one which could be expected to last permanently and would prevent an 
individual from fully providing for himself/herself. The retiree would 
also be responsible for the total premium, limiting the cost to the 
Government.
  Currently, Federal workers can continue the additional optional life 
insurance coverage, irrespective of age. However, when these 
individuals reach age 65 and are retired, the insurance is reduced and 
then subsequently stopped. There have been cases in which Federal 
workers have continued working beyond the normal retirement age in an 
effort to continue this coverage for their dependents with severe 
disabilities.
  Without a provision for a dependent with a disability, upon the 
retiree's death, the dependent would become a public responsibility, 
with potential budgetary implications at the national, State, and local 
levels. This provision would be consistent with the thrust of the 1990 
Americans With Disabilities Act [ADA]. The act 

[[Page E 2259]]
encourages persons with disabilities to live in a setting of maximum 
independence--financially and socially--rather than being relegated to 
functioning in institutional settings subsidized with public funds.
  This bill will help many persons with disabilities continue to have a 
quality life and will give peace of mind to thousands of Federal 
retirees, who have dependents with disabilities.
  The following are key components of the bill:
  The bill amends title 5 to provide that the reduction in additional 
optional life insurance for Federal retirees shall not apply if the 
beneficiary is permanently disabled;
  The retiree must have designated the person with the disability as 
the beneficiary prior to retirement;
  The payment received can only be used for the care and support of the 
beneficiary;
  The disability of the beneficiary must be one that is expected to 
last permanently and that would prevent an individual from fully 
providing for himself/herself;
  The retiree is responsible for the full premium;
  A payment to the beneficiary will be reduced by the amount of any 
premiums not paid due to current law;
  The Office of Personnel Management will have 1 year from the date of 
enactment to issue regulations; and
  An individual who retired 50 months prior to the enactment of the law 
can have the additional optional life insurance reinstated at the full 
percentage.

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