[Congressional Record Volume 143, Number 152 (Tuesday, November 4, 1997)]
[House]
[Pages H9920-H9922]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            FEDERAL EMPLOYEES LIFE INSURANCE IMPROVEMENT ACT

  Mr. MICA. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 2675) 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, as 
amended.
  The Clerk read as follows:

                               H.R. 2675

       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.

                              {time}  1530

  The SPEAKER pro tempore (Mr. Kingston). Pursuant to the rule, the 
gentleman from Florida [Mr. Mica] and the gentleman from Maryland [Mr. 
Cummings], each will control 20 minutes.
  The Chair recognizes the gentleman from Florida [Mr. Mica].
  Mr. MICA. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the bill before the House today, entitled the Federal 
Employees Life Insurance Improvement Act, is in fact a bipartisan 
effort. It incorporates the provisions of the bill which I originally 
introduced and amendments offered by the distinguished gentleman from 
Maryland [Mr. Cummings], the ranking member of our Subcommittee on 
Civil Service.
  I thank the gentleman from Maryland for his hard work on this 
legislation and also for his close cooperation on putting this 
legislation together.
  The bill also addresses an issue first brought to our attention by 
the distinguished gentlewoman from Maryland [Mrs. Morella], and I also 
want to commend her for her interest and contributions to this bill.
  Mr. Speaker, employer-provided benefit packages are in fact critical 
elements of employee compensation in our society today. If the Federal 
Government is to deliver the quality of services our overburdened 
taxpayers deserve, it must be competitive with the private sector to 
attract and to maintain a quality work force. Benefits must provide 
good value to Federal employees.
  Mr. Speaker, earlier this year I held an oversight hearing on the 
Federal Employees Government Life Insurance

[[Page H9921]]

program. I called that hearing because I was concerned that the current 
program does not deliver the value Federal Government employees 
deserve. It has been in fact too many years since key parts of the life 
insurance program have been improved or in fact reviewed.
  More importantly, Congress has not even looked at the fundamental 
structure of the program since 1954. For 43 years, Mr. Speaker, the 
program has been based on term life insurance. For the first time in 43 
years, this bill would introduce a life insurance option other than 
term insurance for our Federal employees.
  Many things have changed between 1954 and today, Mr. Speaker. Life 
insurance products are no exception. As usual, the private sector has 
led the way. The Federal Government must learn from the private sector. 
We must adopt benefit practices from the private sector that have 
adjusted to the dynamic, ever-shifting market environments.
  At our hearing, the Subcommittee on Civil Service heard from 
interested private sector insurance experts. We also heard from Met 
Life, which has been the sole provider of life insurance under the 
program since 1954. All of these experts agreed that it is time for 
major improvements in the Federal Government's life insurance program. 
All of these experts agreed that, at the very least, Congress should 
increase coverages that are currently available. All of these experts 
agreed that Congress should consider providing a new option to 
employees, group universal life insurance.
  In a nutshell, Mr. Speaker, group universal life is a very flexible 
plan that permits employees to accumulate cash benefits for use in 
later years for various family needs or for their retirement. It has 
been gaining popularity in the private sector because it offers these 
many advantages.
  Insurance planning is important to many of our employees. Employees 
want and need to protect their families from financial hardship. Life 
insurance is an important component of that protection. My colleagues 
on the subcommittee agreed that our Federal employees in fact need more 
flexibility to tailor insurance coverage to their own needs. To better 
protect their families, Federal employees would be able to choose from 
options that are increasingly available to employees in the private 
sector such as group universal life.
  This bill does just that. It directs the Office of Personnel 
Management to present to Congress legislation offering our Federal 
employees group universal life insurance, group variable life 
insurance, and additional voluntary accidental and dismemberment 
insurance policies. In addition, Mr. Speaker, this bill permits 
employees to increase insurance coverage of family members and to 
maintain more adequate levels of coverage on themselves throughout 
their retirement years.
  Mr. Speaker, the hallmarks of this legislation are family protection, 
employee choice, and flexibility. Federal employees and their families 
will enjoy more options as they plan for their financial security. It 
is an important bill. It is important to our Federal employees. It is 
the first major improvement in life insurance benefits for our Federal 
employees in 16 years. It is the first time in 43 years that an 
alternative to term insurance is incorporated for the benefit of our 
Federal employees.
  I urge all Members to support this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CUMMINGS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I am very pleased that the gentleman from Florida, Mr. 
Mica, and I, along with all the other members of the Subcommittee on 
Civil Service were able to work together to develop this legislation 
which will implement some of the excellent recommendations we received 
from witnesses at our oversight hearing on the Federal Employees Group 
Life Insurance program, known as FEGLI. This bill will result in far 
better life insurance coverage being made available to Federal 
employees.
  By directing OPM to provide us with draft legislative proposals for 
group universal life, group variable life, and accidental death and 
dismemberment insurance coverage within 6 months, our subcommittee will 
be in a far better position to act expeditiously should OPM's upcoming 
employee survey document that there is substantial interest in 
purchasing these options.
  By giving enrollees the opportunity to continue the full extent of 
their life insurance coverage after they reach age 65, we will be 
providing a measure of comfort and convenience to many who would still 
have a desire to provide for the security of their loved ones. They 
will no longer have to seek out a new insurance company from which to 
purchase life insurance, something often very difficult and expensive 
to do at the late stage in life, at age 65.
  I offered an amendment to H.R. 2675 during our subcommittee's markup 
of the bill which added a provision that would enable enrollees to 
purchase an increased amount of insurance coverage for their spouse and 
dependent children. Through the cooperation of Mr. Mica and all the 
Members on both sides of the aisle, we were able to successfully pass 
this amendment.
  Clearly, the present levels of coverage available, $5,000 for one 
spouse and $2,500 for each child, is very inadequate. It neither 
compensates for the loss nor covers average burial expenses. The bill 
makes it possible to obtain coverage up to five times the current 
limits. The fact is that by doing what we have been able to do, I think 
it makes a very, very significant difference and it says to our Federal 
employees that we do care very much about them and their loved ones.
  To the gentleman from Florida, I express my appreciation, and to all 
the members of the committee, because it is a fact that we did work 
together in a bipartisan manner, and if we can continue to do that 
throughout this House, I think that we will see a lot of great 
legislation coming forward such as this legislation.
  Mr. Speaker, once again I believe that we have a good bipartisan bill 
before us. I strongly urge all Members to give their support. This is a 
very good piece of legislation. It does in fact lift up our Federal 
employees and make their lives better and the lives of their families. 
I urge all Members of the House to support this legislation.
  Mr. Speaker, I yield back the balance of my time.
  Mr. MICA. Mr. Speaker, I yield myself such time as I may consume.
  The Federal Employees Life Insurance Improvement Act will provide 
valuable benefits to our Federal workers and their families. For the 
first time since 1954, Federal employees will have the opportunity to 
consider something other than term insurance as a plan for their 
family's financial future and security. They will be able to carry more 
insurance on themselves into retirement, I believe at very reasonable 
and competitive costs, and they will be able to increase the coverage 
for their dependents. This also will provide substantial benefits for 
our Federal retirees, who sometimes are lost without insurance coverage 
or see decreasing or diminishing value of their insurance coverage.
  Finally, Mr. Speaker, I wish to thank both the Majority and Minority 
staff for their fine work on this legislation and for their efforts not 
only on this bill but also on the previous legislation which passed 
today.
  I wish to also thank Members and staff for their work on the 
Subcommittee on Civil Service. In the 103d Congress, I might add, for 
the record, there were 54 staff that handled Civil Service issues in a 
number of subcommittees. We have operated with one subcommittee and 
seven professional staffers on both sides of the aisle total, and 
worked on numerous pieces of legislation, including the two presented 
here today and nearly all the appropriations measures and other 
legislation to come before the House.
  I want to thank each of the staff members, members of my 
subcommittee, for their diligent participation and productive session 
as this may be the final bill we offer.
  This legislation, in fact, Mr. Speaker, as I mentioned earlier, is 
bipartisan legislation. There is no controversy surrounding it. I urge 
all Members to support it.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Kingston). The question is on the motion 
offered by the gentleman from Florida [Mr. Mica] that the House suspend 
the rules and pass the bill, H.R. 2675, as amended.

[[Page H9922]]

  The question was taken.
  Mr. CUMMINGS. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

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