[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.
____________________