[House Report 105-134]
[From the U.S. Government Publishing Office]
105th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 105-134
_______________________________________________________________________
FEGLI DOMESTIC RELATIONS ORDERS
_______
June 18, 1997.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______________________________________________________________________
Mr. Burton of Indiana, from the Committee on Government Reform and
Oversight, submitted the following
R E P O R T
[To accompany H.R. 1316]
[Including cost estimate of the Congressional Budget Office]
The Committee on Government Reform and Oversight, to whom
was referred the bill (H.R. 1316) to amend chapter 87 of title
5, United States Code, with respect to the order of precedence
to be applied in the payment of life insurance benefits, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
CONTENTS
I. Background and need for The Legislation..........................2
II. Legislative Hearings and Committee Actions.......................3
III. Committee Hearings and Written Testimony.........................3
IV. Explanation of the Bill..........................................3
V. Compliance with Rule XI..........................................3
VI. Budget Analysis and Projections..................................3
VII. Cost Estimate of the Congressional Budget Office.................4
VIII.Specific Constitutional Authority................................4
IX. Changes in Existing Law..........................................4
X. Committee Recommendation.........................................6
XI. Congressional Accountability Act; Public Law 104-1...............6
XII. Federal Advisory Committee Act (5 U.S.C. App.) Section 5(b)......6
XIII.Unfunded Mandates Reform Act; Public Law 104-4, Section 423......6
The amendment is as follows:
Strike out all after the enacting clause and insert in
lieu thereof the following:
SECTION 1. DOMESTIC RELATIONS ORDERS.
Section 8705 of title 5, United States Code, is amended--
(1) in subsection (a) by striking ``(a) The'' and inserting
``(a) Except as provided in subsection (e), the''; and
(2) by adding at the end the following:
``(e)(1) Any amount which would otherwise be paid to a person
determined under the order of precedence named by subsection (a) shall
be paid (in whole or in part) by the Office to another person if and to
the extent expressly provided for in the terms of any court decree of
divorce, annulment, or legal separation, or the terms of any court
order or court-approved property settlement agreement incident to any
court decree of divorce, annulment, or legal separation.
``(2) For purposes of this subsection, a decree, order, or agreement
referred to in paragraph (1) shall not be effective unless it is
received, before the date of the covered employee's death, by the
employing agency or, if the employee has separated from service, by the
Office.
``(3) A designation under this subsection with respect to any person
may not be changed except--
``(A) with the written consent of such person, if received as
described in paragraph (2); or
``(B) by modification of the decree, order, or agreement, as
the case may be, if received as described in paragraph (2).
``(4) The Office shall prescribe any regulations necessary to carry
out this subsection, including regulations for the application of this
subsection in the event that 2 or more decrees, orders, or agreements,
are received with respect to the same amount.''.
SEC. 2. DIRECTED ASSIGNMENT.
Section 8706(e) of title 5, United States Code, is amended--
(1) by striking ``(e)'' and inserting ``(e)(1)''; and
(2) by adding at the end the following:
``(2) A court decree of divorce, annulment, or legal separation, or
the terms of a court-approved property settlement agreement incident to
any court decree of divorce, annulment, or legal separation, may direct
that an insured employee or former employee make an irrevocable
assignment of the employee's or former employee's incidents of
ownership in insurance under this chapter (if there is no previous
assignment) to the person specified in the court order or court-
approved property settlement agreement.''.
Short Summary of Legislation
H.R. 1316, as amended by the Committee, amends 5 U.S.C.
Sec. Sec. 8705 and 8706. It directs the Office of Personnel
Management (OPM) to obey certain domestic relations orders when
paying the proceeds of life insurance policies under the
Federal Employees Group Life Insurance program (FEGLI) and
permits courts to direct the assignment of such policies to
individuals specified in domestic relations orders.
I. Background and Need for the Legislation
H.R. 1316 was introduced by Mr. Collins of Georgia to
address an inequity in the Federal Employees Group Life
Insurance program (FEGLI). Under current law, domestic
relations orders, such as divorce decrees, or property
settlement agreements do not affect the payment of life
insurance proceeds. Instead, when the policyholder dies, the
proceeds are paid to the beneficiary designated by the
policyholder, if any, or to other individuals as specified by
statute. This is required by 5 U.S.C. Sec. 8705.
H.R. 1316 requires OPM to pay the proceeds in accordance
with certain domestic relations orders or property settlements.
This is similar to the law's treatment of retirement annuities,
which OPM must allocate in accordance with divorce decrees.
Because an employee could still frustrate the court order
by terminating the policy, the bill was amended in committee to
allow courts to direct the employee to assign the policy to a
specific individual.
II. Legislative Hearings and Committee Actions
H.R. 1316 was introduced on April 14, 1997 by the Honorable
Mac Collins (R-GA). The bill was referred to the Committee on
Government Reform and Oversight on April 14, 1997, and it was
referred to the Subcommittee on Civil Service on April 15,
1997. The Subcommittee held a mark up on June 10, 1997. No
amendments were offered, and the measure was ordered favorably
reported to the full Committee by a voice vote. On June 11,
1997, the Committee on Government Reform and Oversight met to
consider the bill. Representative Mica offered an amendment,
which was approved by voice vote. Under this amendment,
employees may be required to irrevocably assign FEGLI policies
to an individual specified in a domestic relations order or
court-approved property settlement agreement. The policy cannot
be terminated by the employee. The Committee favorably reported
the bill, as amended, to the full House by voice vote.
III. Committee Hearings and Written Testimony
The committee held no hearings and received no written
testimony.
IV. Explanation of the Bill as Reported: Section-by-Section Analysis
Section 1. This section amends 5 U.S.C. Sec. 8705 to direct
OPM to pay the proceeds of group life and group accidental
death insurance under the Federal Employees Group Life
Insurance (FEGLI) program in accordance with divorce decrees,
other domestic relations orders, and court-approved property
settlement agreements. To be effective, the order or agreement
must be received before the death of the employee or former by
the employing agency or, in the case of a former employee, the
Office of Personnel Management.
Section 2. This section amends 5 U.S.C. Sec. 8706 to permit
courts to order employees or former employees to irrevocably
assign a FEGLI policy to a person specified in a domestic
relations order or court-approved property settlement
agreement.
V. Compliance With Rule XI
Pursuant to rule XI, clause 2(l)(3) of the Rules of the
House of Representatives, under the authority of rule X, clause
2(b)(1) and clause 3(f), the results and findings from
committee oversight activities are incorporated in the bill and
this report.
VI. Budget Analysis and Projections
H.R. 1316, as amended, provides for no new authorization,
budget authority, or tax expenditures. Consequently, the
provisions of section 308(a) of the Congressional Budget Act
are not applicable.
VII. Cost Estimate of the Congressional Budget Office
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 18, 1997.
Hon. Dan Burton,
Chairman, Committee on Government Reform and Oversight,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget office has
prepared the enclosed cost estimate for H.R. 1316, a bill to
modify the procedures for determining the beneficiary of
federal life insurance payments.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Paul
Cullinan.
Sincerely,
Paul Van deWater
(For June E. O'Neill).
H.R. 1316--A bill to amend chapter 87 of title 5, United States Code,
with respect to the order of precedence to be applied in the
payment of life insurance benefits
CBO estimates that enacting this bill would have no effect
on the federal budget. Because the bill would not affect direct
spending or receipts, pay-as-you-go procedures would not apply.
H.R. 1316 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act of 1995
and would not affect the budgets of state, local, or tribal
governments.
The bill would modify the order of precedence used in the
Federal Employee Government Life Insurance program in
determining who should receive benefit payments. Under current
law, the designated beneficiary of the employee's policy has
the first opportunity for receiving the payments, regardless of
that individual's relationship to the insured party at the time
of the employee's death. H.R. 1316 would change the precedence
if there existed a court decree of divorce, annulment, or legal
separation or a court order or court-approved property
settlement agreement incident to any court decree of divorce,
annulment, or separation that expressly provides for another
individual to receive the payments. Such decrees or agreements
would effect a change in precedence only if filed with the
employee's agency or the Office of Personnel Management before
the insured's death.
The CBO staff contact for this estimate is Paul Cullinan,
who can be reached at 226-2820. This estimate was approved by
Paul N. Van de Water, Assistant Director for Budget Analysis.
VIII. Specific Constitutional Authority for This Legislation
Clauses 1 and 18 of Article 1, Sec. 8 of the Constitution
grant Congress the power to enact this law.
IX. Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3 of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
CHAPTER 87 OF TITLE 5, UNITED STATES CODE
CHAPTER 87--LIFE INSURANCE
* * * * * * *
Sec. 8705. Death claims; order of precedence; escheat
[(a) The] (a) Except as provided in subsection (e), the
amount of group life insurance and group accidental death
insurance in force on an employee at the date of his death
shall be paid, on the establishment of a valid claim, to the
person or persons surviving at the date of his death, in the
following order of precedence:
* * * * * * *
(e)(1) Any amount which would otherwise be paid to a person
determined under the order of precedence named by subsection
(a) shall be paid (in whole or in part) by the Office to
another person if and to the extent expressly provided for in
the terms of any court decree of divorce, annulment, or legal
separation, or the terms of any court order or court-approved
property settlement agreement incident to any court decree of
divorce, annulment, or legal separation.
(2) For purposes of this subsection, a decree, order, or
agreement referred to in paragraph (1) shall not be effective
unless it is received, before the date of the covered
employee's death, by the employing agency or, if the employee
has separated from service, by the Office.
(3) A designation under this subsection with respect to any
person may not be changed except--
(A) with the written consent of such person, if
received as described in paragraph (2); or
(B) by modification of the decree, order, or
agreement, as the case may be, if received as described
in paragraph (2).
(4) The Office shall prescribe any regulations necessary to
carry out this subsection, including regulations for the
application of this subsection in the event that 2 or more
decrees, orders, or agreements, are received with respect to
the same amount.
Sec. 8706. Termination of insurance; assignment of ownership
(a) * * *
* * * * * * *
(e)(1) Under regulations prescribed by the Office, each
policy purchased under this chapter shall provide that an
insured employee or former employee may make an irrevocable
assignment of the employee's or former employee's incidents of
ownership in the policy.
(2) A court decree of divorce, annulment, or legal
separation, or the terms of a court-approved property
settlement agreement incident to any court decree of divorce,
annulment, or legal separation, may direct that an insured
employee or former employee make an irrevocable assignment of
the employee's or former employee's incidents of ownership in
insurance under this chapter (if there is no previous
assignment) to the person specified in the court order or
court-approved property settlement agreement.
* * * * * * *
X. Committee Recommendation
On June 11, 1997, a quorum being present, the Committee
ordered the bill, as amended, favorably reported.
Committee on Government Reform and Oversight--104th Congress Rollcall
Date: June 11, 1997.
Final Passage of H.R. 1316, as amended.
Offered by: Hon. John L. Mica (R-FL).
Voice Vote: yea.
XI. Congressional Accountability Act; Public Law 104-1; Section
102(B)(3)
The amendments made by H.R. 1316 will apply to employees
and former employees of the legislative branch who participate
in the Federal Employees Group Life Insurance program to the
same extent as it applies to other participating employees.
XII. Federal Advisory Committee Act (5 U.S.C. App.), Section 5(b)
The Committee finds that section 5(b) of Title 5 App.,
United States Code, is not applicable because this legislation
does not authorize the establishment of any advisory committee.
XIII. Unfunded Mandates Reform Act; Public Law 104-4, Section 423
The Committee finds that the legislation does not impose
any Federal mandates within the meaning of section 423 of the
Unfunded Mandates Reform Act (PL 104-4).