[Federal Register Volume 59, Number 51 (Wednesday, March 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6046]


  Federal Register / Vol. 59, No. 51 / Wednesday, March 16, 1994 /
  
[[Page Unknown]]

[Federal Register: March 16, 1994]


                                                    VOL. 59, NO. 51

                                          Wednesday, March 16, 1994
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OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 831, 838, 842, and 890

RIN 3206-AF66

 

Payment of Survivor Deposits by Actuarial Reduction

AGENCY: Office of Personnel Management.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Office of Personnel Management (OPM) is adopting its 
interim regulations to implement section 11004 of the Omnibus Budget 
Reconciliation Act of 1993 as final. The Act requires OPM to reduce a 
retiree's annuity instead of collecting a deposit when the retiree 
marries during retirement and elects to provide a survivor annuity for 
the new spouse. These regulations comply with the requirement that OPM 
establish, by regulation, the method for computing the reduction on an 
actuarial basis. These regulations also reorganize OPM's survivor 
elections and survivor annuity regulations for the Civil Service 
Retirement System to group together sections on similar subjects and 
provide a more detailed table of contents to make the regulations 
easier to use.

EFFECTIVE DATE: April 15, 1994.

FOR FURTHER INFORMATION CONTACT:
Harold L. Siegelman, (202) 606-0299.

SUPPLEMENTARY INFORMATION: On October 13, 1993, we published (at 58 FR 
56877) interim regulations concerning survivor elections under the 
Civil Service Retirement System (CSRS) and the Federal Employees 
Retirement System (FERS) and survivor annuities under CSRS. The interim 
regulations implemented the statutory change in the way we collect 
survivor election deposits for post-retirement marriage. The interim 
regulations also reorganized subpart F of our CSRS regulations to make 
it easier to use. We also requested comments on the interim 
regulations. We received no comments.
    Under section 11004 of the Omnibus Budget Reconciliation Act of 
1993, Public Law 103-66, effective October 1, 1993, OPM will no longer 
collect these deposits in either a lump sum or by installments. 
Instead, OPM is now required to establish a permanent actuarial 
reduction in the annuity of the retiree. This means that OPM must take 
the amount of the deposit computed under the old law, and ``translate'' 
it into a lifetime reduction in the retiree's benefit. The reduction is 
based on actuarial tables, similar to those used for alternative forms 
of annuity under sections 8343a and 8420a of title 5, United States 
Code.
    The following three charts contain the present value factors that 
will apply beginning on the first day of the month beginning on or 
after the effective date of the final regulations. These present value 
factors have been revised to reflect the new economic assumption 
adopted by the Board of Actuaries of the Civil Service Retirement and 
Disability Fund. On September 21, 1993, we published (at 58 FR 49066) 
the new economic assumption as part of the notice of change in FERS 
normal cost percentage effective at the beginning of fiscal year 1995.

                       CSRS Present Value Factors                       
------------------------------------------------------------------------
                                                              Reduction 
                            Age                                 factor  
------------------------------------------------------------------------
40.........................................................        294.4
41.........................................................        290.0
42.........................................................        285.5
43.........................................................        280.8
44.........................................................        276.2
45.........................................................        270.4
46.........................................................        264.7
47.........................................................        259.2
48.........................................................        253.5
49.........................................................        247.2
50.........................................................        240.4
51.........................................................        235.0
52.........................................................        229.8
53.........................................................        224.4
54.........................................................        218.6
55.........................................................        212.6
56.........................................................        207.5
57.........................................................        202.4
58.........................................................        197.0
59.........................................................        192.3
60.........................................................        188.3
61.........................................................        182.9
62.........................................................        177.0
63.........................................................        171.9
64.........................................................        166.5
65.........................................................        161.1
66.........................................................        156.0
67.........................................................        150.7
68.........................................................        145.4
69.........................................................        140.2
70.........................................................        134.7
71.........................................................        129.4
72.........................................................        124.0
73.........................................................        118.8
74.........................................................        113.6
75.........................................................        108.5
76.........................................................        103.5
77.........................................................         98.7
78.........................................................         93.9
79.........................................................         89.4
80.........................................................         84.9
81.........................................................         80.5
82.........................................................         76.3
83.........................................................         72.3
84.........................................................         68.4
85.........................................................         64.7
86.........................................................         61.2
87.........................................................         57.9
88.........................................................         54.7
89.........................................................         51.8
90.........................................................         48.9
------------------------------------------------------------------------


            FERS Present Value Factors for Regular Employees            
------------------------------------------------------------------------
                                                              Reduction 
                            Age                                 factor  
------------------------------------------------------------------------
40.........................................................        169.2
41.........................................................        168.8
42.........................................................        168.4
43.........................................................        168.1
44.........................................................        167.7
45.........................................................        166.9
46.........................................................        166.1
47.........................................................        165.4
48.........................................................        164.7
49.........................................................        163.7
50.........................................................        162.4
51.........................................................        161.9
52.........................................................        161.6
53.........................................................        161.2
54.........................................................        160.6
55.........................................................        160.0
56.........................................................        160.0
57.........................................................        160.2
58.........................................................        160.4
59.........................................................        161.2
60.........................................................        162.7
61.........................................................        163.5
62.........................................................        161.3
63.........................................................        157.1
64.........................................................        152.5
65.........................................................        148.0
66.........................................................        143.6
67.........................................................        139.1
68.........................................................        134.6
69.........................................................        130.1
70.........................................................        125.4
71.........................................................        120.7
72.........................................................        116.0
73.........................................................        111.4
74.........................................................        106.8
75.........................................................        102.2
76.........................................................         97.8
77.........................................................         93.5
78.........................................................         89.2
79.........................................................         85.0
80.........................................................         80.9
81.........................................................         77.0
82.........................................................         73.1
83.........................................................         69.4
84.........................................................         65.8
85.........................................................         62.4
86.........................................................         59.1
87.........................................................         56.0
88.........................................................         53.0
89.........................................................         50.2
90.........................................................         47.5
------------------------------------------------------------------------


 FERS Present Value Factors for Law Enforcement Officers, Firefighters, 
  Air Traffic Controllers, and Military Reserve Technicians Who Retire  
             Under 5 U.S.C. 8414(c) by Reason of Disability             
------------------------------------------------------------------------
                                                              Reduction 
                            Age                                 factor  
------------------------------------------------------------------------
40.........................................................        245.2
41.........................................................        241.9
42.........................................................        238.5
43.........................................................        235.0
44.........................................................        231.5
45.........................................................        227.9
46.........................................................        224.2
47.........................................................        220.3
48.........................................................        216.5
49.........................................................        212.6
50.........................................................        208.6
51.........................................................        204.5
52.........................................................        200.3
53.........................................................        196.1
54.........................................................        191.8
55.........................................................        187.4
56.........................................................        183.1
57.........................................................        178.6
58.........................................................        174.2
59.........................................................        169.7
60.........................................................        165.1
61.........................................................        160.4
------------------------------------------------------------------------
(Age 62 and over, see table for regular employees.)                     

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities because the regulation 
will only affect Federal employees and agencies and retirement payments 
to retired Government employees and their survivors.

List of Subjects

5 CFR Parts 831 and 842

    Administrative practice and procedure, Air traffic controllers, 
Claims, Disability benefits, Firefighters, Government employees, Income 
taxes, Intergovernmental relations, Law enforcement officers, Pensions, 
Reporting and recordkeeping requirements, Retirement.

5 CFR Part 838

    Administrative practice and procedure, Claims, Disability benefits, 
Government employees, Income taxes, Pensions, Retirement, Courts.

5 CFR Part 890

    Administrative practice and procedure, Government employees, Health 
facilities, Health insurance, Health professionals, Hostages, Reporting 
and recordkeeping requirements, Retirement.

U.S. Office of Personnel Management.
Lorraine A. Green,
Deputy Director.
    Accordingly, under authority of 5 U.S.C. 8347, 8461, and 8913, OPM 
is adopting its interim rules amending 5 CFR parts 831, 838, 842, and 
890 published on October 13, 1993, at 58 FR 56877, as final rules 
without change.

[FR Doc. 94-6046 Filed 3-15-94; 8:45 am]
BILLING CODE 6325-01-M