[Federal Register Volume 59, Number 156 (Monday, August 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19811]


[[Page Unknown]]

[Federal Register: August 15, 1994]


                                                   VOL. 59, NO. 156

                                            Monday, August 15, 1994

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 831 and 842

RIN 3206-AG10

 

Termination of Survivor Annuity Entitlement Based on Remarriage 
Before Age 55

AGENCY: Office of Personnel Management.

ACTION: Proposed rule.

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SUMMARY: The Office of Personnel Management (OPM) is proposing 
regulations concerning survivor annuity entitlement under the Civil 
Service Retirement System and Federal Employees Retirement System. The 
regulations would facilitate qualification for a current spouse 
survivor annuity in certain cases involving a former spouse's 
remarriage to a retiree. The regulations would also limit the scope of 
the current regulations prohibiting reinstatement of a former spouse 
survivor annuity after an annulment. The regulations are necessary to 
implement the basic purpose of the statute.

DATES: Comments must be received on or before October 14, 1994.

ADDRESSES: Send comments to Reginald M. Jones, Jr., Assistant Director 
for Retirement Policy Development; Retirement and Insurance Group; 
Office of Personnel Management; P.O. Box 57; Washington, DC 20044; or 
deliver to OPM, Room 4351, 1900 E Street, NW., Washington, DC.

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

SUPPLEMENTARY INFORMATION: Under sections 8341(h)(3)(B) and 8445(c)(2) 
of title 5, United States Code, a former spouse's survivor annuity 
entitlement terminates if the former spouse remarries before age 55. In 
a recent case, a retiree's former spouse was eligible for a survivor 
annuity, but she remarried the retiree before she reached age 55. They 
remarried to make sure the former spouse would get a survivor annuity. 
The retiree died 1 month after the remarriage without notifying OPM and 
the survivor reduction in the retiree's annuity continued until his 
death. The retiree, assuming the remarriage would assure his wife's 
future, died without having filed a written election to provide a 
survivor annuity for her. (See 5 U.S.C. 8339(j)(5)(B) and 
8419(b)(2)(C). In our adjudication of this case, we decided to construe 
the statute so that the widow's pre-age 55 remarriage to the retiree 
under these circumstances does not disqualify her. To interpret the law 
to prevent her from receiving a survivor annuity would produce an 
unconscionable result that Congress never intended. Accordingly, we 
decided to issue regulations to adopt a more reasonable approach to 
this situation. Under these regulations, when a retiree remarries a 
former spouse who would be entitled, if not for the remarriage, to a 
former spouse survivor annuity based on the retiree's service, and the 
retiree takes no action to terminate the annuity reduction, we will 
deem the retiree to have elected to continue the reduction to provide a 
current spouse annuity under section 8339(j)(5)(B)(iii) or section 
8419(b)(2)(C) of title 5, United States Code. We will deem the election 
to have occurred whether the former spouse's entitlement was based on 
the retiree's election or on a court order. Of course, an election 
would not be deemed if the retiree, in writing, asks OPM to stop the 
reduction either before or after the remarriage.
    Also, with respect to remarriages of former spouses, the proposed 
regulations would clarify the scope of the current regulations 
concerning reinstatement of a former spouse survivor annuity 
entitlement after an annulment. Our current regulations provide that a 
former spouse's entitlement will not be reinstated even if it ended due 
to a remarriage that is later determined to be invalid and is annulled. 
This rule is based on the State's courts' treatment of remarriage for 
alimony purposes. Generally, the courts will not allow alimony to be 
reinstated when the remarriage is annulled because the payer of the 
alimony is allowed to rely on the act of remarriage (regardless of 
validity) to plan for the future without the alimony obligation. 
However, our alimony analogy is not appropriate when the former 
spouse's entitlement is not related to any reduction in the retiree's 
annuity. Section 4(b)(1)(B) and 4(b)(4) of the Civil Service Retirement 
Spouse Equity Act of 1984, as amended, provide survivor annuity 
benefits to former spouses who meet certain criteria, without requiring 
a reduction in a retiree's benefit. Accordingly, we are proposing to 
change section 831.644(d) of Title 5, Code of Federal Regulations, to 
allow reinstatement of entitlements based on section 4(b)(1)(B) and 
4(b)(4) of the Civil Service Retirement Spouse Equity Act of 1984, as 
amended, if the remarriage before age 55 is later found to be invalid 
from its inception. We would not reinstate the former spouse's 
entitlement following an annulment in any situation in which a 
reduction in the employee annuity is required to provide the former 
spouse survivor annuity.

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 agencies and retirement payments to retired 
Government employees, spouses, and former spouses.

List of Subjects in 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.

U.S. Office of Personnel Management.
Lorraine A. Green,
Deputy Director.

    Accordingly, OPM proposes to amend 5 CFR parts 831 and 842, as 
follows:

PART 831--RETIREMENT

    1. The authority citation for part 831 continues to read in part as 
follows:

    Authority: 5 U.S.C. 8347 * * *

Subpart F--Survivor Annuities

    2. In section 831.644, paragraph (d) is revised to read as follows:


Sec. 831.644  Remarriage.

* * * * *
    (d)(1) If present or future entitlement to a former spouse annuity 
is terminated because of remarriage before age 55, the entitlement will 
not be reinstated upon termination of the remarriage by death or 
divorce.
    (2) If present or future entitlement to a former spouse annuity is 
terminated because of remarriage before age 55, the entitlement will 
not be reinstated upon annulment of the remarriage unless--
    (i) The decree of annulment states that the marriage is without 
legal effect retroactively from the marriage's inception; and
    (ii) The former spouse's entitlement is based on section 4(b)(1)(B) 
or section 4(b)(4) of Pub. L. 98-615.
    (3) If a retiree who is receiving a reduced annuity to provide a 
former spouse annuity and who has remarried that former spouse (before 
the former spouse attained age 55) dies, the retiree will be deemed to 
have elected to continue the reduction to provide a current spouse 
annuity unless the retiree requests (or has requested) in writing that 
OPM terminate the reduction.

PART 842--FEDERAL EMPLOYEES RETIREMENT SYSTEM--BASIC ANNUITY

    3. The authority citation for part 842 continues to read as 
follows:

    Authority: 5 U.S.C. 8461(g); Sec. Sec. 842.104 and 842.106 also 
issued under 5 U.S.C. 8461(n); Sec. 842.105 also issued under 5 
U.S.C. 8402(c)(1) and 7701(b)(2); Sec. 842.106 also issued under 
section 7202(m)(2) of the Omnibus Budget Reconciliation Act of 1990, 
Pub. L. 101-508 and 5 U.S.C. 8402(c)(1); Sec. Sec. 842.604 and 
842.611 also issued under 5 U.S.C. 8417; Sec. 842.607 also issued 
under 5 U.S.C. 8416 and 8417; Sec. 842.614 also issued under 5 
U.S.C. 8419; Sec. 842.615 also issued under 5 U.S.C. 8418; 
Sec. 842.703 also issued under section 7001(a)(4) of the Omnibus 
Budget Reconciliation Act of 1990, Pub. L. 101-508; Sec. 842.707 
also issued under section 6001 of the Omnibus Budget Reconciliation 
Act of 1987, Pub. L. 100-203; Sec. 842.708 also issued under section 
4005 of the Omnibus Budget Reconciliation Act of 1989, Pub. L. 101-
239 and section 7001 of the Omnibus Budget Reconciliation Act of 
1990, Pub. L. 101-508; subpart H also issued under 5 U.S.C. 1104.

Subpart F--Survivor Elections

    4. In section 842.612, paragraph (h) is added to read as follows:


Sec. 842.612  Post-retirement election of a fully reduced annuity or 
one-half reduced annuity to provide a current spouse annuity.

* * * * *
    (h) If a retiree who is receiving a reduced annuity to provide a 
former spouse annuity and who has remarried that former spouse (before 
the former spouse attained age 55) dies, the retiree will be deemed to 
have elected to continue the reduction to provide a current spouse 
annuity unless the retiree requests (or has requested) in writing that 
OMP terminate the reduction.

[FR Doc. 94-19811 Filed 8-12-94; 8:45 am]
BILLING CODE 8625-01-M