[Federal Register Volume 61, Number 245 (Thursday, December 19, 1996)]
[Proposed Rules]
[Pages 66948-66949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32135]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 61, No. 245 / Thursday, December 19, 1996 / 
Proposed Rules  

[[Page 66948]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 831

RIN 3206-AH66


Administration and General Provisions--Administration

AGENCY: Office of Personnel Management.

ACTION: Proposed rule.

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SUMMARY: The Office of Personnel Management (OPM) is proposing to amend 
its regulations concerning the adjudication of claims arising under the 
Civil Service Retirement System (CSRS). This amendment would provide 
that OPM may initially issue decisions that provide the opportunity to 
appeal directly to the Merit Systems Protection Board (MSPB) without 
having to request OPM to review its initial decision. The amendment 
will streamline processing of claims under the CSRS and bring OPM's 
CSRS regulations into conformity with its Federal Employees Retirement 
System (FERS) regulations.

DATES: Comments must be received on or before February 18, 1997.

ADDRESSES: Send comments to John E. Landers, Chief, Retirement Policy 
Division; Retirement and Insurance Service; 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:
Kenneth R. Brown, (202) 606-0299.

SUPPLEMENTARY INFORMATION: Currently, section 839.109 of Title 5, Code 
of Federal Regulations establishes a procedure under which individuals 
whose rights or interests under CSRS are affected by an initial 
decision of OPM generally must request that OPM reconsider its decision 
if they think OPM's initial decision is wrong, before they may seek 
review outside OPM. After receiving a reconsideration request, OPM 
renders a final decision that contains notice of the right of the 
individual to file an appeal with MSPB. Only if a decision is rendered 
at the highest level of review available in OPM may the individual seek 
MSPB review without first obtaining an OPM reconsideration decision.
    The reconsideration process sometimes imposes a needless 
administrative burden on both the individual and OPM, particularly when 
the facts of the case are not in dispute. When all relevant evidence 
and facts have already been considered by OPM in its initial decision, 
reconsideration is redundant, increases OPM's administrative and 
processing costs and needlessly delays the claimant's opportunity to 
appeal OPM's decision to MSPB.
    To streamline our processing of disputed cases under CSRS, these 
proposed regulations would bring CSRS regulations into conformity with 
FERS regulations at 5 CFR 841.307. Under the FERS process, whenever OPM 
determines that issuance of both an initial and reconsideration 
decision would be redundant, OPM issues a final decision without the 
reconsideration process. The final decision fully sets forth OPM's 
findings and conclusions and contains notice of the right to file an 
appeal with MSPB. MSPB regulations require de novo review of the OPM 
decision and provide claimants with a right to a hearing before an 
administrative judge. Our processing under the proposed regulations may 
be illustrated with the following example. If official records show 
that a person claiming an annuity has less than the 5 years of service 
required by law, and the person does not dispute the accuracy of the 
records, OPM will disallow the claim without a reconsideration right at 
OPM, but rather with a notice of MSPB appeal rights. On the other hand, 
if the person believes that the official record of his or her service 
is incomplete and wishes to submit secondary evidence to prove that he 
or she actually performed the necessary 5 years of service, OPM would 
issue an initial decision with a statement of reconsideration rights at 
OPM before issuing a final decision.

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 Part 831

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

Office of Personnel Management.
James B. King,
Director.

    Accordingly, OPM proposes to amend title 5, Code of Federal 
Regulations, as follows:

PART 831--RETIREMENT

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

    Authority: 5 U.S.C. 8347; Sec. 831.102 also issued under 5 
U.S.C. 8334; Sec. 831.106 also issued under 5 U.S.C. 552a; 
Sec. 831.108 also issued under 5 U.S.C. 8336(d)(2); 
Sec. 831.201(b)(6) also issued under 5 U.S.C. 7701(b)(2); 
Sec. 831.204 also issued under section 7202(m)(2) of the Omnibus 
Budget Reconciliation Act of 1990, Pub. L. 105-508, 104 Stat. 1388-
339; Sec. 831.303 also issued under 5 U.S.C. 8334(d)(2); 
Sec. 831.502 also issued under 5 U.S.C. 8337; Sec. 831.502 also 
issued under section 1(3), E.O. 11228, 3 CFR 1964-1965 Comp.; 
Sec. 831.621 also issued under section 201(d) of the Federal 
Employees Benefits Improvement Act of 1986, Pub. L. 99-251, 100 
Stat. 23; subpart S also issued under 5 U.S.C. 8345(k); subpart V 
also issued under 5 U.S.C. 8343a and section 6001 of the Omnibus 
Budget Reconciliation Act of 1987, Pub. L. 100-203, 101 Stat. 1330-
275; Sec. 831.2203 also issued under section 7001(a)(4) of the 
Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508; 104 
Stat. 1388-328.

 Subpart A--Administration and General Provisions

    2. In Sec. 831.109, paragraph (c) the last sentence is removed, the 
text in paragraph (f) after the heading ``Final decision.'', is 
redesignated as paragraph (f)(1) and paragraph (f)(2) is added to read 
as follows:


Sec. 831.109  Initial decision and reconsideration.

* * * * *
    (f) * * *
    (2) OPM may issue a final decision providing the opportunity to 
appeal

[[Page 66949]]

under Sec. 831.110 rather than an opportunity to request 
reconsideration under paragraph (c) of this section. Such a decision 
must be in writing and state the right to appeal under Sec. 831.110.
* * * * *
[FR Doc. 96-32135 Filed 12-18-96; 8:45 am]
BILLING CODE 6325-01-M