[Federal Register Volume 63, Number 41 (Tuesday, March 3, 1998)]
[Rules and Regulations]
[Pages 10291-10293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5401]



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 Rules and Regulations
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  Federal Register / Vol. 63, No. 41 / Tuesday, March 3, 1998 / Rules 
and Regulations  

[[Page 10291]]


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OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 880

RIN 3206-AH75


Retirement and Insurance Benefits When an Annuitant Is Missing

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing 
regulations to establish a uniform standard that OPM will use in its 
administration of retirement and insurance benefits in cases in which 
an annuitant disappears. These regulations establish procedures to 
determine the status of the missing annuitant and allow OPM to provide 
benefits to the missing annuitant's dependents until the missing 
annuitant's status is resolved.

EFFECTIVE DATE: April 2, 1998.

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

SUPPLEMENTARY INFORMATION: On July 2, 1997, we published (at 62 FR 
35693) proposed regulations to establish OPM's procedures for making 
payments of annuity during a period when an annuitant is missing, and 
until the annuitant is either found or officially determined to have 
died. The regulations are aimed at providing continuing support to the 
family of a missing annuitant, while balancing the interest of the 
Government in protecting the retirement system from unwarranted 
disbursements. The regulations also provide procedures that OPM will 
follow to continue the family health insurance coverage of a missing 
annuitant, to restore retroactively the annuity of a missing annuitant 
who is found to be alive, and to authorize lump-sum death benefits, 
survivor health insurance coverage, and life insurance payments in the 
case of a missing annuitant's death. OPM received no comments on the 
proposed rule.
    The final regulations include two conforming changes resulting from 
recent consolidations of insurance regulations. On July 18, 1997, we 
published (at 62 FR 38433) final regulations that simplified and 
clarified the Federal Employees Health Benefits (FEHB) Program 
regulations concerning opportunities to enroll and make changes in 
enrollment. The reference to section 890.301(p) in Sec. 880.303(a) of 
the proposed regulations has been changed to section 890.306(r) to 
conform to the current numbering of the FEHB regulations.
    On September 17, 1997, we published final regulations to combine 
the five parts of Title 5 of the Code of Federal Regulations relating 
the Federal Employees Group Life Insurance (FEGLI) Program and to 
simplify the language of the regulations. The reference parts 870 
through 873 in section 880.102 of the proposed regulations has been 
changed to part 870 to conform to the current numbering of the FEGLI 
regulations.

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 retirement and insurance benefits of retired 
Government employees and their survivors.

List of Subjects in 5 CFR Parts 880

    Administrative practice and procedure, Government employees, Health 
insurance, Hostages, Life insurance, Pensions, Retirement.

U.S. Office of Personnel Management.
Janice R. Lachance,
Acting Director.

    Accordingly, OPM is amending 5 CFR by adding part 880 to read as 
follows:

PART 880--RETIREMENT AND INSURANCE BENEFITS DURING PERIODS OF 
UNEXPLAINED ABSENCE

Subpart A--General

Sec.
880.101  Purpose and scope.
880.102  Regulatory structure.
880.103  Definitions.

Subpart B--Procedures

880.201  Purpose and scope.
880.202  Referral to Associate Director.
880.203  Missing annuitant status and suspension of annuity.
880.204  Restoration of annuity.
880.205  Determinations of death.
880.206  Date of death.
880.207  Adjustment of accounts after finding of death.

Subpart C--Continuation of Benefits

880.301  Purpose.
880.302  Payments of CSRS or FERS benefits.
880.303  FEHBP coverage.
880.304  FEGLI coverage.

    Authority: 5 U.S.C. 8347(a), 8461(g), 8716, 8913.

Subpart A--General


Sec. 880.101  Purpose and scope.

    (a) The purpose of this part is to establish a uniform standard 
that OPM will use in its administration of benefits for CSRS, FERS, 
FEHBP and FEGLI in cases in which an annuitant becomes a missing 
annuitant.
    (b) This part establishes the procedures that OPM will follow to--
    (1) Determine--
    (i) Who is a missing annuitant,
    (ii) When a missing annuitant has died,
    (iii) When benefits will be paid in missing annuitant cases, and
    (iv) FEHBP coverage for family members of a missing annuitant; and
    (2) Make adjustments to CSRS and FERS benefit payments, FEHBP 
coverage and premiums, and FEGLI benefit payments and premiums after a 
determination that a missing annuitant is dead.
    (c) This part applies only to situations in which an individual who 
satisfies the statutory definition of an annuitant under section 
8331(9) or section 8401(2) of title 5, United States Code, disappears 
and has not been determined to be dead by an authorized institution. 
This part does not apply to--
    (1) An employee, regardless of whether the absence is covered by 
subchapter VII of chapter 55 of title 5, United States Code; or
    (2) A separated employee who either--
    (i) Does not meet the age and service requirements for an annuity, 
or
    (ii) Has not filed an application for annuity.

[[Page 10292]]

Sec. 880.102  Regulatory structure.

    (a) This part contains the following subparts:
    (1) Subpart A contains general information about this part and 
related subjects.
    (2) Subpart B establishes the procedures that OPM will follow in 
missing annuitant cases.
    (3) Subpart C establishes the methodologies that OPM will apply in 
determining continuations of coverage and amounts of payments in 
missing annuitant cases.
    (b) Part 831 of this chapter contains information about benefits 
under CSRS.
    (c) Part 838 of this chapter contains information about benefits 
available to former spouses under court orders.
    (d) Parts 841 through 844 of this chapter contain information about 
benefits under FERS.
    (e) Part 870 of this chapter contains information about benefits 
under FEGLI.
    (f) Part 890 of this chapter contains information about benefits 
under FEHBP.
    (g) Part 1200 of this title contains information about Merit 
Systems Protection Board review of OPM decisions affecting interests in 
CSRS or FERS benefits.
    (h) Part 1600 of this title contains information about benefits 
under the Thrift Savings Plan.


Sec. 880.103  Definitions.

    For purposes of this part--
    Annuitant means an individual who has separated from the Federal 
service with, and has retained, title to a CSRS or FERS annuity, has 
satisfied the age and service requirements for commencement of that 
annuity, and has filed an application for that annuity;
    Associate Director means OPM's Associate Director for Retirement 
and Insurance or his or her designee;
    Authorized institution means a government organization or official 
legally charged with making determinations of death in the State or 
country of the missing annuitant's domicile, citizenship, or 
disappearance;
    CSRS means the Civil Service Retirement System established in 
subchapter III of chapter 83 of title 5, United States Code;
    FEGLI means the Federal Employees Group Life Insurance program 
established in chapter 87 of title 5, United States Code;
    FEHBP means the Federal Employees Health Benefits Program 
established in chapter 89 of title 5, United States Code;
    FERS means the basic benefit portion of the Federal Employees 
Retirement System established in subchapters I, II, IV, V, and VI of 
chapter 84 of title 5, United States Code; FERS does not include 
benefits under the Thrift Savings Plan established under subchapters 
III and VII of chapter 84 of title 5, United States Code;
    Missing annuitant means an individual who has acquired the status 
of missing annuitant under Sec. 880.203(b).

Subpart B--Procedures


Sec. 880.201  Purpose and scope.

    This subpart establishes the procedures that OPM will use to--
    (a) Determine that an individual is a missing annuitant;
    (b) Suspend payment of annuity to a missing annuitant;
    (c) Notify individuals affected by such a suspension of payments; 
and
    (d) Determine that a missing annuitant has died.


Sec. 880.202  Referral to Associate Director.

    Any OPM office that receives information concerning the possibility 
that an annuitant might have disappeared will notify the Associate 
Director.


Sec. 880.203  Missing annuitant status and suspension of annuity.

    (a) Upon receipt of information concerning the possibility that an 
annuitant has disappeared, the Associate Director will conduct such 
inquiry as he or she determines to be necessary to determine whether 
the annuitant is alive and whether the annuitant's whereabouts can be 
determined.
    (b) If during an inquiry under paragraph (a) of this section, or 
upon subsequent receipt of additional information, the Associate 
Director finds substantial evidence (as defined in Sec. 1201.56(c)(1) 
of this title) to believe that an annuitant is either not alive or that 
the annuitant's whereabouts cannot be determined, the annuitant 
acquires the status of missing annuitant. The Associate Director will 
then--
    (1) Suspend payments to the missing annuitant; and
    (2) Notify individuals who may be able to qualify for payments 
under Sec. 880.302 that--
    (i) OPM has suspended the annuity payments to the missing 
annuitant;
    (ii) Payment may be made under Sec. 880.302, including the amount 
available for payment, how that amount was determined, and the 
documentation required (if any) to qualify for such payments; and
    (iii) In response to an inquiry from any person seeking CSRS, FERS, 
FEHBP, or FEGLI benefits, OPM will provide information about 
documentation necessary to establish a claim for such benefits.


Sec. 880.204  Restoration of annuity.

    (a) If the missing annuitant's whereabouts are determined, and he 
or she is alive and--
    (1) Competent, OPM will resume payments to the annuitant and pay 
retroactive annuity for the period in missing status less any payment 
made to the family during that period; or
    (2) Incompetent, OPM will resume payments to a representative payee 
under section 8345(e) or section 8466(c) of title 5, United States 
Code, and pay retroactive annuity for the period in missing status less 
any payment made to the family during that period.
    (b) If the missing annuitant's whereabouts cannot be determined, 
missing annuitant status continues until an authorized institution 
determines that the missing annuitant is dead. (See Sec. 880.205.)


Sec. 880.205  Determinations of death.

    OPM does not make findings of presumed death. A claimant for CSRS, 
FERS, or FEGLI death benefits (other than payments under Sec. 880.302) 
or an individual seeking an adjustment of accounts under Sec. 880.207 
must submit a death certificate or other legal certification of death 
issued by an authorized institution.


Sec. 880.206  Date of death.

    (a) Except as provided in paragraph (b) of this section, for the 
purpose of benefits administered by OPM, the date of death of a missing 
annuitant who has been determined to be dead by an authorized 
institution is the date of disappearance as determined by the Associate 
Director.
    (b) For the purpose of determining whether a claim is untimely 
under any statute of limitations applicable to CSRS, FERS or FEGLI 
benefits (section 8345(i)(2), section 8466(b), or section 8705(b) 
through (d) of title 5, United States Code), the time between the date 
of disappearance and the date on which the authorized institution 
issues its decision that the missing annuitant is dead is excluded.


Sec. 880.207  Adjustment of accounts after finding of death.

    After a missing annuitant is determined to be dead under 
Sec. 880.205, OPM will review the case to determine whether additional 
benefits are payable or excess insurance premiums have been withheld.

[[Page 10293]]

Subpart C--Continuation of Benefits


Sec. 880.301  Purpose.

    This subpart establishes OPM's policy concerning the availability 
and amount of CSRS and FERS annuity payments and the continuation of 
FEHBP and FEGLI coverage and premiums while an annuitant is classified 
as a missing annuitant.


Sec. 880.302  Payments of CSRS or FERS benefits.

    (a) OPM will pay an amount equal to the survivor annuity that would 
be payable as CSRS or FERS survivor annuity to an account in a 
financial institution designated (under electronic funds transfer 
regulations in part 209 or part 210 of Title 31, Code of Federal 
Regulations) by an individual who, if the missing annuitant were dead, 
would be entitled to receive payment of a survivor annuity.
    (b) If more than one individual would qualify for survivor annuity 
payments in the event of the missing annuitant's death, OPM will make 
separate payments in the same manner as if the missing annuitant were 
dead.


Sec. 880.303  FEHBP coverage.

    (a) If the missing annuitant had a family enrollment, the 
enrollment will be transferred to the eligible family members under 
Sec. 890.303(c) of this chapter. If there is only one eligible family 
member, the enrollment will be changed to a self-only enrollment under 
Sec. 890.306(r) of this chapter. The changes will be effective the 
first day of the pay period following the date of disappearance.
    (b) If the missing annuitant was covered by a self only enrollment 
or if there is no eligible family member remaining, the enrollment 
terminates at midnight of the last day of the pay period in which he or 
she disappeared, subject to the temporary extension of coverage for 
conversion.
    (c) If the missing annuitant is found to be alive, the coverage 
held before the disappearance is reinstated effective with the pay 
period during which the annuitant is found, unless the annuitant, or 
the annuitant's representative, requests that the enrollment be 
restored retroactively to the pay period in which the disappearance 
occurred.


Sec. 880.304  FEGLI coverage.

    (a) FEGLI premiums will not be collected during periods when an 
annuitant is a missing annuitant.
    (b)(1) If the annuity of a missing annuitant is restored under 
Sec. 880.204(a), OPM will deduct the amount of FEGLI premiums 
attributable to the period when the annuitant was a missing annuitant 
from any adjustment payment due the annuitant under Sec. 880.204(a).
    (2) If a missing annuitant is determined to be dead under 
Sec. 880.205, FEGLI premiums and benefits will be computed using the 
date of death established under Sec. 880.206(a).

[FR Doc. 98-5401 Filed 3-2-98; 8:45 am]
BILLING CODE 6325-01-P