[Federal Register Volume 68, Number 247 (Wednesday, December 24, 2003)]
[Proposed Rules]
[Page 74513]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-31768]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 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.
 
 ========================================================================
 

  Federal Register / Vol. 68, No. 247 / Wednesday, December 24, 2003 / 
Proposed Rules  

[[Page 74513]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 890

RIN 3206-AI37


Federal Employees Health Benefits Program: Effective Dates

AGENCY: Office of Personnel Management.

ACTION: Notice of withdrawal of proposed rulemaking.

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

SUMMARY: The Office of Personnel Management (OPM) is withdrawing its 
proposal to revise the regulations on adopting January 1 as the 
effective date for all annual open season enrollment changes and new 
enrollments in the Federal Employees Health Benefits Program (FEHB) 
which was published August 31, 1998, FR Doc. 98-23335. The regulation 
would have changed the existing FEHB regulations concerning the 
effective date from the 1st day of the first pay period in the new 
calendar year. This regulation would have concurrently changed the 
effective date of open season changes in enrollment made by employees, 
annuitants, former spouses and individuals enrolled under the temporary 
continuation of coverage (TCC) provisions of FEHB law.
    The proposed regulation would have standardized the effective date 
of most of these new enrollments or changes in enrollment and made it 
consistent with the beginning of health benefits offered by FEHB plans, 
which are based on the calendar year. The intent of the regulation was 
to make it easier for employing offices and health plan carriers to 
administer the Program and reduce the potential for errors in 
determining effective dates.
    The comment period for the proposed regulation ended September 30, 
1998. OPM received comments from agencies that their automated payroll 
systems were not functionally capable of pro-rating employees' premium 
shares on other than a pay period basis. January 1 typically falls in 
the middle of a bi-weekly pay period, the most prevalent pay period 
used by Federal agencies. Therefore, most agencies would be required to 
accurately allocate the pro rata premiums to employees' pay on a timely 
basis. Some agencies reported that they simply would be unable to pro-
rate premiums from January 1 to the beginning of the first pay period 
in the calendar year. Since 1998, OPM has subsequently raised this 
issue with agencies with similar responses.
    OPM is responsible for the Administration's new e-Payroll 
initiative, part of the President's Management Agenda. This initiative 
is designed to modernize the Government's payroll system. OPM has 
selected four payroll service providers to replace the current 22 
providers for the Federal government's 1.8 million employees. Under the 
e-Payroll initiative plan, the four providers will begin government-
wide processing in September 2004. Once these new systems are in place, 
we will reconsider the status of this proposed FEHB rulemaking.

FOR FURTHER INFORMATION CONTACT: Anne Easton on (202) 606-0004.

Office of Personnel Management.
Kay Coles James,
Director.
[FR Doc. 03-31768 Filed 12-23-03; 8:45 am]
BILLING CODE 6325-50-P