[Federal Register Volume 72, Number 243 (Wednesday, December 19, 2007)]
[Rules and Regulations]
[Pages 71743-71744]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-24527]



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 Rules and Regulations
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  Federal Register / Vol. 72, No. 243 / Wednesday, December 19, 2007 / 
Rules and Regulations  

[[Page 71743]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 843

RIN 3206-AL31


Federal Employees' Retirement System; Present Value Conversion 
Factors for Spouses of Deceased Separated Employees

AGENCY: Office of Personnel Management.

ACTION: Interim rule.

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

SUMMARY: The Office of Personnel Management (OPM) is issuing an interim 
rule to revise the table of reduction factors for early commencing 
dates of survivor annuities for spouses of separated employees who die 
before the date on which they would be eligible for unreduced deferred 
annuities under the Federal Employees' Retirement System (FERS) Act of 
1986. These rules are necessary to conform the tables to the economic 
assumptions adopted by the Board of Actuaries and published previously 
in the Federal Register.

DATES: This interim rule is effective December 19, 2007. We must 
receive your comments by January 18, 2008.

ADDRESSES: You may submit comments, identified by RIN number 3206-AL31, 
by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: [email protected]. Include RIN number 3206-AL31 in 
the subject line of the message.
     Fax: (202) 606-0990
     Mail: John Panagakos, Manager, Retirement Group, Office of 
Personnel Management, 1900 E Street NW., RM 4351, Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT: Jessica Johnson, (202) 606-0299.

SUPPLEMENTARY INFORMATION: OPM has published a notice in the Federal 
Register at 72 FR 31631 (June 7, 2007) to revise the normal cost 
percentage under the Federal Employees' Retirement System (FERS) Act of 
1986, Public Law 99-335, 100 Stat. 514, based on changed economic 
assumptions and demographic factors adopted by the Board of Actuaries 
of the Civil Service Retirement System. Those changed economic 
assumptions require corresponding changes in factors used to produce 
actuarially equivalent benefits when required by the FERS Act.
    Section 843.311 of title 5, Code of Federal Regulations, regulates 
the benefits for the survivors of separated employees under 5 U.S.C. 
8442(c). This section provides a choice of benefits for eligible 
current and former spouses. If the current or former spouse is the 
person entitled to the unexpended balance under the order of precedence 
under 5 U.S.C. 8424, he or she may elect to receive the unexpended 
balance instead of an annuity.
    Alternatively, an eligible current or former spouse may elect to 
receive an annuity commencing on the day after the employee's death or 
on the deceased separated employee's 62nd birthday. If the annuity 
commences on the deceased separated employee's 62nd birthday, it equals 
50 percent of the annuity that the separated employee would have 
received when he or she attained age 62. If the current or former 
spouse elects the earlier commencing date, the annuity is reduced using 
the factors in Appendix A to subpart C of part 843 to make the annuity 
actuarially equivalent to the present value of the annuity that he or 
she would have received if it commenced on the retiree's 62nd birthday. 
These rules amend that appendix to conform to the revised economic 
assumptions.

Waiver of General Notice of Proposed Rulemaking

    Under section 553(b)(3)(B) and (d)(3) of title 5, United States 
Code, I find that good reason exists for waiving the general notice of 
proposed rulemaking and for making these amendments effective in less 
than 30 days. The amendments made by this rule are required by changes 
in economic assumptions that were published on June 7, 2007. Providing 
a comment period on the result of mathematical computations resulting 
from the changed economic assumptions is unnecessary and, to the extent 
that it would delay benefit payments, is contrary to the public 
interest.

Executive Order 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Order (E.O.) 12866, as amended by E.O. 
13258 and E.O. 13422.

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 payments to surviving current and former 
spouses of former employees and Members who separated from Federal 
service with title to a deferred annuity.

List of Subjects in 5 CFR Part 843

    Air traffic controllers, Disability benefits, Firefighters, 
Government employees, Law enforcement officers, Pensions, Retirement.

United States Office of Personnel Management.
Linda M. Springer,
Director.

0
For the reasons stated in the preamble, the Office of Personnel 
Management amends 5 CFR part 843 as follows:

PART 843--FEDERAL EMPLOYEES RETIREMENT SYSTEM--DEATH BENEFITS AND 
EMPLOYEE REFUNDS

0
1. The authority citation for part 843 continues to read as follows:

    Authority: 5 U.S.C. 8461; Sec. Sec.  843.205, 843.208, and Sec.  
843.209 also issued under 5 U.S.C. 8424; Sec.  843.309 also issued 
under 5 U.S.C. 8442; Sec.  843.406 also issued under 5 U.S.C. 8441.

Subpart C--Current and Former Spouse Benefits

0
2. Revise Appendix A to subpart C of part 843 to read as follows:

[[Page 71744]]



 Appendix A to Subpart C of Part 843.--Present Value Conversion Factors
 for Earlier Commencing Date of Annuities of Current and Former Spouses
                     of Deceased Separated Employees
------------------------------------------------------------------------
   Age of separated employee at birthday before death       Multiplier
------------------------------------------------------------------------
    With at least 10, but less than 20 years of creditable service--
------------------------------------------------------------------------
26......................................................          0.0592
27......................................................           .0633
28......................................................           .0688
29......................................................           .0730
30......................................................           .0804
31......................................................           .0859
32......................................................           .0921
33......................................................           .0991
34......................................................           .1064
35......................................................           .1158
36......................................................           .1234
37......................................................           .1333
38......................................................           .1422
39......................................................           .1551
40......................................................           .1668
41......................................................           .1799
42......................................................           .1938
43......................................................           .2097
44......................................................           .2260
45......................................................           .2437
46......................................................           .2635
47......................................................           .2858
48......................................................           .3085
49......................................................           .3346
50......................................................           .3618
51......................................................           .3926
52......................................................           .4255
53......................................................           .4623
54......................................................           .5025
55......................................................           .5463
56......................................................           .5944
57......................................................           .6461
58......................................................           .7040
59......................................................           .7675
60......................................................           .8374
61......................................................           .9146
------------------------------------------------------------------------
    With at least 20, but less than 30 years of creditable service--
------------------------------------------------------------------------
36......................................................          0.1483
37......................................................           .1598
38......................................................           .1709
39......................................................           .1858
40......................................................           .2000
41......................................................           21.59
42......................................................           .2325
43......................................................           .2514
44......................................................           .2708
45......................................................           .2922
46......................................................           .3160
47......................................................           .3424
48......................................................           .3697
49......................................................           .4007
50......................................................           .4335
51......................................................           .4701
52......................................................           .5093
53......................................................           .5532
54......................................................           .6010
55......................................................           .6532
56......................................................           .7104
57......................................................           .7722
58......................................................           .8411
59......................................................           .9167
------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------
                                                                    Multiplier by separated employee's year of
                                                                                       birth
       Age of separated employee at birthday before death        -----------------------------------------------
                                                                                     From 1950
                                                                    After 1966     through 1966     Before 1950
----------------------------------------------------------------------------------------------------------------
                                 With at least 30 years of creditable service--
----------------------------------------------------------------------------------------------------------------
46..............................................................          0.4109          0.4476          0.4870
47..............................................................           .4449           .4843           .5268
48..............................................................           .4805           .5232           .5691
49..............................................................           .5204           .5666           .6161
50..............................................................           .5630           .6130           .6666
51..............................................................           .6102           .6642           .7222
52..............................................................           .6610           .7195           .7823
53..............................................................           .7175           .7807           .8487
54..............................................................           .7790           .8474           .9210
55..............................................................           .8461           .9203          1.0000
56..............................................................           .9195          1.0000          1.0000
----------------------------------------------------------------------------------------------------------------

 [FR Doc. E7-24527 Filed 12-18-07; 8:45 am]
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