[Federal Register Volume 73, Number 26 (Thursday, February 7, 2008)]
[Rules and Regulations]
[Pages 7188-7189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-2131]


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 OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 550 and 892

RIN 3206-AJ88


Allotments From Federal Employees

AGENCY: U.S. Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The U.S. Office of Personnel Management (OPM) is issuing final 
regulations dealing with the use of OPM's allotment authority to allow 
for pretax salary reductions as part of OPM's flexible benefits plan. 
Using an allotment from an employee's pay to the employing agency 
allows certain payments (e.g., employee health insurance premiums, 
contributions to a flexible spending arrangement, and contributions to 
a health savings account) to be paid with pretax dollars, as provided 
under section 125 of the Internal Revenue Code. In addition, these 
regulations finalize certain policy clarifications and changes to make 
the regulations more readable.

DATES: Effective Date: The final regulations are effective on March 10, 
2008.

FOR FURTHER INFORMATION CONTACT: Kevin Kitchelt by telephone at (202) 
606-2858; by fax at (202) 606-0824; or by e-mail at [email protected].

SUPPLEMENTARY INFORMATION: On November 17, 2006, the U.S. Office of 
Personnel Management (OPM), issued interim regulations (71 FR 66827) on 
OPM's allotment authority at 5 CFR part 550, subpart C, to allow for 
pretax salary reductions as part of OPM's flexible benefits plan. Using 
an allotment from an employee's pay to the employing agency allows 
certain payments (e.g., employee health insurance premiums, 
contributions to a flexible spending arrangement, and contributions to 
a health savings account) to be paid with pretax dollars, as provided 
under section 125 of the Internal Revenue Code. The interim regulations 
also made certain policy clarifications and changes to make the 
regulations more readable
    The 60-day comment period ended on January 16, 2007. During the 
comment period, OPM received one comment that was outside the scope of 
these regulations. Therefore, we are adopting the interim regulations 
as final with a correction to a section title.

 Regulatory Flexibility Act

    I certify that these regulations will not have a significant 
economic impact on a substantial number of small entities because they 
will apply only to Federal agencies and employees.

E.O. 12866, Regulatory Review

    The Office of Management and Budget has reviewed this rule in 
accordance with E.O. 12866.

List of Subjects in 5 CFR Parts 550 and 892

    Administrative practice and procedure, Claims, Government 
employees, Wages, Health insurance, and Taxes.

U.S. Office of Personnel Management.
Linda M. Springer,
Director.

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Accordingly, the interim rule amending 5 CFR parts 550 and 892 which 
was published at 71 FR 66827 on November 17, 2006, is adopted as final 
with the following change:

PART 550--PAY ADMINISTRATION (GENERAL)

Subpart C--Allotments From Federal Employees

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1. The authority citation for subpart C of part 550 continues to read 
as follows:

    Authority: 5 U.S.C. 5527; E.O. 10982, 3 CFR 1959-1963 Comp., 
p.502.


[[Page 7189]]



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2. The heading of subpart C is revised to read as set forth above.
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3. The undesignated center heading ``Allotments for Savings'' following 
Sec.  550.351 is removed.
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4. Revise the heading to Sec.  550.361 to read as follows:


Sec.  550.361  Scope.

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[FR Doc. E8-2131 Filed 2-6-08; 8:45 am]
BILLING CODE 6325-39-P