[Federal Register Volume 77, Number 140 (Friday, July 20, 2012)]
[Proposed Rules]
[Pages 42914-42918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-17537]
Federal Register / Vol. 77, No. 140 / Friday, July 20, 2012 /
Proposed Rules
[[Page 42914]]
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OFFICE OF PERSONNEL MANAGEMENT
5 CFR Parts 890, 892, 894
RIN 3206-AM55
Federal Employees Health Benefits Program and Federal Employees
Dental and Vision Insurance Program: Expanding Coverage of Children
Federal Flexible Benefits Plan: Pre-Tax Payment of Health Benefits
Premiums
AGENCY: Office of Personnel Management.
ACTION: Proposed rule with request for comments.
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SUMMARY: The United States Office of Personnel Management (OPM) is
issuing a proposed rule to amend the Federal Employees Health Benefits
Program (FEHB) regulations regarding coverage for children up to age 26
and for children of the same-sex domestic partners of FEHB enrollees.
The regulations also allow children of same-sex domestic partners to be
covered family members under the Federal Employees Dental and Vision
Insurance Program (FEDVIP).
DATES: OPM must receive comments on or before September 18, 2012.
ADDRESSES: Send written comments to Marguerite Martel, Senior Policy
Analyst, Planning and Policy Analysis, U.S. Office of Personnel
Management, Room 3415, 1900 E Street NW., Washington, DC; or fax to
(202) 606-4640 Attn: Marguerite Martel. You may also submit comments
using the Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
FOR FURTHER INFORMATION CONTACT: Marguerite Martel; at
[email protected] or (202) 606-0004.
SUPPLEMENTARY INFORMATION: This proposed rule is intended to (1) Bring
FEHB rules into compliance with changes to health insurance coverage
for children under the Patient Protection and Affordable Care Act,
Public Law 111-148, as amended by the Health Care and Education
Reconciliation Act, Public Law 111-152 (the Affordable Care Act); (2)
extend FEHB and FEDVIP benefits to children of same-sex domestic
partners of Federal employees consistent with Presidential Memoranda
issued on June 17, 2009 and June 2, 2010; (3) make other non-
substantive, technical conforming amendments to the Federal Employees
Dental and Vision Program (FEDVIP) rules, which reference current FEHB
rules that would be amended by this proposed rule; and (4) update the
Federal Flexible Benefits Plan: Pre-Tax Payment of Health Benefits
Premiums (Part 892) rules to reflect the above-referenced changes
required by the Affordable Care Act and to implement changes in
connection with the extension of FEHB coverage to children of same-sex
domestic partners of Federal employees.
Section 2714(a) of the Public Health Service Act, which was added
by section 1001 of the Affordable Care Act, requires group health plans
and health insurance issuers offering group or individual health
insurance coverage that provides dependent coverage of children to
``continue to make such coverage available for an adult child until the
child turns 26 years of age.'' Pursuant to this law, OPM issued
guidance to FEHB carriers in Carrier Letter No. 2010-18 and to agency
benefit officers in Benefits Administration Letter No. 10-201. In these
guidance documents, OPM explained that the Affordable Care Act and its
implementing regulations allow married children to be covered; remove
dependency requirements; remove residency requirements; and do not
require a child to be a student or to have prior or current insurance
coverage in order to be placed on their parent's enrollment under the
FEHB Program. This proposed rule updates FEHB regulations to align with
current program policy by extending coverage to children up to 26 years
of age, regardless of their marital status, dependency, residency,
student status, or lack of insurance coverage with limited exceptions
permitted under guidance issued under the Affordable Care Act. This
proposed rule also updates Part 892 to reflect coverage of children up
to age 26 as described above.
The rule also makes technical conforming changes to FEDVIP
regulations, which reference current FEHB rules that are affected by
this proposed rule. The changes required by the Affordable Care Act do
not apply to FEDVIP as stand-alone dental and vision insurance, and
therefore this regulation does not extend coverage of children to age
26 or eliminate dependency and residency restrictions under FEDVIP.
The rule also clarifies and updates FEHB rules governing dual
enrollments. These changes are not meant to affect the substance of
current rules prohibiting dual enrollments, but rather to clarify and
update the rules in light of the Affordable Care Act's elimination of
residency and dependency restrictions for children.
The proposed rule also would extend FEHB and FEDVIP eligibility to
the children of an enrollee's same-sex domestic partner. This change is
being proposed to implement President Obama's memoranda on domestic
partner benefits. On June 17, 2009, President Obama issued the
Presidential Memorandum on Federal Benefits and Non-Discrimination
requesting that the Director of OPM extend certain benefits to
qualified same-sex domestic partners of Federal employees. OPM then
determined that it could expand eligibility to apply for coverage under
the Federal Long Term Care Insurance Program (FLTCIP) to same-sex
domestic partners of Federal employees and annuitants, and issued
published regulations (75 FR 30267-30268) to do so.
That memorandum also requested that heads of executive departments
and agencies conduct a review of the benefits provided by their
respective departments and agencies to determine what authority they
have to extend such benefits to same-sex domestic partners of Federal
employees, annuitants and their families. The results of that review
were reported to the Director of OPM, who, in consultation with the
United States Department of Justice, made recommendations to the
President to provide benefits to the same-sex domestic partners of
Federal Government employees. Subsequently, President Obama issued a
Presidential Memorandum on June 2, 2010 requesting agencies to
implement the recommended regulatory and administrative actions
expanding benefits for same-sex domestic partners of Federal employees
and their families.
Executive Order 13563, Improving Regulation and Regulatory Review,
sets out a series of requirements that must be followed, to the extent
permitted by law, in issuing regulations. That Executive Order states
that ``[w]here appropriate and permitted by law, each agency may
consider (and discuss qualitatively) values that are difficult or
impossible to quantify, including equity, human dignity, fairness, and
distributive impacts.'' Such values are relevant here. In particular,
this regulation would protect human dignity, and promote equity and
fairness by ensuring equal access to these benefits for LGBT Federal
employees.
Since OPM made its recommendations to the President, the Agency has
determined that coverage under the FEHB and FEDVIP Programs may be
extended to children of the same-sex domestic partners of Federal
employees and annuitants through a regulation defining the term
``stepchild''
[[Page 42915]]
as that term is used in 5 U.S.C. 8901 and cross-referenced in 5 U.S.C.
8951 and 5 U.S.C. 8981. This regulatory action is necessary to
implement fully the Presidential Memoranda cited above and is
consistent with OPM's policy determination that extension of coverage
is appropriate. Accordingly, this proposed rule extends FEHB and FEDVIP
coverage to children of same-sex domestic partners of enrolled
employees and annuitants.
The rule adds a definition of ``stepchild'' to Parts 890 and 894 to
denote the child of an enrollee's spouse or same-sex domestic partner.
In order to maintain consistency across the Federal benefits programs,
the definitions of domestic partner and domestic partnership mirror
those found at 5 CFR 875.213 governing the FLTCIP.
The rule would amend FEHB regulations to provide that if the
enrollee does not establish that the child of an enrollee's same-sex
domestic partner qualifies for favorable tax treatment under applicable
tax laws, then the enrollee will be taxed on the fair market value of
any FEHB coverage provided to the child. The rule would also amend
Parts 892 and 894 to provide that income will be separately imputed to
the enrollee in the amount of that portion of the amount allotted for
pre-tax treatment that is attributable to coverage of the child of an
enrollee's same sex domestic partner where the enrollee has not
established that the child is entitled to favorable tax treatment under
applicable tax laws and that such income will be taxed accordingly.
This proposed rule also amends Part 892 rules to provide that for
purposes of determining whether a qualifying life event has occurred,
the child of an employee's same-sex domestic partner as described in
Part 890 will be treated as being covered by the qualifying life event
rules set forth in Treasury Regulations at 26 CFR 1.125-4 even if the
child is not covered by such rules by virtue of not being a dependent
under the Internal Revenue Code. This would permit an employee
receiving premium conversion to make mid-plan year FEHB enrollment and
Part 892 election changes in connection with events related to the
child of a same-sex domestic partner who does not qualify as a
dependent under the Internal Revenue Code under the same terms and
conditions as children covered by such rules. For instance, an employee
receiving premium conversion under a FEHB self and family enrollment
covering only the employee and the child of a same-sex domestic partner
who did not qualify as a dependent under the Internal Revenue Code
would be able to switch from a self and family enrollment to a self
only enrollment during a plan year if the child reached age 26 during
the year.
In addition to generally seeking comments on this proposed rule, we
are specifically soliciting comments on how, in the case of the
provision of FEHB coverage to the child of a same-sex domestic partner
who does not qualify for favorable tax treatment under the Internal
Revenue Code, the fair market value of that coverage might be
calculated for different types of plan coverage, including, for
example, a high deductible health plan with a health reimbursement
arrangement.
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
only adds additional groups to the list of groups eligible for coverage
under FEHB.
Executive Order 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with Executive Order 12866.
Federalism
We have examined this rule in accordance with Executive Order
13132, Federalism, and have determined that this rule will not have any
negative impact on the rights, roles and responsibilities of State,
local, or tribal governments.
List of Subjects
5 CFR Part 890
Administrative practice and procedure, Government employees, Health
facilities, Health insurance, Health professions, Hostages, Iraq,
Kuwait, Lebanon, Military personnel, Reporting and recordkeeping
requirements, Retirement.
5 CFR Part 892
Administrative practice and procedure, Government employees, Health
insurance, Taxes, Wages.
5 CFR Part 894
Administrative practice and procedure, Government employees, Health
insurance, Taxes, Wages.
U.S. Office of Personnel Management.
John Berry,
Director.
Accordingly, OPM is proposing to amend title 5, Code of Federal
Regulations as follows:
PART 890--FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM
1. The authority citation for part 890 continues to read as
follows:
Authority: 5 U.S.C. 8913; Sec. 890.301 also issued under Sec.
311 of Pub. L. 111-03, 123 Stat. 64; Sec. 890.111 also issued under
section 1622(b) of Pub. L. 104-106, 110 Stat. 521; Sec. 890.112 also
issued under section 1 of Pub. L. 110-279, 122 Stat. 2604; 5 U.S.C.
8913; Sec. 890.803 also issued under 50 U.S.C. 403p, 22 U.S.C. 4069c
and 4069c-1; subpart L also issued under Sec. 599C of Pub. L. 101-
513, 104 Stat. 2064, as amended; Sec. 890.102 also issued under
sections 11202(f), 11232(e), 11246(b) and (c) of Pub. L. 105-33, 111
Stat. 251; and section 721 of Pub. L. 105-261, 112 Stat. 2061.
2. Section 890.302 is revised to read as follows:
Sec. 890.302 Coverage of family members.
(a)(1) An enrollment for self and family includes all family
members who are eligible to be covered by the enrollment. Except as
provided in paragraph (a)(2) of this section, no employee, former
employee, annuitant, child, or former spouse may enroll or be covered
as a family member if he or she is covered under another person's self
and family enrollment in the FEHB Program.
(2) Dual enrollment. A dual enrollment exists when an individual is
covered under more than one FEHB Program enrollment. Dual enrollments
are prohibited except when an eligible individual would otherwise not
have access to coverage and the dual enrollment has been authorized by
the employing office.
(i) An individual who is a covered family member under the self and
family enrollment of another FEHB enrollee may not enroll in his or her
own right, even though otherwise eligible to enroll.
(ii) Exception. An individual described in paragraph (a)(2)(i) of
this section may enroll if he or she or his or her eligible family
members would otherwise not have access to coverage, in which case the
individual may enroll in his or her own right for self only or self and
family coverage, as appropriate. However, an eligible individual is
entitled to receive benefits under only one enrollment regardless of
whether he or she qualifies as a family member under a spouse's or
parent's enrollment. To ensure that no person receives benefits under
more than one enrollment, each enrollee must promptly notify the
insurance carrier as to which persons will be covered under his or her
enrollment. These individuals are not covered under the other
[[Page 42916]]
enrollment. Examples include but are not limited to:
(A) To protect the interests of married or legally separated
Federal employees, annuitants and their children, an employee or
annuitant may enroll in his or her own right in a self only or self and
family enrollment, as appropriate, even though his or her spouse also
has a self and family enrollment if the employee, annuitant or his or
her children live apart from the spouse and would otherwise not have
access to coverage due to a service area restriction and the spouse
refuses to change health plans.
(B) When an employee who is under age 26 and covered under a
parent's self and family enrollment acquires an eligible family member,
the employee may elect to enroll for self and family coverage.
(iii) Children are entitled to receive benefits under only one
enrollment regardless of whether the children qualify as family members
under the enrollment of both parents or of a parent and a stepparent
and regardless of whether the parents are married, unmarried, divorced,
legally separated, or in a domestic partnership. To ensure that no
person receives benefits under more than one enrollment, each enrollee
must promptly notify the insurance carrier as to which family members
will be covered under his or her enrollment. These individuals are not
covered under the other enrollment.
(b)(1) A child is considered to be a family member eligible to be
covered by the enrollment of an enrolled employee or annuitant or a
former employee or child enrolled under Sec. 890.1103 of this part if
he or she is--
(i) A child born within marriage;
(ii) A recognized natural child;
(iii) An adopted child;
(iv) A stepchild; or
(v) A foster child who lives with the enrollee in a regular parent-
child relationship.
(2) Meaning of stepchild. For purposes of this part, the term
``stepchild'' refers to the child of an enrollee's spouse or domestic
partner.
(3) Meaning of domestic partner. For purposes of this part, the
term ``domestic partner'' is a person in a domestic partnership with an
employee, annuitant, former employee or child enrolled under Sec.
890.1103 of this part.
(4) Meaning of domestic partnership. For purposes of this part, the
term ``domestic partnership'' is defined as a committed relationship
between two adults, of the same sex, in which the partners--
(i) Are each other's sole domestic partner and intend to remain so
indefinitely;
(ii) Maintain a common residence, and intend to continue to do so
(or would maintain a common residence but for an assignment abroad or
other employment-related, financial, or similar obstacle);
(iii) Are at least 18 years of age and mentally competent to
consent to a contract;
(iv) Share responsibility for a significant measure of each other's
financial obligations;
(v) Are not married or joined in a civil union to anyone else;
(vi) Are not a domestic partner of anyone else;
(vii) Are not related in a way that, if they were of opposite sex,
would prohibit legal marriage in the U.S. jurisdiction in which the
domestic partnership was formed;
(viii) Provide documentation demonstrating fulfillment of the
requirements of (i) through (vii) as prescribed by OPM; and
(ix) Certify that they understand that willful falsification of the
documentation described in subparagraph (viii) of this section may lead
to disciplinary action and the recovery of the cost of benefits
received related to such falsification and may constitute a criminal
violation under 18 U.S.C. 1001.
(5) Termination of Domestic Partnership. An enrollee must notify
the employing office within seven calendar days in the event that any
of the conditions listed in (i) through (vii) of this subsection are no
longer met, in which case a domestic partnership will be deemed
terminated.
(6) Tax Issues. The fair market value of coverage provided to a
stepchild who is the child of a domestic partner will be taxed in
accordance with applicable tax laws unless the enrollee establishes
that the stepchild qualifies for favorable tax treatment in accordance
with guidance issued by OPM.
(c) Child incapable of self-support. When an individual's
enrollment for self and family includes a child who has become 26 years
of age and is incapable of self-support, the employing office must
require such enrollee to submit a physician's certificate verifying the
child's disability. The certificate must--
(1) State that the child is incapable of self-support because of a
physical or mental disability that existed before the child became 26
years of age and that can be expected to continue for more than 1 year;
(2) Include a statement of the name of the child, the nature of the
disability, the period of time it has existed, and its probable future
course and duration; and,
(3) Be signed by the physician and show the physician's office
address. The employing office must require the enrollee to submit the
certificate on or before the date the child becomes 26 years of age.
However, the employing office may accept otherwise satisfactory
evidence of incapacity that is not timely filed.
(d) Renewal of certificates of incapacity. The employing office
must require an enrollee who has submitted a certificate of incapacity
to renew that certificate on the expiration of the minimum period of
disability certified.
(e) Determination of incapacity. (1) Except as provided in
paragraph (e)(2) of this section, the employing office shall make
determinations of incapacity.
(2) Either the employing office or the carrier may make a
determination of incapacity if a medical condition, as specified by
OPM, exists that would cause a child to be incapable of self-support
during adulthood.
3. Section 890.804 is revised to read as follows:
Sec. 890.804 Coverage.
(a) Type of enrollment. A former spouse who meets the requirements
of Sec. 890.803 may elect coverage for self alone or for self and
family. A family enrollment covers only the former spouse and any child
of both the former spouse and the employee, former employee or employee
annuitant, provided such child is not otherwise covered by a health
plan under this part. A child must be under age 26 or incapable of
self-support because of a mental or physical disability existing before
age 26. No person may be covered by two enrollments.
(b) Child. A child is considered to be the child of the former
spouse or the employee, former employee, or employee annuitant if he or
she is--
(i) A child born within marriage or
(ii) An adopted child.
(c) Child incapable of self-support. When a former spouse enrolls
for a family enrollment which includes a child who has become 26 years
of age and is incapable of self-support, the employing office shall
determine such child's eligibility in accordance with Sec. 890.302(c),
(d), and (e).
4. In Sec. 890.1102, revise the definition of ``Qualifying event''
to read as follows:
Sec. 890.1102 Definitions.
* * * * *
Qualifying event means any of the following events that qualify an
individual for temporary continuation of coverage under subpart K of
this part:
[[Page 42917]]
(1) A separation from Government service.
(2) A divorce or annulment.
(3) A change in circumstances that causes an individual to become
ineligible to be considered a child who is a covered family member
under this part.
* * * * *
5. In Sec. 890.1103, revise paragraphs (a) introductory text and
(a)(2) to read as follows:
Sec. 890.1103 Eligibility.
(a) Except as provided by paragraph (b) of this section,
individuals described by this section are eligible to elect temporary
continuation of coverage under this subpart. Eligible individuals are
as follows:
* * * * *
(2) Individuals whose coverage as children under the family
enrollment of an employee, former employee, or annuitant ends because
they cease meeting the requirements for being considered covered family
members. For the purpose of this section, children who are enrolled
under this part as survivors of deceased employees or annuitants are
considered to be children under a family enrollment of an employee or
annuitant at the time of the qualifying event.
* * * * *
6. In Sec. 890.1104, revise paragraphs (b)(2) and (3) to read as
follows:
Sec. 890.1104 Notification by agency.
* * * * *
(b) * * *
(2) If the notice described in paragraph (b)(1) of this section is
received by the employing office within 60 days after the date on which
the child ceased meeting the requirements for being considered a
covered family member, the employing office must notify the child of
his or her rights under this subpart within 14 days after receiving the
notice.
(3) This paragraph does not preclude the employing office from
notifying the child of his or her rights based on oral or written
notification by the child, another family member, or any other source
that the child no longer meets the requirements for being considered a
covered family member.
* * * * *
5. In Sec. 890.1107, revise paragraphs (b)(1) and (2) to read as
follows:
Sec. 890.1107 Length of temporary continuation of coverage.
* * * * *
(b)(1) Except as provided in paragraph (b)(2) of this section, in
the case of individuals who are eligible for continued coverage under
Sec. 890.1103(a)(2) of this part, the temporary continuation of
coverage ends on the date that is 36 months after the date the
individual first ceases to meet the requirements for being considered a
child who is a covered family member, unless it is terminated earlier
under the provisions of Sec. 890.1110.
(2) The temporary continuation of coverage ends on the date that is
36 months after the date of the separation from service on which the
former employee's continuation of coverage is based, unless it is
terminated earlier under the provisions of Sec. 890.1110, in the case
of individuals who--
(i) Are eligible for continued coverage under Sec. 890.1103(a)(2);
and
(ii) As of the day before ceasing to meet the requirements for
being considered children who are covered family members, were covered
family members of a former employee receiving continued coverage under
this subpart; and
(iii) Cease meeting the requirements for being considered children
who are covered family members before the end of the 18-month period
specified in paragraph (a) of this section.
* * * * *
Sec. 890.1202 [Amended]
6. In Sec. 890.1202, remove the words ``unmarried'' and
``dependent'' from the definition of ``covered family members''.
Sec. 890.1203 [Amended]
7. In Sec. 890.1203, in paragraph (b), remove the word
``dependent'' each time it appears.
PART 892--FEDERAL FLEXIBLE BENEFITS PLAN: PRE-TAX PAYMENTS OF
HEALTH BENEFITS PREMIUMS PROGRAM
8. The authority citation for part 892 continues to read as
follows:
Authority: 5 U.S.C 8913; 5 U.S.C. 1103(a)(7); 26 U.S.C. 125;
Sec. 892.101 also issued under sec. 311 of Pub. L. 111-3, 123 Stat.
64.
9. In Sec. 892.101, the definition of ``Dependent'' and the
introductory text and paragraph (1)(iii) of the definition of
``Qualifying life event'' are revised to read as follows:
Sec. 892.101 Definitions.
* * * * *
Dependent means a family member who is both eligible for coverage
under the FEHB Program and either a dependent as defined in section 152
of the Internal Revenue Code or a child as defined in section 152(f)(1)
of the Internal Revenue Code who is under age 27 as of the end of the
employee's taxable year.
* * * * *
Qualifying life event means an event that may permit changes to
your FEHB enrollment as well as changes to your premium conversion
election as described in Treasury regulations at 26 CFR 1.125-4. For
purposes of determining whether a qualifying life event has occurred
under this part, a stepchild who is the child of an employee's domestic
partner as defined in Part 890 shall be treated as though the child
were a dependent within the meaning of 26 CFR 1.125-4 even if the child
does not so qualify under such Treasury regulations. Such events
include the following:
* * * * *
(iii) Last dependent child loses coverage, for example, the child
reaches age 26, disabled child becomes capable of self support, child
acquires other coverage by court order; and
* * * * *
10. In Sec. 892.102, add two sentences to the end of the section
to read as follows:
Sec. 892.102 What is premium conversion and how does it work?
* * * There is one exception, however. If your FEHB enrollment
covers a stepchild who is the child of a domestic partner as defined in
part 890 of this chapter, and that stepchild does not qualify for
favorable tax treatment under applicable tax laws, then the portion of
the allotted amount described above that represents the employee's
contribution toward the fair market value of FEHB coverage provided to
the child will be separately imputed to the employee as income and
subject to applicable taxes.
Sec. 892.208 [Amended]
11. In Sec. 892.208(b), the number ``22'' is removed and the
number ``26'' is added in its place.
PART 894--FEDERAL EMPLOYEES DENTAL AND VISION INSURANCE PROGRAM
12. The authority citation for part 894 continues to read as
follows:
Authority: 5 U.S.C. 8962; 5 U.S.C. 8992; subpart C also issued
under sec. 1 of Pub. L. 110-279, 122 Stat. 2604.
13. In Sec. 894.101, the definition of ``Acquiring an eligible
child'' is revised and definitions for ``Domestic partner,'' ``Domestic
partnership,'' and ``Stepchild'' are added to read as follows:
[[Page 42918]]
Sec. 894.101 Definitions.
* * * * *
Acquiring an eligible child means one of the following:
(1) Birth of a child;
(2) Adoption of a child;
(3) Acquisition of a foster child as described in Sec.
890.101(a)(8) of this chapter;
(4) Acquisition of a stepchild who lives with the enrollee in a
regular parent-child relationship;
(5) Establishment of a recognized natural child;
(6) Residence change of the enrollee's stepchild or recognized
natural child who moves in with the enrollee; and
(7) An otherwise eligible child becoming unmarried due to divorce
or annulment of marriage, or death.
* * * * *
Domestic partner means a person in a domestic partnership with an
employee or annuitant.
Domestic partnership means a committed relationship between two
adults, of the same sex, in which the partners--
(1) Are each other's sole domestic partner and intend to remain so
indefinitely;
(2) Maintain a common residence, and intend to continue to do so
(or would maintain a common residence but for an assignment abroad or
other employment-related, financial, or similar obstacle);
(3) Are at least 18 years of age and mentally competent to consent
to a contract;
(4) Share responsibility for a significant measure of each other's
financial obligations;
(5) Are not married or joined in a civil union to anyone else;
(6) Are not a domestic partner of anyone else;
(7) Are not related in a way that, if they were of opposite sex,
would prohibit legal marriage in the U.S. jurisdiction in which the
domestic partnership was formed;
(8) Provide documentation demonstrating fulfillment of the
requirements of (i) through (vii) as prescribed by OPM; and
(9) Certify that they understand that willful falsification of the
documentation described in subparagraph (viii) of this section may lead
to disciplinary action and the recovery of the cost of benefits
received related to such falsification and may constitute a criminal
violation under 18 U.S.C. 1001.
(10) Termination of Domestic Partnership. An enrollee must notify
the employing office within seven calendar days in the event that any
of the conditions listed in paragraphs (1) through (7) of this
definition are no longer met, in which case a domestic partnership will
be deemed terminated.
* * * * *
Stepchild means the child of an enrollee's spouse or domestic
partner.
* * * * *
14. Add Sec. 894.308 to subpart C to read as follows:
Sec. 894.308 How do I establish the dependency of my recognized
natural child?
(a) Dependency is established for a recognized natural child who
lives with the enrollee in a regular parent-child relationship, a
recognized natural child for whom a judicial determination of support
has been obtained, or a recognized natural child to whose support the
enrollee makes regular and substantial contributions.
(b) The following are examples of proof of regular and substantial
support. More than one of the following proofs may be required to show
support of a recognized natural child who does not live with the
enrollee in a regular parent-child relationship and for whom a judicial
determination of support has not been obtained:
(1) Evidence of eligibility as a dependent child for benefits under
other State or Federal programs;
(2) Proof of inclusion of the child as a dependent on the
enrollee's income tax returns;
(3) Canceled checks, money orders, or receipts for periodic
payments from the enrollee for or on behalf of the child.
(4) Evidence of goods or services which show regular and
substantial contributions of considerable value;
(5) Any other evidence which OPM shall find to be sufficient proof
of support or of paternity or maternity.
15. In Sec. 894.403, add a sentence to the end of paragraph (a) to
read as follows:
Sec. 894.403 Are FEDVIP premiums paid on a pre-tax basis?
(a) * * * However, if your enrollment covers a stepchild who is the
child of a domestic partner as defined in Sec. 894.101, and that
stepchild does not qualify for favorable tax treatment under applicable
tax laws, the allotted amount of premium that represents the fair
market value of the FEDVIP coverage provided to the stepchild will be
separately imputed to the employee as income and subject to applicable
taxes.
* * * * *
[FR Doc. 2012-17537 Filed 7-19-12; 8:45 am]
BILLING CODE 6325-63-P