[Federal Register Volume 79, Number 98 (Wednesday, May 21, 2014)]
[Notices]
[Pages 29225-29226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-11762]


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OFFICE OF PERSONNEL MANAGEMENT


Civil Service Retirement System; Present Value Factors

AGENCY: Office of Personnel Management.

ACTION: Notice.

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SUMMARY: The Office of Personnel Management (OPM) is providing notice 
of adjusted present value factors applicable to retirees under the 
Civil Service Retirement System (CSRS) who elect to provide survivor 
annuity benefits to a spouse based on post-retirement marriage and to 
retiring employees who elect the alternative form of annuity, owe 
certain redeposits based on refunds of contributions for service before 
March 1, 1991, or elect to credit certain service with nonappropriated 
fund instrumentalities. This notice is necessary to conform the present 
value factors to changes in the economic and demographic assumptions 
adopted by the Board of Actuaries of the Civil Service Retirement 
System.

DATES: Effective Date: The revised present value factors apply to 
survivor reductions or employee annuities that commence on or after 
October 1, 2014.

ADDRESSES: Send requests for actuarial assumptions and data to the 
Board of Actuaries, care of Gregory Kissel, Senior Actuary, Office of 
Planning and Policy Analysis, Office of Personnel Management, Room 
4307, 1900 E Street NW., Washington, DC 20415.

FOR FURTHER INFORMATION CONTACT: Karla Yeakle, (202) 606-0299.

SUPPLEMENTARY INFORMATION: Several provisions of CSRS require reduction 
of annuities on an actuarial basis. Under each of these provisions, OPM 
is required to issue regulations on the method of determining the 
reduction to ensure that the present value of the reduced annuity plus 
a lump-sum equals, to the extent practicable, the present value of the 
unreduced benefit. The regulations for each of these benefits provide 
that OPM will publish a notice in the Federal Register whenever it 
changes the factors used to compute the present values of these 
benefits.
    Section 831.2205(a) of title 5, Code of Federal Regulations, 
prescribes the method for computing the reduction in the beginning rate 
of annuity payable to a retiree who elects an alternative form of 
annuity under 5 U.S.C. 8343a. That reduction is required to produce an 
annuity that is the actuarial equivalent of the annuity of a retiree 
who does not elect an alternative form of annuity. The present value 
factors listed below are used to compute the annuity reduction under 
Sec.  831.2205(a) of title 5, Code of Federal Regulations.
    Section 831.303(c) of title 5, Code of Federal Regulations, 
prescribes the use of these factors for computing the reduction to 
complete payment of certain redeposits of refunded deductions based on 
periods of service that ended before March 1, 1991, under section 
8334(d)(2) of title 5, United States Code; section 1902 of the National 
Defense Authorization Act for Fiscal Year 2010, Public Law 111-84.
    Section 831.663 of Title 5, Code of Federal Regulations, prescribes 
the use of similar factors for computing the reduction required for 
certain elections to provide survivor annuity benefits based on a post-
retirement marriage under section 8339(j)(5)(C) or (k)(2) of title 5, 
United States Code. Under section 11004 of the Omnibus Budget 
Reconciliation Act of 1993, Public Law 103-66, effective October 1, 
1993, OPM ceased collection of these survivor election deposits by 
means of either a lump-sum payment or installments. Instead, OPM is 
required to establish a permanent actuarial reduction in the annuity of 
the retiree. This means that OPM must take the amount of the deposit 
computed under the old law and translate it into a lifetime reduction 
in the retiree's benefit. The reduction is based on actuarial tables, 
similar to those used for alternative forms of annuity under section 
8343a of title 5, United States Code.
    Subpart F of part 847 of title 5, Code of Federal Regulations, 
prescribes the use of similar factors for computing the deficiency the 
retiree must pay to receive credit for certain service with 
nonappropriated fund instrumentalities made creditable by an election 
under section 1043 of Public Law 104-106.
    The present value factors currently in effect were published by OPM 
(76 FR 32241) on June 3, 2011. On May 21, 2014 OPM published a notice 
to revise the normal cost percentage under the Federal Employees' 
Retirement System (FERS) Act of 1986, Public Law 99-335, based on 
changed economic assumptions and demographic assumptions adopted by the 
Board of Actuaries of the CSRS. Those changes require corresponding 
changes in CSRS normal costs and present value factors used to produce 
actuarially equivalent benefits when required by the Civil Service 
Retirement Act. The revised factors will become effective on October 1, 
2014, to correspond with the changes in CSRS normal cost percentages. 
For alternative forms of annuity and redeposits of employee 
contributions, the new factors will apply to annuities that commence on 
or after October 1, 2014. See 5 CFR 831.2205 and 831.303(c). For 
survivor election deposits, the new factors will apply to survivor 
reductions that commence on or after October 1, 2014. See 5 CFR 
831.663(c) and (d). For obtaining credit for service with certain 
nonappropriated fund instrumentalities, the new factors will apply to 
cases in which the date of computation under Sec.  847.603 of title 5, 
Code of Federal Regulations, is on or after October 1, 2014. See 5 CFR 
847.602(c) and 847.603.
    OPM is, therefore, revising the tables of present value factors to 
read as follows:

  CSRS Present Value Factors Applicable to Annuity Payable Following an
   Election Under Section 8339(j) or (k) or Section 8343a of Title 5,
   United States Code, or Under Section 1043 of Public Law 104-106 or
Following a Redeposit Under Section 8334(d)(2) of Title 5, United States
                                  Code
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                                                           Present value
                           Age                                factor
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40......................................................           324.2
41......................................................           320.4
42......................................................           316.4
43......................................................           312.4
44......................................................           308.2
45......................................................           303.8
46......................................................           299.4
47......................................................           294.7
48......................................................           290.0
49......................................................           285.0
50......................................................           280.0
51......................................................           274.9
52......................................................           269.7
53......................................................           264.5
54......................................................           259.1
55......................................................           253.6
56......................................................           248.0
57......................................................           242.3
58......................................................           236.5
59......................................................           230.5
60......................................................           224.4
61......................................................           218.3
62......................................................           212.1
63......................................................           205.8
64......................................................           199.4
65......................................................           192.9
66......................................................           186.4
67......................................................           179.9
68......................................................           173.3
69......................................................           166.7

[[Page 29226]]

 
70......................................................           160.0
71......................................................           153.4
72......................................................           146.7
73......................................................           140.1
74......................................................           133.5
75......................................................           127.0
76......................................................           120.7
77......................................................           114.4
78......................................................           108.3
79......................................................           102.3
80......................................................            96.5
81......................................................            90.9
82......................................................            85.4
83......................................................            80.2
84......................................................            75.2
85......................................................            70.3
86......................................................            65.7
87......................................................            61.2
88......................................................            56.9
89......................................................            52.9
90......................................................            49.2
91......................................................            45.7
92......................................................            42.4
93......................................................            39.5
94......................................................            36.8
95......................................................            34.4
96......................................................            32.3
97......................................................            30.3
98......................................................            28.6
99......................................................            26.9
100.....................................................            25.4
101.....................................................            24.1
102.....................................................            22.8
103.....................................................            21.6
104.....................................................            20.8
105.....................................................            20.2
106.....................................................            19.3
107.....................................................            17.7
108.....................................................            14.8
109.....................................................             9.5
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  CSRS Present Value Factors Applicable to Annuity Payable Following an
            Election Under Section 1043 of Public Law 104-106
                   [For ages at calculation below 40]
------------------------------------------------------------------------
                                                           Present value
                   Age at calculation                      of a monthly
                                                              annuity
------------------------------------------------------------------------
17......................................................           393.7
18......................................................           391.3
19......................................................           388.8
20......................................................           386.3
21......................................................           383.8
22......................................................           381.2
23......................................................           378.5
24......................................................           375.8
25......................................................           373.0
26......................................................           370.2
27......................................................           367.3
28......................................................           364.4
29......................................................           361.4
30......................................................           358.4
31......................................................           355.3
32......................................................           352.1
33......................................................           348.9
34......................................................           345.6
35......................................................           342.2
36......................................................           338.7
37......................................................           335.2
38......................................................           331.6
39......................................................           328.0
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U.S. Office of Personnel Management.
Katherine Archuleta,
Director.
[FR Doc. 2014-11762 Filed 5-20-14; 8:45 am]
BILLING CODE 6325-38-P