[Federal Register Volume 79, Number 199 (Wednesday, October 15, 2014)]
[Proposed Rules]
[Pages 61788-61790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-24488]


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

  Federal Register / Vol. 79, No. 199 / Wednesday, October 15, 2014 / 
Proposed Rules  

[[Page 61788]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 870

RIN 3206-AN04


Federal Employees' Group Life Insurance Program: Providing Option 
C Coverage for Children of Same-Sex Domestic Partners

AGENCY: U.S. Office of Personnel Management.

ACTION: Proposed rule.

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

SUMMARY: The United States Office of Personnel Management (OPM) is 
issuing a proposed rule to amend the Federal Employees' Group Life 
Insurance (FEGLI) regulations to allow children of same-sex domestic 
partners living in states that do not allow same-sex couples to marry 
to be covered as family members under an eligible individual's FEGLI 
Option C enrollment. This rule expands the circumstances under which an 
employee experiencing a change in family circumstances may include 
eligible children of a same-sex domestic partner.

DATES: Comments are due on or before December 15, 2014.

ADDRESSES: Send written comments to Ronald Brown, Policy Analyst, 
Planning & Policy Analysis, Office of Personnel Management, 1900 E 
Street NW., Washington, DC 20415-9700; or deliver to OPM, Room 2309, 
1900 E Street NW., Washington, DC; or FAX to (202) 606-0636. Comments 
may also be sent through the Federal eRulemaking Portal at: http://www.regulations.gov. All submissions received through the Portal must 
include the agency name and docket number or the Regulation Identifier 
Number (RIN) for this rulemaking.

FOR FURTHER INFORMATION CONTACT: Ronald Brown, Policy Analyst, (202) 
606-0004, or by email to [email protected].

SUPPLEMENTARY INFORMATION: This proposed rule is intended to: (1) 
Extend eligibility as a stepchild under FEGLI Option C to children of 
same-sex domestic partners of Federal employees or annuitants in states 
where same-sex couples are not permitted to marry; (2) amend 5 CFR Part 
870 to provide that acquiring a child or children of an employee's 
same-sex domestic partner as described in Part 870 will be treated as a 
change in family circumstances so that a waiver of Basic insurance or 
Optional insurance may be cancelled; and (3) make other non-
substantive, technical conforming amendments to the FEGLI rules in 
connection with the extension of coverage to children of same-sex 
domestic partners of Federal employees.
    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. That Presidential 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.
    Since OPM made its recommendations to the President, the Agency has 
determined that coverage under the FEGLI Program as a family member 
under Option C may be extended to the children of the same-sex domestic 
partners of Federal employees and annuitants. 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.
    To maintain consistency across the Federal benefits programs, the 
definitions of domestic partner and domestic partnership mirror those 
governing the Federal Employees Health Benefits Program (FEHBP) and the 
Federal Employees Dental and Vision Insurance Program (FEDVIP). For the 
reasons cited in the FEHBP and FEDVIP final regulation at 78 FR 64873, 
this includes a requirement that the employee or annuitant enrolled in 
Option C coverage reside in a state that does not recognize same-sex 
marriage. Also, this proposed rule adds a definition of ``stepchild'' 
to Part 870 to denote the child of an enrollee's spouse or same-sex 
domestic partner the same as in FEHBP and FEDVIP.
    We recognize that the legal landscape is changing and certain 
states that currently do not allow same-sex couples to marry may allow 
them to do so in the future. Same-sex couples may also relocate from 
states where they cannot marry to states where they are permitted to 
marry. The possibility that the relevant state marriage laws may change 
has the potential to create significant administrative difficulties. 
For this reason, eligibility to elect Option C FEGLI coverage will be 
determined at the time the employee has a change in family 
circumstances (including marriage or divorce, a spouse's death, or 
acquisition of eligible child(ren)) and files an election with his or 
her employing office as provided by FEGLI regulation. Eligibility will 
depend on whether an enrollee seeking to cover the child of his or her 
domestic partner lives in a state that does not authorize same-sex 
marriage. This change can be found in section 870.302.
    This regulation also adds to the events that constitute a change in 
family circumstances for employees, annuitants or compensationers who 
have Option C insurance under the FEGLI Program. The regulation amends 
Part 870 to provide that an employee who waived FEGLI Basic insurance 
or Optional insurance may cancel the waiver and become covered upon 
acquiring an eligible stepchild, if all eligibility requirements are 
met. Please see the changes to sections 870.503 and 870.506.

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

[[Page 61789]]

additional groups to the list of groups eligible for coverage under 
FEGLI.

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 in 5 CFR Part 870

    Administrative practice and procedure, Government employees, 
Hostages, Iraq, Kuwait, Lebanon, Life Insurance, Retirement.

    U.S. Office of Personnel Management.
Katherine Archuleta,
Director.
    Accordingly, OPM is proposing to amend 5 CFR as follows:

PART 870--FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM

0
1. The authority citation for 5 CFR part 870 continues to read as 
follows:

    Authority:  5 U.S.C. 8716; Subpart J also issued under section 
599C of Pub. L. 101-513, 104 Stat. 2064, as amended; Sec. 
870.302(a)(3)(ii) also issued under section 153 of Pub. L. 104-134, 
110 Stat. 1321; Sec. 870.302(a)(3) also issued under sections 
11202(f), 11232(e), and 11246(b) and (c) of Pub. L. 105-33, 111 
Stat. 251, and section 7(e) of Pub. L. 105-274, 112 Stat. 2419; Sec. 
870.302(a)(3) also issued under section 145 of Pub. L. 106-522, 114 
Stat. 2472; Secs. 870.302(b)(8), 870.601(a), and 870.602(b) also 
issued under Pub. L. 110-279, 122 Stat. 2604.

Subpart A--Administration and General Provisions

0
2. In Sec.  870.101, add the definitions of ``domestic partner'', 
``domestic partnership'', and ``stepchild'' in alphabetical order to 
read as follows:


Sec.  870.101  Definitions.

* * * * *
    Domestic partner means a person in a domestic partnership with an 
employee, annuitant, or compensationer enrolled in Option C.
* * * * *
    Domestic partnership means 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;
    (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; and
    (x) Certify that they would marry but for the failure of their 
state of residence to permit same-sex marriage.
* * * * *
    Stepchild means the child of an enrollee's spouse or domestic 
partner and shall continue to refer to such child in the event of the 
enrollee's divorce from the spouse, termination of the domestic 
partnership, or death of the spouse or domestic partner, so long as the 
child continues to live with the enrollee in a regular parent-child 
relationship.
* * * * *

Subpart C--Eligibility

0
3. In Sec.  870.302 amend by revising paragraph (a)(5) to read as 
follows:


Sec.  870.302  Exclusions.

    (a) * * *
    (5) The child who otherwise meets the requirements for life 
insurance coverage but whose parent enrollee and his or her domestic 
partner live in a state or whose parent enrollee and his or her 
domestic partner maintain a common residence in a state that has 
authorized marriage by same-sex couples by the day prior to the date of 
notice of the election to the employing office or the day prior to the 
first day of an open enrollment period.
* * * * *
0
4. Section 870.304 is added to read as follows:


Sec.  870.304  Eligibility of stepchildren under Option C.

    (a) Stepchildren are eligible for coverage as family members under 
Option C.
    (b) (1) For purposes of this part, to qualify for coverage as a 
stepchild, the child must be the child of the insured employee, 
annuitant or compensationer's spouse or domestic partner.
    (2) For purposes of this section, the term ``domestic partner'' is 
as defined in section 870.101 of this part.
    (3) An enrollee or his or her domestic partner must notify the 
employing office within thirty calendar days in the event that any of 
the conditions of domestic partnership found in the definition section 
of 870.101 of this part are no longer met, in which case a domestic 
partnership will be deemed terminated.
    (4) Notwithstanding the provisions of paragraph (b)(1) of this 
section, the child who otherwise meets the requirements for life 
insurance coverage but whose parent enrollee and his or her domestic 
partner live in a state or whose parent enrollee and his or her 
domestic partner maintain a common residence in a state that has 
authorized marriage by same-sex couples, shall not be considered a 
stepchild. For enrollment changes involving the addition of a new 
stepchild, as defined by this regulation, the determination of whether 
a state's marriage laws render the child ineligible for coverage shall 
be made at the time the employee notifies the employing office of his 
or her desire to cover the child.

Subpart E--Coverage

0
5. Section 870.503 is amended by revising paragraph (b)(3) to read as 
follows:


Sec.  870.503  Basic insurance: Cancelling a waiver.

* * * * *
    (b) * * *
    (3) The employee has a change in family circumstances (marriage or 
divorce, a spouse's death or acquisition of an eligible child) and 
files an election as provided in paragraph (b)(3(i), (b)(3)(ii), or 
(b)(3)(iii) of this section. Except as provided in paragraph 
(b)(3)(iii), the effective date of Basic insurance elected under this 
paragraph (b)(3) is the 1st day the employee actually enters on duty in 
a pay status on or after the day the employing office receives the 
election.
* * * * *

[[Page 61790]]

0
6. Section 870.506 is amended by revising paragraphs (a)(2) and 
(a)(4)(i) to read as follows:


Sec.  870.506  Optional insurance: Cancelling a waiver.

    (a) * * *
    (2) An employee who has waived Options A and B coverage may elect 
coverage, and an employee who has fewer than 5 multiples of Option B 
may increase the number of multiples, upon his or her marriage or 
divorce, upon a spouse's death, or upon acquisition of an eligible 
child.
    * * *
    (4)(i) An employee who has waived Option C may elect it, and an 
employee who has fewer than 5 multiples of Option C may increase the 
number of multiples, upon his or her marriage, or acquisition of an 
eligible child or stepchild(ren). An employee who has Option C may also 
elect or increase Option C coverage upon divorce or death of a spouse, 
if the employee has any eligible children or stepchild(ren).
* * * * *
[FR Doc. 2014-24488 Filed 10-14-14; 8:45 am]
BILLING CODE 6325-63-P