[Federal Register Volume 81, Number 81 (Wednesday, April 27, 2016)]
[Rules and Regulations]
[Page 24693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09674]



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  Federal Register / Vol. 81, No. 81 / Wednesday, April 27, 2016 / 
Rules and Regulations  

[[Page 24693]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 870

RIN 3206-AM67


Federal Employees' Group Life Insurance Program: Court Orders 
Prior to July 22, 1998

AGENCY: U.S. Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing this final 
regulation to adopt as final the interim final regulation published on 
December 4, 2012. The regulation implements section 8705 of title 5, 
United States Code regarding the effect of any court decree of divorce, 
annulment, or legal separation, or any court-approved property 
settlement agreement incident to any court decree of divorce, 
annulment, or legal separation (hereinafter ``court order'') where the 
court order expressly provides that an individual receive Federal 
Employee's Group Life Insurance (FEGLI) benefits. The regulations will 
allow court orders submitted to the appropriate Federal agency before 
July 22, 1998 to be effective for providing FEGLI benefits if the court 
order was received in the appropriate office before the insured Federal 
employee's or annuitant's death. This revision does not affect the 
current statutory limitation that court orders apply only when FEGLI 
benefits are based on insured individuals who died on or after July 22, 
1998.

DATES: This rule is effective April 27, 2016.

FOR FURTHER INFORMATION CONTACT: Marguerite Martel, Senior Policy 
Analyst, at (202) 606-0004 or email: [email protected].

SUPPLEMENTARY INFORMATION: Public Law 105-205, 112 Stat. 683, enacted 
July 22, 1998, amending section 8705 of title 5, United States Code, 
required benefits to be paid in accordance with the terms of a court 
order instead of the otherwise existing statutory order of precedence 
for payment of benefits under FEGLI. On October 8, 1999, OPM published 
a final regulation interpreting the law to mean that only those court 
orders received in the appropriate office after the date the law was 
enacted would be valid to name a FEGLI beneficiary. The regulation 
amended section 870.801(d)(2), of title 5, Code of Federal Regulations.
    Based on Pascavage v. Office of Personnel Management, 773 F. 
Supp.2d 452 (D. Del. 2011), OPM is changing this regulation to provide 
FEGLI benefits based on court orders submitted to the appropriate 
Federal agency before July 22, 1998, so long as the court order was 
received in the appropriate office before the insured Federal 
employee's or annuitant's death. This change is consistent with the 
settlement agreement in this case, Pascavage v. Office of Personnel 
Management, C.A. No.: 09-276-LPS-MPT (D. Del. filed Aug. 6, 2012).\1\ 
This revision does not affect the current statutory limitation that 
court orders apply only when FEGLI benefits are based on insured 
individuals who died on or after July 22, 1998. On December 4, 2012, 
OPM published an interim final regulation at 77 FR 71687. We received 
no comments on the interim final regulation. Therefore, OPM is adopting 
the interim final regulation with no changes.
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    \1\ The settlement agreement has been preliminarily approved by 
the Court.
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Regulatory Impact Analysis

    OPM has examined the impact of this rule as required by Executive 
Order 12866 (September 1993, Regulatory Planning and Review) and 
Executive Order 13563, which directs agencies to assess all costs and 
benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public, health, and 
safety effects, distributive impacts, and equity). A regulatory impact 
analysis must be prepared for major rules with economically significant 
effects of $100 million or more in any one year. This rule is not 
considered a major rule because OPM estimates there are relatively few 
court orders received by the appropriate office before July 22, 1998.

Paperwork Reduction Act

    This document does not contain proposed information collection 
requirements subject to the Paperwork Reduction Act of 1995, Public Law 
104-13.

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 employees, annuitants and their former 
spouses.

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.
Beth F. Cobert,
Acting Director.

PART 870--FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM

0
Accordingly, the interim rule amending 5 CFR part 870 which was 
published at 77 FR 71687 on Dceemmber 4, 2012, is adopted as a final 
rule without change.

[FR Doc. 2016-09674 Filed 4-26-16; 8:45 am]
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