[Federal Register Volume 84, Number 96 (Friday, May 17, 2019)]
[Notices]
[Pages 22527-22529]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-10293]
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OFFICE OF PERSONNEL MANAGEMENT
Federal Employees' 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 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 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: The revised present value factors apply to survivor reductions
or employee annuities that commence on or after October 1, 2019.
ADDRESSES: Send requests for actuarial assumptions and data to the
Board of Actuaries, care of Gregory Kissel, Senior Actuary, Office of
Healthcare and Insurance, Office of Personnel Management, Room 4316,
1900 E Street NW, Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT: Karla Yeakle, (202) 606-0299.
SUPPLEMENTARY INFORMATION: Several provisions of the Federal Employees'
Retirement System (FERS) 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 842.706(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. 8420a. 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 5
CFR 842.706(a).
[[Page 22528]]
Section 842.615 of title 5, Code of Federal Regulations, prescribes
the use of these factors for computing the reduction required for
certain elections to provide survivor annuity benefits based on a post-
retirement marriage or divorce under 5 U.S.C. 8416(b), 8416(c), or
8417(b). 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.
Subpart F of part 847 of title 5, Code of Federal Regulations,
prescribes the use of present value 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. Subpart I of part
847 of title 5, Code of Federal Regulations, prescribes the use of
present value factors for employees that elect to credit
nonappropriated fund instrumentality service to qualify for immediate
retirement under section 1132 of Public Law 107-107.
OPM published the present value factors currently in effect on
April 3, 2015, at 80 FR 18265. On May 17, 2019, 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 assumptions adopted by the Board of Actuaries of the Civil
Service Retirement System. Under 5 U.S.C. 8461(i), those changes
require corresponding changes in the present value factors used to
produce actuarially equivalent benefits when required by the FERS Act.
The revised factors will become effective on October 1, 2019, to
correspond with the changes in FERS normal cost percentages. For
alternative forms of annuity, the new factors will apply to annuities
that commence on or after October 1, 2019. See 5 CFR 842.706. For
survivor election deposits, the new factors will apply to survivor
reductions that commence on or after October 1, 2019. See 5 CFR
842.615(b). For obtaining credit for service with certain
nonappropriated fund instrumentalities, the new factors will apply to
cases in which the date of computation under 5 CFR 847.603or 847.809 is
on or after October 1, 2019. See 5 CFR 842.602, 842.616, 847.603, and
847.809.
OPM is, therefore, revising the tables of present value factors to
read as follows:
Table I--FERS Present Value Factors for Ages 62 and Older
[Applicable to annuity payable following an election under 5 U.S.C.
8416(b), 8416(c), 8417(b), 8420a, under section 1043 of Public Law 104-
106, or under section 1132 of Public Law 107-107.]
------------------------------------------------------------------------
Present value
Age factor
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62...................................................... 213.9
63...................................................... 207.8
64...................................................... 201.6
65...................................................... 195.4
66...................................................... 189.1
67...................................................... 182.7
68...................................................... 176.3
69...................................................... 169.8
70...................................................... 163.3
71...................................................... 156.8
72...................................................... 150.3
73...................................................... 143.8
74...................................................... 137.3
75...................................................... 130.9
76...................................................... 124.5
77...................................................... 118.2
78...................................................... 112.0
79...................................................... 105.9
80...................................................... 99.9
81...................................................... 94.1
82...................................................... 88.4
83...................................................... 83.0
84...................................................... 77.7
85...................................................... 72.6
86...................................................... 67.7
87...................................................... 63.0
88...................................................... 58.6
89...................................................... 54.5
90...................................................... 50.6
91...................................................... 47.0
92...................................................... 43.7
93...................................................... 40.6
94...................................................... 37.8
95...................................................... 35.2
96...................................................... 32.9
97...................................................... 30.8
98...................................................... 28.9
99...................................................... 27.2
100..................................................... 25.7
101..................................................... 24.3
102..................................................... 23.0
103..................................................... 21.7
104..................................................... 20.4
105..................................................... 18.9
106..................................................... 17.0
107..................................................... 14.2
108..................................................... 9.4
109..................................................... 6.4
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Table II.A--FERS Present Value Factors for Ages 40 Through 61
[Applicable to annuity payable when annuity is not increased by cost-of-
living adjustments before age 62 following an election under 5 U.S.C.
8416(b), 8416(c), 8417(b), Sec. 8420a, under section 1043 of Public
Law 104-106, or under section 1132 of Public Law 107-107.]
------------------------------------------------------------------------
Present value
Age factor
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40...................................................... 244.2
41...................................................... 243.3
42...................................................... 242.3
43...................................................... 241.2
44...................................................... 240.0
45...................................................... 238.9
46...................................................... 237.7
47...................................................... 236.5
48...................................................... 235.4
49...................................................... 234.3
50...................................................... 233.2
51...................................................... 232.0
52...................................................... 230.8
53...................................................... 229.5
54...................................................... 228.0
55...................................................... 226.4
56...................................................... 224.8
57...................................................... 223.1
58...................................................... 221.4
59...................................................... 219.6
60...................................................... 217.7
61...................................................... 215.8
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Table II.B--FERS Present Value Factors for Ages 40 Through 61
[Applicable to annuity payable when annuity is increased by cost-of-
living adjustments before age 62 following an election under 5 U.S.C.
8416(b), 8416(c), 8417(b), or 8420a, under section 1043 of Public Law
104-106, or under section 1132 of Public Law 107-107]
------------------------------------------------------------------------
Present value
Age factor
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40...................................................... 319.8
41...................................................... 316.0
42...................................................... 312.1
43...................................................... 308.0
44...................................................... 303.8
45...................................................... 299.6
46...................................................... 295.3
47...................................................... 290.9
48...................................................... 286.6
49...................................................... 282.2
50...................................................... 277.9
51...................................................... 273.3
52...................................................... 268.7
53...................................................... 263.8
54...................................................... 258.8
55...................................................... 253.6
56...................................................... 248.3
57...................................................... 242.9
58...................................................... 237.3
59...................................................... 231.6
60...................................................... 225.8
61...................................................... 219.9
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[[Page 22529]]
Table III--FERS Present Value Factors for Ages at Calculation Below 40
[Applicable to annuity payable following an election under section 1043
of Public Law 104-106 or under section 1132 of Public Law 107-107.]
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Present value
Age at calculation of a monthly
annuity
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17...................................................... 389.9
18...................................................... 387.4
19...................................................... 384.9
20...................................................... 382.4
21...................................................... 379.8
22...................................................... 377.2
23...................................................... 374.5
24...................................................... 371.8
25...................................................... 369.0
26...................................................... 366.1
27...................................................... 363.3
28...................................................... 360.3
29...................................................... 357.3
30...................................................... 354.2
31...................................................... 351.1
32...................................................... 347.9
33...................................................... 344.7
34...................................................... 341.3
35...................................................... 337.9
36...................................................... 334.5
37...................................................... 330.9
38...................................................... 327.3
39...................................................... 323.6
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Alexys Stanley,
Regulatory Affairs Analyst, Office of Personnel Management.
[FR Doc. 2019-10293 Filed 5-16-19; 8:45 am]
BILLING CODE 6325-38-P