[Federal Register Volume 84, Number 96 (Friday, May 17, 2019)]
[Notices]
[Pages 22525-22527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-10294]
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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; to
retiring employees who elect the alternative form of annuity, owe
certain redeposits based on refunds of contributions for service ending
before March 1, 1991, or elect to credit certain service with
nonappropriated fund instrumentalities; or, for individuals with
certain types of retirement coverage errors who can elect to receive
credit for service by taking an actuarial reduction under the
provisions of the Federal Erroneous Retirement Coverage Correction Act.
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.
[[Page 22526]]
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 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
section 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.
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. 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.
Sections 839.1114-1121 of title 5, Code of Federal Regulations,
prescribes the use of these factors for computing the reduction
required for certain service credit deposits, Government Thrift Savings
Plan contributions, or for previous payment of the FERS Basic Employee
Death Benefit in annuities subject to the Federal Erroneous Retirement
Coverage Corrections Act (FERCCA) under the provisions of Public Law
106-265. Retirees and survivors who owe a larger deposit because of a
retirement coverage error can choose to pay the additional deposit
amount or their annuity will be actuarially reduced to account for the
deposit amount that remains unpaid. Additionally, retirees and
survivors of deceased employees who received Government contributions
to their Thrift Savings Plan account after being corrected to FERS and
who later elect CSRS Offset under FERCCA keep the Government
contributions and associated earnings in their Thrift Savings Plan
account. Instead of adjusting the Thrift Savings Plan account, FERCCA
requires that the CSRS-Offset annuity be actuarially reduced. Also,
survivors that received the FERS Basic Employee Death Benefit and elect
CSRS Offset under FERCCA do not have to pay back the Basic Employee
Death Benefit. Instead, OPM actuarially reduces the survivor annuity
payable. These reductions under FERCCA allow the annuity to be
actuarially reduced in a way that, on average, allows the Fund to
recover the amount of the missing lump sum over the recipient's
lifetime.
The present value factors currently in effect were published by OPM
(80 FR 18263) on April 3, 2015. 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 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, 2019, 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, 2019. 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, 2019. 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
sections 847.603 or 847.809 of title 5, Code of Federal Regulations, is
on or after October 1, 2019. See 5 CFR 842.602, 842.616, 847.603, and
Sec. 847.809. For retirement coverage corrections under FERCCA, the
new factors will apply to annuities that commence on or after October
1, 2019, or in the case of previous payment of the Basic Employee Death
Benefit, the new factors will apply to deaths occurring on or after
October 1, 2019. See 5 CFR 839.1114-1121 and 5 CFR 831.303(d).
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 Under
Section 1132 of Public Law 107-107 or Under FERCCA 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...................................................... 351.8
41...................................................... 347.1
42...................................................... 342.2
43...................................................... 337.2
44...................................................... 332.1
45...................................................... 326.9
46...................................................... 321.6
47...................................................... 316.4
48...................................................... 311.1
[[Page 22527]]
49...................................................... 305.9
50...................................................... 300.7
51...................................................... 295.3
52...................................................... 289.8
53...................................................... 284.1
54...................................................... 278.2
55...................................................... 272.2
56...................................................... 266.0
57...................................................... 259.7
58...................................................... 253.3
59...................................................... 246.8
60...................................................... 240.2
61...................................................... 233.5
62...................................................... 226.7
63...................................................... 219.8
64...................................................... 212.9
65...................................................... 206.0
66...................................................... 199.0
67...................................................... 192.0
68...................................................... 184.9
69...................................................... 177.8
70...................................................... 170.7
71...................................................... 163.6
72...................................................... 156.5
73...................................................... 149.5
74...................................................... 142.5
75...................................................... 135.6
76...................................................... 128.8
77...................................................... 122.1
78...................................................... 115.5
79...................................................... 109.0
80...................................................... 102.7
81...................................................... 96.6
82...................................................... 90.6
83...................................................... 84.9
84...................................................... 79.4
85...................................................... 74.1
86...................................................... 69.0
87...................................................... 64.1
88...................................................... 59.6
89...................................................... 55.3
90...................................................... 51.3
91...................................................... 47.7
92...................................................... 44.2
93...................................................... 41.1
94...................................................... 38.2
95...................................................... 35.6
96...................................................... 33.2
97...................................................... 31.1
98...................................................... 29.2
99...................................................... 27.4
100..................................................... 25.9
101..................................................... 24.4
102..................................................... 23.1
103..................................................... 21.8
104..................................................... 20.5
105..................................................... 18.9
106..................................................... 17.0
107..................................................... 14.2
108..................................................... 9.5
109..................................................... 6.4
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CSRS Present Value Factors Applicable to Annuity Payable Following an
Election Under Section 1043 of Public Law 104-106 or Under Section 1132
of Public Law 107-107 or Under FERCCA
[For ages at calculation below 40]
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Present value
Age at calculation of a monthly
annuity
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17...................................................... 443.1
18...................................................... 439.8
19...................................................... 436.4
20...................................................... 432.9
21...................................................... 429.4
22...................................................... 425.9
23...................................................... 422.3
24...................................................... 418.6
25...................................................... 414.9
26...................................................... 411.2
27...................................................... 407.4
28...................................................... 403.5
29...................................................... 399.6
30...................................................... 395.6
31...................................................... 391.5
32...................................................... 387.4
33...................................................... 383.2
34...................................................... 378.9
35...................................................... 374.6
36...................................................... 370.2
37...................................................... 365.7
38...................................................... 361.2
39...................................................... 356.5
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Alexys Stanley,
Regulatory Affairs Analyst, Office of Personnel Management.
[FR Doc. 2019-10294 Filed 5-16-19; 8:45 am]
BILLING CODE 6325-38-P