[Federal Register Volume 85, Number 184 (Tuesday, September 22, 2020)]
[Rules and Regulations]
[Pages 59378-59380]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20784]


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OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 843

RIN 3206-AO03


Federal Employees' Retirement System; Present Value Conversion 
Factors for Spouses of Deceased Separated Employees

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is adopting its 
proposed rule to revise the table of reduction factors for early 
commencing dates of survivor annuities for spouses of separated 
employees who die before the date on which they would be eligible for 
unreduced deferred annuities, and to revise the annuity factor for 
spouses of deceased employees who die in service when those spouses 
elect to receive the basic employee death benefit in 36 installments 
under the Federal Employees' Retirement System (FERS) Act of 1986. 
These rules are necessary to ensure that the tables conform to the 
economic and demographic assumptions adopted by the Board of Actuaries 
and published in the Federal Register on April 6, 2020, as required by 
the United States Code.

DATES: This rule becomes effective on October 1, 2020.

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

SUPPLEMENTARY INFORMATION: On April 6, 2020, OPM published at 85 FR 
19174, a notice in the Federal Register to revise the normal cost 
percentages under the Federal Employees' Retirement System (FERS) Act 
of 1986, Public Law 99-335, 100 Stat. 514, as amended, based on 
economic assumptions and demographic factors adopted by the Board of 
Actuaries of the Civil Service Retirement System. By statute under 5 
U.S.C. 8461(i), the revisions to the actuarial assumptions require 
corresponding changes in factors used to produce actuarially equivalent 
benefits when required by the FERS Act. As a result, on July 2, 2020, 
at 85 FR 39852, OPM published a proposed rule in the Federal Register 
to revise the table of reduction factors in Appendix A to subpart C of 
part 843, Code of Federal Regulations, for early commencing dates of 
survivor annuities for spouses of separated employees who die before 
the date on which they would be eligible for unreduced deferred 
annuities, and to revise the annuity factor for spouses of deceased 
employees who die in service when those spouses elect to receive the 
basic employee death benefit in 36 installments under 5 CFR 843.309. 
OPM received no written comments on the proposed rule.

Regulatory Impact Analysis

    OPM has examined the impact of this rule as required by Executive 
Order 12866 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 was not designated as a ``significant regulatory 
action,'' under Executive Order 12866.

[[Page 59379]]

Reducing Regulation and Controlling Regulatory Costs

    This rule is not an E.O. 13771 regulatory action because this rule 
is related to agency organization, management, or personnel.

Regulatory Flexibility Act

    The Office of Personnel Management certifies that this rule will 
not have a significant economic impact on a substantial number of small 
entities.

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.

Civil Justice Reform

    This regulation meets the applicable standard set forth in 
Executive Order 12988.

Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by state, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any year and it will not significantly or uniquely 
affect small governments. Therefore, no actions were deemed necessary 
under the provisions of the Unfunded Mandates Reform Act of 1995.

Congressional Review Act

    This action pertains to agency management, personnel, and 
organization and does not substantially affect the rights or 
obligations of nonagency parties and, accordingly, is not a ``rule'' as 
that term is used by the Congressional Review Act (Subtitle E of the 
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)). 
Therefore, the reporting requirement of 5 U.S.C. 801 does not apply.

Paperwork Reduction Act

    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall any person be subject to a penalty for failure 
to comply with a collection of information subject to the requirements 
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid Office 
of Management and Budget (OMB) Control Number.
    This rule involves an OMB approved collection of information 
subject to the PRA Application for Death Benefits (FERS)/Documentation 
and Elections in Support of Application for Death Benefits when 
Deceased was an Employee at the Time of Death (FERS), 3206-0172. The 
public reporting burden for this collection is estimated to average 60 
minutes per response, including time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information. The 
total burden hour estimate for this form is 16,751 hours. The systems 
of record notice for this collection is: OPM SORN CENTRAL-1-Civil 
Service Retirement and Insurance Records.

List of Subjects in 5 CFR Part 843

    Air traffic controllers, Disability benefits, Firefighters, 
Government employees, Law enforcement officers, Pensions, Retirement.

Office of Personnel Management.
Alexys Stanley,
Regulatory Affairs Analyst.

    For the reasons stated in the preamble, the Office of Personnel 
Management amends 5 CFR part 843 as follows:

PART 843--FEDERAL EMPLOYEES RETIREMENT SYSTEM--DEATH BENEFITS AND 
EMPLOYEE REFUNDS

0
1. The authority citation for part 843 is revised to read as follows:

    Authority: 5 U.S.C. 8461; 843.205, 843.208, and 843.209 also 
issued under 5 U.S.C. 8424; 843.309 also issued under 5 U.S.C. 8442; 
843.406 also issued under 5 U.S.C. 8441.


0
2. In Sec.  843.309, revise paragraph (b)(2) to read as follows:


Sec.  843.309  Basic employee death benefit.

* * * * *
    (b) * * *
    (2) For deaths occurring on or after October 1, 2020, 36 equal 
monthly installments of 2.95307 percent of the amount of the basic 
employee death benefit.
* * * * *

0
3. Revise Appendix A to subpart C of part 843 to read as follows:

Appendix A to Subpart C of Part 843--Present Value Conversion Factors 
for Earlier Commencing Date of Annuities of Current and Former Spouses 
of Deceased Separated Employees

    With at least 10 but less than 20 years of creditable service--

------------------------------------------------------------------------
  Age of separated  employee at birthday  before death      Multiplier
------------------------------------------------------------------------
26......................................................           .1014
27......................................................           .1077
28......................................................           .1144
29......................................................           .1215
30......................................................           .1290
31......................................................           .1370
32......................................................           .1454
33......................................................           .1544
34......................................................           .1641
35......................................................           .1742
36......................................................           .1852
37......................................................           .1963
38......................................................           .2090
39......................................................           .2216
40......................................................           .2348
41......................................................           .2498
42......................................................           .2657
43......................................................           .2822
44......................................................           .3007
45......................................................           .3197
46......................................................           .3409
47......................................................           .3625
48......................................................           .3860
49......................................................           .4114
50......................................................           .4386
51......................................................           .4681
52......................................................           .4997
53......................................................           .5336
54......................................................           .5703
55......................................................           .6095
56......................................................           .6527
57......................................................           .6994
58......................................................           .7499
59......................................................           .8047
60......................................................           .8642
61......................................................           .9291
------------------------------------------------------------------------

    With at least 20, but less than 30 years of creditable service--

------------------------------------------------------------------------
  Age of separated  employee at birthday  before death      Multiplier
------------------------------------------------------------------------
36......................................................           .2142
37......................................................           .2272
38......................................................           .2418
39......................................................           .2566
40......................................................           .2720
41......................................................           .2894
42......................................................           .3078
43......................................................           .3270
44......................................................           .3484
45......................................................           .3705
46......................................................           .3949
47......................................................           .4201
48......................................................           .4473
49......................................................           .4767
50......................................................           .5082
51......................................................           .5423
52......................................................           .5788
53......................................................           .6180
54......................................................           .6605
55......................................................           .7060
56......................................................           .7558
57......................................................           .8096
58......................................................           .8680
59......................................................           .9312
------------------------------------------------------------------------

    With at least 30 years of creditable service--

[[Page 59380]]



------------------------------------------------------------------------
                                              Multiplier by separated
                                             employee's year of birth
 Age of separated  employee at birthday  -------------------------------
              before death                                   From 1950
                                            After 1966     through 1966
------------------------------------------------------------------------
46......................................           .4881           .5228
47......................................           .5194           .5563
48......................................           .5531           .5924
49......................................           .5894           .6314
50......................................           .6283           .6730
51......................................           .6704           .7180
52......................................           .7154           .7662
53......................................           .7638           .8181
54......................................           .8162           .8741
55......................................           .8725           .9345
56......................................           .9338          1.0000
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[FR Doc. 2020-20784 Filed 9-21-20; 8:45 am]
BILLING CODE 6325-38-P