[Federal Register Volume 85, Number 215 (Thursday, November 5, 2020)]
[Proposed Rules]
[Pages 70502-70507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24034]


 ========================================================================
 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. 85, No. 215 / Thursday, November 5, 2020 / 
Proposed Rules  

[[Page 70502]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 831 and 842

RIN 3206-AO07


Civil Service Retirement System and Federal Employees Retirement 
System; Correcting Miscalculations in Veterans' Pension Act

AGENCY: Office of Personnel Management.

ACTION: Proposed rule.

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

SUMMARY: The Office of Personnel Management (OPM) is issuing this 
proposed rule to implement the provisions of the ``Correcting 
Miscalculations in Veterans' Pensions Act.'' This Act provides 
authority for agencies and OPM to pay, at their discretion, interest on 
certain deposits (post-1956 military service deposits and service 
credit deposits for voluntary service with the Peace Corps and 
Volunteers in Service to America (VISTA)) when additional interest is 
assessed due to administrative error. Agencies need to establish their 
own guidelines for waiver, subject to funding limitations that may 
prevent reimbursement by the agency. These regulations also pertain to 
payments made by OPM with regard to service credit deposits for 
volunteer service.

DATES: We must receive your comments by January 4, 2021.

ADDRESSES: You may submit comments identified by docket number and/or 
Regulatory Information Number (RIN) and title, by either of the 
following methods:
     Electronic: Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.
    All submissions received must include the agency name and docket 
number or RIN for this document. The general policy for comments and 
other submissions from members of the public is to make these 
submissions available for public viewing at http://www.regulations.gov 
as they are received without change, including any personal identifiers 
or contact information.

FOR FURTHER INFORMATION CONTACT: Jane Bancroft, (202) 606-0299, Email: 
[email protected]. Include Docket No. or RIN in the subject line 
of the email.

SUPPLEMENTARY INFORMATION:

Background

    Public Law 115-352, 132 Stat. 5067 (2018) (codified at 5 U.S.C. 
101), also known as the ``Correcting Miscalculations in Veterans' 
Pensions Act,'' was enacted on December 21, 2018. Under this law, if an 
employing agency makes an administrative error in processing certain 
annuity deposits for post-1956 military service or certain volunteer 
service with the Peace Corps or Volunteers in Service to America 
(VISTA), the employing agency, or OPM in certain situations, may, at 
its discretion, pay on behalf of the employee any additional interest 
assessed due to its administrative error.
    Agencies are responsible for establishing their own guidelines for 
what constitutes administrative error and whether a payment is made. 
OPM has no role or authority in the agency's decision. Also, OPM is 
responsible for establishing its own guidelines for what constitutes 
administrative error and whether a payment is made.
    Employees covered under the Civil Service Retirement System (CSRS) 
or the Federal Employees Retirement System (FERS) with post-1956 
military service may pay a deposit plus interest to their employing 
agency for post-1956 military service. Payment of the deposit 
guarantees that the employee and survivors will continue to receive 
retirement credit for the post-1956 military service, regardless of 
entitlement to Social Security benefits at age 62. Interest on deposits 
for post-1956 military service accrues and compounds annually after a 
2-year interest-free grace period after the individual first becomes an 
employee or Member.
    Deposits for post-1956 military service are paid to the employing 
agency. The employing agency is responsible for counseling the employee 
regarding paying the deposit and the consequences of not paying the 
deposit, processing the application, calculating the deposit amount, 
billing the employee, and collecting the payment. Administrative error 
by the agency may result in an increase in the amount of interest due. 
If the administrative error results in an increase in interest due, 
then the employing agency may, at its discretion, pay on behalf of the 
employee any additional interest assessed due to its administrative 
error.
    After a CSRS or FERS employee's retirement, OPM has a 
responsibility to ensure that retirement documents are not in conflict 
regarding payment of the deposit for post-1956 military service. If 
there is conflict, then it is OPM's responsibility to resolve the 
deposit status with the agency. If the retiring employee's statements 
on the application are in conflict with the agency's certification of 
service or any other documents submitted by the agency regarding 
payment of the deposit for post-1956 military service, then it is OPM's 
responsibility to resolve the deposit status with the retiring 
employee. Administrative error by OPM may result in an increase in the 
amount of interest due. If additional interest was assessed due to 
administrative error on OPM's part, then OPM may pay on behalf of the 
employee any additional interest assessed due to its administrative 
error.
    Full-time volunteer service as a volunteer or volunteer leader with 
the Peace Corps or VISTA that was performed at any time before 
separation from federal civilian service is generally creditable under 
CSRS or FERS with payment of a service credit deposit. Though 
considered civilian service, the treatment of Peace Corps and VISTA 
volunteer service is similar to that of military service (see 5 CFR 
831, 842.307 and 842.308) in that the credit is tied to eligibility for 
Social Security benefits. Payment of the deposit guarantees that the 
employee and survivors will continue to receive retirement credit for 
the volunteer service, regardless of entitlement to Social Security 
benefits. Like the calculation of interest for military deposits, the 
interest on deposits for volunteer service accrues and compounds 
annually after a 2-year interest-free grace period. For both current 
and former employees, interest begins to accrue on deposits for 
volunteer service on October 1, 1995, or 2 years after the date on 
which the

[[Page 70503]]

individual first becomes an employee or Member, whichever is later.
    Deposits for Peace Corps and VISTA volunteer service are paid 
directly to OPM. The employing agency is responsible for counseling the 
employee regarding the deposit, and for verifying the earnings. OPM is 
responsible for processing the service credit deposit application, 
calculating the deposit, billing the employee, and collecting the 
payment.
    The decision to pay or not pay interest due to its administrative 
error on a deposit for post-1956 military service is made by the 
employing agency or OPM, depending on who is making the administrative 
error determination. The decision to pay or not pay interest due to its 
administrative error for a service credit deposit for Peace Corps/VISTA 
volunteer service is up to the employing agency or OPM, whichever 
agency is making the decision regarding administrative error. OPM has 
no role or authority in another agency's decision.
    Currently, employees interested in making service credit deposits 
for Peace Corps or VISTA volunteer service submit the service credit 
application to the employing agency for development and review. The 
agency then forwards the application to OPM for processing and billing. 
The employee pays the service credit deposit amount directly to OPM. 
This process will not change due to the implementation of Public Law 
115-352. Since both the agency and OPM have a role in processing 
service credit deposits for Peace Corps or VISTA volunteer service, 
either the employing agency or OPM could make an administrative error. 
If an administrative error results in an increase in interest due, then 
the employing agency or OPM, may, at its discretion, pay on behalf of 
the employee any additional interest assessed due to its administrative 
error.
    Public Law 115-352 specifies that if an employing agency makes an 
administrative error in processing deposits for post-1956 military 
service or full-time volunteer service as a volunteer or volunteer 
leader with the Peace Corps or VISTA that increases the amount of 
interest owed on the deposit, the employing agency or OPM (as described 
above) may pay on behalf of the employee any additional interest 
assessed due to the administrative error. Agencies are responsible for 
establishing their own guidelines for what constitutes administrative 
error and whether a payment is made. OPM has no role or authority in 
the decision.
    Public Law 115-352 also provides that, for volunteer service 
deposits, if the administrative error is committed by OPM, then OPM may 
pay on behalf of the employee any additional interest assessed due to 
the administrative error. Any payment of additional interest OPM may 
make on behalf of the employee is paid from the Civil Service 
Retirement and Disability Fund.
    This proposed rule is necessary to implement the authority so the 
employing agency or OPM, on behalf of an employee, may make interest 
payments on interest accrued due to administrative error. Until this 
legislation, there was no authority to permit payment by an agency or 
OPM of interest that accrued due to its administrative error. The 
burden to pay the additional interest was on the employee. This 
legislation should be an incentive for agencies and OPM to perform 
better and, therefore, result in fewer findings of administrative 
error.

Regulatory Impact Analysis

    OPM has examined the impact of this proposed 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. 
This proposed rule is not a ``significant regulatory action,'' under 
Executive Order 12866.

Reducing Regulation and Controlling Regulatory Costs

    This proposed rule is not an Executive Order 13771 regulatory 
action because this proposed rule is not significant under E.O. 12866.

Regulatory Flexibility Act

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

Federalism

    We have examined this proposed rule in accordance with Executive 
Order 13132, Federalism, and have determined that this proposed 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 proposed 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

    The Congressional Review Act (5 U.S.C. 801 et seq.) requires rules 
to be submitted to Congress before taking effect. OPM will submit to 
Congress and the Comptroller General of the United States a report 
regarding the issuance of this proposed rule before its effective date, 
as required by 5 U.S.C. 801. This rule is not a major rule as defined 
by the Congressional Review Act (CRA) (5 U.S.C. 804).

Paperwork Reduction Act

    This proposed rule does not impose any new reporting or record-
keeping requirements subject to the Paperwork Reduction Act.

List of Subjects

5 CFR Part 831

    Firefighters, Government employees, Income taxes, Intergovernmental 
relations, Law enforcement officers, Pensions, Reporting and 
recordkeeping requirements, Retirement.

5 CFR Part 842

    Air traffic controllers, Alimony, Firefighters, 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 proposes to amend 5 CFR parts 831 and 842 as follows:

PART 831--RETIREMENT

0
1. Revise the authority citation for part 831 to read as follows:

    Authority: 5 U.S.C. 8347; Sec. 831.102 also issued under 5 
U.S.C. 8334; Sec. 831.106 also issued under 5 U.S.C. 552a; Sec. 
831.108 also issued under 5 U.S.C. 8336(d)(2); Sec. 831.114 also 
issued under 5 U.S.C. 8336(d)(2), and Sec. 1313(b)(5) of Pub. L. 
107-296, 116 Stat. 2135; Sec. 831.201(b)(1) also issued under 5 
U.S.C. 8347(g); Sec. 831.201(b)(6) also issued under 5 U.S.C. 
7701(b)(2); Sec. 831.201(g) also issued under Secs. 11202(f), 
11232(e), and 11246(b) of Pub. L. 105-33, 111 Stat. 251; Sec. 
831.201(g) also issued under Secs. 7(b) and (e) of Pub. L.

[[Page 70504]]

105-274, 112 Stat. 2419; Sec. 831.201(i) also issued under Secs. 3 
and 7(c) of Pub. L. 105-274, 112 Stat. 2419; Sec. 831.202 also 
issued under Sec. 111 of Pub. L. 99-500, 100 Stat. 1783, and Sec. 
111 of Pub. L. 99-591, 100 Stat. 3341-348, and also Sec. 1 of Pub. 
L. 110-279, 122 Stat. 2602, as amended by Sec. 1(a) of Pub. L. 116-
21, 133 Stat. 903; Sec. 831.204 also issued under Sec. 102(e) of 
Pub. L. 104-8, 109 Stat. 102, as amended by Sec. 153 of Pub. L. 104-
134, 110 Stat. 1321; Sec. 831.205 also issued under Sec. 2207 of 
Pub. L. 106-265, 114 Stat. 784; Sec. 831.206 also issued under Sec. 
1622(b) of Pub. L. 104-106, 110 Stat. 515; Sec. 831.301 also issued 
under Sec. 2203 of Pub. L. 106-265, 114 Stat. 780; Sec. 831.303 also 
issued under 5 U.S.C. 8334(d)(2) and Sec. 2203 of Pub. L. 106-235, 
114 Stat. 780; Sec. 831.502 also issued under 5 U.S.C. 8337, and 
under Sec. 1(3), E.O. 11228, 3 CFR 1965-1965 Comp. p. 317; Sec. 
831.663 also issued under 5 U.S.C. 8339(j) and (k)(2); Secs. 831.663 
and 831.664 also issued under Sec. 11004(c)(2) of Pub. L. 103-66, 
107 Stat. 412; Sec. 831.682 also issued under Sec. 201(d) of Pub. L. 
99-251, 100 Stat. 23; Sec. 831.912 also issued under Sec. 636 of 
Appendix C to Pub. L. 106-554, 114 Stat. 2763A-164; Subpart P also 
issued under Sec. 535(d) of Title V of Division E of Pub. L. 110-
161, 121 Stat. 2042; Subpart Q also issued under 5 U.S.C. 8336a; 
Subpart V also issued under 5 U.S.C. 8343a and Sec. 6001 of Pub. L. 
100-203, 101 Stat. 1330-275; Sec. 831.2203 also issued under Sec. 
7001(a)(4) of Pub. L. 101-508, 104 Stat. 1388-328; Pub. L. 115-352, 
132 Stat. 5067.

Subpart A--Administration and General Provisions

0
2. Amend Sec.  831.105 by adding paragraph (k) to read as follows:


Sec.  831.105   Computation of interest.

* * * * *
    (k) If OPM determines that additional interest was assessed on a 
deposit for full-time volunteer service as a volunteer or a volunteer 
leader with the Peace Corps or VISTA due to its own administrative 
error, OPM may pay, on behalf of the employee, Member, or annuitant, 
any additional interest assessed due to the administrative error.

Subpart U--Deposits for Military Service

0
3. Amend Sec.  831.2107 by adding paragraph (c) to read as follows:


Sec.  831.2107   Payments on deposits.

* * * * *
    (c) Administrative error. (1) When an administrative error occurs 
by the employing agency in calculating or processing a military service 
deposit, interest assessed as a result of the administrative error may 
be paid by the agency, the Clerk of the House of Representatives, or 
the Secretary of the Senate on behalf of the employee. The agency, 
Clerk of the House of Representatives, or the Secretary of the Senate 
will determine if administrative error occurred.
    (2) When an administrative error occurs by OPM in calculating or 
processing a military service deposit, interest assessed as a result of 
the administrative error may be paid by OPM on behalf of the employee. 
OPM will determine if administrative error occurred. Any payment of 
additional interest of behalf of the employee is paid from the Civil 
Service Retirement and Disability Fund.
0
4. Add Subpart X to part 831 to read as follows:

Subpart X--Peace Corps

Sec.
831.2401 Purpose.
831.2402 Allowable service.
831.2403 Deposits for service.
831.2404 Additional interest due to administrative error.


Sec.  831.2401   Purpose.

    This subpart contains regulations of the Office of Personnel 
Management (OPM) to supplement chapter 34 of title 22, United States 
Code, concerning CSRS retirement service credit eligibility for 
satisfactory Peace Corps volunteer and volunteer leader service.


Sec.  831.2402   Allowable service.

    (a) Service credit deposits are not allowed for training periods 
prior to actual enrollment.
    (b) Service credit deposits can only be made for satisfactory 
volunteer and volunteer leader service.
    (c) Annuitants enrolling as a volunteer or volunteer leader are not 
deemed reemployed annuitants. Service as a volunteer or volunteer 
leader performed after retiring under a CSRS or FERS retirement is not 
creditable service for retirement purposes.


Sec.  831.2403   Deposits for service.

    (a) An employee or Member subject to CSRS may make a deposit for 
volunteer and volunteer leader service by filing an application in a 
form prescribed by OPM.
    (b) The deposit is based upon the amount of the stipend that was 
received. If an educational award was elected in lieu of the stipend, 
then the deposit is based on the amount of the stipend that would have 
been received.
    (c) An application to make a deposit is filed with the appropriate 
office in the employing agency, or, for Members and Congressional 
employees, with the Secretary of the Senate, or the Clerk of the House 
of Representatives, as appropriate.
    (d) Upon receipt and review of the application from the employee, 
the agency, Clerk of the House of Representatives, or Secretary of the 
Senate will submit the application to OPM for processing.
    (e) Interest begins to accrue on deposits for volunteer service on 
October 1,1995, or 2 years after the date on which the individual first 
becomes an employee or Member, whichever is later.
    (f) After becoming federally employed, there is a 2-year interest-
free grace period on Peace Corps volunteer and volunteer leader service 
deposits. After the 2-year period, interest is accrued and compounded 
annually at the variable rate beginning on the date of the expiration 
of the 2-year period.


Sec.  831.2404   Additional interest due to administrative error.

    (a) The employing agency, Clerk of the House of Representatives, or 
Secretary of the Senate, as appropriate, may pay any additional 
interest due on the deposit for volunteer or volunteer leader service 
as a result of its administrative error. OPM may pay any additional 
interest due on the deposit for Peace Corps service as a result of its 
administrative error.
    (b) The employing agency, Clerk of the House of Representatives, or 
Secretary of the Senate, as appropriate, shall set their own procedures 
for employees or Members to claim there was administrative error. OPM 
shall set its own procedures for claims of administrative error on its 
part.
    (c) The employing agency, Clerk of the House of Representatives, or 
Secretary of the Senate, as appropriate, shall determine if 
administrative error on its part caused an increase in interest due on 
the deposit amount. OPM shall determine if administrative error on its 
part caused an increase in interest due on the deposit amount.
    (d) OPM's final determination regarding a claim of administrative 
error on its part is not subject to the due process procedures 
described in 5 U.S.C. 8461(e).
0
5. Add subpart Y to part 831 to read as follows:

Subpart Y--Volunteers in Service to America (VISTA)

Sec.
831.2501 Purpose.
831.2502 Allowable service.
831.2503 Deposits for service.
831.2504 Additional interest due to administrative error.


Sec.  831.2501   Purpose.

    This subpart contains regulations of the Office of Personnel 
Management (OPM) to supplement chapter 66, title

[[Page 70505]]

42, United States Code, concerning CSRS retirement service credit 
eligibility for Volunteers in Serviced to America (VISTA) volunteers.


Sec.  831.2502   Allowable service.

    (a) Service credit deposits are not allowed for training periods 
prior to actual enrollment.
    (b) Service credit deposits can only be made for satisfactory 
volunteer service.
    (c) Annuitants enrolling as VISTA volunteers are not deemed 
reemployed annuitants. Service as a volunteer or volunteer leader 
performed after retiring under a CSRS or FERS retirement is not 
creditable serviced for retirement purposes.
    (d) Retirement credit is not allowable for training period(s) prior 
to actual enrollment.


Sec.  831.2503   Deposits for service.

    (a) An employee or Member subject to CSRS may make a deposit for 
volunteer service by filing an application in a form prescribed by OPM.
    (b) The deposit is based upon the amount of the stipend that was 
received. If an educational award was elected in lieu of the stipend, 
then the deposit is based on the amount of the stipend that would have 
been received.
    (c) An application to make a deposit is filed with the appropriate 
office in the employing agency, or, for Members and Congressional 
employees, with the Secretary of the Senate, or the Clerk of the House 
of Representatives, as appropriate.
    (d) Upon receipt and review of the application, the agency, Clerk 
of the House of Representatives, or Secretary of the Senate will submit 
the application to OPM for processing.
    (e) Interest begins to accrue on deposits for volunteer service on 
October 1,1995, or 2 years after the date on which the individual first 
becomes an employee or Member, whichever is later.
    (f) After becoming federally employed, there is a 2-year interest-
free grace period on VISTA volunteer service deposits. After the 2-year 
period, interest is accrued and compounded annually at the variable 
rate beginning on the date of the expiration of the 2-year period.
    (g) A deposit is required in order to obtain service credit for 
VISTA volunteer service for which the volunteer chose to receive an 
educational award in lieu of a stipend. The deposit is based upon the 
amount of the stipend that would have been received if he/she had 
elected to receive the stipend rather than an educational award.


Sec.  831.2504   Additional interest due to administrative error.

    (a) The employing agency, Clerk of the House of Representatives, or 
Secretary of the Senate, as appropriate, may pay any additional 
interest due on the deposit for volunteer or volunteer leader service 
as a result of its administrative error. OPM may pay any additional 
interest due on the deposit for VISTA service as a result of its 
administrative error.
    (b) The employing agency, Clerk of the House of Representatives, or 
Secretary of the Senate, as appropriate, shall set their own procedures 
for employees or Members to claim there was administrative error. OPM 
shall set its own procedures for claims of administrative error on its 
part.
    (c) The employing agency, Clerk of the House of Representatives, or 
Secretary of the Senate, as appropriate, shall determine if 
administrative error on its part caused an increase in interest due on 
the deposit amount for their employees. OPM shall determine if 
administrative error on its part caused an increase in interest due on 
the deposit amount.
    (d) OPM's final determination regarding a claim of administrative 
error on its part is not subject to the due process procedures 
described in 5 U.S.C. 8461(e).

PART 842--FEDERAL EMPLOYEES RETIREMENT SYSTEM--BASIC ANNUITY

0
1. Revise the authority citation for part 842 to read as follows:

    Authority: 5 U.S.C. 8461(g); Secs. 842.104 and 842.106 also 
issued under 5 U.S.C. 8461(n); Sec. 842.104 also issued under Secs. 
3 and 7(c) of Pub. L. 105-274, 112 Stat. 2419; Sec. 842.105 also 
issued under 5 U.S.C. 8402(c)(1) and 7701(b)(2); Sec. 842.106 also 
issued under Sec. 102(e) of Pub. L. 104-8, 109 Stat. 102, as amended 
by Sec. 153 of Pub. L. 104-134, 110 Stat. 1321-102; Sec. 842.107 
also issued under Secs. 11202(f), 11232(e), and 11246(b) of Pub. L. 
105-33, 111 Stat. 251, and Sec. 7(b) of Pub. L. 105-274, 112 Stat. 
2419; Sec. 842.108 also issued under Sec. 7(e) of Pub. L. 105-274, 
112 Stat. 2419; Sec. 842.109 also issued under Sec. 1622(b) of Pub. 
L. 104-106, 110 Stat. 515; Sec. 842.110 also issued under Sec. 111 
of Pub. L. 99-500, 100 Stat. 1783, and Sec. 111 of Pub. L. 99-591, 
100 Stat. 3341-348, and also Sec. 1 of Pub. L. 110-279, 122 Stat. 
2602, as amended by Sec. 1(a) of Pub. L. 116-21, 133 Stat. 903; Sec. 
842.208 also issued under Sec. 535(d) of Title V of Division E of 
Pub. L. 110-161, 121 Stat. 2042; Sec. 842.213 also issued under 5 
U.S.C. 8414(b)(1)(B) and Sec. 1313(b)(5) of Pub. L. 107-296, 116 
Stat. 2135; Secs. 842.304and 842.305 also issued under Sec. 321(f) 
of Pub. L. 107-228, 116 Stat. 1383, Secs. 842.604 and 842.611 also 
issued under 5 U.S.C. 8417; Sec. 842.607 also issued under 5 U.S.C. 
8416 and 8417; Sec. 842.614 also issued under 5 U.S.C. 8419; Sec. 
842.615 also issued under 5 U.S.C. 8418; Sec. 842.703 also issued 
under Sec. 7001(a)(4) of Pub. L. 101-508, 104 Stat. 1388; Sec. 
842.707 also issued under Sec. 6001 of Pub. L. 100-203, 101 Stat. 
1300; Sec. 842.708 also issued under Sec. 4005 of Pub. L. 101-239, 
103 Stat. 2106 and Sec. 7001 of Pub. L. 101-508, 104 Stat. 1388; 
Subpart H also issued under 5 U.S.C. 1104; Sec. 842.810 also issued 
under Sec. 636 of Appendix C to Pub. L. 106-554 at 114 Stat. 2763A-
164; Sec. 842.811 also issued under Sec. 226(c)(2) of Pub. Law 108-
176, 117 Stat. 2529; Subpart J also issued under Sec. 535(d) of 
Title V of Division E of Pub. L. 110-161, 121 Stat. 2042; Pub. L. 
115-352, 132 Stat. 5067.

Subpart C--Credit

0
2. Amend Sec.  842.305 by adding paragraph (k) to read as follows:


Sec.  842.305   Deposits for civilian service.

* * * * *
    (k) Administrative error. If OPM determines that additional 
interest was assessed on a deposit for full-time volunteer service as a 
volunteer or a volunteer leader with the Peace Corps or VISTA due to 
its own administrative error, OPM may pay, on behalf of the employee, 
Member, or annuitant, any additional interest assessed due to the 
administrative error.
0
3. Amend Sec.  842.307 by adding paragraph (e) to read as follows:


Sec.  842.307   Deposits for military service.

* * * * *
    (e) Administrative error. (1) When an administrative error occurs 
by the employing Agency in calculating or processing a military service 
deposit, interest assessed as a result of the administrative error may 
be paid by the agency, the Clerk of the House of Representatives, or 
the Secretary of the Senate on behalf of the employee. The agency, 
Clerk of the House of Representatives, or the Secretary of the Senate 
will determine if administrative error occurred.
    (2) When an administrative error occurs by OPM in calculating or 
processing a military service deposit, interest assessed as a result of 
the administrative error may be paid by OPM on behalf of the employee. 
OPM will determine if administrative error occurred. Any payment of 
additional interest of behalf of the employee is paid from the Civil 
Service Retirement and Disability Fund.
0
4. Add subpart K to part 842 to read as follows:

Subpart K--Peace Corps

Sec.
842.1101 Purpose.

[[Page 70506]]

842.1102 Allowable service.
842.1103 Deposits for service.
842.1104 Additional interest due to administrative error.


Sec.  842.1101   Purpose.

    This subpart contains regulations of the Office of Personnel 
Management (OPM) to supplement chapter 34 of title 22, United States 
Code, concerning FERS retirement service credit eligibility for 
satisfactory Peace Corps volunteer and volunteer leader service.


Sec.  842.1102   Allowable service.

    (a) Service credit deposits are not allowed for training periods 
prior to actual enrollment.
    (b) Service credit deposits can only be made for satisfactory 
volunteer and volunteer leader service.
    (c) Annuitants enrolling as a volunteer or volunteer leader are not 
to be deemed reemployed annuitants. Service as a volunteer or volunteer 
leader performed after retiring under a CSRS or FERS retirement is not 
creditable serviced for retirement purposes.


Sec.  842.1103   Deposits for service.

    (a) An employee or Member subject to FERS may make a deposit for 
volunteer and volunteer leader service by filing an application in a 
form prescribed by OPM.
    (b) The deposit is based upon the amount of the stipend that was 
received. If an educational award was elected in lieu of the stipend, 
then the deposit is based on the amount of the stipend that would have 
been received.
    (c) An application to make a deposit is filed with the appropriate 
office in the employing agency, or, for Members and Congressional 
employees, with the Secretary of the Senate, or the Clerk of the House 
of Representatives, as appropriate.
    (d) Upon receipt and review of the application, the agency, Clerk 
of the House of Representatives, or Secretary of the Senate will submit 
the application to OPM for processing.
    (e) Interest begins to accrue on deposits for volunteer service on 
October 1,1995, or 2 years after the date on which the individual first 
becomes an employee or Member, whichever is later.
    (f) After becoming federally employed, there is a 2-year interest-
free grace period on Peace Corps volunteer and volunteer leader service 
deposits. After the 2-year period, interest is accrued and compounded 
annually at the variable rate beginning on the date of the expiration 
of the 2-year period.


Sec.  842.1104   Additional interest due to administrative error.

    (a) The agency, Clerk of the House of Representatives, or Secretary 
of the Senate, as appropriate, may pay any additional interest due on 
the deposit for volunteer or volunteer leader service as a result of 
its administrative error. OPM may pay any additional interest due on 
the deposit for Peace Corps service as a result of its administrative 
error.
    (b) The agency, Clerk of the House of Representatives, or Secretary 
of the Senate, as appropriate, shall set their own procedures for 
employees or Members to claim there was administrative error. OPM shall 
set its own procedures for claims of administrative error on its part.
    (c) The agency, Clerk of the House of Representatives, or Secretary 
of the Senate, as appropriate, shall determine if administrative error 
on its part caused an increase in interest due on the deposit amount. 
OPM shall determine if administrative error on its part caused an 
increase in interest due on the deposit amount.
    (d) OPM's final determination regarding a claim of administrative 
error on its part is not subject to the due process procedures 
described in 5 U.S.C. 8461(e).
0
5. Add subpart L to part 842 to read as follows:

Subpart L--Volunteers in Service to America (VISTA)

Sec.
842.1201 Purpose.
842.1202 Allowable service.
842.1203 Deposits for service.
842.1204 Additional interest due to administrative error.


Sec.  842.1201   Purpose.

    This subpart contains regulations of the Office of Personnel 
Management (OPM) to supplement chapter 66, title 42, United States 
Code, concerning CSRS retirement service credit eligibility for 
Volunteers in Serviced to America (VISTA) volunteers.


Sec.  842.1202   Allowable service.

    (a) Service credit deposits are not allowed for training periods 
prior to actual enrollment.
    (b) Service credit deposits can only be made for satisfactory 
volunteer service.
    (c) Annuitants enrolling as VISTA volunteers are not deemed 
reemployed annuitants. Service as a volunteer or volunteer leader 
performed after retiring under a CSRS or FERS retirement is not 
creditable serviced for retirement purposes.
    (d) Retirement credit is not allowable for training period(s) prior 
to actual enrollment.


Sec.  842.1203   Deposits for service.

    (a) An employee or Member subject to CSRS may make a deposit for 
volunteer service by filing an application in a form prescribed by OPM.
    (b) The deposit is based upon the amount of the stipend that was 
received. If an educational award was elected in lieu of the stipend, 
then the deposit is based on the amount of the stipend that would have 
been received.
    (c) An application to make a deposit is filed with the appropriate 
office in the employing agency, or, for Members and Congressional 
employees, with the Secretary of the Senate, or the Clerk of the House 
of Representatives, as appropriate.
    (d) Upon receipt and review of the application, the agency, Clerk 
of the House of Representatives, or Secretary of the Senate will submit 
the application to OPM for processing.
    (e) Interest begins to accrue on deposits for volunteer service on 
October 1,1995, or 2 years after the date on which the individual first 
becomes an employee or Member, whichever is later.
    (f) After becoming federally employed, there is a 2-year interest-
free grace period on VISTA volunteer service deposits. After the 2-year 
period, interest is accrued and compounded annually at the variable 
rate beginning on the date of the expiration of the 2-year period.
    (g) A deposit is required in order to obtain service credit for 
VISTA volunteer service for which the volunteer chose to receive an 
educational award in lieu of a stipend. The deposit is based upon the 
amount of the stipend that would have been received if he/she had 
elected to receive the stipend rather than an educational award.


Sec.  842.1204   Additional interest due to administrative error.

    (a) The agency, Clerk of the House of Representatives, or Secretary 
of the Senate, as appropriate, may pay any additional interest due on 
the deposit for volunteer or volunteer leader service as a result of 
its administrative error. OPM may pay any additional interest due on 
the deposit for VISTA service as a result of its administrative error.
    (b) The agency, Clerk of the House of Representatives, or Secretary 
of the Senate, as appropriate, shall set their own procedures for 
employees or Members to claim there was administrative error. OPM shall 
set its

[[Page 70507]]

own procedures for claims of administrative error on its part.
    (c) The agency, Clerk of the House of Representatives, or Secretary 
of the Senate, as appropriate, shall determine if administrative error 
on its part caused an increase in interest due on the deposit amount. 
OPM shall determine if administrative error on its part caused an 
increase in interest due on the deposit amount.
    (d) OPM's final determination regarding a claim of administrative 
error on its part is not subject to the due process procedures 
described in 5 U.S.C. 8461(e).

[FR Doc. 2020-24034 Filed 11-4-20; 8:45 am]
BILLING CODE 6325-38-P