[Federal Register Volume 86, Number 183 (Friday, September 24, 2021)]
[Rules and Regulations]
[Pages 52951-52952]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-20637]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 
 ========================================================================
 

  Federal Register / Vol. 86, No. 183 / Friday, September 24, 2021 / 
Rules and Regulations  

[[Page 52951]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 843

RIN 3206-AO13


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

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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

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 March 29, 2021, as required by 
the United States Code.

DATES: This rule becomes effective on October 1, 2021.

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

SUPPLEMENTARY INFORMATION: On March 29, 2021, OPM published at 86 FR 
16401, 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 June 30, 2021, 
at 86 FR 34637, 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 of title 5, 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 one comment that simply disagreed with the proposed rule 
without citing any basis for the disagreement. Because this comment is 
not clear, OPM is unable to provide a substantive response to it.

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.

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

[[Page 52952]]

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 continues 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.

Subpart C--Current and Former Spouse Benefits

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, 2021, 36 equal 
monthly installments of 2.94259 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......................................................           .1096
27......................................................           .1162
28......................................................           .1232
29......................................................           .1305
30......................................................           .1382
31......................................................           .1464
32......................................................           .1550
33......................................................           .1643
34......................................................           .1742
35......................................................           .1845
36......................................................           .1958
37......................................................           .2074
38......................................................           .2198
39......................................................           .2327
40......................................................           .2459
41......................................................           .2609
42......................................................           .2770
43......................................................           .2936
44......................................................           .3119
45......................................................           .3308
46......................................................           .3518
47......................................................           .3735
48......................................................           .3969
49......................................................           .4220
50......................................................           .4490
51......................................................           .4781
52......................................................           .5094
53......................................................           .5430
54......................................................           .5792
55......................................................           .6178
56......................................................           .6601
57......................................................           .7059
58......................................................           .7555
59......................................................           .8092
60......................................................           .8674
61......................................................           .9308
------------------------------------------------------------------------

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

------------------------------------------------------------------------
   Age of separated employee at birthday before death       Multiplier
------------------------------------------------------------------------
36......................................................           .2254
37......................................................           .2389
38......................................................           .2532
39......................................................           .2682
40......................................................           .2836
41......................................................           .3010
42......................................................           .3195
43......................................................           .3388
44......................................................           .3599
45......................................................           .3818
46......................................................           .4059
47......................................................           .4311
48......................................................           .4581
49......................................................           .4871
50......................................................           .5182
51......................................................           .5518
52......................................................           .5878
53......................................................           .6265
54......................................................           .6682
55......................................................           .7128
56......................................................           .7615
57......................................................           .8142
58......................................................           .8712
59......................................................           .9329
------------------------------------------------------------------------

    With at least 30 years of creditable service--

------------------------------------------------------------------------
                                              Multiplier by separated
                                             employee's year of birth
  Age of separated employee at birthday  -------------------------------
              before death                                   From 1950
                                            After 1966     through 1966
------------------------------------------------------------------------
46......................................           .4988           .5332
47......................................           .5298           .5664
48......................................           .5631           .6019
49......................................           .5987           .6401
50......................................           .6370           .6810
51......................................           .6781           .7249
52......................................           .7224           .7722
53......................................           .7698           .8229
54......................................           .8209           .8775
55......................................           .8759           .9363
56......................................           .9355          1.0000
------------------------------------------------------------------------


[FR Doc. 2021-20637 Filed 9-23-21; 8:45 am]
BILLING CODE 6325-38-P