Civil Service Retirement System and Federal Employees Retirement System; Correcting Miscalculations in Veterans' Pension Act
| Published date | 20 April 2021 |
| Citation | 86 FR 20435 |
| Record Number | 2021-07545 |
| Section | Rules and Regulations |
| Court | Personnel Management Office |
Federal Register, Volume 86 Issue 74 (Tuesday, April 20, 2021)
[Federal Register Volume 86, Number 74 (Tuesday, April 20, 2021)]
[Rules and Regulations]
[Pages 20435-20440]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07545]
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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. 74 / Tuesday, April 20, 2021 / Rules
and Regulations
[[Page 20435]]
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: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management (OPM) is issuing this final
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: Effective April 20, 2021.
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
On November 5, 2020, OPM issued a proposed rule at 85 FR 70502 for
the purpose of proposing regulations meant to implement the provisions
of 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,'' which 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
part 831 and 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 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
[[Page 20436]]
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 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.
The public comment period on the proposed rule ended January 4,
2021. OPM received one written comment from a private citizen. The
commenter questioned why this rule does not apply to redeposit
miscalculations by OPM. Having considered the comment, OPM concluded
that it may not adopt the commenter's suggestion. Because the
retirement benefits afforded to parties in this circumstance are
permitted by statute, OPM's rules implementing those provisions may not
alter the statutory provisions enacted.
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. This rule
is not 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
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 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 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 amends 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. 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
[[Page 20437]]
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 (5 U.S.C. 101).
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 Volunteers in Service to America (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)(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 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 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 42, United States
Code, concerning CSRS retirement service credit eligibility for
Volunteers in Service 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.
[[Page 20438]]
(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
6. 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. 842.304 and 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 (5 U.S.C. 101).
Subpart C--Credit for Service
0
7. 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 Volunteers in
Serviced to America (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
8. 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
9. Add subpart K to read as follows:
Subpart K--Peace Corps
Sec.
842.1101 Purpose.
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
[[Page 20439]]
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
10. Add subpart L 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 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.
[[Page 20440]]
(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. 2021-07545 Filed 4-19-21; 8:45 am]
BILLING CODE 6325-38-P
