Federal Employees' Group Life Insurance Program: Clarifying Annual Rates of Pay and Amending the Employment Status of Judges of the United States Court of Appeals for Veterans Claims

Published date24 September 2020
Citation85 FR 60047
Record Number2020-18042
SectionRules and Regulations
CourtPersonnel Management Office
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.
Rules and Regulations Federal Register
60047
Vol. 85, No. 186
Thursday, September 24, 2020
OFFICE OF PERSONNEL
MANAGEMENT
5 CFR Part 870
RIN 3206–AN52
Federal Employees’ Group Life
Insurance Program: Clarifying Annual
Rates of Pay and Amending the
Employment Status of Judges of the
United States Court of Appeals for
Veterans Claims
AGENCY
: Office of Personnel
Management.
ACTION
: Final rule.
SUMMARY
: The Office of Personnel
Management (OPM) is issuing a final
rule to amend Federal Employees’
Group Life Insurance Program (FEGLI)
regulations to clarify the definition of
annual rates of pay for insured
employees and to address the status of
judges of the United States Court of
Appeals for Veterans Claims.
DATES
: This final rule is effective
September 24, 2020.
FOR FURTHER INFORMATION CONTACT
:
Ronald Brown, Policy Analyst, (202)
606–0004, or by email to
Ronald.Brown@opm.gov.
SUPPLEMENTARY INFORMATION
:
Background
The FEGLI Program is administered
by the Office of Personnel Management
(OPM) in accordance with Chapter 87 of
Title 5 of the U.S. Code and our
implementing regulations (title 5, part
87, and title 48, part 21, of the Code of
Federal Regulations). The FEGLI
enabling legislation was signed August
17, 1954. Also, Congress enacted Public
Law 84–356, on August 11, 1955, to
provide continuation of life insurance
during retirement.
The FEGLI Program covers
approximately 4,261,000 employees and
annuitants enrolled in Basic insurance,
including approximately 1,229,000
employees and annuitants with Option
B insurance that has not reduced to
zero, approximately 1,160,000
employees and annuitants enrolled in
Option A insurance, and approximately
924,000 employees and annuitants
enrolled in Option C insurance that has
not reduced to zero.
The FEGLI statute establishes the
basic rules for benefits, enrollment, and
participation, and provides that OPM
‘‘shall specify the types of pay included
in annual pay.’’ See 5 U.S.C. 8704(c). In
accordance, OPM has promulgated
regulations defining the ‘‘basic
insurance amount’’ for all FEGLI
Program enrollees. Further, the ‘‘basic
insurance amount’’ is defined by law
using the term ‘‘annual rate of basic
pay.’’ See 5 U.S.C. 8701(c). For FEGLI
Program purposes, the basic insurance
amount applies to Basic and Option B
insurance.
This final regulation clarifies what is
considered annual basic pay for FEGLI
Program purposes but does not change
how the annual rate of basic pay is
computed, provide additional
enrollment or change opportunities, or
make other changes not in the existing
FEGLI Program regulations. The final
rule makes this clear in the revised
sections of part 870 by aligning the
FEGLI Program and retirement
regulations, and, in the process,
eliminating certain outdated regulatory
provisions on annual rates of basic pay.
This final regulation also includes a
change enacted under Public Law 114–
315 requiring that retired and current
judges for the United States Court of
Appeals for Veterans Claims be
considered employees for purposes of
FEGLI.
Discussion of Changes
On June 29, 2018, OPM published a
proposed regulation (83 FR 30589) to
clarify that annual basic pay for FEGLI
includes any type of pay treated as basic
pay for purposes of the retirement
systems established under 5 U.S.C.
chapters 83 and 84 consistent with
applicable law or OPM regulation and to
address the status of judges for the
United States Court of Appeals for
Veteran’s Claims. OPM received no
comments on the proposed rule.
Accordingly, this final regulation adopts
the proposed regulation with the
changes pertaining to life insurance for
Federal judges of the United States
Court of Appeals for Veterans Claims
referenced below.
The final regulation changes existing
paragraphs 5 CFR 870.204(a)(1) and
(a)(2) to clarify that basic pay for FEGLI
purposes includes all payments that are
retirement-creditable basic pay under 5
U.S.C. chapters 83 and 84. The final rule
also deletes regulatory provisions that
listed specific types of pay that are
either obsolete or creditable as
retirement basic pay. This includes
revised paragraphs on locality pay and
special pay supplements. These changes
do not substantively affect pay that is
creditable towards life insurance
payment, but merely incorporate
provisions that were previously
contained in guidance into regulation
through a reference to retirement law.
This regulation codifies OPM’s
unwritten policy to consider pay that is
creditable towards retirement as
creditable towards life insurance
payment.
The final regulation makes the
required update at 5 CFR 870.101 to
state that the United States Court of
Appeals for Veterans Claims is now the
employing office for judges of the
United States Court of Appeals for
Veterans Claims. This replaces the prior
employing office, the United States
Court of Veterans Appeals.
Also, the final regulation clarifies
existing paragraph 5 CFR 870.703(e)(1)
concerning certain Federal judges by
adding the words ‘‘a judge who retires
under parts (i–vii)’’ and striking ‘‘one of
the following.’’ It also adds 5 CFR
870.703(e)(1)(vii) concerning retired
Federal judges to reflect the statutory
change under Public Law 114–315. The
change reflects that 38 U.S.C. 7296 is
amended by section 202 of Public Law
114–315 to state that a judge of the
United States Court of Appeals for
Veterans Claims who is retired is
considered an employee under the
FEGLI Program.
Expected Impact of the Final Rule
This rule clarifies the definition of
annual rates of basic pay for the FEGLI
Program and does not make substantive
changes to its computation. It only
affects the life insurance of a small
number of federal employees and
annuitants that are or have served as
judges for the United States Court of
Appeals for Veteran’s Claims. The Court
is authorized seven permanent active
judges, and two additional judges,
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60048
Federal Register / Vol. 85, No. 186 / Thursday, September 24, 2020 / Rules and Regulations
appointed for 15-year terms as part of a
temporary expansion provision.
Regulatory Procedures
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 Section 3(f) of
Executive Order 12866 and was not
reviewed by OMB.
Reducing Regulation and Controlling
Regulatory Costs
This final rule is not subject to the
requirements of E.O. 13771 (82 FR 9339,
February 2, 2017) because this final rule
is not significant under Executive Order
12866.
Regulatory Flexibility Act
The Office of Personnel Management
certifies that this regulation will not
have a significant economic impact on
a substantial number of small entities
because the regulation only affects a
small number of Federal employees and
annuitants.
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.
Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35)
The Paperwork Reduction Act of 1995
(44 U.S.C. chapter 3507(d); see 5 CFR
part 1320) requires that the U.S. Office
of Management and Budget (OMB)
approve all collections of information
by a Federal agency from the public
before they can be implemented.
Respondents are not required to respond
to any collection of information unless
it displays a current valid OMB control
number. OPM has determined this rule
does not impose additional reporting or
recordkeeping requirements under the
Paperwork Reduction Act of 1995
outside of an already approved existing
collection under OMB Control No:
3206–0230, Life Insurance Election.
List of Subjects in 5 CFR Part 870
Administrative practice and
procedure, Government employees,
Hostages, Iraq, Kuwait, Lebanon, Life
insurance, 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 870 as
follows:
PART 870—FEDERAL EMPLOYEES’
GROUP LIFE INSURANCE PROGRAM
1. The authority citation for part 870
continues to read:
Authority: 5 U.S.C. 8716; Subpart J also
issued under section 599C of Pub. L. 101–
513, 104 Stat. 2064, as amended; Sec.
870.302(a)(3)(ii) also issued under section
153 of Pub. L. 104–134, 110 Stat. 1321; Sec.
870.302(a)(3) also issued under sections
11202(f), 11232(e), and 11246(b) and (c) of
Pub. L. 105–33, 111 Stat. 251, and section
7(e) of Pub. L. 105–274, 112 Stat. 2419; Sec.
870.302(a)(3) also issued under section 145 of
Pub. L. 106–522, 114 Stat. 2472; Secs.
870.302(b)(8), 870.601(a), and 870.602(b) also
issued under Pub. L. 110–279, 122 Stat. 2604;
Subpart E also issued under 5 U.S.C. 8702(c);
Sec. 870.601(d)(3) also issued under 5 U.S.C.
8706(d); Sec. 870.703(e)(1) also issued under
section 502 of Pub. L. 110–177, 121 Stat.
Start Printed Page 773662542; Sec. 870.705
also issued under 5 U.S.C. 8714b(c) and
8714c(c); Public Law 104–106, 110 Stat. 521.
2. Amend § 870.101 by revising
paragraph (4) in the definition of
Employing Office, to read as follows:
§ 870.101 Definitions.
* * * * *
Employing Office ***
(4) The United States Court of
Appeals for Veterans Claims is the
employing office for judges of the
United States Court of Appeals for
Veterans Claims.
* * * * *
3. Amend § 870.204 by revising
paragraph (a) to read as follows:
§ 870.204 Annual rates of pay.
(a)(1) An employee’s annual pay is the
annual basic pay of the position as fixed
by law or regulation, except as
otherwise provided by specific
provision of law or OPM regulation.
Annual pay for this purpose includes
the following:
(i) Any pay of a type that is treated as
basic pay for purposes of the retirement
systems established under 5 U.S.C.
chapters 83 and 84, consistent with 5
U.S.C. 8331(3), and pay that is annual
pay for purposes of the FEGLI Program
as provided in Federal law and
regulation;
(ii) Any geographic-based pay
supplement that is equivalent to a
locality-based comparability payment
under 5 U.S.C. 5304; and
(iii) Any special pay supplement for
a defined subcategory of employees that
is equivalent to a special rate
supplement under 5 U.S.C. 5305.
(2) Notwithstanding paragraph (a) (1)
of this section, annual basic pay does
not include the following:
(i) Bonuses, allowances, overtime pay,
military pay, or any other pay to a
covered civilian employee given in
addition to the base pay of the position,
except as otherwise provided by specific
provision of law or OPM regulation.
(ii) Physicians comparability
allowances under 5 U.S.C. 5948.
* * * * *
4. Amend § 870.703 by revising
paragraph (e)(1) introductory text and
adding paragraph (e)(1)(vii) to read as
follows:
§ 870.703 Election of Basic insurance.
* * * * *
(e)(1) For purposes of this part, a
judge who retires under paragraphs
(e)(1)(i) through (vii) of this section is
considered to be an employee after
retirement:
* * * * *
(vii) 38 U.S.C. 7296;
* * * * *
[FR Doc. 2020–18042 Filed 9–23–20; 8:45 am]
BILLING CODE 6325–38–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2016–6139; Product
Identifier 2015–NM–061–AD; Amendment
39–21234; AD 2020–18–13]
RIN 2120–AA64
Airworthiness Directives; The Boeing
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AGENCY
: Federal Aviation
Administration (FAA), DOT.
ACTION
: Final rule.
SUMMARY
: The FAA is adopting a new
airworthiness directive (AD) for certain
The Boeing Company Model 737–600,
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series airplanes. This AD was prompted
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VerDate Sep<11>2014 16:01 Sep 23, 2020 Jkt 250001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\24SER1.SGM 24SER1

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