Federal Employees' Retirement System; Normal Cost Percentage for Certain Members of the Capitol Police

Published date22 September 2020
Citation85 FR 59377
Record Number2020-20783
SectionRules and Regulations
CourtPersonnel Management Office
Federal Register, Volume 85 Issue 184 (Tuesday, September 22, 2020)
[Federal Register Volume 85, Number 184 (Tuesday, September 22, 2020)]
                [Rules and Regulations]
                [Pages 59377-59378]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-20783]
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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.
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                Federal Register / Vol. 85, No. 184 / Tuesday, September 22, 2020 /
                Rules and Regulations
                [[Page 59377]]
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                OFFICE OF PERSONNEL MANAGEMENT
                5 CFR Part 841
                RIN 3206-AO02
                Federal Employees' Retirement System; Normal Cost Percentage for
                Certain Members of the Capitol Police
                AGENCY: Office of Personnel Management.
                ACTION: Final rule.
                -----------------------------------------------------------------------
                SUMMARY: The Office of Personnel Management (OPM) is adopting its
                proposed rule to revise the categories of employees for computation of
                normal cost percentages for certain members of the Capitol Police who
                are covered by the Federal Employees' Retirement System (FERS) Act of
                1986.
                DATES: This rule becomes effective on October 1, 2020.
                FOR FURTHER INFORMATION CONTACT: Karla Yeakle, (202) 606-0299.
                SUPPLEMENTARY INFORMATION: On April 6, 2020, OPM published notice 85 FR
                19174 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. As a result of new legislation
                enacted on December 20, 2019, under sec. 211 of title II, division E of
                Public Law 116-94, the Further Consolidated Appropriations Act, 2020,
                OPM was required to provide separate normal cost percentages for
                certain members of the Capitol Police as distinct from other
                Congressional Employees. Prior to the enactment of the Further
                Consolidated Appropriations Act, 2020, members of the Capitol Police
                were combined with Congressional Employees for the purpose of
                determining the normal cost percentages for those employee populations.
                This rule is necessary to ensure that the rules for computation of
                normal cost percentages are consistent with the categories of employees
                as provided under 5 U.S.C. 8423(a)(1)(B)(i), as amended by sec. 211 of
                title II, division E of Public Law 116-94, the Further Consolidated
                Appropriations Act, 2020.
                 The Middle Class Tax Relief and Jobs Creation Act of 2012, sec.
                5001 of Public Law 112-96, 126 Stat. 157, and subsequently, sect. 401
                of Public Law 113-67, 113 Stat. 1165, the Bipartisan Budget Act of
                2013, increased the retirement contributions for certain FERS employees
                (Revised Annuity Employees (FERS-RAE) and Further Revised Annuity
                Employees (FERS-FRAE)) and established separate FERS deduction rates
                for Congressional employees and members of the Capitol Police. These
                Acts reduced the retirement annuity accrual rates of new legislative
                (Congressional) branch employees (other than Capitol Police) equal to
                that of most regular federal employees, while the retirement accrual
                rates for new Capitol Police remained at an enhanced level. Despite the
                difference in annuity benefits, these Acts did not establish separate
                employee categories for the computation of normal cost percentages for
                Capitol Police versus other legislative branch employees. With the
                passage of the Further Consolidated Appropriations Act, 2020, members
                of the Capitol Police covered under 5 U.S.C. 8412(d) and 5 U.S.C.
                8425(c), who receive enhanced retirement accrual rates similar to that
                of law enforcement officers under 5 U.S.C. 8415(e), have been removed
                from the Congressional employee normal cost category and now have their
                own normal cost category.
                 Section 841.403 of title 5, Code of Federal Regulations, regulates
                the categories of employees for computation of normal cost percentages
                that the government is required to pay for employees under 5 U.S.C.
                8423. OPM's final rule amends its regulation under 5 CFR 841.403 to
                eliminate the category of ``Congressional employees, including members
                of the Capitol Police,'' and to establish separate normal cost
                percentages for certain members of the Capitol Police and for
                Congressional employees in compliance with sec. 211 of title II,
                division E of Public Law 116-94, the Further Consolidated
                Appropriations Act, 2020. In accordance with the Further Consolidated
                Appropriations Act, 2020, 5 CFR 841.403 must list members of the
                Capitol Police covered under 5 U.S.C. 8412(d) and 5 U.S.C. 8425(c) as a
                separate category. All other Capitol Police, who are not members
                covered under 5 U.S.C. 8412(d) and 5 U.S.C. 8425(c), will fall under
                the new category of ``other Congressional employees.'' OPM received no
                written comments on the proposed rule published July 2, 2020 (85 FR
                39851).
                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.
                Reducing Regulation and Controlling Regulatory Costs
                 This rule is not an E.O. 13771 regulatory action because this rule
                is related to agency organization, management, or personnel.
                Regulatory Flexibility Act
                 The Office of Personnel Management certifies that this rule will
                not have a significant economic impact on a substantial number of small
                entities.
                Federalism
                 We have examined this rule in accordance with Executive Order
                13132, Federalism, and have determined that this rule will not have any
                negative impact on the rights, roles and responsibilities of State,
                local, or tribal governments.
                Civil Justice Reform
                 This regulation meets the applicable standard set forth in
                Executive Order 12988.
                [[Page 59378]]
                Unfunded Mandates Reform Act of 1995
                 This rule will not result in the expenditure by state, local, and
                tribal governments, in the aggregate, or by the private sector, of $100
                million or more in any year and it will not significantly or uniquely
                affect small governments. Therefore, no actions were deemed necessary
                under the provisions of the Unfunded Mandates Reform Act of 1995.
                Congressional Review Act
                 This action pertains to agency management, personnel, and
                organization and does not substantially affect the rights or
                obligations of nonagency parties and, accordingly, is not a ``rule'' as
                that term is used by the Congressional Review Act (Subtitle E of the
                Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)).
                Therefore, the reporting requirement of 5 U.S.C. 801 does not apply.
                Paperwork Reduction Act
                 Notwithstanding any other provision of law, no person is required
                to respond to, nor shall any person be subject to a penalty for failure
                to comply with a collection of information subject to the requirements
                of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA),
                unless that collection of information displays a currently valid Office
                of Management and Budget (OMB) Control Number.
                 This rule involves an OMB approved collection of information
                subject to the PRA Application for Death Benefits (FERS)/Documentation
                and Elections in Support of Application for Death Benefits when
                Deceased was an Employee at the Time of Death (FERS), 3206-0172. The
                public reporting burden for this collection is estimated to average 60
                minutes per response, including time for reviewing instructions,
                searching existing data sources, gathering and maintaining the data
                needed, and completing and reviewing the collection of information. The
                total burden hour estimate for this form is 16,751 hours. The systems
                of record notice for this collection is: OPM SORN CENTRAL-1-Civil
                Service Retirement and Insurance Records.
                List of Subjects in 5 CFR Part 841
                 Administrative practice and procedure, Air traffic controllers,
                Claims, Disability benefits, Firefighters, Government employees, Income
                taxes, Intergovernmental relations, 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 841 as follows:
                PART 841--FEDERAL EMPLOYEES RETIREMENT SYSTEM--GENERAL
                ADMINISTRATION
                0
                1. The authority citation for part 841 continues to read as follows:
                 Authority: 5 U.S.C. 8461; Sec. 841.108 also issued under 5
                U.S.C. 552a; Secs. 841.110 and 841.111 also issued under 5 U.S.C.
                8470(a); subpart D also issued under 5 U.S.C. 8423; Sec. 841.504
                also issued under 5 U.S.C. 8422; Sec. 841.507 also issued under
                section 505 of Pub. L. 99-335; subpart J also issued under 5 U.S.C.
                8469; Sec. 841.506 also issued under 5 U.S.C. 7701(b)(2); Sec.
                841.508 also issued under section 505 of Pub. L. 99-335; Sec.
                841.604 also issued under Title II, Pub. L. 106-265, 114 Stat. 780.
                0
                2. Amend Sec. 841.403 by revising paragraph (b), redesignating
                paragraphs (c) through (h) as paragraphs (d) through (i), and adding
                new paragraph (c) to read as follows:
                Sec. 841.403 Categories of employees for computation of normal cost
                percentages.
                * * * * *
                 (b) Capitol Police covered under 5 U.S.C. 8412(d) and 5 U.S.C.
                8425(c);
                 (c) Other Congressional employees;
                * * * * *
                [FR Doc. 2020-20783 Filed 9-21-20; 8:45 am]
                BILLING CODE 6325-38-P
                

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