CHAPTER 87 —LIFE INSURANCE
Editorial Notes
Amendments
1994—
1988—
1984—
1980—
1967—
§8701. Definitions
(a) For the purpose of this chapter, "employee" means—
(1) an employee as defined by
(2) a Member of Congress as defined by
(3) a Congressional employee as defined by
(4) the President;
(5) a justice or judge of the United States appointed to hold office during good behavior (i) who is in regular active judicial service, or (ii) who is retired from regular active service under
(6) an individual first employed by the government of the District of Columbia before October 1, 1987;
(7) an individual employed by Gallaudet College; 1
(8) an individual employed by a county committee established under
(9) an individual appointed to a position on the office staff of a former President under section 1(b) of the Act of August 25, 1958 (
(10) an individual appointed to a position on the office staff of a former President, or a former Vice President under section 5 of the Presidential Transition Act of 1963, as amended (
but does not include—
(A) an employee of a corporation supervised by the Farm Credit Administration if private interests elect or appoint a member of the board of directors;
(B) an individual who is not a citizen or national of the United States and whose permanent duty station is outside the United States, unless the individual was an employee for the purpose of this chapter on September 30, 1979, by reason of service in an Executive agency, the United States Postal Service, or the Smithsonian Institution in the area which was then known as the Canal Zone; or
(C) an employee excluded by regulation of the Office of Personnel Management under
(b) Notwithstanding subsection (a) of this section, the employment of a teacher in the recess period between two school years in a position other than a teaching position in which he served immediately before the recess period does not qualify the individual as an employee for the purpose of this chapter. For the purpose of this subsection, "teacher" and "teaching position" have the meanings given them by
(c) For the purpose of this chapter, "basic insurance amount" means, in the case of any employee under this chapter, an amount equal to the greater of—
(1) the annual rate of basic pay payable to the employee, rounded to the next higher multiple of $1,000, plus $2,000, or
(2) $10,000.
In the case of any former employee entitled to coverage under this chapter, the term means the basic insurance amount applicable for the employee at the time the insurance to which the employee is entitled as an employee under this chapter stops pursuant to
(d)(1) For the purpose of this chapter, "family member", when used with respect to any individual, means—
(A) the spouse of the individual; and
(B) an unmarried dependent child of the individual (other than a stillborn child), including an adopted child, stepchild or foster child (but only if the stepchild or foster child lived with the individual in a regular parent-child relationship), or recognized natural child—
(i) who is less than 22 years of age, or
(ii) who is 22 years of age or older and is incapable of self-support because of a mental or physical disability which existed before the child became 22 years of age.
(2) For the purpose of this subsection, "dependent", in the case of any child, means that the individual involved was, at the time of the child's death, either living with or contributing to the support of the child, as determined in accordance with the regulations the Office shall prescribe.
(
The definition of "Congressional employee" in
The definition of "employee" in
In subsection (a) (B), the words "United States" are substituted for "a State of the United States or the District of Columbia".
Subsection (a)(C) is added for clarity.
In subsection (b), the last sentence is added on authority of former section 2351, which section is scheduled for transfer to
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
References in Text
Act of August 25, 1958 (
Section 5 of the Presidential Transition Act of 1963, referred to in subsec. (a)(10), is section 5 of
Amendments
Subsec. (a)(10).
1998—Subsec. (c).
Subsec. (d)(1)(B).
1988—Subsec. (a)(10).
1986—Subsec. (a)(6).
1984—Subsec. (a)(5) to (9).
1980—
Subsec. (c).
Subsec. (d).
1979—Subsec. (a)(7) to (9).
Subsec. (a)(B).
1978—Subsec. (a)(C).
1973—Subsec. (a)(B).
1970—Subsec. (a)(B).
Statutory Notes and Related Subsidiaries
Change of Name
Gallaudet College, referred to in subsec. (a)(7), redesignated Gallaudet University by section 101(a) of
Effective Date of 1998 Amendment
"(a)
"(b)
"(c)
"(d)
"(e)
"(1)
"(2)
"(A) separated from service before such effective date due to retirement or entitlement to compensation under subchapter I of
"(B) continued additional optional insurance pursuant to section 8714b(c)(2) as in effect immediately before such effective date.
"(f)
"(g)
"(1) begins on or after the date occurring 365 days after the first day of the election period authorized under section 9; and
"(2) follows a pay period in which the employee was in a pay and duty status."
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1980 Amendment
"(a) Unless otherwise specified, this Act [see Short Title note below] shall take effect on the date of the enactment of this Act [Oct. 10, 1980] and shall have no effect in the case of an employee who died, was separated, or retired before the date of enactment.
"(b) The amendment made by subsection (d) of section 2 of this Act [amending
"(c) The amendment made by section 3 of this Act [amending
"(d) The amendments made by sections 7 and 8 of this Act [enacting
Effective Date of 1979 Amendments
Amendment by
Amendment by
Effective Date of 1978 Amendment
Amendment by
Short Title of 1998 Amendment
Short Title of 1994 Amendment
Short Title of 1980 Amendment
Construction
"(1) United States magistrate judges.
"(2) Bankruptcy judges appointed under
"(3) Judges of the District Court of Guam, judges of the District Court for the Northern Mariana Islands, and judges of the District Court of the Virgin Islands.
"(4) Bankruptcy judges and magistrate judges retired under
"(5) Judges retired under
[Section 307(b) of
Similar provisions were contained in the following prior act:
Open Season
"(1) may, if the employee previously declined or voluntarily terminated any coverage under
"(2) may, if currently insured for optional life insurance on family members, elect an amount above the minimum insurance on a spouse."
"(1) The Office of Personnel Management shall prescribe regulations under which, beginning not later than 9 months after the date of the enactment of this Act [Oct. 25, 1994], and over a period of not less than 8 weeks—
"(A) an employee (as defined by
"(i) may elect to begin, or to resume, group life insurance and group accidental death and dismemberment insurance; and
"(ii) may make such other elections under such chapter as the Office may allow; and
"(B) such other elections as the Office allows may be made.
"(2) The Office shall take such action as may be necessary to ensure that employees and any other individuals who would be eligible to make an election under this subsection are afforded advance notification to that effect."
Continued Coverage Under Certain Federal Employee Benefit Programs for Certain Employees of Saint Elizabeths Hospital
For provisions relating to treatment of certain Federal employees of Saint Elizabeths Hospital under certain Federal employee benefit programs, see section 207(o) of
1 See Change of Name note below.
§8702. Automatic coverage
(a) An employee is automatically insured on the date he becomes eligible for insurance and each policy of insurance purchased by the Office of Personnel Management under this chapter shall provide for that automatic coverage.
(b) An employee desiring not to be insured shall give written notice to his employing office on a form prescribed by the Office. If the notice is received before he has become insured, he shall not be insured. If the notice is received after he has become insured, his insurance stops at the end of the pay period in which the notice is received.
(c) Notwithstanding a notice previously given under subsection (b), an employee who is deployed in support of a contingency operation (as that term is defined in
(d) Any services by an officer or employee under this chapter relating to benefits under this chapter shall be deemed, for purposes of
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| Aug. 17, 1954, ch. 752, §5(a) (less 1st par.), |
In subsection (a), the words "eligible for insurance" are coextensive with and substituted for "eligible under the terms of this chapter".
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
Amendments
2019—Subsec. (d).
2008—Subsec. (c).
2000—Subsec. (c).
1978—Subsecs. (a), (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Effective Date of 1978 Amendment
Amendment by
Regulations
"(1)
"(2)
Applicability
§8703. Benefit certificate
The Office of Personnel Management shall arrange to have each insured employee receive a certificate setting forth the benefits to which he is entitled, to whom the benefits are payable, to whom the claims shall be submitted, and summarizing the provisions of the policy principally affecting him. The certificate is issued instead of the certificate which the insurance company would otherwise be required to issue.
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| Aug. 17, 1954, ch. 752, §9, |
The words "each insured employee" are coextensive with and substituted for "each employee insured under such policy".
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
Amendments
1978—
Statutory Notes and Related Subsidiaries
Effective Date of 1978 Amendment
Amendment by
§8704. Group insurance; amounts
(a) An employee eligible for insurance is entitled to be insured for an amount of group life insurance equal to—
(1) the employee's basic insurance amount, multiplied by
(2) the appropriate factor determined on the basis of the employee's age in accordance with the following schedule:
| If the age of the employee is | The appropriate factor is: |
|---|---|
| 35 or under | 2.0 |
| 36 | 1.9 |
| 37 | 1.8 |
| 38 | 1.7 |
| 39 | 1.6 |
| 40 | 1.5 |
| 41 | 1.4 |
| 42 | 1.3 |
| 43 | 1.2 |
| 44 | 1.1 |
| 45 or over | 1.0. |
(b) An employee eligible for insurance is entitled to be insured for group accidental death and dismemberment insurance in accordance with this subsection. Subject to the conditions and limitations approved by the Office of Personnel Management which are contained in the policy purchased by the Office, the group accidental death and dismemberment insurance provides payment as follows:
| Loss | Amount payable |
|---|---|
| For loss of life | Full amount of the employee's basic insurance amount. |
| Loss of one hand or of one foot or loss of sight of one eye | One-half the amount of the employee's basic insurance amount. |
| Loss of two or more such members | Full amount of the employee's basic insurance amount. |
For any one accident the aggregate amount of group accidental death and dismemberment insurance that may be paid may not exceed an amount equal to the employee's basic insurance amount.
(c) The Office shall prescribe regulations providing for the conversion of other than annual rates of pay to annual rates of pay and shall specify the types of pay included in annual pay. For the purpose of this chapter, "annual pay" includes—
(1) premium pay under
(2) with respect to a law enforcement officer as defined in
(d) In determining the amount of insurance to which an employee is entitled—
(1) a change in rate of pay under subchapter VI of
(2) a change in rate of pay under
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| (a)–(c) | Aug. 17, 1954, ch. 752, §3 (less (d)), |
|
| (d)(1) | [Uncodified]. | Aug. 23, 1958, |
| (d)(2) | Sept. 2, 1958, |
In subsection (a), the words "An employee eligible for insurance is entitled" are coextensive with and substituted for "Each employee to whom this chapter applies shall be eligible".
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
Amendments
1988—Subsec. (c)(2).
1980—Subsec. (a).
| If annual pay is— | The amount of group life insurance is— | The amount of group accidental death and dismemberment insurance is— | |
|---|---|---|---|
| Greater than— | But not greater than— | ||
| 0 | $8,000 | $10,000 | $10,000 |
| $8,000 | 9,000 | 11,000 | 11,000 |
| 9,000 | 10,000 | 12,000 | 12,000 |
| 10,000 | 11,000 | 13,000 | 13,000 |
| 11,000 | 12,000 | 14,000 | 14,000 |
| 12,000 | 13,000 | 15,000 | 15,000 |
| 13,000 | 14,000 | 16,000 | 16,000 |
| 14,000 | 15,000 | 17,000 | 17,000 |
| 15,000 | 16,000 | 18,000 | 18,000 |
| 16,000 | 17,000 | 19,000 | 19,000 |
| 17,000 | 18,000 | 20,000 | 20,000 |
| 18,000 | 19,000 | 21,000 | 21,000 |
| 19,000 | 20,000 | 22,000 | 22,000 |
| 20,000 | 21,000 | 23,000 | 23,000 |
| 21,000 | 22,000 | 24,000 | 24,000 |
| 22,000 | 23,000 | 25,000 | 25,000 |
| 23,000 | 24,000 | 26,000 | 26,000 |
| 24,000 | 25,000 | 27,000 | 27,000 |
| 25,000 | 26,000 | 28,000 | 28,000 |
| 26,000 | 27,000 | 29,000 | 29,000 |
| 27,000 | 28,000 | 30,000 | 30,000 |
| 28,000 | 29,000 | 31,000 | 31,000 |
| 29,000 | 32,000 | 32,000 | |
Subsec. (b).
Subsec. (c).
1978—Subsecs. (b), (c).
Subsec. (d)(1).
1972—Subsec. (d)(2).
1967—Subsec. (a).
1966—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by section 2(d) of
Effective Date of 1978 Amendment
Amendment by section 801(a)(3)(E) of
Amendment by section 906(a)(2), (3) of
Effective Date of 1972 Amendment
Amendment by
Effective Date of 1967 Amendment
Effective Date of 1966 Amendment
Amendment by
Retroactive Effect of 1967 Amendment
1967 Adjustment in Amount of Insurance
"(1) all changes in rates of pay which result from the enactment of this title [see Short Title Note under
"(2) all changes in rates of pay which result from the enactment of
[Section 220(b) of
§8705. Death claims; order of precedence; escheat
(a) Except as provided in subsection (e), the amount of group life insurance and group accidental death insurance in force on an employee at the date of his death shall be paid, on the establishment of a valid claim, to the person or persons surviving at the date of his death, in the following order of precedence:
First, to the beneficiary or beneficiaries designated by the employee in a signed and witnessed writing received before death in the employing office or, if insured because of receipt of annuity or of benefits under subchapter I of
Second, if there is no designated beneficiary, to the widow or widower of the employee.
Third, if none of the above, to the child or children of the employee and descendants of deceased children by representation.
Fourth, if none of the above, to the parents of the employee or the survivor of them.
Fifth, if none of the above, to the duly appointed executor or administrator of the estate of the employee.
Sixth, if none of the above, to other next of kin of the employee entitled under the laws of the domicile of the employee at the date of his death.
(b) If, within 1 year after the death of the employee, no claim for payment has been filed by a person entitled under the order of precedence named by subsection (a) of this section, or if payment to the person within that period is prohibited by Federal statute or regulation, payment may be made in the order of precedence as if the person had predeceased the employee, and the payment bars recovery by any other person.
(c) If, within 2 years after the death of the employee, no claim for payment has been filed by a person entitled under the order of precedence named by subsection (a) of this section, and neither the Office nor the administrative office established by the company concerned pursuant to
(d) If, within 4 years after the death of the employee, payment has not been made under this section and no claim for payment by a person entitled under this section is pending, the amount payable escheats to the credit of the Employees' Life Insurance Fund.
(e)(1) Any amount which would otherwise be paid to a person determined under the order of precedence named by subsection (a) shall be paid (in whole or in part) by the Office to another person if and to the extent expressly provided for in the terms of any court decree of divorce, annulment, or legal separation, or the terms of any court order or court-approved property settlement agreement incident to any court decree of divorce, annulment, or legal separation.
(2) For purposes of this subsection, a decree, order, or agreement referred to in paragraph (1) shall not be effective unless it is received, before the date of the covered employee's death, by the employing agency or, if the employee has separated from service, by the Office.
(3) A designation under this subsection with respect to any person may not be changed except—
(A) with the written consent of such person, if received as described in paragraph (2); or
(B) by modification of the decree, order, or agreement, as the case may be, if received as described in paragraph (2).
(4) The Office shall prescribe any regulations necessary to carry out this subsection, including regulations for the application of this subsection in the event that two or more decrees, orders, or agreements, are received with respect to the same amount.
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| Aug. 17, 1954, ch. 752, §4, Aug. 28, 1962, |
In subsection (c), the words "Employees' Life Insurance Fund" are substituted for "fund created pursuant to
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
| Section of title 5 | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 8705(a) | 5 App.: 2093. | Mar. 23, 1966, |
In subsection (a), "Civil Service Commission" is substituted for "Commission" on authority of former
In subsection (c), "Commission" is substituted for "Civil Service Commission" for consistency of style. The full title of the Commission is set forth the first time it is used in a section.
Editorial Notes
Amendments
1998—Subsec. (a).
Subsec. (e).
1978—Subsec. (a).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1978 Amendments
Amendment by
Amendment by
§8706. Termination of insurance; assignment of ownership
(a) A policy purchased under this chapter shall contain a provision, approved by the Office of Personnel Management, to the effect that insurance on an employee stops on his separation from the service or 12 months after discontinuance of his pay, whichever is earlier, subject to a provision for temporary extension of life insurance coverage and for conversion to an individual policy of life insurance under conditions approved by the Office. Justices and judges of the United States described in section 8701(a)(5)(ii) and (iii) of this chapter are deemed to continue in active employment for purposes of this chapter.
(b)(1) In the case of any employee who retires on an immediate annuity and has been insured under this chapter throughout—
(A) the 5 years of service immediately preceding the date of the employee's retirement, or
(B) the full period or periods of service during which the employee was entitled to be insured, if fewer than 5 years,
life insurance, without accidental death and dismemberment insurance, may be continued, under conditions determined by the Office.
(2) In the case of any employee who becomes entitled to receive compensation under subchapter I of
(A) the 5 years of service immediately preceding the date the employee becomes entitled to compensation, or
(B) the full period or periods of service during which the employee was entitled to be insured, if fewer than 5 years,
life insurance, without accidental death and dismemberment insurance, may be continued, under conditions determined by the Office, during the period the employee is receiving compensation and is held by the Secretary of Labor or the Secretary's delegate to be unable to return to duty.
(3) The amount of life insurance continued under paragraph (1) or (2) of this subsection shall be continued, with or without reduction, at the end of each full calendar month after the date the employee becomes 65 years of age and is retired or is receiving compensation for disease or injury, in accordance with the employee's written election at the time eligibility to continue insurance during retirement or receipt of compensation arises, as follows:
(A) the employee may elect to have the deductions required by
(B) in addition to any deductions which would be required if the insurance were continued as provided under subparagraph (A) of this paragraph, the employee may elect continuous withholdings from annuity or compensation in amounts determined by the Office, and the employee's life insurance coverage shall be either continued without reduction or reduced each month by no more than 1 percent of its face value until no less than 50 percent of the amount of insurance in force before the first reduction remains.
(4) If an employee elects to continue insurance under subparagraph (B) of paragraph (3) of this subsection at the time eligibility to continue insurance during retirement or receipt of compensation for disease or injury arises, the individual may later cancel that election and life insurance coverage shall continue as if the individual had originally elected coverage under subparagraph (A) of paragraph (3) of this subsection.
(c) Notwithstanding subsections (a) and (b) of this section, an employee who enters on approved leave without pay to serve as a full-time officer or employee of an organization composed primarily of employees as defined by
(d)(1) An employee who enters on approved leave without pay in the circumstances described in paragraph (2) may elect to have such employee's life insurance continue (beyond the end of the 12 months of coverage provided for under subsection (a)) for an additional 12 months and arrange to pay currently into the Employees' Life Insurance Fund, through such employee's employing agency, both employee and agency contributions, from the beginning of that additional 12 months of coverage. The employing agency shall forward the premium payments to the Fund. If the employee does not so elect, such employee's insurance will continue during nonpay status and stop as provided by subsection (a). An individual making an election under this subsection may cancel that election at any time, in which case such employee's insurance will stop as provided by subsection (a) or upon receipt of notice of cancellation, whichever is later.
(2) This subsection applies in the case of any employee who—
(A) is a member of a reserve component of the armed forces called or ordered to active duty under a call or order that does not specify a period of 30 days or less; and
(B) enters on approved leave without pay to perform active duty pursuant to such call or order.
(e) If the insurance of an employee stops because of separation from the service or suspension without pay, and the separation or suspension is thereafter officially found to have been erroneous, the employee is deemed to have been insured during the period of erroneous separation or suspension. Deductions otherwise required by
(f)(1) Under regulations prescribed by the Office, each policy purchased under this chapter shall provide that an insured employee or former employee may make an irrevocable assignment of the employee's or former employee's incidents of ownership in the policy.
(2) A court decree of divorce, annulment, or legal separation, or the terms of a court-approved property settlement agreement incident to any court decree of divorce, annulment, or legal separation, may direct that an insured employee or former employee make an irrevocable assignment of the employee's or former employee's incidents of ownership in insurance under this chapter (if there is no previous assignment) to the person specified in the court order or court-approved property settlement agreement.
(g) If the insurance of a former employee receiving a disability annuity under
(h) The insurance of an employee under a policy purchased under section 8709 shall not be invalidated based on a finding that the employee erroneously became insured, or erroneously continued insurance upon retirement or entitlement to compensation under subchapter I of
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| (a)–(c) | Aug. 17, 1954, ch. 752, §6, |
|
| May 28, 1956, ch. 328, §1, |
||
| Sept. 23, 1959, |
||
| (d) | Aug. 1, 1956, ch. 837, §501(c)(1) (less applicability to §2(b)), |
In subsection (b), the words "armed forces" are coextensive with and substituted for "Army, Navy, Air Force, and Marine Corps, or Coast Guard of the United States" in view of the definition of "armed forces" in section 2101.
In subsection (c), the word "only" is supplied for clarity and for consistency with subsection (b). The words "under conditions determined by the Commission, without cost to him" are coextensive with and substituted for "as provided in subsection (b) of this section".
In subsection (d), the first sentence of former section 2091(c) is omitted as unnecessary as the definition of "employee" in section 8701 precludes acquisition of coverage by a member of a uniformed service. The words "
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
| Section of title 5 | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 8706(e) | 5 App.: 2095(d). | July 18, 1966, |
The words "subsections (a)–(c) of this section" are substituted for "the foregoing" to reflect the codification of former
Editorial Notes
Amendments
2008—Subsecs. (d) to (h).
1998—Subsec. (e).
Subsec. (g).
1994—Subsec. (e).
1992—Subsecs. (f), (g).
1986—Subsec. (a).
Subsecs. (c) to (f).
1985—Subsec. (g).
1984—
Subsec. (f).
1980—Subsec. (b).
"(1) If on the date the insurance would otherwise stop the employee retires on an immediate annuity and has been insured under this chapter throughout—
"(A) the 5 years of service immediately preceding such date, or
"(B) the full period or periods of service during which the employee was entitled to be insured, if less than 5 years,
life insurance only may be continued, without cost to the employee, under conditions determined by the Office.
"(2) If on the date the insurance would otherwise stop the employee is receiving compensation under subchapter I of
"(A) the 5 years of service immediately preceding such date, or
"(B) the full period or periods of service during which the employee was entitled to be insured, if less than 5 years,
life insurance only may be continued, without cost to the employee, under conditions determined by the Office, during the period the employee is receiving compensation for work injuries and is held by the Secretary of Labor or his delegate to be unable to return to duty.
"(3) The amount of life insurance continued under paragraph (1) or paragraph (2) of this subsection shall be reduced by 2 percent at the end of each full calendar month after the date the employee becomes 65 years of age and is retired or is receiving such compensation for disease or injury. The Office shall prescribe minimum amounts, not less than 25 percent of the amount of life insurance in force before the first reduction, to which the insurance may be reduced."
1978—Subsec. (a).
Subsec. (b).
"(1) his retirement is for disability; or
"(2) he has completed 12 years of creditable service as determined by the Commission;
his life insurance only may be continued, without cost to him, under conditions determined by the Commission. Periods of honorable, active service in the armed forces shall be credited toward the required 12 years if the employee has completed at least 5 years of civilian service. The amount of life insurance continued under this subsection shall be reduced by 2 percent at the end of each full calendar month after the date the employee becomes 65 years of age or retires, whichever is later. The Commission may prescribe minimum amounts, not less than 25 percent of the amount of life insurance in force before the first reduction, to which the insurance may be reduced."
Subsec. (c).
Subsec. (d).
Subsecs. (e), (f).
1972—Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1986 Amendments
Amendment by
Effective Date of 1984 Amendment
"(a) Except as provided in subsection (b), the amendments made by this Act to
"(b) If a company which issued a policy which is in effect on the date of the enactment of this Act agrees, the amendments made by this Act [probably should be 'made by this Act to
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1978 Amendments
Amendment by
Insurance Coverage for Restored Disability Annuitants
"(1) The amendments made by this section [amending this section and
"(2)(A) The Office of Personnel Management shall notify each individual under subparagraph (B) of any rights which such individual may have under section 8706(g) or
"(B) Notification under this paragraph shall be provided to any individual who, as of the 90th day after the date of enactment of this Act [June 17, 1985], is receiving a disability annuity which was restored to such individual under
"(3)(A) Nothing in this section shall be construed to authorize—
"(i) coverage under
"(ii) coverage under
"(B) This paragraph applies with respect to any individual receiving a disability annuity which is or was restored under
Election of Life Insurance or Health Benefits During Period of Service as Officer or Employee of an Employee Organization; Contributions Into Employees Life Insurance Fund or Employees Health Benefits Fund, Non-Election; Regulations
[Provision effective July 18, 1966, see section 410(1) of
§8707. Employee deductions; withholding
(a) Subject to subsection (c)(2), during each period in which an employee is insured under a policy purchased by the Office of Personnel Management under
(b)(1) Subject to subsection (c)(2), whenever life insurance continues after an employee retires on an immediate annuity or while the employee is receiving compensation under subchapter I of
(2) Notwithstanding paragraph (1) of this subsection, insurance shall be so continued without cost (other than as provided under section 8706(b)(3)(B)) to each employee who so retires, or commences receiving compensation, on or before December 31, 1989.
(c)(1) The amount withheld from the pay, annuity, or compensation of each employee subject to insurance deductions shall be at the rate, adjusted to the nearest half-cent, of 662/3 percent of the level cost as determined by the Office for each $1,000 of the employee's basic insurance amount.
(2) An employee who is subject to withholdings under this section and whose pay, annuity, or compensation is insufficient to cover such withholdings may nevertheless continue insurance if the employee arranges to pay currently into the Employees' Life Insurance Fund, through the agency or retirement system that administers pay, annuity, or compensation, an amount equal to the withholdings that would otherwise be required under this section.
(d) If an agency fails to withhold the proper amount of life insurance deductions from an individual's salary, compensation, or retirement annuity, the collection of unpaid deductions may be waived by the agency if, in the judgment of the agency, the individual is without fault and recovery would be against equity and good conscience. However, if the agency so waives the collection of unpaid deductions, the agency shall submit an amount equal to the sum of the uncollected deductions and related agency contributions required under
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| Aug. 17, 1954, ch. 752, §5(a) (1st par.), Sept. 23, 1959, |
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
Amendments
1998—Subsec. (a).
Subsec. (b)(1).
Subsec. (c).
1980—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
1978—
1967—
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1967 Amendment
Amendment by
Retroactive Effect of 1967 Amendment
Amendment by
§8708. Government contributions
(a) For each period in which an employee is insured under a policy of insurance purchased by the Office of Personnel Management under
(b) When an employee is paid by the Chief Administrative Officer of the House of Representatives, the Chief Administrative Officer may contribute the sum required by subsection (a) of this section from the applicable accounts of the House of Representatives.
(c) When the employee is an elected official, the sum required by subsection (a) of this section is contributed from an appropriation or fund available for payment of other salaries of the same office or establishment.
(d)(1) Except as otherwise provided in this subsection, for each period in which an employee continues life insurance after retirement or while in receipt of compensation under subchapter I of
(2) Contributions under this subsection—
(A) shall not be made other than with respect to individuals who retire, or commence receiving compensation, after December 31, 1989;
(B) shall not be made with respect to any individual for months after the calendar month in which such individual becomes 65 years of age; and
(C) shall, in the case of any individual who elects coverage under subparagraph (B) of
(3) The United States Postal Service shall pay the contributions required under this subsection with respect to any individual who—
(A) first becomes an annuitant by reason of retirement from employment with the United States Postal Service after December 31, 1989; or
(B) commences receiving compensation under subchapter I of
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| (a), (c) | Aug. 17, 1954, ch. 752, §5(b), |
|
| (b) | Aug. 5, 1955, ch. 568, §101 (4th par. under "Administrative Provisions"), |
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
Amendments
1996—Subsec. (b).
1990—Subsec. (d).
1978—Subsec. (a).
1967—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1967 Amendment
Amendment by
Retroactive Effect of 1967 Amendment
Amendment by
§8709. Insurance policies
(a) The Office of Personnel Management, without regard to section 6101(b) to (d) of title 41, may purchase from one or more life insurance companies a policy or policies of group life and accidental death and dismemberment insurance to provide the benefits specified by this chapter. A company must meet the following requirements:
(1) It must be licensed to transact life and accidental death and dismemberment insurance under the laws of 48 of the States and the District of Columbia.
(2) It must have in effect, on the most recent December 31 for which information is available to the Office, an amount of employee group life insurance equal to at least 1 percent of the total amount of employee group life insurance in the United States in all life insurance companies.
(b) A company issuing a policy under subsection (a) of this section shall establish an administrative office under a name approved by the Office.
(c) The Office at any time may discontinue a policy purchased from a company under subsection (a) of this section.
(d)(1) The provisions of any contract under this chapter which relate to the nature or extent of coverage or benefits (including payments with respect to benefits) shall supersede and preempt any law of any State or political subdivision thereof, or any regulation issued thereunder, which relates to group life insurance to the extent that the law or regulation is inconsistent with the contractual provisions.
(2) For the purpose of this section, "State" means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and a territory or possession of the United States.
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| Aug. 17, 1954, ch. 752, §7 (less (c)–(e)), |
In subsection (a), the words "as determined by it" are omitted as unnecessary.
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
Amendments
2011—Subsec. (a).
1980—Subsec. (d).
1978—Subsecs. (a) to (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
§8710. Reinsurance
(a) The Office of Personnel Management shall arrange with a company issuing a policy under this chapter for the reinsurance, under conditions approved by the Office, of portions of the total amount of insurance under the policy, determined under this section, with other life insurance companies which elect to participate in the reinsurance.
(b) The Office shall determine for and in advance of a policy year which companies are eligible to participate as reinsurers and the amount of insurance under a policy which is to be allocated to the issuing company and to reinsurers. The Office shall make this determination at least every 3 years and when a participating company withdraws.
(c) The Office shall establish a formula under which the amount of insurance retained by an issuing company after ceding reinsurance, and the amount of reinsurance ceded to each reinsurer, is in proportion to the total amount of each company's group life insurance, excluding insurance purchased under this chapter, in force in the United States on the determination date, which is the most recent December 31 for which information is available to the Office. In determining the proportions, the portion of a company's group life insurance in force on the determination date in excess of $100,000,000 shall be reduced by—
(1) 25 percent of the first $100,000,000 of the excess;
(2) 50 percent of the second $100,000,000 of the excess;
(3) 75 percent of the third $100,000,000 of the excess; and
(4) 95 percent of the remaining excess.
However, the amount retained by or ceded to a company may not exceed 25 percent of the amount of the company's total life insurance in force in the United States on the determination date.
(d) A fraternal benefit association which is—
(1) licensed to transact life insurance under the laws of a State or the District of Columbia; and
(2) engaged in issuing insurance certificates on the lives of employees of the United States exclusively;
is eligible to act as a reinsuring company and may be allocated an amount of reinsurance equal to 25 percent of its total life insurance in force on employees of the United States on the determination date named by subsection (c) of this section.
(e) An issuing company or reinsurer is entitled, as a minimum, to be allocated an amount of insurance under the policy equal to any reduction from December 31, 1953, to the determination date, in the amount of the company's group life insurance under policies issued to associations of employees of the United States. However, any increase under this subsection in the amount allocated is reduced by the amount in force on the determination date of any policy covering life insurance agreements assumed by the Office.
(f) The Office may modify the computations under this section as necessary to carry out the intent of this section.
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| Aug. 17, 1954, ch. 752, §7(c)–(e), |
The section is reorganized to clarify the steps in the computation of the insurance allocable to issuing and reinsuring companies.
In subsections (c) and (d), references to the first determination date, December 31, 1953, are omitted as executed.
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
Amendments
1978—Subsecs. (a) to (c), (e), (f).
Statutory Notes and Related Subsidiaries
Effective Date of 1978 Amendment
Amendment by
§8711. Basic tables of premium rates
(a) A policy purchased under this chapter shall include, for the first policy year, basic tables of premium rates as follows:
(1) For group life insurance, a schedule of basic premium rates by age which the Office of Personnel Management determines to be consistent with the lowest schedule of basic premium rates generally charged for new group life insurance policies issued to large employers.
(2) For group accidental death and dismemberment insurance, a basic premium rate which the Office determines is consistent with the lowest rate generally charged for new group accidental death and dismemberment policies issued to large employers.
The schedule for group life insurance, except as otherwise provided by this section, shall be applied to the distribution by age of the amounts of group life insurance under the policy at its date of issuance to determine an average basic premium rate per $1,000 of life insurance.
(b) The policy shall provide that the basic premium rates determined for the first policy year continue for later policy years except as readjusted for a later year based on experience under the policy. The company issuing the policy may make the readjustment on a basis that the Office determines in advance of the policy year is consistent with the general practice of life insurance companies under policies of group life and group accidental death and dismemberment insurance issued to large employers.
(c) The policy shall provide that if the Office determines that ascertaining the actual age distribution of the amounts of group life insurance in force at the date of issue of the policy or at the end of the first or any later year of insurance thereunder would not be possible except at a disproportionately high expense, the Office may approve the determination of a tentative average group life premium rate, for the first or any later policy year, instead of using the actual age distribution. The Office, on request by the company issuing the policy, shall redetermine the tentative average premium rate during any policy year, if experience indicates that the assumptions made in determining that rate were incorrect for that year.
(d) The policy shall stipulate the maximum expense and risk charges for the first policy year. The Office shall determine these charges on a basis consistent with the general level of charges made by life insurance companies under policies of group life and accidental death and dismemberment insurance issued to large employers. The maximum charges continue from year to year, except that the Office may redetermine them for any year either by agreement with the company issuing the policy or on written notice given to the company at least 1 year before the beginning of the year for which the redetermined maximum charges will be effective.
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| Aug. 17, 1954, ch. 752, §8 (less (d)), |
In subsection (a), the word "policy" is substituted for "policy or policies" on authority of
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
Amendments
1978—Subsecs. (a) to (d).
Statutory Notes and Related Subsidiaries
Effective Date of 1978 Amendment
Amendment by
§8712. Annual accounting; special contingency reserve
A policy purchased under this chapter shall provide for an accounting to the Office of Personnel Management not later than 90 days after the end of each policy year. The accounting shall set forth, in a form approved by the Office—
(1) the amounts of premiums actually accrued under the policy from its date of issue to the end of the policy year;
(2) the total of all mortality and other claim charges incurred for that period; and
(3) the amounts of the insurers' expense and risk charges for that period.
An excess of the total of paragraph (1) of this section over the sum of paragraphs (2) and (3) of this section shall be held by the company issuing the policy as a special contingency reserve to be used by the company only for charges under the policy. The reserve shall bear interest at a rate determined in advance of each policy year by the company and approved by the Office as being consistent with the rates generally used by the company for similar funds held under other group life insurance policies. When the Office determines that the special contingency reserve has attained an amount estimated by it to make satisfactory provision for adverse fluctuations in future charges under the policy, any further excess shall be deposited in the Treasury of the United States to the credit of the Employees' Life Insurance Fund. When a policy is discontinued, any balance remaining in the special contingency reserve after all charges have been made shall be deposited in the Treasury to the credit of the Fund. The company may make the deposit in equal monthly installments over a period of not more than 2 years.
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| Aug. 17, 1954, ch. 752, §8(d), |
The words "A policy purchased under this chapter" are substituted for "Each such policy" for clarity. The word "insurance", preceding the word "company", is omitted as unnecessary; and the word "company" is substituted for "company or companies" on authority of
The words "Employees' Life Insurance Fund" are substituted for "fund".
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
Amendments
1978—
Statutory Notes and Related Subsidiaries
Effective Date of 1978 Amendment
Amendment by
§8713. Effect of other statutes
Any provision of law outside of this chapter which provides coverage or any other benefit under this chapter to any individuals who (based on their being employed by an entity other than the Government) would not otherwise be eligible for any such coverage or benefit shall not apply with respect to any individual appointed, transferred, or otherwise commencing that type of employment on or after October 1, 1988.
(Added
Editorial Notes
Prior Provisions
A prior section 8713,
§8714. Employees' Life Insurance Fund
(a) The amounts withheld from employees under
(1) premium payments under an insurance policy purchased under this chapter; and
(2) expenses incurred by the Office of Personnel Management in the administration of this chapter within the limitations that may be specified annually by appropriation acts.
(b) The Secretary of the Treasury may invest and reinvest any of the money in the Fund in interest-bearing obligations of the United States, and may sell these obligations for the purposes of the Fund. The interest on and the proceeds from the sale of these obligations, and the income derived from dividend or premium rate adjustments from insurers, become a part of the Fund.
(c)(1) No tax, fee, or other monetary payment may be imposed or collected by any State, the District of Columbia, or the Commonwealth of Puerto Rico, or by any political subdivision or other governmental authority thereof, on, or with respect to, any premium paid under an insurance policy purchased under this chapter.
(2) Paragraph (1) of this subsection shall not be construed to exempt any company issuing a policy of insurance under this chapter from the imposition, payment, or collection of a tax, fee, or other monetary payment on the net income or profit accruing to or realized by that company from business conducted under this chapter, if that tax, fee, or payment is applicable to a broad range of business activity.
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| Aug. 17, 1954, ch. 752, §5(c) (less applicability to §10), Aug. 11, 1955, ch. 794, §1(a) "(c) (less applicability to §10)", (b), |
||
| Apr. 11, 1958, |
In subsection (a), the words "of the Employees' Life Insurance Fund" are substituted for "of a fund which is hereby created". The proviso which made appropriations available to the Commission for salaries and expenses for the fiscal year 1955 available on a reimbursable basis for necessary administrative expenses for carrying out the purposes of this chapter is omitted as executed.
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
Amendments
1980—Subsec. (c).
1978—Subsec. (a)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 1980 Amendment
Effective Date of 1978 Amendment
Amendment by
Funding
§8714a. Optional insurance
(a) Under the conditions, directives, and terms specified in
(b)(1) An employee who is deployed in support of a contingency operation (as that term is defined in
(2) The optional life insurance and accidental death and dismemberment insurance shall be made available to each insured employee under such conditions as the Office shall prescribe and in amounts approved by the Office but not more than the greater of $10,000 or an amount which, when added to the amount provided in
(c)(1) Except as otherwise provided in this subsection, the optional insurance on an employee stops on his separation from service or 12 months after discontinuance of his pay, whichever is earlier, subject to a provision for temporary extension of life insurance coverage and for conversion to an individual policy of life insurance under conditions approved by the Office.
(2)(A) In the case of any employee who retires on an immediate annuity and has been insured under this section throughout—
(i) the 5 years of service immediately preceding the date of such retirement, or
(ii) the full period or periods of service during which the employee was entitled to be insured, if less than 5 years,
the amount of optional life insurance only which has been in force throughout such period may be continued, under conditions determined by the Office.
(B) In the case of any employee who becomes entitled to receive compensation under subchapter I of
(i) the 5 years of service immediately preceding the date such employee becomes entitled to such compensation, or
(ii) the full period or periods of service during which the employee was entitled to be insured, if less than 5 years,
the amount of optional life insurance only which has been in force throughout such period may be continued, under conditions determined by the Office, during the period the employee is receiving such compensation for disease or injury and is held by the Secretary of Labor or his delegate to be unable to return to duty.
(C) The amount of optional life insurance continued under subparagraph (A) or subparagraph (B) of this paragraph shall be reduced by 2 percent at the end of each full calendar month after the date the employee becomes 65 years of age and is retired or is receiving compensation for disease or injury. The Office shall prescribe minimum amounts, not less than 25 percent of the amount of life insurance in force before the first reduction, to which the insurance may be reduced.
(3) Notwithstanding paragraph (c)(1) of this section,1 a justice or judge of the United States as defined by
(d)(1) During each period in which an employee has the optional insurance the full cost thereof shall be withheld from his pay. During each period in which an employee continues optional life insurance after retirement or while in receipt of compensation for work injuries, as provided in
(2) If an agency fails to withhold the proper cost of optional insurance from an individual's salary, compensation, or retirement annuity, the collection of amounts properly due may be waived by the agency if, in the judgment of the agency, the individual is without fault and recovery would be against equity and good conscience. However, if the agency so waives the collection of any unpaid amount, the agency shall submit an amount equal to the uncollected amount to the Office for deposit to the Employees' Life Insurance Fund.
(3) Notwithstanding paragraph (1), an employee who is subject to withholdings under this subsection and whose pay, annuity, or compensation is insufficient to cover such withholdings may nevertheless continue optional insurance if the employee arranges to pay currently into the Employees' Life Insurance Fund, through the agency or retirement system which administers pay, annuity, or compensation, an amount equal to the withholdings that would otherwise be required under this subsection.
(e) The cost of the optional insurance shall be determined from time to time by the Office on the basis of such age groups as it considers appropriate.
(f) The amount of optional life, or life and accidental death, insurance in force on an employee at the date of his death shall be paid as provided in
(Added
Editorial Notes
Amendments
2011—Subsec. (a).
2008—Subsec. (b).
1998—Subsec. (d)(3).
1986—Subsec. (c)(1).
1984—Subsec. (c)(1).
Subsec. (c)(3).
1980—Subsec. (c)(2)(C).
Subsec. (d).
1978—Subsecs. (a), (b).
Subsec. (c)(1).
Subsec. (c)(2).
"(A) the full period or periods of service during which the optional insurance was available to him; or
"(B) the 12 years of service immediately preceding his retirement or beginning date of entitlement to compensation for work injuries and during which the optional insurance was available to him;
whichever is shorter, may be continued—
"(A) after retirement, under the same conditions (except with respect to cost but including reduction of the amount continued) as provided in
"(B) while in receipt of compensation for work injuries under the same conditions (except with respect to cost) as provided in
Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1978 Amendments
Amendment by
Amendment by
Effective Date
"(1) The amendments made by section 404 of this Act [enacting this section and amending analysis preceding
"(2) In the case of an employee in the service on the effective date prescribed by or pursuant to this subsection, (i) the period during which such employee may elect to receive optional insurance under the amendment made by section 404 shall not expire prior to the sixtieth day after such effective date, and (ii) for the purpose of determining the amount of insurance to be continued after retirement, the period during which such optional insurance was available to such employee shall not be considered to have commenced prior to the expiration of sixty days following such effective date."
Retroactive Effect
Enactment of this section by
Availability of Certain Funds in Employees' Life Insurance Fund
1 So in original. Probably should be "paragraph (1) of this subsection,".
§8714b. Additional optional life insurance
(a) Under the conditions, directives, and terms specified in
(b)(1) An employee who is deployed in support of a contingency operation (as that term is defined in
(2) The additional optional insurance provided under this section shall be made available to each eligible employee who has elected coverage under this section, under conditions the Office shall prescribe, in multiples, at the employee's election, of 1, 2, 3, 4, or 5 times the annual rate of basic pay payable to the employee (rounded to the next higher multiple of $1,000). An employee may reduce or stop coverage elected pursuant to this section at any time.
(c)(1) Except as otherwise provided in this subsection, the additional optional insurance elected by an employee pursuant to this section shall stop on separation from service or 12 months after discontinuance of his pay, whichever is earlier, subject to a provision for temporary extension of life insurance coverage and for conversion to an individual policy of life insurance under conditions approved by the Office. Justices and judges of the United States described in section 8701(a)(5)(ii) and (iii) of this chapter are deemed to continue in active employment for purposes of this chapter. A justice or judge of the United States as defined by
(2) In the case of any employee who retires on an immediate annuity or who becomes entitled to receive compensation under subchapter I of
(A) the 5 years of service immediately preceding the date of retirement or entitlement to compensation, or
(B) the full period or periods of service during which the insurance was available to the employee, if fewer than 5 years,
may be continued under conditions determined by the Office after retirement or while the employee is receiving compensation under subchapter I of
(3) The amount of additional optional insurance continued under paragraph (2) shall be continued, with or without reduction, in accordance with the employee's written election at the time eligibility to continue insurance during retirement or receipt of compensation arises, as follows:
(A) The employee may elect to have withholdings cease in accordance with subsection (d), in which case—
(i) the amount of additional optional insurance continued under paragraph (2) shall be reduced each month by 2 percent effective at the beginning of the second calendar month after the date the employee becomes 65 years of age and is retired or is in receipt of compensation; and
(ii) the reduction under clause (i) shall continue for 50 months at which time the insurance shall stop.
(B) The employee may, instead of the option under subparagraph (A), elect to have the full cost of additional optional insurance continue to be withheld from such employee's annuity or compensation on and after the date such withholdings would otherwise cease pursuant to an election under subparagraph (A), in which case the amount of additional optional insurance continued under paragraph (2) shall not be reduced, subject to paragraph (4).
(C) An employee who does not make any election under the preceding provisions of this paragraph shall be treated as if such employee had made an election under subparagraph (A).
(4) If an employee makes an election under paragraph (3)(B), that individual may subsequently cancel such election, in which case additional optional insurance shall be determined as if the individual had originally made an election under paragraph (3)(A).
(5)(A) An employee whose additional optional insurance under this section would otherwise stop in accordance with paragraph (1) and who is not eligible to continue insurance under paragraph (2) may elect, under conditions prescribed by the Office of Personnel Management, to continue all or a portion of so much of the additional optional insurance as has been in force for not less than—
(i) the 5 years of service immediately preceding the date of the event which would cause insurance to stop under paragraph (1); or
(ii) the full period or periods of service during which the insurance was available to the employee, if fewer than 5 years,
at group rates established for purposes of this section, in lieu of conversion to an individual policy. The amount of insurance continued under this paragraph shall be reduced by 50 percent effective at the beginning of the second calendar month after the date the employee or former employee attains age 70 and shall stop at the beginning of the second calendar month after attainment of age 80, subject to a provision for temporary extension of life insurance coverage and for conversion to an individual policy of life insurance under conditions approved by the Office. Alternatively, insurance continued under this paragraph may be reduced or stopped at any time the employee or former employee elects.
(B) When an employee or former employee elects to continue additional optional insurance under this paragraph following separation from service or 12 months without pay, the insured individual shall submit timely payment of the full cost thereof, plus any amount the Office determines necessary to cover associated administrative expenses, in such manner as the Office shall prescribe by regulation. Amounts required under this subparagraph shall be deposited, used, and invested as provided under section 8714 and shall be reported and accounted for together with amounts withheld under section 8714a(d).
(C)(i) Subject to clause (ii), no election to continue additional optional insurance may be made under this paragraph 3 years after the effective date of this paragraph.
(ii) On and after the date on which an election may not be made under clause (i), all additional optional insurance under this paragraph for former employees shall terminate, subject to a provision for temporary extension of life insurance coverage and for conversion to an individual policy of life insurance under conditions approved by the Office.
(d)(1) During each period in which the additional optional insurance is in force on an employee the full cost thereof shall be withheld from the employee's pay. During each period in which an employee continues additional optional insurance after retirement or while in receipt of compensation under subchapter I of
(2) If an agency fails to withhold the proper cost of additional optional insurance from an individual's salary, compensation, or retirement annuity, the collection of amounts properly due may be waived by the agency if, in the judgment of the agency, the individual is without fault and recovery would be against equity and good conscience. However, if the agency so waives the collection of any unpaid amount, the agency shall submit an amount equal to the uncollected amount to the Office for deposit to the Employees' Life Insurance Fund.
(3) Notwithstanding paragraph (1), an employee who is subject to withholdings under this subsection and whose pay, annuity, or compensation is insufficient to cover such withholdings may nevertheless continue additional optional insurance if the employee arranges to pay currently into the Employees' Life Insurance Fund, through the agency or retirement system which administers pay, annuity, or compensation, an amount equal to the withholdings that would otherwise be required under this subsection.
(e) The cost of the additional optional insurance shall be determined from time to time by the Office on the basis of the employee's age relative to such age groups as the Office establishes under
(f) The amount of additional optional life insurance in force on an employee at the date of his death shall be paid as provided in
(Added
Editorial Notes
Amendments
2011—Subsec. (a).
2008—Subsec. (b).
1998—Subsec. (b).
Subsec. (c)(2).
Subsec. (c)(3) to (5).
Subsec. (d)(1).
Subsec. (d)(3).
1986—Subsec. (c)(1).
1984—Subsec. (c)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by sections 3(2) and 6(3) of
Effective Date of 1986 Amendments
Amendment by
Amendment by
Effective Date
Section effective on first day of first pay period which begins on or after 180th day following Oct. 10, 1980, or on any earlier date that Office may prescribe which is at least 60 days after Oct. 10, 1980, and shall have no effect in case of an employee who died, was finally separated, or retired before effective date, see section 10(d) of
Report to Congress
§8714c. Optional life insurance on family members
(a) Under the conditions, directives, and terms specified in
(b)(1) The optional life insurance on family members provided under this section shall be made available to each eligible employee who has elected coverage under this section, under conditions the Office shall prescribe, in multiples, at the employee's election, of 1, 2, 3, 4, or 5 times—
(A) $5,000 for a spouse; and
(B) $2,500 for each child described under section 8701(d).
(2) An employee may reduce or stop coverage elected pursuant to this section at any time.
(c)(1) Except as otherwise provided in this subsection, the optional life insurance on family members shall stop at the earlier of the employee's death, the employee's separation from the service, or 12 months after discontinuance of pay, subject to a provision for temporary extension of life insurance coverage and for conversion to individual policies of life insurance under conditions approved by the Office.
(2) In the case of any employee who retires on an immediate annuity or who becomes entitled to receive compensation under subchapter I of
(A) the 5 years of service immediately preceding the date of retirement or entitlement to compensation, or
(B) the full period or periods of service during which the insurance was available to the employee, if fewer than 5 years,
optional life insurance on family members may be continued under the same conditions as provided in section 8714b(c)(2) through (4).
(d)(1) During each period in which the optional life insurance on family members is in force the full cost thereof shall be withheld from the employee's pay. During each period in which an employee continues optional life insurance on family members after retirement or while in receipt of compensation under subchapter I of
(2) If an agency fails to withhold the proper cost of optional life insurance on family members from an individual's salary, compensation, or retirement annuity, the collection of amounts properly due may be waived by the agency if, in the judgment of the agency, the individual is without fault and recovery would be against equity and good conscience. However, if the agency so waives the collection of any unpaid amount, the agency shall submit an amount equal to the uncollected amount to the Office for deposit to the Employees' Life Insurance Fund.
(3) Notwithstanding paragraph (1), an employee who is subject to withholdings under this subsection and whose pay, annuity, or compensation is insufficient to cover such withholdings may nevertheless continue optional life insurance on family members if the employee arranges to pay currently into the Employees' Life Insurance Fund, through the agency or retirement system that administers pay, annuity, or compensation, an amount equal to the withholdings that would otherwise be required under this subsection.
(e) The cost of the optional life insurance on family members shall be determined from time to time by the Office on the basis of the employee's age relative to such age groups as the Office establishes under
(f) The amount of optional life insurance which is in force under this section on a family member of an employee or former employee on the date of the death of the family member shall be paid, on the establishment of a valid claim by the employee, to such employee or, in the event of the death of the employee before payment can be made, to the person or persons entitled to the group life insurance in force on the employee under
(Added
Editorial Notes
Amendments
2011—Subsec. (a).
1998—Subsec. (b).
Subsec. (c)(2).
Subsec. (d)(1).
Subsec. (d)(3).
1986—Subsec. (c)(1).
1984—Subsec. (c)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by section 6(4) of
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by
Effective Date
Section effective on first day of first pay period which begins on or after 180th day following Oct. 10, 1980, or on any earlier date that Office may prescribe which is at least 60 days after Oct. 10, 1980, and shall have no effect in case of an employee who died, was finally separated, or retired before effective date, see section 10(d) of
§8714d. Option to receive "living benefits"
(a) For the purpose of this section, an individual shall be considered to be "terminally ill" if such individual has a medical prognosis that such individual's life expectancy is 9 months or less.
(b) The Office of Personnel Management shall prescribe regulations under which any individual covered by group life insurance under section 8704(a) may, if such individual is terminally ill, elect to receive a lump-sum payment equal to—
(1) the full amount of insurance under section 8704(a) (or portion thereof designated for this purpose under subsection (d)(4)) which would otherwise be payable under this chapter (on the establishment of a valid claim)—
(A) computed based on a date determined under regulations of the Office (but not later than 30 days after the date on which the individual's application for benefits under this section is approved or deemed approved under subsection (d)(3)); and
(B) assuming continued coverage under this chapter at that time;
reduced by
(2) an amount necessary to assure that there is no increase in the actuarial value of the benefit paid (as determined under regulations of the Office).
(c)(1) If a lump-sum payment is taken under this section—
(A) no insurance under the provisions of section 8704(a) or (b) shall be payable based on the death or any loss of the individual involved, unless the lump-sum payment represents only a portion of the total benefits which could have been taken, in which case benefits under those provisions shall remain in effect, except that the basic insurance amount on which they are based—
(i) shall be reduced by the percentage which the designated portion comprised relative to the total benefits which could have been taken (rounding the result to the nearest multiple of $1,000 or, if midway between multiples of $1,000, to the next higher multiple of $1,000); and
(ii) shall not be subject to further adjustment; and
(B) deductions and withholdings under section 8707, and contributions under section 8708, shall be terminated with respect to such individual (or reduced in a manner consistent with the percentage reduction in the individual's basic insurance amount, if applicable), effective with respect to any amounts which would otherwise become due on or after the date of payment under this section.
(2) An individual who takes a lump-sum payment under this section (whether full or partial) remains eligible for optional benefits under sections 8714a–8714c (subject to payment of the full cost of those benefits in accordance with applicable provisions of the section or sections involved, to the same extent as if no election under this section had been made).
(d)(1) The Office's regulations shall include provisions regarding the form and manner in which an application under this section shall be made and the procedures in accordance with which any such application shall be considered.
(2) An application shall not be considered to be complete unless it includes such information and supporting evidence as the regulations require, including certification by an appropriate medical authority as to the nature of the individual's illness and that the individual is not expected to live more than 9 months because of that illness.
(3)(A) In order to ascertain the reliability of any medical opinion or finding submitted as part of an application under this section, the covered individual may be required to submit to a medical examination under the direction of the agency or entity considering the application. The individual shall not be liable for the costs associated with any examination required under this subparagraph.
(B) Any decision by the reviewing agency or entity with respect to an application for benefits under this section (including one relating to an individual's medical prognosis) shall not be subject to administrative review.
(4)(A) An individual making an election under this section may designate that only a limited portion (expressed as a multiple of $1,000) of the total amount otherwise allowable under this section be paid pursuant to such election.
(B) A designation under this paragraph may not be made by an individual described in paragraph (1) or (2) of section 8706(b).
(5) An election to receive benefits under this section shall be irrevocable, and not more than one such election may be made by any individual.
(6) The regulations shall include provisions to address the question of how to apply section 8706(b)(3)(B) in the case of an electing individual who has attained 65 years of age.
(Added
Statutory Notes and Related Subsidiaries
Effective Date of 1994 Amendment
§8715. Jurisdiction of courts
The district courts of the United States have original jurisdiction, concurrent with the United States Court of Federal Claims, of a civil action or claim against the United States founded on this chapter.
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| Aug. 17, 1954, ch. 752, §14 (less applicability to §10), |
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
Amendments
1992—
1982—
Statutory Notes and Related Subsidiaries
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1982 Amendment
Amendment by
§8716. Regulations
(a) The Office of Personnel Management may prescribe regulations necessary to carry out the purposes of this chapter.
(b) The regulations of the Office may prescribe the time at which and the conditions under which an employee is eligible for coverage under this chapter. The Office, after consulting the head of the agency or other employing authority concerned, may exclude an employee on the basis of the nature and type of his employment or conditions pertaining to it, such as short-term appointment, seasonal, intermittent employment, and employment of like nature. The Office may not exclude—
(1) an employee or group of employees solely on the basis of the hazardous nature of employment;
(2) a teacher in the employ of the Board of Education of the District of Columbia, whose pay is fixed by
(3) an employee who is occupying a position on a part-time career employment basis (as defined in
(c) The Secretary of Agriculture shall prescribe regulations to effect the application and operation of this chapter to an individual named by
(
| Derivation | U.S. Code | Revised Statutes and Statutes at Large |
|---|---|---|
| (a) | Aug. 17, 1954, ch. 752, §11 (less applicability to §10), |
|
| (b), (c) | Aug. 17, 1954, ch. 752, §2(a) (words between 6th and 7th commas of 1st sentence and 2d sentence), July 1, 1960, |
|
| Oct. 6, 1964, |
In subsection (a), the words "Except as otherwise provided herein" are omitted as unnecessary since the authority to prescribe regulations is carried into this section.
In subsection (b), the words "
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Editorial Notes
Amendments
1978—Subsec. (a).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1978 Amendment
Amendment by