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

79 FR 66278Federal Employees' Retirement System; Present Value Conversion Factors for Spouses of Deceased Separated Employees

79 FR 66278Office of Personnel Management.

79 FR 66278The Office of Personnel Management (OPM) is adopting its proposed rule to revise the table of reduction factors for early commencing dates of survivor annuities for spouses of separated employees who die before the date on which they would be eligible for unreduced deferred annuities, and to revise the annuity factor for spouses of deceased employees who die in service when those spouses elect to receive the basic employee death benefit in 36 installments under the Federal Employees' Retirement System (FERS) Act of 1986. These rules are necessary to ensure that the tables conform to the economic and demographic assumptions adopted by the Board of Actuaries and published in the Federal Register on May 21, 2014, as required by 5 U.S.C. 8461(i).

79 FR 66279This rule becomes effective on November 7, 2014.

79 FR 66279Roxann Johnson, (202) 606-0299.

79 FR 66279On May 21, 2014, OPM published at 79 FR 29224, a notice in the Federal Register to revise the normal cost percentages under the Federal Employees' Retirement System (FERS) Act of 1986, Public Law 99-335, 100 Stat. 514, as amended, based on economic assumptions and demographic factors adopted by the Board of Actuaries of the Civil Service Retirement System. Under 5 U.S.C. 8461(i), the demographic factors and economic assumptions require corresponding changes in factors used to produce actuarially equivalence when required by the FERS Act. As a result, on July 18, 2014, at 79 FR 41929, OPM published a proposed rule in the Federal Register to revise the table of reduction factors in Appendix A to subpart C of part 843, Code of Federal Regulations, for early commencing dates of survivor annuities for spouses of separated employees who die before the date on which they would be eligible for unreduced deferred annuities, and to revise the annuity factor for spouses of deceased employees who die in service when those spouses elect to receive the basic employee death benefit in 36 installments under 5 CFR 843.309. OPM received no written comments on the proposed rule.

79 FR 66279This rule has been reviewed by the Office of Management and Budget in accordance with Executive Order (E.O.) 12866, as amended by E.O. 13258 and E.O. 13422.

79 FR 66279I certify that this regulation will not have a significant economic impact on a substantial number of small entities because the regulation will only affect retirement payments to surviving current and former spouses of former employees and Members who separated from Federal service with title to a deferred annuity.

79 FR 66279Air traffic controllers, Disability benefits, Firefighters, Government employees, Law enforcement officers, Pensions, Retirement. U.S. Office of Personnel Management. For the reasons stated in the preamble, the Office of Personnel Management amends 5 CFR part 843 as follows:

79 FR 662791. The authority citation for part 843 continues to read as follows:

79 FR 662795 U.S.C. 8461; §§ 843.205, 843.208, and 843.209 also issued under 5 U.S.C. 8424; § 843.309 also issued under 5 U.S.C. 8442; § 843.406 also issued under 5 U.S.C. 8441.

79 FR 662792. In § 843.309, revise paragraph (b)(2) to read as follows: § 843.309 Basic employee death benefit. (b) * * * (2) For deaths occurring on or after October 1, 2014, 36 equal monthly installments of 2.99522 percent of the amount of the basic employee death benefit.

79 FR 662793. Revise Appendix A to subpart C of part 843 to read as follows:

79 FR 66279With at least 10 but less than 20 years of creditable service— 26 .0638 27 .0700 28 .0764 29 .0831 30 .0902 31 .0978 32 .1058 33 .1142 34 .1233 35 .1331 36 .1435 37 .1547 38 .1667 39 .1794 40 .1931 41 .2079 42 .2236 43 .2406 44 .2588 45 .2784 46 .2993 47 .3218 48 .3463 49 .3725 50 .4008 51 .4313 52 .4644 53 .5001 54 .5387 55 .5806 56 .6262 57 .6756 58 .7295 59 .7882 60 .8525 61 .9228 With at least 20, but less than 30 years of creditable service— 36 .1693 37 .1825 38 .1966 39 .2116 40 .2276 41 .2449 42 .2634 43 .2833 44 .3047 45 .3276 46 .3523 47 .3787 48 .4073 49 .4380 50 .4712 51 .5070 52 .5457 53 .5875 54 .6327 55 .6818 56 .7351 57 .7930 58 .8560 59 .9248 With at least 30 years of creditable service— separated employee at birthday before death employee's year of birth 46 .4457 .4811 47 .4790 .5170 48 .5151 .5559 49 .5538 .5976 50 .5955 .6426 51 .6405 .6911 52 .6892 .7435 53 .7417 .8001 54 .7986 .8614 55 .8603 .9279 56 .9272 1.0000