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

72 FR 71743Federal Employees' Retirement System; Present Value Conversion Factors for Spouses of Deceased Separated Employees

72 FR 71743Office of Personnel Management.

72 FR 71743The Office of Personnel Management (OPM) is issuing an interim 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 under the Federal Employees' Retirement System (FERS) Act of 1986. These rules are necessary to conform the tables to the economic assumptions adopted by the Board of Actuaries and published previously in the Federal Register .

72 FR 71743This interim rule is effective December 19, 2007. We must receive your comments by January 18, 2008.

72 FR 71743You may submit comments, identified by RIN number 3206-AL31, by any of the following methods: • Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. • E-mail: combox@opm.gov. Include RIN number 3206-AL31 in the subject line of the message. • Fax: (202) 606-0990 • Mail: John Panagakos, Manager, Retirement Group, Office of Personnel Management, 1900 E Street NW., RM 4351, Washington, DC 20415.

72 FR 71743Jessica Johnson, (202) 606-0299.

72 FR 71743OPM has published a notice in the Federal Register at 72 FR 31631 (June 7, 2007) to revise the normal cost percentage under the Federal Employees' Retirement System (FERS) Act of 1986, Public Law 99-335, 100 Stat. 514, based on changed economic assumptions and demographic factors adopted by the Board of Actuaries of the Civil Service Retirement System. Those changed economic assumptions require corresponding changes in factors used to produce actuarially equivalent benefits when required by the FERS Act. Section 843.311 of title 5, Code of Federal Regulations, regulates the benefits for the survivors of separated employees under 5 U.S.C. 8442(c). This section provides a choice of benefits for eligible current and former spouses. If the current or former spouse is the person entitled to the unexpended balance under the order of precedence under 5 U.S.C. 8424, he or she may elect to receive the unexpended balance instead of an annuity. Alternatively, an eligible current or former spouse may elect to receive an annuity commencing on the day after the employee's death or on the deceased separated employee's 62nd birthday. If the annuity commences on the deceased separated employee's 62nd birthday, it equals 50 percent of the annuity that the separated employee would have received when he or she attained age 62. If the current or former spouse elects the earlier commencing date, the annuity is reduced using the factors in Appendix A to subpart C of part 843 to make the annuity actuarially equivalent to the present value of the annuity that he or she would have received if it commenced on the retiree's 62nd birthday. These rules amend that appendix to conform to the revised economic assumptions.

72 FR 71743Under section 553(b)(3)(B) and (d)(3) of title 5, United States Code, I find that good reason exists for waiving the general notice of proposed rulemaking and for making these amendments effective in less than 30 days. The amendments made by this rule are required by changes in economic assumptions that were published on June 7, 2007. Providing a comment period on the result of mathematical computations resulting from the changed economic assumptions is unnecessary and, to the extent that it would delay benefit payments, is contrary to the public interest.

72 FR 71743This 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.

72 FR 71743I 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.

72 FR 71743Air traffic controllers, Disability benefits, Firefighters, Government employees, Law enforcement officers, Pensions, Retirement. United States Office of Personnel Management.

72 FR 71743For the reasons stated in the preamble, the Office of Personnel Management amends 5 CFR part 843 as follows:

72 FR 717431. The authority citation for part 843 continues to read as follows:

72 FR 717435 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.

72 FR 717432. Revise Appendix A to subpart C of part 843 to read as follows: Appendix A to Subpart C of Part 843.—Present Value Conversion Factors for Earlier Commencing Date of Annuities of Current and Former Spouses of Deceased Separated Employees With at least 10, but less than 20 years of creditable service— 26 0.0592 27 .0633 28 .0688 29 .0730 30 .0804 31 .0859 32 .0921 33 .0991 34 .1064 35 .1158 36 .1234 37 .1333 38 .1422 39 .1551 40 .1668 41 .1799 42 .1938 43 .2097 44 .2260 45 .2437 46 .2635 47 .2858 48 .3085 49 .3346 50 .3618 51 .3926 52 .4255 53 .4623 54 .5025 55 .5463 56 .5944 57 .6461 58 .7040 59 .7675 60 .8374 61 .9146 With at least 20, but less than 30 years of creditable service— 36 0.1483 37 .1598 38 .1709 39 .1858 40 .2000 41 21.59 42 .2325 43 .2514 44 .2708 45 .2922 46 .3160 47 .3424 48 .3697 49 .4007 50 .4335 51 .4701 52 .5093 53 .5532 54 .6010 55 .6532 56 .7104 57 .7722 58 .8411 59 .9167 With at least 30 years of creditable service— 46 0.4109 0.4476 0.4870 47 .4449 .4843 .5268 48 .4805 .5232 .5691 49 .5204 .5666 .6161 50 .5630 .6130 .6666 51 .6102 .6642 .7222 52 .6610 .7195 .7823 53 .7175 .7807 .8487 54 .7790 .8474 .9210 55 .8461 .9203 1.0000 56 .9195 1.0000 1.0000