5 U.S.C. § 8709 — Insurance policies

Page 1222 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8708 § 8708. Government contributions (a) For each period in which an employee is in- sured under a policy of insurance purchased by the Office of Personnel Management under sec- tion 8709 of this title, a sum equal to one-half the amount which is withheld from the pay of the employee under section 8707 of this title shall be contributed from the appropriation or fund which is used to pay him. (b) When an employee is paid by the Chief Ad- ministrative Officer of the House of Representa- tives, the Chief Administrative Officer may con- tribute 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 sec- tion 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 sub- section, for each period in which an employee continues life insurance after retirement or while in receipt of compensation under sub- chapter I of chapter 81 of this title because of disease or injury to the employee, as provided under section 8706(b) of this title, a sum equal to one-half of the amount which is withheld from the employee’s annuity or compensation under section 8707 of this title shall be contributed by the Office from annual appropriations which are authorized to be made for that purpose and which may be made available until expended. (2) Contributions under this subsection— (A) shall not be made other than with re- spect to individuals who retire, or commence receiving compensation, after December 31, 1989; (B) shall not be made with respect to any in- dividual 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 sec- tion 8706(b)(3) of this title, be equal to the amount which would apply under this sub- section if such individual had instead elected coverage under subparagraph (A) of such sec- tion. (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 chapter 81 of this title (because of disease or injury to the individual) after December 31, 1989, if the position last held by the individual before commencing to receive such compensation was within the United States Postal Service. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 595; Pub. L. 90–206, title IV, § 403, Dec. 16, 1967, 81 Stat. 647; Pub. L. 95–454, title IX, § 906(a)(2), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 101–303, § 2, May 29, 1990, 104 Stat. 250; Pub. L. 104–186, title II, § 215(18), Aug. 20, 1996, 110 Stat. 1746.) HISTORICAL AND REVISION NOTES Derivation U.S. Code Revised Statutes and Statutes at Large (a), (c) ....... 5 U.S.C. 2094(b). Aug. 17, 1954, ch. 752, § 5(b), 68 Stat. 738. (b) ............. 2 U.S.C. 128. Aug. 5, 1955, ch. 568, § 101 (4th par. under ‘‘Adminis- trative Provisions’’), 69 Stat. 513. Standard changes are made to conform with the defi- nitions applicable and the style of this title as outlined in the preface to the report. Editorial Notes AMENDMENTS 1996—Subsec. (b). Pub. L. 104–186 substituted ‘‘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.’’ for ‘‘Clerk of the House of Representatives, the Clerk may contribute the sum required by subsection (a) of this section from the contingent fund of the House.’’ 1990—Subsec. (d). Pub. L. 101–303 added subsec. (d). 1978—Subsec. (a). Pub. L. 95–454 substituted ‘‘Office of Personnel Management’’ for ‘‘Civil Service Commis- sion’’. 1967—Subsec. (a). Pub. L. 90–206 substituted provi- sions setting the sum to be withheld at one-half the amount withheld from the pay of the employee under section 8707 of this title for provisions setting the sum to be withheld at a rate to be determined by the Com- mission not to exceed one-half of the amount withheld under section 8707 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–454 effective 90 days after Oct. 13, 1978, see section 907 of Pub. L. 95–454, set out as a note under section 1101 of this title. EFFECTIVE DATE OF 1967 AMENDMENT Amendment by Pub. L. 90–206 effective on first day of first pay period which begins on or after sixtieth day following December 16, 1967, see section 405(a) of Pub. L. 90–206, set out as a note under section 8704 of this title. RETROACTIVE EFFECT OF 1967 AMENDMENT Amendment by Pub. L. 90–206 to have no effect in case of an employee who died, was finally separated, or retired prior to Dec. 16, 1967, see section 405(c) of Pub. L. 90–206, set out as a note under section 8704 of this title. § 8709. Insurance policies (a) The Office of Personnel Management, with- out 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 require- ments: (1) It must be licensed to transact life and accidental death and dismemberment insur- ance 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 avail- able to the Office, an amount of employee group life insurance equal to at least 1 percent Page 1223 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8710 of the total amount of employee group life in- surance in the United States in all life insur- ance companies. (b) A company issuing a policy under sub- section (a) of this section shall establish an ad- ministrative office under a name approved by the Office. (c) The Office at any time may discontinue a policy purchased from a company under sub- section (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 ex- tent 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. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 596; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96–427, § 5(a), Oct. 10, 1980, 94 Stat. 1834; Pub. L. 111–350, § 5(a)(11), Jan. 4, 2011, 124 Stat. 3841.) HISTORICAL AND REVISION NOTES Derivation U.S. Code Revised Statutes and Statutes at Large .................. 5 U.S.C. 2096 (less (c)–(e)). Aug. 17, 1954, ch. 752, § 7 (less (c)–(e)), 68 Stat. 739. In subsection (a), the words ‘‘as determined by it’’ are omitted as unnecessary. Standard changes are made to conform with the defi- nitions applicable and the style of this title as outlined in the preface to the report. Editorial Notes AMENDMENTS 2011—Subsec. (a). Pub. L. 111–350 substituted ‘‘section 6101(b) to (d) of title 41’’ for ‘‘section 5 of title 41’’ in in- troductory provisions. 1980—Subsec. (d). Pub. L. 96–427 added subsec. (d). 1978—Subsecs. (a) to (c). Pub. L. 95–454 substituted ‘‘Office of Personnel Management’’ and ‘‘Office’’ for ‘‘Civil Service Commission’’ and ‘‘Commission’’, respec- tively, wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–427 effective Oct. 10, 1980, with the amendment to have no effect in case of an em- ployee who died, was separated, or retired before Oct. 10, 1980, see section 10(a) of Pub. L. 96–427, set out as a note under section 8701 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–454 effective 90 days after Oct. 13, 1978, see section 907 of Pub. L. 95–454, set out as a note under section 1101 of this title. § 8710. Reinsurance (a) The Office of Personnel Management shall arrange with a company issuing a policy under this chapter for the reinsurance, under condi- tions approved by the Office, of portions of the total amount of insurance under the policy, de- termined under this section, with other life in- surance companies which elect to participate in the reinsurance. (b) The Office shall determine for and in ad- vance of a policy year which companies are eli- gible to participate as reinsurers and the amount of insurance under a policy which is to be allocated to the issuing company and to rein- surers. 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 rein- surer, 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 deter- mining the proportions, the portion of a com- pany’s group life insurance in force on the deter- mination 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 Colum- bia; 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 enti- tled, as a minimum, to be allocated an amount of insurance under the policy equal to any re- duction from December 31, 1953, to the deter- mination date, in the amount of the company’s group life insurance under policies issued to as- sociations 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. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 596; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224.)