5 U.S.C. § 8707 — Employee deductions; withholding

Page 1221 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8707 § 8707. Employee deductions; withholding (a) Subject to subsection (c)(2), during each pe- riod in which an employee is insured under a policy purchased by the Office of Personnel Management under section 8709 of this title, there shall be withheld from the employee’s pay a share of the cost of the group life insurance and accidental death and dismemberment insur- ance. (b)(1) Subject to subsection (c)(2), whenever life insurance continues after an employee re- tires on an immediate annuity or while the em- ployee is receiving compensation under sub- chapter I of chapter 81 of this title because of disease or injury to the employee, as provided in section 8706(b) of this title, deductions for insur- ance shall be withheld from the employee’s an- nuity or compensation, except that, in any case in which the insurance is continued as provided in section 8706(b)(3)(A) of this title, the deduc- tions shall not be made for months after the cal- endar month in which the employee becomes 65 years of age. (2) Notwithstanding paragraph (1) of this sub- section, 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 be- fore December 31, 1989. (c)(1) The amount withheld from the pay, an- nuity, or compensation of each employee subject to insurance deductions shall be at the rate, ad- justed 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 con- tinue 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 in- dividual’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 un- collected deductions and related agency con- tributions required under section 8708 of this title to the Office for deposit to the Employees’ Life Insurance Fund. (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 595; Pub. L. 90–206, title IV, § 402, Dec. 16, 1967, 81 Stat. 647; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96–427, § 4(a), Oct. 10, 1980, 94 Stat. 1833; Pub. L. 105–311, § 6(1), Oct. 30, 1998, 112 Stat. 2951.) HISTORICAL AND REVISION NOTES Derivation U.S. Code Revised Statutes and Statutes at Large .................. 5 U.S.C. 2094(a) (1st par.). Aug. 17, 1954, ch. 752, § 5(a) (1st par.), 68 Stat. 738. Sept. 23, 1959, Pub. L. 86–377, § 4(b), 73 Stat. 701. 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 1998—Subsec. (a). Pub. L. 105–311, § 6(1)(A), substituted ‘‘Subject to subsection (c)(2), during’’ for ‘‘During’’. Subsec. (b)(1). Pub. L. 105–311, § 6(1)(B), substituted ‘‘Subject to subsection (c)(2), whenever’’ for ‘‘When- ever’’. Subsec. (c). Pub. L. 105–311, § 6(1)(C), designated exist- ing provisions as par. (1) and added par. (2). 1980—Subsec. (a). Pub. L. 96–427 designated first sen- tence of existing section as subsec. (a) and substituted ‘‘a policy purchased’’ for ‘‘a policy of insurance pur- chased’’ and ‘‘the employee’s pay a share of the cost’’ for ‘‘the pay of the employee his share of the cost’’. Subsec. (b). Pub. L. 96–427 added subsec. (b). Subsec. (c). Pub. L. 96–427 designated second sentence of existing section as subsec. (c) and inserted reference to pay, annuity, or compensation of each employee. Subsec. (d). Pub. L. 96–427 added subsec. (d). 1978—Pub. L. 95–454 substituted ‘‘Office of Personnel Management’’ and ‘‘Office’’ for ‘‘Civil Service Commis- sion’’ and ‘‘Commission’’, respectively. 1967—Pub. L. 90–206 struck out reference to the Civil Service Commission’s function of determining the amount to be withheld for group insurance and sub- stituted provisions setting a rate of 662⁄3 percent of the level cost of each $1,000 of insurance as determined by the Commission for provisions setting a limit of 25 cents biweekly for each $1,000 of group life insurance and directing the withholding of the amount from em- ployees paid on other than a biweekly basis at a pro- portional rate adjusted to the nearest cent. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–311 effective on the first day of the first applicable pay period beginning on or after Oct. 30, 1998, see section 11(d) of Pub. L. 105–311, set out as a note under section 8701 of this title. 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. 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 Dec. 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. 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