5 U.S.C. § 8714b — Additional optional life insurance

Page 1228 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8714b Subsec. (d). Pub. L. 95–583, § 1(c)(3), struck out ‘‘or 8706(c)’’ after ‘‘section 8706(b)’’. Subsec. (e). Pub. L. 95–454 substituted ‘‘Office’’ for ‘‘Commission’’. 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 1986 AMENDMENT Amendment by Pub. L. 99–335 effective Jan. 1, 1987, see section 702(a) of Pub. L. 99–335, set out as an Effec- tive Date note under section 8401 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–353, § 206, as amended gen- erally by Pub. L. 99–336, § 7(1), applicable to any justice or judge who retires under 28 U.S.C. 371(a) or (b) or 372(a) on or after January 1, 1982, see section 207 of Pub. L. 98–353, as amended generally by Pub. L. 99–336, § 7(2), set out as a note under section 8706 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–427 effective Oct. 10, 1980, with 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 AMENDMENTS Amendment by Pub. L. 95–583 effective Nov. 2, 1978, see section 3 of Pub. L. 95–583, set out as a note under section 8706 of this title. 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 Pub. L. 90–206, title IV, § 405(b), Dec. 16, 1967, 81 Stat. 648, provided that: ‘‘(1) The amendments made by section 404 of this Act [enacting this section and amending analysis preceding section 8701 of this title] shall take effect on the first day of the first pay period which begins on or after the one hundred and eightieth day following the date of en- actment [Dec. 16, 1967], or on any earlier date that the Civil Service Commission may prescribe, which is at least sixty days after the date of enactment [Dec. 16, 1967]. In the case of an employee who dies during the period beginning on the date of enactment [Dec. 16, 1967] and ending on the effective date prescribed by or pursuant to this subsection, or during the sixty days immediately following such period if the Commission determines that he did not have a reasonable oppor- tunity to elect the optional insurance made available by section 404, the insurance of such employee shall be determined as if the amendments made by section 404 had been in effect on the date of such death, and the employee had elected to receive the maximum amount of optional insurance available to him under such amendments. An employee who retires during the pe- riod beginning on the date of enactment and ending on the effective date prescribed by or pursuant to this sub- section shall have an opportunity to elect the optional insurance made available by section 404. ‘‘(2) In the case of an employee in the service on the effective date prescribed by or pursuant to this sub- section, (i) the period during which such employee may elect to receive optional insurance under the amend- ment 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 Pub. L. 90–206 to have no effect in the case of an employee who died, was fi- nally separated, or retired prior to Dec. 16, 1967, see sec- tion 405(c) of Pub. L. 90–206, set out as an Retroactive Effect of 1967 Amendment note under section 8704 of this title. AVAILABILITY OF CERTAIN FUNDS IN EMPLOYEES’ LIFE INSURANCE FUND Pub. L. 96–427, § 11, Oct. 10, 1980, 94 Stat. 1838, provided that: ‘‘Amounts credited to the Employees’ Life Insur- ance Fund under section 8714a(d) of title 5, United States Code shall be available for expenses incurred by the Office of Personnel Management in implementing the amendments made by sections 7 and 8 of this Act [enacting sections 8714b, 8714c, and 8701(d) of this title].’’ § 8714b. Additional optional life insurance (a) Under the conditions, directives, and terms specified in sections 8709 through 8712 of this title, the Office of Personnel Management, with- out regard to section 6101(b) to (d) of title 41, may purchase a policy which shall make avail- able to each employee insured under section 8702 of this title amounts of additional optional life insurance (without accidental death and dis- memberment insurance). An employee may elect coverage under this section without regard to whether the employee has elected coverage under optional insurance available under section 8714a of this title. (b)(1) An employee who is deployed in support of a contingency operation (as that term is de- fined in section 101(a)(13) of title 10) or an em- ployee of the Department of Defense who is des- ignated as emergency essential under section 1580 of title 10 shall be insured under the policy of insurance under this section if the employee, within 60 days after the date of notification of deployment or designation, elects to be insured under the policy of insurance. An election under this paragraph shall be effective when provided to the Office in writing, in the form prescribed by the Office, within such 60-day period. (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 em- ployee may reduce or stop coverage elected pur- suant to this section at any time. (c)(1) Except as otherwise provided in this sub- section, the additional optional insurance elect- ed 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 ex- tension of life insurance coverage and for con- version to an individual policy of life insurance under conditions approved by the Office. Jus- tices 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 section Page 1229 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8714b 8701(a)(5) of this title who resigns his office without meeting the requirements of section 371(a) of title 28, United States Code, for con- tinuation of the judicial salary shall have the right to convert additional optional life insur- ance coverage issued under this section during his judicial service to an individual policy of life insurance under the same conditions approved by the Office governing conversion of basic life insurance coverage for employees eligible as provided in section 8706(a) of this title. (2) In the case of any employee who retires on an immediate annuity or who becomes entitled to receive compensation under subchapter I of chapter 81 of this title because of disease or in- jury to the employee, so much of the additional optional insurance as has been in force for not less than— (A) the 5 years of service immediately pre- ceding the date of retirement or entitlement to compensation, or (B) the full period or periods of service dur- ing 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 em- ployee is receiving compensation under sub- chapter I of chapter 81 of this title and is held by the Secretary of Labor (or the Secretary’s delegate) to be unable to return to duty. (3) The amount of additional optional insur- ance continued under paragraph (2) shall be con- tinued, with or without reduction, in accordance with the employee’s written election at the time eligibility to continue insurance during retire- ment or receipt of compensation arises, as fol- lows: (A) The employee may elect to have withholdings cease in accordance with sub- section (d), in which case— (i) the amount of additional optional in- surance 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 in- surance 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 subse- quently cancel such election, in which case addi- tional 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 para- graph (2) may elect, under conditions prescribed by the Office of Personnel Management, to con- tinue all or a portion of so much of the addi- tional optional insurance as has been in force for not less than— (i) the 5 years of service immediately pre- ceding the date of the event which would cause insurance to stop under paragraph (1); or (ii) the full period or periods of service dur- ing 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 per- cent effective at the beginning of the second cal- endar 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 cov- erage 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 de- termines necessary to cover associated adminis- trative 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 con- tinue additional optional insurance may be made under this paragraph 3 years after the ef- fective 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 insur- ance coverage and for conversion to an indi- vidual policy of life insurance under conditions approved by the Office. (d)(1) During each period in which the addi- tional optional insurance is in force on an em- ployee the full cost thereof shall be withheld from the employee’s pay. During each period in which an employee continues additional op- tional insurance after retirement or while in re- ceipt of compensation under subchapter I of chapter 81 of this title because of disease or in- jury to the employee, as provided in subsection (c) of this section, the full cost thereof shall be withheld from the former employee’s annuity or compensation, except that, if insurance is con- tinued as provided under subsection (c)(3)(A), be- ginning at the end of the calendar month in which the former employee becomes 65 years of Page 1230 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8714b age, the additional optional life insurance shall be without cost to the former employee. Amounts so withheld (and any amounts with- held as provided in subsection (c)(3)(B)) shall be deposited, used, and invested as provided in sec- tion 8714 of this title and shall be reported and accounted for together with amounts withheld under section 8714a(d) of this title. (2) If an agency fails to withhold the proper cost of additional optional insurance from an in- dividual’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 Employ- ees’ Life Insurance Fund. (3) Notwithstanding paragraph (1), an em- ployee who is subject to withholdings under this subsection and whose pay, annuity, or com- pensation is insufficient to cover such withholdings may nevertheless continue addi- tional optional insurance if the employee ar- ranges to pay currently into the Employees’ Life Insurance Fund, through the agency or re- tirement system which administers pay, annu- ity, or compensation, an amount equal to the withholdings that would otherwise be required under this subsection. (e) The cost of the additional optional insur- ance shall be determined from time to time by the Office on the basis of the employee’s age rel- ative to such age groups as the Office estab- lishes under section 8714a(e) of this title. (f) The amount of additional optional life in- surance in force on an employee at the date of his death shall be paid as provided in section 8705 of this title. (Added Pub. L. 96–427, § 7(a), Oct. 10, 1980, 94 Stat. 1834; amended Pub. L. 98–353, title II, §§ 206, 207, July 10, 1984, 98 Stat. 351, as amended by Pub. L. 99–336, § 7(1), June 19, 1986, 100 Stat. 639; Pub. L. 99–335, title II, § 207(k)(4), June 6, 1986, 100 Stat. 597; Pub. L. 99–336, § 7(1), June 19, 1986, 100 Stat. 639; Pub. L. 105–311, §§ 3(2), 6(3), 7(a), (c), Oct. 30, 1998, 112 Stat. 2950–2953; Pub. L. 110–417, [div. A], title XI, § 1103(c), Oct. 14, 2008, 122 Stat. 4617; Pub. L. 111–350, § 5(a)(13), Jan. 4, 2011, 124 Stat. 3841.) 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’’. 2008—Subsec. (b). Pub. L. 110–417 designated existing provisions as par. (2) and added par. (1). 1998—Subsec. (b). Pub. L. 105–311, § 3(2), in first sen- tence, struck out ‘‘except that coverage may not ex- ceed an amount equal to 5 times the annual rate of basic pay payable for positions at level II of the Execu- tive Schedule under section 5313 of this title (rounded to the next higher multiple of $1,000)’’ after ‘‘$1,000)’’. Subsec. (c)(2). Pub. L. 105–311, § 7(a)(1)(A), struck out at end ‘‘The amount of insurance continued under this paragraph shall be reduced each month by 2 percent ef- fective 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. The reduc- tion shall continue for 50 months at which time the in- surance stops.’’ Subsec. (c)(3) to (5). Pub. L. 105–311, § 7(a)(1)(B), added pars. (3) to (5). Subsec. (d)(1). Pub. L. 105–311, § 7(a)(2), (c), inserted ‘‘if insurance is continued as provided under subsection (c)(3)(A),’’ after ‘‘except that,’’ and ‘‘(and any amounts withheld as provided in subsection (c)(3)(B))’’ after ‘‘Amounts so withheld’’. Subsec. (d)(3). Pub. L. 105–311, § 6(3), added par. (3). 1986—Subsec. (c)(1). Pub. L. 98–353, § 206, as amended generally by Pub. L. 99–336, § 7(1), inserted sentence which deemed justices and judges described in section 8701(a)(5)(ii) and (iii) of this chapter to continue in ac- tive employment for purposes of this chapter. Pub. L. 99–335 substituted ‘‘Except as otherwise pro- vided in this subsection, the additional optional insur- ance 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’’ for ‘‘The additional optional insurance elected by an employee pursuant to this section shall stop on separa- tion from service, 12 months after discontinuance of pay, or on entry on active military duty or active duty for training, subject to provision for a 31-day tem- porary extension of insurance coverage and for conver- sion to an individual policy, as provided in sections 8706(a) and 8706(c) of this title’’. 1984—Subsec. (c)(1). Pub. L. 98–353 inserted ‘‘A justice or judge of the United States as defined by section 8701(a)(5) of this title who resigns his office without meeting the requirements of section 371(a) of title 28, United States Code, for continuation of the judicial sal- ary shall have the right to convert additional optional life insurance coverage issued under this section during his judicial service to an individual policy of life insur- ance under the same conditions approved by the Office governing conversion of basic life insurance coverage for employees eligible as provided in section 8706(a) of this title.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Amendment by sections 3(2) and 6(3) of Pub. L. 105–311 effective on the first day of the first applicable pay pe- riod beginning on or after Oct. 30, 1998, and amendment by section 7(a), (c) of Pub. L. 105–311 effective on the first day of the first pay period that begins on or after the 180th day following Oct. 30, 1998, or on any earlier date that the Office of Personnel Management may pre- scribe that is at least 60 days after Oct. 30, 1998, see sec- tion 11(b), (d), (e)(1) of Pub. L. 105–311, set out as a note under section 8701 of this title. EFFECTIVE DATE OF 1986 AMENDMENTS Amendment by Pub. L. 98–353, § 206, as amended gen- erally by Pub. L. 99–336, § 7(1), applicable to any justice or judge who retires under 28 U.S.C. 371(a) or (b) or 372(a) on or after January 1, 1982, see section 207 of Pub. L. 98–353, as amended generally by Pub. L. 99–336, § 7(2), set out as a note under section 8706 of this title. Amendment by Pub. L. 99–335 effective Jan. 1, 1987, see section 702(a) of Pub. L. 99–335, set out as an Effec- tive Date note under section 8401 of this title. 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 fi- nally separated, or retired before effective date, see section 10(d) of Pub. L. 96–427 set out as an Effective Date of 1980 Amendment note under section 8701 of this title. Page 1231 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8714c REPORT TO CONGRESS Pub. L. 105–311, § 7(b), Oct. 30, 1998, 112 Stat. 2953, re- quired the Office of Personnel Management to submit, not later than 3 years after Oct. 30, 1998, a report to Congress on additional optional insurance provided under subsec. (c)(5) of this section. § 8714c. Optional life insurance on family mem- bers (a) Under the conditions, directives, and terms specified in sections 8709 through 8712 of this title, the Office of Personnel Management, with- out regard to section 6101(b) to (d) of title 41, may purchase a policy which shall make avail- able to each employee insured under section 8702 of this title amounts of optional life insurance (without accidental death and dismemberment insurance) on the employee’s family members. (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 mul- tiples, 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 sec- tion 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 sub- section, the optional life insurance on family members shall stop at the earlier of the employ- ee’s death, the employee’s separation from the service, or 12 months after discontinuance of pay, subject to a provision for temporary exten- sion of life insurance coverage and for conver- sion 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 chapter 81 of this title because of disease or in- jury to the employee and who has had in force insurance under this section for no less than— (A) the 5 years of service immediately pre- ceding the date of retirement or entitlement to compensation, or (B) the full period or periods of service dur- ing 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 pro- vided 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 em- ployee’s pay. During each period in which an employee continues optional life insurance on family members after retirement or while in re- ceipt of compensation under subchapter I of chapter 81 of this title because of disease or in- jury to the employee, as provided in subsection (c) of this section, the full cost shall be withheld from the annuity or compensation, except that, beginning at the end of the calendar month in which the former employee becomes 65 years of age, the optional life insurance on family mem- bers shall be without cost to the employee. Not- withstanding the preceding sentence, the full cost shall be continued after the calendar month in which the former employee becomes 65 years of age if, and for so long as, an election under this section corresponding to that described in section 8714b(c)(3)(B) remains in effect with re- spect to such former employee. Amounts so withheld shall be deposited, used, and invested as provided in section 8714 of this title and shall be reported and accounted for together with amounts withheld under section 8714a(d) of this title. (2) If an agency fails to withhold the proper cost of optional life insurance on family mem- bers 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 in- dividual is without fault and recovery would be against equity and good conscience. However, if the agency so waives the collection of any un- paid amount, the agency shall submit an amount equal to the uncollected amount to the Office for deposit to the Employees’ Life Insur- ance Fund. (3) Notwithstanding paragraph (1), an em- ployee who is subject to withholdings under this subsection and whose pay, annuity, or com- pensation is insufficient to cover such withholdings may nevertheless continue op- tional 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 re- quired 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 employ- ee’s age relative to such age groups as the Office establishes under section 8714a(e) of this title. (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 section 8705 of this title. (Added Pub. L. 96–427, § 8(a), Oct. 10, 1980, 94 Stat. 1836; amended Pub. L. 98–353, title II, § 206, as amended by Pub. L. 99–336, § 7(1), June 19, 1986, 100 Stat. 639; Pub. L. 99–335, title II, § 207(k)(5), June 6, 1986, 100 Stat. 598; Pub. L. 99–336, § 7(1), June 19, 1986, 100 Stat. 639; Pub. L. 105–311, §§ 6(4), 8, Oct. 30, 1998, 112 Stat. 2951, 2953; Pub. L. 111–350, § 5(a)(14), Jan. 4, 2011, 124 Stat. 3842.) 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’’. 1998—Subsec. (b). Pub. L. 105–311, § 8(a), amended sub- sec. (b) generally. Prior to amendment, subsec. (b) read as follows: ‘‘The optional life insurance on family mem- bers provided under this section shall be made avail- able to each eligible employee who elects coverage under this section, under conditions the Office shall